8. Revenue Budget Monitoring
North Ayrshire Council · 30 May 2023
Back to Cabinet — 30 May 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
NORTH AYRSHIRE COUNCIL 30 May 2023 Cabinet Title: Revenue Budget 2022/23 : Financial Performance to 31 March 2023 Purpose: To advise Cabinet of the financial performance for the Council for 2022/23. Recommendation: That Cabinet agrees to: (a) note the information and financial outturn position outlined in the report; (b) approve the earmarking of £3.524m identified at 2.5 to meet future year commitments; (c) note the transfer of the net in-year underspend of £1.524m to support the Roads Maintenance budget and the Energy Smart scheme, as approved by Council; (d) note the financial performance of the Health and Social Care Partnership highlighted at 2.6; (e) note the deficit position of KA Leisure; (f) note 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 final report for 2022/23 and covers the period to the end of March 2023 (Period 12). This is the final financial performance information on which the annual accounts for the Council will be prepared. 1.3 At Period 12 the General Fund is reporting a net in-year underspend of (£1.524m), (0.4%), after transferring resources to/from earmarked reserves. This is an increase of (£0.601m) from that reported at Period 10 and is primarily related to cost reductions arising from industrial action by teaching staff during February and March 2023. As approved by Council on 1 March 2023, £1.000m of this underspend will be utilised to supplement the Council’s Roads Maintenance Programme for 2023/24 with the balance utilised to support the Energy Smart scheme.
Page 2
1.4 The Housing Revenue Account is reporting a net in-year breakeven position, after transferring resources to/from earmarked reserves. This is a movement of £0.239m from the underspend reported at Period 10. The movement is primarily related to increased Bad Debt Provision, revised Capital Charges and the under recovery of Recharge income. This has been offset by a draw on HRA Balances. 1.5 At Period 10 the Health and Social Care Partnership reported a projected underspend of (£1.181m) and work is ongoing to confirm the final outturn position for the year, the HSCP awaits final confirmation of the NHS budget outturn. It is anticipated that the Integration Joint Board (IJB) will carry forward this underspend reserves for use in future years, resulting in an in-year net breakeven position for the HSCP. 1.6 KA Leisure has yet to finalise their year-end position. However, a net trading deficit is anticipated for 2022/23 and funding to support a breakeven position will be drawn from previously approved earmarked funds. 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 The reported net in-year underspend is (£1.524m), net of transfers to/from reserves. This represent 0.4% of the Council’s total General Fund revenue budget. As approved by Council on 1 March 2023, £1.0m of this underspend will be earmarked for the Roads Maintenance budget in 2023/24 and the balance will be applied to support the Energy Smart scheme.
Page 3
2.3 The following table details the final position on a service by service basis: 2.4 The reported Aggregate External Finance within Planned Income includes a number of adjustments to Scottish Government funding from that reported at Period 10, as detailed in the following table: App. No Annual Budget Actual Outturn to 31 March 2023 Variance for year (Fav)/Adv Projected Variance at P10 (Fav)/Adv Movement Request for Carry Forward Approved @ P10 New Requests for Carry Forward Variance for Year After Carry Forward (Fav)/Adv Service Expenditure £000's £000's £000's £000's £000's £000's £000's £000's Chief Executive's 1 26,560 25,702 (858) (394) (464) 233 327 (298) Communities 2 176,746 171,407 (5,339) (3,222) (2,117) 2,184 1,419 (1,736) Place 3 54,485 55,384 899 2,196 (1,297) 286 645 1,830 Other Corporate Services 4 18,441 15,407 (3,034) (3,199) 165 959 1,133 (942) Sub Total 276,232 267,900 (8,332) (4,619) (3,713) 3,662 3,524 (1,146) Health and Social Care Partnership 120,549 120,549 - - - - - - Balance for Services 396,781 388,449 (8,332) (4,619) (3,713) 3,662 3,524 (1,146) Financing Charges 5 20,077 20,077 - - - - - - Contribution to Loans Fund Reserve 5 7,125 7,125 - - - - Total Planned Expenditure 423,983 415,651 (8,332) (4,619) (3,713) 3,662 3,524 (1,146) Planned Income Aggregate External Finance 5 (348,966) (348,950) 16 - 16 - - 16 Council Tax 5 (61,595) (61,989) (394) 34 (428) - - (394) Contribution to Capital Fund 5 161 161 - - - - - - Contribution to/from Earmarked Funds 5 (13,583) (13,583) - - - - - - Total Planned Income (423,983) (424,361) (378) 34 (412) - - (378) - (8,710) (8,710) (4,585) (4,125) 3,662 3,524 (1,524)Net Expenditure/ (Income) Non Domestic Rates Specific Grants TOTAL AEF £000's £000's £000's Revised Budget 31 January 2023 (288,560) (37,512) (21,259) (347,331) Movements: Scottish Child Bridging Payments (additional) (28) (28) 22/23 Teachers Pay Award (1,751) (1,751) DHP Accrual (373) (373) PEF Carried Forward to 23-24 442 442 CJSW Funding Adjustment 75 75 Final Scottish Government Income (290,712) (37,512) (20,742) (348,966) General Revenue Grant £000's
Page 4
2.5 Commentary on Significant Movements from the Approved Budget Detailed explanations of the significant variances in service expenditure compared to the approved budgets, together with information on funding to be carried forward to support expenditure during 2023/24, are provided in appendices 1 to 5 to this report. A full list of the proposed carry forward of earmarked funds is included at Appendix 5. A brief explanation of the significant movements for each service since Period 10 is outlined as follows: (i) Chief Executive’s – underspend of (£0.858m), an increase of (£0.464m) from the previously reported underspend. The movement since Period 10 is primarily related to: • Reduced Sheriff Officers’ commission costs, (£0.180m); • Reduced expenditure on LAN and software licenses, (£0.052m); and • Vacancy management across services, (£0.073m). It is requested that £0.327m of the projected underspend is earmarked to support anticipated additional expenditure in relation to the Scottish Welfare Fund, based on current levels of demand continuing into 2023/24. (ii) Communities – underspend of (£5.339m), an increase of (£2.117m) from the previously reported underspend. The movement since Period 10 is primarily related to: • Additional impact of industrial action by Teachers, (£0.486m); • Net teaching and non-teaching staff turnover, (£0.478m); • Lower than anticipated expenditure across Connected Communities Supplies & Services and Third Party Payments, (£0.327m); • Lower than anticipated expenditure on Early Learning and Childcare funded providers due to a lower than anticipated uptake of places, (£0.200m); • Reduced expenditure on residential childcare placements, (£0.170m); • Increased Facilities Management Income, (£0.125m); and • Lower than anticipated expenditure on Cost of the School Day, (£0.065m). It is requested that a further £1.419m is earmarked to support anticipated additional expenditure during 2023/24, including: • Classroom Assistant workforce review as part of the Supporting Needs national review process, £0.600m; • Additional funding to support Ukrainian Resettlement teaching costs, £0.259m, and Youth modern Apprentices, £0.038m; • Essential boiler and pool plant investment at Auchenharvie pool, £0.258m; • The ongoing implementation of the expansion of ELC to 1140 hrs to help address future funding reductions, £0.200m; and • Additional Cost of the School Day funds due to delays in procurement process for purchase of clothing stock for uniform exchanges in schools, £0.064m;
Page 5
