CAHS Policy Board Period 03 2023-24 Paper
Renfrewshire Council · 22 August 2023
Back to Communities and Housing Policy Board — 22 August 2023 and its agenda
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0 To: Communities and Housing Policy Board On: 22 August 2023 Report by: Director of Finance and Resources Heading: General Services Revenue, Housing Revenue Account (HRA) and Capital Budget Monitoring as at 23rd June 2023 1. Summary of Financial Position 1.1. The projected outturn at 31 March 2024 for all services reporting to the Communities and Housing Policy Board, including the Housing Revenue Account, is an underspend position of £0.343m (2.4%) against the revised budget for the year. This can be further analysed as a projected underspend in General Services activities of £0.343m and a break-even position in the HRA. 1.2. The projected capital outturn at 31 March 2024 for projects reported to the Communities and Housing Policy Board is a break-even position against the revised budget of £30.795m 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% Housing – General Services (Not HRA) 4,906 4,906 0 0% Communities and Public Protection 6,062 5,719 343 5.7% Criminal Justice 3,190 3,190 0 0% Board Total – Revenue 14,158 13,815 343 2.4%
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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) 29,678 29,678 0 0% Other Housing PSHG 1,117 1,117 0 0% Board Total – Capital 30,795 30,795 0 0% 2. Recommendations 2.1 Members are requested to: a) Note the projected Revenue outturn position detailed in Table 1 above; b) Note the projected Capital outturn position detailed in Table 2 above; and c) Approve the £0.300m reinstatement of HRA reserves from the recurring saving option in section 4.2; d) Approve 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 £0.343m (2.4% 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 £0.343m, largely due to an underspend in employee costs within the Public Protection Service, owing to a number of vacancies. 4. Revenue Budget Adjustments 4.1. Members are requested to note, from Appendix 1, budget adjustments totalling £0.591m have been processed since the budget was approved in March 2023. These relate wholly to:
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2 • £0.040m – Drawdown from Rapid Re-Housing Reserve • £0.205m – Drawdown from Private Sector Housing Reserve • £0.064m – Drawdown of Alcohol & Drug Funding from the Social Renewal Plan • £0.080m – Drawdown of Private Rented Sector Advocacy and Enforcement Initiative Funding • £0.142m – Drawdown of Environmental Task Force Funding • £0.060m – Transfer of Duke of Edinburgh Funding from Children’s Services 4.2. Members are also asked to approve an option which will allow the HRA reserves budget to be reinstated by a £0.300m recurrent saving, as per the agreed actions arising from the Council meeting of 2 March 2023. It is proposed that a recurring saving of £0.300m can be achieved by redesigning the delivery of elements of housing management services through management actions. These proposals will result in no reduction on existing service levels delivered to tenants. 5. Communities and Housing Services Capital 5.1. The Capital Investment Programme 2023/24 to 2027/28 was approved by the Council on 2 March 2023. For Communities and Housing Services the approved capital spend for 2023/24 is £30.795m. 5.2. The Capital Monitoring report at Appendix 2 indicates net budget adjustments in the approved capital programme for Communities and Housing Services of £0.517m, as explained in 6.1 below. 6. Capital Budget Adjustments 6.1. Since the budget was approved on 2 March 2023, budget changes totalling £0.517m have arisen, which reflect the following: • Budget increase of £0.517m in 2023/24, to reflect the Public Sector Housing Grant (PSHG) Investment Project 23/24 approved by the Communities and Housing Policy Board on 16 May 2023. ___________________________________________________________________
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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 £0.343m (2.4% of total budget). 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 significant 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 significant 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 None directly arising from this report. 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 budget for the year will be managed at a Council-wide level by the Chief Executive and Directors.
