6. 2023 03 21 Revenue Budget Financial Performance to 31 January 2023 V3
North Ayrshire Council · 21 March 2023
Back to Cabinet — 21 March 2023 and its agenda
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NORTH AYRSHIRE COUNCIL 21 March 2023 Cabinet Title: Revenue Budget 2022/23 : Financial Performance to 31 January 2023 Purpose: To advise Cabinet of the financial performance for the Council at 31 January 2023. Recommendation: That Cabinet agrees to: (a) note the information and financial projections outlined in the report; (b) approve the earmarking of £1.361m identified at 2.5 to meet future year commitments; (c) note the latest financial projection for the Health and Social Care Partnership highlighted at 2.6; (d) note the current projected deficit position of KA Leisure; and (e) approve the virements detailed in Appendix 7. 1. Executive Summary 1.1 The General Services Revenue Estimates for 2022/23 were approved by Council on 2 March 2022. The Housing Revenue Account (HRA) Revenue Budget for 2022/23 was approved by Council on 16 February 2022. 1.2 As part of the monitoring procedures to keep the Cabinet informed of the financial performance of the Council, financial performance reports are presented on a regular basis. This is the fourth report for 2022/23 and covers the period to the end of January 2023 (Period 10). Projections have been made to the year-end. 1.3 At Period 10 the General Fund is forecasting a net in-year underspend of (£0.923m), (0.2%), after transferring resources to/from earmarked reserves. 1.4 The Housing Revenue Account is forecasting a net in-year underspend of (£0.239m), (0.4%).
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1.5 At the end of January 2023, the Health and Social Care Partnership is projecting a year-end underspend of (£1.181m) for 2022/23, an increase of (£1.104m) from the previously reported position. The Council services element is reporting a projected underspend of (£1.541m), which is a movement of (£1.670m) from the previously reported overspend. This has been partly offset by a projected overspend in relation to the Health services element of £0.360m, which is a movement of £0.566m over the same period. 1.6 KA Leisure has indicated a projected trading deficit of £0.191m for 2022/23. It is anticipated that the additional financial support to KA Leisure will be drawn from previously approved earmarked funds. 1.7 Significant risks to the reported position have been identified arising from inflationary pressures in relation to energy costs and essential commodities, including food and vehicle fuel, and the full impact of the 2022/23 teachers’ pay settlement. These pressures are likely to be offset in the short term by reductions arising from the industrial action by teacher unions. The financial impact of the industrial action up to the end of January 2023 has been included within the current projections. However, the industrial action during February and March will impact on this position further and this will continue to be assessed and quantified. The net impact of these in terms of the utilisation of Council reserves and knock on effect on future budget gaps will continue to be monitored and reported to Cabinet as appropriate. 2. Background General Fund 2.1 The Council set a breakeven budget for 2022/23. In addition to the budget approved on 2 March 2022, earmarked funds of £31.875m were carried forward from 2021/22 for service expenditure in 2022/23 and are reflected in the figures within the 2022/23 financial performance reports as they are drawn down. 2.2 Current financial projections indicate that a net in-year underspend of (£0.923m), (0.2%), net of transfers to/from reserves, is anticipated for the year to 31 March 2023. This is an increase of (£0.875m) over the previously reported position.
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2.3 Details of the current financial projections are summarised in the following table: 2.4 The reported Planned Income includes a number of adjustments to Scottish Government funding from that included in the approved budget, as detailed in the following table: Appendix No Annual Budget Projection to 31 March 2023 Projected Variance for year (Fav)/Adv Projected Variance @ Period 8 (Fav)/Adv Movement Note Service Expenditure £000's £000's £000's £000's £000's Chief Executives 1 20,614 20,220 (394) (44) (350) (i) Communities 2 176,681 173,459 (3,222) (2,122) (1,100) (ii) Place 3 52,843 55,039 2,196 2,846 (650) (iii) Other Corporate Services 4 31,487 28,288 (3,199) (3,074) (125) (iv) Sub Total 281,625 277,006 (4,619) (2,394) (2,225) Health and Social Care Partnership 8 118,859 118,859 - - - 2.6 Balance for Services 400,484 395,865 (4,619) (2,394) (2,225) Financing Charges 5 12,366 12,366 - - - Contribution to Loans Fund Reserve 5 3,631 3,631 - - - Total Planned Expenditure 416,481 411,862 (4,619) (2,394) (2,225) Planned Income Aggregate External Finance 5 (347,331) (347,331) - - - Council Tax 5 (62,100) (62,066) 34 45 (11) Use of Earmarked Funds 5 (7,050) (7,050) - - - Total Planned Income (416,481) (416,447) 34 45 (11) Net Expenditure/ (Income) - (4,585) (4,585) (2,349) (2,236) Carried Forward Funds - 3,662 3,662 2,301 1,361 Revised Net Expenditure/(Income) - (923) (923) (48) (875) Non Domestic Rates Specific Grants TOTAL AEF Planned Income £000's £000's £000's Approved Budget 30 November 2022 (287,267) (37,575) (21,259) (346,101) Movements: Music Tuition Charging Revision 27 27 Scottish Child Bridging Payments (1,005) (1,005) DHP - Benefit Cap and Admin (76) (76) Educational Psychologists (23) (23) Additional Teacher Induction Funding (207) (207) CTR Data Extraction Funding (9) (9) NDR - ALEO Adjustment 63 63 - Revised Planned Income (288,560) (37,512) (21,259) (347,331) General Revenue Grant £000's
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2.5 Commentary on Significant Movements from the Approved Budget The Council's overall financial forecast against the revised budget is a net breakeven position. Although this is consistent with the previously reported position, it includes a number of movements at a service level. A brief explanation of the significant movements from the previous forecasts are outlined as follows: (i) Chief Executive’s – underspend of (£0.394m), an increase of (£0.350m) from the previously reported underspend. The movement since Period 8 is primarily related to: • Reduced expenditure on software licenses, (£0.163m); • Increased net income linked to Licensing and ICT hardware disposals, (£0.067m); and • Vacancy management across services, (£0.036m). It is requested that £0.233m of the projected underspend is earmarked to support anticipated additional expenditure during 2023/24, including: • ICT LAN and Telephony projects and reinvestment, £0.166m; • Democratic Services pressures, £0.034m; and • Contributions to non-recurring 2023/24 savings proposals across ICT and Democratic Services, £0.033m. (ii) Communities – underspend of (£3.222m), an increase of (£1.100m) from the previously reported underspend. The movement since Period 8 is primarily related to: • Impact of industrial action by Teachers, (£0.515m); • Lower than anticipated expenditure on Early Learning and Childcare funded providers due to a lower than anticipated uptake of places, (0.500m); • Vacancy management across services, (£0.272m); and • Lower than anticipated expenditure on food costs and Early Learning and Childcare provision within Facilities Management, (£0.105m). These have been partly offset by: • Increased residential childcare and external day placements, £0.273m. It is requested that a further £0.988m is earmarked to support anticipated additional expenditure during 2023/24, including: • The ongoing implementation of the expansion of ELC to 1140 hrs, £0.625m; • £0.150m from the Cost of the School Day budget due to procurement delays; • £0.075m to support the Easter Study Support programme; • £0.058m to support a newly qualified Educational Psychologist; • £0.040m in relation to the purchase of resources for Marress House; and • Minor adaptations within Cunninghame House and St Peters Primary, £0.040m.
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The current employee cost projections include the impact from industrial action in support of the national teacher pay settlement with total underspends of £0.793m arising from the 5 days of industrial action between 24 November 2022 and 17 January 2023. These projections will be further updated for the industrial action on 28 February and 1 March 2023, once the cost impacts have been quantified. Virements in relation to the additional Community Mental Health grant income have been included within Appendix 7. (iii) Place – overspend of £2.196m, a reduction of £0.650m from the previously reported overspend. The net movement since Period 8 is primarily related to: • Vacancy management across services, (£0.488m); • Additional Building Warrant income , (£0.279m); • Increase fees & charges income within Roads, (£0.072m); and • Increased net income within Waste Services, (£0.059m). These have been partly offset by additional costs within Streetscene in relation to: • Additional overtime and the extension of seasonal worker contracts, £0.148m; • Increased materials and costs for the erection of Christmas lights, £0.047m; and • Increased contractor costs for essential cemetery work, £0.046m. It is requested that a further £0.140m is earmarked to support anticipated additional expenditure during 2023/24, including: • £0.080m to support the Sustainability agenda, including the Solar PV projects; • £0.035m to support Community Wealth Building activities during 2023/24; and • £0.025m in relation to the Rapid Rehousing Transition Plan. This is in addition to the previously earmarked £0.096m and is linked to the 5 year RRTP delivery programme. Virements in relation to the realignment of income from other services budgets within Roads, reflecting revised projections, have been included within Appendix 7. (iv) Other Corporate Items – underspend of (£3.199m), an increase of (£0.125m) from the previously reported underspend. The movement since Period 8 is primarily related to a revised drawdown from centrally held funds in relation to CTR claims, (£0.095m). The revised net underspend has been applied to offset the net overspend reported within Place.
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Health and Social Care Partnership 2.6 A copy of the HSCP financial performance report as at the end of January 2023 is attached at Appendix 8. The report highlights the key challenges and variances for the Partnership. The key points for Cabinet to note are summarised below: • The projected outturn is a year-end underspend of (£1.181m) for 2022/23. • The projected underspend on the Council Services element is (£1.541m) over the same period. This is partly offset by a projected overspend on the Health Services element of £0.360m; • The main areas of risk identified include: High risk areas of low volume / high-cost services areas e.g. Learning Disability care packages, children’s residential placements and complex care packages; Progress with the work to develop set aside arrangements and the risk sharing arrangements agreed as part of this; Ongoing implementation costs of the Scottish Government policy directives; Lead / hosted service arrangements, including managing pressures and reporting this across the 3 IJBs; The impact on Lead Partnership and acute services from decisions taken by other Ayrshire areas; The impact and implementation of the National Care Service; The NHS pay award has been settled for 2022-23 but confirmation of additional Scottish Government funding is awaited; The current extremely high levels of inflation; The review of the Care at Home service which commenced in Spring 2022; Supported Accommodation - funding has been included in the budget for the new developments but the adequacy of the funding will only be known when the final occupants are agreed; Fire dampener compensation (Woodland View) – the final level of compensation has still to be agreed and the £0.306m previously assumed in the projection has been removed due to the uncertainty surrounding this. Arrangements have been made for the full repayment of the £2.320m outstanding debt to North Ayrshire Council during the current year. Risks 2.7 Significant risks to the reported position have been identified arising from inflationary pressures in relation to energy costs and essential commodities, including food and vehicle fuel. A total of £1.666m has been drawn down from earmarked reserves to offset the additional inflationary pressures identified across services to 31 January 2023. In June 2022, Cabinet agreed to earmark £1.888m from the 2021/22 underspend to address unbudgeted inflationary pressures arising from the current cost of living crisis. Any further increases beyond current budget provision may impact on future service provision.
