CHAPS Policy Board Period 03 2022-23
Renfrewshire Council · 16 August 2022
Back to Communities and Housing Policy Board — 16 August 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
0 To: Communities and Housing Policy Board On: 16 August 2022 Report by: Director of Finance and Resources Heading: General Services Revenue, Housing Account and Capital Budget Monitoring as at 24 June 2022 1. Summary of Financial Position 1.1. The projected outturn at 31 March 2023 for all services (including the housing revenue account) reporting to the Communities, Housing and Planning Policy Board is an overspend position of £0.138m (1.1%) against the revised budget for the year. This can be further analysed as a projected overspend in general services activities of £0.138m and a break even position in the HRA. 1.2. The projected capital outturn at 31 March 2023 for projects reported to the Communities, Housing and Planning Policy Board is a breakeven position of £28.087m against the revised budget for the year. 1.3. This is summarised over the relevant services in the table below and further analysis is provided in the Appendices.
Page 2
1 Table 1: Revenue Division / Department Revised Annual Budget £000 Projected Outturn Core £000 Total Projected Outturn £000 Budget Variance £000 Budget Variance % Housing Revenue Account (HRA) £0 £0 £0 £0 0% Communities & Housing Directorate £11 £11 £11 £0 0% Housing - General Services (Not HRA) £4,941 £4,941 £4,941 £0 0% Communities and Public Protection (excluding Regulatory Services) £3,766 £3,766 £3,766 £0 0% Economy & Development (£189) (£51) (£51) (£138) (73.0%) Criminal Justice £3,713 £3,713 £3,713 £0 0% Table 2: Capital Division / Department Revised Annual Budget £000 Projected Outturn £000 Budget Variance £000 Budget Variance % Housing Revenue Account (HRA) £26,795 £26,795 £0 0% Other Housing PSHG £1,292 £1,292 £0 0% 2. Recommendations Members are requested to: 2.1. Note the projected HRA and Revenue outturn position detailed in Table 1 above; 2.2. Note the projected Capital outturn position detailed in Table 2 above; and 2.3. Note the budget adjustments detailed at sections 4 and 6. 3. Revenue 3.1. The Revenue Budget Monitoring report at Appendix 1 identifies a projected overspend of £0.138 million (1.1% of total budget) for all services reporting to this Policy Board. Detailed division service reports can be also be found here, along with an explanation of each significant projected variance. 3.2. The projected outturn is based on information currently available, and assumptions made by service budget holders. Any changes to these projections will be detailed in future reports to the Board.
Page 3
2 3.3. The main reason for the projected outturn positions are indicated below the tables showing both the subjective analysis (what the budget is spent on) and the objective analysis (which division is spending the budget). 3.4. The projected overspend of £0.138 million, includes an estimated under- recovery in planning fees of £0.080 million. This represents c. 10% of targeted income and reflects a reasonable estimate of income in the current economic and financial climate. 4. Revenue Budget Adjustments 4.1. Members are requested to note from Appendix 1 that budget adjustments totalling £0.934m have been processed since the previous finance report to board. These relate wholly to: • £0.009m – Adult Social Care pay uplift • £0.240m – Council motion for fly-tipping enforcement • £0.060m – Duke of Edinburgh Scottish Attainment Funding • (£0.004m) – Right For Renfrewshire Savings • £0.660m – Additional funding for Criminal Justice outwith settlement • (£0.031m) – Planning Services service budget realignment 5. Communities and Housing Services Capital 5.1. The Capital Investment Programme 2022/23 to 2026/27 was approved by the Council on 3rd March 2022. For Communities and Housing Services the approved capital spend for 2022/23 is £28.087m. 5.2. The Capital Monitoring report at Appendix 2 indicates net budget adjustments in the approved capital programme for Communities, Housing and Planning Services for the year of (£2.954m) largely within HRA to reflect revised cash flows following contract awards. 5.3. Further detail, including reasons for significant variances (where applicable), can be found at Appendix 2.
