CAHS Policy Board Period 06 2022-23 - Final
Renfrewshire Council · 25 October 2022
Back to Communities and Housing Policy Board — 25 October 2022 and its agenda
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0 To: Communities and Housing Policy Board On: 25 October 2022 Report by: Director of Finance and Resources Heading: General Services Revenue, Housing Revenue Account (HRA) and Capital Budget Monitoring as at 16 September 2022 1. Summary of Financial Position 1.1. The projected outturn at 31 March 2023 for all services reporting to the Communities and Housing Policy Board, including the Housing Revenue Account, is an underspend position of £0.028m (0.2%) against the revised budget for the year. This can be further analysed as a projected underspend in General Services activities of £0.028m and a break-even position in the HRA. 1.2. The projected capital outturn at 31 March 2023 for projects reported to the Communities and Housing Policy Board is a break-even position against the revised budget of £28.087m for the year. 1.3. This is summarised over the relevant services in the table below and further analysis is provided in the Appendices. Table 1: Revenue Division / Department Revised Annual Budget £000 Projected Outturn £000 Total Projected Outturn £000 Budget Variance £000 Budget Variance % Housing Revenue Account (HRA) £0 £0 £0 £0 0% Communities & Housing Directorate £11 £13 £13 (£2) 0% Housing - General Services (Not HRA) £5,172 £5,235 £5,235 (£63) 0% Communities and Public Protection (including Regulatory Services) £5,774 £5,681 £5,681 £93 0% Criminal Justice £3,713 £3,713 £3,713 £0 0%
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1 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 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 Statement at Appendix 1 identifies a projected underspend of £0.028m (0.2% of total budget) for all services reporting to this Policy Board. Detailed division service reports can 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. Projections are subject to continuous review, and any changes will be detailed in future reports to the Board. 3.3. The main reason for the projected outturn positions are indicated below the Appendix 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 underspend is £0.028m. This includes an estimated underspend in operating costs within the Community Learning & Development Service and the CCTV function, and this incorporates an anticipated increase in utility costs. 4. Revenue Budget Adjustments 4.1. Following changes agreed by the Council on 29 September 2022, this report excludes Building Standards, which now reports to the Planning & Climate Change Policy Board. The total budget is adjusted by £0.189m to reflect this transfer. Further, this report now includes Regulatory Services, which previously reported to the Infrastructure, Land and Environment Policy Board. The total budget is adjusted by £1.775m to reflect this transfer.
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2 4.2. Members are requested to note from Appendix 1 that budget adjustments totalling £0.464m have been processed since the previous finance report to board. These relate wholly to: • £0.037m – Housing Support Pay Uplifts • £0.194m – Transfer from Tenant Hardship Grant Fund Reserve • £0.233m – Summer Holiday Food & Child Care Programme 5. Communities and Housing Services Capital 5.1. The Capital Investment Programme 2022/23 to 2026/27 was approved by the Council on 3 March 2022. For Communities and Housing Services the approved capital spend for 2022/23 is £28.087m. 6. Capital Budget Adjustments 6.1. The Capital Monitoring report at Appendix 2 indicates that there have been no budget adjustments since the previous Policy Board. ___________________________________________________________________
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3 Implications of this report 1. Financial – The projected budget outturn position for Communities and Housing Services Revenue budget is an underspend of £0.028m (0.2% 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 and Housing Services’ Capital budget is break-even. 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. 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.