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It is anticipated that agreement on the 2022/23 Teachers’ pay settlement will be confirmed soon. However, the final impact of any award in excess of that agreed by local government workers may require the utilisation of Council reserves, with a knock on effect on future budget gaps. These pressures are likely to be offset in the short term by reductions arising from the industrial action by teacher unions. However, the full impact of further industrial action during February and March cannot be quantified at this time. The net risks arising from the settlement will continue to be monitored and reported to Cabinet as appropriate. Housing Revenue Account 2.8 The Housing Revenue Account budgeted for a breakeven position in 2022/23 and an in-year underspend of (£0.239m), (0.4%), is currently anticipated for the year to 31 March 2023. This is a reduction of £0.578m from the previously reported position. The projected position is summarised in the following table with further details provided in Appendix 6. 2.9 Commentary Significant Movements from the Revised Budget A brief explanation of the significant movements from the previous forecasts is outlined as follows: (i) Employee Costs – breakeven position, a reduction of (£0.107m) from the previously reported overspend The movement is primarily related to vacancy management across the service. (ii) Property Costs – overspend of £1.561m, an increase of £0.420m from the previously reported overspend The movement is primarily related to increased expenditure on Planned and Cyclical Maintenance, £0.164m, and Other Property Costs, £0.361m, which is primarily related to Sheltered Housing utilities, partly offset by reduced Responsive Repairs, (£0.109m). Annual Budget Projection to 31 March 2023 Projected Variance for year (Fav)/Adv Previous Variance @ Period 8 (Fav)/Adv Movement Note £000's £000's £000's £000's £000's Employee Costs 5,279 5,279 - 107 (107) (i) Property Costs 18,878 20,439 1,561 1,141 420 (ii) Supplies and Services 451 331 (120) (126) 6 Transport and Plant Costs 34 24 (10) (9) (1) Administration Costs 1,874 1,790 (84) (109) 25 Third Party Payments 2,550 2,699 149 198 (49) Transfer Payments 155 155 - - - Other Expenditure 368 332 (36) - (36) Capital Financing 24,692 22,624 (2,068) (2,068) - Gross Expenditure 54,281 53,673 (608) (866) 258 Income (54,281) (53,912) 369 49 320 (iii) Net Expenditure - (239) (239) (817) 578
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(iii) Income – underrecovery of £0.369m, an increase of £0.320m from the previously reported underrecovery The movement is primarily related to updated income forecasts highlighting reduced rent recovery of £0.267m and reduced income from recharges and other income of £0.053m. 3. Proposals 3.1 It is proposed that Cabinet agrees to: (c) note the information and financial projections outlined in the report; (d) approve the earmarking of £1.361m identified at 2.5 to meet future year commitments; (c) note the latest financial projection for the Health and Social Care Partnership highlighted at 2.6; (d) note the current projected deficit position of KA Leisure; and (e) approve the virements detailed in Appendix 7. 4. Implications/Socio-economic Duty Financial 4.1 General Services The net projection for the year as at 31 January 2023 is a net underspend of (£0.923m). Housing Revenue Account The net projection for the year as at 31 January 2023 is a net underspend of (£0.239m). Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 None. Environmental and Sustainability 4.5 None.
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Key Priorities 4.6 This report directly supports the Council Plan 2019 to 2024 by maximising resources and providing value for money to support financially sustainable delivery models. Community Wealth Building 4.7 None. 5. Consultation 5.1 Progress as outlined in this report has been approved by Executive Directors. Mark Boyd Head of Service (Finance) For further information please contact David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551. Background Papers Revenue Budget 2022/23 : Financial Performance to 30 November 2022 - Cabinet 24 January 2023
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Appendix 1 CHIEF EXECUTIVES BUDGETARY CONTROL 2022/23 REPORT FOR THE 10 MONTHS TO 31 JANUARY 2023 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Chief Executive Chief Executive 193 198 5 3% Total for Chief Executive 193 198 5 3% Financial Services Change Programme 79 79 - 0% Audit, Fraud, Safety & Insurance 655 663 8 1% Corporate Procurement 971 822 (149) (15%) 1 Financial Services 1,387 1,370 (17) (1%) Revenues (531) (524) 7 (1%) Transformation 712 721 9 1% Total for Financial Services 3,273 3,131 (142) (4%) People & ICT Employee Services 894 884 (10) (1%) HR & Organisational Development 1,138 1,123 (15) (1%) ICT 5,318 5,141 (177) (3%) 2 Business Support 1,259 1,259 - 0% Customer Services 4,736 4,739 3 0% Total for People & ICT 13,345 13,146 (199) (1%) Democratic Services Legal & Licensing 461 481 20 4% 3 Policy, Performance & Elections 473 432 (41) (9%) 4 Communications 463 453 (10) (2%) Civil Contingencies 60 60 - 0% Committee Services 554 554 - 0% Member Services 1,334 1,338 4 0% Ayrshire Support Service 54 54 - 0% Information Governance 404 373 (31) (8%) Total for Democratic Services 3,803 3,745 (58) (2%) Totals 20,614 20,220 (394) (2%) Less Proposed Carry Forwards 233 233 Net Total 20,614 20,453 (161) (1%)
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Appendix 1 Subjective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance £000 £000 £000 Employee Costs 16,490 16,236 (254) (2%) Property Costs 68 68 - 0% Supplies and Services 3,099 2,947 (152) (5%) Transport and Plant Costs 31 30 (1) (3%) Administration Costs 1,367 1,355 (12) (1%) Other Agencies & Bodies 2,948 2,948 - 0% Transfer Payments 817 817 - 0% Other Expenditure - - - - Capital Financing - - - - Gross Expenditure 24,820 24,401 (419) (2%) Income (4,206) (4,181) 25 (1%) Net Expenditure 20,614 20,220 (394) (2%)
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Appendix 1a CHIEF EXECUTIVES BUDGETARY CONTROL 2022/23 REPORT FOR THE 10 MONTHS TO 31 JANUARY 2023 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Finance - Corporate Procurement Movement : There has been a favourable movement of £0.009m since P8 primarily due to additonal vacancy management and increased rebate income. 957 (133) -14% Employee Costs - There is an underspend of £0.113m due to vacancy management. (108) (24) 22% Income - There is an over recovery of £0.024m due to increased rebates. - 8 Other minor variances (149) Note 2 People & ICT - ICT Movement - There has been a favourable movement of £0.175m from P8 due to £0.163m software licence underspends and £0.014m over-recovery of income. 2,280 (163) -7% Supplies and Services - There is an underspend of £0.163m in software licences due to some contracts not being renewed and national delays in procuring a collective Security Operations Centre (SOC); a one-off reduction in cost for the O365 backup solution; and delays in delivery of WAN upgrade, planned bandwidth increases will incur increased WAN charges in 2023/24. - (14) Income - There is an over-recovery of £0.014m in income from IT hardware, the proceeds of which are being requested for earmarking for reinvestment. It is proposed to earmark funds of £0.014m for reinvestment, and £0.152m for ICT LAN and Telephony Project Resource requirements linked to the delivery of digital telephony in line with the 2025 national digital switch off. In addition an earmarking request of £0.010m is required for People & ICT's contribution to the 2023/24 savings targets. (177) Note 3 Democratic Services - Legal & Licensing Movement : There has been a favourable movement of £0.053m since P8 which relates mainly to an increase in Licensing income forecasts and specifically Landlord Registration, Civic Government Taxis and Civic Government Others. These are based on current and prior year trends and have now therefore been updated with actual Licensing income information for 22/23 up to P10. (717) 25 -3% Income : Projected under-recovery of £0.025m due to under-recovery in Licensing income based on current and prior year trends. (5) Other minor variances 20 Democratic Services - Policy, Performance & Elections Movement - There has been a favourable movement of £0.027m from P8 due to additional vacancy management. 427 (41) -10% Employee Costs - There is an underspend of £0.041m due to vacancy management. It is proposed to earmark funds of £0.034m to cover anticipated staff pressures due to increasing work levels to be addressed. In addition an earmarking request of £0.023m is required for Democratic Services' contribution to the 2023/24 savings targets. (41) Note 4
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Appendix 2 COMMUNITIES BUDGETARY CONTROL 2022/23 REPORT FOR THE 10 MONTHS TO 31 JANUARY 2023 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Early Years Education 20,579 19,971 (608) (3%) 1 Primary Education 45,092 44,646 (446) (1%) 2 Secondary Education 56,427 56,241 (186) (0%) 3 Additional Support Needs 12,957 13,012 55 0% 4 Education - Other 5,125 4,038 (1,087) (21%) 5 Pupil Equity Fund 5,414 5,414 - 0% Facilities Management 17,775 16,825 (950) (5%) 6 Connected Communities 13,312 13,312 - 0% 7 Net Total 176,681 173,459 (3,222) (2%) Less Proposed Carry Forwards 2,184 2,184 Net Total 176,681 175,643 (1,038) (1%) Subjective Summary Annual Budget Final Year End Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs - Teachers 89,557 88,848 (709) (1%) Employee Costs - Non Teachers 58,794 56,674 (2,120) (4%) Property Costs 1,681 1,838 157 9% Supplies and Services 23,529 22,883 (646) (3%) Transport and Plant Costs 193 234 41 21% Administration Costs 622 601 (21) (3%) Other Agencies & Bodies 13,651 13,499 (152) (1%) Transfer Payments 580 580 - 0% Other Expenditure - - - Capital Financing 78 78 - 0% Gross Expenditure 188,685 185,235 (3,450) (2%) Income (12,004) (11,776) 228 (2%) Net Expenditure 176,681 173,459 (3,222) (2%)
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Appendix 2a COMMUNITIES BUDGETARY CONTROL 2022/23 REPORT FOR THE 10 MONTHS TO 31 JANUARY 2023 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Early Years Education Movement : There has been a favourable movement of £0.545m compared to P8. This is mainly due to a projected underspend in payments to Funded Providers. 16,005 (68) 0% Employee costs: £0.068m due to continuing recruitment gaps and vacancy management across the sector 549 (40) -7% Supplies & Services: underspends across budgets 4,311 (500) -12% Third Party Payments: a projected underspend of £0.500m in payments to Funded Providers mainly due to lower uptake of places against anticipated projections. It is requested to earmark £0.040m of the supplies & services underspends to purchase resources for the new Marress House and the remaining £0.568m underspend for resources linked to the expansion of ELC 1140 hours carried forward to 23/24 to help address the impact of the significant funding reduction in 23/24 (608) Note 2 Primary Education Movement : There has been an favourable movement of £0.071m compared to P8. This is mainly due to continuing recruitment gaps and vacancy management. 42,311 (552) -1% Employee Costs : £0.552m underspend in non teaching staff costs of which £0.270m is due to a part year saving for School Dining Supervisors who were appointed at the start of this academic year. The remainder is due to recruitment gaps and vacancy management across all other categories of non teaching staff. 2,090 89 4% Supplies and Services : £0.089m overspend in PPP costs due to pass through utility costs subject to same inflationary pressures as other schools. 80 (28) -35% Third Party Payments: an underspend of £0.028m as less overtime required due to streamlined processes (73) 45 -62% Income: under recovery of school let income due to school lets not fully operational These figures do not include any implications from further industrial action as part of the national dispute over teachers’ salaries, nor resultant commitments emerging from any subsequent pay settlement. This information will be reflected in future reports at the appropriate time. (446) Note 3 Secondary Education Movement : There has been a favourable movement of £0.019m compared to P8. This is mainly due to continuing recruitment gaps and vacancy management. 42,711 (284) -1% Employee Costs : £0.284m underspends in non teaching staff costs due to recruitment gaps and vacancy management across all types of staff. 13,210 83 1% Supplies and Services : £0.083m overspend in PPP costs due to pass through utility costs subject to same inflationary pressures as other schools. 139 (30) -22% Third Party Payments: an underspend of £0.030m as less overtime required due to streamlined processes (79) 45 -57% Income: under recovery of school let income due to school lets not fully operational These figures do not include any implications from further industrial action as part of the national dispute over teachers’ salaries, nor resultant commitments emerging from any subsequent pay settlement. This information will be reflected in future reports at the appropriate time. (186) Note 4 ASN Movement: There has been an unfavourable movement of £0.199m compared to P8, mainly due to increases in both residential (£0.249m) and day placement (£0.024m) costs as additional young persons are accessing these services. This is partially offset by further employee costs underspends of £0.066m due to vacancy management. 10,859 (374) -3% Employee costs: £0.108m underspend in teaching costs and a £0.266m underspend in non teaching staff costs across all ASN school and bases provision from recruitment gaps and vacancy management across all categories of non teaching staff. There is an ongoing Supporting Needs review and this is due to be completed later this calendar year. 1,010 (218) -22% There is a projected underspend of £0.218m on external day placements as a result of the assessment process currently in place. This enables the children to remain in mainstream establishments or in-authority ASN establishments. 499 626 125% There is a projected overspend of £0.626m on external specialist residential placements. Currently there are 10 children in accommodation. Joint working is ongoing with HSCP to continually assess the care setting for these children in delivering positive outcomes. - 21 Other minor movements across various budget lines It is requested to earmark £0.058m of the above employee cost underspend to be used to fund a newly qualified Education Psychologist for a year. 55
