Corporate Services, Managed and LGSS Cambridge Office ......LGSS Cambridge Office budgets are...
Transcript of Corporate Services, Managed and LGSS Cambridge Office ......LGSS Cambridge Office budgets are...
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Service Corporate Services, Managed and LGSS Cambridge Office
Subject Finance Monitoring Report – July 2020
Date
KEY INDICATORS
Previous Status
Category Target Current Status
Section Ref.
Green Income and Expenditure Balanced year end position
Green 1.1 – 1.3
Green Capital Programme Remain within overall resources
Green 2
CONTENTS
Section Item Description Page
1 Revenue Executive Summary
High level summary of information; By Directorate Narrative on key issues in revenue financial position
2-5
2 Capital Executive Summary
Summary of the position of the Capital programme within Corporate Services and Managed
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3 Savings Tracker Summary
Summary of the latest position on delivery of savings 6
4 Technical Note Explanation of technical items that are included in some reports
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Appx 1 Service Level Financial Information
Detailed financial tables for Corporate Services and Managed
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Appx 2 Service Commentaries
Detailed notes on financial position of services that are predicting not to achieve their budget
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Appx 3 Capital Position This contains more detailed information about Corporate Services and Managed’ Capital programme, including funding sources and variances.
10-11
Appx 4 Savings Tracker Each quarter, the Council’s savings tracker is produced to give an update of the position of savings agreed in the business plan.
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Appx 5 Technical Appendix
This contains technical financial information for Corporate Services and Managed showing:
Grant income received & service reserves
Budget virements into or out of Corporate Services
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Appx 6 Service Level Financial
Detailed financial table for LGSS Cambridge office 18
Appx 7 Service commentaries
Detailed notes on financial position of LGSS Cambridge Office that are predicting not to achieve their budget
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Appx 8 Technical Appendix
This contains technical financial information for LGSS Cambridge Office:
Grant income received & service reserves
Budget virements into or out of LGSS Cambridge Office
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1. Revenue Executive Summary
1.1 Overall Position Corporate Services, Financing costs and Managed has a budget of £57,975k in 2020/21 and is currently forecasting an underspend of £27k, a decrease of £79k since June.
1.2 Summary of Revenue position by Directorate
Outturn Variance
(June 2020) £'000
Directorate Budget £'000
Actual £'000
Outturn Variance
£'000
Outturn Variance
% Status
427 Customer & Digital Services 6,278 3,109 373 5.9% Amber
-667 Corporate Savings & Funding 5,122 0 -557 -10.9% Green
0 Business Improvement & Development 976 1,149 22 2.2% Amber
0 Resources Directorate 2,001 810 0 0.0% Green
37 Legal & Governance 2,038 700 38 1.9% Amber
0 Financing Costs 29,570 2,419 0 0.0% Green
98 Managed 11,989 7,935 97 0.8% Amber
-106 Total 57,975 16,123 -27 0.0%
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The service level budgetary control report for Corporate Services, Financing Costs and Managed can be found in appendix 1. The service level budgetary control report for LGSS Cambridge Office for June 2020 can be found in appendix 6. Pressures and deficits within LGSS Operational budgets are the responsibility of the Joint Committee. Formal risk sharing arrangements are in place such that changes in service or financing would not impact other partners. In practice, this means that where there is pressure or additional in year savings for services shared with Northamptonshire County Council or Milton Keynes Council, these do not impact on the service received by Cambridgeshire County Council or impact any overspend to be handled by CCC. Further analysis can be found in appendix 2 for Corporate Services and appendix 7 for LGSS Cambridge Office.
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1.3 Significant Issues Corporate Services and Managed are currently predicting an underspend of £27k. Significant issues are detailed below:
Customer & Digital Services
Corporate and Digital Services budgets are currently predicting an overspend of £373k, which is a decrease of £54k from the previous forecast. This is mainly due to the increased forecast underspend in Customer Services; the salary saving has been revised since recruitment cannot go ahead with Covid-19 restrictions in place.