Virements in relation to the realignment of Information and Culture budget lines have been included within Appendix 7. (iii) Place – overspend of £0.899m, a reduction of (£1.297m) from the previously reported overspend. The net movement since Period 10 is primarily related to: • Lower expenditure on gas and electricity, (£0.426m); • Increased income across Planning and Building Control, (£0.352m); • Lower expenditure on temporary accommodation furniture and fittings and repairs, (£0.187m); • Revised General Fund Housing arrears and bad debt provisions, (£0.157m); and • Lower expenditure in relation to the Rapid Rehousing Transition Plan, (£0.107m). These have been partly offset by additional recharges in relation to Sheltered Housing Unit community hubs, £0.233m. It is requested that a further £0.645m is earmarked to support anticipated additional expenditure during 2023/24, including: • Provision for outstanding Covid related leave entitlement within Waste Services to fund backfill arrangements, £0.177m; • Support for delayed furniture and fittings purchases across Temporary Accommodation properties £0.117m and £0.173m in relation to the Rapid Rehousing Transition Plan linked to the 5 year RRTP delivery programme; and • Funding to support the Local Heat & Energy Efficiency Scheme, £0.075m, and Trading Standards and Economic Regeneration staffing, £0.080m. In addition, a £0.023m underspend in Largs Car Park will be ring fenced to support Largs Car par activities. Virements in relation to the realignment of income budgets within Roads, Regeneration and PMI have been included within Appendix 7. (iv) Other Corporate Items – underspend of (£3.039m), a reduction of £0.165m from the previously reported underspend. The movement since Period 10 is primarily related to the in-year settlement of outstanding HSCP debt, £0.834m, partly offset by a range of centrally held funds which have not been fully utilised in year, (£0.661m). It is requested that a further £1.133m is earmarked to support anticipated additional expenditure during 2023/24, including: • Provision for contractual electricity and gas prices following recent notification of pass through costs from energy providers for 2023/24, £0.870m; • Contribution to Loans Fund Reserves to address ongoing significant cost pressures in the Capital Programme, £0.512m;
Page 6
• Provision for the review of Democratic Services’ structures linked to workload pressures, £0.250m; • Business continuity resilience infrastructure to ensure provision across localities, £0.100m; • Scottish Government Funding not fully utilised in year, £0.156m • Previously approved budget allocation to support future service delivery in relation to the CCTV Review, £0.050m; and • Essential repairs to Irvine Harbour property, £0.029m. (v) Council Tax – overrecovery of (£0.394m), a movement of (£0.428m) from the previously reported underrecovery. The movement since Period 10 is primarily related to an adjustment to the historical contribution to the Affordable Housing Reserve. Health and Social Care Partnership 2.6 The final HSCP financial performance report for the year will be presented to the Integration Joint Board on 15 June 2023 and will outline the 2022/23 financial performance in more detail. At Period 10 the HSCP reported a projected underspend of (£1.181m) and work is ongoing to confirm the final outturn position for the year, with the HSCP awaiting final confirmation of the NHS budget outturn. It is anticipated that the IJB will carry forward this underspend in reserves for use in future years, resulting in an in-year net breakeven position for the HSCP. The IJB supported in March 2023 as part of the 2023-24 budget approval, the earmarking of the 2022-23 in-year underspend to be held in a reserve to support service transformation to assist with the delivery of future efficiencies and cost reduction, including the costs associated with future Voluntary Early Release (VER) of staff. During 2022/23, £2.320m, set aside by North Ayrshire Council, has been applied to make full and final repayment of the IJB’s deficit to the Council. Housing Revenue Account 2.7 The Housing Revenue Account budgeted for a breakeven position in 2022/23. A net in-year breakeven position, net of transfers to/from reserves, has been reported. This is a movement of £0.239m from the previously reported underspend position and is summarised in the following table with further details provided in Appendix 6.
Page 7
2.8 Commentary Significant Movements from the Revised Budget Detailed explanations of the significant variances in expenditure compared to the approved budgets are provided in appendix 6 to this report. A brief explanation of the significant movements for each service since Period 10 is outlined as follows: (i) Property Costs – overspend of £1.683m, an increase of £0.122m from the previously reported overspend The movement is primarily related to increased expenditure on: • Responsive Repairs, £0.129m; • Void Repairs, £0.233m; and • Other Property Costs, £0.215m, which is primarily related to Sheltered Housing utilities. These have been partly offset by reduced expenditure on Planned and Cyclical Maintenance, (£0.427m). (ii) Administration Costs – underspend of (£0.341m), an increase of (£0.258m) from the previously reported underspend The movement is primarily related to lower than anticipated expenditure on Central Support Costs, £0.177m. (iii) Third Party Payments – overspend of £0.210m, an increase of £0.061m from the previously reported overspend The movement is primarily related to an increase in Housing Asset and Investment recharges, £0.086m. Annual Budget Actual Outturn to 31 March 2023 Variance for year (Fav)/Adv Projected Variance at P10 (Fav)/Adv Movement Note £000's £000's £000's £000's £000's Employee Costs 5,300 5,290 (10) - (10) Property Costs 18,850 20,533 1,683 1,561 122 (i) Supplies & Services 451 374 (77) (120) 43 Transport Costs 34 16 (18) (10) (8) Administration Costs 1,881 1,540 (341) (84) (257) (ii) Third Party Payments 2,550 2,760 210 149 61 (iii) Transfer Payments 155 136 (19) - (19) Other Expenditure 368 836 468 (36) 504 (iv) Capital Financing Costs 25,264 23,527 (1,737) (2,068) 331 (v) Gross Expenditure 54,853 55,012 159 (608) 767 Income (54,853) (54,038) 815 369 446 (vi) Utilisation of Reserves - (974) (974) - (974) (vii) Income (54,853) (55,012) (159) 369 (528) Net Expenditure - - - (239) 239
Page 8
(iv) Other Expenditure – overspend of £0.468m, a movement of £0.504m from the previously reported underspend The movement is primarily related to increased provision of Bad Debts, £0.497m. (v) Capital Financing Costs – underspend of (£1.737m), a reduction of £0.331m from the previously reported underspend The movement is primarily related to revised loan charges reflecting expenditure on the HRA Capital Programme. (vi) Income – underrecovery of £0.815m, an increase of £0.446m from the previously reported underrecovery The movement is primarily related to the under recovery of Recharge Income £0.397m. (vii) Utilisation of Reserves – overrecovery of (£0.974m), an increase of (£0.974m) from the previously reported position The movement is related to the drawdown of £0.974m from earmarked reserves to offset the reported overspend across the HRA. 3. Proposals 3.1 It is proposed that Cabinet agrees to: (a) note the information and financial outturn position outlined in the report; (b) approve the earmarking of £3.524m identified at 2.5 to meet future year commitments; (c) note the transfer of the net in -year underspend of £1.524m to support the Roads Maintenance budget and the Energy Smart scheme, as approved by Council; (d) note the financial performance of the Health and Social Care Partnership highlighted at 2.6; (e) note the deficit position of KA Leisure; (f) note the drawdown of HRA reserves identified at 2.7; (g) note the virements detailed in Appendix 7. 4. Implications/Socio-economic Duty Financial 4.1 General Services The final outturn position for the year is an underspend of (£1.524m) which will be applied to support the Roads maintenance budget and the Energy Smart scheme as approved by Council. Housing Revenue Account The final outturn position for the year is a net breakeven position after the draw down of HRA earmarked reserves. Human Resources 4.2 None.
