Further detail

The Head of Finance provides the routine finance report which outlines the year to date and forecast position for the revenue, capital, and reform budgets.

Appendix A provides the detailed period 7 (P7) finance report.

Period 7 summary

Revenue
• The year-to-date position against forecast shows an underspend of £0.8m predominately consisting of timing variances across non-pay items.

• As previously reported, the Q2 net expenditure forecast is in line with budget and funding.

• However, the Q2 forecast position presents a number of challenges, particularly when viewed in the context of the emerging cost pressures. Key risk areas include overtime, ill-health pension costs, liability claims, and a potential inflation guarantee payment that may be triggered as part of pay award agreements.

• The forecast will be closely monitored alongside the financial threats and opportunities detailed on page 19 (Appendix A), with appropriate action to be taken to ensure a balanced budget position in line with funding.

• Funding discussions are ongoing with Scottish Government regards to Op Roll (POTUS visit) and Op Oclate (VPOTUS visit).

• The year-to-date actual position at period 7 is £0.5m under budget.
 
Capital
• The year-to-date position is higher than forecast by £0.1m.

• As previously reported, the capital forecast at Q2 is £73.1m, £2.1m above the budget position of £71.0m. The forecast overspend is fully funded by additional capital receipts and other grants.

• Capital delivery plans are reported monthly and continue to be monitored through the Capital Planning Taskforce and Capital Investment Group.

• The Q2 capital forecast requires £5.9m of slippage to be achieved throughout the remaining part of the financial year.

• Committed and uncommitted spend will continue to be monitored throughout the year and tracking of these is highlighted in Appendix A.

• Finance are engaging regularly with business areas to support delivery of their capital plans.

• The year-to-date capital spend at period 7 is over budget by £0.4m.

Reform
• The year-to-date position is lower than forecast by £0.4m.

• As previously reported, the reform forecast at Q2 of £20.8m, £0.4m (fully funded) is above the budget position of £20.4m.

• The reform forecast has removed £15.9m of the £16.2m overprogramming included as part of the approved budget, leaving only £0.3m of slippage still to be achieved across the remainder of the year.

• Committed and uncommitted spend will continue to be monitored throughout the year and tracking of these is highlighted in Appendix A.

• The year-to-date reform spend at P7 is under budget by £0.2m.