Covid-19 Pandemic: Body Storage
The total cost of statutory duty for providing temporary Mortuary facilities remains the same as last month:
Provision of body storage facility £650k Utilities / Electricity £44k New Facility costs for Port cabin £10k Staff Costs £15k
£719K Less : Contribution from PCC @ 30% -£211k
TOTAL £508K
There are no exceptions to report this month. Corporate Savings and Funding Corporate Savings and Funding are currently predicting an underspend of £557k, which is a decrease of £110k from the previous forecast. This is mainly due to the pressure in Trading now being offset by underspends elsewhere. The favourable variance of £557k in Central Services and Organisation-Wide Risks is to offset the pressure reported by the LGSS Cambridge office, resulting from a shortfall on the savings target set for LGSS for 2019/20 which has been carried forward into 2020/21. Business Improvement & Development Business Improvement & Development budgets are currently predicting an overspend of £22k. This is mainly due to loss of income from GCP (due to restrictions in the way we are currently working with external partners because of Covid-19) and Planning & Monitoring in Business Intelligence. There are no exceptions to report this month. Legal and Governance Legal and Governance is currently predicting an overspend of £38k, same as the previous forecast. This is mainly due to a forecast overspend in Information Management. There are no exceptions to report this month.
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Managed Managed budgets are currently predicting an overspend of £97k, same as the previous forecast. This is due to the forecast overspend reported in IT managed for the additional cost of 3,500 data sim connections.
There are no exceptions to report this month. Financing Costs Financing Costs budget is currently predicting a balanced position. There are no exceptions to report this month. LGSS Cambridge Office LGSS Cambridge Office budgets are currently predicting an overspend of £557k as a result of a shortfall on the £919k savings target set for LGSS for 2019/20 which has been carried forward into 2020/21.
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2. Capital Executive summary Corporate Services and Transformation has a capital budget of £15.4m in 2020/21 and there is expenditure to date of £654k. Managed has a capital budget of £730k in 2020/21 and there is expenditure to date of £572k. There are no exceptions to report this month. Details of the final capital variances and funding can be found in appendix 3
3. Savings Tracker Summary The savings tracker is produced quarterly. The first report can be found in appendix 4
4. Technical Notes A technical financial appendix has be included as appendix 5 for Corporate Services and appendix 8 for LGSS Cambridge office. This appendix covers:
Grants that have been received by the service, and where these have been more or less than expected
Budget movements (virements) into or out of corporate services and Managed from other services (but not within corporate services and Managed), to show why the budget might be different from that agreed by Full Council
Service reserves – funds held for specific purposes that may be drawn down in-year or carried-forward – including use of funds and forecast draw-down.
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APPENDIX 1 – CS Service Level Financial Information
CS&Mgd Service Level Finance & Performance Report
Finance & Performance Report for CS/Managed - July 2020
Previous Forecast Outturn Variance
Budget 2020/21
Actual July 2020
Forecast Outturn Variance
Forecast Outturn Variance
£000's £000's £000's £000's %
Customer & Digital Services
504 Director, Customer & Digital Services 463 713 508 110%
0 Chief Executive 142 0 -13 -9%
0 Communication and Information 741 296 3 0%
-77 Customer Services 2,012 602 -126 -6%
0 IT & Digital Service 1,909 1,484 1 0%
0 Elections 165 14 0 0%
-0 Redundancy, Pensions & Injury 846 0 -0 0%
427 Customer & Digital Services Total 6,278 3,109 373 6%
Corporate Savings & Funding
0 Demography Reserve 322 0 0 0%
-667 Central Services and Organisation-Wide Risks 2,329 0 -557 -24%
0 PCC Shared Services -128 0 -0 0%
-0 Automation 0 0 -0 0%
0 Investment in Social Care Capacity 2,600 0 0 0%
-667 Corporate Savings & Funding Total 5,122 0 -557 -11%
Business Improvement & Development
0 Transformation Team 163 760 1 1%
0 Business Intelligence 813 389 21 3%
0 Business Improvement & Development Total 976 1,149 22 2%
Resources Directorate
-0 Resources Directorate 338 3 0 0%
0 Professional Finance 1,663 807 0 0%
0 Resources Directorate Total 2,001 810 0 0%
Legal & Governance
0 Legal & Governance Services 103 49 0 0%
42 Information Management 552 245 42 8%
-5 Democratic & Member Services 329 73 -5 -1%
0 Members´ Allowances 1,054 334 0 0%
37 Legal & Governance Total 2,038 700 38 2%
Managed
-0 External Audit 75 -97 -0 0%
0 Insurance 2,207 23 0 0%
89 IT Managed 3,925 2,471 89 2%
0 OWD Managed 179 36 0 0%
0 Subscriptions 110 84 0 0%
0 Authority-wide Miscellaneous 48 8 0 0%
8 HR Managed 251 99 8 3%
-0 Corporate Redundancies 0 117 -0 0%
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0 Transformation Fund 5,194 5,194 0 0%
98 Managed Total 11,989 7,935 97 1%
Financing Costs
0 Debt Charges and Interest 29,570 2,419 0 0%
0 Financing Costs Total 29,570 2,419 0 0%
-106 Total 57,975 16,123 -27 0%
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APPENDIX 2 – Service Commentaries on the Outturn Position Narrative is given below where there is an adverse/positive variance greater than 2% of annual budget or £100,000 whichever is greater for a service area.
