Financial Reports Monitoring Pack - 31 December 2024
Argyll and Bute Council · 20 February 2025
Back to Policy and Resources Committee — 20 February 2025 and its agenda
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 20 FEBRUARY 2025 FINANCIAL REPORTS MONITORING PACK – 31 DECEMBER 2024 1. INTRODUCTION 1.1 This report provides an Executive Summary of the overall financial position of the council for 2024-25 as at 31 December 2024. It summarises the detailed financial monitoring reports in respect of the following: • Revenue Budget; • Financial Risks; • Capital Plan; and • Reserves and Balances. 2. DETAIL 2.1 Revenue Budget Monitoring Report 2.1.1 This report provides a summary of the actual and forecast outturn expenditure and income of the council in comparison to the approved 2024-25 revenue budget. 2.1.2 As at 31 December 2024, there is a forecast overspend of £4.215m on the approved budget for the year. The variances from budget comprise the following: • Within Social Work, a forecast overspend of £2.179m, relating to demand for residential placements within Children and Families and Older Peoples Services. • Within Roads and Infrastructure Services, a forecast overspend of £1.610m, mainly due to increased bus contract renewal costs for Public and Pupil Transport across Argyll and Bute, additional costs relating to repairs to the Belnahua Ferry, the Transport of ASN pupils, Temporary Accommodation and two unrealised savings for additional income from Traffic Regulation Orders (TB13b) and Stadiums (TB12b); partially offset by additional income in Waste, a reduction in Landfill Tax costs due to reduced tonnage levels in Helensburgh Waste Disposal and vacancy savings across the department. • Within Education, a forecast overspend of £0.241m due to higher than budgeted demand for Schools Residential placements, partially offset by lower than anticipated spend on catering purchases, receipt of historic water refunds, slippage in Education 100 Day Promise spend due to delays in recruitment, lower than anticipated uptake of Universal Free School Meals and a lower spend on condition surveys due to favourable market conditions and good procurement practice. • Within Central Budgets, a forecast overspend of £0.513m overall, relating to the pay award and higher than budgeted inflation on insurance, partially offset by lower than anticipated contributions to Joint Boards. There is a forecast
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overspend of £0.252m for 2024-25 pay awards, as the Scottish Government requires councils to fund 3.2%, while the budget only has 3% built in. This is recognised within Other Operating Income and Expenditure for current monitoring purposes. Implications of the pay award will be reflected across departments in future monitoring reports. • Within Funding, an over-recovery of Council Tax income on second homes of £0.328m. 2.1.3 2.1.4 It is anticipated that savings in interest costs will be achieved during the year, as a result of slippage in the capital programme; and the deferral of new long-term borrowing, due to the favourable cash position. This will provide capacity to either repay debt or contribute one-off additional resources towards meeting the forecast 2025/26 budget gap, through a contribution to General Fund reserves in 2024/25. As such, no variance has been assumed in the 2024/25 forecast outturn position. There is an overspend of £20.363m on the profiled budget to date. The year to date variances mainly relate to the actual timing of income and expenditure and recharging of costs to capital, in comparison to assumed budget profiles. The main focus of budget monitoring is the forecast outturn position. 2.1.5 Policy budget savings options, relating to 2024-25, total £6.467m. The table below outlines progress on the delivery of these savings as at 31 December 2024. Category No. of Options 2024- 25 £000 2024-25 FTE 2025-26 £000 2025- 26 FTE Future Years £000 Future Years FTE Delivered 7 5,556.0 10.9 5,723.0 10.9 5,723.0 10.9 On Track to be Delivered 6 790.0 4.0 671.0 4.0 671.0 4.0 Still to be Implemented 1 0.5 0.0 0.5 0.0 0.5 0.0 Being Developed 0 0.0 0.0 0.0 0.0 0.0 0.0 Will not be achieved 2 120.0 0.0 170.0 0.0 170.0 0.0 Potential Shortfall 0 0.0 0.0 0.0 0.0 0.0 0.0 Delayed 0 0.0 0.0 0.0 0.0 0.0 0.0 TOTAL 16 6,466.5 14.9 6,564.5 14.9 6,564.5 14.9 2.1.6 Two savings, totalling £120k are categorised as ‘Will not be achieved’ and a cost pressure will be considered as part of the 2025-26 budget process in this respect. 2.1.7 Health and Social Care Partnership (HSCP) – Financial Update The 2024-25 HSCP forecast outturn position as at 31 December 2024 is an overspend of £2.775m (£2.179m Social Work, £0.596m Health). The Chief Financial Officer of the IJB has now written to the Council to request access to the Strathclyde Pension Fund Gain that is held in reserves for the HSCP and, therefore, it is expected that Social Work will outturn within budget, after applying these reserves.
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2.2 Financial Risks 2.2.1 This report outlines the process and approach to financial risk assessment and provides an update on the current known financial risks facing the council in 2024- 25. 2.2.2 There are 4 council wide revenue risks identified for 2024-25, with a potential annual value totalling £2.583m, and with varying degrees of likelihood. 2.2.3 There are currently 42 departmental risks, with a potential annual value totalling £6.693m, of which 5 are categorised as ‘Likely’. These will continue to be monitored and reviewed on an ongoing basis, with action taken to mitigate or manage these risks. 2.2.4 The current top three risks in terms of the financial impact are noted in the table below. SERVICE RISK TITLE DESCRIPTION LIKELI- HOOD FINANCIAL IMPACT £000 Roads and Infrastructure Services Roads Maintenance - Bridges, Culverts & Sea Defences Extreme localised weather may result in loss of bridge, culvert, road or sea defence. 3 1,500 Roads and Infrastructure Services Waste PPP - Indexation Historical payments made towards Waste PPP based on indexation rates have been challenged by Renewi resulting in a potential cost to the council. 3 586 Financial Services Council Tax Debt Collection Recovery Recovery of debt becomes more difficult to pursue in the current economic climate. This is in relation to historical debt that has accumulated over many years therefore any adverse collection rates will impact on the year end debt provision as opposed to the in-year financial position, hence no forecast variance has been reported within the current year. 3 345 2.2.5 The number of council wide risks has reduced from 7 to 4 since the previous reporting period, due to confirmation of the 2024-25 pay awards, and progress on the delivery of approved 2024-25 revenue budget savings options. There have been no changes to the departmental risks since last reporting.
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2.3 Capital Plan Monitoring Report 2.3.1 This report provides an update on financial performance and the delivery of capital projects against the approved capital plan budget resources and timescales as at 31 December 2024. 2.3.2 Forecast net expenditure for the full financial year is £28.774m, compared to a profiled annual budget of £37.056m, giving rise to a forecast underspend for the year of £8.282m (22.35%). Actual net expenditure of £23.679m has been incurred in the year to date, representing 82% of the net expenditure forecast for the year. 2.3.3 The forecast outturn net expenditure on the total Capital Plan is £203.116m, compared to a budget of £202.999m, giving rise to a forecast overspend for the overall capital plan of £0.117m (0.06%). 2.3.4 There are a total of 153 projects within the overall Capital Plan. Of this total, 139 or 91% are Complete or On Target, 8 or 5% are Off Target and Recoverable and 6 or 4% are Off Track and experiencing Problems. 2.3.5 There are a number of risks, which may impact the delivery of the plan within available resources and target timescales. The capital programme continues to see significant price increases, as well as disruptions to the supply chain and longer lead in times, which makes it challenging to manage delivery of projects within available resources and target timescales. In recent years, additional funding of £11.100m has been made available to manage these cost pressures. Whilst this has helped mitigate the impact to date, these additional resources have now been fully allocated. There remains a financial risk in respect of projects, where contracts have yet to be entered into. Therefore, it should be noted that there are likely to be other significant financial impacts, which are not quantifiable, at this stage. The monitoring and review of risks will continue to be undertaken on an ongoing basis and regularly reported to committee. 2.4 Reserves and Balances 2.4.1 This report summarises the overall level of reserves and balances held by the council and monitors the use of the earmarked reserves held within the General Fund. 2.4.2 The council has a total of £400.319m unusable reserves that are not backed with resources. They are required purely for accounting purposes. 2.4.3 As at 31 March 2024, the council held usable reserves, totalling £121.701m, comprising the following: • £2.763m Repairs and Renewals Fund; • £3.197m Capital Funds; and • £115.741m General Fund, with £107.443m of this balance earmarked for specific purposes. 2.4.4 At the budget setting meeting on 22 February 2024, as part of the revenue budget, Council agreed to the transfer Strathclyde Pension Fund contribution savings of £6.875m relating to council staff and £3.053m relating to Social Work staff to reserves. It was also agreed that £1.875m of revenue surplus within 2024-25 be transferred to the Capital Plan. As the commitments for these include expenditure within 2024-25 year, these have been immediately recognised within the earmarked reserves balances to allow them to be spent accordingly. In addition, Scottish
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Government funding in relation to the 23-24 pay award has been notified at a value of £0.371m and this has been reinstated to the Connect for Success earmarking as planned. Further, following a review of earmarked reserves, at its meeting of 26 September 2024, Council approved the release of reserves totalling £1.558m, previously earmarked for specific purposes, back to the unallocated General Fund. The element of the General Fund balance currently earmarked for specific purposes now totals £118.059m. 2.4.5 The current earmarked General Fund balance of £118.059m comprises the following: • £58.413m invested or committed for major initiatives/capital projects; • £10.784m already drawn down; • £15.808m still to be drawn down in 2024-25; and • £33.054m planned to be spent in future years. 2.4.6 The table below summarises the position of the unallocated General Fund balance. Further explanation of the figures can be found at Section 3.4 of the Reserves and Balances report. Heading Detail £000 Unallocated General Fund as at 31 March 2024 This is the balance that is unallocated over and above the 2% contingency, which amounts to £6.039m 2,259 Current Forecast Outturn for 2024-25 as at 31 December 2024 Per Revenue Budget Monitoring report (4,215) Social Work Forecast Outturn adjustment Social Work variance expected to be managed from within IJB reserves 2,179 LiveArgyll Funding Award Contribution in respect of RNM event, to be met from unallocated GF balance (25) Forecast Unallocated General Fund as at 31 March 2025 198 2.4.7 After taking account of the current forecast outturn for 2024-25, the council’s unallocated General Fund balance, over and above the general contingency, is forecast to reduce to £0.198m as at 31 March 2025. 2.4.8 As at 31 December 2024, the commitments against the Strathclyde Pensions fund gain Transformation/Spend to Save projects earmarking are as follows: Description Commitment £000 Data Platform Build Consultancy 44 RIS Service Review 150 Conversational AI 31 225 Further details can be found on the Reserves and Balances report at section 3.7.4.
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2.5 VIREMENTS OVER £0.200m (Revenue) 2.5.1 Virement is the process of transferring budget between cost centres, services or departments or between capital projects. The Council’s constitution notes that virements over £0.200m require approval by Council. This section of the report will be used to outline revenue virements in the period that require approval. Capital virements are included within the capital monitoring report. 2.5.2 There are no virements requiring approval since last reporting. 3. RECOMMENDATIONS 3.1 It is recommended that the Policy and Resources Committee: a) Note the revenue budget monitoring report as at 31 December 2024; b) Note the financial risks for 2024-25; c) Note the capital plan monitoring report as at 31 December 2024 and approve the proposed changes to the capital plan outlined in Appendix 4 of that report; and d) Note the reserves and balances report as at 31 December 2024. 4. IMPLICATIONS 4.1 Policy – None. 4.2 Financial - Outlines the 2024-25 financial position of the council as at 31 December 2024 4.3 Legal - None. 4.4 HR - None. 4.5 Fairer Scotland Duty - None. 4.5.1 Equalities – protected characteristics - None. 4.5.2 Socio-economic Duty - None. 4.5.3 Islands - None. 4.6 Climate Change - None. 4.7 Risk - Provides a financial risks summary 4.8 Customer Service - None. 4.9 The Rights of the Child (UNCRC) - None. Kirsty Flanagan Executive Director /Section 95 Officer 17 January 2024 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services For further information contact Carolyn Earl, covering Head of Financial Services Carolyn.Earl@argyll-bute.gov.uk
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REVENUE BUDGET MONITORING REPORT AS AT 31 DECEMBER 2024 POLICY & RESOURCES COMMITTEE 20 FEBRUARY 2024 2024-25 Overall Position There is a forecast overspend of £4.215m as at 31 December 2024, comprising the following: • Within Social Work, a forecast overspend of £2.179m, which reflects demand for residential placements within Children and Families and Older Peoples Services; • Within the Executive Directorate of Kirsty Flanagan, a forecast net overspend of £1.610m. Overspends relate to increased bus contract renewal costs for Public and Pupil Transport across Argyll and Bute, additional costs relating to repairs to the Belnahua Ferry, the Transport of ASN pupils, Temporary Accommodation and two unrealised savings for additional income from Traffic Regulation Orders (TB13b) and Stadiums (TB12b). These overspends are partially offset by additional income in Waste, a reduction in Landfill Tax costs due to reduced tonnage levels in Helensburgh Waste Disposal and vacancy savings across the department; • Within the Executive Directorate of Douglas Hendry, a forecast net overspend of £0.241m due to higher than budgeted demand for school residential placements; partially offset by lower than anticipated spend on catering purchases, receipt of historic water refunds, slippage in Education 100 Day Promise spend due to delays in recruitment, lower than anticipated uptake of Universal Free School Meals and a lower spend on condition surveys due to favourable market conditions and good procurement practices; • Within Central Budgets, a forecast overspend of £0.513m overall, relating to the pay award and higher than budgeted inflation on insurance, partially offset by lower than anticipated contributions to Joint Boards. There is a forecast overspend of £0.252m for 2024- 25 pay awards, as the Scottish Government requires councils to fund 3.2%, while the budget only has 3% built in. This is recognised within Other Operating Income and Expenditure for current monitoring purposes, with implications of the pay award to be reflected across departments in future monitoring reports; and • Within funding, a projected over-recovery of income for Council Tax on 2nd Homes of £0.328m. There is a year to date overspend of £20.363m. The year to date variances within the departments tend to relate to the timing of income and expenditure and costs to capital not recharged yet. Key Highlights as at December 2024 Key highlights include the following: • Council services are projecting an overspend of £4.215m as at 31 December 2024. This includes £2.179m in respect of Social Work, which is expected to be funded from within the Health and Social Care Partnership’s reserves. The balance of the overspend is £2.036m.
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• Council’s require to fund 3.2% of the 2024-25 pay award, with only 3% provided for within the approved budget, creating a budget pressure £0.252m. This is currently included within Central Services, for current monitoring purposes, however, will be reflected across council services in future budget monitoring reports. Key Financial Successes Performance against budget for 2023-24 was an overall net favourable position of £1.728m underspend after adjusting for year-end earmarking. This breaks down as: • £1.037m net overspend in relation to council expenditure (excluding loans fund) • £0.033m over-recovery of Council Tax income • £5.932m underspend from the Loans Fund due to a higher return on investments than in the previous year, limiting new borrowing by utilising cash balances instead, slippage within the capital programme and a one-off treasury gain as a result of a discount on the early repayment of loans • £3.200m of new unspent budget earmarkings Key Financial Challenges Proposed Actions to address Financial Challenges Addressing service demand/expectation and the increasing challenges facing departments across the council in relation to the recruitment and retention of suitably qualified and experienced staff. Engagement and monitoring of both issues with departments to assess how these challenges are affecting service capacity and capability, staff attendance, utilisation of agency staff and costs. Collaboration with services and other back-office teams to consider and develop mitigating actions. Achieving a favourable year-end position and achieving savings targets in light of council wide risks to expenditure. Robust monitoring of the financial position and delivery of savings to ensure budget issues inform the budget monitoring process. Monitoring Social Work expenditure and more widely the IJB position as any overspend will transfer back to partner bodies in the first instance. Continue to work closely with the CFO of the IJB to ensure that early indication of any potential adverse financial outturn is identified and corrective action is agreed as appropriate to reduce the risk to the council. Identifying further savings and delivering services more efficiently with less resources, as whilst a balanced 2024-25 budget was agreed in February 2024 there are still significant budget gaps in future years. The council will continue to progress savings options identified, refine options that require further development and seek to identify further savings through themed reviews and business process reviews. A longer-term approach is being explored with the intention to develop a pipeline of savings that can be delivered over a number of years. Maintaining or improving the level of service income recovered, for example planning, building standards and car parking. Actively monitor income recovery and ensure council fees and charges policies are regularly reviewed. Managing spend in service areas which are demand led and, to some extent, outwith service control, for example Winter Maintenance. Use a risk-based approach to budget monitoring to focus additional attention on these areas.
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Ongoing requirement to fund unavoidable inflationary increases in areas like utility costs, fuel, food etc. Ensure emerging issues are highlighted as soon as possible so that the financial impact can be evaluated and reported through the budget monitoring and preparation processes. Cost of living crisis impacting on pay inflation negotiations which could result in pay awards above what is deemed affordable. Ensure emerging issues are highlighted as soon as possible so that the financial impact can be evaluated and reported through the budget monitoring and preparation processes. Future ongoing impact on revenue budgets as a result of the delivery of substantial capital projects such as Rothesay Pavilion and a new school on Mull. Ensure costs are identified and reported on early in the process so Members are aware of the ongoing financial impact to budgets. Monitor and report on these regularly as part of the routine budget monitoring once the projects are complete. Delivery of climate change measures which can be costly and result in overspends. The council will look at financially sustainable options and closely monitor the impact of these on the budget position. Forecast Outturn Position There is a forecast Overspend of £4.215m for 2024-25 as at 31 December 2024.
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Department Annual Budget £000 Forecast Outturn £000 Current Forecast Variance (Dec) £000 Previou s Forecas t Varianc e (Oct) £000 Change £000 Explanation Chief Executive's Unit 1,202 1,202 0 0 0 Executive Director (Douglas He 149,852 150,093 (241) (188) (53) The projected overspend is due to the Schools Residential Budget having a higher demand for placements than budget allows, partially offset by lower than anticipated spend in catering purchases, receipt of historic water refunds, slippage in Education 100 Day Promise budget due to delays in recruitment, lower than anticipated uptake of Universal Free School Meals and a lower spend on condition surveys due to favourable market conditions and good procurement. Executive Director (Kirsty Flana 58,181 59,791 (1,610) (1,610) 0 The projected overspend is due to increased bus contract renewal costs for Public and Pupil Transport across Argyll and Bute, additional costs relating to repairs to the Belnahua Ferry, the Transport of ASN pupils, Temporary Accommodation and two unrealised savings for additional income from Traffic Regulation Orders (TB13b) and Stadiums (TB12b). These overspends are partially offset by additional income in Waste, a reduction in Landfill Tax costs due to reduced tonnage levels in Helensburgh Waste Disposal and vacancy savings across the department. Weather Incident 2,787 2,787 0 (780) 780 A contribution from Crown Estates funding of £780k, as part of the funding framework for the unbudgeted revenue costs of the severe weather event has now been confirmed. There is no longer an adverse budget variance in this respect. Social Work 77,239 79,418 (2,179) (2,049) (130) The projected overspend is due to demand for residential placements within children and Families and Older People Services Central Budgets 22,358 22,871 (513) (261) (252) The projected overspend is due to a recognition that Scottish Government have asked Councils to fund a further 0.2% increase for the pay awards for 24-25 (£0.252m), pressure on the insurance budgets inflation being higher than estimated, partially offset by lower than anticipated contributions to Joint Boards. Financed By ####### (311,947) 328 328 0 There is a projected over-recovery of income for Council Tax on 2nd Homes of £0.328m. Total 0 4,215 (4,215) (4,560) 345 Note: Further information on the departmental forecast variances is included later on in the report.
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Year to Date Position
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The year to date position as at 31 December 2024 is an overspend of £20.363m and the main variances are noted below. Department YTD Actual £'000 YTD Budget £'000 YTD Variance £'000 Explanation Chief Executive's Unit 881 864 (17) The year to date overspend can be attributed to profiling issues. Executive Director (Douglas Hendry) 111,006 108,955 (2,051) The year to date overspend is mainly due to the pressure on the Schools Residential Budget, combined with the impact of the pay award and the budget profile not being realigned to reflect this. There are also advance payments for software which will be adjusted at year end through a prepayment which are skewing the YTD position as well as the impact of timing of receipt of grant income to offset grant expenditure. Executive Director (Kirsty Flanagan) 48,465 43,300 (5,165) The year to date overspend, is mainly due to the profile of a number of budgets across the department, mainly with Roads & Lighting and Marine. Weather Incident 3,497 2,032 (1,465) The year to date overspend can be attributed to profiling issues. Social Work 50,031 49,332 (699) The year to date overspend is due to demand driven services within Children and Families and Older People Central Budgets 5,867 5,664 (203) The year to date overspend can be attributed to profiling issues. Funding (207,280) (218,043) (10,763) The year to date overspend can be attributed to profiling issues. Total Net Expenditure 12,467 (7,896) (20,363)
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Note: Further information on the departmental year to date variances is included later on in the report. OBJECTIVE SUMMARY – OVERALL COUNCIL POSITION AS AT 31 DECEMBER 2024 0% 25% 50% 75% 100% Chief Executive's Unit Executive Director (Kirsty Flanagan) Executive Director (Douglas Hendry) Social W ork Central Budgets TOTAL Expenditure to date against the remaining budget for each Department YTD Actual £000 Remaining Budget £000
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YTD Actual YTD Budget YTD Variance Variance Annual Budget Forecast Outturn Forecast Variance Variance £'000 £'000 £'000 % £'000 £'000 £'000 % Departmental Budgets Chief Executive's Unit 881 864 (17) (2.0%) 1,202 1,202 0 0.0% Executive Director (Douglas Hendry) 111,006 108,955 (2,051) (1.9%) 149,852 150,093 (241) (0.2%) Executive Director (Kirsty Flanagan) 48,465 43,300 (5,165) (11.9%) 58,181 59,791 (1,610) (2.8%) Weather Incident 3,497 2,032 (1,465) 0.0% 2,787 2,787 0 0.0% Social Work 50,031 49,332 (699) (1.4%) 77,239 79,418 (2,179) (2.8%) Total Departmental Budgets 213,880 204,483 (9,397) (4.6%) 289,261 293,291 (4,030) (1.4%) Central Budgets Other Operating Income and Expenditure (2,932) 1,417 4,349 306.9% 3,541 3,593 (52) (1.5%) Joint Boards 1,026 1,093 67 6.1% 1,458 1,344 114 7.8% Non-Controllable Costs 7,773 3,154 (4,619) (146.5%) 17,359 17,934 (575) (3.3%) Total Central Budgets 5,867 5,664 (203) (3.6%) 22,358 22,871 (513) (2.3%) TOTAL NET EXPENDITURE 219,747 210,147 (9,600) (4.6%) 311,619 316,162 (4,543) (1.5%) Financed By Aggregate External Finance (149,581) (160,344) (10,763) 6.7% (249,731) (249,731) 0 0.0% Local Tax Requirement (57,699) (57,699) 0 0.0% (63,278) (63,606) 328 (0.5%) Contributions to General Fund 0 0 0 0.0% 12,174 12,174 0 0.0% Earmarked Reserves 0 0 0 0.0% (10,784) (10,784) 0 0.0% Total Funding (207,280) (218,043) (10,763) 4.9% (311,619) (311,947) 328 (0.1%) (Deficit)/Surplus for Period 12,467 (7,896) (20,363) 0 4,215 (4,215) (1.4%) CURRENT PROJECTED FINAL OUTTURNYEAR TO DATE (YTD) POSITION
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SUBJECTIVE SUMMARY – OVERALL COUNCIL POSITION AS AT 31 DECEMBER 2024 YTD Actual YTD Budget YTD Variance Variance Annual Budget Forecast Outturn Forecast Variance Variance £'000 £'000 £'000 % £'000 £'000 £'000 % Subjective Category Employee Expenses 139,790 133,789 (6,001) (4.5%) 192,106 195,316 (3,210) (1.7%) Premises Related Expenditure 16,111 15,460 (651) (4.2%) 22,430 22,786 (356) (1.6%) Supplies and Services 22,081 21,490 (591) (2.8%) 28,930 29,099 (169) (0.6%) Transport Related Expenditure 11,609 9,676 (1,933) (20.0%) 18,292 18,782 (490) (2.7%) Third Party Payments 136,140 136,735 595 0.4% 190,005 192,894 (2,889) (1.5%) Capital Financing 2,738 (3,646) (6,384) 10,626 10,626 0 0.0% TOTAL EXPENDITURE 328,469 313,504 (14,965) (4.8%) 462,389 469,503 (7,114) (1.5%) Income (316,002) (321,400) (5,398) 1.7% (462,389) (465,288) 2,899 (0.6%) (Deficit)/Surplus for Period 12,467 (7,896) (20,363) 0 4,215 (4,215) YEAR TO DATE (YTD) POSITION CURRENT PROJECTED FINAL OUTTURN Notes YTD represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget.
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CHIEF EXECUTIVE’S UNIT – AS AT 31 DECEMBER 2024 The department is currently forecasting spend in line with budget. The department has a year to date underspend of £0.017m (2%) which can be attributed to budget profiling issues. Forecast Outturn Position Service Annual Budget £000 Forecast Outturn £000 Current Forecast Variance (Dec) £000 Previous Forecast Variance Reported to P&R (Oct) £000 Change £000 Chief Executive 1,202 1,202 0 0 0 Totals 1,202 1,202 0 0 0 Year to Date Position Key Financial Successes: • All savings options have been delivered. • The department’s 2023-24 outturn position was an underspend of £0.006m. This resulted from an overall underspend of £0.014m offset by earmarking of £0.008m due to an auto-carry forward for unspent grants. Key Financial Challenges: Proposed Actions to address Financial Challenges: To continue to deliver a high-quality service to support community engagement and participation. Regular monitoring, reflection and improvement cycle on service provision to ensure most efficient use of staffing and financial resources to meet national and local policy requirements for quality engagement. 0% 25% 50% 75% 100% Chief Executive Expenditure to date against the remaining budget for each Service YTD Actual £000 Remaining Budget £000
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To continue to deliver a high quality support service function to community organisations and community planning partners during a time of challenge arising from continuing reductions in funding. Within the partnership working of the CPP we seek to establish working groups and collate resources within this to deliver high quality solutions to identified needs. Demands for funding from community applications to the Supporting Communities Fund higher than available annual funds by about 40%. Continue to monitor fund criteria adapting this to align with priority outcomes for Argyll & Bute and continue to support groups to seek alternative sources of funding from our database of funding providers.
