Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Housing and Public Protection) 14th March 2012
Report of the Director of Legal, Public Protection and Housing Services
Revenue and Capital Monitoring for the Period 1st April 2011 to 31st January 2012
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 31st January 2012 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 £228k mainly due to a recharge of £121k relating to backdated employee costs for those involved in the Housing Stock Transfer pre-ballot. Further favourable variances are £26k relating to employee vacancies, £140k for supplies and services, £51k for premises costs, external income of £36k and £7k for transport costs. These savings are partially offset by a current adverse variance of £132k for Housing repairs and £21k for Third Party payments.
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 £35k due to savings of £5k for third party accommodation payments (bed and breakfast), a favourable variance of £33k in housing benefits receipts and £22k for supplies and services. The underspend is partially offset by an adverse variance of £14k in respect of employees costs due to agency cover and £11k on external grants.
Capital Programme 2011/2012
6. Appendix 2 details financial progress on the Capital Programme as at 31st January 2012.
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. Housing Improvement Programme (HIP) - in order to pursue the achievement the Welsh Housing Quality Standard, Officer delegations have been exercised to approve the inclusion of three additional budgets within the current year's Housing Improvement Programme. The approvals relate to sewage treatment works at Marcross, Environmental Improvements to cover fencing works at Awbery House and Major Damp Alleviation works across the Council's housing stock. Further virements have been required due to a number of difficulties with the roofing contractors, works detailing and weather conditions, the number of roofs expected to be completed as part of this year's HIP plan is expected to be approximately half of what was originally programmed, resulting in a reduction in the anticipated spend of some £615k. After a number of meetings with contractors, a new programme has been agreed to counteract the under spend on the roofing works by switching budget and resources to windows, doors and door entry systems which have now been accelerated. It has been estimated that an additional £347k can be spent on replacement windows, doors and door entry systems this financial year by extending current contracts. There has been a budget reduction of £17k on sheltered scheme boilers as works have been completed below budget. There is a further £220k allocation on Council Housing Adaptations, where shower installations have been accelerated, as well as an additional £50k approved for central heating and boiler replacements. These budget virements have been approved by officer delegations. Appendix 2 has been updated to reflect these additional budgets, and reflect an overall reduction of £15k on the whole HIP budget.
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 scheme meets this criterion this month.
10. Housing Improvement Programme, Roof Renewals - as has been described earlier in this report, there have been delays encountered on all of our roof renewal contracts for various reasons. There is now no possibility of a full spend being achieved on this budget and so funding is to be transferred to the windows and doors budget instead, in order to maximise expenditure on this year's Housing Improvement Programme.
11. 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)
12. As detailed in the body of the report.
Legal Implications (to Include Human Rights Implications)
Crime and Disorder Implications
14. 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)
15. Good budget monitoring information assists managers in ensuring that available funds are target at those in greatest need.
16. 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
17. Report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
18. 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