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4 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 2023/24 and Housing Capital Investment Plan 2023/24 to 2027/28, Council, 2 March 2023; Non-housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2023/24 – 2027/28, Council, 2 March 2023. ___________________________________________________________________ Authors: John Kilpatrick, Finance Business Partner Linsey Mcgregor, Capital Accountant
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Appendix 1 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Housing Revenue Account (HRA) 0 0 0 0 0 0.0% Housing - General Services (Not HRA) 4,539 367 4,906 4,906 0 0.0% Communities and Public Protection (including Regulatory Services) 5,838 224 6,062 5,719 343 5.7% Criminal Justice 3,190 0 3,190 3,190 0 0.0% NET EXPENDITURE 13,567 591 14,158 13,815 343 2.4% Objective Heading Housing Revenue Account (HRA) Housing - General Services (Not HRA) Communities and Public Protection Criminal Justice RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 23 June 2023 Budget Variance (Adverse) or Favourable POLICY BOARD : COMMUNITIES AND HOUSING - All SERVICES An underspend in employee costs is projected due to the timing of recruitment of vacancies within the service. Property costs are projected to overspend, reflecting ongoing demands for repair and maintenance provision, particularly in void properties, as well as additional Council Tax costs for these properties. Transfer payments are forecast to overspend, owing to the impact of repairs pressures on void rent loss. These overspends are expected to be offset by additional interest income due to higher than budgeted interest rates. Overall, the HRA is therefore still projected to break-even at year-end. Key Reasons for Projected Variance Within Property Costs there is increasing demand for homelessness accommodation, impacting on rental costs, Council Tax and furniture for temporary accommodation units. This forecast overspend is expected to be offset by additional rental income received in relation to these units. All budget lines are being closely monitored with an aim to mitigate the overspends anticipated as a result of these demand pressures. The projected underspend here relates to vacancies within the service, which are currently being reviewed by operational management. No significant projected year end variances to report.
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Appendix 1 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Employees 11,503 876 12,379 12,244 135 1.1% Premises Related 1,779 211 1,990 2,217 (227) (11.4%) Transport Related 172 (2) 170 197 (27) (15.9%) Supplies and Services 2,307 934 3,241 3,203 38 1.2% Third Party Payments 87 0 87 84 3 3.4% Transfer Payments 3,151 (516) 2,635 2,679 (44) (1.7%) Support Services 55 1 56 28 28 50.0% Depreciation and Impairment Losses (23) 0 (23) (18) (5) (21.7%) GROSS EXPENDITURE 19,031 1,504 20,535 20,636 (101) (0.5%) Income (5,464) (913) (6,377) (6,821) 444 7.0% NET EXPENDITURE 13,567 591 14,158 13,815 343 2.4% POLICY BOARD : COMMUNITIES AND HOUSING - GENERAL SERVICES (excluding HRA) Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 23 June 2023
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Appendix 1 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Employees 11,007 (241) 10,766 10,476 290 2.7% Premises Related 20,397 0 20,397 21,322 (925) (4.5%) Transport Related 103 0 103 51 52 50.5% Supplies and Services 792 (59) 733 787 (54) (7.4%) Third Party Payments 49 0 49 137 (88) (179.6%) Transfer Payments 4,190 300 4,490 4,969 (479) (10.7%) Support Services 2,492 0 2,492 2,447 45 1.8% Depreciation and Impairment Losses 19,089 0 19,089 19,089 0 0.0% GROSS EXPENDITURE 58,119 0 58,119 59,277 (1,158) (2.0%) Income (58,119) 0 (58,119) (59,277) 1,158 2.0% NET EXPENDITURE 0 0 0 0 0 0.0% Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL POLICY BOARD : COMMUNITIES, HOUSING AND PLANNING SERVICES - Housing Revenue Account (HRA) Only REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 23 June 2023
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Appendix 2 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2023 2023-24 in 2023-24 2023-24 2023-24 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 13,390 0 13,390 13,390 0 0% 114,025 114,025 0 0% Regeneration 7,045 9,378 0 9,378 9,378 0 0% 106,953 106,953 0 0% Other Assets 0 1,815 0 1,815 1,815 0 0% 12,500 12,500 0 0% Non Property Expenditure 0 1,550 0 1,550 1,550 0 0% 1,550 1,550 0 0% Council House New Build 33,782 1,680 0 1,680 1,680 0 0% 74,599 74,599 0 0% Professional Fees 0 1,865 0 1,865 1,865 0 0% 9,615 9,615 0 0% Total Housing(HRA) Programme 40,827 29,678 0 29,678 29,678 0 0% 319,242 319,242 0 0% HOUSING(PSHG) Private Sector Housing Grant Programme 0 600 517 1,117 1,117 0 0% 1,117 1,117 0 0% Total Housing(PSHG) Programme 0 600 517 1,117 1,117 0 0% 1,117 1,117 0 0% TOTAL COMMUNITIES, HOUSING & PLANNING BOARD 40,827 30,278 517 30,795 30,795 0 0% 320,359 320,359 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 23rd June 2023 POLICY BOARD: COMMUNITES & HOUSING Current Year 2023-24 Full Programme - All years