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CHIEF EXECUTIVE’S UNIT – OBJECTIVE SUMMARY AS AT 31 DECEMBER 2024 Service Area YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Chief Executive 308 296 (12) (4.1%) 417 417 0 0.0% Outwith reporting criteria. Community Planning & Development 573 568 (5) (0.9%) 785 785 0 0.0% Outwith reporting criteria. 881 864 (17) (2.0%) 1,202 1,202 0 0.0% YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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CHIEF EXECUTIVE’S UNIT – SUBJECTIVE SUMMARY AS AT 31 DECEMBER 2024 Subjective Category YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Employee 732 719 (13) (1.8%) 1,019 1,019 0 0.0% Outwith reporting criteria. Supplies and Services 14 18 4 22.2% 21 21 0 0.0% Outwith reporting criteria. Transport 5 11 6 54.6% 14 14 0 0.0% Outwith reporting criteria. Third Party 165 168 3 1.8% 228 228 0 0.0% Outwith reporting criteria. Income (35) (52) (17) 32.7% (80) (80) 0 0.0% Outwith reporting criteria. Totals 881 864 (17) (2.0%) 1,202 1,202 0 0.0% YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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CHIEF EXECUTIVE’S UNIT – RED VARIANCES AS AT 31 DECEMBER 2024 Service Area Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation 0 0.0% A red variance is a forecast variance which is greater than +/- £50,000.
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – AS AT 31 DECEMBER 2024 The department is currently forecasting an overspend of £0.241m (0.2%) due to the Schools Residential Budget having a higher demand for placements than budget allows, partially offset by lower than anticipated spend in catering purchases, receipt of historic water refunds, slippage in Education 100 Day Promise budget due to delays in recruitment, lower than anticipated uptake of Universal Free School Meals and a lower spend on condition surveys due to favourable market conditions and good procurement. The department has a year to date (YTD) overspend of £2.051m (1.9%). This is mainly due to the above noted pressure on the Schools Residential Budget, combined with the impact of the pay award and the budget profile not being realigned to reflect this. There are also advance payments for software which will be adjusted at year end through a prepayment which are skewing the YTD position as well as the impact of timing of receipt of grant income to offset grant expenditure. Forecast Outturn Position Service Annual Budget £000 Forecast Outturn £000 Current Forecast Variance (Dec) £000 Previous Forecast Variance Reported to P&R (Oct) £000 Change £000 Executive Director (Douglas Hendry) 390 390 0 0 0 Head of Commercial Services 10,169 10,019 150 150 0 Head of Education 118,112 118,588 (476) (448) (28) Head of Legal and Regulatory Support 21,181 21,096 85 110 (25) Totals 149,852 150,093 (241) (188) (53) Year to Date Position 0% 25% 50% 75% 100% Executive Director (Douglas Hendry) Head of Commercial Services Head of Education Head of Legal and Regulatory Support Expenditure to date against the remaining budget for each Service YTD Actual £000 Remaining Budget £000
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Key Financial Successes: The 2023-24 year-end consolidated outturn position was an under spend of £0.690m after adjusting for automatic earmarking. Contributing factors included: • Effective contract management of NPDO and Hub School contracts, including a lower-than-expected insurance premium due to the annual renegotiation of insurance costs. • Successful negotiations with utility suppliers achieved further historic water charge refunds and ongoing reductions to water rates. • Implementation of NDEEF project resulting in recurring annual saving in utilities and a significant contribution to meeting Net Zero targets. • Rationalisation of office space through Our Modern Workspace Programme has reduced utility costs, printer costs and cleaning costs as well as receiving Non-Domestic Rates relief for closed buildings. • Income generation within Early Years, including expansion at Rothesay Joint Campus to accommodate care for children under the age of 2. Key Financial Challenges: Proposed Actions to address Financial Challenges: The legacy impact of COVID-19 on our young learners has led to an increased demand on the additional support need functions of the Education Service in response to the growing health and wellbeing needs of our young people and their families. This increase is consistent across Scotland. Analysis and review of delivery models has taken place, robust costings of any agreed changes to delivery model and continual monitoring of associated budgets. Maximise use of Additional Support for Learning Funding and Mental Health and Wellbeing Funding whilst working collaboratively across Children’s Services. Impact of the current cost of living crisis on the cost of the school day for learners and their families. Collaborate with schools to ensure effective use of Strategic Equity Funding and Pupil Equity Funding to close the poverty related attainment gap and identify other funding sources to ensure equity of experience for all children. Impact of the current cost of living crisis on uptake in demand led service areas like catering, design services and licensing. Continually refine/develop systems to accurately forecast service usage, budget outturn and future budget requirements. Strategies in place to redesign services in line with demand. Rising cost of material and labour costs within the Central Repairs Budget across the department may result in a reduction in activity or overspends. Costs are monitored regularly and contained as much as possible with any unavoidable overspends highlighted as soon as known. Ensure that the School Catering Service remains efficient and effective as the impact of high inflation on produce and a requirement to adhere to the Statutory Guidance supporting Nutritional Requirements for Food and Drink in Schools (Scotland) Regulations 2020, has increased the cost of producing a school meal. Through good procurement of supplies and the introduction of a school meal pre order app that will reduce food waste. Produce meals that pupils want to eat through regular consultation and a range of menu choices.
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The Council has a requirement to deliver 1140 hours of Early Learning and Childcare (ELC) to eligible 2-year-olds and all 3–5-year-old children. Following two years of reduced funding the service must continually redesign to fit the resources available. Robust service costings, financial monitoring and timely reporting to ensure the service can be delivered within the available budget. Medium term forecasting on population to shape ongoing service redesign. Analysis of potential to extend income generation using “spare” capacity to trial paid care for under 2’s Impact of high inflationary uplifts within the NPDO/HUB School contracts. Ensuring continued effective contract management of NPDO/HUB Schools to minimise the impact of high inflationary uplifts. The Scottish Government has Ringfenced some Education funding which is dependent on Maintaining Teacher Numbers (MTN) to a set level. The target has increased for 2024-25 with no increase in funding. Monitor teacher numbers and associated costs, highlighting any budget pressures immediately. If teacher numbers fall due to delays in recruitment, report the potential financial penalty to departmental management.
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – OBJECTIVE SUMMARY AS AT 31 DECEMBER 2024 Service Service Area YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Executive Director (Douglas Hendry) Central/Management Costs 289 288 (1) (0.4%) 390 390 0 0.0% Outwith Reporting Criteria 289 288 (1) (0.4%) 390 390 0 0.0% Head of Commercial Services Catering 16 (62) (78) 125.8% 320 320 0 0.0% The YTD overspend is due to payment of backdated pay arrears and the budget not being realigned for this, combined with usage of bank staff. This is all partially offset by lower than anticipated spend on catering purchases and replacement of catering equipment. Head of Commercial Services Central/Management Costs 985 972 (13) (1.3%) 1,721 1,621 100 5.8% The YTD overspend is profile related and will be refined to reflect the reported underspend forecast variance through the ledger due to the lower than anticipated spend on catering purchases. Head of Commercial Services CHORD 112 87 (25) (28.7%) 49 49 0 0.0% The YTD overspend is due to the timing of recharges required from capital to offset expenditure. Head of Commercial Services Cleaning (19) (66) (47) 71.2% 77 77 0 0.0% The YTD overspend is due to payment of backdated pay arrears and the budget not being realigned for this, combined with usage of bank staff. Head of Commercial Services Culture, Heritage, Recreation & Sport 4,277 4,323 46 1.1% 5,729 5,729 0 0.0% Outwith Reporting Criteria
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Head of Commercial Services Events & Commercial Catering 123 (18) (141) 783.3% 7 7 0 0.0% The YTD overspend is due to under-recovery of income within Events and Commercial Cafes. Finance are working closely with Commercial Services to increase income generation. Head of Commercial Services Property Portfolio (214) (158) 56 (35.4%) (189) (189) 0 0.0% The YTD underspend is due to the timing of invoices for property costs within surplus properties as well as the profile of rental income budgets. Head of Commercial Services Property Services 586 695 109 15.7% 848 798 50 5.9% The YTD and forecast underspend is on condition surveys due to favourable market conditions and good procurement. The balance on the YTD underspend is within staffing due to delays in recruitment. Head of Commercial Services Shared Offices 842 898 56 6.2% 1,607 1,607 0 0.0% The YTD underspend is due to profiling of Central Repairs and timing of works undertaken combined with over-recovery of Rental Income. 6,708 6,671 (37) (0.6%) 10,169 10,019 150 1.5% Head of Education Additional Support for Learning 8,886 8,764 (122) (1.4%) 12,338 12,338 0 0.0% The YTD overspend is due to payment of backdated pay arrears and the budget not being realigned for this. Head of Education Central/Management Costs 2,103 1,829 (274) (15.0%) 2,722 2,722 0 0.0% The YTD overspend is due to overspends in staffing, partially as a result of the backdated pay arrears, combined with staff subsistence, conference fees and travel budgets. Head of Education Community Learning & Development 6 4 (2) (50.0%) 15 15 0 0.0% The YTD overspend is due to central repairs costs in CLD premises. This budget is managed across the service as a whole. Head of Education COVID 11 10 (1) (10.0%) 10 10 0 0.0% Outwith Reporting Criteria
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Head of Education Early Learning & Childcare 13,210 13,097 (113) (0.9%) 18,094 18,094 0 0.0% The YTD overspend is within Premises costs in 1140 Hours which will be remedied through budget reprofiling and drawdown of earmarkings. Head of Education Primary Education 30,455 29,743 (712) (2.4%) 41,055 40,975 80 0.2% The YTD overspend is due to payment of backdated pay arrears and the budget not being realigned for this. The forecast underspend is as a result of lower uptake of Universal Free School Meals than funding allows. Head of Education Pupil Support 3,221 2,982 (239) (8.0%) 4,113 4,914 (801) (19.5%) The YTD and forecast overspend as due to higher than budgeted demand for Schools Residential Placements. Head of Education Schools - Central Services 1,642 1,066 (576) (54.0%) 2,401 2,156 245 10.2% The YTD overspend is due to the current spend within Strategic Equity Funding (SEF) and Developing the Young Workforce (DYW). For SEF we are waiting receipt of funds following confirmation in December of funding awarded; for DYW funding is due following our submitted grant return. This is combined with a YTD overspend on licence costs which will be distributed to schools in due course. The forecast position reflects an underspend within the 100 Day Promise budget due to delays in staffing. Head of Education Secondary Education 29,296 29,502 206 0.7% 37,364 37,364 0 0.0% The YTD underspend is profile- related within staffing budgets in secondary schools. This has been impacted by outstanding Teacher Cover adjustments which should be processed in January. 88,830 86,997 (1,833) (2.1%) 118,112 118,588 (476) (0.4%) Head of Legal & Regulatory Support Central/Management Costs 186 177 (9) (5.1%) 262 262 0 0.0% Outwith Reporting Criteria
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Head of Legal & Regulatory Support Community Safety 166 119 (47) (39.5%) 187 187 0 0.0% The YTD overspend will be rectified through processing of prepayments at year end. Head of Legal & Regulatory Support Elections 67 33 (34) (103.0%) 37 61 (24) (64.9%) This overspend is due to the two bi-elections that have been carried out in 2024-25. A forecast variance has been processed through the ledger to recognise the position. The remainder of the YTD overspend is profile related. Head of Legal & Regulatory Support Governance 508 445 (63) (14.2%) 733 734 (1) (0.1%) The YTD overspend is due to payment of backdated pay arrears and the budget not being realigned for this as well as overspend on communications which will be rectified through processing of prepayments at year end. Head of Legal & Regulatory Support Governance, Risk & Safety 409 386 (23) (6.0%) 575 575 0 0.0% Outwith Reporting Criteria Head of Legal & Regulatory Support Legal Services 302 363 61 16.8% 667 667 0 0.0% The YTD underspend is an over- recovery of Licence fee income while will reduce through the processing of prepayments at year end. This is partially offset by overspends on Agency Staff and the payment of backdated pay arrears and the budget not being realigned for this. Head of Legal & Regulatory Support NPDO and Hub Schools 12,299 12,279 (20) (0.2%) 16,947 16,837 110 0.6% The YTD overspend is profile related and will be refined. The forecast underspend reflects receipt of non-recurring historic water refunds. Head of Legal & Regulatory Support Procurement, Commercial and Contract Management 776 755 (21) (2.8%) 1,116 1,116 0 0.0% Outwith Reporting Criteria Head of Legal & Trading Standards & Advice Services 466 442 (24) (5.4%) 657 657 0 0.0% Outwith Reporting Criteria
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Regulatory Support 15,179 14,999 (180) (1.2%) 21,181 21,096 85 0.4% 111,006 108,955 (2,051) (1.9%) 149,852 150,093 (241) (0.2%) YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – SUBJECTIVE SUMMARY AS AT 31 DECEMBER 2024 Subjective Category YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Employee 79,254 77,234 (2,020) (2.6%) 109,974 109,729 245 0.2% The YTD overspend is partially due to payment of backdated pay arrears and the budget not being realigned combined with overspends on employee costs against grants due to timing of offsetting income receipt and subsequent budget position. The forecast position reflects an underspend within the 100 Day Promise budget due to delays in staffing. Premises 7,053 6,690 (363) (5.4%) 9,637 9,587 50 0.5% The YTD overspend in minor adaptations budget will be rectified by a drawdown from the early years earmarked reserve. There is also a YTD overspend in Central Repairs which is profile related and will be refined. The forecast underspend is on condition surveys due to favourable market conditions and good procurement Supplies and Services 10,325 10,858 533 4.9% 15,178 15,103 75 0.5% The YTD underspend relates mainly to the current budget profile of Schools Prepared Meals and Educational Equipment budgets within the Education Service as well as underspends on catering purchases in Commercial Services. The forecast underspend due to lower than anticipated spend on catering purchases partially offset by overspends as a result of two bi-elections in the year. Transport 339 256 (83) (32.4%) 352 352 0 0.0% The YTD overspend is due to small overspends within staff travel budgets across all Services, this overspend will be closely monitored. Third Party 36,622 35,889 (733) (2.0%) 46,605 47,326 (721) (1.6%) The YTD overspend is mainly due to the timing of invoices within NPDO and Hub Schools and the reported budget pressure within the Schools Residential Budget. Income (22,587) (21,972) 615 (2.8%) (31,894) (32,004) 110 (0.3%) The YTD position is mainly due to over-recovery of income within Legal and Regulatory Services. The YTD over-recovery in NPDO Schools is mainly profile- related and will be refined and the remainder is due to receipt of historic water refunds. The YTD over- recovery of income for Licence Fees will remain and be adjusted for at year-end. Totals 111,006 108,955 (2,051) (1.9%) 149,852 150,093 (241) (0.2%)
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YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – RED VARIANCES AS AT 31 DECEMBER 2024 Service Area Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Education - Pupil Support 4,113 4,914 (801) (19.5%) Higher than budgeted demand for placements within Residential Schools. Education - Schools - Central Services 2,401 2,156 245 10.2% Recruitment delays within 100 day Promise Budget Commercial Services - Central/Management Costs 1,721 1,621 100 5.8% Lower than anticipated spend in Catering Purchases Commercial Services - Property Services 848 798 50 5.9% Condition Surveys Budget - Market Conditions more favourable through effective procurement. Legal and Regulatory Support - NPDO 16,947 16,837 110 0.6% One off receipt of historic water refunds. Education - Primary Education 41,055 40,975 80 0.2% Lower than anticipated spend on Universal Free School Meals A red variance is a forecast variance which is greater than +/- £50,000.
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – AS AT 31 DECEMBER 2024 The department has a forecast overspend of £1.610m (2.8%). This is due to increased bus contract renewal costs for Public and Pupil Transport across Argyll and Bute, additional costs relating to repairs to the Belnahua Ferry, the Transport of ASN pupils, Temporary Accommodation and two unrealised savings for additional income from Traffic Regulation Orders (TB13b) and Stadiums (TB12b). These overspends are partially offset by additional income in Waste, a reduction in Landfill Tax costs due to reduced tonnage levels in Helensburgh Waste Disposal and vacancy savings across the department. The department has a year to date overspend of £5.165m (12.4%). This is mainly due to the profile of a number of budgets across the department, mainly with Roads & Lighting and Marine. Forecast Outturn Position Service Annual Budget £000 Forecast Outturn £000 Current Forecast Variance (Dec) £000 Previous Forecast Variance Reported to P&R (Oct) £000 Change £000 Executive Director (Kirsty Flanagan) 89 (11) 100 100 0 Head of Customer Support Services 8,825 8,809 16 16 0 Head of Development and Economic Growth 8,937 9,111 (174) (174) 0 Head of Financial Services 6,988 6,988 0 0 0 Head of Roads and Infrastructure Services 33,342 34,894 (1,552) (1,552) 0 Totals 58,181 59,791 (1,610) (1,610) 0 Year to Date Position 0% 25% 50% 75% 100% Executive Director (Kirsty Flanagan) Head of Customer Support Services Head of Development and Economic Growth Head of Financial Services Head of Roads and Infrastructure Services Expenditure to date against the remaining budget for each Service YTD Actual £000 Remaining Budget £000
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Key Financial Successes: The department had a challenging 2023-24 financial year with few financial successes largely due to the Weather Incident in October creating substantial pressures as well as reduced income due to numerous ferry cancellations at our Piers & Harbours. Key Financial Challenges: Proposed Actions to address Financial Challenges: Ensuring that services spend to budget and do not overspend after the department had an overspend of £1.3m after automatic earmarkings in 2023-24. Detailed monitoring in the key areas overspent in 2023-24 to flag up concerns early and mitigate before becoming an overspend. Department / Service ongoing ability to meet future savings / efficiency requirements. Monitoring of trends / expenditure levels / service configuration and the Service Packages Policy Options savings process. Rising cost of materials, software and consultancy services across the service will result in a reduction in activity or overspends. Costs are monitored regularly and contained as much as possible with any unavoidable overspends highlighted as soon as known. Financial Services to continue to deliver a high-quality support service function during a time of substantial uncertainty and challenge arising from continuing reductions in funding whilst costs are increasing due to ongoing high levels of inflation and service demand caused by world events. Ensure the team is operating as efficiently and effectively as possible by building resilience across the team and working collaboratively with other services of the Council to support evidence-based decision making. Winter Maintenance costs are difficult to estimate as they are very much dependant on the weather. Close monitoring of Winter Maintenance activity and reporting of the financial implications through the budget monitoring process. The Council agreed the winter policy, setting out the intervention level and locations to be treated. The number of treatments is determined by weather conditions. The current budget provision provides for 56 full equivalent runs. There is a sophisticated weather monitoring system in place consisting of several weather stations, this is supported by a forecasting and meteorological service which is collaboratively procured by West of Scotland local authorities. Climate Change Mitigation impacting on the departments key infrastructure due to increased inspection regimes will result in overspends. The Council will continue to tackle climate change, looking at financially sustainable options and will closely monitor the financial consequences.
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Dangerous buildings costs as there is no budget for this expenditure and the council has no control over the demand for the service. Building Standards, Legal Services and Financial Services are working closely to manage debt recovery and to consider other options to minimise corporate risk exposure. Ferry Grant from Transport Scotland has stayed the same for 2024-25 despite increased costs for employee inflation as well as other general inflationary increases. Costs are monitored regularly and contained as much as possible with any unavoidable overspends highlighted as soon as known. Due to the nature of the various components of Waste Management there are ongoing challenges with: • The introduction of the Deposit Return Scheme. • Uncertainty with recycling income/ gate fee costs due to the volatility of the market. • Challenges in the legislative changes around the disposal of Biodegradable Municipal Waste. • The Circular Economy Bill that has recently been passed and the implications that may bring. To closely monitor all service components of Waste Management and review the Waste Strategy in conjunction with our contractual partner Renewi (previously Shanks).
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – OBJECTIVE SUMMARY AS AT 31 DECEMBER 2024 Service Service Area YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Executive Director (Kirsty Flanagan) Central/Management Costs 235 214 (21) (9.8%) 89 (11) 100 112.4% Forecast variance due to a projected over-recovery of vacancy savings. 235 214 (21) (9.8%) 89 (11) 100 112.4% Head of Customer Support Services Central/Management Costs 104 120 16 13.3% 167 167 0 0.0% YTD underspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year. Head of Customer Support Services Communications 253 246 (7) (2.9%) 339 339 0 0.0% Outwith reporting criteria Head of Customer Support Services Customer Service Centres 1,191 1,128 (63) (5.6%) 1,590 1,590 0 0.0% YTD overspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year. Head of Customer Support Services HR 2,105 1,869 (236) (12.6%) 2,386 2,370 16 0.7% YTD overspend due to costs for the iTrent project that need to be drawn down from earmarked reserves. Forecast variance due to underspend in Organisational Development. Head of Customer Support Services ICT 3,301 3,295 (6) (0.2%) 4,368 4,368 0 0.0% Outwith reporting criteria Head of Customer Support Services Registrars (3) (41) (38) 92.7% (25) (25) 0 0.0% YTD overspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year. 6,951 6,617 (334) (5.1%) 8,825 8,809 16 0.2% Head of Development & Economic Growth Airports 1,005 948 (57) (6.0%) 1,186 1,186 0 0.0% YTD overspend due to the timing of cash flows in comparison to the profiling of
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budget and will be rectified over the financial year. Head of Development & Economic Growth Building Control (203) (170) 33 (19.4%) (140) (140) 0 0.0% YTD underspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year. Head of Development & Economic Growth Central/Management Costs 396 391 (5) (1.3%) 570 570 0 0.0% Outwith reporting criteria Head of Development & Economic Growth Culture & Heritage 151 179 28 15.6% 250 250 0 0.0% YTD underspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year. Head of Development & Economic Growth Development Management 30 (24) (54) 225.0% 115 115 0 0.0% YTD overspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year. Head of Development & Economic Growth Development Policy 279 308 29 9.4% 451 451 0 0.0% Outwith reporting criteria Head of Development & Economic Growth Economic Development 335 2,076 1,741 83.9% 2,178 2,178 0 0.0% YTD underspend due to grant income received that has not yet been spent and will be rectified over the financial year. Head of Development & Economic Growth Environmental Health 788 833 45 5.4% 1,230 1,230 0 0.0% Outwith reporting criteria Head of Development & Economic Growth Environmental Initiatives 59 57 (2) (3.5%) 93 93 0 0.0% Outwith reporting criteria Head of Development & Economic Growth Housing 3,644 2,978 (666) (22.4%) 2,714 2,888 (174) (6.4%) YTD overspend due to earmarked reserve draw down being needed to fund expenditure in the Strategic Housing Fund not being completed. Forecast overspend reported due to increased Temporary
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Accommodation and maintenance costs. Head of Development & Economic Growth Private Landlords (219) (11) 208 (1890.9%) 0 0 0 0.0% YTD underspend is due to timing of Short Term Let income which will be rectified over the coming months with any surplus being earmarked at the end of the year. Head of Development & Economic Growth Transportation Policy 131 218 87 39.9% 290 290 0 0.0% YTD underspend due to profile of income which will be rectified over the financial year. 6,396 7,783 1,387 17.8% 8,937 9,111 (174) (1.9%) Head of Financial Services Accounting & Budgeting 1,849 1,825 (24) (1.3%) 2,566 2,566 0 0.0% Outwith reporting criteria Head of Financial Services Internal Audit & Fraud 234 248 14 5.7% 332 332 0 0.0% Outwith reporting criteria Head of Financial Services Revenues & Benefits 4,856 4,913 57 1.2% 3,155 3,155 0 0.0% YTD underspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year. Head of Financial Services Scottish Welfare Fund 534 560 26 4.6% 935 935 0 0.0% Outwith reporting criteria 7,473 7,546 73 1.0% 6,988 6,988 0 0.0% Head of Roads & Infrastructure Services Amenity 3,114 2,939 (175) (6.0%) 3,215 3,240 (25) (0.8%) YTD overspend mainly due to Maintenance cost across Parks within Bute and Cowal which can hopefully be covered by underspends elsewhere, further information will be provided at next update. Forecast variance due to additional vehicle costs. Head of Roads & Infrastructure Services Car Parking (588) (464) 124 (26.7%) (601) (601) 0 0.0% YTD underspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year.
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Head of Roads & Infrastructure Services Central/Management Costs 2,393 2,206 (187) (8.5%) 2,698 2,662 36 1.3% YTD overspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year. Forecast underspend due to delay in Route Optimisation project, this is partially offset against additional vehicle costs. Head of Roads & Infrastructure Services Depots 386 384 (2) (0.5%) (313) (313) 0 0.0% Outwith reporting criteria Head of Roads & Infrastructure Services Fleet & Transport 8,014 6,358 (1,656) (26.1%) 8,668 10,255 (1,587) (18.3%) YTD overspend due to increased internal fleet maintenance costs and increased bus contracts costs for Public Transport and Pupil Transport. Forecast overspend reported due to increased contract costs for Public & Pupil Transport as well as increased costs for Internal Pupil Transport. Head of Roads & Infrastructure Services Infrastructure 407 489 82 16.8% 725 725 0 0.0% YTD underspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year. Head of Roads & Infrastructure Services Marine (2,882) (4,124) (1,242) 30.1% (3,810) (3,560) (250) 6.6% YTD overspend due to additional costs for Ferry maintenance and timing of income. Forecast overspend for additional maintenance costs for Luing and Jura Ferries. Head of Roads & Infrastructure Services Network & Traffic Management 189 42 (147) (350.0%) 109 209 (100) (91.7%) YTD overspend due to shortfall in income for Traffic Regulation Orders. Forecast overspend for an unrealised saving for additional income from Traffic Regulation Orders.
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Head of Roads & Infrastructure Services Road Safety 81 143 62 43.4% 147 147 0 0.0% YTD underspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year. Head of Roads & Infrastructure Services Roads & Lighting 7,507 4,158 (3,349) (80.5%) 7,699 7,703 (4) (0.1%) YTD overspend due to the profile of internal recharge budget within the Roads and Lighting Holding account, which will be rectified over the financial year. Forecast overspend due to increased employee recharges. Head of Roads & Infrastructure Services Waste 8,789 9,009 220 2.4% 14,805 14,427 378 2.6% Underspend due to reduction in Landfill Tax costs due to reduction in tonnage levels in Helensburgh resulting in underspends alongside additional recyclate and commercial refuse income. 27,410 21,140 (6,270) (29.7%) 33,342 34,894 (1,552) (4.7%) 48,465 43,300 (5,165) (11.9%) 58,181 59,791 (1,610) (2.8%) YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – SUBJECTIVE SUMMARY AS AT 31 DECEMBER 2024 Subjective Category YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Employee 30,912 30,142 (770) (2.6%) 43,367 43,651 (284) (0.7%) YTD overspend due to payment of backdated pay arrears and the budget not being realigned which will be rectified by the end of the financial year as well as agency staff that will be covered with the draw down of earmarked reserves. Premises 2,587 2,672 85 3.2% 4,075 4,115 (40) (1.0%) YTD underspend mainly due to the profile of the Depot recharge which will be rectified by end of the financial year. Forecast overspend due additional housing maintenance costs. Supplies and Services 9,324 7,963 (1,361) (17.1%) 10,979 10,961 18 0.2% YTD overspend mainly due to expenditure incurred in Economic Development which will be funded from grant income as well as the profile of budget across a number of services which should be rectified by end of the financial year. Forecast underspend due to delay in Route Optimisation project partially offset by additional housing maintenance costs. Transport 10,730 8,884 (1,846) (20.8%) 16,900 17,352 (452) (2.7%) YTD overspend due to additional costs for ferry and vehicle maintenance costs as well as additional Fleet and Roads Maintenance costs that will be offset with additional income from recharges to other services/capital. Forecast overspend for additional maintenance costs for Luing and Jura Ferries, increased Pupil Transport costs and vehicle maintenance costs across Amenity and Waste. Third Party 51,541 50,847 (694) (1.4%) 71,148 72,080 (932) (1.3%) YTD overspend mainly due to grant payments within Economic Development and Housing that either have or will be offset with grant income once received as well as external contractor costs within Roads that are covered by additional income, these are offset by Benefit Payment underspends which are offset with reduced income. Forecast overspend due to increased contract costs for Public Transport and additional Temporary Accommodation costs in Housing.