Page 9
Legal 4.3 None. Equality/Socio-economic 4.4 None. Environmental and Sustainability 4.5 None. 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 31 January 2023 - Cabinet 21 March 2023
Page 10
Appendix 1 CHIEF EXECUTIVES BUDGETARY CONTROL 2022/23 REPORT FOR THE YEAR TO 31 MARCH 2023 Objective Summary Annual Budget Actual Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Chief Executive's Office Chief Executive's Office 147 156 9 6% Total for Chief Executive's Office 147 156 9 6% Financial Services Change Programme 109 109 - 0% Audit, Fraud, Safety & Insurance 703 675 (28) (4%) Corporate Procurement 1,080 910 (170) (16%) 1 Financial Services 1,533 1,487 (46) (3%) Revenues (289) (462) (173) 60% 2 Transformation 745 753 8 1% Total for Financial Services 3,881 3,472 (409) (11%) People & ICT Employee Services 999 981 (18) (2%) 3 HR & Organisational Development 1,207 1,205 (2) (0%) ICT 5,777 5,547 (230) (4%) 4 Business Support 1,537 1,537 - 0% Customer Services 8,623 8,645 22 0% 5 Total for People & ICT 18,143 17,915 (228) (1%) Democratic Services Legal & Licensing 745 705 (40) (5%) Policy, Performance & Elections 489 407 (82) (17%) 6 Communications 493 473 (20) (4%) Civil Contingencies 60 57 (3) (5%) Committee Services 782 755 (27) (3%) Member Services 1,309 1,293 (16) (1%) Ayrshire Area Support team 59 59 - 0% Information Governance 452 410 (42) (9%) Total for Democratic Services 4,389 4,159 (230) (5%) Totals 26,560 25,702 (858) (3%) Less Proposed Carry Forwards 560 560 Net Total 26,560 26,262 (298) (1%)
Page 11
Appendix 1 Subjective Summary Annual Budget Actual Outturn Annual Variance Adverse or (Favourable) % Variance £000 £000 £000 Employee Costs 17,652 17,324 (328) (2%) Property Costs 70 94 24 0% Supplies and Services 3,151 2,876 (275) (9%) Transport and Plant Costs 32 18 (14) (44%) Administration Costs 1,470 1,190 (280) (19%) Other Agencies & Bodies 7,242 7,304 62 1% Transfer Payments 889 889 - 0% Other Expenditure 72 72 - 0% Capital Financing - - - - Gross Expenditure 30,578 29,767 (811) (3%) Income (4,018) (4,065) (47) 1% Net Expenditure 26,560 25,702 (858) (3%)
Page 12
Appendix 1a CHIEF EXECUTIVES BUDGETARY CONTROL 2022/23 REPORT FOR THE YEAR TO 31 MARCH 2023 Budget £000 Variance £000 Variance as % of budget Section Note 1 Finance - Corporate Procurement Movement : There have been no significant movements since P10 1,008 (141) -14% Employee Costs - There is an underspend of £0.141m due to vacancy management. (50) (35) 69% Income - There is an over recovery of £0.035m due to increased rebates. 5 Other minor variances (170) Finance - Revenues Movement - There has been a favourable movement of £0.180m from P10 mainly due to the Sheriff Officer Commission. 7 (162) -2314% Sheriff Officer Commission - £0.162m underspend due to release of accrual which is no longer required under the new agreement terms. (11) Other minor variances (173) Note 3 People & ICT - Employee Services Movement : There have been no significant movements since P10 940 (8) -1% Employee Costs - There is an underspend of £0.008m due to vacancy management. (10) Other minor variances (18) Note 4 People & ICT - ICT Movement - There has been a favourable movement of £0.052m from P10 primarily due to underspends on LAN and software licences. 2,307 (206) -9% Supplies and Services - There is an underspend of £0.206m 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. (16) Income - This variance includes an over-recovery of £0.014m in income from IT hardware. (8) Other minor variances (230) Note 5 People & ICT - Customer Services Movement : There have been no significant movements since P10 2,540 (17) -1% Employee Costs - There is an underspend of £0.017m due to vacancy management. 298 (29) -10% Supplies and Services - There is an underspend of £0.029m due to lower than budgeted software licence costs. 6,207 71 1% Third Party Payments - There is an overspend of £0.071m. This is due to an overspend of £0.081m in community care grants. This overspend has occurred despite £0.147m unspent funding being accrued from 21/22 and a further £0.088m top up being received from Scottish Government. This is offset by £0.010m excess funding received from Scottish Government for bridging payments. (3) Other minor variances 22 Note 6 Democratic Services - Policy, Performance & Elections Movement : There have been no significant movements since P10 449 (61) -14% Employee Costs - There is an underspend of £0.041m due to vacancy management. (21) Other minor variances (82) Note 2
Page 13
Appendix 2 COMMUNITIES BUDGETARY CONTROL 2022/23 REPORT FOR THE YEAR TO 31 MARCH 2023 Objective Summary Annual Budget Actual Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Early Years Education 20,675 19,857 (818) (4%) 1 Primary Education 45,541 45,378 (163) (0%) 2 Secondary Education 51,079 51,078 (1) (0%) 3 Additional Support Needs 13,686 13,447 (239) (2%) 4 Education - Other 8,583 5,867 (2,716) (32%) 5 Pupil Equity Fund 4,972 4,972 - 0% Facilities Management 18,042 16,967 (1,075) (6%) 6 Connected Communities 14,168 13,841 (327) (2%) 7 Net Total 176,746 171,407 (5,339) (3%) Less Proposed Carry Forwards 3,603 3,603 Net Total 176,746 175,010 (1,736) (1%) Subjective Summary Annual Budget Actual Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs - Teachers 95,035 93,139 (1,896) (2%) Employee Costs - Non Teachers 59,939 57,869 (2,070) (3%) Property Costs 2,107 2,196 89 4% Supplies and Services 16,496 15,253 (1,243) (8%) Transport and Plant Costs 180 212 32 18% Administration Costs 828 754 (74) (9%) Other Agencies & Bodies 14,547 14,183 (364) (3%) Transfer Payments 580 541 (39) 0% Other Expenditure - - - 0% Capital Financing 78 70 (8) 0% Gross Expenditure 189,790 184,217 (5,573) (3%) Income (13,044) (12,810) 234 (2%) Net Expenditure 176,746 171,407 (5,339) (3%)
Page 14