Service Current Budget
£’000 Outturn Variance
£’000
Outturn Variance
%
Director, Customer & Digital
Services 463 508 110%
Director, Customer & Digital Services is forecasting an overspend of £508k. This is due to the cost of Statuary duty for providing temporary Mortuary facilities.
Covid-19 Pandemic: Body Storage
The total cost of statutory duty for providing the temporary Mortuary facility:
Provision of body storage facility £650k Utilities / Electricity £44k New Facility costs for Port cabin £10k Staff Costs £15k
£719K Less : Contribution from PCC @ 30% -£211k
TOTAL £508K
Customer Services 2,012 -126 -6%
Customer Services is predicting an underspend of £126k. This is due to staff vacancies,
since recruitment cannot commence due to COVID-19.
Central Services and
Organisation-Wide Risks 2,329 -557 -24%
On the Central Services and Organisation-Wide Risks budget, an underspend of £557k is reported to offset the £557k overspend on LGSS Cambridge Office.
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APPENDIX 3 – Capital Position
3.1 Capital Expenditure
Corporate Services & Managed Capital Programme 2020/21
Total Scheme Revised Budget
Original 2020/21 Budget as per
BP
Scheme
Revised Budget
for 2020/21
Actual Spend
2020/21
Forecast Spend - Outturn
Forecast Variance 2020/21
£000 £000 £000 £000 £000 £000
Corporate Services and Transformation
750 150 Essential CCC Business Systems Upgrade
184 74 184 -
6,087 1,036 Capitalisation of Redundancies
1,036 36 1,036 -
9,064 2,182 Capitalisation of Transformation Team
2,182 - 2,000 (182)
2,189 - Children's Services IT System 100 91 100 -
5,408 4,764 Data Centre Relocation 5,204 375 5,204 -
3,259 1,639 IT Strategy 1,639 79 1,639 -
44,872 3,000 Investment in Connecting Cambridgeshire
8,790 - 8,790 -
96 96 Capitalisation of Interest Budget
96 - 96 -
(4,633) (2,001) Capital Programme Variations Budget
(3,827) - (3,827) 182
67,092 10,866 15,404 654 15,222 -
Managed
5,167 - EastNet (CPSN Replacement)
273 301 273 -
458 - Disaster Recovery facility for critical business systems
141 29 141 -
660 140 IT Infrastructure refresh 165 71 165 -
354 - Replacement of office networking hardware
232 145 232 -
495 - Libraries IT Network Refresh 102 26 102 -
- - Capital Programme Variations Budget
(183) - (183) -
7,134 140 730 572 730 -
74,226 11,006 TOTAL 16,134 1,226 15,952 -
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3.2 Capital Funding
Corporate Services & Managed Capital Programme 2020/21
Original 2020/21 Funding
Allocation as per BP
Source of Funding
Revised Funding
for 2020/21
Forecast Spend Variance
£000 £000 £000 £000
Corporate Services and Transformation 3,218 Capital Receipts CS 2,574 2,574 -
- Grant Funding CS - - -
- Other Contributions CS 4,232 4,232 -
- Developer Contributions CS - - -
7,648 Prudential Borrowing CS 8,598 8,598 -
10,866 15,404 15,404 -
Managed
- Capital Receipts Mgd - - -
- Grant Funding Mgd - - -
- Other Contributions Mgd - - -
- Revenue Contributions Mgd - - -
140 Prudential Borrowing Mgd 730 730 -
140 730 730 -
11,006 TOTAL 16,134 16,134 -
3.3 Corporate Services & Managed Capital Variation
2020/21
Service
Capital Programme Variations
Budget £'000
Outturn Variance 2020/21
(July 2020) £'000
Capital Programme Variations
Budget Used £'000
Capital Programme Variations
Budget Used
%
Revised Outturn Variance
(July 2020)
£'000
Corporate Services & Transformation
-3,827 -182 -182 5% 0
Managed -183 0 0 0% 0
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APPENDIX 4 – Savings tracker
Reference Title Service Original Saving 20-21
Current Forecast Phasing - Q1
Current Forecast Phasing - Q2
Current Forecast Phasing - Q3
Current Forecast Phasing - Q4
Forecast Saving 20-21
Variance from Plan £000
% Variance
RAG
Financial
Commentary
C/R.6.103 External
Auditor fee
CS -15 0 0 0 0 0 15 100 Black
