CAHS Policy Board Period 10 2022-23
Renfrewshire Council · 7 March 2023
Back to Communities and Housing Policy Board — 7 March 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
1 To: Communities and Housing Policy Board On: 7 March 2023 Report by: Director of Finance and Resources Heading: General Services Revenue, Housing Revenue Account (HRA) and Capital Budget Monitoring as at 6 January 2023 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 overspend position of £0.025m (0.2%) against the revised budget for the year. This can be further analysed as a projected overspend in General Services activities of £0.025m 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 £19.992m 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 Budget Variance £000 Budget Variance % Housing Revenue Account (HRA) £0 £0 £0 0% Communities & Housing Directorate £12 £12 £0 0% Housing - General Services (Not HRA) £5,660 £6,078 (£418) (7%) Communities and Public Protection (including Regulatory Services) £6,176 £5,783 £393 6% Criminal Justice £3,725 £3,725 £0 0%
Page 2
2 Table 2: Capital Division / Department Revised Annual Budget £000 Projected Outturn £000 Budget Variance £000 Budget Variance % Housing Revenue Account (HRA) £18,700 £18,700 £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 overspend of £0.025m (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 overspend is £0.025m. This includes a significant projected overspend in the Homelessness Service, which is largely offset by an underspend in employee costs within the Public Protection Service. 4. Revenue Budget Adjustments 4.1. Members are requested to note, from Appendix 1, budget adjustments totalling £1.056m have been processed since the previous finance report to board. These relate wholly to: £0.430m – Increased Employee Costs Budget for Pay Award £0.136m – Drawdown of Rapid Re-Housing Reserve £0.136m – Drawdown of Alcohol & Drug Funding from the Social Renewal Plan
Page 3
3 £0.113m – Drawdown of Private Rented Sector Advocacy and Enforcement Initiative £0.133 – Drawdown of Villages Improvement Funding (£0.153) – Transfer of Environmental Task Force Funding to Reserve £0.261m – Transfer of Pandemic Recovery Grant to reserve 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 £19.992m. 5.2. The Capital Monitoring report at Appendix 2 indicates net budget adjustments in the approved capital programme for Communities and Housing Services of (£2.500m) within HRA to reflect revised cash flows for Improvements to Existing Properties. Along with budget adjustments reported to previous meetings of the Policy Board, this brings the total net budget adjustments in 2022/23 to 11.049m. 6. Capital Budget Adjustments 6.1. Since the last report, budget changes totalling £2.500m have arisen which reflect the following: Budget Carried Forward to 2023-24 from 2022-23 (£2.500m): HRA o Improvements to Existing Properties (£2.500m) related to cash flow timings over work for Heating and External Improvements; ___________________________________________________________________
Page 4
4 Implications of this report 1. Financial – The projected budget outturn position for Communities and Housing Services Revenue budget is an overspend of £0.025m (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.
