Item 13 - Appendix 3
West Dunbartonshire Council · 31 August 2022
Back to West Dunbartonshire Council — 31 August 2022 and its agenda
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 HRA REVENUE BUDGETARY CONTROL 2021/2022 PERIOD END DATE Subjective Summary Total Budget 2021/22 £000 Spend to Date 2021/22 £000 Actual Spend £000 Annual RAG Status Employee Costs 6,272 6,068 6,068 (204) -3% Property Costs 1,917 1,800 1,800 (117) -6% Transport Costs 110 121 121 11 0% Supplies, Services And Admin 394 358 358 (36) -9% Support Services 2,677 2,485 2,485 (192) -7% Other Expenditure 510 715 715 205 40% Repairs & Maintenance 12,860 12,581 12,581 (279) -2% Bad Debt Provision 1,060 1,131 1,131 71 7% Void Loss (Council Tax/Lost Rents) 648 1,635 1,635 987 152% Loan Charges 11,878 10,520 10,520 (1,358) -11% CFCR 7,821 13,175 13,175 5,354 68% Total Expenditure 46,147 50,589 50,589 4,442 10% House Rents 44,419 44,223 44,223 196 0% Lockup Rents 208 206 206 2 1% Factoring/Insurance Charges 1,235 1,268 1,268 (33) -3% Other rents 114 117 117 (3) -3% Interest on Revenue Balance 71 7 7 64 90% Transfer from Reserves 0 4,706 4,706 (4,706) 0% Miscellaneous income 100 137 137 (37) -37% Total Income 46,147 50,664 50,664 (4,517) -10% Net Expenditure 0 (75) (75) (75) Forecast Variance 2021/22 £000 % 31 March 2022
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 HRA REVENUE BUDGETARY CONTROL 2021/2022 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 March 2022 PERIOD 12 Budget Actual Spend RAG Status EMPLOYEE COSTS 6,272 6,068 (204) -3% Main Issues Budget Actual Spend RAG Status £000 £000 £000 % PROPERTY COSTS 1,917 1,800 (117) -6% Main Issues Budget Actual Spend RAG Status SUPPORT SERVICES 2,677 2,485 (192) -7% Main Issues OTHER EXPENDITURE 510 715 205 40% Main Issues Budget Actual Spend RAG Status £000 £000 £000 % REPAIRS & MAINTENANCE 12,860 12,581 (279) -2% Main Issues Variance Narrative This budget covers central support recharges to the HRA Variance Narrative forecast Variance Budget Details Subjective Analysis The year end recharge for the use of central support services was lower than anticipated resulting in a favourable variance. Variance Analysis The main reason for this overspend relates to an increase in rent abatement payments in 21/22 with higher costs than anticipated at time of budget setting. Service Description This budget covers all repair and maintenance expenditure to houses and lockups Budget Details Subjective Analysis Variance Analysis forecast Variance Subjective Description Subjective Description This budget covers electricity, gas, rates, rents, cleaning and insurance costs. Variance Narrative The main reasons for this underspend relates to the recharge for the cost of property insurance will be more in line with last year's actual than assumed within budget. Other costs also have come in below budget including electricity, gas and contract cleaning. Budget Details Variance Analysis Subjective Analysis forecast Variance The underspend is attributable to a few factors. Maintenance service contracts have been obtained at a lower cost than budgeted. General repairs have been less than budgeted since the focus has been on dealing with larger jobs which fall under capital budgets rather than revenue. It has also not been possible to identify many suitable projects to utilise the WDTRO budget therefore this budget remains unspent in 21/22. Budget Details Variance Analysis Subjective Analysis forecast Variance Subjective Description This budget covers all employees charged directly to the HRA including caretakers. Variance Narrative The main reason for the the favourable varaince is due to recharges to HRA revenue being lower than anticpated at time of budget setting. Subjective Description This budget covers rent abatements, membership fees and tenancy sustainment Variance Narrative
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 HRA REVENUE BUDGETARY CONTROL 2021/2022 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 March 2022 PERIOD 12 Budget Actual Spend RAG Status £000 £000 £000 % BAD DEBT PROVISION 1,060 1,131 71 7% Main Issues Budget Actual Spend RAG Status £000 £000 £000 % VOID LOSS 648 1,635 987 152% Main Issues Budget Actual Spend RAG Status £000 £000 £000 % LOAN CHARGES 11,878 10,520 (1,358) -11% Main Issues Budget Actual Spend RAG Status £000 £000 £000 % CFCR 7,821 13,175 5,354 68% Budget Details Variance Analysis Subjective Analysis forecast Variance Subjective Analysis forecast Variance Service Description Loan Charges is made up of repayments of principle sums, and the payments of interest and expenses Variance Narrative The main reason for this varaince is the due to the principal repayment being lower than anticipated at time of budget setting. Service Description CFCR is made up of the cost of capital funded from current reserves (CFCR) Variance Narrative Variance Narrative The main reason for this adverse variance relates to the number of void properties being higher than budgeted. Despite restrictions being lifted and best efforts to relet properties towards the end of 20/21, the recovery to normal numbers was not possible. Therefore, void numbers are starting higher in 21/22 than assumed within the budget. This is reflected in a higher cost for void rent loss and void council tax against budget. Budget Details Variance Analysis Subjective Analysis forecast Variance Service Description This budget covers the rents lost on void houses and lockups and the cost of council tax on void properties. Budget Details Variance Analysis Service Description This budget allows for the provision for bad and doubtful debts to be maintained at an appropriate level Variance Narrative The Bad Debt Provision required for 21/22 was more than estimated at time of budget setting, resulting in an adverse variance. Budget Details Variance Analysis Subjective Analysis forecast Variance
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 HRA REVENUE BUDGETARY CONTROL 2021/2022 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 March 2022 PERIOD 12 Main Issues Budget Actual Spend RAG Status £000 £000 £000 % INTEREST ON REVENUE BALANCES 71 7 64 90% Main Issues Budget Actual Spend RAG Status £000 £000 £000 % TRANSFER FROM RESERVES 0 4,706 (4,706) 0% Main Issues Service Description Interest received based upon the balances contained within the revenue account. Variance Narrative Budget set too high. Balances vary year on year, thus making it more difficult to accurately budget. The main reason for the adverse varaince is due to higher than expected and an additonal CFCR from reserves being required in 21/22. Budget Details Variance Analysis Subjective Analysis forecast Variance Budget Details Variance Analysis Subjective Analysis forecast Variance Service Description Amount transferred from reserves. Variance Narrative This favourable variance is due to transfer from reserves, consisting of additonal CFCR and relase of covid funds in relation to repairs.