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Appendix 2a Budget £000 Projected Variance £000 Variance as % of budget Section Note 5 Education Other Movement :There has been a favourable movement of £0.507m since P8. This is mainly due to underspends in employee costs as a result of the teachers industrial action to date, partly offset by a projected increased spend in teachers HQ cover costs. 3,773 (649) -17% Employee costs: under recovery of teacher payroll turnover of £0.150m offset by £0.793m underspend in relation to the 5 days industrial action by teachers during Dec 2022/Jan 2023. 708 (121) -17% Supplies & Services: small overspends of £0.029m and projected underspend of £0.150m in COSD due to procurement tendering process to obtain best value for money. 1,410 (11) -1% Third Party Payments - small overspends across various subscriptions/licences amounting to £0.023m and underspend of £0.110m 1,677 (312) -19% Income - PPP insurance rebate £0.075m, deductions of £0.220m in excess of budget and £0.017m salaries rec'd from capital 6 Other minor movements across various budget lines Request to earmark £0.150m of COSD funds due to delays in procurement process for purchase of clothing for pupils in schools; £0.035m for Education 5th floor adaptations; £0.005m for St Peter's PS minor adaptations and £0.075m for Easter Study Support for pupils preparing for SQA examinations (1,087) Note 6 Facilities Management Movement: There has been a favourable movement of £0.159m since period 8 which is primarily due to savings of £0.071m in employee costs, £0.048m in lower than anticipated food costs and £0.057m in Early Years. 15,017 (569) -4% Employee Costs: Underspend of £0.072m is due to reduced commercial catering activity. There is an underspend of £0.205m due to the reduced uptake of school meals. In addition, there is an underspend of £0.272m due to recruitment issues and reduced overtime and casual costs. 1,079 113 10% Property Costs: Overspend is primarily in relation to purchasing cleaning materials in response to Covid-19. 4,526 (878) -19% Supplies and services: There is a saving of £0.104m in food due to reduced commercial catering. There are further food savings of £0.221m due to reduced school meal uptake and £0.055m within social services. In addition, there is an underspend within Early Years of £0.454m which has arisen due to a lower attendance rate than originally anticipated. There is also a saving of £0.063m within tools and implements due to delayed opening of Moorpark Primary and reduced commercial catering activity. (2,918) 359 -12% Income: There is an under-recovery in commercial catering income of £0.543m due to a reduction in commercial events and cost/ income challenges within commercial venues. This is offset against an over-recovery of school meal income of £0.081m and cleaning and janitorial income of £0.103m. Facilities Management continue to promote the school meal service to maximise uptake. 25 Other minor movements The Early years expansion is linked to specific grant funding provided by the Scottish Government. It is proposed to increase the £0.397m previously earmarked by £0.057m to £0.454m. This is to match the current projected underspend to the earmark request. (950) Note 7 Connected Communities Movement: There has been no change since P8. 7,834 (332) -4% Employee Costs: underspends across all sectors due to vacancy management. 1,382 199 14% Supplies and Services: anticipated increase in expenditure to part utilise the employee costs underspends and increase in Harbour Arts Centre events costs, which is offset with the increased income in the HAC. 5,223 (1) 0% Third Party Payments: additional support of £0.191m will be required for NALL from the Council. This will come from the use of previously earmarked funds totalling £0.365m which will be used to support the trading deficit position and the renewal programme within NALL. (1,579) 95 -6% Income: projected £0.147m under recovery across various sectors as income has not returned to pre covid levels, offset by projected over recovery in Harbour Arts Centre of £0.052m. - 39 Other minor movements across various budget lines. -
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Appendix 3 PLACE BUDGETARY CONTROL 2022/23 REPORT FOR THE 10 MONTHS TO 31 JANUARY 2023 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Directorate and Support 186 186 - 0% Housing and Public Protection Building Services (2,541) (2,541) - 0% 1 Property Governance (9) (9) - 0% Planning Services 290 230 (60) (21%) 2 Protective Services 1,699 1,336 (363) (21%) 3 Other Housing 2,653 2,007 (646) (24%) 4 Total for Housing and Public Protection 2,092 1,023 (1,069) (51%) Commercial Services Roads 6,596 7,009 413 6% 5 Streetscene 5,268 5,764 496 9% 6 Waste Resources 9,238 9,446 208 2% 7 Total for Commercial Services 21,102 22,219 1,117 5% Economic Growth and Regeneration Economic Development 4,444 4,338 (106) (2%) Growth & Investment 211 211 - 0% Total for Economic Growth and Regeneration 4,655 4,549 (106) (2%) Sustainability, Transport and Corporate Property Property Management & Investment 1,463 1,541 78 5% 8 Housing Assets & Investment (4) (4) - 0% Property Maintenance 3,522 3,721 199 6% 9 Property Running Costs 4,725 4,766 41 1% Energy and Sustainability 5,486 6,551 1,065 19% 10 Internal Transport 9,616 10,487 871 9% 11 Total for Sustainability, Transport and Corporate Property 24,808 27,062 2,254 9% Net Total 52,843 55,039 2,196 4% Transfer to Earmarked Reserves 286 286 Net Total 52,843 55,325 2,482
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Appendix 3 Subjective Summary Annual Budget Projected Year End Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs 45,917 46,039 122 0% Property Costs 21,644 23,106 1,462 7% Supplies and Services 9,839 10,273 434 4% Transport and Plant Costs 9,420 10,655 1,235 13% Administration Costs 798 758 (40) (5%) Other Agencies & Bodies 19,767 19,085 (682) (3%) Transfer Payments - - - 0% Other Expenditure 182 193 11 6% Gross Expenditure 107,567 110,109 2,542 2% Income (54,724) (55,070) (346) 1% Net Expenditure 52,843 55,039 2,196 4%
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Appendix 3a PLACE BUDGETARY CONTROL 2022/23 REPORT FOR THE 10 MONTHS TO 31 JANUARY 2023 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Building Services Movement: There has been no movement since P8 however the service are currently managing significant financial challenges. 5,624 (1,080) (19%) Supplies & Services: An underspend of £1.080m in supplies and services. This is due to an underspend in materials as a result of a change in the composition of the works programme. 547 48 9% Transport costs: The overspend of £0.048m in transport costs is due to increasing costs of skip hire. 2,152 924 43% Third Party Payments: An overspend in third party payments of £0.924m. New workstreams for 22/23 have required an above average subcontractor element. There has also been an increase in works that are wholly subcontracted due to either labour shortages or specialist activities. (20,153) 86 (0%) Income: an under-recovery of income of £0.086m is anticipated due to labour and supplier issues causing delays in completing parts of the capital programme. This has been offset with additional income across various revenue income lines. 22 Other minor movements - Note 2 Planning Services Movement: There has been no movement since P8. 102 (60) (59%) Supplies & Services: An underspend of £0.060m due to plans for the LDP reprofiling costs into 23-24. (60) Note 3 Protective Services Movement: There has been a favourable movement of £0.263m since the last reporting period mostly due to increased building warrant income of £0.279m. 1,749 (94) (5%) Employee Costs: An underspend of £0.094m in staffing costs due to vacancies during the year now filled with the exception of one position and one resignation. (710) (269) 38% Income: Over recovery of £0.279m in building warrants offset by a reduction in pest control income of £0.010m. (94) Note 4 Other Housing Movement: There has been a favourable movement of £0.282m since period 8. This is mainly due to a decrease in employee costs across the service as vacancies are now not presumed to be filled prior to year end. 4,232 (725) (17%) Employee Costs: Underspend is due to a number of vacancies within the homeless service, this is of a temporary nature and it is anticipated that all vacancies will be filled next financial year. In addition to this a number of posts transferred over to the Housing Options Hub to assist with the Ukraine Humanitarian crisis and funding for these posts came from Scottish Government for that purpose. 2,696 74 3% Property Costs: £0.034m of the overspend relates to Council Tax payments. This is for backdated Council Tax from the previous two years, which is due for temporary furnished properties while they were unoccupied for a short period of time between tenants. £0.017m overspend in Temporary Accommodation property rents as additional units have been in use, which is offset by the additional income for these properties; £0.012m utility costs overspend due to rising prices; and £0.011m forecasted overspend in contract cleaning. 5 Other minor movements It is requested to earmark £0.025m of the vacancy underspend that relates to the Rapid Rehousing Transition Plan. This is in addition to the £0.096m RRTP funding that has previously been requested to be earmarked and is linked to the ongoing 5 year delivery programme. (646)
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Appendix 3a Budget £000 Projected Variance £000 Variance as % of budget Section Note 5 Roads Movement: There has been a favourable movement of £0.097m since period 8, with £0.072m of the favourable movement relating to income. In addition to this, the estimated Lighting energy cost has decreased by £0.025m based on invoices received this year. 2,458 229 9% Supplies and Services: Overspend of £0.107m on street lighting and traffic signal electricity costs, which is due to inflation. Further overspend of £0.122m relates mainly to coated roadstone costs, which have been adversely affected by inflation. 2,369 (67) (3%) Third Party Payments: £0.125m budget allocated for the intorduction of the Car Parking Charges and Decriminalised Parking Enforcement saving will not be incurred. The roads maintenance budget has been adversely affected by inflationary pressures and the service is managing the programme taking account of this. However, there remains a small overspend of £0.033m in unavoidable contractor costs. In addition to this, there is an overspend of £0.025m on Artificial Intelligence software costs related to Asset Management. (2,941) 201 (7%) Income: £0.346m under recovery of income relating to the saving for Car Parking Charges and Decriminalised Parking Enforcement, not achieved. This is partly offset with an over recovery in fees and charges and salaries recovered from capital in Network. 50 Other minor movements. A budget virement has been included in Appendix 7. This is to revise the income and related expenditure budgets for work carried out for other Council Services and external parties. 413 Note 6 Streetscene Movement: There has been an adverse movement of £0.237m since period 8. Employee costs have increased by £0.148m due to increased overtime costs and the extension of seasonal posts to the end of March. Supplies and Services costs have increased by £0.047m, primarily for materials and costs to erect Christmas Lights and contractor costs have increased by £0.046m for essential cemetery work. 7,246 385 5% Employee Costs: There is an overspend of £0.385m in employee costs, primarily due to overtime costs, which is partially offset with increased income from other Council departments. The 2022/23 pay award didn't cover all non scheduled over time which has impacted the budget by approximately £0.050m. The reason overtime has increased is due to non schedueld operational activites such as A78 litter clearance (£0.056m), various events (£0.050m), and safety works for memorials (£0.041m). Turnover of £0.103m wasn't realised. 129 152 118% Transport Costs: There is an overspend of £0.152m in transport costs, initially due to additional vehicles required for the Covid response, vehicles required for seasonal workers, and to support the operational needs within bereavements. 325 64 20% Supplies and Services: £0.044m overspend against materials and £0.022m overspend for costs to erect Christmas Lights. 