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Agenda Item No. 6

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Housing and Public Protection): 8th October 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 to 31st August 2014

 

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 to 31st August 2014 regarding those revenue and capital budgets, which form this Committee’s remit.

Recommendation

It is recommended that :

 

1.         The position with regard to the 2014/15 Revenue and Capital Budgets are noted.

Reason for the Recommendation

1.         That Scrutiny Committee note the position with regard to the 2014/15 revenue and capital monitoring.

Background

2.         Council on the 5th March 2014 (minute no 884, 883 and 882 respectively) approved the Revenue, Capital  and Housing Revenue Budgets for 2014/15.  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 2014/15 are shown in the table below.  The current forecast is for a balanced budget.

 

Housing & Public Protection   

Revenue Budget

 

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Public Sector Housing (HRA)

3,514

3,514

0

General Fund Housing

 

1,066

1,066

0

Private Sector Housing/Comm Safety

11,344

11,344

0

Public Protection

 

2,631

2,631

0

Youth Offending Service

 

664

664

0

TOTAL

 

19,219

19,219

0

 

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 proposed restructure for Housing Services, has yet to be implemented and as a result, there is an underspend on profiled budget.  In addition, there are underspends on premises costs at Ty-Iolo Hostel and community facilities at the sheltered complexes. However at this stage, it is still anticipated that the HRA will outturn on target, as a rationalisation of budgets is due to take place in the coming months to identify any surplus resources and target them where expenditure is needed.

6.         General Fund Housing - As previously reported, there is a variance due to savings being made on the use of Temporary Accommodation for the homeless. If the current trend continues, it is anticipated that the General Fund Housing budget could outturn at around £250,000 underspent at year end.  This is not yet shown in the above table as it still remains early in the financial year, however, Committee will be updated on any further change to this position as the year progresses.

7.         Private Sector Housing/Comm Safety - There is currently an adverse variance to profiled budget. This is due mainly to the additional Occupational Therapist temporarily employed to assist with the throughput of Renovation Grant applications. It is projected that there will be sufficient under spend within the division at year-end to cover this cost.

8.         Public Protection - There is currently an adverse variance of £23k to the profiled budget, due in part to lower than anticipated income within the pest control team to date. The situation is being monitored and it is anticipated that income levels will recover by year end.

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

Capital

10.      Appendix 2 details financial progress on the Capital Programme as at 31st August  2014.

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.

Variance between Actual Spend to date and Profiled Spend

13.      Cabinet have previously agreed that further information would be provided where schemes have a value of over £500l and show a variance of 20% or more between actual spend and the profile. The following schemes meet this criteria:-

14.      Disabled Facilities Grants - The profiled budget has been based on historical patterns of spend, however, changes to processes within the service in 2014/15 has led to a more consistent pattern of approvals and spend throughout the financial year. This has resulted in expenditure being ahead of profile.  This budget will be monitored closely to ensure that overall expenditure remains within the available funding at year end.

15.      WHQS Works - There is always the possibility that there will be a variance to profiled budget for WHQS expenditure, as the extent of the works required in a property is not known until the works commence. Less has been spent than was projected for rewire schemes, kitchen replacements and bathroom works while more has been spent than was projected for central heating works. The allocation of the WHQS budget will be reviewed as part of the forthcoming Housing Business Plan update.

Resource Implications (Financial and Employment)

16.      As detailed in the body of the report.

Sustainability and Climate Change Implications

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

Legal Implications (to Include Human Rights Implications)

18.      There are no legal implications.

Crime and Disorder Implications

19.      There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

20.      There are no equal opportunity implications.

Corporate/Service Objectives

21.      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

22.      Report is in accordance with the Policy Framework and Budget.

Consultation (including Ward Member Consultation)

23.      The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.

Background Papers

None

 

Contact Officer

Carolyn Michael (Operational Manager - Accountancy) (01446 709778)

 

Officers Consulted

Director of Development Services

Director of Visible Services and Housing

 

Responsible Officer:

Rob Thomas

Miles Punter