Page 4
3 6. Capital Budget Adjustments 6.1. Since the last report, budget changes totalling (£2.954m) have arisen which reflect the following: Budget Carried Forward to 2023-24 from 2022-23 (£2.800m): • HRA o Improvements to Existing Properties (£2.800m) for updated cash flows following award of contracts for improvement to existing properties and heating upgrades; Budget Reduced (£0.400m) in 2022-23 to reflect revised estimated costs after award of contracts were lower than estimated costs: • HRA o Improvements to Existing Properties (£0.150m) for lift refurbishments; o Regeneration (£0.250m) for demolitions at Tannahill. Budget brought forward from 2021-22 to 2022-23 (£0.246m): • PSHG o To reflect cash flow timings of payments (£0.246m). ___________________________________________________________________ Implications of this report 1. Financial – The projected budget outturn position for Communities, Housing and Planning Services Revenue budget is an overspend of £0.138m (1.1% of total budget). All Income and expenditure, in all services within the department will continue to be monitored closely for the rest of the financial year and, where necessary, steps will be taken to mitigate any overspend. The projected outturn position for Communities, Housing and Planning Services’ Capital budget is breakeven. The Capital programme will continue to be monitored closely for the rest of the financial year and, where necessary, steps will be taken to mitigate any overspend.
Page 5
4 Any changes to current projections in either Revenue or Capital budgets will be reported to the board as early as possible, along with an explanation for the movement. 2. HR and Organisational Development None directly arising from this report. 3. Community/Council Planning None directly arising from this report. 4. Legal None directly arising from this report. 5. Property/Assets Capital projects will result in new build Council housing stock and improvements to existing stock. 6. Information Technology None directly arising from this report. 7. Equality and Human Rights The recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report because for example it is for noting only. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health and Safety None directly arising from this report. 9. Procurement None directly arising from this report. 10. Risk The potential risk that the Council will overspend its approved budgets for the year will be managed at a Council-wide level by the Chief Executive and Directors. 11. Privacy Impact None directly arising from this report. 12. 13. Cosla Policy Position N/a. Climate Risk None directly arising from this report. __________________________________________________________________
Page 6
5 List of Background Papers Housing Revenue Account Budget & Rent Levels 2022/23 and Housing Capital Investment Plan 2022/23 to 2023/24; Non-housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2022/23 – 26/27. ___________________________________________________________________ Author: Kevin Festorazzi - Principal Accountant Ext 4885 John Kilpatrick– Finance Business Partner Ext 6132
Page 7
Appendix 1 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Core Business Total Projected Outturn £000 £000 £000 £000 £000 £000 % Housing Revenue Account (HRA) 0 0 0 0 0 0 0.0% Communities and Housing Directorate 11 0 11 11 11 0 0.0% Housing - General Services (Not HRA) 4,932 9 4,941 4,941 4,941 0 0.0% Communities and Public Protection (excluding Regulatory Services) 3,470 296 3,766 3,766 3,766 0 0.0% Building Standards (158) (31) (189) (51) (51) (138) (73.0%) Criminal Justice 3,053 660 3,713 3,713 3,713 0 0.0% NET EXPENDITURE 11,308 934 12,242 12,380 12,380 (138) (1.1%) Objective Heading Housing Revenue Account (HRA) Communities and Housing Directorate Housing - General Services (Not HRA) Communities and Public Protection (excluding Regulatory Services) Building Standards Criminal Justice POLICY BOARD : COMMUNITIES AND HOUSING - All SERVICES Overall the HRA is projecting a break even position at the year end. Employee costs are projected to underspend due to the ongoing recruitment to vacancies within the service. The resultant underspend is currently forecast to allow for an increase in debt repayments at the year end in line with the councils financial strategy of debt smoothing. Repairs and Maintenance budgets have been increased in line with expectations for 2022/23, this however remains a potential pressure and will be closely monitored throughout the year. No significant projected year end variances to report. No significant projected year end variances to report. The ongoing recruitment to vacancies within the service will continue to be monitored closely. No significant projected year end variances to report. The ongoing recruitment to vacancies within the service will continue to be monitored closely. Key Reasons for Projected Variance RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 24 June 2022 Budget Variance (Adverse) or Favourable No significant projected year end variances to report The projected overspend relates to staffing costs where vacancies are filled as they arise to maintain service provision, meaning turnover targets are not being achieved. In addition, Building Standards fee income remains impacted by the current economic and financial climate with a projected under-recovery of c. 10% of targeted income.
