Agenda item

Consider report by Chief Financial Officer.  (Copy attached).

There had been circulated copies of a report by the Chief Financial Officer providing an update on the progress of the 2019/20 Capital Financial Plan and seeking approval for virements and the reallocation of funds.   The monitoring tables in Appendix 1 to the report detailed actual expenditure to 30 September 2019.  Key issues identified in the tables were summarised within the main report.  The tables identified a projected net budget variance of £8.224m, which was made up of timing movements into 2020/21 of £10,268m. The most significant of which were Land & Property of £1.6m (including £0.710m asset rationalisation and £0.329m building upgrades), School Estate Block, £1.3m, Dementia Care, £0.4m, Culture & Sport, £0.5m, Great Tapestry of Scotland £2.7m, Borders Innovation Park £2.5m and Regeneration projects, £1m.  This timing movement was offset by CFCR for IT equipment, £0.2m and Digital Learning £1.8m expenditure fully funded by capital receipt.  Appendix 2 contained a list of the block allocations approved for this year and the various approved and proposed projects to be allocated from them within the 2010/20Capital Plan.  Appendix 3 contained a list of estimated whole project capital costs for single projects which would not be completed in the current financial year.  Appendix 4 to this report was presented in private due to expenditure proposed to be incurred by the authority for the acquisition of property and terms proposed by or to the authority in the course of negotiations for a contract for the acquisition of property.  Mr Robertson confirmed that a review of the Capital Plan would be undertaken as part of the 2020/21 Financial Planning process and this would allow the Council to better profile spend within the blocks which would optimise available funding for specific projects within the Capital Plan.  He further advised that the delay in the relocation of the HQ staff restaurant and main reception had caused a re-programme of the capital block and the demolition of the Old Canteen Building would now take place in Spring 2020.  The change in the profile of the school estate block within the capital programme had arisen because of delayed delivery of the programmed works in schools to improve toilet provision and facilities for pupils with additional support needs.  The Great Tapestry of Scotland was progressing well and was forecasted to be delivered within the approved budget and completion would now be September 2020.  Members noted the large number of projects being undertaken and officers explained to Members the reasons behind any slippage and advised that delays were often caused by third parties and outwith the Council’s control.  The review to improve the accuracy of the Capital Planning process was welcomed.

DECISION

(a)     AGREED the projected outturns in Appendix 1 to the report as the revised capital budget and approved the virements required.

(b)    NOTED:-

          (i)      the budget virements previously approved by the Chief Financial Officer and Service Director Assets and Infrastructure detailed in Appendix 2 under delegated authority;

          (ii)     the list of block allocations detailed in Appendix 2 to the report;

          (iii)    the list of whole project costs detailed in Appendix 3 of the report; and

(iv)    the update in private detailed in Appendix 4 to the report on the priority regeneration actions and reallocation of Scottish Government Town Centre Funds in year.