C/R.6.106
Reduction in
costs on
Redundancy,
Pensions &
Injury budget
CS -10 0 0 0 -10 -10 0 0 Green
C/R.6.108 Democratic
Services CS -30 -30 0 0 0 -30 0 0 Green
Staff savings made in Q1
C/R.7.102
Business rates
income from
Alconbury
Enterprise Zone
CS -90 -27 -27 -27 -9 -90 0 0 Green
Rates paid over 10 months of the year
G/R.6.004
Capitalisation
of interest on
borrowing
CS -49 0 0 0 -49 -49 0 0 Green
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APPENDIX 5 – Technical Note
5.1 Grant Income Analysis There is no additional grant income in 2020-21, other than what is built into the base budget.
5.2. Virements and Budget Reconciliation Customer & Digital Services:
£000 Notes
Budget as per Business Plan 9,667
Communication and Information 34 Transferred from P&C – Fostering for
member of staff
IT & Digital Services 262 Transfer from LGSS office for IT trainers-
transfer of responsibility
IT & Digital Services -400
Transfer to LGSS office for SLA to replace
recharging
Information Management -532 Transfer of responsibility to Legal &
Governance
Investment in Social Care Capacity -2,600
Transfer of responsibility to Corporate &
Savings & Funding
Director, Customer & Digital Services -77
Transfer from PCC Shared Services for
Staff Savings
Communications and Information -40 Transfer of Savings from Automation
IT & Digital Services -48
Transfer from PCC Shared Services for
Staff Savings
Non-material virements (+/- £30k) 12
Current Budget 2019/20 6,278
Corporate Savings & Funding:
£000 Notes
Budget as per Business Plan 2,326
Investment in Social Care Capacity 2,600 Transfer of responsibility from Customer &
Digital Services
PCC Shares Services 173
Transfer to Director, Customer & Digital
Services, IT & Digital and Business
Intelligence for the PCC shared staff
savings towards Staff Savings
Automation 38 Transfer of savings to Communications
and Information
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Non-material virements (+/- £30k) -15
Current Budget 2019/20 5,122
Business Improvement & Development:
£000 Notes
Budget as per Business Plan 1,027
Business Intelligence -48 Transfer of staff savings to PCC Shared
Services
Non-material virements (+/- £30k) -3
Current Budget 2019/20 976
Resources Directorate:
£000 Notes
Budget as per Business Plan 2,005
Non-material virements (+/- £30k) -4
Current Budget 2019/20 2,001
Legal & Governance:
£000 Notes
Budget as per Business Plan 1,516
Information Management 532 Transfer of responsibility from Customer &
Digital Services
Non-material virements (+/- £30k) -30
Non-material virements (+/- £30k) 20
Current Budget 2019/20 2,038
Managed:
£000 Notes
Budget as per Business Plan 12,226
IT Managed -68 Transfer to LGSS office Service Desk
IT Managed -160 Transfer to LGSS Desktop Team
IT Managed -202 Transfer to LGSS for Networks staff
HR Managed 212 Transfer from P&C for Social Work Recruit
Non-material virements (+/- £30k) -27
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Non-material virements (+/- £30k) 8
Current Budget 2019/20 11,989
Financing Costs:
£000 Notes
Budget as per Business Plan 29,570
Non-material virements (+/- £30k) 0
Current Budget 2019/20 29,570
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5.3 Reserves Schedule Corporate Services Reserves
Fund Description Balance at 01 April
2020
Movements in 2020/21
Balance at 31st
July 2020
Forecast
Balance at 31 March
2021
Notes
£'000 £'000 £'000 £'000
Equipment Reserves
Postal Service 3 -3 0 0 1
subtotal 3 -3 0 0
Other Earmarked Funds
Election Processes 312 0 312 312 2
City Deal - NHB funding 4,798 0 4,798 4,798 3
CCC Finance Office 58 0 58 58 4
Records Management 192 -38 154 0 5
subtotal 5,360 -38 5,322 5,168
TOTAL 5,363 -41 5,322 5,168
(+) positive figures represent surplus funds. (-) negative figures represent deficit funds.