72 49 68% Third Party Payments: Overspend is mainly for essential cemetery works, such as clearing grave spoil. (2,698) (156) 6% Income: There is an over recovery of income of £0.114m relating to internments and £0.204m relating to income from other departments, offset with a £0.145m under recovery of fees and charges and £0.019m under recovery for Largs Common Good charges. 2 Other minor movements 496 Note 7 Waste Services Movement : There has been a favourable movement of £0.059m since P8 due to increased income from disposal of the content of skips by £0.027m and reduced promotional costs of £0.025m. 4,763 826 17% Employee Costs: Additional temporary labour remains in place within Waste Operations as the service recovers from the pandemic. Work to review beats taking account of post pandemic waste composition analysis and to balance the burden of new builds is ongoing with Trade Union colleagues resulting in support arrangements being required. In addition there is a high volume of annual leave not taken due to COVID, requiring holiday cover. 413 173 42% Supplies & Services: Overspend on Trade effluent £0.117m and Refuse containers £0.087m, offset by underspends in Materials £0.031m. 62 (42) (68%) Admin Costs: Underspend of £0.042m due to reduced spend on external printing and advertising. 6,382 (731) (11%) Third Party Payments: Underspend in Payment to contractors of £0.716m largely a result of improved quality of our recyclate streams following sustained ‘right stuff, right bin’ campaigns alongside more competitive recyclate prices within our disposal contracts. 201 164 82% Transport Costs: Overspend of £0.164m due to the new way of working requiring 2 additional hire vehicles plus a long term hire. This is being reviewed in line with the post pandemic review of beats. (2,930) (166) 6% Income: Over-recovery of income due to the recyclates market for glass, cans, plastics and paper being favourable to provide income rather than a cost to the council £0.119m, along with increased income from the disposal of the content of skips over the year of £0.077m, offset by reduction in waste gas extraction of £0.052m. (16) Other minor movements 208
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Appendix 3a Budget £000 Projected Variance £000 Variance as % of budget Section Note 8 Economic Development Movement: There has been a favourable movement of £0.106m since P8 due to vacancy management. 377 (106) (28%) Employee Cost: Underspends of £0.106m due to various vacancies across some of the services. It is requested to earmark £0.035m of the above employee cost underspend for Community Wealth Building costs activities in 2023/24. (106) Note 9 Property Management and Investment Movement : There has been a favourable movement of £0.009m since P8. 2,351 (90) (4%) Employee Costs: An underspend of £0.090m due to vacancy management. (8,653) 119 (1%) Income: There is an under-recovery of £0.119m in fee income. 49 Other minor movements including payment to contractors £0.025m and supplies and services £0.023m. 78 Note10 Property Maintenance Movement : There has been no movement since P8 6,733 199 3% Property Costs : There is an overspend of £0.144m due to external surveying works associated with supporting the Education Estate Review. Statutory Compliance is also showing an overspend of £0.067m. 199 Note 11 Energy and Sustainability Movement : There has been a favourable movement of £0.100m since P8. This is due to vacancy management. 532 (100) (19%) Employee Costs: An underspend of £0.100m due to vacancy management. 5,374 1,165 22% Property Costs: Due to the current energy crisis and after drawing down £0.658m from contingencies there is an overspend in property costs of £1.165m due to increased utility cost charges. Electricity is forecast to be £0.070m overspent, gas £0.981m over, biomass £0.109m over and water £0.005m over. The reported overspends are after the inclusion of budgeted inflation contingencies. The remaining overspend will be offset against the additional inflationary provisions agreed by Council which have been reported within the Other Corporate Items appendix. It is requested to earmark £0.080m to continue the sustainability agenda, supporting the proposed Solar PV projects. 1,065 Note 12 Internal Transport Movement - There has been a favourable movement of £0.019m due to £0.028m additional over recovery of income; £0.027m decrease in fuel costs as a result of lower fuel prices and a £0.026m reduction in employee costs due to vacancies. These are partially offset by an increase in forecasted repairs & maintenance cost of £0.030m; £0.018m increase in transport provision costs; and £0.013m of projected additional external hire costs. 1,682 17 1% Employee Costs: There is an overspend of £0.017m due to reduced staff turnover. 4,201 517 12% Transport Provision Costs: Projected overspend of £0.517m is largely due to direct fuel cost increases and indirect fuel and labour cost increases through our school transport contracts. 1,814 247 14% Fuel Costs: This projected overspend of £0.247m is due to the increase in fuel prices and the legislative changes restricting the use of rebated gas oil (or 'red diesel' as it is commonly referred to). 467 66 14% External Hires: Projected overspend of £0.066m due to additional hire vehicles as a result of increased lead time for replacement vehicles. 1,123 80 7% Repairs & Maintenance: Projected overspend of £0.080m in repairs and maintenance due to price increases and maximising the life of assets due to the increased lead time for replacement vehicles and the shortage of available rental alternatives. (251) (60) 24% Income: Projected overrecovery of £0.060m in bus transport income and hire of pool vehicles. 4 Other minor movements The reported overspends are after the inclusion of budgeted inflation contingencies. The remaining fuel price related overspend will be offset against the additional inflationary provisions agreed by Council which have been reported within the Other Corporate Items appendix. 871
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Appendix 4 OTHER CORPORATE ITEMS BUDGETARY CONTROL 2022/23 REPORT FOR THE 10 MONTHS TO 31 JANUARY 2023 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Strathclyde Passenger Transport 2,212 2,188 (24) (1%) SPT Concessionary Fares 286 286 - 0% Ayrshire Joint Valuation Board 975 932 (43) (4%) 3,473 3,406 (67) (2%) 1 Other Corporate Costs Pension Costs 1,895 1,895 - 0% Central Telephones 350 350 - 0% Other Corporate Items (incl Transformation Costs, Bad Debt Provision, External Audit fees and other centrally held funding.) 23,347 20,301 (3,046) (13%) 2 Housing Benefits 2,422 2,336 (86) -4% 3 31,487 28,288 (3,199) (10%) Less Proposed Carry Forwards 959 Net Total 31,487 28,288 (2,240) (7%)
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Appendix 4a OTHER CORPORATE ITEMS BUDGETARY CONTROL 2022/23 REPORT FOR THE 10 MONTHS TO 31 JANUARY 2023 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Joint Boards There has been no movement from Period 8 3,473 (67) -2% There is a projected underspend of £0.067m as annual requisitions confirmed at less than current budget. (67) Note 2 Other Corporate Items There has been a favourable movement of £0.118m since Period 8 primarily due to a revised drawdown of previously approved CTR budgets and additional Scottish Government funding in relation to the administration of grants. 23,347 (3,046) -13% The projected underspend is primarily related to the drawdown of £1.666m earmarked funds in relation to additional contractual and non contractual energy and fuel costs reported across the services, linked to significant unbudgeted inflationary pressures and the release of £0.552m of earmarked funds in relation to the 2022/23 pay settlement. In addition, centrally held funds of £0.722m are not expected to be fully utilised in year, including additional Scottish Government funding in relation to Core Curriculum Charges, changes to DHP distributions and the administration of grants. Additional corporate income of £0.106m is anticipated in relation to the shared AVC scheme and the purchase of additional annual leave. These funds have been applied to offset the overspend reported within Place at Appendix 3. (3,046) Note 3 Housing Benefit There has been movement of £0.007m from Period 8 due to the revised Housing Benefit overpayment recoveries. 2,422 (86) -4% Projected underspend of £0.086m due to the provision of Housing Benefits and overpayment recovery. (86)
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Appendix 5 MISCELLANEOUS ITEMS BUDGETARY CONTROL 2022/23 REPORT FOR THE 10 MONTHS TO 31 JANUARY 2023 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % variance Note No £000 £000 £000 Financing Charges 12,366 12,366 - - Contribution to Loans Fund Reserve 3,631 3,631 - - Scottish Government Funding (347,331) (347,331) - - Council Tax (62,100) (62,066) 34 (0%) Use of Earmarked Funds (7,050) (7,050) - - Net Total (400,484) (400,450) 34 (0%)
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Appendix 6 HOUSING REVENUE ACCOUNT BUDGETARY CONTROL 2022/23 REPORT FOR THE 10 MONTHS TO 31 JANUARY 2023 Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £ £ £ Employee Costs 5,279 5,279 - 0% 1 Property Costs Responsive Repairs 5,677 6,503 826 15% Void Repairs 3,147 3,242 95 3% Planned and Cyclical Maintenance 4,862 4,923 61 1% Aids and Adaptions 1,617 1,617 - 0% Other property costs 3,575 4,154 579 16% Total for Property Costs 18,878 20,439 1,561 2 Supplies & Services 451 331 (120) (27%) 3 Transport Costs 34 24 (10) (29%) Administration Costs 1,874 1,790 (84) (4%) 4 Third Party Payments 2,550 2,699 149 6% 5 Transfer Payments 155 155 - 0% Other Expenditure 368 332 (36) (10%) Capital Financing Costs 24,692 22,624 (2,068) (8%) 6 Gross Expenditure 54,281 53,673 (608) (1%) Income Council House Rents (53,310) (52,708) 602 (1%) Other Rents (326) (380) (54) 17% Recharges (499) (637) (138) 28% Other Income (146) (187) (41) 28% Transfer from HRA Reserves - - - 0% Total Income (54,281) (53,912) 369 (1%) 7 Net Expenditure - (239) (239)
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Appendix 6a HRA BUDGETARY CONTROL 2022/23 REPORT FOR THE 10 MONTHS TO 31 JANUARY 2023 Budget £000 Variance £000 Variance as % of budget Note 1 5,279 0 0% 0 Note 2 18,878 1,561 8% 1,561 Note 3 451 (120) -27% (120) Note 4 1,874 (83) -4% (83) Note 5 2,550 149 6% 149 Note 6 24,692 (2,068) -8% (2,068) Note 7 (54,281) 369 -1% 369 B/fwd from 2021/22 Transfer to / from Reserves Use of Earmarked sums Earmarking of in year surplus Funding of Capital Projects Projected Balance at 31/03/23 £m £m £m £m £m £m 5.280 - - - (1.151) 4.129 1.500 - - - - 1.500 5.000 - - - - 5.000 1.558 - - - - 1.558 0.123 - - - - 0.123 0.781 - - 0.239 - 1.020 0.416 - - - - 0.416 0.052 - - - - 0.052 0.636 - - - - 0.636 0.270 - - - - 0.270 15.616 - - 0.239 (1.151) 14.704 Income Movement - There has been an adverse movement of £0.320m since Period 8. This is due to a reduction of £0.259m in Council House rents, £0.008m in Rents, £0.042m in Recharges and £0.011m in other income. An under recovery in income of £0.369m. This is due to an under recovery of £0.601m in Council House Rents partially offset by an over recovery of £0.053m in Other Rents, £0.138m in Recharges and £0.041m in Other Income. Council House Building Fund Welfare Reform Contingency Balance Infrastructure Improvements Major Refurbishment Works Tenant led balance Electrical Testing Sustainability Fund Software Licences Voids - non programmed works Section Employee costs There is no expected variance in employee costs. Movement - There has been a favourable movement of £0.107m since Period 8 due to vacancy management. Third Party Payments Movement - there has been a favourable movement of £0.049m since Period 8. This is primarily due to a reduction of £0.050m in Housing Asset and Investment recharges. An overspend in third party payments of £0.149m. This is primarily due to an overspend of £0.185m in the Housing Asset and Investment recharges partially offset by an underspend of £0.038m in the ASB & Tenancy support charges. Capital Financing Costs Movement - there has been no movement since P8. There is an underspend in capital financing costs of £2.068m due to reduced loan charges. This is due to the reduced levels of expenditure currently being experienced in the HRA Capital budget Property Costs Movement - an adverse movement of £0.420m since Period 8. This is mainly due to an increase of £0.164m in Planned and Cyclical Maintenance and £0.361m in Other Property Costs of which primarily relates to sheltered housing utility costs, offset by a reduction of £0.109m in Responsive Repairs. An overspend in property costs of £1.561m. This is due to an overspend of £0.826m in Responsive Repairs, £0.096m in Void Repairs, £0.061m in Planned and Cyclical Maintenance partially related to construction inflation, and £0.578m in other property costs of which £0.206m relates to increased Council Tax payments and £0.395 in sheltered housing utility costs. HRA reserves and balances Supplies & Services An underspend in supplies and services of £0.120m. This is primarily due to underspends of £0.080m in computer equipment and £0.054m in software licences. Administration Costs Movement - there has been an adverse movement of £0.026m since Period 8. Movement - an adverse movement of £0.006m since Period 8. An underspend in administration costs of £0.083m. This is primarily due to an underspend of £0.105m in legal fees.
