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Capital Budget Outturn 2017/18

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Capital Budget Outturn 2017/18 NOT PROTECTIVELY MARKED SCOTTISH FIRE AND RESCUE SERVICE The Board of Scottish Fire and Rescue Service Report No: B/FCS/13-18 Agenda Item: 14 Report To: THE BOARD OF SCOTTISH FIRE AND RESCUE SERVICE Meeting Date: 25 OCTOBER 2018 Report Title: CAPITAL BUDGET OUTTURN REPORT 2017/18 Board/Committee Meetings ONLY Report For Noting For Reports to be held in Private Classification: Reason 1 Purpose 1.1 To advise the Board of the final Capital Budget position for the financial year ending 31 March 2018 and to outline the areas which have benefitted from the investment. 2 Background 2.1 The Scottish Government allocated funding to SFRS within its 2017/18 Budget of £311.825 million. This funding comprised a Cash Departmental Expenditure Limit (DEL) of £287.146 million and £24.679 million in respect of depreciation (Ring-fenced or “non- cash” DEL). 2.2 Within the Cash DEL funding for 2017/18, the Capital Programme was set at £32.500 million and the balance of £254.646 million was assigned to the Resource Budget. 2.3 In addition to DEL funding, the Capital Programme initially anticipated income from capital receipts of £9.500million, which was revised during the year to £8.397 million. 3 Final Outturn 3.1 The final Net Capital Expenditure for 2017/18, as reported in the draft accounts, was £31.335 million which comprised the following: £000 Capital Category Programme Property 11,565 Vehicles 17,001 ICT 4,119 Operational Equipment 7,047 GROSS EXPENDITURE 39,731 Capital Receipts -8,397 NET EXPENDITURE 31,335 SFRSBoard/Report/CapitalBudget Page 1 of 10 Version 1.0: 10/10/2018 OutturnReport2017-18 NOT PROTECTIVELY MARKED 3.2 When compared with the Capital DEL funding, this represents an underspend against budget of £1.165 million (0.037%). £1.112 million of the underspend was due to the SFRS being able to reclaim VAT from 16 March 2018, which was two weeks earlier than anticipated. £0.053 million of the underspend was due to good/services not being received by 31 March 2018. 3.3 Capital Receipts of £8.397 million arose from the sale of the former Fire Service Training College at Gullane, the former Grampian Fire Service’s Headquarters at North Anderson Drive, former Kinlochleven Fire Station, excess land at Balloch, Tongue and Beauly, as well as miscellaneous vehicle and operational equipment sales. 4 Investment Delivered 4.1 Property 4.1.1 Investment of £11.565 million in the property portfolio has enabled the Service to: Complete the redevelopment of Stornoway Fire Station & District Office Commence construction of the Newbridge Training Facility Complete the Dundee Operations Control Segregate the site & dispose of the former GFRS HQ, Aberdeen Demolish the former GFRS workshops and provide new USAR/BA training building and tower at North Anderson Drive, Aberdeen Commence Refurbishment of McDonald Road Fire Station, Edinburgh Complete Fire Training facilities at Kirkwall, Orkney Complete Fire Training facilities at Sumburgh, Shetland Complete various elemental upgrades and replacements through the Minor Works programme; o Progress installation of emergency power generators on island fire stations o Undertake minor upgrades to 112 (31%) of our fire stations across Scotland as detailed in Appendix A, focussing on installation of fire detection systems across the North (88) and West (7), replacement appliance bay floors in the East (2), North (10) and West (2), replacement appliance bay doors in the North (25) and West (3), replacement roofs in the East (5) and West (6) and firecat decommissioning and relocation in the West (9). 4.2 Vehicles 4.1 Investment of £17.001 million in the vehicle fleet has provided: The commencement of 30 new 18t Rescue Pumps (payments for chassis plus stage 1 and stage 2 bodybuild) The completion of 3 fully clad Rapid Response Units (RRUs) and the stage 1 and 2 payments for 37 further RRUs 2 fully completed Aerial Ladder Platforms (ALPs) 5 fully completed Water Rescue Units The commencement of 5 MTFA Units (chassis delivered, kit out next financial year) 1 new Ford Ranger to support operational response in the Shetland Islands 3 new Sprinter Vans for Stores 144 cars for flexi duty officers and SLT 4.3 4.3.1 ICT Investment of £4.119 million in our ICT infrastructure has enabled: Completion of the Wide Area Network to all sites including local WiFi Replacement of 630 PCs, 400 laptops, 650 fireground radios and 1340 mobilisation pagers, Purchase and installation of 4 additional video conferencing units Purchase and installation of 254 Operational Intelligence tablets within vehicles Development of replacement Health & Safety IT System Replacement of firewall hardware and software SFRSBoard/Report/CapitalBudget Page 2 of 10 Version 1.0: 10/10/2018 OutturnReport2017-18 NOT PROTECTIVELY MARKED Procurement of integration tool, Boomi, to provide systems integration Completion of the migration phase of the Command and Control Futures (CCF) Project, with the go live of the North Control Room at Dundee in September 2017; and the conclusion of the procurement process for the new Command and Control Mobilising System, with the contract being awarded to Systel SA in December 2017. 