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Agenda Item No 8

The Vale of Glamorgan Council

 

Scrutiny Committee (Housing and Public Protection): 9th  March 2016

 

Report of the Director of Environment and Housing

 

Revenue and Capital Monitoring for the Period 1st April 2015 to 31st January 2016

 

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 2015 to 31st January 2016 regarding those revenue and capital budgets, which form this Committee's remit.

Recommendation

It is recommended that :

  1. The position with regard to the 2015/16 Revenue and Capital Budgets are noted.

Reason for the Recommendation

  1. That Scrutiny Committee note the position with regard to the 2015/16 revenue and capital monitoring.

Background

  1. On 16th November 2015, Cabinet approved the Amended Revenue, Capital and Housing Revenue Account Budgets for 2015/16 (minute no C2975, C2974 and C2976 respectively). Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options

Revenue

  1. The Revenue Budget and projected outturn for 2015/16 are shown in the table below. The current forecast is for a balanced budget.

Housing & Public Protection               

Amended Revenue Budget

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Public Sector Housing (HRA)

1,265

1,265

0

Council Fund Housing

1,116

1,116

0

Private Sector Housing

11,308

11,308

0

Regulatory

2,107

2,107

0

Youth Offending Service

679

679

0

TOTAL

16,475

16,475

0

       

  

  1. A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.
  2. Public Sector Housing (HRA) - The HRA is expected to outturn on target. Any underspends in year will be offset by additional contributions to Capital Expenditure to reduce the reliance on Unsupported Borrowing.
  3. Council Fund Housing - The Council Fund Housing budget is likely to outturn at £250k underspent based on current trends. As previously reported, the variance is due to savings being made on the use of temporary accommodation for the homeless. 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.
  4. Private Housing - As Members have previously been advised, the fee income on Disabled Facilities Grants (DFG's) is higher than originally anticipated due to the high number of applications received during this year. Income on the Renewal Area however, is continuing to lag behind profile, off-setting the favourable variance on DFG's. It is anticipated that the Renewal Area fees position will improve by year-end so this service is expected to outturn on target.
  5. Regulatory Services - The new Shared Service for Bridgend, Cardiff and the Vale of Glamorgan became operational on May 1st and the remaining few staff vacancies within the new structure have been advertised and should be filled shortly. Much work is now needed by the new management team to rationalise current working practices, with the emphasis on agile working across the 3 Authorities. It is anticipated that this budget will outturn on target at year-end.
  6. Other services are anticipated to outturn on target by year end.

Capital

  1. Appendix 2 details financial progress on the Capital Programme as at 31st January 2016.
  2. Housing Improvement Programme - Common Parts and WHQS Environmental Improvement schemes are anticipated to underspend by £1m and £200k respectively, due to a shortage of staff resources which have resulted in the schemes being delayed. It will therefore be requested to carry forward the above amount into the 2016/17 Capital Programme.
  3. Castleland Renewal Area/Penarth Renewal Area - Following the tender process in the Castleland Renewal Area, the cost of works have come in lower than the estimate, resulting in £210k of uncommitted budget.  It will be requested to vire £85k of this saving to the Penarth Renewal Area to cover the cost of additional works required to roofs.  It will also be requested to carry forward the remaining balance of £125k into the 2016/17 Capital Programme in order for works to continue in the renewal area in the next financial year.
  4. Appendix 3 provides non-financial information on capital construction schemes.
  5. 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.

Resource Implications (Financial and Employment)

  1. As detailed in the body of the report.

Sustainability and Climate Change Implications

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

Legal Implications (to Include Human Rights Implications)

  1. There are no legal implications.

Crime and Disorder Implications

  1. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

  1. There are no equal opportunity implications.

Corporate/Service Objectives

  1. 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

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

Consultation (including Ward Member Consultation)

  1. 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 Environment and Housing

Responsible Officer:

Miles Punter

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