2. HRA Financial Report - Period 08 2024-25 - Report
Renfrewshire Council · 14 January 2025
Back to Communities and Housing Policy Board — 14 January 2025 and its agenda
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___________________________________________________________________ To: Communities and Housing Policy Board On: 14 January 2025 ___________________________________________________________________ Report by: Director of Finance and Resources & Director of Environment, Housing and Infrastructure ___________________________________________________________________ Heading: General Services Revenue, Housing Revenue Account (HRA) and Capital Budget Monitoring as at 8 November 2024 ___________________________________________________________________ 1. Summary 1.1 At the close of reporting Period 8 on 8 November 2024, the projected revenue outturn at 31 March 2025 for those services reporting to the Communities and Housing Policy Board, including the Housing Revenue Account, is break-even against the revised budget for the year in General Services and a break-even position in the HRA. 1.2 The projected capital outturn at 31 March 2025 for projects reporting to the Communities and Housing Policy Board, is a break-even position. 1.3 This is summarised over the relevant services in the table below and further analysis is provided in the report and appendices. Revised Annual Budget £000 Projected Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Revenue Housing Revenue Account (HRA) 0 0 0 0.0% Housing – General Services (Non-HRA) 4,904 4,904 0 0.0% Communities and Public Protection 5,882 5,882 0 0.0% Criminal Justice 4,092 4,092 0 0.0% Total 14,878 14,878 0 0.0%
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Revised Annual Budget £000 Projected Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Capital Housing Revenue Account (HRA) 30,862 30,862 0 0.0% Other Housing PSHG 1,186 1,186 0 0.0% Total 32,048 32,048 0 0.0% 2. Recommendations 2.1 Members are requested to: a) Note the projected Revenue outturn break-even position. b) Note the projected Capital outturn break-even position. c) Note the drawdown from General Fund earmarked reserves totalling £0.255m as noted in section 5.1 and 5.4. d) Note the drawdown from HRA reserves of £0.518m as noted in section 5.9. e) Agree to homologate the budget adjustments detailed at section 7.2. 3. Revenue Budget Projection – break-even by 31 March 2025 3.1 The tables in Appendix 1 present the projected year-end position for all services reporting to this board, by both subjective analysis (what the budget is spent on) and objective analysis (which division is spending the budget). Significant variances affecting the projected position are analysed further below. 3.2 It should be noted that the projected outturn position reported here is based on the latest information available, which is subject to change during the financial year. The impact of any change on this projection will be updated at each board cycle until the close of reporting period 10. Budget holders are obliged to seek mitigating action to minimise significant budget variances. 4. Objective Analysis – Significant Variances 4.1 Housing Revenue Account (HRA) - break-even by 31 March 2025 The HRA is projected to break-even overall in 2024/25. Demand for repairs to HRA premises, including void properties, is still currently expected to be managed within the revised budget levels.
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4.2 Housing – General Services (Non-HRA) – break-even by 31 March 2025 The projected outturn for Homelessness within Housing – General Services (Non-HRA), continues to be a challenge over the remainder of the financial year. Demand on services is currently being managed within existing resources, including additional staffing, being supported through migration and asylum funding streams allocated to the Council by the UK and Scottish Government. The potential increase in homeless presentations linked to the asylum population in Renfrewshire and more widely across the West of Scotland, continues to create additional, potentially long-term, financial pressures for Council services. Projections of these pressures will continue to be reviewed and reported to future Communities and Housing Policy Boards as required. 4.3 Communities and Public Protection - break-even by 31 March 2025 Employee costs are projected to underspend due to vacancies within the service, this area is under review by management. The underspend has been allocated against spend across other budget lines and overall, the service is projected to break-even at year end. 5. Subjective Analysis – Significant Variances GENERAL SERVICES (excluding HRA) 5.1 Employee costs - £0.334m underspend by 31 March 2025 This is a combination of underspends across services, for example, in Public Protection underspends are due to vacancies, which are currently under review. Underspends in Criminal Justice and Homelessness are offset by minor overspends across their service areas. Please note that a drawdown of £0.205m from the Moving-On Fund for Ukrainian Refugees, held within General Fund earmarked reserves, is now included in the Revised Annual Budget. 5.2 Transport Related – (£0.050m) overspend by 31 March 2025 Overspends in Public Protection, Criminal Justice and Homelessness are offset by minor underspends across their service areas. 5.3 Supplies and Services - (£0.118m) overspend by 31 March 2025 This includes (£0.070m) for prior year water sampling costs within the Public Protection Service, funded by underspends in employee costs as noted above. Furniture costs within the Homelessness Service are projected to overspend, which is consistent with the overall demand on Homelessness services.