Page 5
5 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
Page 6
Appendix 1 Objective Summary Approved Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 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 12 0 12 12 0 0.0% (55) 55 Housing - General Services (Not HRA) 5,180 480 5,660 6,078 (418) (7.4%) (271) (147) Communities and Public Protection (including Regulatory Services) 5,861 315 6,176 5,783 393 6.4% 366 27 Criminal Justice 3,464 261 3,725 3,725 0 0.0% 0 0 NET EXPENDITURE 14,517 1,056 15,573 15,598 (25) (0.2%) 40 (65) Objective Heading Housing Revenue Account (HRA) Communities and Housing Directorate Housing - General Services (Not HRA) Communities and Public Protection (including Regulatory Services) Criminal Justice 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 £3.6m against budget, this includes pressures such as rising material, fuel, and labour prices to repair, maintain, and improve our tenants’ homes. The resultant overspend will decrease the funds available for debt repayments at year-end in line with the councils financial strategy of debt smoothing. No significant projected year-end variances to report. There is a projected operating overspend of £0.418m. This and the adverse movement from the previous report, is in part due to continuing pressures on furniture in our temporary accommodation properties. Other significant pressures include increased utility costs £0.037m, Void rental loss of £0.056m and increased Council Tax liability £0.057m as a consequence of extended void periods. Short-stay temporary accommodation is also running with a pressure of £0.027m due to increased demand. Budget lines will be closely monitored with a view to managing this projected overspend. The significant underspend represents the ongoing difficulties in recruitment with the Public Protection service. In addition, there is a staff saving included for Senior Management posts within this service. Within the Community Learning & Development Service, there is a reduction in Payments to Other Bodies, along with an over-recovery of income generated by allocating staff time to the Summer Holiday Food & Child Care Programme. No significant projected year-end variances to report. RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 6 January 2023 Budget Variance (Adverse) or Favourable
Page 7
Appendix 1 Subjective Summary Approved Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 11,674 461 12,135 11,948 187 1.5% 94 93 Premises Related 1,783 2 1,785 1,915 (130) (7.3%) (87) (43) Transport Related 171 4 175 234 (59) (33.7%) (64) 5 Supplies and Services 2,842 493 3,335 3,592 (257) (7.7%) (147) (110) Third Party Payments 85 2 87 86 1 1.1% 1 (0) Transfer Payments 2,559 686 3,245 3,206 39 1.2% 75 (36) Support Services 1,091 0 1,091 1,107 (16) (1.5%) (6) (10) Depreciation and Impairment Losses (23) 0 (23) (23) 0 0.0% 0 0 GROSS EXPENDITURE 20,182 1,648 21,830 22,064 (234) (1.1%) (135) (99) Income (5,665) (592) (6,257) (6,466) 209 3.3% 175 34 NET EXPENDITURE 14,517 1,056 15,573 15,598 (25) (0.2%) 40 (65) Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 6 January 2023 POLICY BOARD : COMMUNITIES AND HOUSING - GENERAL SERVICES (excluding HRA)
Page 8
Appendix 1 Subjective Summary Approved Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 10,531 0 10,531 9,784 747 7.1% 820 (73) Premises Related 16,447 0 16,447 20,071 (3,624) (22.0%) (2,337) (1,287) Transport Related 103 0 103 56 47 45.6% 43 4 Supplies and Services 679 0 679 682 (3) (0.4%) 5 (8) Third Party Payments 27 0 27 121 (94) (348.1%) (102) 8 Transfer Payments 3,900 0 3,900 3,963 (63) (1.6%) (57) (6) Support Services 2,490 0 2,490 2,479 11 0.4% 21 (10) Depreciation and Impairment Losses 20,775 0 20,775 17,131 3,644 17.5% 2,421 1,223 GROSS EXPENDITURE 54,952 0 54,952 54,287 665 1.2% 814 (149) Income (54,952) 0 (54,952) (54,287) (665) (1.2%) (814) 149 NET EXPENDITURE 0 0 0 0 0 0.0% 0 0 POLICY BOARD : COMMUNITIES, HOUSING AND PLANNING SERVICES - Housing Revenue Account (HRA) Only REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 6 January 2023 Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL
Page 9
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 (6,327) 4,640 4,640 0 0% 57,730 57,730 0 0% Regeneration 4,633 4,738 (1,697) 3,041 3,041 0 0% 23,568 23,568 0 0% Other Assets 0 2,640 (610) 2,030 2,030 0 0% 7,885 7,885 0 0% Non Property Expenditure 0 350 89 439 439 0 0% 1,839 1,839 0 0% Council House New Build 33,782 9,000 (1,850) 7,150 7,150 0 0% 62,112 62,112 0 0% Professional Fees 0 2,300 (900) 1,400 1,400 0 0% 7,500 7,500 0 0% Total Housing(HRA) Programme 38,415 29,995 (11,295) 18,700 18,700 0 0% 160,634 160,634 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 (11,049) 19,992 19,992 0 0% 161,926 161,926 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 6th January 2023 POLICY BOARD: COMMUNITES & HOUSING Current Year 2022-23 Full Programme - All years