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CT & NDR Monitoring 1314

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CT & NDR Monitoring 1314 Glasgow City Council Executive Committee Report by Councillor Paul Rooney, City Treasurer Contact: Lynn Brown Ext: 73837 BUDGET MONITORING 2013-14 ; PERIOD 12 Purpose of Report: This report provides a summary of the financial performance for the period 1 April 2013 to 14 February 2014. Recommendations: The Executive Committee is asked to: i. approve the adjustments relating to the revenue budget at section 4 and investment programme at section 5.3 ii. note that this report and all detailed service department reports will be considered by the Finance and Audit Scrutiny Committee Ward No(s): Citywide: Local member(s) advised: Yes No consulted: Yes No PLEASE NOTE THE FOLLOWING: Any Ordnance Survey mapping included within this Report is provided by Glasgow City Council under licence from the Ordnance Survey in order to fulfil its public function to make available Council-held public domain information. Persons viewing this mapping should contact Ordnance Survey Copyright for advice where they wish to licence Ordnance Survey mapping/map data for their own use. The OS web site can be found at <http://www.ordnancesurvey.co.uk> " If accessing this Report via the Internet, please note that any mapping is for illustrative purposes only and is not true to any marked scale 1. Introduction 1.1 This report provides a summary of the financial performance for the period 1 April 2013 to 14 February 2014. 2. Reporting Format 2.1 This report provides a summary of the Council’s financial position. This report, together with detailed monitoring reports on a Service basis, will be referred to the Finance and Audit Scrutiny Committee for detailed scrutiny. 3. Approved Budget 3.1 The 2013-14 budget was approved by council on 7 February 2013 and the detailed service estimates subsequently approved by the Executive Committee on 21 March 2013. These budgets are shown as "Original Annual Budget”, in the attached monitoring statements. In order to monitor financial performance accurately, budgets will be updated each period to reflect new monies, operational changes and any additional approvals. 3.2 The key changes to the original budget made since period 2 are explained in section 4, below. 4. Revenue Budget 4.1 Since period 11, there has been a net budget increase of £0.2m. Service specific budget changes are summarised in the table below. Changes to Changes to Net expenditure income expenditure budget budget budget £ £ change £ Budget Changes Brought Forward +91,400,000 +61,702,300 +29,697,700 Chief Executive's Office and Corporate -23,100 0 -23,100 Services Development & Regeneration Services +32,000 0 +32,000 Education Services +221,700 +202,100 +19,600 Financial Services 00 0 Land and Environmental Services +45,000 0 +45,000 Scientific Services 00 0 Related Companies 0 0 0 Social Work Services +650,000 +537,000 +113,000 Total Budget Changes this Period + 925,600 +739,100 +186,500 Cumulative Budget Changes +92,325,600 +62,441,400 +30,154,200 4.2 The significant budget changes since period 11 are noted below: 4.2.1 Income and Expenditure budgets within Social Work Services have been increased by £0.5m in respect of a realignment of interim funders budgets and additional funding from the health board in respect of care home admissions.. 4.2.2 Expenditure budgets within Social Work Services have been increased by £0.1m in respect of the Sensory Impairment Strategy funded by the Scottish Government. 4.3 There have also been adjustments to income and expenditure budgets in line with the Executive Director of Finance’s delegated powers and budget realignments between and within various service departments to reflect the transfer of responsibilities and service reconfigurations. 5. Investment Programme 5.1 The net expenditure budget for the investment programme decreased by £34.1m up to the end of period 10. During period 11 there have been some minor budget changes totalling £0.2m resulting in a total net budget decrease for the year of £33.9m. Previously approved budget changes 5.2 There have been a number of virements, approvals and minor adjustments to expenditure and income totalling £0.2m approved under delegated authority by the Executive Director of Financial Services and Deputy Chief Executive. Budget changed requested 5.3 The following adjustments require approval by the Executive Committee and have no impact on the net expenditure budget: 5.3.1 An increase to gross expenditure and income budgets of £0.75m for the enhancement of cycling and walking routes within the vicinity of the new Southern General Hospital funded by NHS Greater Glasgow and Clyde; 5.3.2 An increase to gross expenditure and income budgets of £0.13m to provide cycling and walking improvements at Shieldhall Road and Hurlet Road funded by Renfrewshire Council; 5.3.3 An increase to gross expenditure and income budgets of £0.3m following an agreed contribution from Clyde Gateway to improve public transport facilities; 5.3.4 An increase to gross expenditure and income budgets of £0.412m following an agreed contribution from Community Safety Glasgow towards the Glasgow Operations Centre. Summary Position 6. Revenues 6.1 Council Tax 6.1.1 As previously reported, having completed an updated probable projection at period 8, the actual income expected to be collected from Council Tax is £249.5m in line with the approved budget. 