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Capital Financing 0 0 0 0.0% 2,677 2,677 0 0.0% Outwith reporting criteria Income (56,629) (57,208) (579) 1.0% (90,965) (91,045) 80 (0.1%) YTD overspend mainly due to a reduction in Benefit Income which will be offset with reduced Benefit Payments and the profile of recharges within the Roads Operational Holding Account which will be rectified over the financial year; these are partially offset with grant income received within Economic Development and Housing to cover expenditure incurred within Third party Payments. Forecast underspend reported as there is a reduction in Landfill Tax costs due to reduction in tonnage levels in Helensburgh alongside additional recylate and commercial refuse income which is partially offset against two unrealised savings for additional income from Traffic Regulation Orders (TB13b) and Stadiums (TB12b). Totals 48,465 43,300 (5,165) (11.9%) 58,181 59,791 (1,610) (2.8%) YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – RED VARIANCES AS AT 31 DECEMBER 2024 Service Area Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Public Transport 5,266 6,353 (1,087) (20.6%) New bus contracts in place for Public and Pupil Transport. Pupil Transport - Internal 1,461 1,961 (500) (34.2%) Increased costs for transporting ASN pupils. Ferries 160 410 (250) (156.3%) Maintenance costs for Luing and Jura ferries. Traffic Regulation Orders (150) (50) (100) 66.7% Unrealised saving for additional income from Traffic Regulation Orders. Housing 742 846 (104) (14.0%) Increased costs for B&B usage for Temporary Accommodation. Vacancy Savings (428) (528) 100 (23.4%) Projected over-recovery of vacancy savings. Waste Income (2,324) (2,504) 180 (7.7%) Additional recyclate income. Waste Disposal 1,989 1,756 233 11.7% Reduction in Landfill Tax costs due to reduction in tonnage levels in Helensburgh A red variance is a forecast variance which is greater than +/- £50,000.
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SOCIAL WORK – AS AT 31 DECEMBER 2024 The department is currently forecasting an overspend of £2.179M (2.8%). This is due to demand for residential placements within Children and Families and Older People Services. The department has a year-to-date overspend of £0.699m (1.4%) which again is due to demand driven services within Children and Families and Older People. Forecast Outturn Position Service Annual Budget £000 Forecast Outturn £000 Current Forecast Variance (Dec) £000 Previous Forecast Variance Reported to P&R (Oct) £000 Change £000 Chief Officer Integration (1,261) (1,011) (250) (254) 4 Head of Strategic Planning and Performance 453 456 (3) 0 (3) Head of Health and Community Care 41,607 43,452 (1,845) (1,890) 45 Head of Acute and Complex Care 21,216 21,116 100 314 (214) Head of Children and Families 15,224 15,405 (181) (219) 38 Totals 77,239 79,418 (2,179) (2,049) (130) Year to Date Position Key Financial Successes: Delivered a balanced budget at the end of 2023/24 after utilising £1.826m of reserves. An additional amount of £0.209m was transferred to IJB reserves and should allow for future investment and transformation across Social Work. -115% -90% -65% -40% -15% 10% 35% 60% 85% 110% Chief Officer Integration Head of Adult Services Head of Children and Families Head of Strategic Planning and Performance Expenditure to date against the remaining budget for each Service YTD Actual £000 Remaining Budget £000
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Key Financial Challenges: Proposed Actions to address Financial Challenges: Deliver the outstanding savings total for 2024/25 of £0.993m (as at September 2024). Maintain a close working relationship with the HSCP Service Improvement Team to quickly and efficiently identify and assess options for delivering the outstanding savings. Development and delivery of future service redesigns which will be necessary to contain service expenditure within the allocated resource, noting that in year savings still need to be identified for 24/25 to address the 24/25 budget gap, as well as budget gaps in future years. Support from finance to assist strategic managers to develop and identify further savings and to look beyond the short term to identify and plan the changes which will be needed to address the expected ongoing budget challenges over the current, and future, years. Use of agency staff to support service delivery across Social Work, but particularly in Older People services, due to recruitment and retention challenges within the service. Year to date spend at August 2024 of £1.9m. Close working relationship with the HSCP to support the costing of a plan to stabilise the service and ensure it is operationally and financially sustainable. This includes an exit plan from the reliance on agency staff. Cost of living crisis affecting pay inflation negotiations and financial sustainability of service providers, which could affect affordability and sustainability of service delivery. Ensure emerging issues are highlighted as soon as possible so that the financial impact can be evaluated and reported through the budget monitoring and preparation processes.
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SOCIAL WORK – OBJECTIVE SUMMARY AS AT 31 DECEMBER 2024 Service Service Area YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Chief Officer Integration Integration Headquarters 267 249 (18) (7.2%) 596 606 (10) (1.7%) Outwith reporting criteria. Chief Officer Integration Social Work Central Support (125) (512) (387) 75.6% (1,857) (1,617) (240) 12.9% The YTD variance is due to the under recovery of vacancy savings partially offset by spend on agency staff and charges from housing services and a termination payment due to a senior officer leaving their substantive post. The forecast variance reflects an under recovery in vacancy savings due to either posts being filled or cost centres not open for savings due to agency costs being incurred. This under recovery is partially offset by agency costs being incurred,charges from housing services and a termination payment due to a senior officer leaving their substantive post. 142 (263) (405) 68.4% (1,261) (1,011) (250) 11.2% Head of Strategic Planning & Performance Management & Central Costs 286 281 (5) (1.8%) 421 426 (5) (1.2%) Outwith reporting criteria. Head of Strategic Planning & Performance Service Development 21 21 0 0.0% 32 30 2 6.3% Outwith reporting criteria. 307 302 (5) (1.8%) 453 456 (3) 5.1% Head of Health and Community Care Management & Central Costs 358 333 (25) (7.5%) 582 589 (7) (1.2%) Outwith reporting criteria. Head of Health and Community Care Older People 26,269 25,909 (360) (1.4%) 41,025 42,863 (1,838) (4.5%) The YTD and forecast overspends are due to the current demand for care packages and the increasing reliance on agency staff to cover sickness and vacancies along with an increase in payments to third party providers. 26,627 26,242 (385) (1.5%) 41,607 43,452 (1,845) (4.4%)
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Head of Acute and Complex Care Learning Disabilities 8,166 8,690 524 6.0% 14,989 14,710 279 1.9% The YTD underspend is due to timing differences on charges to health boards and other income lines. The forecast underspend reflects the current demand for LD services. Head of Acute and Complex Care Management & Central Costs 55 83 28 33.7% 128 92 36 28.1% The YTD and forecast underspends are based on current projected requirement for training and supplies and services costs. Head of Acute and Complex Care Mental Health 2,004 1,699 (305) (18.0%) 3,001 3,362 (361) (12.0%) The YTD variance is due to unbudgeted agency costs, timing differences on charges to health boards and increased demand for residential placements. The forecast overspend is based on current demand for the service and re-assessments of care packages and unbudgeted agency costs. Head of Acute and Complex Care Physical Disability 1,901 2,112 211 10.0% 3,098 2,952 146 4.7% The YTD and forecast underspends are due to some care packages ending and others being re-assessed. 12,126 12,584 458 31.8% 21,216 21,116 100 22.7% Head of Children & Families Child Protection 2,247 2,379 132 5.6% 3,602 3,431 171 4.7% The YTD variance is based on known demands for the service coupled with deferred income received from previous years. The forecast underspend is as a result of demand for contact and welfare services and deferred income in the area teams budget lines. Head of Children & Families Children with a Disability 654 783 129 16.5% 1,036 833 203 19.6% The YTD variance is based on two third sectors grants ending. The forecast underspend reflects a reduction in third sector grants payable to external organisations, one of which may re-start before then end of the financial year. Head of Children & Families Criminal Justice 251 122 (129) (105.7%) 174 77 97 55.7% The YTD variance is due to additional grant funding. The forecast underspend reflects additional grant funding received along with vacant posts. Head of Children & Families Looked After Children 5,322 4,837 (485) (10.0%) 6,679 7,366 (687) (10.3%) The YTD variance is due to a retainer payment being required for 4 weeks for 2 children transitioning from secure to residential placements along with a rates increase agreed by Scotland Excel and a change in the split of the funding for one package. The forecast overspend reflects current known demand for
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the service. Currently have 18 children in residential placements with an average cost of £132k per annum and potentially more under consideration along with an overspend on staff costs due to a re-grading process partially offset by underspends in Adoption and Fostering. Head of Children & Families Management & Central Costs 2,355 2,346 (9) (0.4%) 3,733 3,698 35 0.9% Outwith reporting criteria. 10,829 10,467 (362) (3.5%) 15,224 15,405 (181) (1.2%) GRAND TOTAL 50,031 49,332 (699) (1.4%) 77,239 79,418 (2,179) (2.8%) YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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SOCIAL WORK – SUBJECTIVE SUMMARY AS AT 31 DECEMBER 2024 Subjective Category YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Employee 26,347 23,432 (2,915) (12.4%) 33,537 36,184 (2,647) (7.9%) Both the YTD and forecast overspend is due to the use of agency staff across the HSCP partially offset by payroll underspends due to vacancies. Premises 1,065 1,007 (58) (5.8%) 1,584 1,646 (62) (3.9%) The YTD overspend and forecast overspend are mainly due to overspends on utilities, central repairs and property maintenance. Supplies & Services 1,496 1,421 (75) (5.3%) 1,045 1,307 (262) (25.1%) The YTD and forecast overspend are largely due to the timing of payments relating to the purchase of computer software and the purchase of small tools and equipment. Transport 497 477 (20) (4.2%) 616 654 (38) (6.2%) The YTD and forecast variance are outwith the reporting criteria. Third Party 42,885 44,513 1,628 3.7% 64,814 66,014 (1,200) (1.9%) The YTD and forecast variance are due to demand for purchased care services across both Childrens and Adult Services. Income (22,259) (21,518) 741 (3.4%) (24,357) (26,387) 2,030 (8.3%) The YTD and forecast over recovery of income is mainly due to increased income from fees, charges and recharges. Totals 50,031 49,332 (699) (1.4%) 77,239 79,418 (2,179) (2.8%) YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far.
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Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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SOCIAL WORK – RED VARIANCES AS AT 31 DECEMBER 2024 Service Area Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Social Work Central Support (1,857) (1,617) (240) 12.9% The forecast variance reflects an under recovery in vacancy savings due to either posts being filled or cost centres not open for savings due to agency costs being incurred. This under recovery is partially offset by agency costs being incurred, charges from housing services and a termination payment due to a senior officer leaving their substantive post. Looked After Children 6,679 7,366 (687) (10.3%) The forecast overspend reflects current known demand for the service. Currently have 18 children in residential placements with an average cost of £132k per annum and potentially more under consideration along with an overspend on staff costs due to a re-grading process partially offset by underspends in Adoption and Fostering. Children with a Disability 1,036 833 203 19.6% The forecast underspend reflects a reduction in third sector grants payable to external organisations, one of which may re-start before then end of the financial year. Child Protection 3,602 3,431 171 4.7% The forecast underspend is as a result of demand for contact and welfare services and deferred income in the area teams budget lines. Criminal Justice 174 77 97 55.7% The forecast underspend reflects additional grant funding received and vacant posts. Older People 41,025 42,863 (1,838) (4.5%) The forecast variance reflects the current demand for care packages, the cost of agency staff and payments to third party providers. Physical Disability 3,098 2,952 146 4.7% The forecast underspend is due to a combination of re-assessed needs packages and some care packages ending. Learning Disability 14,989 14,710 279 1.9% The forecast underspend reflects the current demand for LD services. Mental Health 3,001 3,362 (361) (12.0%) The forecast overspend is based on current demand for the service and re-assessments of care packages and unbudgeted agency costs. A red variance is a forecast variance which is greater than +/- £50,000.
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MONITORING OF SAVINGS – AS AT 31 DECEMBER 2024 New policy savings were identified for the three year period 2024-25 to 2026-27 and these were agreed by Council in February 2024. Council agreed to policy savings of £0.665m on a recurring basis. The position of historical policy saving options is as follows: - 2023/24 – those not delivered or that have further increases in value in 2024-25 onwards total £5.387m - 2022/23 – those not delivered or that have further increases in value in 2024-25 onwards total £0.170m - 2021/22 – those not delivered total £0.041m - 2020/21 – all delivered - 2019/20 – all delivered - 2018/19 - those not delivered total £0.204m The 2024-25 savings have been removed from departmental budgets, however, it is important to monitor whether the saving has actually been delivered to ensure that costs are not continuing resulting in an overspend by the end of the year. It is also important to ensure that any preparatory work required to deliver savings in future years is on track. There is two savings where the department has indicated it will not be achieved in full as summarised below: Saving Saving Agreed Status Detail Shortfall/ Delayed Value TB13b Roads and Amenity Services charging (non-statutory services) Feb-18 Will not be achieved in full. The original proposal was to introduce charges for providing lighting design and increase charges by 20% for road construction consents, skips, scaffolds, hoarding, permits and licences. Whilst some additional income has been generated through third party works, opportunities are expected to be limited over the foreseeable future due to staff shortages and other competing demands. A cost pressure will be added to the 2025-26 budget for this shortfall and the service will look at other potential savings as part of the RIS Review. £100,000
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TB12b Stadiums Feb-18 Will not be achieved in full. The potential partnership relating to Mossfield has not materialised. More clubs are now using the all weather facilities and this has had an impact on Council income, therefore it is unlikely the full saving will ever be achieved. A cost pressure will be added to the 2025-26 budget for this shortfall and the service will look at other potential savings as part of the RIS Review. £20,000 All policy saving options previously agreed are noted in the table below for information.
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2024-25 2024-25 £000 FTE Executive Director Douglas Hendry CS01 Feb-22 Commercial Services Property Services Climate Change & Resource Efficiency 63.0 0.00 On Track to be Delivered 202425 008 Feb-24 Commercial Services - Live Argyll Live Argyll 10% reduction 10% reduction to the Management Fee paid to Live Argyll Leisure Trust from the Council. 363.00 0.0 Delivered 202425 011 Feb-24 Education Positive Starts Referrals to the Positive Starts support scheme have been reducing year on year, furthermore the Early Years team no longer have capacity to quality assure and administer this budget to a level where they can ensure a positive impact for children and families or best value in relation to the service. Referrals come form Health and Social Work, not Education however the HSCP were not willing to manage this budget. 40.0 0.00 Delivered 202425 009 Feb-24 Governance, Risk and Safety Governance Restructure Reorganisation of Governance team and remove posts that are currently vacant. The proposed restructure will ensure current level of service will be maintained. 62.00 2.5 On Track to be Delivered Executive Director Kirsty Flanagan DEG01 Feb-22 Development and Economic Growth Economic Growth Crown Estate Administration Contribution to Project Delivery 107.00 0.0 Delivered FIS2324-001 Feb-23 Financial Services Treasury Management Service Concessions - Alteration to accounting treatment to align the repayment of borrowing relating to new schools over their asset life. Guidance from Scottish Government now permits this change of accounting treatment. Further detail will be provided to Council in due course. 4,861.0 0.00 Delivered FIS2324-002 Feb-23 Financial Services Revenues and Benefits The Service has identified savings through rightsizing of budgets, an organisational restructure with investment in modern apprenticeships and temporary staff designed to boost income from the billing of additional local taxes and the recovery of associated debt. In addition efficiency savings from increased productivity, increased levels of process automation and moving more customers to transact with the service over the internet will allow previously outsourced review works to be carried out internally. 466.00 3.0 On Track to be Delivered R&I15 Feb-21 Roads and Infrastructure Roads and Infrastructure Emergency services support and fuel provision from our fuel supplies 0.50 0.0 Still to be Implemented 202425 012 Feb-24 Roads and Infrastructure Roads and Infrastructure Services (RIS) Review A RIS Review was undertaken during 2023/24 and the implementation of the outcomes will begin in 2024-25. It is anticipated that further efficiency savings will be achievable in future years but the level of which are not known at this stage. 200.00 0.0 On Track to be Delivered R&I09 Feb-21 Roads and Infrastructure - Operations Roads and Infrastructure - Operations Road inspections find and fix - reduce reactive work by proactivity. Moving to AI technology as technology develops 40.00 1.0 On Track to be Delivered RIS2324-001 Feb-23 Roads and Infrastructure Services School Crossing Patrollers Support Communities to move to different approaches to delivering School Crossing Patrols through engagement with Parent Council and Communities. 60.00 8.4 Delivered TB13b Feb-18 Roads and Infrastructure Services Roads and Infrastructure Services Roads & Amenity Services charging (non- statutory services) 100.0 0.00 Will not be achieved TB13b Feb-18 Roads and Infrastructure Services Roads and Infrastructure Services Roads & Amenity Services charging (non- statutory services) 50.0 0.00 On Track to be Delivered TB12b Feb-18 Roads and Infrastructure Services Amenity Services Review charges for stadiums to enable improvement work 20.00 0.0 Will not be achieved TB12b Feb-18 Roads and Infrastructure Services Amenity Services Review charges for stadiums to enable improvement work 10.00 0.0 On Track to be Delivered TB09 Feb-18 Roads and Infrastructure Services Public Conveniences Public Conveniences - Progress sustainable models including turnstiles and franchising; establish simpler asset transfer process 24.00 0.0 On Track to be Delivered TOTAL 6,466.5 14.9 Template Ref Saving Agreed Service Service Delivery Area Savings Option Status of Implementation
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ARGYLL AND BUTE COUNCIL FINANCIAL SERVICES POLICY AND RESOURCES COMMITTEE 20 FEBRUARY 2025 FINANCIAL RISKS ANALYSIS 2024-25 1 EXECUTIVE SUMMARY 1.1 The main purpose of this report is to provide a summary of the known key financial risks facing the council in 2024-25, as at 31 December 2024. 1.2 A number of council wide financial risks, both revenue and capital, have been identified, in addition to specific departmental or service risks. For each departmental risk, the potential annual financial impact has been quantified, and the likelihood of the risk materialising assessed based on a standard risk matrix. 1.3 There are 4 council wide revenue risks identified for 2024-25, with a potential annual value totalling £2.583m, and with varying degrees of likelihood. 1.4 There are currently 42 departmental risks, with a potential annual value totalling £6.693m, of which 5 are categorised as ‘Likely’. 1.5 Financial risks are monitored and reviewed on an ongoing basis, with actions put in place to continue to mitigate or manage these risks.
