Item 13 - Appendices 1 -2
West Dunbartonshire Council · 22 February 2023
Back to Housing & Communities Committee — 22 February 2023 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 4,796 6,932 242 4% Property Costs 2,030 1,267 1,909 (121) -6% Transport Costs 112 85 139 27 0% Supplies, Services And Admin 395 173 330 (65) -16% Support Services 2,724 1,742 2,613 (111) -4% Other Expenditure 532 650 754 222 42% Repairs & Maintenance 12,942 9,763 13,783 841 6% Bad Debt Provision 1,060 731 975 (85) -8% Void Loss (Council Tax/Lost Rents) 857 1,644 2,150 1,293 151% Loan Charges 12,175 9,232 12,309 134 1% CFCR 7,501 4,039 5,385 (2,116) -28% Total Expenditure 47,018 34,122 47,279 261 1% House Rents 45,215 33,342 45,388 (173) 0% Lockup Rents 210 148 206 4 2% Factoring/Insurance Charges 1,316 977 1,302 14 1% Other rents 115 78 116 (1) -1% Interest on Revenue Balance 55 23 30 25 45% Transfer from Reserves 0 0 100 (100) 0% Miscellaneous income 107 45 137 (30) -28% Total Income 47,018 34,613 47,279 (261) -1% Net Expenditure 0 (492) 0 0 Forecast Variance 2022/23 £000 % 31 December 2022 ITEM 13
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 December 2022 PERIOD 9 Budget Forecast Spend RAG Status £000 £000 £000 % EMPLOYEE COSTS 6,690 6,932 242 4% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % PROPERTY COSTS 2,030 1,909 (121) -6% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % SUPPLIES, SERVICES AND ADMIN 395 330 (65) -16% Main Issues Mitigating Action No mitigating action is required. 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 year end overspend is anticipated 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 Budget Details Variance Analysis Subjective Analysis forecast Variance Subjective Description This budget covers electricity, gas, rates, rents, cleaning and insurance costs. Variance Narrative A favourable variance is expected due to the revised probable calculations for utilities, based on 21/22 actual outturn plus required inflation rates. A year end underspend is anticipated Budget Details Variance Analysis Subjective Analysis forecast Variance Subjective Description This budget covers computer supplies & equipment, telephones, printing, postages and tenant participation costs. Variance Narrative A favourable variance is forecast due to the expectation that the ICT computer software recharge for 22/23 will be similar to the 21/22 recharge, which was lower than 22/23 budget, resulting in a projected favourable variance. Tenant Participation costs are also expected to be under budget based on the trend of the spend year to date. A year end underspend is anticipated ITEM 13
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 December 2022 PERIOD 9 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 13,783 841 6% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % BAD DEBT PROVISION 1,060 975 (85) -8% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % Budget Details Variance Analysis 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 This budget covers central support recharges to the HRA Subjective Analysis forecast Variance 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 2022/23, 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 A year end underspend 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 . 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 2022/23 will be similar to the 2021/22 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
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 December 2022 PERIOD 9 VOID LOSS 857 2,150 1,293 151% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % LOAN CHARGES 12,175 12,309 134 1% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % CFCR 7,501 5,385 (2,116) -28% Main Issues Mitigating Action Anticipated Outcome 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 . 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 months. This budget covers the rents lost on void houses and lockups and the cost of council tax on void properties. Service Description Budget Details Variance Analysis Subjective Analysis forecast Variance A year end underspend is anticipated Service Description This budget covers the contribution from revenue to Capital Variance Narrative In order to offset the cost pressures on the revenue HRA in 2022/23 , it will be necessary to reduce the contribution to Capital to allow the HRA account to break even. Due to a large part of the planned Capital spend on new builds being reprofiled into 2023/24 this reduced contribution will not create any issues for the remaining Capital programs being delivered in 2022/23. None available Budget Details Variance Analysis A year end overspend is anticipated Variance Narrative The main reason for this varaince is the due to interest payments being higher than anticipated at time of budget setting. None available A year end oversend is anticipated Subjective Analysis forecast Variance Service Description Loan Charges is made up of repayments of principle sums, and the payments of interest and expenses