Notes
1 Remaining Postal Service equipment reserve
2 Election budget to be transferred to reserve
3 New Homes Bonus funding - Greater Cambridge Partnership
4 Recharged costs for CCC Investigation
5 Earmarked reserved for Records Management, approved by GPC in July 2019
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Managed Reserves
Fund Description
Balance at 01
April 2020 £'000
Movements in 2020/21
£'000
Balance at 31st
July 2020 £'000
Forecast Balance at 31 March
2021
£'000
Notes
Other Earmarked Funds
CPSN Partnership Funds 63 0 63 63
subtotal 63 0 63 63
Short Term Provisions
Insurance Short-term Provision 911 0 911 911
Insurance MMI Provision 1,182 0 1,182 1,182
subtotal 2,093 0 2,093 2,093
Long Term Provisions
Insurance Long-term Provision 3,613 0 3,613 3,613
subtotal 3,613 0 3,613 3,613
TOTAL 5,768 0 5,768 5,769
(+) positive figures represent surplus funds. (-) negative figures represent deficit funds.
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APPENDIX 6 – LGSS Service Level Budgetary Control Report
LGSS Cambridge Office Service Level Finance & Performance Report
Finance & Performance Report for LGSS Operational - June 2020/21
Forecast Outturn Variance (31st May
2020)
Budget 2020/21
Actuals as at 31st
June 2020
Forecast Outturn Variance
£000's £000's £000's £000's %
LGSS Operational
50 Finance Services 2,163 1,324 33 2%
-110 Human Resources 2,765 561 -127 -5%
-2 Information Technology 3,997 1,626 -130 -3%
-84 Managing Director & Support 185 81 -77 -42%
-146 LGSS Operational Total 9,110 3,592 -301 0
Trading Contracts
256 Trading contracts -1,659 2,049 256 -15%
557 Shortfall on CC Savings Target -557 0 557 -100%
813 Trading Contracts Total -2,216 2,049 813 -37%
667 Total 6,894 5,641 512 7%
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APPENDIX 7 – Service Commentary on the Outturn Position
Narrative is given below where there is an adverse/positive variance greater than 2% of annual budget or £100,000 whichever is greater for a service area.
Service
Budget 2020/21
£’000
Outturn Variance
Outturn Variance
£’000 %
Shortfall on CCC Savings Target 6,894 557 8.07%
LGSS is forecasting an overspend of £667k as a result of: a shortfall of £557k on the £919k savings target set for LGSS for 2019/20 which has been carried forward into 2020/21.
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APPENDIX 8 – Technical Note (LGSS)
5.1 Grant Income Analysis Below are additional grant income in 2020-21, other than what is built into the base budget.
Grant Awarding Body Expected Amount
£’000
Skills for Care ASYE Children 44
Skills for Care ASYE Adults 20
ARU from Education Support Grant
SW Student Placement 87
Non-material grants (+/- £30k)
0
Total Grant Funding 2020/21
152
5.2 Virements and Budget Reconciliation
£’000 Notes
Budget at per Business Plan 6,279
CCC IT Recharge 628 Received from CCC IT & Digital
CCC P&C 47 Transfer from Children’s in P&C
CCS IT & Digital Services -262 Transferred to CCS IT & Digital Services for IS Trainers
Budget for CCC Networks Staff from
Managed 202 Transfer from IT Managed
Non-material virements (+/- £30k) 0
6,894
5.3 Reserve Schedule
Balance at 01 April
2020
£'000
Movements in 2020/21
£'000
Balance as at 31st July 2020 £'000
Forecast Balance at 31 March 2021
£'000 Notes
General Reserve
LGSS Cambridge Office Carry-forward 825 -228 597 284
subtotal 825 -228 597 284
TOTAL 825 -228 597 284
(+) positive figures represent surplus funds. (-) negative figures represent deficit funds.