corporate services, managed and lgss cambridge office ......lgss cambridge office budgets are...

1

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

6

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

6

Appx 1 Service Level Financial Information

Detailed financial tables for Corporate Services and Managed

7-8

Appx 2 Service Commentaries

Detailed notes on financial position of services that are predicting not to achieve their budget

9

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.

12

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

13-17

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

19

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

20

2

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%

3

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.

6

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


£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%

8

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.

10

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 -

11

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


Budget Used £'000


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




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

13

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


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

14

Non-material virements (+/- £30k) -15


Business Improvement & Development:

£000 Notes


Business Intelligence -48 Transfer of staff savings to PCC Shared

Services


Current Budget 2019/20 976

Resources Directorate:

£000 Notes




Legal & Governance:

£000 Notes


Information Management 532 Transfer of responsibility from Customer &

Digital Services




Managed:

£000 Notes


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


15



Financing Costs:

£000 Notes




16

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

17

Managed Reserves

Fund Description

Balance at 01

April 2020 £'000


£'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


18

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


£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.

20

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


6,894

5.3 Reserve Schedule

Balance at 01 April

2020

£'000


£'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


corporate services, managed and lgss cambridge office ......lgss cambridge office budgets are...

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