Appendix 2a COMMUNITIES BUDGETARY CONTROL 2022/23 REPORT FOR THE YEAR TO 31 MARCH 2023 Budget £000 Variance £000 Variance as % of budget Section Note 1 Early Years Education Movement : There has been a favourable movement of £0.200m compared to P10. This is mainly due to a larger than expected underspend in payments to Funded Providers. 16,089 (102) -1% Employee costs: £0.102m underspend due to continuing recruitment gaps 545 (274) -50% Supplies & Services: an underspend of £0.227m in milk and healthy snack payments due to reduced uptake. There are also small underspends across remaining budgets 4,311 (627) -15% Third Party Payments: an underspend of £0.627m mainly in payments to Funded Providers largely due to lower uptake of places against anticipated projections. (372) 203 -55% Income: under recovery of milk and healthy snack grant of £0.227m due to reduced uptake. (18) Other minor movements across various budget lines It is proposed to earmark £0.200m to address funding pressures in 23/24. (818) Note 2 Primary Education Movement : There has been an unfavourable movement of £0.283m compared to P10. This is mainly due to an overspend in some schools against teaching staff (£0.168m) and a reduction in underspend (£0.123m) against non teaching staff. 44,212 (261) -1% Employee Costs : £0.430m 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. An overspend of £0.168m in teacher staff costs across a number of schools. Further management action will determine underlying reasons for these teacher overspends. 1,152 84 7% Supplies and Services : £0.086m overspend in PPP costs due to pass through utility costs subject to same inflationary pressures as other schools. 93 (44) -47% Third Party Payments: an underspend of £0.044m due to reduced recharges following a process review. (84) 58 -69% Income: under recovery of school let income due to school lets not fully operational (163) Note 3 Secondary Education Movement : There has been an unfavourable movement of £0.185m compared to P10. This is mainly due to an overspend in some schools against teaching staff (£0.098m) and a reduction in underspend (£0.072m) against non teaching staff. 44,118 (86) 0% Employee Costs : a net £0.086m underspend in employee costs - £0.186m underspend in non teaching staff costs due to recruitment gaps and a £0.098m overspend in teacher staff costs. Further management action will determine underlying reasons for these teacher overspends. 6,703 64 1% Supplies and Services : £0.064m overspend in PPP costs due to pass through utility costs subject to same inflationary pressures as other schools. 202 (35) -17% Third Party Payments: an underspend of £0.035m due to reduced recharges following a process review. (83) 56 -67% Income: under recovery of school let income due to school lets not fully operational (1) Note 4 ASN Movement: There has been a favourable movement of £0.294m compared to P10, due to a decrease in placement costs of £0.170m as there has been a reduction in young persons accessing these services; further employee costs underspends of £0.057m; and £0.059m underspend in third party payments. 12,261 (432) -4% Employee costs: £0.164m underspend in teaching costs and a £0.268m underspend in non teaching staff costs across all ASN school and bases provision from recruitment gaps. There is an ongoing Supporting Needs review and this is due to be completed later this calendar year. 993 (233) -23% There is an underspend of £0.233m 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. 499 523 105% There is an overspend of £0.523m on external specialist residential placements. Currently there are 9 children in accommodation. Joint working is ongoing with HSCP to continually assess the care setting for these children in delivering positive outcomes. 119 (58) -49% There is an underspend in payments to other bodies due to lower home and hospital charges from other local authorities of £0.021m; an underspend in payments to private nurseries for ASN assistance £0.018m; and £0.020m underspend in ASN General payments to other bodies. (527) (56) 11% Other Local Authorities income - Other Local Authorities that choose to place children in NAC establishments. There is an over recovery of £0.056m due to an increase in demand. 17 Other minor movements across various budget lines (239)
Page 15
Appendix 2a Budget £000 Variance £000 Variance as % of budget Section Note 5 Education Other Movement :There has been a favourable movement of £1.629m since P10. This is mainly due to underspends in employee costs as a result of the teachers industrial action and over achieved teacher turnover but is partly offset by an increased spend in teachers HQ cover costs. 6,799 (2,068) -30% Employee costs: mainly due to an over recovery of teacher payroll turnover partially offset against an overspend against Teachers HQ Cover costs giving a net over recovery of £0.789m. There was £1.279m underspend in relation to the industrial action by teachers during Dec 2022/Feb 2023. 356 (48) -13% Property Costs: underspends across various budget lines 169 (12) -7% Admin Costs: small underspends across all budget lines 889 (211) -24% Supplies & Services: small overspends across various budget lines of £0.018m offset by underspend of £0.215m in COSD due to procurement tendering process to obtain best value for money. 1,415 (16) -1% Third Party Payments - small overspends across various subscriptions/licences amounting to £0.039m and underspend of £0.054m 580 (39) -7% Transfer: underspend against EMA payments made (1,717) (355) 21% Income - PPP insurance rebate £0.075m, PPP deductions of £0.302m in excess of budget due to rigorous contract compliance arrangements and £0.017m salaries rec'd from capital 33 Other minor movements across various budget lines It is requested to earmark a further £0.064m of COSD funds due to delays in procurement process for purchase of clothing stock for uniform exchanges in schools It is requested to earmark £0.259m of additional funding to be used to continue to meet the additional Teaching costs of Ukrainian families. It is requested to earmark £0.600m towards the first year costs of a Classroom Assistant workforce review as part of the Supporting Needs national review process. (2,716) Note 6 Facilities Management Movement: There has been a favourable movement of £0.125m since period 10 which is primarily due to an over- recovery of income. 15,031 (585) -4% Employee Costs: Underspend of £0.050m 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 £0.309m due to recruitment challenges and reduced overtime and casual costs. 1,079 126 12% Property Costs: Overspend is primarily in relation to purchasing cleaning materials in response to Covid-19. 4,774 (873) -18% Supplies and services: There is a saving of £0.062m in food due to reduced commercial catering. There are further food savings of £0.269m due to reduced school meal uptake and £0.064m within social services. In addition, there is an underspend within Early Years of £0.444m which has arisen due to a lower attendance rate than originally anticipated. (2,982) 231 -8% Income: There is an under-recovery in commercial catering income of £0.472m 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 £0.068m and cleaning and janitorial income of £0.140m. Facilities Management continue to promote the school meal service to maximise uptake. 26 Other minor movements (1,075) Note 7 Connected Communities Movement: There has been a favourable movement of £0.327m since P10. This is a result of reduced spend across many budgets held within supplies and services £0.218m and Third Party Payments of £0.123m. 7,957 (387) -5% Employee Costs: underspends across all sectors due to vacancy management. 1,473 (19) -1% Supplies and Services: small underspends across all budget lines. 5,980 (124) -2% Third Party Payments: There are a number of underspends across various budget lines amounting to £0.124m. The NALL deficit is not included but it is expected that any deficit will be offset by a draw from earmarked funds of £0.318m set aside for this purpose. (1,805) 182 -10% Income: £0.200m under recovery across various sectors as income has not returned to pre covid levels, partly offset by over recovery in Harbour Arts Centre of £0.018m. 21 Other minor movements across various budget lines. It is requested to earmark funds of £0.038m in relation to funding for youth modern apprentices It is requested to earmark funds of £0.258m to meet essential boiler repair costs in swimming pools (327)