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ARGYLL AND BUTE COUNCIL FINANCIAL SERVICES POLICY AND RESOURCES COMMITTEE 20 FEBRUARY 2025 FINANCIAL RISKS ANALYSIS 2024-25 2. INTRODUCTION 2.1 This report outlines the process and approach to financial risk assessment and provides details of the known key financial risks facing the council in 2024-25, as at 31 December 2024. 3 DETAIL 3.1 Introduction 3.1.1 The council is currently in a period of significant financial challenge. In developing its budget to address both funding, and cost and demand pressures, consideration is given to financial risk. However, both existing and new or emerging financial risks require to be monitored and reviewed on an ongoing basis throughout the year, with actions put in place to mitigate or manage these risks. Risks that cannot be mitigated or managed may have a detrimental impact on the financial position of the council. 3.1.2 There are a number of risks that may impact income or expenditure across the entire council. These are identified as council wide risks. In addition, specific financial risks impacting each department or service of the council have been considered. These are identified as departmental/service risks. 3.1.3 For each risk, the potential annual financial impact has been quantified and the likelihood assessed based on the following standard risk matrix: 1 – Remote 2 – Unlikely 3 – Possible 4 – Likely 5 – Almost Certain 3.1.4 The Argyll and Bute Integrated Joint Board (IJB) with responsibility for Social Work and a range of Health services was established and came into effect on 1 April 2016. The IJB is responsible for financial and strategic oversight of these services. It is the responsibility of the IJB to consider the individual financial risks associated with Integration Services and these risks are therefore not contained within this report. A council wide risk has been included in respect of the IJB being unable to deliver the social care service within the budget allocated. 3.2 Council Wide Risks Revenue
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3.2.1 There is continued volatility in utilities pricing and demand can also be subject to unpredictable weather extremes. A potential annual risk value equivalent to 10% of the annual utilities budget provision is deemed reasonable. This equates to £0.650m. 3.2.2 The estimated level of Council Tax income is based on current and forecast Band D equivalents, and reflects our expected collection rates, based on historical data. A potential annual risk value equivalent to 1% of the annual Council Tax income budget is deemed reasonable. This equates to £0.633m. 3.2.3 In respect of the Health and Social Care Partnership (HSCP), it is the responsibility of the Chief Officer and Chief Financial Officer to manage the HSCP financial position. If an overspend is forecast, a budget recovery plan will be prepared and submitted to the IJB, Argyll and Bute Council and NHS Highland. Where recovery plans are unsuccessful and an overspend occurs at the financial year end, and the HSCP has insufficient reserves to meet the overspend, then the partners will be required to make additional payments to the HSCP. Whilst any additional payments by the council and NHS Highland will be deducted from future years funding, there is a risk that the council may require to make an additional unbudgeted contribution to the HSCP during the year. As at 31 December 2024, the forecast outturn for 2024-25 on Social Work services was an overspend of £2.179m. The Chief Financial Officer of the IJB has now written to the Council to request access to the Strathclyde Pension Fund Gain that is held in reserves for the HSCP and, therefore, it is expected that Social Work will outturn within budget, after applying these reserves. However, there is a risk that the level of overspend will increase beyond the level that can be managed through available reserves. A potential annual risk value of £0.500m is deemed reasonable in this respect. 3.2.4 There is an ongoing requirement to fund unavoidable inflationary cost increases in across a number of areas such as, food and fuel. Inflation has been falling and the Bank of England forecasts that it will continue to fall throughout the year. This position will continue to be closely monitored, with financial forecasts updated to reflect information available on an ongoing basis. A potential annual risk value equivalent to 1% of relevant non-pay annual budgets is deemed reasonable. This equates to £0.800m. 3.2.5 The council wide risks are summarised within the following table. Description Likelihood Assessed Financial Impact £000 Energy costs increase by 10% greater than anticipated 3 650 1% variation in Council Tax Income 2 633
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IJB refer to Council for additional funding to deliver social work services 3 500 1% variation in non-pay inflation 4 800 Total 2,583 Capital 3.2.6 The Local Government Finance Settlement announced on 19 December 2023 provided details of grant funding for 2024-25, proving certainty in respect of General Capital Grant and available specific capital grant funding. 3.2.7 The approved capital plan includes estimated capital receipts from asset sales of £0.750m in 2024-25. This is based on an assessment provided by the Special Projects Team in January 2024. A 10% variation from this estimate equates to £0.075m, which would require to be managed within available resources. 3.2.8 General feedback from Scotland Excel and council project managers indicates that price increases and uncertainty continue to be experienced, as well as disruptions to the supply chain and longer lead times, particularly in relation to the construction sector and material availability. The increased rate of inflation impacts costs such as energy prices, labour, packaging and transport. These all influence the overall contract price and make it extremely challenging to manage the delivery of capital investment projects within available budgets and target delivery timescales. 3.2.9 While it has been possible to estimate the impact of these pressures on some capital projects, and therefore either reflect those projections within the capital monitoring report or adjust the capital programme accordingly, for others it is more difficult, with no adverse forecast outturn projected at this stage. It is, therefore, deemed likely that there will be further significant financial impacts, not yet reported, which may be challenging to manage within existing resources. 3.3 Departmental/Service Risks 3.3.1 The detail of each departmental financial risk is included within Appendix 1. The following table provides a summary of the number of risks within each department, across each likelihood category, together with the potential annual financial impact value. 1 - Remote 2 - Unlikely 3 - Possible 4 - Likely 5 - Almost Certain Total No. £000 No. £000 No. £000 No. £000 No. £000 No. £000 Chief Executive's Unit 0 0 0 0 0 0 0 0 0 0 0 0
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Executive Director Douglas Hendry 2 20 5 460 9 730 3 435 0 0 19 1,645 Executive Director Kirsty Flanagan 4 285 2 140 15 4,373 2 250 0 0 23 5,048 Total 6 305 7 600 24 5,103 5 685 0 0 42 6,693 3.3.2 The current top three risks in terms of the financial impact are noted in the table below. SERVICE RISK TITLE DESCRIPTION LIKELIHOOD FINANCIAL IMPACT £000 Roads and Infrastructure Services Roads Maintenance – Roads, Bridges, Culverts & Sea Defences Extreme localised weather may result in loss of road access, bridges, culverts, road or sea defence. 3 1,500 Roads and Infrastructure Services Waste PPP - Indexation Historical payments made towards Waste PPP based on indexation rates have been challenged by Renewi resulting in a potential cost to the council. 3 586 Financial Services Council Tax Debt Collection Recovery Recovery of debt becomes more difficult to pursue in the current economic climate. This is in relation to historical debt that has accumulated over many years therefore any adverse collection rates will impact on the year end debt provision as opposed to the in-year financial position, hence no forecast variance has been reported within the current year. 3 345 3.3.3 The risks which are likely, are noted below: SERVICE RISK TITLE DESCRIPTION LIKELIHOOD FINANCIAL IMPACT £000
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Council Wide - Commercial Services Council Wide Central Repairs Increased demands on central repair budgets (CRA) due to a decrease in Capital funding, increase in statutory and emergency repairs and increases in supplier/contractor charges. This impacts on all departments of the council with a Central Repairs Budget. 4 300 Development and Economic Growth Homelessness Temporary Accommodation Income Unpredictable number of Homeless applications. Inability to recover rent. Increase costs of property maintenance and tenancy change over. 4 150 Roads and Infrastructure Services Fleet Maintenance Increased costs to maintain internal fleet due to inflationary increases on vehicles parts. 4 100 Legal and Regulatory Support NPDO – Increase in insurance costs within NPDO Schools Increase in insurance costs as a result of the long-term effects of Covid-19 on the insurance market and flood claims. 4 75 Legal and Regulatory Support Elections More than 1 by-election required outwith standard election cycle. 4 60 3.4 Changes to Financial Risks 3.4.1 The number of council wide risks has reduced from 7 to 4 since the previous reporting period, due to confirmation of the 2024-25 pay awards, and progress on the delivery of approved 2024-25 revenue budget savings options. There have been no changes to the departmental risks since last reporting. 3.5 Monitoring of Financial Risks 3.5.1 Financial risks are monitored and reviewed on an ongoing basis, with actions put in place to continue to mitigate or manage these risks. The updated position on financial risks will continue to be regularly reported to committee. 3.6 Future Years’ Risks
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3.6.1 Financial risks impacting 2025-26 and future years will be reported as part of the 2025-26 Budget Pack. 4 CONCLUSION 4.1 This report summarises the known key financial risks facing the council in 2024- 25. There are 5 council wide risks and 42 departmental risks identified, with 5 categorised as ‘Likely’. These risks are monitored and reviewed on an ongoing basis, with actions put in place to continue to manage or mitigate the risks. 5 IMPLICATIONS 5.1 Policy - None. 5.2 Financial - Outlines the potential annual value of financial risks 5.3 Legal - None. 5.4 HR - None. 5.5 Fairer Scotland Duty - None. 5.5.1 Equalities – protected characteristics - None. 5.5.2 Socio-economic Duty - None. 5.5.3 Islands - None. 5.6 Climate Change - None. 5.7 Risk - Provides details of financial risks 5.8 Customer Service - None. 5.9 The Rights of the Child (UNCRC) - None. Kirsty Flanagan Executive Director/Section 95 Officer 17 January 2024 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services APPENDICES Appendix 1 – Departmental/Service Financial Risks For further information contact Carolyn Earl, covering Head of Financial Services Carolyn.Earl@argyll-bute.gov.uk
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APPENDIX 1 DEPARTMENT/SERVICE FINANCIAL RISKS AS AT 31 DECEMBER 2024 DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE LIKELIHOOD FINANCIAL IMPACT £000 LIKELIHOOD FINANCIAL IMPACT £000 Executive Director Douglas Hendry Commercial Services Catering Costs - Provision of Meals to Early Years Children The Children and Young People (Scotland) Act placed duties on Councils to provide meals in an Early Years setting to entitled children where sessions span over lunch time. The total quantum of grant funding is reducing and may not be sufficient to fund the additional costs depending on uptake and the additional costs to support the meal provision in partner provider settings. Joint strategy with procurement colleagues to reduce potential impact of supplier charges. Control food wastage/portion controls. 2 100 2 100 Executive Director Douglas Hendry Commercial Services Catering Purchases Increased supplier charges and higher than average inflation on food costs. In addition to this the Scottish Government reviewed the regulations that govern the food and drinks provided in schools and implemented revised regulations. The revised standards focus on reducing sugar, reducing red processed meat and increasing fibre. Thus far, there has been an increase in costs in produce and a reduction in demand for school meals. Joint strategy with procurement colleagues to reduce potential impact of supplier charges. Control food wastage/portion controls; introduction of online ordering to help manage food waste. Analysis and regular review of menu choices. 2 100 2 100 Executive Director Douglas Hendry Commercial Services Catering - Implementation of Universal Free School Meals in Primary Schools for P6 and P7 pupils The Scottish Government may not give the local authority adequate funds to support the policy to expand free school meals in primary schools to include P6 and P7 pupils (the scheme has already been implemented for P1 to P5 pupils). Additionally, In 2023-24 Special Schools and Learning Centres received FSM to S6 Level. Although expansion paused for full implementation for P6&7, FSM will be expanded through entitlement to Scottish Child Payment and will be implemented in February 2025. Senior Manager connected into the ASSIST FM Committee and will continue to ensure the Council's viewpoint will be considered. 0 0 Executive Director Douglas Hendry Commercial Services Rental Income from Properties Due to current economic climate, there may be reduced ability to recover rental income from leased properties or place suitable tenants in properties as leases come to an end. Management of leasehold properties by Estates team, any issues with debt recovery being dealt with in line with Council debt recovery policy. 2 60 2 60 Executive Director Douglas Hendry Commercial Services Surplus Properties Ongoing market difficulties lead to increased numbers of surplus properties, in addition, as Our Modern Workspace Project gains traction more properties will become surplus to operational requirements. There are residual running costs associated with all surplus properties. One Council property team in place who will monitor market conditions and work with prospective tenants/ purchasers to let/sell surplus properties. 3 50 3 50 Executive Director Douglas Hendry Commercial Services Leisure Service Level Agreements Increase in RPI and/or other running costs (eg utilities, payroll etc) resulting in requests for additional funding. Monitoring annual alteration to contract RPI rate, communication with service providers and mitigation through financial forecasting and review of existing budget. 3 50 3 50 Executive Director Douglas Hendry Council Wide - Commercial Services Council Wide Central Repairs Increased demands on central repair budgets (CRA) due to a decrease in Capital funding, increase in statutory and emergency repairs and increases in supplier/contractor charges. This impacts on all departments of the Council with a Central Repairs Budget. Joint strategy with procurement colleagues to reduce potential impact of supplier/contractor charges. Close monitoring of central repairs budgets and commitments and instructing only statutory tests/inspections and essential repairs. 4 300 4 300 As at 31 October 2024 As at 31 December 2024
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DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE LIKELIHOOD FINANCIAL IMPACT £000 LIKELIHOOD FINANCIAL IMPACT £000 Executive Director Douglas Hendry Education ASN Support Demand for ASN support continues to increase. Scottish Government statistics suggest a 3% year on year increase, resulting in an additional resource requirement. Particularly where gaps in our enhanced provision exist. The medium- term detriments on the development of young children which occurred as a consequence of service closures during the COVID pandemic have increased demands on the service as children require additional support to catch up. The Additional Support for Learning National Implementation plan continues to inform our strategic direction in line with the Angela Morgan Review. Service is currently looking at alternative options for service delivery to mitigate the inescapable pressures. Continuing to ensure robust assessment of needs, monthly monitoring of budget, any delays in recruitment factored into projections to enable informed decision making on allocation of funding for new/amended /additional support packages. Following a full ASN review, the service are currently investing in the development of four new learning centres in order to provide greater equity in meeting the more complex needs of some learners as well as considering plans to develop enhanced wellbeing resources across our learning estate in future. This aims to reduce the frequency of children having to be educated in high cost out of area placements. 3 200 3 200 Executive Director Douglas Hendry Education Pre-Five Units - retention of partner providers Failure in the commissioning or retention of pre-five partner provider units to deliver 1140 hours would result in an increased pressure on the Council to deliver the service. Annual financial appraisal; Support network; Short-term cash injections. 3 100 3 100 Executive Director Douglas Hendry Education Legislative Requirements - Children and Young People (Scotland) Act - ELC 1140 hours The Council has been required to deliver 1140 hours of Early Learning and Childcare since August 2021. The Scottish Government has committed to funding this and the Council has revised its service model to align it to the Scottish Government's reduced funding profile. A risk remains that actual costs of delivery exceed the Government Grant in any given year. For example, if child numbers are higher than estimated, this may require additional staffing which has not been built included in the staffing model funded by Scottish Government. Scottish Government has included within scope for this parliamentary session plans to further expand on eligibility for 1140 hours to all 2 year olds and some one year olds. As yet there has been no funding commitment. However this will place unknown cost pressures on both our capital and revenue budgets Continuous monitoring and review of the service model, usage and resources. 3 100 3 100 Executive Director Douglas Hendry Education Legislative Requirements - Education (Scotland) Act The Education (Scotland) Act 2000 requires Councils to undertake assessments of the need for the provision of Gaelic Medium Primary Education (GMPE) and the duty to support and promote Gaelic Education. This may lead to additional staffing requirements depending upon the demand for Gaelic from parents. Continuous monitoring and review of the service model and resources available within budget. 3 50 3 50 Executive Director Douglas Hendry Legal and Regulatory Support Hub DBDA/DBFM Schools - Litigation Increased risk of the requirement to litigate to conclude final capital contract payments due. Monitoring claims and mitigation through robust challenge of any additional claims. 2 150 2 150 Executive Director Douglas Hendry Legal and Regulatory Support Contract RPI for NPDO and Hub Schools Increase in RPI would result in higher costs. Monitoring annual alteration to contract RPI rate and mitigation through financial forecasting and review of existing budget. 3 100 3 100
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DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE LIKELIHOOD FINANCIAL IMPACT £000 LIKELIHOOD FINANCIAL IMPACT £000 Executive Director Douglas Hendry Legal and Regulatory Support NPDO - Increase in insurance costs within NPDO Schools Increase in insurance costs as a result of the long-term effects of Covid-19 on the insurance market and flood claims. Monitoring annual alteration to contract insurance rate and mitigation through financial forecasting and review of existing budget. 4 75 4 75 Executive Director Douglas Hendry Legal and Regulatory Support Elections More than 1 by-election required outwith standard election cycle. Outwith direct management control. 4 60 4 60 Executive Director Douglas Hendry Legal and Regulatory Support Legal Services - Litigation Increased number of litigation cases. Ensure Legal Services are gateway to access all legal advice and that advice is sought at earliest opportunity. 3 50 3 50 Executive Director Douglas Hendry Legal and Regulatory Support NPDO/Hub DBFM contract management efficiencies Reduction in ability to generate contract management efficiencies. Monitoring annual efficiencies generated and mitigation through robust contract management and application of contract specifications / requirements. 2 50 2 50 Executive Director Douglas Hendry Legal and Regulatory Support Licensing Reduced numbers of licensing applications leading to reduced income. Monitoring of trends and reporting the financial impact in the budget monitoring. 3 30 3 30 Executive Director Douglas Hendry Legal and Regulatory Support Children's Panel Increased number of referrals increasing costs through increases in the running costs. Maximise the use of council facilities/resources for panel session in the first instance. 1 10 1 10 Executive Director Douglas Hendry Legal and Regulatory Support Legal Services Failure to minimise Council wide use of external legal advice. Ensure legal services are gateway to access all legal advice. 1 10 1 10 Executive Director Kirsty Flanagan Customer Support Services Software Licences Potential risk of being under licensed for software which will be identified via software audits which would incur additional costs. ICT security and compliance officer in post and duties include review of systems to ensure fully licenced. 2 100 2 100 Executive Director Kirsty Flanagan Customer Support Services Additional Bandwidth for Education Additional costs required to be incurred in relation to additional bandwidth required to deliver the Education Digital Strategy due to a more digitalised learning curriculum. Work closely with Education on Digital Devices for All strategy to ensure necessary IT is in place. 3 50 3 50 Executive Director Kirsty Flanagan Development and Economic Growth Homelessness Temporary Accommodation Income Unpredictable number of Homeless applications. Inability to recover rent. Increase costs of property maintenance and tenancy change over. Provision of Housing Options information and advice service to minimise number of applicants proceeding to full homeless application. Implementation of Rapid Rehousing Plan. 4 150 4 150 Executive Director Kirsty Flanagan Development and Economic Growth Dangerous Buildings interventions Building Standards having to deal with an increasing level of dangerous building work which has significant financial implications for Council. Monitor activity and seek to recover costs from the owner. 3 100 3 100 Executive Director Kirsty Flanagan Development and Economic Growth Planning Fee Penalties Potential that the Scottish Government may sanction penalties due to poor performance by the Planning Authority. The Scottish Government has recently appointed a national Planning Performance Champion however the detail of how this role intends to incentivise improvement/penalise poor performance at a local authority level remains unclear at this time Maintain high levels of performance as articulated by performance markers detailed in Planning Performance Framework annual report. 1 100 1 100 Executive Director Kirsty Flanagan Development and Economic Growth Planning fee shortfalls Due to downturn in economic / building activity, in particular renewable energy development and other major developments could lead to planning fee income shortfalls leading to revenue budget pressures. Current income levels are looking more positive, however, we are dependent on some high value applications coming in which, if they don't materialise, will impact the overall position. Will continue to monitor Development Management income and expenditure tightly and investigate further income generation streams. 3 100 3 100 Executive Director Kirsty Flanagan Development and Economic Growth Building Warrant fee shortfalls Due to loss of commercial income and downturn in economic / building activity, building warrant fee income shortfalls leading to revenue budget pressures. Continue to monitor Building Standards income and expenditure tightly and investigate further income generation streams. 1 50 1 50
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DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE LIKELIHOOD FINANCIAL IMPACT £000 LIKELIHOOD FINANCIAL IMPACT £000 Executive Director Kirsty Flanagan Development and Economic Growth Environmental Health- export certificates Downturn in requests for export certificates as a result of UK withdrawal from EU, changes to international trading agreements or business economy. Reduction in demand creates a budget pressure on environmental health budget. Monitor income and resources required for export health certificates / attestations required to support the export market. Continue with food safety regulation activities associated and support at 3rd country audits. Pursue debt rigorously with key customers through seeking regular payments. 2 40 2 40 Executive Director Kirsty Flanagan Development and Economic Growth Animal Health Carrying out livestock seizure to protect welfare of the animals Monitor activity and seek to recover costs from the disposal of the animals. 1 10 1 10 Executive Director Kirsty Flanagan Financial Services Council Tax Debt Collection Recovery Recovery of debt becomes more difficult to pursue in the current economic climate. This is in relation to historical debt that has accumulated over many years therefore any adverse collection rates will impact on the year end debt provision as opposed to the in-year financial position, hence no forecast variance has been reported within the current year. Robust monitoring of arrangements with debt collection agency and performance against target collection rates. 3 345 3 345 Executive Director Kirsty Flanagan Financial Services NDR Aleo Baseline Scottish Government are going to undertake a review the current Arms Length External Organisations (ALEO) baseline for 2024-25 which could increase the pressure on the balance of costs vs relief. Outwith direct management control. 3 316 3 316 Executive Director Kirsty Flanagan Financial Services Housing Benefit Subsidy Loss of Housing Benefit Subsidy due to exceeding LA error threshold. Processes in place for handling of claims accurately and efficiently. 1 125 1 125 Executive Director Kirsty Flanagan Financial Services Sundry Debt Recovery Recovery of debt becomes more difficult to pursue in the current economic climate. Additional staff are being put in place in the Sundry Debt Team who will work jointly with Legal Services to enhance the robustness of the Council's debt recovery processes. 3 85 3 85 Executive Director Kirsty Flanagan Roads and Infrastructure Services Roads Maintenance - Roads, Bridges, Culverts & Sea Defences Extreme localised weather may result in loss of road access, bridges, culverts, road or sea defence. Routine inspections to deal with potential weak areas - based on a stitch in time repair regime. 3 1,500 3 1,500 Executive Director Kirsty Flanagan Roads and Infrastructure Services Waste PPP - Indexation Historical payments made towards Waste PPP based on indexation rates have been challenged by Renewi resulting in a potential cost to the council. Conversations are in place between Council and Renewi with the aim of minimising the potential impact. 3 586 3 586 Executive Director Kirsty Flanagan Roads and Infrastructure Services Roads Maintenance - Roads Network Adverse weather conditions result in deterioration of the road network necessitating greater spend on repair of defects. Manage maintenance budgets to ensure that spend is prioritised to deal with safety defects. 3 230 3 230 Executive Director Kirsty Flanagan Roads and Infrastructure Services Car Parking Income Reduced number of visitors to the area and use of council owned car parks resulting in a reduction in income. Closely monitor income levels throughout the year, especially in high visitor seasons. 3 200 3 200 Executive Director Kirsty Flanagan Roads and Infrastructure Services Piers & Harbours Income Changes to ferry services resulting in reduced berthing and passenger income. Closely monitor passenger number information coming from CalMac to identify any emerging trends with reducing passenger numbers. 3 200 3 200 Executive Director Kirsty Flanagan Roads and Infrastructure Services Waste - Compost Like Output (CLO) Compost Like Output is an element of waste that has been heat treated and can only be used for landfill site restoration. Renewi are currently producing more CLO than we need and it is building up in our landfill sites - this has been flagged up as a concern by SEPA and will need to be removed. Discussions ongoing with Renewi and the Council on steps forward and what element the council is responsible for. 3 311 3 311 Executive Director Kirsty Flanagan Roads and Infrastructure Services Winter Maintenance Adverse weather conditions which require greater than budgeted number of gritting runs. Monitor weather conditions and apply gritting policy to minimise costs. 3 150 3 150
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DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE LIKELIHOOD FINANCIAL IMPACT £000 LIKELIHOOD FINANCIAL IMPACT £000 Executive Director Kirsty Flanagan Roads and Infrastructure Services Street Lighting Age of lighting stock requires greater maintenance as health and safety becomes a consideration. Manage maintenance budgets to ensure that spend is prioritised to deal with safety defects. 3 100 3 100 Executive Director Kirsty Flanagan Roads and Infrastructure Services Ferry Services Grant from Transport Scotland covers the cost of running the ferry services within Argyll and Bute which has not been increased for 2024-25 which could result in additional costs for the Council to fund the Ferry services. Closely monitoring financial position throughout the year to highlight any potential pressures. Discussions will continue to take place with Transport Scotland on an annual basis to request additional funding that is required for that year. 3 100 3 100 Executive Director Kirsty Flanagan Roads and Infrastructure Services Fleet Maintenance Increased costs to maintain internal fleet due to inflationary increases on vehicle parts. Review of Fleet underway to determine where reductions could possibly be made. 4 100 4 100 42 6,693 42 6,693
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCE COMMITTEE FINANCIAL SERVICES 20 FEBRUARY 2025 CAPITAL BUDGET MONITORING REPORT – 31 DECEMBER 2024 1.0 EXECUTIVE SUMMARY 1.1 1.2 This report provides an update on financial performance and the delivery of capital projects against the approved Capital Plan budget resources and timescales as at 31 December 2024. A number of budget changes are proposed to reflect additional funding, the re- profiling of expenditure and income across years, and to manage delivery of the Capital Plan within available resources. 1.3 Financial Position: • 2024-25 Forecast Outturn – Forecast net expenditure for the financial year is £29.333m, compared to a profiled annual budget of £37.615m, giving rise to a forecast underspend for the year of £8.282m (22.02%). Actual net expenditure of £23.679m has been incurred in the year to date, representing 81% of the net expenditure forecast for the year. • Total Capital Plan Forecast Outturn – Forecast outturn net expenditure on the total Capital Plan is £203.116m, compared to a budget of £202.999m, giving rise to a forecast overspend for the overall Capital Plan of £0.117m (0.06%). 1.4 Capital Plan Delivery: • Asset Sustainability – Of the 87 projects, there are currently 78 projects (90%) on track, 6 projects (7%) off track but recoverable and 3 projects (3%) off track. • Service Development - Of the 43 projects, there are currently 41 projects (95%) on track, 1 project (2%) off track but recoverable and 1 project (2%) off track. • Strategic Change – Of the 23 projects, there are currently 20 projects (87%) on track and 3 projects (13%) off track. 1.5 A number of known risks, specifically related to the delivery of the Capital Plan, are documented within this report. These risks may impact the delivery of the plan within available resources and target timescales. The monitoring and review of risks will continue to be undertaken on an ongoing basis.
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCE COMMITTEE FINANCIAL SERVICES 20 FEBRUARY 2025 CAPITAL BUDGET MONITORING REPORT – 31 DECEMBER 2024 2.0 INTRODUCTION 2.1 2.2 This monitoring report provides an update on financial performance and the delivery of capital projects against the approved Capital Plan budget resources and timescales as at 31 December 2024. It compares the forecast outturn for both the current year and the total plan across all years, with the approved budget for each service and provides a profile of the probable outturn over the years. Details of actual expenditure incurred during 2024-25 to date are also provided. 3.0 RECOMMENDATIONS 3.1 4.0 4.1 4.2 4.3 It is recommended that the Policy and Resources Committee note the contents of this report and approve the proposed changes to the Capital Plan, as detailed within Appendix 1. BUDGET CHANGES Previously Approved Budget Changes Following the decision at Policy and Resources Committee on 9 December 2021, the Rothesay Pavilion project was put on pause, whilst potential funding options were being considered. At the budget meeting in February 2023, additional funding was allocated to this project, which will allow the project to progress towards successful delivery, by supporting completion of certain work stages. Further funding was allocated at the budget meeting in February 2024 for stages 2 and 3 to complete the project. The financial information included within this report now includes amounts relating to Phase 1, 2 and 3 of the Rothesay Pavilion project. Surveys have been completed in the council’s Learning Estates in relation to RAAC, with only 1 building confirmed as having it present, with steps underway for its removal. This will include a decant of the students for approximately 9 months, in addition to total removal and replacement of the roof during 2024. Funding of £3m was allocated as part of the 2024-25 budget setting process. Further, additional funding of £0.406m has been allocated via the Capital Contract Increase Fund to meet the now increased contract costs. These spending commitments are reflected within the Capital Plan. The council’s funding bid to the Scottish Government’s Learning Estate Investment Programme (LEIP) for a new school campus on Mull was successful. At its meeting in April 2024, Council agreed to commence the Business Case, undertake engagement, commence site selection processes and establish governance arrangements. The current Capital Plan does not provide for the potential delivery of a new school, beyond this early planning stage. Any future spending commitments and funding frameworks in this respect will be subject to Council approval and will be built into the Capital Plan at that point.
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4.4 4.5 4.6 Proposed Budget Changes The table below shows proposed changes to Capital Plan gross expenditure, at summary level, which include slippages, accelerations and virements. More detailed explanations at specific project level are provided within Appendix 1. Department Previously Agreed Changes 2024-25 2024-25 2025-26 2026-27 Future Years Total Capital Plan £’000 £’000 £’000 £’000 £’000 £’000 Asset Sustainability 587 (906) 774 132 0 0 Service Development 3,144 (60) 60 0 0 0 Strategic Change (1,119) (7,400) 3,156 4,244 0 0 Total 2,612 (8,366) 3,990 4,376 0 0 Service: ICT 0 (192) 60 132 0 0 Education 520 0 0 0 0 0 Live Argyll 0 0 0 0 0 0 Health & Social Care Partnership (249) (363) 363 0 0 0 Shared Offices (815) (256) 256 0 0 0 Roads & Infrastructure 3,144 (6,811) 2,567 4,244 0 0 Development & Economic Growth 12 0 0 0 0 0 Major Projects 0 (744) 744 0 0 0 Total 2,612 (8,366) 3,990 4,376 0 0 The updated Capital Plan gross expenditure, incorporating these proposed changes, is given is given within Appendix 2. The Capital Plan has various sources of funding, as detailed in Appendix 3. Since last reporting, additional funding has been recognised in respect of Crown Estates Funding for East Clyde Street and the Harbour Investment Programme (debt financing costs to be funded from additional revenue income, over the life of the project - Prudential Borrowing) and allocation of Inward Investment funding to Rural Growth Deal projects. Various funding streams have also been added to the Rothesay Pavilion Project: Council Reserves, Heritage Lottery Fund, Historic Environment Scotland, Highlands and Islands Enterprises and Rural Growth Deal.
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5.0 SUMMARY FINANCIAL POSITION Forecast Outturn 2024-25 5.1 5.2 Forecast net expenditure for the full financial year is £29.3334m, compared to a profiled annual budget of £37.615m, giving rise to a forecast underspend for the year of £8.282m (22.02%). Actual net expenditure of £23.679m has been incurred in the year to date, representing 81% of the net expenditure forecast for the year. The table below provides details of the actual net expenditure incurred in the year to date, and provides a comparison of the forecast net expenditure with the profiled budget for the year, by project type and across services. There are a number of smaller variances, individually less than £50k, contributing to the total variance, while material variances are explained in Appendix 4. Project Type: Profiled Annual Budget £'000 Actual Year To Date £'000 Forecast Outturn £'000 Variance £'000 Asset Sustainability 26,937 17,916 26,078 859 Service Development 6,613 1,430 6,590 23 Strategic Change 4,065 4,333 (3,335) 7,400 Total 37,615 23,679 29,333 8,282 Service: ICT 1,611 954 1,419 192 Education 8,565 5,785 8,565 0 Live Argyll 1,125 931 1,125 0 Health & Social Care Partnership 2,086 2,216 1,723 363 Shared Offices 1,408 319 1,152 256 Roads & Infrastructure 20,168 9,795 13,441 6,727 Development & Economic Growth 2,892 607 2,892 0 CHORD (240) 3,072 (984) 744 Total 37,615 23,679 29,333 8,282
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5.3 5.4 Forecast Outturn – Total Capital Plan The forecast outturn net expenditure on the total Capital Plan is £203.116m, compared to a budget of £202.999m, giving rise to a forecast overspend for the overall Capital Plan of £0.117m (0.06%). The table below shows the forecast net expenditure and budget for the Capital Plan by project type and service. The table below provides a comparison of the forecast net expenditure with the total Capital Plan budget, by project type and across services. The variance comprises a number of variances across specific projects, individually less than £50k. 5.5 5.6 Project Type: Capital Plan Budget £'000 Forecast Outturn £'000 Variance £'000 Asset Sustainability 52,814 52,928 (114) Service Development 28,816 28,793 23 Strategic Change 121,369 121,395 (26) Total 194,140 194,257 (117) Service: ICT 5,934 5,934 0 Education 44,166 44,166 0 Live Argyll 3,037 3,037 0 Health & Social Care Partnership 3,936 3,936 0 Shared Offices 18,393 18,393 0 Roads & Infrastructure 61,256 61,347 (91) Development & Economic Growth 7,449 7,449 0 CHORD 58,828 58,828 (26) Total 202,999 203,116 (117) Strategic Change Projects Detailed information in respect of the Strategic Change Projects within the Capital Plan is provided within Appendix 5. For each project, this gives details of the forecast cost against the approved budget; the start and anticipated completion date; and an assessment of risk, using a RAG status. Where the RAG status of a project is not Green, an explanation is provided. Summary Capital Plan Monitoring – Net Expenditure Details of the council’s financial performance in respect the approved Capital Plan net expenditure are outlined within Appendix 6. This provides information for each Executive Directorate and at a total council level.
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6.0 CAPITAL PLAN DELIVERY 6.1 There are a total of 153 projects within the overall Capital Plan. Of this total, 139 are Complete or On Target, 7 are Off Target and Recoverable and 7 are Off Track and experiencing Problems. 6.2 The table below provides a summary of the delivery status of the projects within the Capital Plan by project type and across services. Project Delivery Status Summary Table Project Type: Complete/ On Target Off Target/ Recoverable Off Track/ Problem Total Asset Sustainability 78 6 3 87 Service Development 41 1 1 43 Strategic Change 20 0 3 23 Total 139 7 7 153 Service: ICT 3 0 1 4 Education 27 0 0 27 Live Argyll 16 0 0 16 Health & Social Care Partnership 18 0 2 20 Shared Offices 19 0 1 20 Roads & Infrastructure 33 7 2 42 Development & Economic Growth 18 0 0 18 CHORD 5 0 1 6 Total 139 7 7 153
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6.3 The above summary is also provided in graphical form, as presented below. Project Delivery Status Summary Graph 0 10 20 30 40 50 60 70 80 90 100 Asset Sustainability Service Development Strategic Change Off Target/ Problem Off Target/ Recoverable Complete/ On Target
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6.4 Details of the projects currently designated as ‘Off Track’ are summarised in the table below. Off Track Projects Summary Table Project Type Project Title What is Off Track? Explanation CustSupp - Service Development Applications Projects Current Year Expenditure Slippage from 2024-25 into 2025-26. Budget not required for current year projects. Slipped and vired to Block Allocation to contribute towards 2025-26 Red Risks. PropNonEdu - Asset Sust - HSCP Struan Lodge Current Year Expenditure Slippage into 2025-26. Project which was planned to commence and finish in 2024-25 is now forecast to start in March 2025. PropNonEdu - Asset Sust - HSCP Tigh An Rudha HFE Current Year Expenditure Accelerate into 2024-25 from 2025-26. Block allocation accelerated from 2025-26. RIS - Asset Sustainability Bute Sea Wall Repairs Current Year Expenditure Slippage into 2025-26. Portion of costs falling out of 2024-25 due to works forecast to start in Q4 of 2024-25. RIS - Strategic Change Harbour Investment Programme Current Year Expenditure Slippage from 2024-25 into 2025-26. Commencement of Iona Breakwater construction was delayed, less of the forecasted costs will fall within 2024-25 and has slipped into 2025-26. Shrd-Off - Strategic Change Net Zero Current Year Expenditure Slippage from 2024-25 into 2025-26. Projects now identified and expenditure will take place in 2025-26. CHORD Kilmory Business Park Phase 2AA Current Year Expenditure Slippage from 2024-25 into 2025-26. Cost plan now received from contractor with agreed monthly cashflow projection allowing for accurate budget forecasting which was not possible while awaiting this agreement.