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5.4 Transfer Payments – (£0.113m) overspend by 31 March 2025 Underspends in revenue costs within the Private Sector Housing Grant programme has led to a reduction in the projected drawdown from Reserves. Overspends in Public Protection and Criminal Justice are offset by underspends within employee costs, as reported above. Please note that a drawdown of £0.050m from the Environment and Place programme for Team Up To Clean Up is now included in the Revised Annual Budget. HOUSING REVENUE ACCOUNT (HRA) 5.5 Premises Related costs – (£0.026m) overspend by 31 March 2025 The level of demand for Repairs and Maintenance of HRA Properties remains high, especially within Void properties. In-year temporary budget transfers from areas of underspend have been realigned to manage this within the overall service. Additional focus will continue on this area to understand ongoing demand levels. All premises related costs, including utilities and estate management, are subject to fluctuations, and will continue to be closely monitored throughout the year. 5.6 Transfer Payments – £0.006m underspend by 31 March 2025 The previously approved Housing Systems Replacement Project is being progressed and an estimated £0.518m is required from the HRA reserves held to deliver this project. The projected costs and reserve drawdown is reflected within the overall budget, which is for noting by the Board. The projected outturn reflects the forecasted spend in 2024/25. 6. Revenue Budget Virements 6.1. Under the Council’s financial regulations, Directors, and their nominated officers, in consultation with the Director of Finance and Resources, have certain delegated authority to transfer sums between subjective budget headings within a service division to enable budget management throughout the financial year. This is known as ‘budget virement’. 6.2. Transfers between divisions of the same service / department in excess of £100,000, and transfers between services / departments must be authorised by the respective service Director and the Director of Finance and Resources for submission to the relevant policy board for approval. 6.3. No such virements are proposed this period.
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7. Capital Budget Projection – break-even position by 31 March 2025 7.1 The Non-Housing Capital Investment Programme 2024/25 to 2028/29 was approved by the Council on 29 February 2024. For Communities and Housing Service the revised capital spend for 2024/25 is £32.048m. 7.2 The in-year Capital budget is forecast to break-even by 31 March 2025, following a budget adjustment between years that has taken place to reflect revised programming of some capital projects. Details of the adjustment, which amounts to £0.753m, are as follows: Capital Budget Adjustments Project Amount (£m) Reason Improvements to Existing Properties 0.781 Net acceleration from 2025/26 to reflect start time of projects related to External Improvements. Regeneration (1.545) Deceleration to 2025/26 to reflect anticipated cashflows for various projects, including Broomlands and Waverley, and budget transfer to Council House New Build. Other Assets 0.840 Acceleration from 2025/26 to reflect timing of various projects, including rot work. Council House New Build 0.017 Budget transfer from Regeneration for Bishopton New Build. Private Sector Housing Grant 0.660 Budget increase from revenue for disabled adaptations and care and support. Total 0.753
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Implications of the Report 1. Financial The projected budget outturn position for the Communities and Housing Revenue budget is break-even at 31 March 2025. Income and expenditure will continue to be monitored closely for the rest of the financial year and as far as possible, steps will be taken to mitigate any overspend. The projected outturn position for Communities and Housing Services Capital budget is break-even, after the adjustments outlined in section 7. 2. HR & Organisational Development While staffing budgets form a significant proportion of the Council’s revenue budgets, there are no direct implications arising from the recommendations in this report. 3. Community/Council Planning Community Plan Our Renfrewshire is thriving The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Our Renfrewshire is well Our Renfrewshire is fair Our Renfrewshire is safe Council Plan Reshaping our place, our economy and our future The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Building strong, safe and resilient communities Tackling inequality, ensuring opportunities for all Creating a sustainable Renfrewshire for all to enjoy Ongoing revenue and capital budget monitoring is a tool to enable good financial management so that the Council has resources now and in the future for continued service delivery. Working together to improve outcomes 4. Legal There are no direct implications arising from the recommendations in this report. 5. Property/Assets The capital expenditure noted in this report will result in lifecycle maintenance improvements to existing properties and replacement of ICT assets and infrastructure.
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6. Information Technology ICT assets and revenue costs are included within these reported budgets, and the costs associated with the replacement of the Housing Management system will have both an ongoing revenue and capital budget impact. 7. Equality & Human Rights While new areas of spend may impact on particular groups, any such impact would be assessed prior to the spend being incurred, therefore there are no direct implications arising from the recommendations in this report. 8. Health & Safety The capital expenditure noted in this report will result in lifecycle maintenance improvements to existing properties and replacement of ICT assets, which may in some cases rectify health and safety issues. 9. Procurement While Procurement is an important consideration prior to the Council incurring any revenue or capital spend, there are no direct implications arising from the recommendations in this report. 10. Risk The potential financial risk that the Council will overspend its approved revenue budgets for the year is managed at a Council-wide level by the Chief Executive and Directors. 11. Privacy Impact There are no direct implications arising from the recommendations in this report. 12. Cosla Policy Position N/a 13. Children’s Rights There are no direct implications arising from the recommendations in this report. 14. Climate Change The Council aims to reduce its carbon and other emissions to net zero by 2030, however there are no direct implications arising from the recommendations in this report.