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Appendix 7 1) Budget Virements Place Roads Income T 0.158 Roads Third Party Payments T -0.158 0.000 Community Mental Health Employee Costs T 0.229 Community Mental Health Supplies & Services T 0.001 Community Mental Health Administration Costs T 0.009 Community Mental Health Third Party Payments T 0.286 Community Mental Health Grant Income T -0.525 0.000 Communities Budget Management - 31 January 2023 Virement/Budget Adjustment Requests 2022/23 Perm (P) / Temp(T) Virement £m Directorate Total £m
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Official-Protect Appendix 8 Integration Joint Board 16th March 2023 Subject: 2022-23 – Month 10 Financial Performance Purpose: To provide an overview of the IJB’s financial performance as at month 10 (January) including an update on the estimated financial impact of the Covid-19 response. Recommendation: It is recommended that the IJB: (a) notes the overall integrated financial performance report for the financial year 2022-23 and the current overall projected year-end underspend of £1.181m; (b) notes the progress with delivery of agreed savings; (c) notes the remaining financial risks for 2022-23, including the impact of remaining Covid-19 estimates and costs; and (d) approves the budget reductions which are detailed at paragraph 2.11. Glossary of Terms NHS AA NHS Ayrshire and Arran HSCP Health and Social Care Partnership MH Mental Health CAMHS Child & Adolescent Mental Health Services BRAG Blue, Red, Amber, Green UNPACS UNPACS, (UNPlanned Activities) – Extra Contractual Referrals NRAC NHS Resource Allocation Committee GAE Grant Aided Expenditure PAC Performance and Audit Committee MARAC Multi Agency Risk Assessment Conference 1. EXECUTIVE SUMMARY 1.1 The report provides an overview of the financial position for the Partnership and outlines the projected year-end outturn position informed by the projected expenditure and income commitments; these have been prepared in conjunction with relevant budget holders and services. It should be noted that, although this report refers to the position at the end of January, further work is undertaken following the month end to finalise projections, therefore the projected outturn position is as current and up to date as can practicably be reported. 1.2 The projected outturn is a year-end underspend of £1.181m (0.4%) for 2022-23. This includes the financial impact of the local authority pay award but excludes the NHS
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Official-Protect pay award; this has been agreed but confirmation of the amount of additional Scottish Government funding is still awaited. 1.3 From the core projections, overall, the main areas of pressure are learning disability care packages, residential placements for children, supplementary staff in wards and Unplanned Activities (UnPACs) within the lead partnership for mental health. 2. CURRENT POSITION 2.1 The report includes an overview of the financial position including commitments against the available resource, explanations for the main budget variances and an update on progress in terms of savings delivery. The report also includes detail of the estimated costs and potential financial impact of the Covid-19 response. FINANCIAL PERFORMANCE – AT MONTH 10 2.2 At Month 10 against the full-year budget of £276.985m there is a projected year-end underspend of £1.181m (0.4%). The Integration Scheme outlines that there is an expectation that the IJB takes account of the totality of resources available to balance the budget in year. Following this approach, an integrated view of the financial position should be taken, however it is useful to note that this overall position consists of a projected underspend of £1.541m in social care services and a projected overspend of £0.360m in health services. Appendix A provides the financial overview of the Partnership position. The sections that follow outline the significant variances in service expenditure compared to the approved budgets. The projections for some areas will be subject to fluctuations as they depend on recruitment plans for new funding and also the capacity of providers to take on work. 2.3 Health and Community Care Services Against the full-year budget of £83.220m there is a projected underspend of £0.105m (0.1%) which is a favourable swing of £0.527m and the main variances are: a) Care home placements including respite placements (net position after service user contributions and charging order income) are projected to underspend by £1.034m which is a favourable movement of £0.031m. The budgeted number of permanent placements is 778 and at month 10 there are 762 placements. The projection assumes that the current number of placements will continue to increase to 770 placements by the end of the year. Within the projection there is an assumption that recent placements which do not have a completed financial assessment (often due to the pressure to discharge from hospital) are costed with 50% of the cases at the current average cost of a placement and 50% at the gross or interim funded rate. It is likely that there will still be some cases being gross or interim funded at the year end. Their actual cost will not be known until the FA1 financial assessment is completed and this can impact on the final position.
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Official-Protect The level of income recovered from charging orders was under recovered in 2021- 22 but an online position is assumed at month 10 as the income received to date is in line with the target. b) Care at home (in house and purchased) is projected to be £0.108m underspent which is a favourable movement of £0.112m. The position is made up of an underspend in purchased care at home as providers are not always able to accept referrals due to staffing / recruitment issues and an overspend in the in-house service. As there are vacant posts some of the current capacity is being met by existing staff working additional hours and casual staff. Bank staff are being offered contracts and additional staff are being recruited which will replace the need for existing staff to work additional hours. c) Community alarms are projected to be £0.093m underspent which is an adverse movement of £0.003m. d) Reablement services are projected to be £0.219m underspent which is a favourable movement of £0.061m due to vacancies. e) Care at Home Charging Income is projected to under recover by £0.084m (no movement) due to an ongoing shift towards personal care which is non chargeable. This is after applying £0.076m of Covid funding. f) Physical Disability Care Packages (including residential and direct payments) - projected overspend of £0.062m in community care packages, £0.165m in direct payments and £0.243m for residential placements. This is an overall favourable movement of £0.090m. g) Purchased day care is projected to underspend by £0.071m (no movement) due to a revised contract. h) Anam Cara is projected to overspend by £0.090m which is a favourable movement of £0.084m. The overspend is due to covering vacancies and sickness absence. i) Integrated Island Services is projected to be £0.280m overspent which is a £0.154m adverse movement. The overspend is mainly due to additional accommodation costs for mainland staff working at Montrose House due to local recruitment challenges and additional agency costs to ensure the required staffing levels. j) District Nursing is projected to overspend by £0.130m due to an overspend on supplies and reduced national uplift funding. k) Rehab wards are projected to overspend by £0.270m (Redburn ward £0.310m overspent and Douglas Grant £0.040m underspent), £0.058m adverse movement from month 7. The overspend at Redburn is due to cover costs for vacancies as well as supplementary staffing for patients who require one to one support. l) Wards 1 and 2 are projected to overspend by £0.140m (ward 1 £0.060m overspend and ward 2 £0.080m overspend) which is an adverse movement of £0.100m due to increased use of supplementary staffing.
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Official-Protect m) Cumbrae Lodge Continuing Care beds are projected to underspend by £0.185m which is a favourable movement of £0.185m. This is due to a reduced charge to reflect the reduction in beds used during the transition to the new service. 2.4 Mental Health Services Against the full-year budget of £88.169m there is a projected overspend of £1.237m (1.4%) which is an adverse movement of £0.497m. This excludes any potential variance on the Mental Health Recovery and Renewal Funding where any underspend will be earmarked at the year-end for use in 2023-24. The main variances are: a) Learning Disabilities are projected to overspend by £1.205m and the main variances are: • Care Packages (including residential and direct payments) - projected overspend of £0.451m in community care packages, £0.282m in direct payments and £0.147m for residential placements. This is an overall favourable movement of £0.187m. Community Learning Disability Care packages are proving to be one of the most challenging areas to address overspends. The data from CM2000 will be reported back to the service to allow them to see where care has deviated from the planned level and focus reviews to those areas. • Residential Respite is projected to overspend by £0.126m (£0.022m favourable movement). The overspend reflects funding the new facility (Roslin House) to full capacity (£0.069m) and increased energy costs (£0.057m). • Trindlemoss non-employee costs are projected to underspend by £0.199m which is a favourable movement of £0.110m. This partly relates to budgets set aside for the running costs of the pool. b) Community Mental Health services are projected to underspend by £0.532m (adverse movement of £0.069m) which is mainly due to an underspend of £0.450m in community packages (including direct payments) and an underspend in residential placements of £0.135m. c) The Lead Partnership for Mental Health is projecting to be £0.594m overspent which is an adverse movement of £0.555m and the main variances are as follows: • A projected overspend in Adult Inpatients of £0.200m which is an adverse movement of £0.306m. This overspend is mainly due to overspends in supplementary staff (which reduced from month 7), staff in redeployment and reduced bed sale income. • The UNPACS (Unplanned Activities) budget is projected to overspend by £1.320m (£0.120m adverse movement due to increased enhanced observations) based on current number of placements remaining until the year end. These placements are for individuals with very specific needs that require a higher level of security and/or care from a staff group with a particular skill set/competence. There are no local NHS secure facilities for women, people
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Official-Protect with a learning disability or people with neurodevelopmental disorder. This can necessitate an UNPACs placement with a specialist provider which can be out- of-area. The nature of mental health UNPACS spend is that it is almost exclusively on medium or long term complex secure residential placements which are very expensive so a small increase in placements can have a high budgetary impact. Due to the complexity and risk involved, transitions between units or levels of security can take many months. Applications to approve a placement are made to the Associate Medical Director for Mental Health who needs to be satisfied that the placement is appropriate and unavoidable prior to this being agreed. • A projected overspend in MH Pharmacy of £0.100m (no movement) due to an increase in substitute prescribing costs. • Learning Disability Services are projected to overspend by £0.275m (no movement). This is mainly due to high usage of supplementary staffing, cross- charging for a LD patient whose discharge has been delayed and redeployment staffing costs. Supplementary staffing costs relate to backfill for sickness, increase and sustained enhanced observations and vacancies. The enhanced observations are reviewed on a daily basis however, due to the individuals being acutely unwell at present, this level of enhanced observations has been maintained for a lengthy period of time. The projection assumes that we begin cross charging another HSCP for the ongoing costs of the person detailed above where, despite having extensive time to identify an alternative placement there has been no solution identified. • Elderly Inpatients are projected to overspend by £0.134m (no movement) mainly due to the reduced use of supplementary staffing. • The reduction in National Insurance contributions has resulted in a part year saving to the Lead Partnership of £0.148m which is included in the projection. • The Innovation Fund is projected to underspend by £0.145m which is favourable movement of £0.145m. This is due to slippage within some of the projects and not all of the funding was allocated. • Band 2 to 3 regrading – there is a projected overspend of £0.350m relating to back dated cost for the Band 2 – 3 regrade. This is an estimate and it is assumed that the total cost of £0.700m is split 50/50 between lead and non- lead services. • The turnover target for vacancy savings for the Lead Partnership is held within the Lead Partnership as this is a Pan-Ayrshire target. There is a projected over-recovery of the vacancy savings target of £1.701m in 2022-23, further information is included in the table below: The current projection to the year-end is informed by the recruitment plans and the confidence in recruitment success and realistic timescales for filling individual vacancies. The areas contributing to this vacancy savings position are noted below: • Adult Community Health services £0.192m • Adult Inpatients £0.200m • CAMHS £0.600m Vacancy Savings Target (£0.481m) Projected to March 2023 £2.182m Over/(Under) Achievement £1.701m