4.4 4.4.1 Operational Equipment Investment of £7.047 million in Operational Equipment has enabled the purchase and commissioning of : 7,000 sets of foul weather PPE, to enable a roll out across all firefighters 3,000 sets of structural fire kit, being the first of 4 phases 160 breathing apparatus entry control boards 240 sets of PPE, 240 sets of ballistic body armour, medical equipment and bags for MTFA 3000 class 2 Hi-Viz IC tabards 120 Gas tight suits 100 PRPS suits 30 sets of ladders 70 Safe Working at Heights (SWAH) kits for the former H&I area, ensuring all parts of Scotland now have access to this equipment 30 (LPPs) Light Portable Pumps 100 automatic external defibrillators for the former H&I area, ensuring all parts of Scotland now have full access to this equipment 100 complete trauma bags 5 Recommendation 5.1 The Board is asked to note the contents of this report. 6 Key Strategic Implications 6.1 Financial 6.1.1 These are detailed in the final outturn - section 3. 6.2 Legal 6.2.1 External legal support is in place to facilitate the sale of assets. 6.3 Performance 6.3.1 Progress against the Capital Programme has been monitored on a monthly basis and reported to the Board at each of its meetings. 6.4 Environmental & Sustainability 6.4.1 The final introduction and deployment of the 40 RRUs and the 32 Pumping Appliances (Euro 6 Engines) next year will assist SFRS with its commitment to carbon reduction. 6.4.2 Environmental and sustainability plans are incorporated within each of the property projects. 6.5 Workforce 6.5.1 SFRS employees will benefit from this asset investment. 6.6 Health & Safety 6.6.1 The introduction of new appliances, equipment and property, as well as ICT upgrades, will further enhance the health, safety and welfare of employees and the public. SFRSBoard/Report/CapitalBudget Page 3 of 10 Version 1.0: 10/10/2018 OutturnReport2017-18 NOT PROTECTIVELY MARKED 6.7 Timing 6.7.1 This report covers the financial year 2017/18. 6.8 Equalities 6.8.1 Equality Impact Assessments were developed and managed across the various capital projects. 6.9 Information Governance 6.9.1 Information governance risks were addressed on a project by project basis. 6.10 Risk 6.10.1 In setting its Capital Programme for the period 2017-2020 (March 2017), the Board recognised a number risks which could impact on our ability to appropriately invest in our asset base. 6.10.2 Risks were recognised in relation to the delivery and value of capital receipts. During the year the sale of Mounthooly was postponed due to delays in the sale process, however the impact of this was managed to match expenditure to income/funding. 6.10.3 The possibility of the Service becoming eligible to reclaim VAT before the end of the financial year was not anticipated, however this did arise, unexpectedly, at the very end of the financial year, resulting in an underspend that could not be avoided. 6.11 Communications & Engagement 6.11.1 Work will be undertaken to communicate the benefits of this investment to our staff and communities. 6.12 Training 6.12.1 Training and familiarisation of the new RRUs and associated equipment technologies is being rolled out across the Service over the next 18 months. 6.12.2 The enhanced training facilities at Sumburgh and Kirkwall will reduce employee travelling times and better enable the maintenance of operational competence across the Service. 7 Core Brief 7.1 The Director of Finance and Contractual Services advised the Board of the final Capital Budget position for the financial year ending 31 March 2018 and outlined the areas which have benefitted from the investment. 8 Appendices/Further Reading 8.1 Appendix A provides details of the minor upgrades undertaken to 112 (31%) of our fire stations across Scotland. Tracey-Anne Morrow, Capital Accountant and Iain Morris, Head of Asset Prepared by: Management Sponsored by: Sarah O’Donnell, Director of Finance and Contractual Services Presented by: Sarah O’Donnell, Director of Finance and Contractual Services SFRSBoard/Report/CapitalBudget Page 4 of 10 Version 1.0: 10/10/2018 OutturnReport2017-18 NOT PROTECTIVELY MARKED Links to Strategy Our Money & Our Performance – SFRS Strategic Plan 2016-19 Governance Route for Report Meeting Date Comment Strategic Leadership Team 22 October 2018 For Noting SFRS Board 25 October 2018 For Noting SFRSBoard/Report/CapitalBudget
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