Page 16
Appendix 3 PLACE BUDGETARY CONTROL 2022/23 REPORT FOR THE YEAR TO 31 MARCH 2023 Objective Summary Annual Budget Actual Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Directorate and Support (26) - 26 (100%) Housing and Public Protection Building Services (2,547) (2,547) - 0% 1 Property Governance 43 43 - 0% Planning Services 376 176 (200) 0% 2 Protective Services 1,784 1,111 (673) 100% 3 Other Housing 2,936 1,855 (1,081) (37%) 4 Total for Housing and Public Protection 2,592 638 (1,954) (75%) Neighbourhood Services Roads 6,727 7,109 382 6% 5 Streetscene 5,583 5,997 414 7% 6 Waste Resources 9,748 9,941 193 2% 7 Total for Neighbourhood Services 22,058 23,047 989 4% Economic Development, Growth & Investment Economic Development 6,682 6,540 (142) 0% 8 Growth & Investment 283 283 - 0% Total for Economic Development, Growth & Investment 6,965 6,823 (142) (2%) Sustainability, Transport and Corporate Property Property Management & Investment 2,127 2,174 47 0% 9 Housing Assets & Investment (22) - 22 0% Property Maintenance (120) 40 160 0% 10 Property Running Costs 5,073 5,347 274 0% 11 Energy and Sustainability 5,657 6,297 640 11% 12 Internal Transport 10,181 11,018 837 8% 13 Total for Sustainability, Transport and Corporate Property 22,896 24,876 1,980 9% Net Total 54,485 55,384 899 2% Transfer to Earmarked Reserves 931 931 Net Total 54,485 56,315 1,830 3%
Page 17
Appendix 3 Subjective Summary Annual Budget Actual Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs 48,456 50,635 2,179 4% Property Costs 21,851 23,951 2,100 10% Supplies and Services 9,963 9,443 (520) (5%) Transport and Plant Costs 9,880 11,314 1,434 15% Administration Costs 2,096 2,010 (86) (4%) Other Agencies & Bodies 22,715 22,972 257 1% Transfer Payments - - - Other Expenditure 182 37 (145) (80%) Capital Financing 60 58 (2) Gross Expenditure 115,203 120,420 5,217 5% Income (60,718) (65,036) (4,318) 7% Net Expenditure 54,485 55,384 899 2%
Page 18
Appendix 3a PLACE BUDGETARY CONTROL 2022/23 REPORT FOR THE YEAR TO 31 MARCH 2023 Budget £000 Variance £000 Variance as % of budget Section Note 1 Building Services Movement: There has been no movement since P10 however the service continued to manage significant financial challenges. 9,164 184 2% Employee costs: There was an overspend of £0.184m in employees costs due to the increased agreed pay award and additional overtime payments to assist with labour shortages and changes to work composition. These increased costs were partially offset by a number of vacancies experienced throughout the year. 5,624 (1,151) (20%) Supplies & Services: An underspend of £1.151m 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 60 11% Transport costs: The overspend of £0.060m in transport costs is due to increasing costs of skip hire. 2,152 1,017 47% Third Party Payments: An overspend in third party payments of £1.017m. 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) (128) 1% Income: Movement across income lines has resulted in an over-recovery of £0.128m. 18 Other minor movements 0 Note 2 Planning Services Movement: There has been a favourable movement of £0.140m since P10 mainly due to increased planning fee income of £0.129m. (608) (129) 21% Income : Over recovery of £0.129m due to additional planning fee application Income. 104 (62) (60%) Supplies & Services: An underspend of £0.062m due to plans for the LDP reprofiling costs into 23-24. (9) Other minor movements (200) Note 3 Protective Services Movement: There has been a favourable movement of £0.310m since P10 mostly due to increased building warrant income of £0.149m and additional employee underspends within CCTV of £0.058m. 2,650 (173) (7%) Employee Costs: An underspend of £0.173m in staffing costs due to vacancies during the year now mostly filled with the exception of two posts. (1,231) (482) 39% Income: Over recovery of £0.418m in building warrants and £0.053m additional recharged to HRA. (18) Other minor movements It is requested to earmark £0.040m of the vacancy underspend which was funding for the Trading Standards Authorised Officer due to delays in recruiting. (673)
Page 19
Appendix 3a Budget £000 Variance £000 Variance as % of budget Section Note 4 Other Housing Movement: There has been a favourable movement of £0.435m since period 10 predominantly as a result of reductions in property costs £0.187m; bad debt provision required and arrears write offs £0.157m; and futher underspends in RRTP of £0.107m. These are partially offset by an increase in employee costs of £0.079m. 4,110 (646) (16%) 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. 3,015 (113) (4%) Property Costs: £0.192m underspend in furniture and fittings purchases and property repairs as a result of delaying replacements until an assessment of all Temporary Accommodation properties was carried out and due to staff being redeployed to assist the Ukrainian resettlement programme; and £0.031m underspend in window and contract cleaning. This has partially been offset a £0.055m overspend in furnished tenancies; £0.022m additional costs in property rents; £0.020m utility costs overspend due to rising prices; and £0.012m overspend in 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. A significant proportion of furnished tenacies are in very poor condition, work had been postponed as a result of COVID and staff shortages. The team are in the process of drawing up a schedule of works to be undertaken throughout 2023/24 to bring the accommodation back up to an appropriate standard. 1,589 (118) (7%) Third Party Payments: mainly due to £0.107m underspend on Rapid Rehousing Transition Plan costs, due to delays in the start of the programme. 