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7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 CAPITAL PLAN RISKS The council’s funding bid to the Scottish Government’s Learning Estate Investment Programme (LEIP) for a new school campus on Mull was successful. While this is good news and will provide welcome investment in the school estate, it will not meet the full cost of the project. The funding gap requires to be met by the council and presents a financial pressure. The Scottish Government will fund up to 50% of eligible costs, with the balance of circa. £20m to be funded by the council. A £1m cost pressure was identified during 2021-22 in relation to repairs to the A884 Ardbeg Sea Wall, where severe storm damage resulted in failure of the sea wall on Bute. Emergency works were carried out and a permanent solution is currently being developed. Additional funding of £1m was allocated for this purpose at the Council meeting on 24 February 2022, however, there remains a risk that costs will exceed this. A feasibility study is currently underway to progress the permanent works and estimated costs and a further report on this will be presented in due course. The impact of the pandemic, the UK exit from the European Union, the Russian invasion of Ukraine and sanctions on Russian owned entities has seen significant price increases as well as disruptions to the supply chain and longer lead in times. The increased rate of inflation impacts costs such as energy prices, labour, packaging and transport. These all have an effect on the overall contract price and make it extremely challenging to manage expenditure and the availability of supply. As a result of this it should be noted that there are likely to be other significant financial impacts which are not quantifiable at this stage, as follows: • Harbour Investment Programme – likely to be contractual cost increases in future years (expected to be funded from increased fees and charges). • In general, capital contracts across the programme are seeing significant price increases. Although the direct impact of COVID on most local services has reduced, or even ceased altogether over the last 12 months, COVID-19 in conjunction with the UK exit from the European Union and the Russian invasion of Ukraine, continues to affect worldwide supply chains. In recent years additional funding of £11.100m has been allocated to the capital programme to deal with these cost pressures, which has mitigated the impact to date. However, as detailed in the table below, this has now been fully allocated or committed to projects facing inflationary pressures. There remains a financial risk in respect of projects, where contracts have yet to be entered into. Funding for Capital Inflationary Pressures £m COVID-19 Funding 0.257 February 2021 Budget Meeting - Capital Cost Pressures 4.646 February 2022 Budget Meeting - Capital Cost Pressures 3.900 February 2023 Budget Meeting – Capital Projects Inflation Pressures 2.000 February 2024 Budget Meeting - Capital Cost Project Protection 0.297 Total Additional Funding Allocated to Capital 11.100 Allocated to Projects within Capital Programme (5.779) Committed for future years (5.202) Balance Remaining 0.000 The approved Capital Plan includes an assumed level of capital receipts from asset sales. It is currently anticipated that the target of £0.750m for the current financial year will be achieved. However, this is subject to changing market conditions. The level of receipts that may
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reasonably be achieved will be kept under review, to reflect changing market conditions and due diligence undertaken on asset condition. 8.0 IMPLICATIONS 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 Policy – Monitors progress against the Capital Plan. Financial – Monitors financial performance on delivery of the Capital Plan. Legal – Highlights where available funding may not address all Statutory and Regulatory requirements in relation to Health and Safety. HR – Available funding may have an impact on the sustainability of the Property Design Team and Infrastructure Design Team. Fairer Scotland Duty – None. 8.5.1 Equalities – protected characteristics – None. 8.5.2 Socio-economic Duty – None. 8.5.3 Islands – None. Climate Change – The Council is committed to addressing climate change via delivery of projects within the Capital Plan. Risk – There are risks to the delivery of the Capital Plan within available resources and delivery timescales and these continue to be monitored and reviewed, as outlined in the report. Customer Service – None. The Rights of the Child (UNCRC) - None. Kirsty Flanagan Executive Director / Section 95 Officer 13 February 2025 Policy Lead for Finance and Commercial Services – Councillor Ross Moreland APPENDICES: Appendix 1 – Proposed Capital Plan Changes Appendix 2 – Updated/Revised Capital Plan Appendix 3 – Capital Funding Appendix 4 – Forecast Outturn budget variance explanations Appendix 5 – Strategic Change Projects Appendix 6 - Summary Net Expenditure Monitoring (Overall and at Executive Director level) For further information contact: Carolyn Earl, Acting Head of Financial Services carolyn.earl@argyll-bute.gov.uk
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APPENDIX 1 – Changes to Capital Plan and Financial Impact OVERALL COST CHANGES Project 2024-25 £’000 2025-26 £’000 2026-27 £’000 Future Years £’000 Total Capital Plan £’000 Recommendation Explanation Total Cost Changes 0 0 0 0 0 SLIPPAGES AND ACCELERATIONS Project 2024- 25 £’000 2025- 26 £’000 2026- 27 £’000 Future Years £’000 Total Capital Plan £’000 Recommendation Explanation ICT Block Allocations (132) 132 Slip budget from 2024-25 into 2026-27 Slippage into 2026-27. Correct block allocation forecasting in line with PIP. No changes in spending plan but correction to capital monitoring. Applications Projects (60) 60 0 Slip budget from 2024-25 into 2025-26 Slippage into 2025-26. Budget not required for delivery of 2024-25 Application Projects. Vired into ICT Block Allocation to contribute towards identified red risks for 2025-26. Struan Lodge (566) 566 Slip budget from 2024-25 into 2025-26 Slippage into 2025-26. Project which was planned to commence and finish in 2024-25 is now forecast to start in March 2025. Tigh An Rudha HFE 203 (203) Accelerate budget from 2025-26 into 2024-25. Accelerate into 2024-25 from 2025-26. Block allocation accelerated from 2025-26. Bute Sea Wall Repairs (359) 359 0 Slip budget from 2024-25 into 2025-26 Slippage into 2025-26. Portion of costs falling out of 2024-25 due to works forecast to start in Q4 of 2024-25. Local Bridge Maintenance Fund (17) 17 0 Slip budget from 2024-25 into 2025-26 Minor slippage after reviewing monthly profile split. Claonaig Slip (30) 30 0 Slip budget from 2024-25 into 2025-26 Minor slippage after reviewing monthly profile split. Harbour Investment Programme PB (6,400) 2,156 4,244 0 Slip Budget from 2024-25 into future years. Delays in Iona Breakwater commencing. Marine Licence was not received in Q1/Q2 as anticipated. Marine Licence now received though costs slipping out of 2024-25 due to these delays.
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Net Zero (256) 256 Slip budget from 2024-25 into 2025-26 Slippage from 2024-25 into 2025-26. Projects now identified and expenditure will take place in 2025-26. Kilmory Business Park Phase 2AA (744) 744 Slip budget from 2024-25 into 2025-26 Slippage from 2024-25 into 2025-26. Cost plan now received from contractor with agreed monthly cashflow projection allowing for accurate budget forecasting which was not possible while awaiting this agreement. Total Slippages and Accelerations (8,361) 3,985 4,376 0 0 Net Impact of Changes (8,361) 3,985 4,376 0 0
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CAPITAL PLAN 2024-25 APPENDIX 2 Overall Summary Service Previous Years £000s 2024-25 £000s 2025-26 £000s 2026-27 £000s 2027-28 £000s Total £000s Education 38,545 8,690 2,946 1,988 0 52,169 Shared Offices 13,242 1,529 3,681 667 0 19,119 ICT 2,851 1,419 1,281 820 0 6,371 RIS 38,918 40,516 48,474 39,110 30,000 212,813 DEG 19,251 7,057 941 0 0 27,249 HSCP 1,246 3,164 2,084 0 0 6,494 Live Argyll 1,275 1,125 169 468 0 3,037 CHORD 65,713 4,324 10,857 10,000 0 90,894 Overall Total 181,041 67,824 70,433 53,053 30,000 418,146
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CAPITAL PLAN 2024-25 APPENDIX 2 Education Category Service Project Previous Years £000s 2024-25 £000s 2025-26 £000s 2026-27 £000s 2027-28 £000s Total £000s Asset Sustainability Education Block Allocation - Education 0 278 0 1,988 0 2,266 Digital Inclusion 20-21 0 9 0 0 0 9 Free School Meals 0 0 434 0 0 434 Pre-5's/Nurseries 0 0 0 0 0 0 Preliminary RAAC Investigation 0 3,200 1,006 0 0 4,206 Primary Schools 0 3,013 1,280 0 0 4,293 Secondary Schools 0 1,086 226 0 0 1,312 Asset Sustainability Total 0 7,586 2,946 1,988 0 12,520 Service Development Education Bowmore Primary School - Gaelic Medium Grant 0 38 0 0 0 38 Bowmore Primary School - Pre Five Unit 149 0 0 0 0 149 Clyde Cottage - 600 hours provision 556 0 0 0 0 556 CO2 Monitoring - Covid Mitigation in Schools 79 113 0 0 0 192 Craignish Primary School - Pre Five Extension (600 hours funding) 400 0 0 0 0 400 Early Learning and Childcare 850 0 0 0 0 850 Early Learning and Childcare - 1140 Hours 7,774 243 0 0 0 8,017 Early Learning and Childcare - 1140 Hours - CFCR 1,379 0 0 0 0 1,379 Iona Primary School - Pre Five Unit (600 hours funding) 490 0 0 0 0 490 Islay High & Rosneath PS Pitches 719 0 0 0 0 719 Sandbank Gaelic Pre Five Unit 491 0 0 0 0 491 Service Development Total 12,887 394 0 0 0 13,281 Strategic Change Education Campbeltown Schools Redevelopment 2,092 38 0 0 0 2,130 Dunoon Primary School 10,637 232 0 0 0 10,869 Kirn Primary School 10,085 34 0 0 0 10,119 Replacement of Oban High School 2,844 406 0 0 0 3,250 Strategic Change Total 25,658 710 0 0 0 26,368 Overall Total 38,545 8,690 2,946 1,988 0 52,169
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CAPITAL PLAN 2024-25 APPENDIX 2 Shared Office Category Service Project Previous Years £000s 2024-25 £000s 2025-26 £000s 2026-27 £000s 2027-28 £000s Total £000s Asset Sustainability Shared Offices 52 Sinclair Street Flats - CFCR 0 0 0 0 0 0 Block Allocation 0 259 427 382 0 1,068 Burnett Building 0 107 0 0 0 107 Helensburgh and Lomond Civic Centre 0 178 0 0 0 178 Kilmory Castle 0 0 1,545 0 0 1,545 Legionella Control Works 0 12 0 0 0 12 Our Modern Workspace 0 542 0 0 0 542 Asset Sustainability Total 0 1,104 2,362 382 0 3,848 Strategic Change Shared Offices Campbeltown Office Rationalisation 595 1 0 0 0 596 Clean Energy - NDEEF1 1,109 124 208 0 0 1,441 Clean Energy - NDEEF2 0 0 855 285 0 1,140 Helensburgh Office Rationalisation (FPB,REC) 11,538 300 0 0 0 11,838 Net Zero 0 0 256 0 0 256 Strategic Change Total 13,242 425 1,319 285 0 15,271 Overall Total 13,242 1,529 3,681 667 0 19,119
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CAPITAL PLAN 2024-25 APPENDIX 2 ICT Category Service Project Previous Years £000s 2024-25 £000s 2025-26 £000s 2026-27 £000s 2027-28 £000s Total £000s Asset Sustainability ICT Block Allocation - ICT 0 0 0 820 0 820 PC Replacement 0 561 669 0 0 1,230 Server Sustainability 0 488 400 0 0 888 Telecomms Network 0 88 152 0 0 240 Asset Sustainability Total 0 1,137 1,221 820 0 3,178 Service Development ICT Applications Projects 2,851 282 60 0 0 3,193 Service Development Total 2,851 282 60 0 0 3,193 Overall Total 2,851 1,419 1,281 820 0 6,371
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CAPITAL PLAN 2024-25 APPENDIX 2 Roads and Infrastructure Services Category Service Project Previous Years £000s 2024-25 £000s 2025-26 £000s 2026-27 £000s 2027-28 £000s Total £000s Asset Sustainability RIS Block Allocation 0 0 -222 3,823 0 3,601 Bridge Strengthening 0 136 1,498 0 0 1,634 Bute Sea Wall Repairs 0 274 359 0 0 633 Claonaig Landslip 0 1,570 30 0 0 1,600 Coastal Change Adaptation 0 255 299 0 0 554 Coastal Protection 0 196 500 0 0 696 Environmental Projects 0 721 100 0 0 821 EV Quick Chargers 0 52 0 0 0 52 Flood Prevention 0 1,197 500 0 0 1,697 Footway Improvements 0 219 0 0 0 219 Gartbreck - Capping 0 194 0 0 0 194 Glengorm - Cell and Transfer Station (PB) 0 249 0 0 0 249 Helensburgh CHORD - Signage etc 0 10 0 0 0 10 Helensburgh Flood Mitigation 0 0 427 0 0 427 Investment in Active Travel 0 200 0 0 0 200 Lighting 0 325 369 0 0 694 Local Bridge Maintenance Fund 0 213 4,777 0 0 4,990 Play Park Renewal 0 547 391 0 0 938 POPs Waste 0 86 0 0 0 86 Public Convenience Upgrades 0 118 109 0 0 227 Roads Reconstruction 0 8,043 2,000 0 0 10,043 Roads Reconstruction - Helensburgh CHORD 0 47 0 0 0 47 Roads Reconstruction - Oban CHORD 0 3 0 0 0 3 Tobermory Car Park 0 96 0 0 0 96 Asset Sustainability Total 0 14,751 11,137 3,823 0 29,711 Service Development RIS Campbeltown Old Quay 1,381 0 0 0 0 1,381 Fleet Management 4,502 258 0 0 0 4,760 Fleet Management - Prudential Borrowing 2,674 2,152 500 0 0 5,326 Jackson's Quarry Refurbishment 285 0 0 0 0 285 Lismore Ferry Replacement 637 35 0 0 0 672 Lochgilphead Depot Rationalisation 154 115 0 0 0 269 Oban Bus Congestion - Bus Partnership Fund 50 0 0 0 0 50 Oban Depot Development 2,224 -35 0 0 0 2,189 Preliminary design for Regional Transport projects (tif) 205 16 0 0 0 221 Public Transport Operation Vehicles 0 233 0 0 0 233 Weather Incident 326 3,208 1,100 0 0 4,634 Witchburn Road Demolition 158 0 0 0 0 158 Service Development Total 12,596 5,992 1,600 0 0 20,188 Strategic Change RIS Campbeltown Flood Scheme 13,748 1,780 10 387 0 15,925 Harbour Investment Programme Non PB 0 43 0 0 0 43
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Strategic Change RIS Harbour Investment Programme PB 9,295 17,650 35,406 34,900 30,000 143,046 Street Lighting LED Replacement 3,279 300 321 0 0 3,900 Strategic Change Total 26,322 19,773 35,737 35,287 30,000 162,914 Overall Total 38,918 40,516 48,474 39,110 30,000 212,813
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CAPITAL PLAN 2024-25 APPENDIX 2 Development and Economic Growth Category Service Project Previous Years £000s 2024-25 £000s 2025-26 £000s 2026-27 £000s 2027-28 £000s Total £000s Service Development DEG Albert Pier Demolition - Crown Estate Funding 0 0 0 0 0 0 Ardrishaig North Active Travel 831 49 0 0 0 880 Arinagour, Coll - Site Investigation and Preliminary development Consultancy Services0 90 0 0 0 90 Cycleways - H&L (FSPT) 2,905 497 0 0 0 3,402 Dunoon Cycle Bothy 483 179 0 0 0 662 Dunoon STEM Hub 131 2,427 0 0 0 2,558 Gibraltar Street Public Realm Improvements 153 97 0 0 0 250 Glenmorag Car Park PC 0 4 0 0 0 4 Helensburgh Public Realm - Arts Strategy Fund 3 25 25 0 0 53 Hermitage Park 3,362 26 0 0 0 3,388 Nature Restoration Fund 0 835 234 0 0 1,069 Rural Growth Deal 239 1,080 0 0 0 1,319 Safe Streets, Walking and Cycling (CWSS) 3,143 619 395 0 0 4,157 SPT - bus infrastructure 1,405 25 0 0 0 1,430 Town Centre Funds 3,856 334 0 0 0 4,190 West Coast UAV Innovation Logistics and Training Hub 0 0 0 0 0 0 Service Development Total 16,511 6,287 654 0 0 23,452 Strategic Change DEG 01 TIF - Lorn/Kirk Road 2,169 1 0 0 0 2,170 09 TIF - Oban Airport Business Park 505 482 0 0 0 987 TIF - Halfway House Roundabout 66 287 287 0 0 640 Strategic Change Total 2,740 770 287 0 0 3,797 Overall Total 19,251 7,057 941 0 0 27,249
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CAPITAL PLAN 2024-25 APPENDIX 2 Health & Social Care Partnership Category Service Project Previous Years £000s 2024-25 £000s 2025-26 £000s 2026-27 £000s 2027-28 £000s Total £000s Asset Sustainability HSCP Ardfenaig 0 15 0 0 0 15 Capital Property Works 0 203 9 0 0 212 Eadar Glinn 0 34 25 0 0 59 Glencruitten Hostel 0 301 0 0 0 301 Greenwood/Woodlands 0 16 0 0 0 16 HSCP - 102 East King Street "Jean's Bothy" - Rewire - 23-240 4 0 0 0 4 Kintyre Care Home 0 47 673 0 0 720 Lorn Resource Centre 0 33 0 0 0 33 Shellach View 0 22 0 0 0 22 Struan Lodge Boiler 0 134 566 0 0 700 Thomson Home Rothesay 0 21 776 0 0 797 Tigh An Rudha HFE 0 2,280 35 0 0 2,315 Asset Sustainability Total 0 3,110 2,084 0 0 5,194 Service Development HSCP Dunclutha Childrens Home 1,246 54 0 0 0 1,300 Service Development Total 1,246 54 0 0 0 1,300 Overall Total 1,246 3,164 2,084 0 0 6,494
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CAPITAL PLAN 2024-25 APPENDIX 2 Live Argyll Category Service Project Previous Years £000s 2024-25 £000s 2025-26 £000s 2026-27 £000s 2027-28 £000s Total £000s Asset Sustainability Live Argyll Aqualibrium 0 63 104 0 0 167 Capital Property Works 0 12 0 382 0 394 Corran Halls Gaelic Centre 0 19 0 86 0 105 Kintyre Community Education Centre 0 7 0 0 0 7 Lochgilphead Community Ed Centre 0 411 0 0 0 411 Riverside Leisure Centre - Health Suite Upgrade 0 140 0 0 0 140 Rothesay Swimming Pool 0 24 65 0 0 89 The Moat Centre 0 393 0 0 0 393 Victoria Halls, Helensburgh 0 31 0 0 0 31 Asset Sustainability Total 0 1,104 169 468 0 1,741 Service Development Live Argyll Riverside Leisure Centre Refurbishment 1,246 0 0 0 0 1,246 Service Development Total 1,246 0 0 0 0 1,246 Strategic Change Live Argyll Carbon Management 29 21 0 0 0 50 Strategic Change Total 29 21 0 0 0 50 Overall Total 1,275 1,125 169 468 0 3,037
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CAPITAL PLAN 2024-25 APPENDIX 2 Major Projects Category Service Project Previous Years £000s 2024-25 £000s 2025-26 £000s 2026-27 £000s 2027-28 £000s Total £000s Strategic Change CHORD CHORD - Dunoon 12,499 23 0 0 0 12,522 CHORD - Helensburgh -Public Realm Imprv 0 25 0 0 0 25 CHORD - Oban 7,326 500 79 0 0 7,905 CHORD - Rothesay 21,401 3,170 10,000 10,000 0 44,571 Helensburgh Waterfront Development 24,111 281 0 0 0 24,392 HWD - FFE 316 34 0 0 0 350 Kilmory Business Park Phase 2AA 60 291 778 0 0 1,129 Strategic Change Total 65,713 4,324 10,857 10,000 0 90,894 Overall Total 65,713 4,324 10,857 10,000 0 90,894
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CAPITAL PROGRAMME FUNDING Appendix 3 Estimated Capital Funding Carry Forwards from 23-24 Slippage / Acceleration Additional Funding Updated Capital Funding Available Estimated Capital Funding Carry Forwards from 23- 24 Slippage / Acceleration Additional Funding Updated Capital Funding Available Estimated Capital Funding Carry Forwards from 23-24 Slippage / Acceleration Additional Funding Updated Capital Funding Available General Capital Grant 9,042 0 0 234 9,276 9,069 0 0 395 9,464 8,834 0 0 0 8,834 Capital Grant - Area Control Accounts 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Transfer to Revenue for Private Sector Housing Grant (PSHG) -1,033 0 0 0 -1,033 -1,033 0 0 0 -1,033 -1,033 0 0 0 -1,033 Capital Receipts 750 -138 0 0 612 750 0 0 0 750 400 0 0 0 400 Flooding Allocation 156 0 0 0 156 156 0 0 0 156 0 0 0 0 0 Ring Fenced Capital Grant 379 0 0 0 379 618 0 0 0 618 0 0 0 0 0 Restricted Funding 2,553 5,140 80 1,381 9,154 84 7,223 -80 3,389 10,616 0 0 0 0 0 Restricted Funding - Rural Growth Deal 0 0 0 0 0 0 0 0 4,000 4,000 0 0 0 5,000 5,000 Funded by Reserves 10,061 3,898 -1,598 1,956 14,317 1,412 -92 35 3,734 5,089 300 -324 132 5,000 5,108 Additional Funding from Revenue 0 0 0 4 4 0 0 0 260 260 0 0 0 0 0 Insurance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Harbour Investment Programme 24,110 -60 -6,400 0 17,650 39,000 -5,750 2,156 0 35,406 17,585 7,112 4,244 5,959 34,900 Prudential Borrowing 17,567 -2,890 -831 3,085 16,931 166 1,600 2,007 1,334 5,107 38 -479 285 0 -156 Loans Fund Review 431 0 0 0 431 0 0 0 0 0 0 0 0 0 0 COVID Funding 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 64,016 5,950 -8,749 6,660 67,877 50,222 2,981 4,118 13,112 70,433 26,124 6,309 4,661 15,959 53,053 BREAKDOWN OF ADDITIONAL FUNDING Additional Funding 2024-25 2025-26 2026-27 2027-28 2028-29 Reported Source Capital Contract Increase Fund 706 28 June - 2024-25 Restricted Funds Transport Scotland Active Travel 395 June - 2024-25 Scottish Government Nature Restoration Fund 234 June - 2024-25 Scottish Government Strategic Housing Fund Contribution 250 June - 2024-25 Restricted Funds Inward Investment Fund allocation to RGD Projects 16 June - 2024-25 Restricted Funds Revenue Contribution 4 June - 2024-25 Revenue Weather Event - reserves funded 2,922 1,100 July - 2024-25 Earmarked Reserves Islands Fund, PBI, Crown Estates allocation to RGD Projects 800 July - 2024-25 Restricted Funds RAAC Investigation 406 July - 2024-25 Earmarked Reserves Strategic Housing Fund Contribution 74 Aug - 2024-25 Restricted Funds Priority Investment Fund 186 Aug - 2024-25 Reserves Reserves - Gartbreck 250 Aug - 2024-25 Reserves Waitrose S75 funding - RGD Projects 4 Sept - 2024-25 Restricted Funds Strategic Housing Fund Contribution 16 Sept - 2024-25 Restricted Funds Capital Contract Increase Fund 255 Sept - 2024-25 Earmarked Reserves TIF - Borrowing paid from NDR 397 Oct - 2024-25 TIF CWSR - Dunoon Cycle Bothy 99 Oct - 2024-25 Restricted Funds Islands Fund 157 Oct - 2024-25 Restricted Funds HSCP Revenue contribution 260 Oct - 2024-25 Revenue Coastal Change Adaptation 108 142 Nov - 2024-25 Scottish Government 5-7 East Clyde Street - Crown Estate 6 390 Nov - 2024-25 Restricted Funds Harbour Investment Programme 5,959 30,000 15,795 Nov-2024-25 Prudential Borrowings Rothesay Marine Gateway - Inward Investment Fund 8 Dec- 2024-25 Restricted Funds Rothesay Pavilion 559 3,300 5,000 Dec- 2024-25 Earmarked Reserves Rothesay Pavilion - Heritage Lottery Fund 1,200 Dec- 2024-25 Restricted Funds Rothesay Pavilion - Historic Environment Scotland 500 Dec- 2024-25 Restricted Funds Rothesay Pavilion - Highlands and Islands Enterprise 1,000 Dec- 2024-25 Restricted Funds Rothesay Pavilion - Rural Growth Deal 4,000 5,000 Dec- 2024-25 Restricted Funds 6,660 13,112 15,959 30,000 15,795 2025-26 2026-272024-25
