Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Housing and Public Protection): 19th January 2012
Report of the Director of Legal, Public Protection and Housing Services
Revenue and Capital Monitoring for the Period 1st April 2011 to 30th November 2011
Purpose of the Report
1. To bring to the attention of this Scrutiny Committee, the position in respect of revenue and capital expenditure for the period 1st April 2011 to 30th November 2011 regarding those revenue and capital budgets, which form this Committee’s remit.
1. It is recommended that the Scrutiny Committee note the position with regard to the 2011/12 revenue and capital monitoring.
Reason for the Recommendation
1. That Members are aware of the position with regard to the 2011/12 revenue and capital monitoring relevant to this Scrutiny Committee.
2. On 16th November 2011, Cabinet approved the amended revenue budget for 2011/12 (min no c1511). Reports monitoring expenditure are brought to this Committee on a regular basis.
Relevant Issues and Options
3. The Revenue Budget and projected outturn for 2011/12 are shown in Appendix 1.
4. Public Sector Housing (HRA) - The Housing Revenue Account is predicted to outturn on target. There is a current favourable variance of £288k mainly due to a recharge of £121k for employee costs involved in the Housing Stock Transfer pre-ballot. Further favourable variances are £74k relating to employee vacancies, £105k for supplies and services, £48k for premises costs, external income of £39k and £7k for transport costs. These savings are partially offset by a current adverse variance of £106k for Housing repairs.
5. Private Sector/General Fund Housing and Community Safety - The Housing General Fund is predicted to outturn on target. There is a current favourable variance of £34k due to savings of £14k for third party accommodation payments (bed and breakfast), a favourable variance of £19k in housing benefits receipts and £13k for supplies and services. The underspend is partially offset by an adverse variance of £7k in respect of employees costs i.e. agency cover.
Capital Programme 2011/2012
6. Appendix 2 details financial progress on the Capital Programme as at 30th November 2011.
7. For all schemes where it is evident that the full year's budget will not be spent during the year, the relevant officers will be required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.
8. Castleland Renewal Area Office Refurbishment - The costs on this budget have come in some £52,000 lower than originally estimated, and it has been requested that the 2011/12 budget be reduced to £100,000 which reflects the full expenditure on the scheme.
Variance between Actual Spend to date and Profiled Spend
9. Cabinet have previously agreed that further information would be provided where schemes have a value of over £500,000 and show a variance of 20% or more between actual spend and the profile. The following schemes meet this criteria:-
10. Housing Improvement Programme (Window and Door Replacements) - Work is proceeding well on site although expenditure has fallen behind the initial profiled budget due to longer than anticipated periods to manufacture the window units before they could be fitted. A full spend is still achievable on this budget by year-end.
11. Housing Improvement Programme (Roof Renewals) - Works have not progressed as anticipated as environmental, aerial and asbestos surveys were needed. Methods of working have now been agreed with tenants before starting on site. Only one area commenced before Christmas whilst two others will proceed following Christmas. At this stage it is still anticipated that a full spend will still be achievable by year-end, weather permitting.
12. Castleland Renewal Area - As Cabinet have previously been informed, there have been delays in obtaining homeowners' written agreement to the facelift scheme due to the large number of let properties in the Castleland ward. Despite works proceeding well on site, there is some doubt whether a full spend can still be achieved on this budget. As these works can be adversely affected by bad weather in winter months, it was suggested that Committee be kept informed if there is a need for slippage of this budget.
13. Appendix 3 provides non-financial information on capital schemes with a budget of over £100,000. Where a budget shown in Appendix 2 is more than £100,000 but is made up of several schemes that individually are less than £100,000, the scheme is not included in Appendix 3.
Resource Implications (Financial and Employment and Climate Change, if appropriate)
14. As detailed in the body of the report.
Legal Implications (to Include Human Rights Implications)
Crime and Disorder Implications
16. It has been suggested that the services provided within the Committee's remit will assist in reducing the incidence of crime.
Equal Opportunities Implications (to include Welsh Language issues)
17. Good budget monitoring information assists managers in ensuring that available funds are target at those in greatest need.
18. Effective monitoring assists in the provision of accurate and timely information to officers and Members and in particular allows services to better manage their resources.
Policy Framework and Budget
19. Report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
20. The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.
Carolyn Michael (Senior Group Accountant) (01446 709778)
Director of Legal, Public Protection and Housing Services
Peter Evans, Director of Legal, Public Protection and Housing Services