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Official-Protect • Mental Health Admin £0.370m • Psychiatry £0.100m • Psychology £0.680m • Associate Nurse Director £0.040m 2.5 Children and Justice Services Children’s Services Against the full-year budget of £38.023m there is a projected overspend of £2.978m (7.8%) which is an adverse movement of £0.477m. The main variances are: a) Care Experienced Children and Young People is projected to overspend by £2.985m which is an adverse movement of £0.534m. The main areas within this are noted below: • Children’s residential placements are projected to overspend by £3.196m prior to Covid funding and projected to overspend by £2.300m after £0.896m of Covid funding. This is an adverse movement of £0.285m. We started 22/23 with 23 placements and there are currently 29 placements. It is assumed that all current placements are continuing until the end of the year. • Fostering placements are projected to underspend by £0.236m (£0.060m favourable movement). This is based on the budget for 115 places and 115 actual placements (of which 6 are Covid related and are funded through the Covid-19 funding) since the start of the year. Although we are at the number of budgeted placements this was not the case throughout the year when we were under the budgeted level. Recruitment of foster carers is an active priority for the team, both to limit the requirement for external foster placements and reduce pressures elsewhere on the service. This is promoted through regular targeted recruitment campaigns, community awareness raising and daily presence on various social media platforms. Our active recruitment strategy is gaining some interest and we are actively pursuing a number of enquiries as a result. • Fostering Xtra placements are projected to be on-line (no movement) after applying £0.086m of Covid funding. The projection is based on the budget for 30 placements and 33 current placements. • Private Fostering placements are projected to be £0.047m underspent (no movement) based on the budget for 17 placements and 13 current placements. • Kinship placements are projected to underspend by £0.137m which is an adverse movement of £0.043m and this is based on the budget for 376 places and 351 current placements. • Adoption placements are projected to overspend by £0.087m (£0.015m adverse movement). This is based on the budget for 56 places and 62 actual placements. b) Children with disabilities – residential placements are projected to overspend by £0.414m which is an adverse movement of £0.241m. This is based on an increased number of placements (12) which are expected to continue until the end of the year and an increase in the rates paid for some of the placements. c) Residential respite – placements are projected to overspend by £0.444m which is an adverse movement of £0.035m. These short-term placements are used
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Official-Protect to prevent an admission to full residential care. There is one placement continuing at month 10 but it is expected to cease 13 March 2023. d) Children’s Houses Employee Costs – are projected to overspend by £0.310m due to the additional overtime costs. 2.6 ALLIED HEALTH PROFESSIONALS (AHP) AHP services are projected to underspend by £0.132m due to underspends in non- employee costs. 2.7 CHIEF SOCIAL WORK OFFICER There is a projected underspend of £1.704m due to a projected underspend in the Carers Strategy funding. This is a favourable movement of £0.712m. 2.8 MANAGEMENT AND SUPPORT Management and Support Services are projected to underspend by £3.260m which is a favourable movement of £0.405m. The main areas of underspend are: • An over-recovery of payroll turnover of £2.400m for social care services and an over-recovery of payroll turnover of £0.606m for health services as outlined in the table below. • The reduction in National Insurance contributions has resulted in a part year saving to the Non-Lead Partnership of £0.148m and £0.150m for social care which is included in the projection for Management and Support. • The additional saving in LD day care employee costs has transferred to the HSCP strategy code and will be proposed as a saving for 2023/24. • Band 2 to 3 regrading for non-lead services– there is a projected overspend of £0.350m relating to back dated cost for the Band 2 – 3 regrade. This is an estimate and it is assumed that the total cost of £0.700m is split 50/50 between lead and non-lead services. • The 2022-23 budget included a budgeted surplus on the social care side offset by a budgeted deficit on the health side of the budget. The net impact is neutral but Appendix A will show this position for each element. The turnover targets and projected achievement for the financial year for Health and Social Care services out with the Lead Partnership is noted below: The position in the table above reflects the assumption in the current financial projections. For social care, a total of £3.769m (187% of annual target) has been achieved to date. The turnover achieved to date is higher than usual as the 22/23 budget included investment in various areas of staffing and these posts are not fully recruited to yet. Social Care Health Services Vacancy Savings Target (2.014m) (1.183m) Projected to March 2023 4.414m 1.789m Over/(Under) Achievement 2.400m 0.606m
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Official-Protect The health vacancy projection to the year-end is based on the month 10 position and is informed by the recruitment plans and confidence in recruitment to posts for the remainder of the year. The areas contributing to the health and social care vacancy savings are spread across a wide range of services with vacancy savings being achieved in most areas. The main areas at month 10 are: • Learning Disability £0.523m • Management and Support £0.561m • Community Care Service Delivery £0.574m • Rehab and Reablement £0.454m • Locality Services £0.340m • Integrated Island Services £0.360m • Community Mental Health £0.242m There have been no intentional plans to pause or delay recruitment and services have actively continued to recruit; in some service areas it has proven difficult to fill posts. The turnover target for the North Lead Partnership for Mental Health services is detailed within the Lead Partnership information at section 2.4. 2.9 LOCAL AUTHORITY PAY AWARD SHORTFALL The recently agreed local government pay award was not fully funded. The total cost of the pay award was £4.384m against the budgeted increase of £2.077m. The additional cost of £2.307m will be partially met by additional recurring Scottish Government funding of £1.866m and the gap of £0.441m will be an in-year overspend with the recurring cost being factored into the 23/24 budget. There is also an additional cost in relation to the additional day of leave as some frontline posts will require to be covered during this leave. The annual estimated cost of this is £0.120m and it is assumed that £0.050m has still to be incurred before the year end and this is included in the 22/23 projected outturn. 2.10 Savings Progress a) The approved 2022-23 budget included £0.683m of savings. BRAG Status Position at Budget Approval £m Position at Month 10 £m Red - 0.060 Amber 0.060 - Green 0.623 - Blue - 0.623 TOTAL 0.683 0.683 b) The main area to note is that red savings of £0.060m relating to adoption allowances will not be achieved but this is accounted for in the projected
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Official-Protect outturn. The review of allowances is complete, but the benefit will not be realised until future years as the changes will apply to future cases. Appendix B shows the full Transformation Plan for 2022/23 which has been agreed by the Transformation Board; the Board is in place to provide oversight and governance to the programme of service change. A focus of the Board is to ensure plans are in place to deliver savings and service change, with a solution focussed approach to bringing programmes back on track. Not all the service changes on the Transformation Plan have savings attached to them but there is an expectation that they will lead to service improvements. The Plan is critical to the ongoing sustainability and safety of service delivery and to supporting the delivery of financial balance in future. Appendix C provides an overview of those service changes which do have financial savings attached to them and the current BRAG status around the deliverability of each saving. 2.11 Budget Changes The Integration Scheme states that “either party may increase it’s in year payment to the Integration Joint Board. Neither party may reduce the payment in-year to the Integration Joint Board nor Services managed on a Lead Partnership basis…. without the express consent of the Integration Joint Board.” Appendix D highlights the movement in the overall budget position for the Partnership following the initial approved budget. Reduction Requiring Approval: 1) Training Grades Reduction £0.029m 2) Franking Transfer to Acute £0.001m 3) AHP Clinical Admin to South HSCP £0.021m 4) ADP Reduction £0.324m 5) A&E Liaison Funding to South and East HSCP £0.139m 6) Foxgrove Revenue Costs £0.014m 7) Transfer to Capital – Bladder Scanner £0.008m 8) Buvidal Funding Pharmacist to Acute £0.014m 9) MDT Reduction £0.006m 10) TEC Contribution £0.053m 11) Covid Funding returned to the Scottish Govt £8.263m 12) Carer Support to Education £0.020m 2.12 NHS – Set Aside and Pan Ayrshire Services Lead Partnerships: The IJB outturn position is adjusted to reflect the impact of Lead Partnership services. The outturn for all Lead Partnership services is shared across the 3 Partnerships on an NRAC basis; this position is currently the default pending further work to develop a framework to report the financial position and risk sharing across the 3 Partnerships in relation to hosted or lead service arrangements, which has been delayed by the requirement to focus efforts on the Covid response.
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Official-Protect The final outturn in relation to North Lead Partnership services would not be fully attributed to the North IJB as a share would be allocated to East and South Partnerships; similarly, the impact of the outturn on East and South led services will require to be shared with North. At Month 10 the MH lead partnership is projected to overspend by £0.594m (£0.192m NRAC share for East and £0.183m for South). The information reported for South and East is the month 9 info as they do not report at month 10. East HSCP –the month 9 position is a projected £0.969m underspend of which £0.359m (37%) is attributable to North. The main variances are: Primary Care and Out of Hours Services (Lead Partnership) There is a projected underspend of £0.793m on the Primary Care Lead Partnership budget and is due largely to projected underspends in Primary Care, Primary Medical Services and Dental services where staffing numbers are running at less than establishment. The projected underspend within Dental services is largely due to reduced staffing costs in Childsmile and within the Dental management team, with both service areas running with vacancies. In addition, there are reduced costs within Primary Care contracting and support, largely due to staffing turnover, as well as projected savings in diabetic retinopathy services and East Ayrshire Community Hospital medical and general pharmaceutical services. These reduced costs are partially offset by additional costs in the GP element of Out of Hours services, as well as additional costs in the overnight nursing service, with work ongoing to address as far as possible over the course of the 2022/23 financial year. Ayrshire Urgent Care Services costs related to the Covid-19 pandemic are recharged against the Local Mobilisation Plan (Community Clinical Hub). As highlighted previously in this report, projected costs for 2022/23 require to be reduced as far as possible, with a recovery plan, to ensure costs can be contained within budget going forward. Prison and Police Healthcare (Lead Partnership) The £0.176m projected underspend at month 9 is largely due to net staffing savings. Medical contracts at both Prison and Police have reduced and is contributing to the projected underspend. These contracts have been renegotiated with 2021/22 being the first year of the new contract for Prison and Police Custody. A review of the prison service is being undertaken and it is anticipated that surplus funds will go towards improving staffing levels within the prison. Other Lead Services The £0.100m projected outturn is online with budget and relates to anticipated charges for services from Marie Curie. All three Ayrshire IJBs approved additional funding of £0.004m on a non-recurring basis as part of their 2022/23 budgets to increase the overall budget from the £0.088m baseline. This additional funding is required to offset identified cost pressures and to meet service demands from 1 April this year. The non-recurring nature of the approved uplift reflects that a service review is to be undertaken in 2022/23.
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Official-Protect South HSCP – projected overspend of £0.130m of which £0.048m will be allocated to North. The overspend is mainly due to an overspend in the community store and continence service offset by vacancies in the Family Nurse Partnership. Set Aside: - an approach has yet to be decided on for 22/23, which may be used as a “shadow year” for using current year activity. This will depend on how representative the activity is felt to be. By default, inflation will be applied to the 2021/22 budget. The annual budget for Acute Services is £400.4m. The directorate is overspent by £11.7m, caused by increasing overspends on agency medical and nursing staff, together with increasing drug expenditure. These have been required due to the level of operational pressure being experienced, in common with many other areas in Scotland. There is a material underlying deficit caused by: • Unachieved efficiency savings • High expenditure on medical and nursing agency staff, high rates of absence and vacancies causing service pressure. • High numbers of delayed discharges and high acuity of patients. The IJBs and the Health Board work closely in partnership to maintain service and improve performance. 2.13 FINANCIAL RISKS There are a number of ongoing financial risk areas that may impact on the 2022-23 budget during the year, these include: • High risk areas of low volume / high-cost services areas e.g. Learning Disability care packages, children’s residential placements and complex care packages. • Progress with the work to develop set aside arrangements and the risk sharing arrangements agreed as part of this. • Ongoing implementation costs of the Scottish Government policy directives • Lead / hosted service arrangements, including managing pressures and reporting this across the 3 IJBs. • The impact on Lead Partnership and acute services from decisions taken by other Ayrshire areas. • The impact and implementation of the National Care Service. • The NHS pay award has been settled for 2022-23 but confirmation of additional Scottish Government funding is awaited. • The current extremely high levels of inflation • Supported Accommodation - funding has been included in the budget for the new developments but the adequacy of the funding will only be known when the final occupants are agreed. • Fire dampener compensation (Woodland View) – the final level of compensation has still to be agreed and the £0.306m previously assumed in the projection has been removed due to the uncertainty surrounding this. These risks have been monitored throughout 2022-23 and the financial impact reported through the budget monitoring report.