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APPENDIX 4 – Outturn Variance Explanations Listed below are the projects where the current year variance is +/- £50k. Project Annual Budget £’000 Outturn £’000 Total (Over)/ Under Forecast Variance £’000 Explanation Applications Projects 342 282 60 Slippage from 2024-25 into 2025-26. Budget not required for current year projects. Slipped and vired to Block Allocation to contribute towards 2025-26 Red Risks. Struan Lodge 700 134 566 Slippage into 2025-26. Project which was planned to commence and finish in 2024-25 is now forecast to start in March 2025. Tigh An Rudha HFE 2280 2483 (203) Accelerate into 2024-25 from 2025-26. Block allocation accelerated from 2025-26. Bute Sea Wall Repairs 633 274 359 Slippage into 2025-26. Portion of costs falling out of 2024-25 due to works forecast to start in Q4 of 2024-25. Harbour Investment Programme 24,050 17,650 6,400 Slippage from 2024-25 into 2025-26. Commencement of Iona Breakwater construction was delayed, less of the forecasted costs will fall within 2024-25 and has slipped into 2025-26. Net Zero 256 0 256 Slippage from 2024-25 into 2025-26. Projects now identified and expenditure will take place in 2025-26. Kilmory Business Park Phase 2AA 1035 291 744 Slippage from 2024-25 into 2025-26. Cost plan now received from contractor with agreed monthly cashflow projection allowing for accurate budget forecasting which was not possible while awaiting this agreement. Other variances under £50k (100) Total value of non-material variances less than +/-£50k. Total 8,282
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Strategic Change Projects - Cumulative Spend, Start/Finish Dates and Project Risks APPENDIX 5 Strategic Change Projects Prior Years Spend £'000 Current Year Forecast £'000 Total Project Forecast £'000 Total Project Budget £'000 Project Start Date Estimated Completion Date Project Risks Identified Explanation Campbeltown Flood Scheme 13,748 1,780 15,925 15,925 01/08/2016 31/03/2025 Green CHORD Oban 7,326 500 7,905 7,905 27/10/2016 31/03/2026 Green Issues with contract close out impacting on timescales. CHORD Rothesay 21,401 3,170 44,571 44,571 01/05/2024 31/03/2025 Green Project recommenced and awaiting Rural Growth Deal acceptance. Harbour Investment Programme 9,295 17,693 143,089 143,089 01/04/2017 31/03/2028 Green Dunoon Primary 10,637 232 10,869 10,869 18/12/2014 30/04/2020 Green Physically complete - negotiations with contractor delaying payment of final sums outstanding. Replacement of Oban High 2,844 406 3,250 3,250 24/04/2014 31/01/2019 Green Physically complete - negotiations with contractor delaying payment of final sums outstanding. Clean Energy - NDEEF1 1,109 124 1,441 1,441 01/04/2021 31/03/2025 Green Slippage into 25-26 anticipated (and reported) with retentions likely to be payable in future financial years. Clean Energy - NDEEF2 0 0 1,140 1,140 01/04/2024 31/03/2027 Green Street Lighting LED Replacement 3,279 300 3,900 3,900 01/08/2016 31/12/2025 Green Tender for final package of works still to be awarded. Helensburgh Waterfront Development 24,111 281 24,392 24,392 01/04/2017 31/03/2025 Green Physically complete, retentions outstanding TIF - Halfway House Roundabout 66 287 640 640 tbc tbc Green Scope of project still to be determined - budget to be reprofiled. Kirn Primary School 10,085 34 10,119 10,119 24/04/2014 31/10/2017 Green Physically complete - negotiations with contractor delaying payment of final sums outstanding. Helensburgh Office Rationalisation 11,538 300 11,838 11,838 25/04/2013 31/12/2022 Green Physically complete - project subject to legal dispute. CHORD Dunoon 12,499 23 12,522 12,522 03/02/2012 09/03/2018 Green Physically complete - negotiations with contractor regarding potential construction defect. Kilmory Business Park Phase 2AA 60 291 1,155 1,129 01/02/2022 01/09/2025 Green Development Agreement still to be concluded. Carbon Management - Non Education 29 21 50 50 01/04/2015 31/12/2025 Green Projects being determined. Campbeltown Office Rationalisation 595 1 596 596 01/02/2015 31/03/2019 Green Project complete in full - no further expenditure expected. TIF - Oban Airport Business Park 505 482 987 987 22/01/2015 31/12/2025 Green Campbeltown Schools Redevelopment 2,092 38 2,130 2,130 16/02/2012 30/11/2018 Green Physically complete - negotiations with contractor delaying payment of financial sums outstanding. CHORD - Helensburgh - Comet Works 0 25 25 25 01/04/2023 31/03/2025 Green Art project proposed for 24-25. TIF - Lorn/Kirk Road 2,169 1 2,170 2,170 22/01/2015 31/03/2021 Green Project complete in full - no further expenditure expected. Net Zero 0 0 256 256 01/04/2025 31/03/2026 Green Strategic Change Total 133,388 25,989 298,970 298,944 Project Risk Classifications: Green - Risks can be managed and are viewed as stable or reducing. Amber - Risks are increasing but are still manageable. Red - Risks are increasing or have increased to such an extent they may affect delivery of the project. Capital Expenditure Dates Risks
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ARGYLL AND BUTE COUNCIL - CAPITAL PLAN MONITORING REPORT - OVERALL COUNCIL Appendix 6 FINANCIAL SUMMARY - NET EXPENDITURE Current Financial Year To Date Budget Actual (Over)/Under Variance Budget Forecast (Over)/Under Variance Budget 2025-26 (Over)/Under Variance £000s £000s £000s £000s £000s £000s £000s £000s £000s EXPENDITURE Asset Sustainability Projects Executive Director Douglas Hendry 9,165 9,164 1 13,290 12,927 363 23,326 23,326 0 Executive Director Kirsty Flanagan 8,876 8,918 (42) 16,431 15,935 496 32,889 33,003 (114) Asset Sustainability Total 18,041 18,082 (41) 29,721 28,862 859 56,215 56,329 (114) Service Development Projects Executive Director Douglas Hendry 87 87 0 448 448 0 15,827 15,827 0 Executive Director Kirsty Flanagan 3,124 3,119 5 12,621 12,598 23 46,833 46,810 23 Service Development Total 3,211 3,206 5 13,069 13,046 23 62,660 62,637 23 Strategic Change Projects Campbeltown Schools Redevelopment 0 0 0 38 38 0 2,130 2,130 0 Dunoon Primary 0 0 0 232 232 0 10,869 10,869 0 Replacement of Oban High 0 0 0 406 406 0 3,250 3,250 0 Kirn Primary School 0 0 0 34 34 0 10,119 10,119 0 Mull Joint Campus 0 0 0 0 0 0 0 0 0 Carbon Management - Non Education 0 0 0 21 21 0 50 50 0 Campbeltown Office Rationalisation 0 0 0 1 1 0 596 596 0 Helensburgh Office Rationalisation 0 0 0 300 300 0 11,838 11,838 0 Clean Energy - NDEEF1 0 0 0 124 124 0 1,441 1,441 0 Clean Energy - NDEEF2 0 0 0 0 0 0 1,140 1,140 0 Net Zero 0 0 0 256 0 256 256 256 0 Campbeltown Flood Scheme 1,217 1,217 0 1,780 1,780 0 15,925 15,925 0 Street Lighting LED Replacement 44 44 0 300 300 0 3,900 3,900 0 Harbour Investment Programme 5,669 5,669 0 24,050 17,650 6,400 143,046 143,046 0 Harbour Investment Programme Non - PB 0 0 0 43 43 0 43 43 0 TIF - Lorn/Kirk Road 0 0 0 1 1 0 2,170 2,170 0 TIF - Oban Airport Business Park 317 317 0 482 482 0 987 987 0 TIF - Halfway House Roundabout 0 0 0 287 287 0 640 640 0 CHORD - Helensburgh - Comet Works 0 0 0 25 25 0 25 25 0 CHORD Dunoon 0 0 0 23 23 0 12,522 12,522 0 CHORD Oban 0 0 0 500 500 0 7,905 7,905 0 CHORD Rothesay 2,749 2,749 0 3,170 3,170 0 44,571 44,571 0 Helensburgh Waterfront Development 121 127 (6) 281 281 0 24,392 24,392 0 HWD - FFE (Funded by LA) 0 0 0 34 34 0 350 350 0 Kilmory Business Park Phase 2AA 196 196 0 1,035 291 744 1,129 1,155 (26) Strategic Change Total 10,313 10,319 (6) 33,423 26,023 7,400 299,294 299,320 (26) Total Expenditure 31,565 31,607 (42) 76,213 67,931 8,282 418,169 418,286 (117) INCOME Asset Sustainability Executive Director Douglas Hendry 0 0 0 (1,966) (1,966) 0 (3,083) (3,083) 0 Executive Director Kirsty Flanagan (166) (166) 0 (818) (818) 0 (818) (818) 0 Asset Sustainability Total (166) (166) 0 (2,784) (2,784) 0 (3,901) (3,901) 0 Service Development Projects Executive Director Douglas Hendry 0 0 0 0 0 0 (7,741) (7,741) 0 Executive Director Kirsty Flanagan (1,776) (1,776) 0 (6,456) (6,456) 0 (25,603) (25,603) 0 Service Development Total (1,776) (1,776) 0 (6,456) (6,456) 0 (33,344) (33,344) 0 Strategic Change Projects Helensburgh Office Rationalisation 0 0 0 0 0 0 (349) (349) 0 Dunoon Primary 0 0 0 0 0 0 (137) (137) 0 Campbeltown Flood 0 0 0 0 0 0 (270) (270) 0 Harbour PB (5,669) (5,669) 0 (24,050) (24,050) 0 (143,046) (143,046) 0 01 TIF - Lorn/Kirk Road (317) (317) 0 0 0 0 (2,057) (2,057) 0 H'burgh CHORD Public Realm Imprv 0 0 0 0 0 0 (570) (570) 0 Helensburgh Waterfront Development 0 0 0 (2,320) (2,320) 0 (7,979) (7,979) 0 HWD - FFE (Funded by LA) 0 0 0 0 0 0 (350) (350) 0 Rothesay CHORD 0 0 0 (2,009) (2,009) 0 (20,554) (20,554) 0 Kilmory Business Park Phase 2AA 0 0 0 (829) (829) 0 (829) (829) 0 Kilmory Business Park Phase 2AA - HIE 0 0 0 (150) (150) 0 (150) (150) 0 CHORD - Dunoon Waterfront 0 0 0 0 0 0 (10) (10) 0 CHORD - Oban 0 0 0 0 0 0 (1,624) (1,624) 0 Strategic Change Total (5,986) (5,986) 0 (29,358) (29,358) 0 (177,925) (177,925) 0 Total Income (7,928) (7,928) 0 (38,598) (38,598) 0 (215,170) (215,170) 0 Net Total 23,637 23,679 (42) 37,615 29,333 8,282 202,999 203,116 (117) Full Year This Financial Year Total Project Costs 31 December 2024
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MONITORING REPORT Budget Actual Variance Budget Forecast Variance Budget Forecast Variance £000s £000s £000s £000s £000s £000s £000s £000s £000s EXPENDITURE Asset Sustainability Education 5,723 5,723 0 7,586 7,586 0 12,520 12,520 0 Live Argyll 931 931 0 1,104 1,104 0 1,741 1,741 0 Health and Social Care Partnership 2,192 2,191 1 3,473 3,110 363 5,194 5,194 0 Shared Offices 319 319 0 1,127 1,127 0 3,871 3,871 0 Asset Sustainability Total 9,165 9,164 1 13,290 12,927 363 23,326 23,326 0 Service Development Projects Bowmore Primary School - Pre 5 Unit 0 0 0 0 0 0 149 149 0 Clyde Cottage - 600 hour provision 0 0 0 0 0 0 556 556 0 Craignish Primary School - Pre 5 Extension 0 0 0 0 0 0 400 400 0 Iona Primary School - Pre 5 Unit 0 0 0 0 0 0 490 490 0 Islay High and Rosneath Primary School Pitches 0 0 0 0 0 0 719 719 0 Sandbank Gaelic Pre Five Unit 0 0 0 0 0 0 491 491 0 Early Learning and Childcare 0 0 0 0 0 0 850 850 0 Early Learning and Childcare - 1140 Hours 46 46 0 243 243 0 8,017 8,017 0 CO2 Monitoring - Covid Mitigation in Schools 0 0 0 113 113 0 192 192 0 Early Learning and Childcare - 1140 Hours - CFCR 0 0 0 0 0 0 1,379 1,379 0 Bowmore Primary School - Gaelic Medium Grant 16 16 0 38 38 0 38 38 0 Riverside Leisure Centre Refurbishment 0 0 0 0 0 0 1,246 1,246 0 Dunclutha Childrens Home 25 25 0 54 54 0 1,300 1,300 0 Service Development Total 87 87 0 448 448 0 15,827 15,827 0 Strategic Change Projects Campbeltown Schools Redevelopment 0 0 0 38 38 0 2,130 2,130 0 Dunoon Primary 0 0 0 232 232 0 10,869 10,869 0 Replacement of Oban High 0 0 0 406 406 0 3,250 3,250 0 Kirn Primary School 0 0 0 34 34 0 10,119 10,119 0 Mull Joint Campus 0 0 0 0 0 0 0 0 0 Carbon Management - Non Education 0 0 0 21 21 0 50 50 0 Campbeltown Office Rationalisation 0 0 0 1 1 0 596 596 0 Helensburgh Office Rationalisation 0 0 0 300 300 0 11,838 11,838 0 Clean Energy - NDEEF1 0 0 0 124 124 0 1,441 1,441 0 Clean Energy - NDEEF2 0 0 0 0 0 0 1,140 1,140 0 Net Zero 0 0 0 256 0 256 256 256 0 CHORD Oban 0 0 0 500 500 0 7,905 7,905 0 CHORD Rothesay 2,749 2,749 0 3,170 3,170 0 44,571 44,571 0 CHORD - Helensburgh - Comet Works 0 0 0 25 25 0 25 25 0 CHORD Dunoon 0 0 0 23 23 0 12,522 12,522 0 Helensburgh Waterfront Deveopment 121 127 (6) 281 281 0 24,392 24,392 0 HWD - FFE (Funded by LA) 0 0 0 34 34 0 350 350 0 Kilmory Business Park Phase 2AA 196 196 0 1,035 291 744 1,129 1,155 (26) Strategic Change Total 3,066 3,072 (6) 6,480 5,480 1,000 132,583 132,609 (26) Total Expenditure 12,318 12,323 (5) 20,218 18,855 1,363 171,736 171,762 (26) INCOME Asset Sustainability Education 0 0 0 (125) (125) 0 (125) (125) 0 Health and Social Care Partnership 0 0 0 (1,441) (1,441) 0 (2,558) (2,558) 0 Shared Offices 0 0 0 (400) (400) 0 (400) (400) 0 Asset Sustainability Total 0 0 0 (1,966) (1,966) 0 (3,083) (3,083) 0 Service Development Projects Sandbank Gaelic Pre Five Unit 0 0 0 0 0 0 (485) (485) 0 Early Learning and Childcare 0 0 0 0 0 0 (918) (918) 0 Early Years 1140 Hours 0 0 0 0 0 0 (6,300) (6,300) 0 Bowmore Primary School - Gaelic Medium Grant 0 0 0 0 0 0 (38) (38) 0 Service Development Total 0 0 0 0 0 0 (7,741) (7,741) 0 Strategic Change Helensburgh Office Rationalisation 0 0 0 0 0 0 (349) (349) 0 Dunoon Primary School 0 0 0 0 0 0 (137) (137) 0 H'burgh CHORD Public Realm Imprv 0 0 0 0 0 0 (570) (570) 0 Helensburgh Waterfront Development 0 0 0 (2,320) (2,320) 0 (7,979) (7,979) 0 HWD - FFE (Funded by LA) 0 0 0 0 0 0 (350) (350) 0 Rothesay CHORD 0 0 0 (2,009) (2,009) 0 (20,554) (20,554) 0 CHORD - Dunoon Waterfront 0 0 0 0 0 0 (10) (10) 0 CHORD - Oban 0 0 0 0 0 0 (1,624) (1,624) 0 Kilmory Business Park Phase 2AA 0 0 0 (829) (829) 0 (829) (829) 0 Kilmory Business Park Phase 2AA - HIE 0 0 0 (150) (150) 0 (150) (150) 0 Strategic Change Total 0 0 0 (5,308) (5,308) 0 (32,552) (32,552) 0 Total Income 0 0 0 (7,274) (7,274) 0 (43,376) (43,376) 0 Net Departmental Total 12,318 12,323 (5) 12,944 11,581 1,363 128,360 128,386 (26) 31 December 2024 Total Project CostsFull Year This Financial YearCurrent Financial Year To Date Appendix 6 FINANCIAL SUMMARY NET EXPENDITURE - EXECUTIVE DIRECTOR DOUGLAS HENDRY
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MONITORING REPORT Current Financial Year To Date Budget Actual (Over)/Under Variance Budget Year End Forecast (Over)/Under Variance Budget Forecast (Over)/Under Variance £000s £000s £000s £000s £000s £000s £000s £000s £000s EXPENDITURE Asset Sustainability Projects Roads & Infrastructure Services 8,193 8,235 (42) 15,162 14,798 364 29,711 29,765 (54) Customer Support Services 683 683 0 1,269 1,137 132 3,178 3,238 (60) Asset Sustainability Total 8,876 8,918 (42) 16,431 15,935 496 32,889 33,003 (114) Service Development Projects Preliminary design for Regional Transport projects 0 0 0 16 16 0 221 221 0 Campbeltown Old Quay 0 0 0 0 0 0 1,381 1,381 0 Fleet Management - Prudential Borrowing 1,690 1,690 0 2,152 2,152 0 5,326 5,326 0 Fleet Management 0 0 0 258 258 0 4,760 4,760 0 Public Transport Operation Vehicles 233 233 0 233 233 0 233 233 0 Oban Bus Congestion - Bus Partnership Fund 0 0 0 0 0 0 50 50 0 Lismore Ferry 0 0 0 35 35 0 672 672 0 HITRANS Ferry Fund 0 0 0 0 0 0 0 0 0 Oban Depot Development Project 0 2 (2) (35) 2 (37) 2,189 2,226 (37) Lochgilphead Depot Rationalisation 115 163 (48) 115 115 0 269 269 0 Jackson's Quarry Refurbishment 0 0 0 0 0 0 285 285 0 Depot Rationalisation 0 0 0 10 10 0 10 10 0 Witchburn Road Demolition 0 0 0 0 0 0 158 158 0 Weather Incident October 2023 138 138 0 3,208 3,208 0 4,634 4,634 0 Safe Streets, Walking and Cycling (CWSS) 0 0 0 619 619 0 4,157 4,157 0 SPT - bus infrastructure 0 0 0 25 25 0 1,430 1,430 0 Cycleways - H&L (FSPT) 0 0 0 497 497 0 3,402 3,402 0 Helensburgh Public Realm - Arts Strategy Fund 0 0 0 25 25 0 53 53 0 Town Centre Funds 69 69 0 334 334 0 4,190 4,190 0 Rural Growth Deal 332 332 0 1,080 1,080 0 1,319 1,319 0 Dunoon Cycle Bothy 92 48 44 179 179 0 662 662 0 Dunoon STEM Hub 19 19 0 2,427 2,427 0 2,558 2,558 0 Ardrishaig North Active Travel 3 3 0 49 49 0 880 880 0 Nature Restoration Fund 0 0 0 835 835 0 1,069 1,069 0 Gibraltar Street Public Realm Improvements 57 57 0 97 97 0 250 250 0 Hermitage Park 0 0 0 26 26 0 3,388 3,388 0 Glenmorag Car Park 4 4 0 4 4 0 4 4 0 Applications Projects 282 271 11 342 282 60 3,193 3,133 60 Arinagour, Coll - Site Investigation and Preliminary development Consultancy Services90 90 0 90 90 0 90 90 0 Service Development Total 3,124 3,119 5 12,621 12,598 23 46,833 46,810 23 Strategic Change Projects Campbeltown Flood Scheme 1,217 1,217 0 1,780 1,780 0 15,925 15,925 0 Street Lighting LED Replacement 44 44 0 300 300 0 3,900 3,900 0 Harbour Investment Programme 5,669 5,669 0 24,050 17,650 6,400 143,046 143,046 0 Harbour Investment Programme - Non PB 0 0 0 43 43 0 43 43 0 TIF - Lorn/Kirk Road 0 0 0 1 1 0 2,170 2,170 0 TIF - Oban Airport Business Park 317 317 0 482 482 0 987 987 0 TIF - Halfway House Roundabout 0 0 0 287 287 0 640 640 0 Strategic Change Total 7,247 7,247 0 26,943 20,543 6,400 166,711 166,711 0 Total Expenditure 19,247 19,284 (37) 55,995 49,076 6,919 246,433 246,524 (91) INCOME Asset Sustainability Roads & Infrastructure Services (166) (166) 0 (818) (818) 0 (818) (818) 0 Asset Sustainability Total (166) (166) 0 (818) (818) 0 (818) (818) 0 Service Development Projects Applications Projects 0 0 0 0 0 0 (437) (437) 0 Safe Streets, Walking and Cycling 0 0 0 (376) (376) 0 (2,988) (2,988) 0 SPfT 0 0 0 (25) (25) 0 (1,268) (1,268) 0 Cycleways - H&L (FSPT) 0 0 0 (500) (500) 0 (3,502) (3,502) 0 Town Centre Funds 0 0 0 (512) (512) 0 (2,730) (2,730) 0 Rural Growth Deal (15) (15) 0 (400) (400) 0 (511) (511) 0 Dunoon STEM Hub 0 0 0 (2,050) (2,050) 0 (2,558) (2,558) 0 Ardrishaig North Active Travel 0 0 0 0 0 0 (50) (50) 0 Dunoon Cycle Bothy 0 0 0 (298) (298) 0 (563) (563) 0 Gibraltar Street Public Realm Improvements 0 0 0 0 0 0 (250) (250) 0 Hermitage Park 0 0 0 0 0 0 (3,319) (3,319) 0 Glenmorag Car Park 0 0 0 (4) (4) 0 (4) (4) 0 Fleet Management - PB (1,690) (1,690) 0 (2,152) (2,152) 0 (4,826) (4,826) 0 Fleet Management (40) (40) 0 (40) (40) 0 (89) (89) 0 Millpark Depot Demolition Insurance 0 0 0 0 0 0 (53) (53) 0 Oban Depot - Mill Park Insurance Claim 0 0 0 0 0 0 (1,681) (1,681) 0 Oban Depot - Revenue Contribution 0 0 0 (67) (67) 0 (67) (67) 0 Lismore Ferry 0 0 0 0 0 0 (500) (500) 0 Witchburn Road Demolition 0 0 0 0 0 0 (157) (157) 0 Oban Bus Congestion - Bus Partnership Fund (31) (31) 0 (32) (32) 0 (50) (50) 0 Service Development Total (1,776) (1,776) 0 (6,456) (6,456) 0 (25,603) (25,603) 0 Strategic Change Projects Campbeltown Flood 0 0 0 0 0 0 (270) (270) 0 Harbour PB (5,669) (5,669) 0 (24,050) (24,050) 0 (143,046) (143,046) 0 01 TIF - Lorn/Kirk Road (317) (317) 0 0 0 0 (2,057) (2,057) 0 Strategic Change Total (5,986) (5,986) 0 (24,050) (24,050) 0 (145,373) (145,373) 0 Total Income (7,928) (7,928) 0 (31,324) (31,324) 0 (171,794) (171,794) 0 Net Departmental Total 11,319 11,356 (37) 24,671 17,752 6,919 74,639 74,730 (91) 31 December 2024 Full Year This Financial Year Total Project Costs FINANCIAL SUMMARY NET EXPENDITURE - EXECUTIVE DIRECTOR KIRSTY FLANAGAN Appendix 6
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 20 FEBRUARY 2025 RESERVES AND BALANCES – UPDATE AS AT 31 DECEMBER 2024 1 EXECUTIVE SUMMARY 1.1 The main purpose of this report is to advise Members of the overall level of reserves held by the council, as well as providing detail on the monitoring of the earmarked balances held within the General Fund. 1.2 The council had a total of £400.319m unusable reserves as at 31 March 2024 that are not backed with resources. They are required purely for accounting purposes. 1.3 As at 31 March 2024, the council had a total of £121.701m usable reserves, comprising the following: • £2.763m Repairs and Renewals Fund; • £3.197m Capital Funds; and • £115.741m General Fund, with £107.443m of this balance earmarked for specific purposes. 1.4 At the budget setting meeting on 22 February 2024, as part of the revenue budget, Council agreed to the transfer Strathclyde Pension Fund contribution savings of £6.875m relating to council staff and £3.053m relating to Social Work staff to reserves. It was also agreed that £1.875m of revenue surplus within 2024-25 be transferred to the Capital Plan. As the commitments for these include expenditure within 2024-25 year, these have been immediately recognised within the earmarked reserves balances to allow them to be spent accordingly. In addition, Scottish Government funding in relation to the 23-24 pay award has been notified at a value of £0.371m and this has been reinstated to the Connect for Success earmarking as planned. Further, following a review of earmarked reserves, at its meeting of 26 September 2024, Council approved the release of reserves totalling £1.558m, previously earmarked for specific purposes, back to the unallocated General Fund. The element of the General Fund balance currently earmarked for specific purposes now totals £118.059m. 1.5 The current earmarked General Fund balance of £118.059m comprises the following: • £58.413m invested or committed for major initiatives/capital projects; • £10.784m already drawn down; • £15.808m still to be drawn down in 2024-25; and • £33.054m planned to be spent in future years. 1.6 The council’s General Fund contingency is set at 2% of estimated net revenue expenditure for 2024-25, which amounts to £6.039m. At the beginning of the
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financial year, there was an unallocated General Fund Balance of £8.298m, representing a surplus of £2.259m over and above the general contingency. After taking into consideration the current forecast outturn overspend for 2024-25, this surplus has reduced to £0.198m.
