Item 12 - Housing Revenue Account BCR to Period 3
West Dunbartonshire Council · 30 August 2023
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer - Resources Council : 30 August 2023 ___________________________________________________________________ Subject: Housing Revenue Account Budgetary Control Report to 30 June 2023 (Period 03) 1. Purpose 1.1 The purpose of the report is to provide members with an update on the financial performance to 30 June 2023 (Period 03) of the HRA revenue and capital budgets for 2023/24. 2. Recommendations 2.1 Members are asked to: i) note the revenue analysis shows projected adverse variances of £1.021m however this will be offset by reducing the contribution from revenue to capital (CFCR) therefore netting to a revenue break even position ; and ii) note the net projected annual position in relation to the capital plan is highlighting an in-year adverse variance of £1.550m (1.24%) as detailed in Appendix 4. 3. Background Revenue 3.1 At the meeting of West Dunbartonshire Council on 01 March 2023, Members agreed the revenue estimates for 2023/24 and a total budget of £49.643m. Capital 3.2 At the meeting of Council on 01 March 2023, Members also agreed the updated Capital Plan for 2023/24 which has been augmented by re-profiling and from 2022/23 and budget adjustment to produce a total planned spend for 2023/24 of £125.442m. 4. Main Issues Revenue 4.1 The budgetary position for HRA Revenue is provided in Appendix 1 with information on projected variances valued at more than £0.050m being provided as Appendix 2.This shows a net break even position which is made up of projected adverse variances of £1.021m, offset by reducing the ITEM 12
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contribution from revenue to capital (CFCR) by the same amount therefore netting to a revenue break even position. The main variance area is repairs which has arisen due to several factors including inflationary increases in materials and labour and 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. Also the efficiency of the work carried will continue to be assessed with a view to minimising the costs of repairs via high productivity. Capital 4.2 The HRA capital summary position is shown in Appendix 3. Information on projects that are highlighted as being within the Red category is provided in Appendix 4 and Appendix 5 provides information on the projects at Green. A summary of anticipated resources is shown in Appendix 6. The analysis shows that there is currently a projected in-year adverse variance of £1.550m. 5. People Implications 5.1 There are no people implications. 6. Financial and Procurement Implications 6.1 Other than the financial position noted above, there are no financial implications of the budgetary control report. There are no procurement implications arising from this report. 7. Risk Analysis 7.1 The main financial risks to the ongoing financial position relate to unforeseen cost being identified between now and the end of the financial year. This can affect all service areas. 8. Equalities Impact Assessment (EIA) 8.1 The report is for noting and therefore no Equalities Impact Assessment was completed for this report. 9. Consultation 9.1 The views of both Housing management and Legal services have been requested on this report and both have advised there are neither any issues nor concerns with the proposal.
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10. Strategic Assessment 10.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the five strategic priorities of the Council’s Strategic Plan. This report forms part of the financial governance of the Council. This report is for noting and, therefore, does not directly affect any of the strategic priorities. Laurence Slavin Chief Officer – Resources Date: 24 July 2023 ___________________________________________________________________ Person to Contact: Janice Rainey - Business Unit Finance Partner (HEED), 16 Church Street, Dumbarton, G82 1QL, telephone: 01389 737704, e-mail janice.rainey@west- dunbarton.gov.uk Appendices: Appendix 1 - Budgetary Position (Revenue) Appendix 2 - Variance analysis (Revenue) Appendix 3 - Budgetary Position (Capital) Appendix 4 - Variance analysis Red (Capital) Appendix 5 - Variance analysis Green Projects (Capital) Appendix 6 - Resources (Capital) Appendix 7 - Analysis of Affordable Housing Supply Programme (Capital) Background Papers: None Wards Affected: All