104 (134) (129%) Other Expenditure: The bad debt calculation has been reviewed and adjusted to reflect the current debt collection profile resulting in a £0.096m underspend. Arrears write offs are £0.038m lower than budgeted. (6,308) (26) 0% Income: £0.051m over recovery in House and Hostel rents partially offset by under recovery of £0.023m in income from other departments. (44) Other minor movements It is requested to earmark £0.290m of this underspend, £0.117m for furniture and fittings purchases, and £0.173m for the 5 year Rapid Rehousing Transition Plan. This is in addition to the £0.121m RRTP funding that has previously been requested to be earmarked and is linked to the ongoing 5 year delivery programme. As previously highlighted, funding for the 5 year RRTP ends on 31 March 2024, there were delays to to implementation in the first two years as a result of the pandemic, funding is therefore required for the 5 year plan to be implemented beyond the 31 March 2024. (1,081) Note 5 Roads Movement: There has been a favourable movement of £0.031m since period 10. £0.022m of this favourable movement relates to Roads Lighting and Traffic Signal energy costs. 2,467 229 9% Supplies and Services: Overspend of £0.085m on street lighting and traffic signal energy costs, which is due to inflation. Overspend of £0.103m relates to coated roadstone costs, which have been adversely affected by inflation. Further overspend of £0.021m on Artificial Intelligence software costs and small overspends across the service. 2,588 (203) (8%) Third Party Payments: £0.125m budget allocated for the introduction of the Car Parking Charges and Decriminalised Parking Enforcement was not used. Underspends of £0.044m in both Coastal Assets and Flood Risk Management due to contractor delays. (3,143) 335 (11%) Income: Under recovery of income relates mainly to the £0.346m saving for Car Parking Charges and Decriminalised Parking Enforcement, which was not achieved. 21 Other minor movements. 382 Note 6 Streetscene Movement: There has been a favourable movement of £0.082m since period 10. Employee costs have decreased by £0.030m and there has been a £0.031m increase in income, mainly from work for other Council departments. 7,316 355 5% Employee Costs: There is an overspend of £0.355m in employee costs, primarily due to overtime costs, which is partially offset with increased income from other Council departments. The overspend on overtime is partly due to non scheduled operational activities such as A78 litter clearance (£0.056m), various events (£0.050m), and safety works for memorials (£0.041m). Turnover of £0.112m wasn't realised. 133 176 132% Transport Costs: There is an overspend of £0.176m in transport costs, which can be attributed partly to additional vehicles required for the Covid response, vehicles required for seasonal workers, and to support the operational needs within bereavements. In addition to this, there is a £0.062m overspend on skip hire costs. 0 352 49 14% Supplies and Services: Overspend on materials is partly offset with underspends against tools and employee uniforms. (2,698) (187) 7% Income: There is an over recovery of income of £0.086m relating to internments and £0.256m relating to income from other departments, offset with a £0.145m under recovery of fees and charges. 21 Other minor movements Included within the Streetscene outturn there is a £0.023m underspend in Largs Car Park that will be transferred to earmarked funds. 414
Page 20
Appendix 3a Budget £000 Variance £000 Variance as % of budget Section Note 7 Waste Services Movement : There has been no significant movement since P10. 5,155 915 18% 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. 489 180 37% Supplies & Services: Overspends on Trade effluent £0.147m and Refuse containers £0.131m, offset by underspends in Materials £0.074m and Leachate £0.043m. 191 (41) (21%) Admin Costs: Underspend of £0.041m due to reduced spend on external printing and advertising. 6,426 (737) (11%) Third Party Payments: Underspend in Payment to contractors of £0.718m 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. 202 161 80% Transport Costs: Overspend of £0.183m 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. (3,015) (264) 9% 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 £0.123m, along with increased income from the disposal of the content of skips over the year of £0.136m. (21) Other minor movements It is requested to earmark £0.177m to support the cover costs for the remaining Covid annual leave. 214 Note 8 Economic Development Movement : There has been no significant movement since P10. 5,522 (93) (2%) Employee Costs: Underspend of £0.093m due to vacancies across Economic Development. 5,936 (73) (1%) Third Party Payments: Underspend on consultancy within Economic Policy £0.026m. 24 Other minor movements. It is requested to earmark £0.040m of the above employee cost underspend for Interim Senior Manager positions with EDR in 2023/24. (142) Note 9 Property Management and Investment Movement : There has been no significant movement since P10. 2,485 (6) (0%) Employee Costs: An underspend of £0.006m due to vacancy management. 256 16 6% Supplies & Services: small overspends across various budget lines of £0.016m. (1,236) 31 (3%) Income: There is an under-recovery in fees general service (revenue) of £0.0.31m due to a concentration on delivery of capital projects at the current time. 6 Other minor movements 47 Note 10 Property Maintenance Costs Movement : There has been no significant movement since P10. 3,420 158 5% Property Costs: increased costs due to external consultancy work associated with supporting the Education Estate Review of £0.199m, and an increase in statutory compliance of £0.122m due to increasing compliance requirements as the specification of our property estate increases through investment, offset by £0.135m through active management of planned maintenance budgets to offset the aforementioned overspend. (3,362) (22) 1% Income: additional income from Largs Campus grant. 24 Other minor movements 160 Note 11 Property Running Costs Movement : There has been an unfavourable movement of £0.233m since P10 due to unbudgeted HRA charges for community hubs within SHUs. 6,529 265 4% Property Costs: increase in costs primarily due to unbudgeted HRA charges for community hubs within SHUs - service charges of £0.112m and internal rental charges of £0.115m. There are also additional costs against the repairs-other landlords budget of £0.038m due to the transfer of the commercial estate budget to Business Support & Development, but remaining/residual commitments with Estates/ PMI. 9 Other minor movements 274
Page 21