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 20 FEBRUARY 2025 RESERVES AND BALANCES - UPDATE AS AT 31 DECEMBER 2024 2. INTRODUCTION 2.1 This report outlines current balances on the council’s reserves, both usable and unusable. It also provides detail on the monitoring of the earmarked balances within the General Fund. 3. DETAIL 3.1 Types of Reserves 3.1.1 Usable Reserves - Councils have powers to establish certain resource backed reserves which can be used to fund expenditure. The powers of councils to establish reserves are laid out in Schedule 3 of the Local Government (Scotland) Act 1975. These allow councils to establish a Renewal and Repairs Fund, Insurance Fund and Capital Fund. Councils can also establish a Useable Capital Receipts Reserve. The council must also maintain a General Fund and can earmark balances for specific purposes within the General Fund. 3.1.2 Unusable Reserves – Councils are also required to establish certain reserves that are not backed by resources. They are required purely for accounting purposes and do not represent resources available for councils to utilise. The Pensions Reserve, Revaluation Reserve, Capital Adjustment Account, Financial Instruments Adjustment Account and Accumulated Absences Account are examples of unusable reserves. 3.2 Reserve Balances as at 31 March 2024 3.2.1 The balances on each type of reserve at 31 March 2024 are set out in the two tables below, per the Audited Annual Accounts for 2023-24. Unusable Reserves £000 Revaluation Reserve 180,661 Capital Adjustment Account 249,093 Financial Instruments Adjustment Account (1,585) Pensions Reserve (19,578) Accumulated Absences Account (8,272) Total Unusable Reserves 400,319 Usable Reserves £000 Repairs and Renewals Fund 2,763 Capital Fund and Usable Capital Receipts Reserve 3,197 General Fund 115,741 Total Usable Reserves 121,701 Total Reserves 522,020
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3.2.2 The Revaluation Reserve represents the unrealised gains in the valuation of fixed assets. The Capital Adjustment Account represents the difference between depreciation based on proper accounting practice and statutory charges for financing capital expenditure. The Financial Instruments Adjustment Account represents the difference between gains and losses on borrowing and statutory capital financing charges. The Pensions Reserve represents the difference between pension costs based on proper accounting practice and payments made for pension costs. The Accumulated Absences Account represents the costed difference between holiday pay entitlement and actual holidays taken at 31 March. 3.2.3 The Repairs and Renewals Fund was established to support funding of renewal and replacement of school equipment. Schools can only draw on the Repairs and Renewals Fund to the extent they have previously paid into the Fund and contributions must be contained within schools devolved budgets. 3.2.4 The Capital Fund was established to receive all capital receipts generated by the council and can be used to support the capital plan or meet the principal repayments on loan charges. The council decides as part of the budget process each year how it wishes to draw funding from the Capital Fund. 3.2.5 The Usable Capital Receipts Reserve relates to the accumulated unspent capital receipts from sale of council houses prior to transfer of the housing stock. The reserve forms part of the council’s Strategic Housing Fund and can only be used for investment in social housing. The reserve will be used in accordance with the approach to investing in housing, agreed by Council in August 2012. 3.3 General Fund 3.3.1 The General Fund balance as at 31 March 2024 can be analysed as follows: Balance 31/03/24 £000 Balance on General Fund as at 31 March 2023 86,356 Increase to General Fund balance at end of 2023-24 29,385 Earmarked Balances* (107,443) Contingency allowance at 2% of net expenditure (6,039) Unallocated balance as at 31 March 2024 2,259 * Note that the earmarked balance of £107.443m includes £35.658m of new earmarked reserves relating to the Service Concessions gain as detailed at paragraph 3.6. 3.3.2 The General Fund includes balances that Council has agreed to earmark for specific purposes. Some of these earmarked balances will be spent during the current financial year and some of them will be held over and spent in later years. The table below shows the balance at 31 March 2024, the new amounts earmarked from the Strathclyde Pension Fund savings (see section 3.7), the
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3.3.3 amount from the revenue budget for Capital agreed at Council in February 2024, the amount returned to earmarking from Scottish Government funding for the 2023-24 pay award, the amounts that are currently invested or set aside for major initiatives, the amount already spent and planned to be spent in the current year, the amount to be spent in future years and any sums no longer required to be earmarked. Appendix 1 provides further details on the breakdown of unspent budget earmarkings. Officers have reviewed and updated the spending profiles. At its meeting of 26 September 2024, Council agreed to release a total of £1.558m, previously earmarked for specific purposes, back to the unallocated General Fund as outlined below. It is anticipated that these resources will contribute towards the forecast 2025-26 budget gap and, therefore, will not contribute to the forecast surplus over and above the general contingency balance outlined at section 3.4.
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3.3.4 EMR Released to General Fund £000 Expansion of Universal Free School Meals 833 Scottish Government Initiatives: Developing the Young Workforce GIRFEC Languages 1+2 38 (2023 Digital Projects) Cashless Catering 20 Education Learning Estate Condition Surveys 2 Transport for 'Smoke Free Me' Drama Production 1 Growing our Own and Modern Apprentices 40 Scottish Govt Islands Programme 1 Staycation and Marketing Argyll and Bute 62 Amenity Services introduction of management information system 28 Bin Replacement Programme 2 COVID Funding 418 Digital Projects: Hybrid Council meetings 31 Debt Counselling & Welfare Rights 15 Community Resilience Fund 70 total 1,558 It was also agreed to make non-financial amendments, to merge specific earmarked reserves, as outlined below. This is the cause of the large movement between categories in the previous reporting periods. Reference Description 003 Community Planning 006 Communities & Partnership Team 010 Rothesay Pavilion Charity 094 Rothesay Pavilion (Revenue) 012 Rothesay Pavilion Essential Repairs 155 Rothesay Pavilion (Service Concessions) 167 Rothesay Pavilion (Recovery & Renewal Fund) 170 Underwriting development of Rothesay Pavilion 008 Information Management (Estates Survey Work) 018 Site Investigation Works 042 Gaelic Specific Grant 044 Languages 1+2 074 Skills Development Scotland 085 Establishing HR Service Centre 080 Business Development Training 082 Learning and Development 086 Crown Estates (23-24)
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087 Crown Estates (22-23) 088 Crown Estates (21-22) 089 Crown Estates (20-21) 116 EH COVID Posts 134 Waste Variation Monies 149 Waste PPP (2023 Contract Inflation Adjustments) 030 Additional Teaching/Support in Schools/Digital Devices/Family Home Learning Support Fund 033 School WIFI Upgrades 034 Education Transformation Fund 049 Skype for Business for Education/Digital Projects 3.4 Unallocated General Fund Balance 3.4.1 The council’s General Fund contingency is set at 2% of estimated net revenue expenditure for 2024-25, which amounts to £6.039m. At the beginning of the financial year, there was an unallocated General Fund Balance of £8.298m, representing a surplus of £2.259m over and above the general contingency. After taking into consideration the current forecast outturn overspend for 2024- 25, this surplus has reduced to £0.198m. 3.4.2 The revenue budget monitoring position as at 31 December 2024 is a forecast overspend of £4.215m, of which £2.179m relates to Social Work. The Chief Financial Officer of the IJB has now written to the Council to request access to the Strathclyde Pension Fund Gain that is held in reserves for the HSCP and, therefore, it is expected that Social Work will outturn within budget, after applying these reserves. 3.4.3 In relation to the adverse weather event of October 2023, it was agreed at the Policy and Resources meeting on 15 August 2024 to continue the roads reconstruction schemes and the overspend be funded as follows: £000 Utilise some of the unallocated capital funding for street lighting and cable and column replacements 100 Use Priorities Investment Fund 944 Use Crown Estate Funding 780 Borrowing for additional expenditure and use £50k in the loans fund for street lighting improvements toward the cost of borrowing 2,029 Total 3,853 3.4.4 A contribution of £25k to LiveArgyll, to be funded from the unallocated General Fund balance, was approved by Council on 23 November. This award will meet staff costs associated with the use of the Corran Halls for the duration of the Royal National MOD.
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3.4.5 The following table summarises the position of the unallocated General Fund balance, taking into consideration the points noted above. Heading Detail £000 Unallocated General Fund as at 31 March 2024 This is the balance that is unallocated over and above the 2% contingency, which amounts to £6.039m 2,259 Current Forecast Outturn for 2024-25 as at 31 December 2024 Per Revenue Budget Monitoring report (4,215) Social Work Forecast Outturn adjustment Per paragraph 3.4.2 - Social Work variance expected to be managed from within IJB reserves 2,179 LiveArgyll Funding Award Per paragraph 3.4.4 – Contribution in respect of RNM event, to be met from unallocated GF balance (25) Forecast Unallocated General Fund as at 31 March 2025 198 3.5 Loans Fund Review 3.5.1 At the Council meeting of 27 February 2020, it was agreed that the one-off re- profiling gain of £20.561m generated by the loans fund review should be used partly to create a provision for the increasing principal repayments over the next 10 years (£7.649m) with the remainder of the gain (£12.912m) used to fund known liabilities/cost pressures. The £12.912m has now been transferred to Earmarked Reserves in full. 3.6 Service Concessions 3.6.1 3.6.2 At the Council meeting of 23 February 2023, it was agreed that the council adopt the financial flexibility introduced by the Scottish Government relating to Service Concession contracts. This resulted in a one-off retrospective gain of £36.038m. The commitments associated with this were further refined at the Council meeting of 22 February 2024 and it was agreed that £0.380m be transferred into the General Fund balance, leaving a one-off gain of £35.658m which is now being held in earmarked reserves. Further, existing earmarkings totalling £2.666m in respect of Rothesay Pavilion have been consolidated with the Service Concessions earmarked resources, for monitoring purposes. Appendix 2 provides information on these commitments, totalling £38.324m. At the budget meeting on 23 February 2023, the Council established a £7m Priorities Investment Fund from the Service Concession gain; to lever in, secure and support key strategic investments in this year and future years. By the budget meeting on 22 February 2024, £0.850m has been committed towards the Housing Emergency, Area Plans and Strategic Development Frameworks, leaving £6.150m. A further £1.028m was then committed towards the capital plan and £0.380m to supplement the Unallocated General Fund Balance, as outlined at paragraph 3.6.1, with a remaining balance of £4.742m. Commitments made during 2024-25 were £0.050m for the Clipper Race and
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£0.944m towards the weather incident costs, leaving a balance of £3.748m remaining in the Fund. 3.7 Strathclyde Pension Fund Reserves 3.7.1 The Strathclyde Pension Fund reported an exceptionally strong set of results with a surplus of almost £9bn which has allowed a reduction in the employer contribution rate. Argyll and Bute Council is seeing a reduction in employer contributions from 19.3% to 6.5% over 2024-25 and 2025-26, before reverting to a sustainable long-term rate in the third year of 17.5%. For the council, the one-off saving in the first two years associated with a reduction to 6.5% is £6.875m per year. On 22 February 2024, Council agreed to allocate the cumulative gain in the first two years of £13.750m as follows: Description 2024-25 £000 2025-26 £000 Total £000 Realised saving 6,875 6,875 13,750 £2m in 24-25 to balance revenue budget (2,000) (2,000) £3.750m allocation to capital plan (3,750) (3,750) £2m to be directed towards Transformation/ Spend to save projects (1,125) (875) (2,000) £2m in 25-26 to balance revenue budget (2,000) (2,000) £2m in 26-27 to balance revenue budget (2,000) (2,000) £2m allocation to capital plan (2,000) (2,000) 0 0 0 3.7.2 The £6.875m from the 2024-25 revenue budget saving has been logged within the earmarkings with the commitments noted above to allow expenditure to be made against them. 3.7.3 For Social Work, the SPF saving is £3.053m per annum and is being ring fenced within the Council reserves for utilisation by the HSCP in the future. This amount is also being logged with the earmarkings in 2024-25 to allow expenditure to be made, if required. 3.7.4 As at 31 December 2024, the commitments against the Strathclyde Pension Fund gain for Transformation/Spend to Save projects are as follows: Description Commitment £000 Data Platform Build Consultancy – to build a data platform which will provide a new approach to how ABC organised and accesses its data to support strategic decision making. 44 RIS Service Review – a report was presented to EDI on 20 June 2024 regarding the need for external support to assist in delivering recommendations from Stage 1 of the RIS Review. 150 Conversational AI – towards an investment in a one-year proof of concept contract to implement Conversational AI across the web, voice and social media channels for the council. 31 Total Committed 225
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Kirsty Flanagan Executive Director/Section 95 Officer 17 January 2024 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services APPENDICES Appendix 1 – Earmarked Reserves breakdown of unspent budget Appendix 2 – Earmarked Reserves breakdown of Service Concessions earmarkings For further information contact Carolyn Earl, covering Head of Financial Services Carolyn.Earl@argyll-bute.gov.uk 4. CONCLUSION 4.1 The report outlines the overall reserves and balances for the council covering the purpose and level of each reserve. It also provides detail as to expenditure against earmarked balances held within the General Fund. 4.2 After taking account of the current forecast outturn for 2024-25, the council’s unallocated General Fund balance, over and above the general contingency, is forecast to be £0.198m as at 31 March 2025. 5. IMPLICATIONS 5.1 Policy - Earmarked funds and funds set aside for delivery of Single Outcome Agreement are available to support council policy. 5.2 Financial - Outlines the balances held within the council’s usable and unusable reserves. 5.3 Legal - None. 5.4 HR - None. 5.5 Fairer Scotland Duty- None. 5.5.1 Equalities – protected characteristics - None. 5.5.2 Socio-economic Duty - None. 5.5.3 Islands - None. 5.6 Climate Change - None. 5.7 Risk - A contingency of £6.039m (equivalent to 2% of net expenditure) has been set aside as part of the General Fund. This has been subject to a risk assessment. 5.8 Customer Service - None. 5.9 The Rights of the Child (UNCRC) - None.
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APPENDIX 1 Earmarked Reserves - Unspent Budget As at 31 December 2024 Ref Department Service Description Opening Balance Budget Drawdown Remaining Balance Still to be drawndown in 24-25 Planned to spend in future years Plans for Use Amount Planned to be Spent in 2024-25 Amount Planned to be Spent in 2025-26 Amount Planned to be Spent from 2026/27 onwards 001 Chief Executive's Unit Community Planning Service Concessions - Priorities Investment Fund (Area Plans) 200,000 86,838 113,162 13,162 100,000 As agreed by Policy and Resources Committee on 23 October 23 - drawdown of £200,000 from the Priorities Investment Fund to fund two temporary posts and associated costs to produce meaningful area plans 100,000 100,000 0 006 Chief Executive's Unit Community Planning Communities and Partnership Team 8,855 0 0 0 0 The funds have originated from externally sourced income due to an employee being seconded to the Scottish Community Development Centre (SCDC). The funds will be used to support the team in relation to meeting its priorities of Building Back Better (Communities), Climate Change and the review of the Argyll and Bute Outcome Improvement Plan. This earmarking merged September 24 (per Council Decision) with 003 Community Planning - temp post to support communities. 0 0 0 008 Executive Director (Douglas Hendry) Across Services / Commercial Services Information Management (Estates Survey Work) 12,697 0 0 0 0 To support a number of initiatives in respect of improving the Council's information management in line with the transformation agenda and increasing the pace of change as outlined in the BV Review. The planned initiatives include: Estates Survey work £122k, Digitalisation of Title Deeds £92k, document management and workflow system for Planning, Building Standards and Environmental Health £77k and a balance of funding to explore information management solutions in a strategic and coherent way £209k. This balance relates to Estates Survey Work. Having a procured supplier to provide floor plans at short notice is required to be able to react quickly to requests. If this isn't available Estates would need to go through the procurement process again which would delay any projects by several months. There isn’t a detailed plan to use this resource it is more about being able to react quickly and not delay projects. Council agreed September 24 to merge this with 018 Site Investigation works. 0 0 0 009 Executive Director (Douglas Hendry) Across Services / Education Digital Projects (Supply Staff Booking System) 15,200 9,900 5,300 0 5,300 To deliver a number of Digital Service Transformation Projects with a commitment of £0.035m towards a Supply Staff Booking system. Phase 1 of the project is nearing completion. 9,900 5,300 0 010 Executive Director (Douglas Hendry) Commercial Services Rothesay Pavilion Charity 750,000 0 1,159,204 0 1,159,204 Agreed at Council meeting February 2020,Unspent Budget Earmarking 010 of £750k additional revenue support subject to conditions which seek to minimise the risk to the Council as far as is reasonably practicable including requirement for adequate business and financial management and regular reporting by RPC. This funding is to support Rothesay Pavilion Charity in the first 2 years of the building being operational. Merged September 24 per Council decision with CHORD earmarking 094 £409k which was about building up a provision towards future Council commitment to provide up to £150,000 per annum running costs for Rothesay Pavilion. 0 1,038,608 120,596 012 Executive Director (Douglas Hendry) Commercial Services Rothesay Pavilion Essential repairs 306,400 0 0 0 0 Essential repairs to deal with potential health and safety risks and to avoid further deterioration. Budget provision was approved by the Policy and Resources Committee on 21 August 2014. At Council Meeting September 24, it was agreed to merge the 4 capital earmarkings for Rothesay Pavilion into one line with the narrative indicating the sources. Earmarkings 012, 155, 167 and 170 combined under reference 155. 0 0 0 014 Executive Director (Douglas Hendry) Commercial Services Commercial Investment Manager post and specialist consultant technical resource (previously Asset Management Fund) 104,000 24,758 79,242 79,242 0 The Asset Management Fund has been redirected to Capital going forward but the interest for 2023-24 is to be used towards a Commercial Investment Manager Post. This is because funding of £200k from the Asset Management Fund was agreed at ELT in June 22 for the post, along with specialist consultancy and technical resources that will be required to support early projects. Note, the £104k represents the balance of the £200k commitment. 104,000 0 0
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Ref Department Service Description Opening Balance Budget Drawdown Remaining Balance Still to be drawndown in 24-25 Planned to spend in future years Plans for Use Amount Planned to be Spent in 2024-25 Amount Planned to be Spent in 2025-26 Amount Planned to be Spent from 2026/27 onwards 015 Executive Director (Douglas Hendry) Commercial Services Estates - NDR Revaluation Appeals 59,938 0 59,938 29,969 29,969 The Council agreed to make provision to meet the cost of appealing Non Domestic Rates (NDR) revaluations which were imposed from April 2017. The remaining funds were carried forward to the 2023/24 revaluation cycle however a recent change in position by the Scottish Government may restrict the appeals which can be made. This is still under discussion and Gerald Eve Surveyors have been appointed as specialist advisers on this matter, who are progressing 2023-26 appeals. In the event that appeals are limited there may be an opportunity to utilise Gerald Eve for more general valuation advice subject to Procurement approval. 29,969 29,969 0 016 Executive Director (Douglas Hendry) Commercial Services Mid Argyll Community Pool 30,000 30,000 0 0 0 At the Council Budget meeting on 22 February 2024, the Council committed to a one- off investment of £0.030m to Mid Argyll Community Pool in response to an external funding request. 30,000 0 0 017 Executive Director (Douglas Hendry) Commercial Services MacTaggart Leisure Islay 30,000 30,000 0 0 0 At the Council Budget meeting on 22 February 2024, the Council committed to a one- off investment of £0.030m to MacTaggart Leisure, Islay in response to an external funding request. 30,000 0 0 018 Executive Director (Douglas Hendry) Commercial Services Site Investigation Works 21,013 0 33,710 33,710 0 ER018 24-25 £21k - For Site Investigation works in relation to Tweeddale Street Car Park and Oban Airport Business Park, exploring commercial opportunities to develop the sites and raise revenue income for Argyll and Bute Council. HUB North were instructed to procure contractors to undertake the site investigations these are now complete. The remainder of the budget is intended to be utilised for other site investigation and pre-development works to further develop commercial opportunities across the council area. Agreed by Council September 24 to combine 24-25 ER008 Information Management (Estates Survey Work) - Having a procured supplier to provide floor plans at short notice is required to be able to react quickly to requests. If this isn't available Estates would need to go through the procurement process again which would delay any projects by several months. There isn’t a detailed plan to use this resource it is more about being able to react quickly and not delay projects. 33,710 0 0 021 Executive Director (Douglas Hendry) Education ASN Review 1,255,000 0 1,255,000 565,000 690,000 To fund capital costs of ASN adaptations as part of ASN Review to increase equity of provision across Argyll and Bute. This will be subject to a business case as part of the wider ASN review. Update: Business case now approved and working group set up with quotes for works being carried out. 565,000 690,000 0 024 Executive Director (Douglas Hendry) Education Reduced Teacher Staffing Costs - Strike Action 800,000 800,000 0 0 0 To fund one off savings in 2024-25 from the underspend in staffing from strike action. 800,000 0 0 033 Executive Director (Douglas Hendry) Education (2023 Digital Projects) School WiFi Upgrades 166,924 0 0 0 0 To extend WiFi coverage within school settings through the purchase of additional hardware such as access points, switches and other networking hardware. This will result in more flexible learning spaces and support the growing number of devices within schools. Project now underway and if budget not fully utilised it is hoped that the balance could be diverted to assist with Capital costs of Education Network Paper. 0 0 0 034 Executive Director (Douglas Hendry) Education Education Transformation Fund 144,637 0 0 0 0 At the Council meeting on 27 February 2020, it was agreed to input £400k into Education Digital Learning. The additional funds have been spent in 20/21, 21/22 and 22/23 as part of the ongoing transformation work in the Education service, focussing on digital and virtual learning technology and the development of learning clusters. 0 0 0 036 Executive Director (Douglas Hendry) Education MCR Pathways Pilot 80,000 0 80,000 80,000 0 Funding to support implementation of MCR Pathways mentoring programme within three secondary schools for 2023-24 academic year. Funding will allow the employment of a dedicated Co-ordinator within each setting to develop and implement the programme which is designed to benefit care experienced and other disadvantaged pupils through targeted mentoring support. 80,000 0 0 042 Executive Director (Douglas Hendry) Education Gaelic Specific Grant 30,000 0 30,000 0 30,000 Gaellic Specific Grant £30k - This earmarking refers to the Council contribution towards the Gaelic grant for 22-23 and will fund the costs of Gaelic Language Principal Teacher in 24-25 academic year. 0 30,000 0 043 Executive Director (Douglas Hendry) Education (2023 Digital Projects) Cashless Catering 30,000 4,996 5,004 5,004 0 To support the ongoing implementation of the new cashless catering system during the testing and roll out phase. £20k released back to General Fund Septmber 24 per Council decision as no longer required. 10,000 0 0
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Ref Department Service Description Opening Balance Budget Drawdown Remaining Balance Still to be drawndown in 24-25 Planned to spend in future years Plans for Use Amount Planned to be Spent in 2024-25 Amount Planned to be Spent in 2025-26 Amount Planned to be Spent from 2026/27 onwards 049 Executive Director (Douglas Hendry) Education Skype for Business for Education / Digital Projects (Skype for Business) 10,000 0 0 0 0 To fund the initial capital costs for the implementation of Skype for Business for Education. This will bring the Education service in line with other council departments and will improve staff collaboration and modernise school telephony to deliver the service more efficiently and cost effectively. 0 0 0 052 Executive Director (Douglas Hendry) Education Education Learning Estate Condition Surveys 1,815 0 0 0 0 To fund the delivery of School Core Facts (SCF) compliant Condition Surveys for prioritised School Buildings. Balance of £2k released back to General Fund per Council decision September 24 due to the small amount remaining which can be covered by the service. 0 0 0 059 Executive Director (Douglas Hendry) Legal and Regulatory Support Education Purchasing Officers 210,000 0 210,000 0 210,000 The earmarked funds will be used to fund an education purchasing team within the Procurement Service for two years. The team will embed good procurement practice, train headteachers on current procurement process requirements, develop spend plans that evidence best value. 0 210,000 0 061 Executive Director (Douglas Hendry) Legal and Regulatory Support Information Management (Digitalisation of Title Deeds) 92,000 0 92,000 20,500 71,500 To support a number of initiatives in respect of improving the Council's information management in line with the transformation agenda and increasing the pace of change as outlined in the BV Review. The planned initiatives include: Estates Survey work £122k, Digitalisation of Title Deeds £92k (delay on spending due to COVID-19), document management and workflow system for Planning, Building Standards and Environmental Health £77k and a balance of funding to explore information management solutions in a strategic and coherent way £209k 20,500 51,000 20,500 063 Executive Director (Douglas Hendry) Legal and Regulatory Support (2023 Digital Projects) Replacement of Council Chambers Online Meeting Equipment 50,071 5,353 44,718 0 44,718 Current online meeting system is less than resilient and has failed on a number of occasions, leading to issues at strategic committees. A condition assessment by the incumbent maintenance contractor has highlighted that the current equipment is now at end of life and unsupportable due to the obsolescence of the system. Discussions with ICT have taken place to identify a simpler more robust solution to be procured. NUWAY system and maintenance, system installed, ongoing maintenance contract to 2030 5,353 44,718 0 064 Executive Director (Douglas Hendry) Legal and Regulatory Support Councillor IT Equipment 44,557 0 44,557 22,000 22,557 There is currently no budget for the provision and renewal of IT equipment for members. The earmarking identifies a resource to utilise spend for that purpose to ensure that members have continued support in maintaining and replacing vital IT equipment. 22,000 22,557 0 065 Executive Director (Douglas Hendry) Legal and Regulatory Support Digital Projects: Hybrid Council meetings 43,302 12,000 0 0 0 The funding will be used to maintain the ICT equipment used to support the provision of on-line and hybrid Council meetings. Will be used to fund Public-I licence over 3 years - for livestreaming Council meetings. Balance of £31k released back to General Fund per Council decision September 24 and an associated cost pressure built in to 2025-26 budget cover the routine annual costs. 12,000 0 0 066 Executive Director (Douglas Hendry) Legal and Regulatory Support Debt Counselling & Welfare Rights 21,452 5,265 735 735 0 To meet the cost of a Debt Counselling and Welfare Rights Management System. Balance of £15k released back to General Fund per Council decision September 24 and an associated cost pressure built in to 2025-26 budget cover the routine annual costs. 6,000 0 0 067 Executive Director (Douglas Hendry) Non Departmental / Legal and Regulatory Services Community Resilience Fund 71,999 0 5,000 5,000 0 Fund established in 2012/13 to be spent over more than one year. Fund reduced at the Council meeting on 11 February 2016. Used to cover the costs of emergency phone lines and a contract with Aggreko for generators if required in an Emergency Planning/Civil contingencies incident. These costs amount to approximately £5k per year. Balance of £67k released back to General Fund per Council decision September 24 and an associated cost pressure built in to 2025-26 budget cover the routine annual costs. 5,000 0 0