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List of Background Papers Housing Revenue Account Budget & Rent Levels 2024/25 and Housing Capital Investment Plan 2024/25 to 2028/29, Council 29 February 2024. Non-housing Capital Investment Programme, prudential Framework and Treasury Management Strategy, and Capital Strategy 2024/25 – 2028/29, Council 29 February 2024. Author: John Kilpatrick, Finance Business Partner; Geoff Borland, Finance Manager.
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RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 8 November 2024 POLICY BOARD: COMMUNITIES AND HOUSING ‐ All SERVICES Objective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Housing Revenue Account (HRA) 0 0 0 0 0 0.0% 0 0 Housing ‐ General Services (Non‐HRA) 4,626 278 4,904 4,904 0 0.0% 0 0 Communities and Public Protection (including Regulatory Services) 5,832 50 5,882 5,882 0 0.0% 0 0 Criminal Justice 4,171 (79) 4,092 4,092 0 0.0% 0 0 NET EXPENDITURE 14,629 249 14,878 14,878 0 0.0% 0 0
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RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 8 November 2024 POLICY BOARD: COMMUNITIES AND HOUSING ‐ GENERAL SERVICES (excluding HRA) Subjective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 11,731 830 12,561 12,227 334 2.7% 209 125 Premises Related 2,431 (33) 2,398 2,419 (21) (0.9%) (14) (7) Transport Related 187 10 197 247 (50) (25.2%) (21) (29) Supplies and Services 5,682 411 6,093 6,211 (118) (1.9%) (198) 80 Third Party Payments 87 25 112 155 (43) (38.6%) 13 (56) Transfer Payments 2,673 126 2,799 2,912 (113) (4.0%) 60 (172) Support Services 54 (1) 53 51 2 3.1% 5 (3) Depreciation and Impairment Losses (23) 0 (23) (11) (12) (52.2%) (12) 0 GROSS EXPENDITURE 22,822 1,369 24,191 24,213 (22) (0.1%) 42 (64) Income (8,193) (1,120) (9,313) (9,335) 22 0.2% (42) 64 NET EXPENDITURE 14,629 249 14,878 14,878 (0) 0.0% (0) 0
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RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 8 November 2024 POLICY BOARD: COMMUNITIES, HOUSING AND PLANNING SERVICES ‐ Housing Revenue Account (HRA) Only Subjective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 11,561 (268) 11,293 11,284 9 0.1% 155 (146) Premises Related 24,350 760 25,110 25,136 (26) (0.1%) 32 (58) Transport Related 53 0 53 63 (10) (18.9%) (10) 0 Supplies and Services 908 (140) 768 781 (13) (1.7%) 43 (56) Third Party Payments 0 0 0 0 0 0.0% 0 0 Transfer Payments 5,517 (514) 5,003 4,997 6 0.1% (101) 107 Support Services 3,322 0 3,322 3,310 12 0.4% 8 4 Depreciation and Impairment Losses 17,909 518 18,427 18,427 0 0.0% 0 0 GROSS EXPENDITURE 63,620 356 63,976 63,998 (22) 0.0% 127 (149) Income (63,620) (356) (63,976) (63,998) 22 0.0% (127) 149 NET EXPENDITURE 0 0 0 0 0 0.0% 0 0
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Prior Years Approved Budget Revised Projected Total Approved Projected Expenditure Budget Adjustments Budget Outturn Budget Outurn to 31/03/2024 2024‐25 since previous 2024‐25 2024‐25 to 31‐Mar‐29 to 31‐Mar‐29 Project Title Board report £000 £000 £000 £000 £000 £000 £000 HOUSING(HRA) Improvements To Existing Properties 0 15,757 781 16,538 16,538 0 0% 111,757 111,757 0 0% Regeneration 10,743 9,227 (1,545) 7,682 7,682 0 0% 7,587 7,587 0 0% Other Assets 0 2,425 840 3,265 3,265 0 0% 4,550 4,550 0 0% Non Property Expenditure 0 900 0 900 900 0 0% 10,860 10,860 0 0% Council House New Build 42,665 610 17 627 627 0 0% 74,690 74,690 0 0% Professional Fees 0 1,850 0 1,850 1,850 0 0% 9,700 9,700 0 0% Total Housing (HRA) Programme 53,408 30,769 93 30,862 30,862 0 0% 219,144 219,144 0 0% HOUSING(PSHG) Private Sector Housing Grant Programme 0 526 660 1,186 1,186 0 0% 2,926 2,926 0 0% Total Housing (PSHG) Programme 0 526 660 1,186 1,186 0 0% 2,926 2,926 0 0% TOTAL COMMUNITIES, HOUSING & PLANNING BOARD 53,408 31,295 753 32,048 32,048 0 0% 222,070 222,070 0 0% *Rolling programmes have a prior year year expenditure of £0 as the expenditure is not directly linked from one year to the next as a singular project. Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY 1st April to 8th November 2024 POLICY BOARD: COMMUNITES & HOUSING Current Year 2024‐25 Full Programme ‐ All years