Item 13 Appendix 1-2 - Housing Revenue Account Budgetary Control Report to 30 September 2022 (Period 6)
West Dunbartonshire Council · 23 November 2022
Back to Housing & Communities Committee — 23 November 2022 and its agenda
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 1 HRA REVENUE BUDGETARY CONTROL 2022/23 PERIOD END DATE Subjective Summary Total Budget 2022/23 £000 Spend to Date 2022/23 £000 Forecast Spend £000 Annual RAG Status Employee Costs 6,690 2,944 6,976 286 4% Property Costs 2,030 869 2,035 5 0% Transport Costs 112 64 128 16 0% Supplies, Services And Admin 395 119 382 (13) -3% Support Services 2,724 0 2,613 (111) -4% Other Expenditure 532 508 580 48 9% Repairs & Maintenance 12,942 6,980 13,455 513 4% Bad Debt Provision 1,060 459 923 (137) -13% Void Loss (Council Tax/Lost Rents) 857 1,060 1,678 821 96% Loan Charges/CFCR 19,676 9,838 18,313 (1,363) -7% Total Expenditure 47,018 22,841 47,083 65 0% House Rents 45,215 21,543 45,253 (38) 0% Lockup Rents 210 95 213 (3) -1% Factoring/Insurance Charges 1,316 653 1,307 9 1% Other rents 115 47 116 (1) -1% Interest on Revenue Balance 55 5 10 45 82% Transfer from Reserves 0 0 60 (60) 0% Miscellaneous income 107 38 124 (17) -16% Total Income 47,018 22,381 47,083 (65) 0% Net Expenditure 0 460 0 0 Forecast Variance 2022/23 £000 % 30/09/2022
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 30/09/2022 PERIOD 6 Budget Forecast Spend RAG Status £000 £000 £000 % EMPLOYEE COSTS 6,690 6,976 286 4% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % SUPPORT SERVICES 2,724 2,613 (111) -4% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % REPAIRS & MAINTENANCE 12,942 13,455 513 4% Main Issues Mitigating Action Anticipated Outcome Budget Details Variance Analysis Subjective Analysis forecast Variance Subjective Description This budget covers all employees charged directly to the HRA including caretakers. Variance Narrative This adverse variance is mainly due to the agreed pay award being higher than the 2% budgeted . Also £60K of this adverse variance relates to the increased pay awarded to caretakers following job evaluation panel on 7 April. This £60K is offset by a transfer from HRA service improvement reserve which is shown in the income section . A favourable variance is expected with the assumption that the 2022/23 forecast outturn for support services is expected to be in line with the 2021/22 outturn adjusted for pay uplifts etc. This charge is calculated each year end based on HRA's percentage usage of the total cost of WDC support services. The 2022/23 HRA budget was set before this 2021/22 outturn was known so was based on 2020/21 charge which was higher. Service Description Budget Details Variance Analysis Subjective Analysis forecast Variance Budget Details Variance Analysis Subjective Analysis forecast Variance A year end overspend is anticipated This budget covers central support recharges to the HRA It is not possible to mitigate against an agreed pay award however managers will continue to review any possible reductions in costs where possible to try and partially offset some of this The adverse variance within Repairs & Maintenance is due to additional work being carried out to catch up with both jobbing repairs and void repairs. Additional capacity to do this has been achieved through use of sub contractors as well as continuing with HMTA work so in effect more than a typical year worth of work is expected to be completed in 22/23, therefore the cost will be higher than usual. Variance Narrative Variance Narrative This budget covers all repair and maintenance expenditure to houses and lockups Subjective Description A year end underspend is anticipated A year end overspend is anticipated In order to get back to pre - COVID levels of voids and repairs , it is considered necessary to pursue this increased activity for 2022/23 albeit at a financial cost . It should be noted that in previous years, costs were lower than budgeted due to lower activity in lockdown / COVID restrictions .
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 30/09/2022 PERIOD 6 Budget Forecast Spend RAG Status £000 £000 £000 % BAD DEBT PROVISION 1,060 923 (137) -13% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % VOID LOSS 857 1,678 821 96% Main Issues Mitigating Action Anticipated Outcome A year end overspend is anticipated Variance Narrative The Bad Debt Provision expected to be required for 2022/23 is less than estimated at time of budget setting, resulting in a favourable variance. This assumes that the provision required in 22/23 will be similar to the 21/22 provision. Budget Details Variance Analysis Subjective Analysis forecast Variance Service Description This budget allows for the provision for bad and doubtful debts to be maintained at an appropriate level Variance Narrative The main reason for the projected adverse variance relates to the number of void properties being higher than expected at time of budget setting. The budget was set on the assumption that backlogs following COVID delays in getting voids turned around would be resolved early in year however the numbers continue to be high . Budget Details Variance Analysis A void working group has been reviewing the issues and have been implementing actions and working with Housing Maintenance managers to improve the situation and it is expected that the void figures will start to decrease significantly over the next few month This budget covers the rents lost on void houses and lockups and the cost of council tax on void properties. Subjective Analysis forecast Variance Service Description A year end underspend is anticipated