Item 10 Appendix 3
West Dunbartonshire Council · 30 August 2023
Back to West Dunbartonshire Council — 30 August 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 HRA REVENUE BUDGETARY CONTROL 2022/23 PERIOD END DATE Subjective Summary Total Budget 2022/23 £000 Actual 2022/23 £000 Annual RAG Status Employee Costs 6,690 7,180 490 7% Property Costs 2,030 2,122 92 5% Transport Costs 112 136 24 0% Supplies, Services And Admin 395 425 30 8% Support Services 2,724 2,550 (174) -6% Other Expenditure 532 800 268 50% Repairs & Maintenance 12,942 14,839 1,897 15% Bad Debt Provision 1,060 939 (121) -11% Void Loss (Council Tax/Lost Rents) 857 2,141 1,284 150% Loan Charges 12,175 13,503 1,328 11% CFCR 7,501 2,911 (4,590) -61% Total Expenditure 47,018 47,546 528 1% House Rents 45,215 45,396 (181) 0% Lockup Rents 210 206 4 2% Factoring/Insurance Charges 1,316 1,302 14 1% Other rents 115 116 (1) -1% Interest on Revenue Balance 55 117 (62) -113% Transfer from Reserves 0 100 (100) 0% Miscellaneous income 107 309 (202) -189% Total Income 47,018 47,546 (528) -1% Net Expenditure 0 0 0 Forecast Variance 2022/23 £000 % 31 March 2023
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 March 2023 PERIOD 12 Budget Forecast Spend RAG Status £000 £000 £000 % EMPLOYEE COSTS 6,690 7,180 490 7% Main Issues Budget Forecast Spend RAG Status £000 £000 £000 % PROPERTY COSTS 2,030 2,122 92 5% Main Issues Budget Forecast Spend RAG Status £000 £000 £000 % SUPPORT SERVICES 2,724 2,550 (174) -6% Main Issues Budget Forecast Spend RAG Status £000 £000 £000 % Other Expenditure 532 800 268 50% Main Issues 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 significantly higher than the 2% budgeted . Also £100K of this adverse variance relates to the increased pay awarded to caretakers following job evaluation panel on 7 April. This £100K is offset by a transfer from HRA service improvement reserve which is shown in the income section . Support charges due to HRA are reviewed each year and for 22/23 has resulted in a lower than budgeted charge being appropriate. Budget Details Variance Analysis Subjective Analysis forecast Variance This budget covers central support recharges to the HRA Variance Narrative Subjective Description Budget Details Variance Analysis Subjective Analysis forecast Variance Subjective Description This budget covers electricity, gas, rates, rents, cleaning and insurance costs. Variance Narrative This adverse variance is due to the rising cost of insurance and utilities. Budget Details Variance Analysis Subjective Analysis forecast Variance Subjective Description This budget covers rent abatements, membership fees and tenancy sustainment Variance Narrative The main reason for this overspend relates to an increase in rent abatement payments in 22/23 with higher costs than anticipated at time of budget setting.
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 March 2023 PERIOD 12 Budget Forecast Spend RAG Status £000 £000 £000 % REPAIRS & MAINTENANCE 12,942 14,839 1,897 15% Main Issues Budget Forecast Spend RAG Status £000 £000 £000 % BAD DEBT PROVISION 1,060 939 (121) -11% Main Issues Budget Forecast Spend RAG Status £000 £000 £000 % VOID LOSS 857 2,141 1,284 150% Main Issues Budget Forecast Spend RAG Status £000 £000 £000 % LOAN CHARGES 12,175 13,503 1,328 11% Main Issues 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 time taken to get the numbers reducing has been slower than anticipated leading to this cost. Budget Details Variance Analysis 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 Subjective Analysis forecast Variance Service Description 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 was higher than the typical years costs . Variance Narrative This budget covers all repair and maintenance expenditure to houses and lockups Budget Details Variance Analysis Variance Narrative The Bad Debt Provision required is re assessed each year . Based on the debt information, the amount required in 2022/23 is less than estimated at time of budget setting, resulting in a favourable variance. 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 this variance is the due to interest payments being higher than anticipated at time of budget setting due to the increasing lending rates now being offered Subjective Analysis forecast Variance Service Description Loan Charges is made up of repayments of principle sums, and the payments of interest and expenses
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 March 2023 PERIOD 12 Budget Forecast Spend RAG Status £000 £000 £000 % CFCR 7,501 2,911 (4,590) -61% Main Issues Budget Forecast Spend RAG Status £000 £000 £000 % Rent 45,215 45,396 181 0.4% Main Issues INTEREST ON REVENUE BALANCES 55 117 (62) -113% Main Issues Budget Actual Spend RAG Status £000 £000 £000 % TRANSFER FROM RESERVES 0 100 100 0% Main Issues Misc. Income 107 309 (202) -189% Main Issues 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. This may have an impact on future investments and / or rent levels. Budget Details Variance Analysis Subjective Analysis forecast Variance Budget Details Variance Analysis Subjective Analysis forecast Variance Interest received based upon the balances contained within the revenue account. Variance Narrative Increased interest rates have resulted in income being higher. Budget Details Variance Analysis Service Description This budget covers the income from Housing houses and lock ups . Variance Narrative Small favourable due to timings of newbuilds being rented out . Service Description This favourable variance is due to transfer from Balance sheet of a balance held no longer required . Variance Narrative This favourable variance is due to transfer from reserves to offset the cost of the caretakers salary re-evaluation. Service Description Income from miscellaneous sources Variance Narrative Subjective Analysis forecast Variance Service Description Amount transferred from reserves.