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4 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. __________________________________________________________________ List of Background Papers Housing Revenue Account Budget & Rent Levels 2022/23 and Housing Capital Investment Plan 2022/23 to 2023/24, Council, 3 March 2022; Non-housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2022/23 – 2026/27, Council, 3 March 2022. ___________________________________________________________________ Authors: Kevin Festorazzi, Principal Accountant John Kilpatrick, Finance Business Partner
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Appendix 1 Objective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn 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 Communities and Housing Directorate 11 0 11 13 (2) (18.2%) 0 (2) Housing - General Services (Not HRA) 4,941 231 5,172 5,235 (63) (1.2%) 0 (63) Communities and Public Protection (including Regulatory Services) 5,541 233 5,774 5,681 93 1.6% 0 93 Criminal Justice 3,713 0 3,713 3,713 0 0.0% 0 0 NET EXPENDITURE 14,206 464 14,670 14,642 28 0.2% 0 28 Objective Heading Housing Revenue Account (HRA) Communities and Housing Directorate Housing - General Services (Not HRA) Communities and Public Protection (including Regulatory Services) Criminal Justice Budget Variance (Adverse) or Favourable There is an underspend projected, due to a planned reduction in Payments to Other Bodies in Community Learning & Development, along with a projected underspend on telephone costs within the CCTV service. No significant projected year end variances to report POLICY BOARD : COMMUNITIES AND HOUSING - All SERVICES Key Reasons for Projected Variance Overall the HRA is projecting a break-even position at the year-end. Employee costs are projected to underspend due to the ongoing recruitment of vacancies within the service. However, Repairs & Maintenance costs are likely to overspend by over £2m against budget. The resultant overspend will decrease debt repayments at the year end in line with the councils financial strategy of debt smoothing. No significant projected year end variances to report. There is an operating overspend of £0.063m, mainly due to the demand for furniture for homelessness accommodation, and an increase in expected utility costs.
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Appendix 1 Subjective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 11,384 157 11,541 11,557 (16) (0.1%) (96) 80 Premises Related 1,679 0 1,679 1,743 (64) (3.8%) 16 (80) Transport Related 172 0 172 232 (60) (34.9%) (15) (45) Supplies and Services 2,445 43 2,488 2,611 (123) (4.9%) 37 (160) Third Party Payments 87 0 87 86 1 1.1% (1) 2 Transfer Payments 2,133 264 2,397 2,377 20 0.8% 43 (23) Support Services 1,091 0 1,091 1,099 (8) (0.7%) 2 (10) Depreciation and Impairment Losses (23) 0 (23) (23) 0 0.0% 0 0 GROSS EXPENDITURE 18,967 464 19,431 19,684 (253) (1.3%) (14) (239) Income (4,761) 0 (4,761) (5,042) 281 5.9% 14 267 NET EXPENDITURE 14,206 464 14,670 14,642 28 0.2% 0 28 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 16 September 2022 POLICY BOARD : COMMUNITIES AND HOUSING - GENERAL SERVICES (excluding HRA) Budget Variance (Adverse) or Favourable
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Appendix 1 Subjective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 10,568 0 10,568 9,531 1,037 9.8% 345 692 Premises Related 16,352 0 16,352 18,685 (2,333) (14.3%) 25 (2,358) Transport Related 103 0 103 96 7 6.8% 0 7 Supplies and Services 737 0 737 792 (55) (7.5%) 0 (55) Third Party Payments 27 0 27 72 (45) (166.7%) 0 (45) Transfer Payments 3,900 0 3,900 4,121 (221) (5.7%) 0 (221) Support Services 2,490 0 2,490 2,493 (3) (0.1%) 0 (3) Depreciation and Impairment Losses 20,775 0 20,775 18,274 2,501 12.0% (370) 2,871 GROSS EXPENDITURE 54,952 0 54,952 54,065 887 1.6% 0 887 Income (54,952) 0 (54,952) (54,065) (887) (1.6%) 0 (887) NET EXPENDITURE 0 0 0 0 0 0.0% 0 0 Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 16 September 2022 POLICY BOARD : COMMUNITIES, HOUSING AND PLANNING SERVICES - Housing Revenue Account (HRA) Only
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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 4,633 4,738 750 5,488 5,488 0 0% 20,865 20,865 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 38,415 29,995 (3,200) 26,795 26,795 0 0% 158,059 158,059 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 38,415 31,041 (2,954) 28,087 28,087 0 0% 159,351 159,351 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 16th September 2022 POLICY BOARD: COMMUNITES & HOUSING Current Year 2022-23 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable