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Agenda Item No

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Housing and Public Protection): 4th February 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 31st December 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 December 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.         Cabinet on the 17th November 2014 (minute nos. 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 HRA budgets have been amended to allow for any in year underspends to be utilised on fire risk assessments and resulting remedial works within the Council's blocks of flats and resurfacing of highways on Housing land.  To allow effective management of the budget, £251k for highway resurfacing on Housing land has been moved to the capital Housing Improvement Programme, via Capital Expenditure from Revenue Account (CERA) and £300k for Fire Risk Assessments and associated works has been vired to the Housing Repairs budget to form part of the planned maintenance programme.  In addition there has been a transfer of £54k from the Housing Repairs Budget to the Housing Improvement Programme via CERA to allow completion of WHQS elements at Redlands House.  Any further underspends will be used to fund the Housing Investment Programme and thereby reduce the requirement for Prudential Borrowing in 2014/15.

6.         General Fund Housing - There is currently a £346k 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.  Due to uncertain pressures going forward, it is proposed that any underspend at year end be set aside to fund homelessness issues in future years.

7.         Private Sector Housing - There is currently a favourable variance to the profiled budget of £18k for this service. There has been additional income from management fees for Disabled Facilities Grants (DFGs) due to additional capital works being completed this year.  This is offset by lower than anticipated income from the Renewal Area, as the works in the Upper Holton Road Commercial Area require a contribution from property owners which has had an effect on the take-up of the works. Though the situation is improving and works are about to start on site, there could be a lower than budgeted fee income for the Renewal Area team. It is however expected that the service will still outturn on target by year-end.

8.         Public Protection - There is currently a favourable variance of £13k to the profiled budget. Income for the division is still ahead of profile, as has previously been advised. The rate has slowed during December however, it is still anticipated that the service will outturn on target by year-end.   Members are reminded that the Emergency Planning section has been transferred to Visible Services & Housing, as of 1st November 2014.

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

10.      Attached at Appendix 2 of the report is a statement showing the progress made to date against the 2014/15 savings targets.  The major of savings will be achieved this year while those not achieved will be covered by underspends elsewhere within the Directorates.

Capital

11.      Appendix 3 details financial progress on the Capital Programme as at 31st December 2014.

12.      Penarth Renewal Area - Due to additional take up by residents in the Upper Holton Road Residential scheme, it is requested to vire £66k from Penarth Renewal Area to Castleland Renewal Area.  The amended budgets in 2014/15 for Castleland Renewal Area will be £723k and £50k for Penarth Renewal Area.

13.      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.

14.      Appendix 4 provides non-financial information on capital construction schemes with a budget of over £100k.   Where a budget shown in Appendix 3 is more than £100k but is made up of several schemes that individually are less than £100k, the scheme is not included in Appendix 4.

Variance between Actual Spend to date and Profiled Spend

15.      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:-

16.      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. More has been spent than was projected on Kitchen Replacements, Bathrooms and Asbestos Management.

Resource Implications (Financial and Employment)

17.      As detailed in the body of the report.

Sustainability and Climate Change Implications

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

Legal Implications (to Include Human Rights Implications)

19.      There are no legal implications.

Crime and Disorder Implications

20.      There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

21.      There are no equal opportunity implications.

Corporate/Service Objectives

22.      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

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

Consultation (including Ward Member Consultation)

24.      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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