Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Housing and Public Protection): 4th September 2013
Joint Report of the Director of Development Services and the Director of Visible Services and Housing
Revenue and Capital Monitoring for the Period 1st April 2013 to 31st July 2013
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 2013 to 31st July 2013 regarding those revenue and capital budgets, which form this Committee’s remit.
It is recommended that :
1. The position with regard to the 2013/14 Revenue and Capital Budgets are noted.
Reason for the Recommendation
1. That Scrutiny Committee note the position with regard to the 2013/14 revenue and capital monitoring.
2. Council on the 6th March 2013 (minute nos. 943, 942 and 941 respectively) approved the Revenue, Capital and Housing Revenue Accounts Budgets for 2013/14. Reports monitoring expenditure are brought to this Committee on a regular basis.
Relevant Issues and Options
3. The projected outturn for the 2013/14 Revenue Budget is shown in comparison with the Revenue Budget at Appendix 1.
4. Public Sector Housing (HRA) - The Housing Revenue Account is currently showing a favourable variance of £218k. There are adverse variances on both income due to voids of £68k and Housing Repairs of £28k. These adverse variances are offset by favourable variance on salaries of £116k due to vacancies in the housing teams, hostel and temporary accommodation running costs of £28k, sheltered accommodation £26k, public sector management £40k, legal fees of £21k, Incentive to Move schemes of £13k, Estate Management of £10k and other net costs £60k. Further works are anticipated to be undertaken between now and the end of the financial year, therefore an outturn on target is projected.
5. General Fund Housing - The Housing General Fund is currently showing a favourable variance of £181k, which could increase to £300k by the end of the financial year if the current situation is maintained. The reason for this favourable variance is a reduction in the number of homeless individuals requiring emergency accommodation due to a long term increased focus on prevention by the homeless team. As a result, unit costs have decreased dramatically and only two individuals are currently in B&B accommodation. This change of approach has been supported through an expansion of shared accommodation options within the private sector. However whilst this success is to be welcomed, it is still relatively early in the financial year and the use of the private rented sector has significant risks, particularly as a result of the changes already introduced through Welfare Reform and more significantly the challenges posed by the Universal Credit (payment of Housing / Welfare Benefits to the tenant rather than direct to the landlord). This could have an adverse effect on the availability of future private rental options if the Homeless client group are considered by Landlords to be a risk to guaranteed income or increased homelessness if landlords choose to only let to those in employment. The Council has identified Welfare Reform as a significant risk and mitigation measures are already in place. Officers will continue to closely monitor the situation to keep any adverse effect to a minimum.
6. Other services are anticipated to outturn on target by year end.
7. Appendix 2 details financial progress on the Capital Programme as at 31st July 2013.
8. For all schemes where it is evident that the full year's budget will not be spent during the year, the relevant officers are required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.
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 £500k and show a variance of 20% or more between actual spend and the profile. The following scheme meets this criteria:-
10. Welsh Housing Quality Standard - The initial planned profiled expenditure on WHQS schemes was based upon an average of anticipated required defined works per property. The actual level of expenditure is determined via the validation surveys (six weeks prior to actual works). Clearly, because of this, variances against this profile could be encountered each month.
11. Appendix 3 provides non-financial information on all capital construction schemes
Resource Implications (Financial and Employment)
12. As detailed in the body of the report.
Sustainability and Climate Change Implications
13. There are no direct implications arising from this report.
Legal Implications (to Include Human Rights Implications)
14. There are no legal implications.
Crime and Disorder Implications
15. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
16. There are no equal opportunity implications.
17. 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
18. Report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
19. The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.
Carolyn Michael (Senior Group Accountant) (01446 709778)
Director of Development Services
Director of Visible Services and Housing
Operational Manager - Legal Services