Agenda Item No 4
The Vale of Glamorgan Council
Scrutiny Committee (Housing and Public Protection): 9th October 2013
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 31st August 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 31st August 2013 regarding those revenue and capital budgets, which form this Committee’s remit.
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.
2. Council on the 6th March 2013 (minute no 943, 942 and 941 respectively) approved the Revenue, Capital and Housing Revenue Accounts Budgets for 2013/14. Reports monitoring expenditure are brought to this Committee on a regular basis.
Relevant Issues and Options
3. The projected outturn for the 2013/14 Revenue Budget is shown in comparison with the Revenue Budget at Appendix 1.
4. Public Sector Housing (HRA) - The Housing Revenue Account is currently showing a favourable variance of £326k. There are adverse variances on income due to voids of £77k. Turnaround time for void properties is now on target and any further deviations from budget should be minimised. The adverse variance is offset by favourable variances on salaries of £141k due to vacancies in the housing teams, hostel and temporary accommodation running costs of £21k, sheltered accommodation £26k, public sector management £46k, legal fees of £14k, Incentive to Move schemes of £18k, Estate Management of £14k, Housing repairs £29k and other net costs £94k. Further resources will be required in the coming months to deal with Health and Safety issues such as asbestos management and fire safety risk assessments therefore an outturn on target is projected.
5. General Fund Housing - The Housing General Fund is currently showing a favourable variance of £225k. The reason for this favourable variance is a reduction in the number of homeless individuals requiring emergency accommodation due to a long term increased focus on prevention by the homeless team. As a result, unit costs have decreased dramatically and only one individual is currently in Bed and Breakfast accommodation. 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 are 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 on target at year end.
6. Other services are anticipated to outturn on target by year end.
7. Appendix 2 details financial progress on the Capital Programme as at 31st August 2013.
8. 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.
9. 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
10. 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 schemes meet this criteria:-
11. WHQS Works - As outlined in the previous report to Committee, there is always likely to be a variance in the WHQS expenditure as the extent of works required in a property is not known until the works commence. During August, works on central heating/boilers and roofing works were behind profile whilst asbestos management costs have exceeded the initial profile.
12. Disabled Facility Grants - Grant expenditure is behind profile because of a higher than usual drop out rate from applicants, thereby reducing the level of approvals. Currently there is a predicted shortfall of £200k on the annual budget. An update on this position will be brought to Committee in the coming months.
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.
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.
Carolyn Michael (Senior Group Accountant) (01446 709778)
Director of Development Services
Director of Visible Services and Housing