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Ref Department Service Description Opening Balance Budget Drawdown Remaining Balance Still to be drawndown in 24-25 Planned to spend in future years Plans for Use Amount Planned to be Spent in 2024-25 Amount Planned to be Spent in 2025-26 Amount Planned to be Spent from 2026/27 onwards 068 Executive Director (Kirsty Flanagan) Across Services / Customer Support Services Digital Projects (Increase in Schools Bandwidth) 63,455 0 63,455 0 63,455 To complete one of a number of Digital Service Transformation projects with a commitment of £0.064m to increase Schools Bandwidth. Committed for MS 365 project - D Logan/I Jackson. Paper went to ELT in Dec 24. 0 0 63,455 069 Executive Director (Kirsty Flanagan) Across Services / Customer Support Services Digital Projects (Replacement Learning Management System) 11,470 0 11,470 11,470 0 To deliver a number of Digital Service Transformation Projects with an original commitment of £0.030m towards a replacement Learning Management System £0.030m. This money will be used to pay for consultancy for an interface between itrent and totara. Profiled for 24/25 based on decision to do a phased implementation of itrent. 11,470 0 0 070 Executive Director (Kirsty Flanagan) Across Services / Development and Economic Growth Information Management (Document Management and Workflow for Planning, Building Standards and Environmental Health) 21,177 0 21,177 21,177 0 Hoping to implement the replacement for IDOX in March 2024 but there have been severe issues/delays with the new programme . Dec 24 Project has been scrapped as it was not working. Awaiting procurement to write termination of contract legal documents, until this is completed we will not know if any further cost are due. 21,177 0 0 073 Executive Director (Kirsty Flanagan) Customer Support Services (2023 Digital Projects) iTrent Project 320,555 0 320,555 320,555 0 Combination of parallel running of the new iTrent system alongside the legacy systems for up to 18 months whilst iTrent is implemented and additional staffing resource to implement iTrent in late June 2024 and support staff for the first 3 months of operation through summer 2024. Total includes £73k from Financial services for funding additional staffing resource to implement the payroll components of the iTrent HR and Payroll System by the end of June 2024 and support staff for the first 3 months of operation during summer 2024. 320,555 0 0 075 Executive Director (Kirsty Flanagan) Customer Support Services Growing our Own and Modern Apprentices 109,150 0 69,150 44,000 25,150 Funding earmarked to support trainee development and modern apprenticeship opportunities based on priority workforce risk areas. A Trainee Regulatory Services post has been proposed by the manager who was unable to secure a suitable candidate for the original advert. The spend would be spread over 24/25 and 25/26 once a suitable candidate is in post. Balance of £40k released back to General Fund per Council decision September 24 as only £69k is still required for the intended purpose. 44,000 25,150 0 076 Executive Director (Kirsty Flanagan) Customer Support Services Security Operations Centre Subscription 71,188 0 71,188 0 71,188 There is a requirement to pay for a 3-year subscription at £60,000 per annum with a cost pressure being added to the ICT revenue budget to cover the costs from 2026-27 onwards. 0 71,188 0 077 Executive Director (Kirsty Flanagan) Customer Support Services (2023 Digital Projects) Resilient Website Project 60,000 14,000 46,000 0 46,000 Cybersecurity action to move to a cloud based website platform that would improve resilience and enable service continuity in the event of a cyber attack. Procurement in progress for resilient website solution and Scotgov Cloud Services Project providing input. Contract Award expected by end 2023. Procurement in progress for resilient website solution. Contract Award expected FQ1 2024-5. 3 year contract has been awarded to BigBlueDoor. 14k spend 24/25, 23k in 25/26 and 23k in 26/27. 14,000 23,000 23,000 078 Executive Director (Kirsty Flanagan) Customer Support Services (2023 Digital Projects) Digital Project Officer 34,121 0 34,121 34,121 0 Employ a temporary Digital Project Officer as part of OD changes - additional member of staff required to action changes, unable to recruit so existing staff increasing hours. 34,121 0 0 079 Executive Director (Kirsty Flanagan) Customer Support Services Implementation of Gaelic Language Plan 30,000 0 30,000 2,000 28,000 Agreed at Council Meeting February 2021. Provision of funding for delivery and implementation of the council’s Gaelic Language Plan in recognition of the contribution that Gaelic makes to economic growth and to the tourism sector, and to enable delivery of key activities within the plan which currently receive no revenue funding. In discussion with Bord na Gaidhlig about a 3-year Gaelic Plan funding programme as opposed to individual grant applications for specific projects. This earmarking would be used to provide match funding for that 3 year programme of projects. 3 year match funding approved December 2024. 2,000 28,000 0
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Ref Department Service Description Opening Balance Budget Drawdown Remaining Balance Still to be drawndown in 24-25 Planned to spend in future years Plans for Use Amount Planned to be Spent in 2024-25 Amount Planned to be Spent in 2025-26 Amount Planned to be Spent from 2026/27 onwards 080 Executive Director (Kirsty Flanagan) Customer Support Services Business Development Training 27,025 20,397 26,064 -397 26,461 £27k budget from original Business Development Training earmarking 080 remaining at 31/03/24. This budget is funding ongoing leadership development, coaching, action learning sets and commissioned training including Priority Management. Agreed by Council September 24 to merge with 24-25 EMR 082 - In order to maximise the opportunities and efficiencies of digital learning, this funding will be used to support the extension of digital learning in order to deliver the Digital Learning Strategy, which was approved in FQ4 20/21. This money is to support the additional digital learning capacity required to build online elements of AB365 and other key digital learning as we increase our digital learning offering linked to the digital skills survey and review of corporate training. Delays in recruitment meant this has been reprofiled for spend in 24/25. 20,000 26,461 0 082 Executive Director (Kirsty Flanagan) Customer Support Services Learning and Development 19,436 0 0 0 0 In order to maximise the opportunities and efficiencies of digital learning, this funding will be used to support the extension of digital learning in order to deliver the Digital Learning Strategy, which was approved in FQ4 20/21. This money is to support the additional digital learning capacity required to build online elements of AB365 and other key digital learning as we increase our digital learning offering linked to the digital skills survey and review of corporate training. Delays in recruitment meant this has been reprofiled for spend in 24/25. Agreed by Council September 24 to merge with 24-25 080 Business Development Training. 0 0 0 083 Executive Director (Kirsty Flanagan) Customer Support Services (2023 Digital Projects) Digital Engagement Services Developer 15,677 13,504 2,173 2,173 0 To fund 50% of a new temporary LGE10 post. The post is a Digital Engagement Services Developer that will be provide capacity to deliver service efficiencies through the use of the new CREATE/RPA software. The other 50% of the post can be funded from a current vacancy. 15,677 0 0 085 Executive Director (Kirsty Flanagan) Customer Support Services Establishing HR Service Centre 13,824 0 0 0 0 To facilitate the implementation of technical efficiency improvements and new processes. This money will be used to support phase two of the itrent project. Spend reprofiled for 2024/25 following delays in itrent project. Agreed by Council September 24 to merge this with earmarking 074 Skills Development Scotland. 0 0 0 096 Executive Director (Kirsty Flanagan) Development & Economic Growth Planning Income 60,000 0 60,000 60,000 0 To fund additional resources to support and develop the Council's planning service. Whilst recruitment issues within Argyll and Bute were largely been resolved during 2022/23, the requirement for the operation of the DM Service with reduced staffing levels over an extended period of time, coupled with the increasing demand for development post-Covid, and uncertainty caused by the introduction of National Planning Framework 4 has given rise to a substantial backlog of case work and has had a significant adverse impact on processing times for planning applications. Plans to utilise this on additional staff costs in 24-25 in order to reduce the backlog. Dec 24 draw down likely March 25 60,000 0 0 103 Executive Director (Kirsty Flanagan) Development and Economic Growth Oban TIF (Tax Incremental Financing) 214,158 0 214,158 214,158 0 Will be used to fund the TIF Programme office for a further 3 years as well as the programme office for Rural Growth Deal beyond the funding that was agreed at Council for this in February 2021. 214,158 0 0 105 Executive Director (Kirsty Flanagan) Development and Economic Growth Service Concessions - Priorities Investment Fund (Project Officer for Housing Emergency) 200,000 0 200,000 70,000 130,000 As agreed by Policy and Resources Committee on 15 February 2024 - drawdown of £200,000 from the Priorities Investment Fund to fund a Project Officer to assist in accelerating the work of the Housing Emergency. Dec 24 post holder now in place awaiting further instruction from Budget holder 70,000 130,000 0 107 Executive Director (Kirsty Flanagan) Development and Economic Growth Strategic Events & Festivals 41,260 15,100 26,160 26,160 0 At the Council meeting on 25 February 21, a decision was taken to agree £90k funding for Events and Festivals for 22/23, in order that the application process can commence during 21/22 and that this agreed figure be augmented by any underspend remaining from the 20/21 financial year. At 24 February 22, decision made to agree £90k for 23/24, in order that the application process can commence during 22/23 and that this agreed figure be augmented by any underspend remaining from the 21/22 financial year. Applications have been received and payments will be made in 23-24. Final balance (£41,260) to be spent in 24/25 Dec 24 cost to date drwn down 41,260 0 0 112 Executive Director (Kirsty Flanagan) Development and Economic Growth Screen Machine 28,000 0 28,000 28,000 0 At the Council Budget meeting on 22 February 2024, the Council committed to a one- off investment of £0.028m to Screen Machine in response to an external funding request. Dec 24 Grant offer has now been sent out but payment now not due until Q1 25/26 28,000 0 0
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Ref Department Service Description Opening Balance Budget Drawdown Remaining Balance Still to be drawndown in 24-25 Planned to spend in future years Plans for Use Amount Planned to be Spent in 2024-25 Amount Planned to be Spent in 2025-26 Amount Planned to be Spent from 2026/27 onwards 120 Executive Director (Kirsty Flanagan) Development and Economic Growth International Eight Metre Association World Cup 10,000 10,000 0 0 0 At the Council Budget meeting on 22 February 2024, the Council committed to a one- off investment of £0.010m to the International Eight Metre World Cup in response to an external funding request. 10,000 0 0 124 Executive Director (Kirsty Flanagan) Financial Services Revenue and Benefits BPR - extra staff to implement savings targets 86,955 0 86,955 0 86,955 On 23 February 2023, the Council agreed to the implementation of savings option FIS2324-002 in relation to the Revenue and Benefits - Income Generation and Business Process Review. This included an extra 4 FTE of staff. Delays in recruitment have caused slippage in the allocated budget for these posts. 0 86,955 0 127 Executive Director (Kirsty Flanagan) Financial Services Scotland Loves Local 57,453 57,453 0 0 0 As agreed by Council 22 February 24, a £57,453 underspend from the Scotland Loves Local scheme to be allocated to support measures to help with the costs of living by funding member organisations of the Community Food Forum, ALI Energy, Argyll and Bute Citizens Advice Bureau and Bute Advice Centre, with detailed proposals to be agreed by the Executive Director with responsibility for Finance, in consultation with the Leader, Depute Leader and Leader of the Largest Opposition Group. Details of the agreed spend are to be reported to elected members. 57,453 0 0 129 Executive Director (Kirsty Flanagan) Financial Services Financial Systems 33,748 0 33,748 33,748 0 The council is required to implement the IFRS16 Leases accounting standard from the 1st April 2024. 33,748 0 0 130 Executive Director (Kirsty Flanagan) Financial Services Accounting and Budgeting Team Resilience 47,883 7,066 40,817 934 39,883 Training and examination fees for 6 staff who are currently undertaking their professional CIPFA/ACCA training. In addition funding the further training of 1 of our auditors and providing finance business partner training to a group of our existing professional staff. 8,000 8,000 31,883 134 Executive Director (Kirsty Flanagan) Roads & Infrastructure Waste Variation Monies 1,241,752 108,524 1,356,489 353,855 1,002,634 Waste Variation Monies - £1.242m balance at 31/03/24 (Original EMR134): This will be used to fund/part-fund various waste infrastructure projects that will support the council’s compliance with the 2026 ban on the Landfill of Biodegradable Municipal Waste. £462K in 2024-25 consisting of :- Island restoration/capping (£250K Gartbreck completed will be tsf to capital), Helensburgh transfer station, recycling improve. fund (island sites) design costs, recycling campaign publicity, technology trial on blue bin recycling participation, consultancy costs relating to additional monitoring data for SEPA and Consultancy follow on waste options appraisal and recycling campaign material. £993K in 2025-26 consisting of:- Island restoration/capping, Helensburgh transfer station design costs pending outcome of business case, consultancy costs relating to additional monitoring data for SEPA, recycling improve. fund (island sites) design costs and waste PPP site conversion. £10K in 2026-27 consisting of:- consultancy costs relating to additional monitoring data for SEPA. Council agreed to merge with EMR149 September 24 - to be used to assist with the Council's compliance with the 2026 ban on the Landfill of Biodegradable Municipal Waste and supporting the overall Waste Strategy. 462,379 992,634 10,000 138 Executive Director (Kirsty Flanagan) Roads & Infrastructure Service Concessions - Priorities Investment Fund (Strategic Development Framework) 450,000 0 450,000 225,000 225,000 As agreed by Policy and Resources Committee on 15 February 2024 - drawdown of £450,000 to procure consultancy support to assist in driving forward the Strategic Development Frameworks. 225,000 225,000 0 141 Executive Director (Kirsty Flanagan) Roads & Infrastructure 3G pitches / Tarbert Sports Pitches 287,835 81,158 206,677 7,149 199,528 In November 2018, the Council agreed to a maintenance funding package to be progressed for a number of 3G pitches including Tarbert. This funding will provide an estimated 6.5 years’ worth of ongoing maintenance up to 2025-26. There is the potential to extend the continued upkeep of the pitches until 2026-27 given the earmarking available will not be fully utilised by the end of 2025-26. However, there will be potential redundancy costs for 2 employees that will need to be covered from the remaining balance. Paper on proposed extension to be prepared. 88,307 199,528 0 142 Executive Director (Kirsty Flanagan) Roads & Infrastructure Green Transport Initiatives 140,000 0 140,000 140,000 0 At the Council meeting on 27 February 2020, it was agreed to input £400k in Green transport, investment in footway and cycle path maintenance supporting the healthy wellbeing and green agenda. Spend has been delayed due to COVID and this will be taken forward in 23/24. £260k Footways Reconstruction programme now spent and will be drawn down against capital programme during 23/24. £140k Ardrishaig North Project spent in 22/23 and drawn down in 24/25 (capital expenditure). 140,000 0 0
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Ref Department Service Description Opening Balance Budget Drawdown Remaining Balance Still to be drawndown in 24-25 Planned to spend in future years Plans for Use Amount Planned to be Spent in 2024-25 Amount Planned to be Spent in 2025-26 Amount Planned to be Spent from 2026/27 onwards 146 Executive Director (Kirsty Flanagan) Roads & Infrastructure Climate Change 40,942 0 40,942 40,942 0 At the Council meeting on 27 February 2020, it was agreed to input £500k budget to mitigate the impacts of weather related damage and climate change with specific emphasis on gully cleaning and drainage improvements. Spend has been delayed due to COVID and the intention is to spend the funds on 2 Gully Motors plus staff over next 2 years. Vehicles have been received and budget will be drawn down to cover their cost. The remaining budget will be used towards running the vehicles. 40,942 0 0 147 Executive Director (Kirsty Flanagan) Roads & Infrastructure Amenity Services introduction of management information system 28,099 0 0 0 0 Delay with introduction of amenity time recording system due to increased costs. Discussions ongoing to find alternative cheaper solution. The software/system being introduced by HR/Payroll during 2023-24 offers a time-recording facility. Although not included in the current HR/Payroll spec, once the new system is up and running, the proposal would be to investigate the time-recording system to see if viable for amenity time recording purposes. Balance released back to General Fund per Council decision September 24 as there is no plan to take this forward and this will be re-assessed following the introduction of the HR/Payroll system. 0 0 0 149 Executive Director (Kirsty Flanagan) Roads & Infrastructure Services (2023 Contract Inflation Adjustments) Waste PPP 223,261 0 0 0 0 Proposal to merge with ref 134, to be used to assist with the Council's compliance with the 2026 ban on the Landfill of Biodegradable Municipal Waste and supporting the overall Waste Strategy. Council agreed to merge 134 and 149 September 24. 0 0 0 151 Executive Director (Kirsty Flanagan) Roads and Infrastructure Services Weather Incident costs not covered by Bellwin claim. 198,000 0 198,000 198,000 0 £839k was set aside at budget meeting in February 2024 as part of the unallocated general fund balance workings to cover the weather incident costs not covered by the Bellwin Claim. As £641k was utilised during 23-24, the balance of £0.198m is being earmarked for costs expected in 24-25. 198,000 0 0 154 Non Departmental Non Departmental Service Concessions - Replace previous loans fund principal repayment holiday 5,400,000 0 5,400,000 5,400,000 0 As agreed at Council meeting 23 February 2023 - The one-off retrospective benefit will be used to replace exercising the principal repayment holiday that was previously agreed by Council. 5,400,000 0 0 164 Non Departmental Non Departmental Pay Inflation Contingency 1,700,000 0 1,700,000 1,700,000 0 Negotiations for the 2024/25 pay award are ongoing but initial discussions suggest it will be beyond the 3% increase currently built into the budget outlook. £1.7m equates to approximately a 1% pay rise therefore providing a contingency at this level is prudent 1,700,000 0 0 170 Non Departmental Non Departmental Underwriting development of Rothesay Pavilion 1,000,000 0 0 0 0 Funding to meet additional costs identified as necessary for the refurbishment of Rothesay Pavilion (£1m). At Council Meeting September 24, it was agreed to merge the 4 capital earmarkings for Rothesay Pavilion into one line with the narrative indicating the sources. Earmarkings 012, 155, 167 and 170 combined under reference 155. 0 0 0 171 Non Departmental Non Departmental Oban TIF (Tax Incremental Financing - Excess NDR) 875,651 0 875,651 0 875,651 This is the surplus NDR after paying all Loans Charges in respect of TIF infrastructure projects. This fund will be used in the future as TIF projects are delivered. Discussions in place on future ff the next TIF project (Oban Airport) which will utilise this reserve. If the project does not go ahead, we will need to return NDR to Scottish Government 0 875,651 0 180 Non Departmental Non Departmental Treasury Gain 294,000 294,000 0 0 0 To fund one off operational saving 202425 003 as agreed by Council when setting 2024/25 budget in February 2024. 294,000 0 0 184 Non Departmental Non Departmental Information Management (Balance of Funding) 200,469 0 200,469 200,469 0 To support a number of initiatives in respect of improving the Council's information management in line with the transformation agenda and increasing the pace of change as outlined in the BV Review. This was the balance of funding to explore information management solutions in a strategic and coherent way £209k. Committed for MS 365 project - D Logan/I Jackson. Paper went to DMT in Dec. 200,469 0 0 186 Non Departmental Non Departmental Engagement with Hub North re provision of services for older adults and vulnerable people across Argyll and Bute 100,000 0 100,000 30,000 70,000 At the Council budget meeting February 23, an allocation of £0.1m from the Unallocated General Fund balance for the Health and Social Care Partnership to engage, in partnership with the Council, with Hub North to develop a strategic business case in relation to the provision of services for older adults and other vulnerable people across Argyll and Bute. It is intended that this will be spent on an on-going business case and options appraisal work with Hub and that a sizable proportion will be spent during 24/25 30,000 70,000 0
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Ref Department Service Description Opening Balance Budget Drawdown Remaining Balance Still to be drawndown in 24-25 Planned to spend in future years Plans for Use Amount Planned to be Spent in 2024-25 Amount Planned to be Spent in 2025-26 Amount Planned to be Spent from 2026/27 onwards 187 Non Departmental Non Departmental Spend to Save Route Optimisation Software 82,775 0 82,775 4,800 77,975 One-off re-profiling gain as a result of the loans fund review to fund known liabilities/cost pressures as agreed at budget setting meeting in February 2020. The route optimisation project has been delayed due to staff turnover and absences, recent meetings involving the Council and Routewear have set out future objectives and the project has been extended to 2025-26. 4,800 77,975 0 188 Non Departmental Non Departmental CHARTS 80,000 55,000 25,000 25,000 0 At the Council Budget meeting on 22 February 2024, the Council committed to £0.075m one-off investment in CHARTS in response to an external funding request will be spent in 24-25. There remains £0.005m from a COVID earmarking for CHARTS as well. 80,000 0 0 194a Non Departmental Non Departmental Council Strathclyde Pension Fund Saving 24- 25 (£2m to balance 24-25 budget) 2,000,000 0 0 0 This is part of the revenue budget for 24-25 and is the saving on pension budgets resulting from the drop in employers pension rate. The total of £6.875m is split as follows: £2m to balance the budget, £3.75m allocation to capital plan, per budget meeting 22 February 24 and the balance of £1.125m going towards what will be total of £2m over the two years pot to be directed to transformation and projects that will save revenue in the future. 2,000,000 194b Non Departmental Non Departmental Council Strathclyde Pension Fund Saving 24- 25 (£3.75m allocation to capital plan) 0 3,750,000 0 3,750,000 This is part of the revenue budget for 24-25 and is the saving on pension budgets resulting from the drop in employers pension rate. The total of £6.875m is split as follows: £2m to balance the budget, £3.75m allocation to capital plan, per budget meeting 22 February 24 and the balance of £1.125m going towards what will be total of £2m over the two years pot to be directed to transformation and projects that will save revenue in the future. 0 3,750,000 194c Non Departmental Non Departmental Council Strathclyde Pension Fund Saving 24- 25 (£2m to be directed to transformation and projects that will save revenue in the future) 0 1,125,000 0 1,125,000 This is part of the revenue budget for 24-25 and is the saving on pension budgets resulting from the drop in employers pension rate. The total of £6.875m is split as follows: £2m to balance the budget, £3.75m allocation to capital plan, per budget meeting 22 February 24 and the balance of £1.125m going towards what will be total of £2m over the two years pot to be directed to transformation and projects that will save revenue in the future. 1,125,000 195 Non Departmental / Social Work Non Departmental Social Work Strathclyde Pension Fund Saving 24-25 0 3,053,000 0 3,053,000 This is part of the revenue budget for 24-25 and is the saving on Social Work pension budgets resulting from the drop in employers pension rate - to be held in Council reserves for utilisation by the HSCP in future. 3,053,000 196 Non Departmental Non Departmental Capital Plan 0 1,875,000 0 1,875,000 At the budget meeting on 22 February 2024, Council agreed to transfer £1.875m from the revenue budget over to the capital plan. 1,875,000 18,509,179 3,685,312 25,181,764 10,047,636 15,134,128 13,732,948 5,061,694 10,072,434
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Classification: OFFICIAL# APPENDIX 2 Earmarked Reserves - Service Concessions As at 31 December 2024 Ref Department Service Description Opening Balance Budget Drawdown Remaining Balance Still to be drawndown in 24-25 Planned to spend in future years Plans for Use Amount Planned to be Spent in 2024-25 Amount Planned to be Spent in 2025-26 Amount Planned to be Spent from 2026/27 onwards 001 Chief Executive's Unit Community Planning Service Concessions - Priorities Investment Fund (Area Plans) 200,000 86,838 113,162 13,162 100,000 As agreed by Policy and Resources Committee on 23 October 23 - drawdown of £200,000 from the Priorities Investment Fund to fund two temporary posts and associated costs to produce meaningful area plans 100,000 100,000 0 105 Executive Director (Kirsty Flanagan) Development and Economic Growth Service Concessions - Priorities Investment Fund (Project Officer for Housing Emergency) 200,000 0 200,000 70,000 130,000 As agreed by Policy and Resources Committee on 15 February 2024 - drawdown of £200,000 from the Priorities Investment Fund to fund a Project Officer to assist in accelerating the work of the Housing Emergency. Dec 24 post holder now in place awaiting further instruction from Budget holder 70,000 130,000 0 133 Executive Director (Kirsty Flanagan) Roads & Infrastructure Service Concessions - Biodegradable Municipal Waste (BMW) Ban 3,500,000 0 3,500,000 0 3,500,000 As agreed at Council meeting 23 February 2023 - Ensuring Argyll and Bute is able to better address the challenges faced by a remote/rural/ island region in complying with the forthcoming national BMW ban. £1.5m earmarked for revenue pressures with £2m for capital projects, mainly a Waste Transfer Station in Helensburgh. 0 3,500,000 0 138 Executive Director (Kirsty Flanagan) Roads & Infrastructure Service Concessions - Priorities Investment Fund (Strategic Development Framework) 450,000 0 450,000 225,000 225,000 As agreed by Policy and Resources Committee on 15 February 2024 - drawdown of £450,000 to procure consultancy support to assist in driving forward the Strategic Development Frameworks. 225,000 225,000 0 153 Non Departmental Non Departmental Service Concessions - Learning Estate Investment Strategy 8,000,000 0 8,000,000 0 8,000,000 As agreed at Council meeting 23 February 2023 - Signalling council’s commitment to working in partnership to secure new schools for Argyll and Bute, through substantial investment to support future-proofing of Argyll and Bute’s schools estate. 0 8,000,000 0 154 Non Departmental Non Departmental Service Concessions - Replace previous loans fund principal repayment holiday 5,400,000 0 5,400,000 5,400,000 0 As agreed at Council meeting 23 February 2023 - The one-off retrospective benefit will be used to replace exercising the principal repayment holiday that was previously agreed by Council. 5,400,000 0 0 155 Non Departmental Non Departmental Rothesay Pavilion - Capital Spends (previously service concession) 7,438,400 0 7,438,400 1,000,000 6,438,400 Original earmarking 155 was called Service Concessions - Rothesay Pavilion but renamed to Rothesay Pavilion - Capital spends. At Council Meeting September 24, it was agreed to merge the 4 capital earmarkings for Rothesay Pavilion into one line with the narrative indicating the sources. Earmarkings 012, 155, 167 and 170 combined under reference 155. ER155 - Service Concessions - Rothesay Pavilion £4.772m - As agreed at Council meeting 23 February 2023 - Building on previous commitments to securing a future for this building of international, national and local significance with additional contribution to the overall funding target which requires collective action; helping project to progress towards success with funding that supports completion of certain work stages and securing wind/watertight status. ER012 - Rothesay Pavilion Essential Repairs £306k - Essential repairs to deal with potential health and safety risks and to avoid further deterioration. Budget provision was approved by the Policy and Resources Committee on 21 August 2014. ER167 - Rothesay Pavilion (Recovery and Renewal Fund) - £1.360m- As agreed at Council on 24 February 2022, this is provision for future recovery, regeneration and renewal, as well as any future pressures which may arise following the Covid-19 pandemic through a dedicated Recovery and Renewal Fund. ER170 - Underwriting development of Rothesay Pavilion - Funding to meet additional costs identified as necessary for the refurbishment of Rothesay Pavilion (£1m). 1,000,000 6,438,400 0 156 Non Departmental Non Departmental Service Concessions - Priorities Investment Fund 4,742,000 758,000 3,984,000 0 3,984,000 As agreed at Council meeting 23 February 2023 - Safeguarding future investment in Priorities for Argyll and Bute by making long-term use of service concession gain to establish dedicated fund to lever in, secure and support key strategic investments in this year and future years. 758,000 3,984,000 0 157 Non Departmental Non Departmental Service Concessions - Roads Investment to Capital 3,546,000 0 3,546,000 0 3,546,000 As agreed at Council meeting 23 February 2023 - Augmenting overall allocation for roads repair and maintenance programme with additional funds to bring up to £8m total investment for 2024/25. 0 3,546,000 0
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Classification: OFFICIAL# 163 Non Departmental Non Departmental Service Concessions - Capital Projects Inflation Pressures 2,000,000 0 2,000,000 0 2,000,000 As agreed at Council meeting 23 February 2023 -Boosting resilience of Capital Programme and providing added support as required for key capital/infrastructure projects - £2m. Further allocation agreed Council meeting 22 February 24 - increase capital contract earmarking to protect current capital projects in plan £0.297m 0 2,000,000 0 169 Non Departmental Non Departmental Service Concessions - Priorities Investment Fund (Capital Programme) 1,028,000 0 1,028,000 0 1,028,000 As agreed by Council on 22 February 2024- transfer of £1,028,000 from the Priorities Investment Fund to the Capital plan 1,028,000 0 173 Non Departmental Non Departmental Service Concessions - New refuse collection vehicles 700,000 0 700,000 700,000 0 As agreed at Council meeting 23 February 2023 - Enhancing waste and recycling uplift arrangements through placing orders for new refuse vehicles. 700,000 0 0 175 Non Departmental Non Departmental Service Concessions - Climate Change 640,000 27,185 612,815 0 612,815 As agreed at Council meeting 23 February 2023 - Continuing our track record of investing in climate change with funding to further enhance school estate climate change measures, with allocations for primary and secondary schools across the area in Campbeltown, Dunoon, Helensburgh, Lochgilphead, Oban and Rothesay. 27,185 612,815 0 182 Non Departmental Non Departmental Service Concessions - New Jet Patcher Vehicle 250,000 0 250,000 250,000 0 As agreed at Council meeting 23 February 2023 - Complementing multi- million pound capital investment in roads repair and maintenance with new jet patcher order to support delivery of programme. 250,000 0 0 183 Non Departmental Non Departmental Service Concessions - New Road Marking Vehicle 230,000 0 230,000 0 230,000 As agreed at Council meeting 23 February 2023 - Completing suite of investments in new fleet procurement, to support delivery of roads repair and maintenance programme, with order for additional road marking vehicle. 0 230,000 0 38,324,400 872,023 37,452,377 7,658,162 29,794,215 8,530,185 29,794,215 0