Appendix 3a Budget £000 Variance £000 Variance as % of budget Section Note 12 Energy and Sustainability Movement : There has been a favourable movement of £0.426m since P10. This is due to reduced expected Gas and Electricity costs. 532 (31) (6%) Employee Costs: An underspend of £0.031m due to vacancy management. 5,494 787 14% Property Costs: Due to the current energy crisis and after drawing down £0.658m from contingencies there is an overspend in property costs of £0.787m due to increased utility cost charges. Most of this is overspend is Gas of £0.854m, offset by small underspends in Biomass £0.035m and Electricity £0.035m. 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. 288 (108) (38%) Third Party Payments: Underspend of £0.108m, the majority being £0.075m in relation to the LHEES delays in appointing a consultant. (9) Other minor movements It is requested to earmark £0.075m in relation to the Local Heat Energy Efficiency Scheme due to delays in appointing a consultant. 639 Note 13 Internal Transport Movement - There has been a favourable movement of £0.035m since P10 due to a £0.039m decrease in fuel costs as a result of lower fuel prices; £0.037m lower than expected repairs and maintenance costs; £0.032m additional over recovery of income; and a £0.033m movement in other minor movements across various lines. These are partially offset by an increase in transport provision costs of £0.061m; and £0.058m of additional external hire costs. 1,802 8 0% Employee Costs: There is an overspend of £0.008m due to reduced staff turnover. 4,226 578 14% Transport Provision Costs: Projected overspend of £0.578m is largely due to direct fuel cost increases and indirect fuel and labour cost increases through our school transport contracts. 1,800 208 12% Fuel Costs: The overspend of £0.208m 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). 567 124 External Hires: Overspend of £0.124m due to additional hire vehicles as a result of increased lead time for replacement vehicles. 1,114 43 4% Repairs & Maintenance: Overspend of £0.043m 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) (92) 37% Income: Overrecovery of £0.092m in bus transport income and hire of pool vehicles. (33) 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. 836
Page 22
Appendix 4 OTHER CORPORATE ITEMS BUDGETARY CONTROL 2022/23 REPORT FOR THE YEAR TO 31 MARCH 2023 Objective Summary Annual Budget Actual Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Strathclyde Passenger Transport 2,212 2,187 (25) -1% SPT Concessionary Fares 286 286 - 0% Ayrshire Joint Valuation Board 975 932 (43) -4% 3,473 3,405 (68) -2% 1 Other Corporate Costs Pension Costs 2,545 2,545 - 0% Central Telephones 190 190 - 0% Other Corporate Items (incl Transformation Costs, Bad Debt Provision, External Audit fees and other centrally held funding.) 9,281 6,362 (2,919) (31%) 2 Insurance Account 100 100 - 0% Housing Benefit 2,852 2,805 (47) -2% 18,441 15,407 (3,034) (16%) Less Proposed Carry Forwards 2,092 2,092 Net Total 18,441 17,499 (942) (5%)
Page 23
Appendix 4a OTHER CORPORATE ITEMS BUDGETARY CONTROL 2022/23 REPORT FOR THE YEAR TO 31 MARCH 2023 Budget £000 Variance £000 Variance as % of budget Section Note 1 Joint Boards There has been no material movement from Period 10 3,473 (68) -2% Annual requisitions confirmed at less than current budget. (68) Note 2 Other Corporate Items There has been a favourable movement of £0.165m since Period 10 is primarily related to the in year settlement of outstanding HSCP debt, £0.834m, partly offset by a range of centrally held funds which have not been fully utilised in year, (£0.661m). 9,281 (2,919) 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 £0.711m of bad debt provision linked to the settlement of the outstanding HSCP debt. In addition, centrally held funds of £1.220m 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, £0.744m, and funding for pension autoenrolment and severances, £0.444m. In addition, an overrecovery of corporate income has been reported in relation to the shared AVC scheme and the purchase of additional annual leave, £0.116m. These have been partly offset by the early settlement of outstanding HSCP debt, (£0.834m). It is proposed to earmark funds of £1.967m as follows: Provision for contractual electricity and gas price increases for 2023/24 to reflect current market inflationary levels, £0.870m; Contribution to Loans Fund Reserve to address ongoing signficant cost pressures in the Capital Programme, £0.512m; Provision for the review of Democratic Services’ structures linked to workload pressures, £0.250m; Business continuity resilience infrastructure, £0.100m; Scottish Government Funding not fully utilised in year, £0.156m; Previously approved budget allocation to support CCTV Review, £0.050m; and Essential repairs to Irvine Harbour property, £0.029m. (2,919)
Page 24
Appendix 5 MISCELLANEOUS ITEMS BUDGETARY CONTROL 2022/23 REPORT FOR THE YEAR TO 31 MARCH 2023 Objective Summary Annual Budget Actual Outturn Annual Variance Adverse or (Favourable) % variance Note No £000 £000 £000 Financing Charges 20,077 20,077 - - Contribution to Loans Fund Reserve 7,125 7,125 - - Scottish Government Funding (348,966) (348,950) 16 (0%) Council Tax (61,595) (61,989) (394) 1% 1 Contribution to Capital Fund 161 161 Use of / Contribution to Earmarked Funds (13,583) (13,583) - - Net Total (396,781) (397,159) (378) 0% Carried Forward Funds to 2023-24 £000 £000 Previously Approved Grants / External Funding Early Learning and Childcare Expansion 1,622 Ukrainian Resettlement 259 ICT LAN and Telephony 166 Government funding not fully utilised 156 Cost of School Day 150 Local Heat and Energy Efficiency Scheme 75 Facilities Management - Lochshore 139 Trading Standards & Econ Dev staffing 80 Chambers webcasting 125 Youth Modern Apprenticeships 38 Rapid Rehousing Transition Plan 121 608 Sustainability agenda 80 Easter Study Support 75 Other Commitments Facilities Management - Moorpark PS 60 Energy Cost Inflation Provision 870 Educational Psychologist Staffing 58 Classroom Assistants workforce review 600 Local Development Plan 50 Contribution to Loans Fund Reserve 512 Marress House Resources 40 Scottish Welfare Fund Demand Pressures 327 Minor Adaptations 40 Auchenharvie Pool plant 258 Community Wealth Building 35 Democratic Services Structure Review 250 Democratic Service pressures 34 Early Learning and Childcare Expansion 200 23/24 Non recurring savings contributions 33 Waste Services Annual Leave 177 2,828 Rapid Rehousing Transition Plan 173 Temporary Accommodation Furniture 117 Cost of School Day 64 CCTV installation and maintenance 50 Essential repairs to Irvine Harbour property 29 Largs Car Park Fund 23 3,650 Investments Resilience Infrastructure 100 100 7,186 Note 1 Council Tax Movement: There has been a favourable movement of £0.428m since period 8. This is primarily related to an adjustment to the historic contributions to the Affordable Housing Reserve.
