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Agenda Item No. 6

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Housing and Public Protection): 15th January 2014

 

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 30th November 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 30th November 2013 regarding those revenue and capital budgets, which form this Committee’s remit.

Recommendation

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.

Background

2.         Cabinet on the 18th November 2013 (minute nos. C2076, C2074 and C2073 respectively) approved the amended Revenue, Capital and Housing Revenue Account Budgets for 2013/14.  Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options

Revenue

 

3.         The Revenue Budget and projected outturn for 2013/14 are shown in the table below.  It is currently projected that services under this Committee will underspend at year end by £150k.

Housing & Public Protection   

Revenue Budget

 

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Public Sector Housing (HRA)

8,129

8,129

0

General Fund Housing

 

1,150

1,000

150

Private Sector Housing/ Comm Safety

11,270

11,270

0

Public Protection

 

2,564

2,564

0

Youth Offending Service

 

653

653

0

TOTAL

 

23,766

23,616

150

 

4.         A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.

5.         Public Sector Housing (HRA) - The Housing Revenue Account is currently showing a favourable variance of £63k. The main reasons for the favourable variances are underspends on the Incentive to Move scheme budget (£40k) and staff vacancies (£23k).  Further resources will be required in the coming months to deal with Health and Safety issues, such as asbestos management, therefore, an outturn on target is projected.

6.         General Fund Housing - The Housing General Fund is currently showing a favourable variance of £191k.  The reason for this favourable variance is mainly due to the reduction in the number of homeless individuals requiring emergency accommodation due to a long term increased focus on prevention by the homeless team. This change of approach has been supported through an expansion of shared accommodation options within the private sector.  Again this success is to be welcomed, but it must be reiterated that the use of the private rented sector has significant risks, particularly as a result of the changes already introduced through Welfare Reform and the challenges posed by the Universal Credit. This could have an adverse effect on the availability of future private rental options if the Homeless client group is 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.  Due to the possible risks outlined above, it is projected that the budget will outturn at £150,000 underspent at year end.

7.         Other services are anticipated to outturn on target by year end. 

Capital

8.         Appendix 2 details financial progress on the Capital Programme as at 30th November 2013.

9.         Housing Improvement Plan - A number of virements have been requested to amend budgets to reflect the amounts shown in Appendix E to the Housing Business Plan which was approved by Cabinet on 2nd December 2013 (Minute C2113).

10.      Emergency Contingency Works - Virements have been requested to fund the following schemes; Llantwit Major Housing Lights £1k, Retaining Wall Laleston Close Gibbonsdown £12.5k from the Emergency Contingency Works budget.

11.      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.

12.      Appendix 3 provides non-financial information on capital construction schemes with a budget of over £100k.   Where a budget shown in Appendix 2 is more than £100k but is made up of several schemes that individually are less than £100k, the scheme is not included in Appendix 3.

Resource Implications (Financial and Employment)

13.      As detailed in the body of the report.

Sustainability and Climate Change Implications

14.      There are no direct implications arising from this report.

Legal Implications (to Include Human Rights Implications)

15.      There are no legal implications.

Crime and Disorder Implications

16.      There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

17.      There are no equal opportunity implications.

Corporate/Service Objectives

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.

Background Papers

None

Contact Officer

Carolyn Michael (Principal Accountant) (01446 709778)

Officers Consulted

Director of Development Services

Director of Visible Services and Housing

Responsible Officer:

Rob Thomas

Miles Punter

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