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Official-Protect 2.14 COVID-19 – FINANCE MOBILISATION PLAN IMPACT Summary of position From the outset of the pandemic the HSCP acted very swiftly to respond and developed a mobilisation plan detailing the additional activities to support our response, alongside the estimated financial impact. Financial returns were submitted to the Scottish Government on a regular basis during 2020-21 and 2021-22, on the premise that any additional costs aligned to mobilisation plans would be fully funded. This process will continue during 2022-23 with returns moving from quarterly to monthly. Covid funding of £13.321m was carried forward from 2021-22 for use in services delegated to the Partnership during 2022-23 and the costs outlined below will be met from this funding. Any unused funding will be reclaimed by the Scottish Government and redistributed to Health Boards for Covid-related costs in non- delegated services. 2.15 Mobilisation Plan and Funding Position The initial month 3 mobilisation plan cost submission was submitted in July and estimated the costs to be £4.067m to March 2023. The changes since month 3 are summarised in the table below with the main area being payments to providers to reflect the payments made to date and the extension of part of the scheme to 31st March 2023. The costs remain estimates as the situation continually evolves there will be a further update submitted each month. The main areas of cost are summarised below: Service Area Initial Month 3 Return £m Month 4 Return £m Month 5 Return £m Months 6,7,8,9 Return £m Month 10 Return £m Payments to Providers 1.100 1.100 1.953 2.143 2.143 PPE 0.418 0.418 0.419 0.326 0.265 Additional Staff 1.317 1.317 1.315 1.318 1.318 Loss of Income 0.246 0.246 0.246 0.210 0.210 Children & Families 0.957 0.957 0.957 1.107 1.107 Other Areas 0.029 0.029 0.015 0.015 0.015 TOTAL 4.067 4.067 4.905 5.119 5.058 Based on the projected spend, £8.263m of funding has now been reclaimed by Scottish Government. IJBs have been advised by Government that a year-end reconciliation and balancing adjustment will be conducted in the event that too much or too little funding has been retained. 2.16 Provider Sustainability Payments and Care Home Occupancy Payments COSLA Leaders and Scottish Government have agreed an approach to supporting the social care sector to ensure that reasonable additional costs will be met. We have been making payments to commissioned social care providers in line with the agreed
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Official-Protect national principles for sustainability and remobilisation payments to social care providers during COVID 19. Care Home Occupancy Payments - The Scottish Government ceased these payments at the end of October 2021 but exceptions were made following the Omicron outbreak and limited payments were made to eligible care homes. Meetings are being held with each care home to discuss ongoing sustainability and to provide support. Sustainability payments – the most recent guidance issued in September 2022 continued the reduced the scope of what providers can claim for and also outlined deadlines for claims to be submitted. The main costs that can be claimed relate to testing and vaccination and this is extended to 31st March 2023. The Social Care Staff Support Fund was also extended to 31st March 2023 (previously to 30th September 2022). The sustainability payments are a significant cost in our mobilisation plan and the timely submission by providers and assessment of claims is key to ensuring we can accurately estimate the financial cost and ensure the costs are reclaimed from the Scottish Government. Quarter 3 claims must be submitted by 28th February 2023 and quarter 4 claims must be submitted by 30th April 2023 and providers have been informed about this. The breakdown of payments made in 2022-23 up to 31st January 2023 are shown in the tables below: PROVIDER SUMMARY NCHC Care Homes Other Total Total Number of Providers 17 49 66 Number contacting NAC 17 14 31 Providers Supported to date 17 14 31 OUTSTANDING CLAIMS NCHC Care Homes Other Total Total Number of Claims - 1 1 Value of Claims - 897 897 SUPPORT PROVIDED NCHC Care Homes Other Services TOTAL £ £ £ Occupancy Payments 81,650 0 81,650 Staffing 681,442 251,586 933,029 PPE, Infection Control 181,354 47,703 229,057 Other 170,969 7,894 178,863 TOTAL 1,115,415 307,183 1,422,599
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Official-Protect 2.17 RESERVES The IJB reserves position is summarised in the table below with full detail given in Appendix E. The opening ‘free’ general fund balance of £7.248m is held as a contingency balance, this equates to around 2.5% of the IJB budget for 2021-22 which is above the lower target level of 2%. The full outstanding debt to North Ayrshire Council of £2.321m has now been repaid; the increased payment was funded by a transfer of budget from the Council so there was no detriment to the IJB financial position. General Fund Reserves Earmarked Reserves Total Debt to NAC Free GF SG Funding Non-SG Funding £m HSCP £m £m £m £m £m £m Opening Balance - 1 April 2022 (2.321) 7.248 23.106 0.699 0.500 29.232 In year movements at month 10 2.321 (0.800) (8.263) - - (6.742) Revised Balance - 6.448 14.843 0.699 0.500 22.490 These balances will be adjusted after the year-end to reflect the actual use of reserves during 2022-23 and the updated carry forward position. A review of earmarked reserves has taken place and has identified £1.252m of balances which can be released. IJB will be asked to approve the use of these in supporting a balanced budget position for 2023-24. 3. PROPOSALS 3.1 Anticipated Outcomes Continuing to closely monitor the financial position will allow the IJB to take corrective action where required to ensure the Partnership can deliver services in 2022-23 from within the available resource, thereby limiting the financial risk to the funding partners. The estimated costs and funding in relation to the Covid-19 response also require to be closely monitored to ensure that the IJB can plan for the impact of this and to ensure that the IJB is in the position to re-claim funding to compensate for the additional costs. 3.2 Measuring Impact Ongoing updates to the financial position will be reported to the IJB throughout 2022- 23.
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Official-Protect 4. IMPLICATIONS Financial: The financial implications are as outlined in the report. Against the full-year budget of £276.985m there is a projected underspend of £1.181m. The report outlines the main variances for individual services. Human Resources: The report highlights vacancy or turnover savings achieved to date. Services will review any staffing establishment plans and recruitment in line with normal practice when implementing service change and reviews as per agreement with the IJB, there is no intention to sustain this level of staffing capacity reduction on a recurring or planned basis. Legal: None Equality: None Children and Young People None Environmental & Sustainability: None Key Priorities: None Risk Implications: Para 2.13 highlights the financial risks. The report falls in line with the agreed risk appetite statement which is a low-risk appetite in respect to adherence to standing financial instructions, financial controls and financial statutory duties and a high-risk appetite in relation to finance and value for money. Community Benefits: None Direction Required to Council, Health Board or Both Direction to: - 1. No Direction Required 2. North Ayrshire Council 3. NHS Ayrshire & Arran 4. North Ayrshire Council and NHS Ayrshire & Arran √ 5. CONSULTATION 5.1 This report has been produced in consultation with relevant budget holders and the Partnership Senior Management Team. The IJB financial monitoring report is shared with the NHS Ayrshire and Arran Director of Finance and North Ayrshire Council’s Head of Finance after the report has been finalised for the IJB. 6. CONCLUSION 6.1 It is recommended that the IJB: (a) notes the overall integrated financial performance report for the financial year 2022-23, the overall projected year-end underspend of £1.181m; (b) notes the progress with delivery of agreed savings; (c) notes the remaining financial risks for 2022-23;
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Official-Protect (d) approves the budget reductions which are detailed at para 2.11. For more information please contact: Paul Doak, Head of Finance and Transformation at pdoak@north-ayrshire.gov.uk or Eleanor Currie, Principal Manager – Finance at eleanorcurrie@north-ayrshire.gov.uk
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Official-Protect 2022-23 Budget Monitoring Report–Objective Summary as at 31st January 2023 Appendix A Budget Outturn Over/ (Under) Spend Variance Budget Outturn Over/ (Under) Spend Variance Budget Outturn Over/ (Under) Spend Variance £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 COMMUNITY CARE AND HEALTH 66,479 65,944 (535) 16,741 17,171 430 83,220 83,115 (105) 422 (527) : Locality Services 27,908 27,269 (639) 5,388 5,538 150 33,296 32,807 (489) (191) (298) : Community Care Service Delivery 33,436 33,186 (250) 0 0 0 33,436 33,186 (250) (90) (160) : Rehabilitation and Reablement 1,797 1,779 (18) 0 0 0 1,797 1,779 (18) (3) (15) : Long Term Conditions 999 1,102 103 9,079 9,359 280 10,078 10,461 383 583 (200) : Community Link Workers 195 184 (11) 0 0 0 195 184 (11) (3) (8) : Integrated Island Services 2,144 2,424 280 2,274 2,274 0 4,418 4,698 280 126 154 MENTAL HEALTH SERVICES 31,078 31,811 733 57,091 57,595 504 88,169 89,406 1,237 740 497 : Learning Disabilities 21,498 22,703 1,205 453 453 0 21,951 23,156 1,205 1,330 (125) : Community Mental Health 5,845 5,373 (472) 1,522 1,462 (60) 7,367 6,835 (532) (601) 69 : Addictions 3,735 3,735 0 1,618 1,588 (30) 5,353 5,323 (30) (28) (2) : Lead Partnership Mental Health NHS Area Wide 0 0 0 53,498 54,092 594 53,498 54,092 594 39 555 CHILDREN & JUSTICE SERVICES 34,053 37,031 2,978 3,970 3,970 0 38,023 41,001 2,978 2,501 477 : Irvine, Kilwinning and Three Towns 3,145 3,114 (31) 0 0 0 3,145 3,114 (31) 42 (73) : Garnock Valley, North Coast and Arran 3,160 3,160 0 0 0 0 3,160 3,160 0 (29) 29 :Intervention Services 1,856 1,873 17 339 339 0 2,195 2,212 17 15 2 : Care Experienced Children & Young people 22,061 25,047 2,986 0 0 0 22,061 25,047 2,986 2,451 535 : Head of Service - Children & Families 1,279 1,284 5 0 0 0 1,279 1,284 5 24 (19) : Justice Services 2,385 2,385 0 0 0 0 2,385 2,385 0 0 0 : Universal Early Years 167 168 1 3,185 3,185 0 3,352 3,353 1 (2) 3 : Lead Partnership NHS Children's Services 0 0 0 446 446 0 446 446 0 0 0 CHIEF SOCIAL WORK OFFICER 2,560 856 (1,704) 0 0 0 2,560 856 (1,704) (992) (712) PRIMARY CARE 0 0 0 51,117 51,117 0 51,117 51,117 0 0 0 ALLIED HEALTH PROFESSIONALS 0 8,701 8,569 (132) 8,701 8,569 (132) (122) (10) COVID NHS 0 0 0 (8,263) (8,263) 0 (8,263) (8,263) 0 0 0 MANAGEMENT AND SUPPORT COSTS 10,917 7,413 (3,504) 2,541 2,785 244 13,458 10,198 (3,260) (2,855) (405) LOCAL AUTHORITY PAY AWARD SHORTFALL 0 491 491 0 0 0 0 491 491 561 (70) OUTTURN ON A MANAGED BASIS 145,087 143,546 (1,541) 131,898 132,944 1,046 276,985 276,490 (495) 255 (750) Return Hosted Over/Underspends East 0 0 0 0 (192) (192) 0 (192) (192) (13) (179) Return Hosted Over/Underspends South 0 0 0 0 (183) (183) 0 (183) (183) (12) (171) Receive Hosted Over/Underspends South 0 0 0 0 48 48 0 48 48 53 (5) Receive Hosted Over/Underspends East 0 0 0 0 (359) (359) 0 (359) (359) (360) 1 OUTTURN ON AN IJB BASIS 145,087 143,546 (1,541) 131,898 132,258 360 276,985 275,804 (1,181) (77) (1,104) Over/ (Under) Spend Variance at Period 7 Movement in projected variance from Period 7 TOTAL Partnership Budget - Objective Summary Council Health 2022/23 Budget
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Official-Protect 2022-23 Transformation Plan Appendix B Savings reference number Project Project Description Deliveribility Status Saving/ Investment Approved Saving 2022/23 £ Investment Saving Delivered at Month 10 £ Projected Saving Projected Shortfall 22/23 £ Children, Families and Justice Services SP/HSCP/20/1 Children and Young People - External Residential Placements Monitor and review all placements with a view to reducing the overspend. Amber Saving - - SP/HSCP/20/4 Adoption Allowances Montior Adoption Allowances. With a view to reduce the overspend Red Saving 59,535 - - 59,535 SP/HSCP/20/19 Fostering - reduce external placements. Monitor Fostering Placements with a view to reduce the overspend Red Saving - - Transport review Review of costs relating to taxi utilisation and implemenation of new electronic form. Aim to reduce transport budget in council. Links in with David Hammonds Tranformation Project. Red Saving Grow internal fostering capacity Review capacity of existing foster carers with a view of increasing existing capacity Amber Cost neutral NACSTA4030 Fostering Short Breaks Develop an inhouse short break service to replace the commisioned service provided by Cornerstone. Amber Saving - - - Mental Health and LD Transformation of CAMHS - CAMHS Specification CAMHS have reviewed and updated referral guidance to align with the CAMHS National Specification. Some risks identified in order to facilitate the continued changes are accommodation, and recruitment of clinical staff. Amber Investment 1,091,463 Transformation of CAMHS - CAMHS Age 25 CAMHS are developing specific pathways to provide care and support up to the age of 25 where appropriate e.g. Eating Disorders, Neuro, Personality Disorders, Early Psychosis. Amber Investment 623,402 Transformation of CAMHS - CAMHS Waiting List Two external providers have been procured to support Neuro waiting for assessment (Purple House Amber Investment 311,701
