Item 10 - Appendix 1&2
West Dunbartonshire Council · 25 October 2023
Back to West Dunbartonshire Council — 25 October 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 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 2,698 7,961 292 4% Property Costs 2,377 713 2,084 (293) -12% Transport Costs 142 36 138 (4) 0% Supplies, Services And Admin 389 92 397 8 2% Support Services 2,720 1,084 2,603 (117) -4% Other Expenditure 534 330 485 (49) -9% Repairs & Maintenance 16,257 6,579 19,797 3,540 22% Bad Debt Provision 1,089 31 960 (129) -12% Void Loss (Council Tax/Lost Rents) 1,261 606 1,454 193 15% Loan Charges 15,476 7,911 18,829 3,353 22% CFCR 1,729 0 0 (1,729) -100% Total Expenditure 49,643 20,080 54,708 5,065 10% House Rents 47,729 15,483 47,671 58 0% Lockup Rents 217 65 202 15 7% Factoring/Insurance Charges 1,434 1,495 1,495 (61) -4% Other rents 117 35 120 (3) -3% Interest on Revenue Balance 30 0 146 (116) -387% Transfer from Reserves 0 0 2,634 (2,634) 0% Miscellaneous income 116 36 131 (15) -13% Total Income 49,643 17,114 52,399 (2,756) -6% Net Expenditure 0 2,966 2,309 2,309 Forecast Variance 2023/24 £000 % 31/08/2023
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31/08/2023 PERIOD 5 Budget Forecast Spend RAG Status £000 £000 £000 % EMPLOYEE COSTS 7,669 7,961 292 4% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % PROPERTY COSTS 2,377 2,084 (293) -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 19,797 3,540 22% Main Issues Mitigating Action Anticipated Outcome 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. In addition to this , the pay award for 2324 is exected to be higher than the budgeted 4%. 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 Budget Details Variance Analysis Subjective Analysis forecast Variance Subjective Description A year end overspend is anticipated This budget covers central support recharges to the HRA 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 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
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31/08/2023 PERIOD 5 Budget Forecast Spend RAG Status £000 £000 £000 % BAD DEBT PROVISION 1,089 960 (129) -12% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % VOID LOSS 1,261 1,454 193 15% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % LOAN CHARGES 15,476 18,829 3,353 22% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % CFCR 1,729 0 (1,729) -100% 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 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 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. Budget Details Variance Analysis Subjective Analysis forecast Variance Budget Details Variance Analysis A year end overspend is anticipated 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 is anticpated that there will be no contribution to captal spend in 2023/24. None available 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. Variance Narrative The main reason for this variance is the due to interest payments being higher than anticipated at time of budget setting. The recent increase in bank interest rates has to led to a significant increase in loan interest payments. None available A year end overspend 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