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Agenda Item No. 7

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Housing and Public Protection): 7th January 2015

 

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 30th November 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 30th November 2014 regarding those revenue and capital budgets, which form this Committee’s remit.

Recommendation

1.         That 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.         Cabinet on the 17th November 2014 (minute no C2533, C2534 and C2532 respectively) approved the amended Revenue, Capital and Housing Revenue Account 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

1,438

1,438

0

Private Sector Housing

11,091

11,091

0

Public Protection

2,489

2,489

0

Youth Offending Service

653

653

0

TOTAL

19,185

19,185

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 against profiled budget.  In addition, there are underspends on premises costs at Ty-Iolo Hostel and communal facilities at the sheltered complexes. However, at this stage, it is still anticipated that the HRA will outturn on target, a rationalisation of budgets is due to take place in the coming months to identify any surplus resources and target them where needed.  In addition, any savings will be used to fund the Housing Investment Programme which will reduce the reliance on Unsupported Borrowing.

6.         General Fund Housing - There is currently a £298k underspend against profiled budget due to the 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 will outturn at around £390k underspent.  As previously reported, due to the uncertain pressures for the remaining part of the financial year on the homeless budget it is still felt appropriate at this time to show a balanced budget.

7.         Private Sector Housing - There is currently a favourable variance to the profiled budget of £60k for this service, due mainly to the additional management fees received within the Disabled Facilities Grant Team. This is due to the faster throughput of capital disabled Facilities Grants completed to date this year. It is anticipated that these fees should now cover the costs of the additional Occupational Therapist employed by this service to assist with the grants throughput and a balanced budget is forecast by year-end

8.         Public Protection - There is currently a favourable variance of £50k to the profiled budget, due partly to lower than profiled expenditure on general supplies and services to date but also due to income receipts being ahead of profile. Higher than anticipated income has been received for Houses in Multiple Occupation (HMO) licences / Empty Homes receipts and Food Hygiene certificate appeals. Indeed, income levels within the Pest Control service which had previously been reported as low earlier in the year have recovered well and are now in fact ahead of profile

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 30th November 2014.

11.      Disabled Facilities Grants - Changes to processes in 2014/15 have led to an increased number of approvals.  As a result, this has led to a reduced backlog in adult requests and there is no longer a backlog for children's.  As the Council is aiming to reduce its waiting times in this area, it has been requested that the budget is increased by £200k this year, to be funded by a contribution from Capital Receipts.

12.      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.

13.      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

14.      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:-

15.      WHQS Works - There is always likely to be a variance in the 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 Non Traditional Properties. More has been spent than was projected on Central Heating works, Rewires, Asbestos Management, however,  the total budget is unaffected.

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

 

 

 

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