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Official-Protect Savings reference number Project Project Description Deliveribility Status Saving/ Investment Approved Saving 2022/23 £ Investment Saving Delivered at Month 10 £ Projected Saving Projected Shortfall 22/23 £ Transformation of CAMHS - CAMHS Psyc Waiting List Clinical Director & Senior Manager agreed plan in order to reduce access to Psychiatry. In addition to this, 3 non- medical prescribers have been trained and are prescribing for ADHD clinics. Amber Investment 366,707 Transformation of CAMHS - Out of Hours Unscheduled Care Recruitment and implementation of a new service to provide support to children and young people on an unscheduled basis. CAMHS are being commissioned by Paediatrics to deliver this service via Scottish Government funds. Amber Investment 86,294 Transformation of CAMHS - CAMHS Intensive Home Treatment Recruitment is ongoing. Accommodation required to house team together. Ongoing development of policies and procedures for team in alignment with partners agencies Amber Investment 14,752 Transformation of CAMHS - CAMHS Liaison Amber Investment 129,073 Primary Care Mental Health investment Creation of a business case to deliver Mental Health to Primary Care over the next 4 years. Allocation of funds will be incrementally incraesed over the duration of the next four years. North leading for Ayrshire. Green Investment 261,159 Continued review of models of care at Woodland View A particular focus on rehabilation models of care for MH building on learning from Warrix Avenue. Development of a business case for ARBD is also underway. A test of change for ward 7B will be reported through this workstream. Amber Implementation of MAT standards Programme of work to set up the systems required to report on Medical Assisted Treatment standards for Addictions. The programme will be run on a pan ayrshire basis led by North. The national direction was for this to be led by Public Health but they have not started any recruitment so North will take forward in the meantime. Green Investment Complex Care Model - Independent living change fund Recruit the Intensive Support Team agreed through this fund and monitor progress of assessments of out of area placements. A dynamic register should be developed and maintained which will feed into national data. Amber Investment 513,000 ACORN business model Mental Health Rehabilitation service needing help to transition to a social enterprise. Now incoporated within Caring for Ayrshire. Red Saving - - - - Implementation of Trakcare Patient Management System in Community Services Implementation of new information recording system for NHS to report on 18 weeks RTT. This will include development of new processes and transfer of data from current system to the new one. This will allow for better recording of clinical activity and inform future DCAQ work. Adult community mental health will go live first followed by other community teams currently utilisating Access databases. A Pan Ayrshire referral management service will be set up to embed the systems and monitor data recording to ensure accurate Green Cost neutral Implementation of Unscheduled Care Part of the national redesign of urgent care work. The aim of the mental health project is to deliver an integrated system to support mental health and wellbeing by utilising existing mental health services and enhancing their pathways for unscheduled mental health presentations. Green Investment
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Official-Protect Savings reference number Project Project Description Deliveribility Status Saving/ Investment Approved Saving 2022/23 £ Investment Saving Delivered at Month 10 £ Projected Saving Projected Shortfall 22/23 £ Health and Community Care TEC Solutions To appoint a temporarory 'Project Manager' post, who will oversee the procurement and installation of digital telecare equipment Green Investment 50,000 - - Analogue to Digital Funding received for a Project Manager to manage the process of moving all services users from analogue to digital technology. Amber Investment 996,000 SP/HSCP/20/17 Care at Home - Service Review This project will incorporate the review of the care at home job role and any implications for service as a result as well as Amber Investment - - Hospital Team Model Green Arran Integrated Services model Continue to work towards an Integrated Hub on Arran building on the frailty work and developing a single point of contact for all health and social care services. It is anticipated there will be a substantial amount of investment required and a business case will be developed. Green Primary Care Investment Fund Remodel how we deliver primary care locally, ensuring that multi-disciplinary teams are available in each medical practice across North Ayrshire. This will help ensure that when needed local people will get the right care and support they need Green Investment HSCP MDT - Community Health & Care Implement HSCP MDTs across each of the localities to support GP practices and HSCP service coordinate care for those with the most complex needs. This approach will replace Older People Local Operational Teams.’ Develop Care at Home - Minimum data set Scope all current recording processes for data and look to consolidate a dataset that can be used for all reporting needs. Cost neutral AHP Whole System redesign Build on the learning from the recent AHP workforce exercise; to better understand the distribution and contribution of AHPs in health and care in North Ayrshire, to support future workforce planning that maximises this contribution for the benefit of the people of North Ayrshire. Amber Interim Beds To utilise a one-off lump sum, provided by the Scottish Government, to provide interim beds, for a maximum of 6 weeks, for clients who will have an onward move to permanent care. Green
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Official-Protect Savings reference number Project Project Description Deliveribility Status Saving/ Investment Approved Saving 2022/23 £ Investment Saving Delivered at Month 10 £ Projected Saving Projected Shortfall 22/23 £ Partnership Wide Supported acc models - NAC housing/ Sleepover/ outreach model Continue working with third sector providers to implement supported accommodation models in the community Green Saving - - SDS Review Engage with all stakeholders to look at how we encourage a more innovative and person centred approach to SDS. Implement an SDS Review Learning Board to help progress. Carers Review Develop a resource release model for allocation of funds for carers as well as implement a short break service. Amber Saving - - - Adult Complex Care Model - Call Monitoring Review of call monitoring system for provision of adult community supports. This will include evaluation of current provision and development of a specification for future tender as the current contract is due to expire. Implementation of Eclipse information system Implementation of new information recording system for social care to replace Care First. This will include dedvelopment of new protocols and transfer of data from current system to the new one. Money matters and GP Practice Welfare Rights service Facilitate the introduction of a money advise service available within GP practices. Investment 78,000 Payroll Turnover Inflation Monitor slippage through staff turnover with a view to meeting the savings target. Saving 301,201 301,201 - - Business Support Review (linked to Care at home review) Scope and review the remit of the business support unit and how it could be adapted to the benefit of all HSCP teams. North Elderly Mental Health inpatients (lead partnership) Agree the spend going forward for the recurring savings achieved through bed retraction from Ailsa. Saving 321,000 321,000 - - HSCP Challenge Fund - invest to save Monitoring of all projects approved through the Challenge Fund with a focus on invest to save ideas. Transitions Improve transition pathways from Childrens to Adult services as well as into older adults in order to improve outcomes for service users. Caring for Ayrshire The focus for Caring for Ayrshire is to bring a greater proportion of health provision into local communities. The Caring for Ayrshire work will ensure local GP practices are fit for purpose and have the capacity to host multi-disciplinary teams and meet local health and care needs. Investment Advocacy Strategy Refresh of Advocacy strategy with a view to incorporating both adult and childrens services. Cost neutral
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Official-Protect 2022-23 Savings Tracker Appendix C Savings ref number Description Deliverability Status at budget setting Approved Saving 2021/22 £m Deliverability Status Month 10 Saving Delivered @ Month 10 £m Projected to Deliver during Year £m Projected Shortfall £m Comment 1 Adoption Allowances Amber 0.060 Red - 0.060 - Currently projecting an overspend. TOTAL SOCIAL CARE SAVINGS 0.060 0.000 0.060 0.000 Savings ref number Description Deliverability Status at budget setting Approved Saving 2021/22 £m Deliverability Status Month 10 Saving Delivered @ Month 10 £m Projected to Deliver during Year £m Projected Shortfall £m Comment 2 Payroll Turnover Inflation Green 0.302 Blue 0.302 - Achieved 3 Elderly Mental Health inpatients (lead partnership) Green 0.321 Blue 0.321 - - Achieved TOTAL HEALTH SAVINGS 0.623 0.623 0.000 0.000 TOTAL NORTH HSCP SAVINGS 0.683 0.623 0.060 0.000 North Ayrshire Health and Social Care Partnership 2022/23 Savings
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Official-Protect 2022-23 Budget Reconciliation Appendix D COUNCIL Period Permanent or Temporary £'m Initial Approved Budget 116.017 Base budget adjustments 1 (0.046) Uploaded Budget 115.971 Resource Transfer 1 P 26.228 Software Licences transfer to IT 3 P (0.002) Montrose Cleaning Post to Facilities Management 3 P (0.014) Software Licences transfer to IT 4 P (0.003) Summer of Play Funding from Education 5 T 0.056 Insurance – transfer to corporate 6 P (0.075) Software Licences transfer to IT 6 P (0.006) MARAC funding 6 T 0.009 Pay Award Funding 7 P 1.866 Commercial Waste - Corporate adjustment 7 P 0.013 Family Wellbeing Fund 7 T 0.959 Software Licences transfer to IT 7 P 0.001 DWP income re CHIS 9 P 0.008 Carer Support to Education 10 T (0.020) ADP Funding to Money Matters 10 T 0.098 Roundings (0.002) Budget Reported at Month 10 145.087 HEALTH Period Permanent or Temporary £'m Initial Approved Budget 163.988 Resource Transfer (26.228) Month 10-12 Adjustments 22.401 Adjust for Non-recurring funding (22.408) Full Year effect of Part Year Reductions 0.128 REVISED 22-23 BUDGET 137.881 Training Grade Adj – April 1 P (0.064) Vire No 2 - East to North CAMHS Admin 1 P 0.099 Band 2-4 SG Funding reduction 1 P (0.007) AHP Clinical Admin Budget Transfer 2 P 0.048 Dean Funding to Partnerships 2 P 0.085 Prescribing Uplift 2 P 1.631 Prescribing Cres 2 P (0.715) Prescribing out non schedule 5 2 P (0.429) Scottish Huntington’s Post 3 P 0.014 Daldorch Income Shortfall 3 P 0.045 Community Store Contributions 3 P (0.006) Iona/Lewis Patient to South 3 T (0.046)
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Official-Protect Marie Curie contract uplift 3 P (0.004) Trakcare/Huntington’s/ Daldorch 3 P 0.086 Staff Wellbeing Posts from OH&RD 4 P 0.193 Top Slicing Posts- Prescribing 4 P (0.071) Admin Post transferred to Medical Records 4 T (0.034) Naloxone for Police Scotland 4 T 0.026 Dean Funding 5 P 0.095 Rx Top Slicing to Pharmacy 5 P (0.008) Uplift DOAC (Direct Oral Anticoagulant) Rebate 5 P 0.06 Uplift CRES to Primary Care Rebate Scheme 5 P 0.068 Dysphagia Post 5 P (0.021) ADP PSST Support 5 T 0.008 CAMHS Liaison Funding 5 T (0.350) Specialist Pharmacist in Substance Misuse 6 T 0.012 BBV (Blood Borne Virus) Funding 6 T 0.242 Maternal and Infant Nutrition Allocation 6 T 0.020 Dean Funding Pay Award 6 P 0.061 GP Office 365 Upgrade 6 T (0.137) HD200 Drug Tariff Reduction 2022-23 7 P (0.320) Medical Pay Award 2.5% Top Up 7 T 0.170 Training Grades Reduction 8 P (0.029) Pulmonary Rehab Physio Monies 8 P 0.023 Franking transfer to Acute 8 P (0.001) AHP Clinical Admin to South HSCP 9 P (0.021) ADP Reduction 9 T (0.324) District Nursing Funding 9 T 0.037 A&E Liaison funding rtn'd to South/East ADP's 9 P (0.139) Prescribing Uplift 9 T 1.787 NSAIS - Revenue Costs 9 T (0.014) Revenue to Capital - North Bladder Scanners 9 T (0.008) HD342 VETERAN MENTAL HEALTH SUPPORT 9 T 0.105 HD336 LD HEALTH CHECKS 9 T 0.039 BUVIDAL FUNDING 8A PHARMACIST TO ACUTE 9 T (0.014) MDT Reduction 9 P (0.006) TEC Contribution 10 T (0.053) COVID Funding returned to the Scottish Govt 10 T (8.263) Mental Health After Covid 10 T 0.102 Diabetes Prevention 10 T 0.042 Roundings 10 T 0.003 Budget Reported at Month 10 131.898 COMBINED BUDGET MONTH 10 276.985
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Official-Protect Appendix E Opening Reserves Position in Detail Earmarked Funds : Alcohol & Drug Partnership 890 : Mental Health Action 15 511 : Primary Care Improvement Fund 1,856 : 21-22 Budget Gap 0 : Challenge Fund 500 : Community Living Change Fund 513 : Covid19 Funding 13,321 : Neighbourhood Networks 145 : Mental Health Officer Development Grant 41 : NAC Recovery and Renewal – Mental Health Element 71 : Joint Equipment 5 : Nethermains Adaptations 40 : Supported Accommodation 50 : Care at Home Capacity 1,192 : Interim Care 1,046 : Trauma Training 50 : Trauma Trainer 48 : Family Wellbeing Fund 106 : Perinatal MH Nurse 65 : Unaccompanied Asylum-Seeking Children 11 : Multi-Disciplinary Teams 644 : Health Care Support Workers 144 : MH Recovery and Renewal 2,057 : Medical photography 4 : Data Sims 28 : School Nursing 56 : Buvidal 109 : AHP Winter Funding 51 : Perinatal and Infant Mental Health 86 : Cossette Funding 18 : Replacement Mattress Programme 78 : Expansion of Primary Care Estates 55 : GP Premises Improvements - tranches 1 and 2 81 : Mental Health Wellbeing in Primary Care 40 : Dental Practice Improvement 265 : Dental Winter Preparedness 128 Total Earmarked 24,305 Outstanding Debt (2,321) Unallocated General Fund 7,248 General Fund 29,232