Item 14 - Appendices 1&2
West Dunbartonshire Council · 23 August 2023
Back to Housing & Communities Committee — 23 August 2023 and its agenda
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 1 HRA REVENUE BUDGETARY CONTROL 2023/24 PERIOD END DATE Subjective Summary Total Budget 2023/24 £000 Spend to Date 2023/24 £000 Forecast Spend £000 Annual RAG Status Employee Costs 7,669 1,565 7,881 212 3% Property Costs 2,377 140 2,087 (290) -12% Transport Costs 142 7 138 (4) 0% Supplies, Services And Admin 389 38 397 8 2% Support Services 2,720 0 2,603 (117) -4% Other Expenditure 534 258 485 (49) -9% Repairs & Maintenance 16,257 1,332 17,473 1,216 7% Bad Debt Provision 1,089 16 939 (150) -14% Void Loss (Council Tax/Lost Rents) 1,261 461 1,617 356 28% Loan Charges 15,476 3,934 15,476 0 0% CFCR 1,729 307 708 (1,021) -59% Total Expenditure 49,643 8,058 49,804 161 0% House Rents 47,729 11,343 47,693 36 0% Lockup Rents 217 48 216 1 0% Factoring/Insurance Charges 1,434 1,498 1,498 (64) -4% Other rents 117 23 120 (3) -3% Interest on Revenue Balance 30 0 146 (116) -387% Miscellaneous income 116 29 131 (15) -13% Total Income 49,643 12,941 49,804 (161) 0% Net Expenditure 0 (4,883) 0 0 Forecast Variance 2023/24 £000 % 30 June 2023 ITEM 14 - APPENDIX 1
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 30 June 2023 PERIOD 3 Budget Forecast Spend RAG Status £000 £000 £000 % EMPLOYEE COSTS 7,669 7,881 212 3% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % PROPERTY COSTS 2,377 2,087 (290) -12% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % SUPPORT SERVICES 2,720 2,603 (117) -4% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % REPAIRS & MAINTENANCE 16,257 17,473 1,216 7% Main Issues Mitigating Action Anticipated Outcome 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 assumption that office accommodation and utility costs will be similar to last year which is lower than anticipated at time of budget setting, resulting in a favourable variance. A year end underspend is anticipated Managers will continue to consider ways to keep staffing costs down including considering each vacancy as it arises re need / urgency to fill. High volume of jobs and inflationary increases in materials and labour have resulted in the budget being insufficient to meet current demand . There was a large numbers of voids at start of financial year. Void numbers have now significantly reduced therefore it is expected costs will start to reduce in this area. 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 There are uncontrollable costs, such as materials and inflation as well as the demand for repairs which continues to increase. However as we continue to progress with the building services improvement plan, we expect costs to reduce particularly in relation to void houses. Budget Details A year end overspend is anticipated This budget covers central support recharges to the HRA 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 additional posts being approved, after time of budget setting to meet the demands of the service A favourable variance is expected with the assumption that the 2023/24 forecast outturn for support services is expected to be in line with the 2022/23 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 2023/24 HRA budget was set before this 2022/23 outturn was known so was based on 2021/22 charge which was higher. Service Description Budget Details Variance Analysis Subjective Analysis forecast Variance Budget Details Variance Analysis Subjective Analysis forecast Variance
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 30 June 2023 PERIOD 3 Budget Forecast Spend RAG Status £000 £000 £000 % BAD DEBT PROVISION 1,089 939 (150) -14% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % VOID LOSS 1,261 1,617 356 28% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % CFCR 1,729 708 (1,021) -59% Main Issues Mitigating Action Anticipated Outcome 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 continue to decrease 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. 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 2023/24 , it will be necessary to reduce the contribution to Capital to allow the HRA account to break even. None available Budget Details Variance Analysis Subjective Analysis forecast Variance A year end overspend is anticipated Subjective Analysis forecast Variance A year end underspend is anticipated Variance Narrative The Bad Debt Provision expected to be required for 2023/24 is less than estimated at time of budget setting, resulting in a favourable variance. This assumes that the provision required in 2023/24 will be similar to the 2022/23 provision. 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 however the numbers continued to be high at the beginning of this financial year . They have now lowered considerably Budget Details Variance Analysis Service Description 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 ITEM 14 - APPENDIX 2