Page 25
Appendix 6 HOUSING REVENUE ACCOUNT BUDGETARY CONTROL 2022/23 REPORT FOR THE YEAR TO 31 MARCH 2023 Annual Budget Actual Outturn Annual Variance Adverse or (Favourable) % Variance Note No £ £ £ Employee Costs 5,300 5,290 (10) (0%) Property Costs Responsive Repairs 5,677 6,632 955 17% Void Repairs 3,147 3,476 329 10% Planned and Cyclical Maintenance 4,856 4,489 (367) (8%) Aids and Adaptions 1,617 1,590 (27) (2%) Other property costs 3,553 4,346 793 22% Total for Property Costs 18,850 20,533 1,683 1 Supplies & Services 451 374 (77) (17%) 1 Transport Costs 34 16 (18) (53%) Administration Costs 1,881 1,540 (341) (18%) 3 Third Party Payments 2,550 2,760 210 8% 4 Transfer Payments 155 136 (19) (12%) Other Expenditure 368 836 468 127% 5 Capital Financing Costs 25,264 23,527 (1,737) (7%) 6 Gross Expenditure 54,853 55,012 159 0% Income Council House Rents (53,310) (52,663) 647 (1%) Other Rents (326) (344) (18) 6% Recharges (1,071) (812) 259 (24%) Other Income (146) (219) (73) 50% Transfer from HRA Reserves - (974) (974) 0% Total Income (54,853) (55,012) (159) 0% 7 Net Expenditure - - -
Page 26
Appendix 6a HRA BUDGETARY CONTROL 2022/23 REPORT FOR THE YEAR TO 31 MARCH 2023 Budget £000 Variance £000 Variance as % of budget Note 1 18,850 1,683 9% 1,683 Note 2 451 (77) -17% (77) Note 3 1,881 (341) -18% (341) Note 4 2,550 210 8% 210 Note 5 368 468 127% 468 Note 6 25,264 (1,737) -7% (1,737) Note 7 (54,853) (159) 0% (159) Third Party Payments Movement - there has been an favourable movement of £0.258m primarily due to an underspend on central support costs. An overspend of £0.468m in Other Expenditure mainly due to an increase in bad debt provision of £0.497m Section Property Costs An overspend in property costs of £1.683m. This is due to an overspend of £0.955m in Responsive Repairs, £0.329m in Void Repairs and £0.766m in other property costs of which £0.138m relates to increased Council Tax payments and £1.010m in sheltered housing utility costs. This is partially offset by an underspend of £0.366m in Planned and Cyclical Maintenance and £0.028m in Aids & Adaptations. Movement - an adverse movement of £0.122m since Period 10. This is due to an increase of £0.129m in Responsive Repairs, £0.233m in Void Repairs and £0.215m in Other Property costs partially offset by a reduction of £0.427m in Planned and Cyclical Maintenance and £0.028m in Aids & Adaptations. An underspend in administration costs of £0.341m. This is primarily due to an underspend of £0.130m in legal fees and £0.177m in central support costs. Administration Costs Supplies and Services An underspend in supplies and services of £0.077m. This is primarily due to an underspend of £0.072m in computer equipment. Movement - an adverse movement of £0.043m since Period 10. Capital Financing Costs Movement - an adverse movement of £0.331m since P10 due to revised loan charges linked to revised capital expenditure requirements. Other Expenditure There is an underspend in capital financing costs of £1.737m due to reduced loan charges. This is due to the reduced levels of expenditure currently being experienced in the HRA Capital budget. Income Movement - an adverse income movement of £0.446m since Period 10. This is due to a reduction of £0.046m in Council House rents, £0.035m in Rents, £0.397m in Recharges partially offset by an increase of £0.032m in other income. This movement has been offset by a drawdown from Earmarked Reserves of (£0.974m). An under recovery in income of £0.815m. This is due to an under recovery of £0.647m in Council House Rents and £0.259m In Recharges. This is partially offset by an over recovery of £0.018m in Rents and £0.073m in Other Income. This has been offset by a drawdown from Earmarked Reserves of (£0.974m). Movement - there has been an adverse movement of £0.061m since Period 10. This is primarily due to an increase of £0.086m in Housing Asset and Investment recharges partially offset bya reduction of £0.019m in the ASB & Tenancy support charges. Movement - there has been an adverse movement of £0.504m since P10. This is primarily due to an increase in bad debt provision of £0.497m An overspend in third party payments of £0.210m. This is primarily due to an overspend of £0.271m in the Housing Asset and Investment recharges partially offset by an underspend of £0.057m in the ASB & Tenancy support charges.
Page 27
Appendix 6a B/fwd from 2021/22 Transfer to / from Reserves Use of Earmarked sums Earmarking of in year surplus Funding of Capital Projects Balance at 31/03/23 £m £m £m £m £m £m 5.280 - - - (0.571) 4.709 1.500 - - - - 1.500 5.000 - - - - 5.000 1.558 (0.974) - - - 0.584 0.123 - - - - 0.123 0.270 - - - - 0.270 0.416 - - - - 0.416 0.052 - - - - 0.052 0.636 - - - - 0.636 0.781 - - - - 0.781 15.616 (0.974) - - (0.571) 14.071 Major Refurbishment Works Council House Building Fund Welfare Reform Unearmarked Tenant led budget HRA reserves and balances Sustainability Fund Voids - non programmed works Software Licences Electrical Testing Infrastructure Improvements
Page 28
Appendix 7 1) Budget Virements Place Roads Third Party Payments T 0.145 Roads Employee Costs T 0.079 Roads Supplies and Services T 0.065 Roads Income T -0.289 Regeneration Grant Income T 0.088 Regeneration Third Party Payments T -0.039 Regeneration Employee Costs T -0.049 PMI Supplies and Services T -0.196 PMI Income T 0.196 0.000 Information and Culture - Third Party Payments T 0.020 Information and Culture - Property Costs T 0.085 Information and Culture - Supplies and Services T -0.071 Information and Culture - Transport Costs T -0.005 Information and Culture - Income T -0.029 0.000 Communities Budget Management - 31 March 2023 Virement/Budget Adjustments 2022/23 Perm (P) / Temp(T) Virement £m Directorate Total £m