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Period 7 2020/21 (to 11 October 2020) REVENUE Revenue Projected Revised Annual Projection to Variance Economy and Skills Budget 31 March 2021 (favourable) / £m £m adverse £m Education 115.310 115.263 (0.047) Finance and ICT 8.387 8.387 0.000 Planning and Economic Development 4.921 4.765 (0.156) Central Management Support 0.491 0.491 0.000 Total (excluding COVID-19 impact) 129.109 128.906 (0.203) COVID-19 - Additional Costs and Lost Income (0.441) 0.511 0.952 2020/21 Approved Savings Impacted by COVID-19 (0.477) 0.000 0.477 Total 128.191 129.417 1.226 Key Points: Education WithinThe minorthe corefavourableservicevariancesavingsrelateson thirdprimarilyparty providersto anticipatedwithinsavingsSchoolsfromandtheEarlyreducedYears provision(£0.160m),of asSpeechwell as& savingsLanguageonTherapyutilities (services£0.052m)thisareyear,offsetoffsetby anbyinincreasedyear overspendsoftwareonlicenseEmployeerequirementsCosts as. the Early Years Service makes advanced recruitment to support 1140 Hrs development £0.218m. The balance relates to PEF funding thatAs awillresultrequireof theto beimpactearmarkedof COVIDat the-19,yearthe endScottishto supportGovernmentstaffingsuspendedand resourcethe costsstatutoryto thedutyendon ofLocalthe academicAuthoritiesyearto provide(£0.7901140m). Hours of free childcare, and authorised the use of this funding for the support of children of key workers and vulnerable children. The projection above anticipates that this funding will be used forThethisCouncilpurposehasduringbeen theallocatedyear or£other3.763alternativem of ScottishpurposesAttainmentallowedChallengewithin thefundingconditionsin 2019of the/20 grantand .the service continues to monitor expenditure in relation to this area to ensure this funding is fully spent within the year. FinancePupil EquityandfundingICT from the Scottish Government of £3.503m has been directly allocated to schools to address Thethe povertyservicerelatedcurrentlyattainmentanticipatesgapa.favourableThe abovevarianceprojectionof assumes(£0.431m)awhichfull spendis theposition,result ofhowever,employeethiscostfundingsavingsis fromunderathenumberdirectofcontrolvacantofpostsindividualaheadschoolsof its forthcomingwith the optionservicetoreviewcarry .forward unutilised funding until the end of June next year to enable the implementation of plans over an academic year. This is anticipated to result in Planningunderspends& Economicin some Developmentestablishments requiring to be earmarked at the end of the financial year, with an Theanticipatedvariancefullrelatesspend primarilyby June 2021to employee. cost savings (£0.368m), as well as budget savings in relation to the Ingram Business Hub (£0.106m) and lower than budgeted payments in relation to employability programmes (The£0.100Councilm). Thesehas beenare allocatedoffset by an£3anticipated.763m of ScottishshortfallAttainmentin income recoveryChallenge£0funding.050m. in 2020/21 and the service continues to monitor expenditure in relation to this area to ensure this funding is fully spent within the year. Policy, Planning & Performance Division ThePlanningvariance& Economicrelates to aDevelopmentshortfall in achieving turnover as a result of the service being fully staffed. The variance relates primarily to employee cost savings (£0.219m), partly offset by an anticipated shortfall in income recovery related to vacant EU funded post and the cessation of funding supporting East Ayrshire Woodlands. COVID-19 Economy & Skills costs incurred directly as a result of the impact of COVID-19 have been collated centrally totalling £0.952m. A breakdown of this across services is detailed below: Service £m Education 0.353 Finance & ICT 0.010 Planning & Economic Development 0.492 CMS 0.097 Total 0.952 Additionally, as a result of COVID-19 £0.477m of agreed 2020/21 savings within Education will not be achievable this financial year. Details of these savings are contained within the Expenditure Reduction Measures section of the covering report. Revenue Projected Revised Annual Projection to Variance Safer Communities Budget 31 March 2021 (favourable) / £m £m adverse £m Housing and Communities 15.459 15.266 (0.193) Ayrshire Roads Alliance 7.298 7.094 (0.204) Facilities and Property Management 26.702 26.507 (0.195) Human Resources 1.808 1.757 (0.051) Health and Safety 0.283 0.287 0.004 Transport Services 4.973 5.473 0.500 Transformation (inc. Policy, Planning & Performance) 1.552 1.611 0.059 Central Management Support 1.020 1.040 0.020 Arms Length Organisations 4.567 4.567 0.000 Emergency Planning 0.064 0.064 0.000 SPT 2.249 2.182 (0.067) Total (excluding COVID-19 impact) 65.975 65.848 (0.127) COVID-19 - Additional Costs and Lost Income (1.956) (0.216) 1.740 2020/21 Approved Savings Impacted by COVID-19 (0.706) 0.000 0.706 Total 63.313 65.632 2.319 Key Points: Ayrshire Roads Alliance It is anticipated that Ayrshire Roads Alliance will outturn £0.204m less than budget. This mainly reflects staff vacancies £0.299m and EAC’s Strategic Delivery savings allocation £0.317m, being offset by an overspend in maintenance sub-contractor costs, £0.367m. Human Resources The saving predominantly reflects savings on employee costs as a result of staff turnover. Transport Services It is anticipated that Transport Services will outturn £0.500m greater than budget with Education transport costs projected to outturn £0.451m greater than budget mainly due to additional contract charges. Additionally, vehicle maintenance and fleet management costs will outturn £0.049m greater than budget. A shortfall in income and various other transport costs are partly offset by staff turnover savings. Transformation (inc Policy, Planning & Performance) As in the previous year, the full service is anticipating lower than budgeted turnover due to existing staff levels, along with an under-recovery of events and sponsorship income. SPT It is anticipated that SPT will outturn lower than budget due to a lower precept payment. COVID-19 Safer Communities costs incurred directly as a result of the impact of COVID-19 have been collated centrally totalling £1.740m. A breakdown of this across services is detailed below: Service £m Housing & Communities 1.243 Ayrshire Roads Alliance 1.001 Facilities & Property Management (0.626) Human Resources 0.080 Transport Services (0.071) Transformation 0.019 Central Management Support 0.094 Total 1.740 Additionally, as a result of COVID-19 £0.706m of savings across Safer Communities services are not anticipated be achieved this financial year. Details of these savings are contained within the Expenditure Reduction Measures section of the covering report. Measures section of the covering report. Revenue Projected Revised Annual Projection to Variance Wellbeing Budget 31 March 2021 (favourable) / £m £m adverse £m Children, Families & Criminal Justice Services 20.914 20.774 (0.140) Community Care 57.474 57.058 (0.416) Service Strategy 5.130 7.008 1.878 Outwith Placements 4.848 5.079 0.231 Public Protection 0.751 0.656 (0.095) Lead Partnership Services 0.691 0.683 (0.008) Total 89.808 91.258 1.450 Premises Costs 0.435 0.435 0.000 Total 90.243 91.693 1.450 Key Points: Community Care Underspends are anticipated across Older Services (£0.107m), Learning Disabilities (£0.160m) and Mental Health Service (£0.173m). However, as noted previously, contained within this budget area is an annual HRA Adaptations budget of £1.263m. Additionally, an IJB Reserve for previous year planned work of £1.246m is retained. COVID-19 resulted in a temporary freeze on all related adaptation work which will result in a significant underspend occurring during the year. Having reviewed the level of existing commitment it was determined that no funding transfer should occur between the IJB and the HRA this year. This was approved by the Integrated Joint Board on the 26th August 2020. Service Strategy Service Strategy is projected to overspend by £1.878m and this is due to the financial impact of COVID-19. All related Wellbeing expenditure is captured here to enable regular updates to be provided to the Scottish Government. The total projected cost for COVID-19 related activity is currently £5.805m. However, £2.599m of funding has been received from the Scottish Government to offset this impact with an additional £1.242m anticipated, giving a total of £3.841m. This results in a projected net cost of COVID-19 within Service Strategy being £1.964m. The highest areas of projected expenditure are £1.500m of PPE supplies, bed flow £1.449m, residential care homes £1.564m, and care at home staffing £0.573m. Additionally, a loss of care at home and day care income totalling £0.506m is expected. Outwith Placements The projected adverse variance of £0.231m reflects the most recent position reported to the monthly Outwith Placement Screening Group on the 6th October 2020. Currently, the number of external residential placements is 17 and accounts for the majority of the projected cost, the remainder relating to additional educational support needs provided internally. Public Protection The service anticipates a favourable variance predominantly in relation to staff turnover and vacancies. Projected Revised Annual Projection to Variance Governance Budget 31 March 2021 (favourable) / £m £m adverse £m Governance 3.394 3.397 0.003 Total (excluding COVID-19 impact) 3.394 3.397 0.003 COVID-19 - Additional Costs and Lost Income (0.520) 0.000 0.520 Total 2.874 3.397 0.523 Key Points: The projected position reflects a significant loss of income across the service as a result of COVID-19. 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