6.1.2 The Council Tax collected to 28 February 2014 amounts to £175.3m. This represents 91.22% of the figure to be collected and is 0.79% ahead of last year’s equivalent collection figure. The target rate of collection for Council Tax this year is 93%. 6.2 Non Domestic Rates 6.2.1 Non Domestic Rates income is allocated to councils as part of the local government settlement and represents a fixed percentage of the overall national pool. It therefore does not vary in relation to the actual amount of cash collected by the council. 6.2.2 The Non Domestic Rates collected to 28 February 2014 amount to £336.0m. This represents 94.15% of the figure to be collected and is 0.03% behind last year’s equivalent collection figure. This position has fluctuated over recent periods and continues to be kept under close review. The target rate for collection for Non Domestic Rates for this year is 96%. 7. General Fund 7.1 Net expenditure is running at 100.5% of profile, representing an overspend of £6.3m related to overspends within Social Work Services and Education Services offset by an underspends in Benefit Payments. 8. Services 8.1 Social Work Services £4.7m 8.1.1 The principal reasons for this overspend relate to homecare, the implementation of the personalisation programme, the lack of available accommodation for homelessness and placements for looked after children. The Executive Director of Social Care Services has identified a number of actions to mitigate these pressures. 8.2 Education Services £2.2m 8.2.1 The principal reasons for this overspend relate to teacher costs within the primary and secondary sectors related to an increase in school rolls. The Executive Director of Education has developed an in year action plan identifying further savings to address these financial challenges. 8.3 Financial Services – Benefit Payments -£0.4m 8.3.1 This reflects a lower level of Council Tax Reduction awarded to date than anticipated. 8.4 Other Services -£0.2m 8.4.1 The remaining services are underspent mainly due to non filling of vacancies. 9. Cost Analysis 9.1 The key variances at period 12 are noted below: Employee costs are overspent by £2.7m (0.5%) mainly in respect of teacher staffing related to rising school rolls. Premises costs are underspent by £0.3m (0.4%) mainly in relation to restrictions in non essential repairs. Transport and plant costs are overspent by £3.4m (16.7%) mainly in respect of client demand within Education and Social Work Services and associated fuel and maintenance charges. Supplies and Services are overspent by £3.3m (1.7%) mainly in respect of higher utility costs for street lighting and equipment costs offset by restrictions in non essential spend. Third party payments are overspent by £4.8m (1.0%) mainly in respect of purchased placements in relation to children, homecare and personalisation costs. Transfer payments are underspent by £0.6m (0.1%) mainly in respect of lower initial demand in respect of the Council Tax Reduction Scheme. Allocations are underspent by £1.3m (20.2%) mainly in respect of additional recoveries in respect of project management and design costs. Income is over recovered by £5.7m (1.0%) mainly in respect of recharges to the capital programme. 10. Trading Operations 10.1 Both Trading Operations are currently operating in line with their budgets with no significant variances. It is expected that they will achieve a break-even position in 2013-14 (excluding FRS 17 retirement benefits costs, which are not included in Trading Operations’ charge-out rates). 11. Service Reform 11.1 The Council has established a comprehensive Service Reform Programme with a view to generating significant efficiencies and savings. Initiatives with a value of £51.9m have been incorporated within Service budgets for 2013-14. Therefore, successful delivery of these anticipated savings is key to Services operating within their annual budgets. 11.2 Overall, the programme is projected to deliver 93% of budget. The current estimated shortfall in the savings target for the overall programme is £3.8m (7%) and mainly relates to a timing delay in the delivery savings related to personalisation. This has been included within the relevant Services monitoring statement. Executive Directors will continue to identify options to mitigate the impact of these shorfalls within their overall budgets.
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