Page 8
Appendix 1 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Core Business Total Projected Outturn £000 £000 £000 £000 £000 £000 % Employees 8,998 497 9,495 9,648 9,648 (153) (1.6%) Premises Related 1,633 0 1,633 1,617 1,617 16 1.0% Transport Related 182 0 182 197 197 (15) (8.4%) Supplies and Services 1,960 0 1,960 1,923 1,923 37 1.9% Third Party Payments 85 0 85 86 86 (1) (1.5%) Transfer Payments 2,633 (231) 2,402 2,359 2,359 43 1.8% Support Services 1,247 0 1,247 1,245 1,245 2 0.2% Depreciation and Impairment Losses (23) 0 (23) (23) (23) 0 0.0% GROSS EXPENDITURE 16,715 266 16,981 17,053 17,053 (72) (0.4%) Income (5,407) 668 (4,739) (4,673) (4,673) (66) (1.4%) NET EXPENDITURE 11,308 934 12,242 12,380 12,380 (138) (1.1%) POLICY BOARD : COMMUNITIES AND HOUSING - GENERAL SERVICES (excluding HRA) Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 24 June 2022
Page 9
Appendix 1 Revenue Account Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Core Business Total Projected Outturn £000 £000 £000 £000 £000 £000 % Employees 10,467 101 10,568 10,223 10,223 345 3.3% Premises Related 16,719 (367) 16,352 16,327 16,327 25 0.2% Transport Related 103 0 103 103 103 0 0.0% Supplies and Services 807 (70) 737 737 737 0 0.0% Third Party Payments 26 1 27 27 27 0 0.0% Transfer Payments 4,000 (100) 3,900 3,900 3,900 0 0.0% Support Services 2,490 0 2,490 2,490 2,490 0 0.0% Depreciation and Impairment Losses 20,425 350 20,775 21,145 21,145 (370) (1.8%) GROSS EXPENDITURE 55,037 (85) 54,952 54,952 54,952 0 0.0% Income (55,037) 85 (54,952) (54,952) (54,952) 0 0.0% NET EXPENDITURE 0 0 0 0 0 0 0.0% RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 24 June 2022 POLICY BOARD : COMMUNITIES, HOUSING AND PLANNING SERVICES - Housing Revenue Account (HRA) Only Budget Variance (Adverse) or Favourable
Page 10
Appendix 2 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2022 2022-23 in 2022-23 2022-23 2022-23 Budget Outurn Project Title to 31-Mar-27 to 31-Mar-27 £000 £000 £000 £000 £000 £000 £000 HOUSING(HRA) Improvements To Existing Properties 0 10,967 (3,250) 7,717 7,717 0 0% 57,167 57,167 0 0% Regeneration 5,233 4,738 750 5,488 5,488 0 0% 20,565 20,565 0 0% Other Assets 0 2,640 0 2,640 2,640 0 0% 7,795 7,795 0 0% Non Property Expenditure 0 350 0 350 350 0 0% 1,750 1,750 0 0% Council House New Build 33,782 9,000 0 9,000 9,000 0 0% 62,782 62,782 0 0% Professional Fees 0 2,300 (700) 1,600 1,600 0 0% 7,700 7,700 0 0% Total Housing(HRA) Programme 39,015 29,995 (3,200) 26,795 26,795 0 0% 157,759 157,759 0 0% HOUSING(PSHG) Private Sector Housing Grant Programme 0 1,046 246 1,292 1,292 0 0% 1,292 1,292 0 0% Total Housing(PSHG) Programme 0 1,046 246 1,292 1,292 0 0% 1,292 1,292 0 0% TOTAL COMMUNITIES, HOUSING & PLANNING BOARD 39,015 31,041 (2,954) 28,087 28,087 0 0% 159,051 159,051 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. RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY 1st April to 24th June 2022 POLICY BOARD: COMMUNITES & HOUSING Current Year 2022-23 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable