Item 15 - Appendices 1 and 2
West Dunbartonshire Council · 31 August 2022
Back to West Dunbartonshire Council — 31 August 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
WEST DUNBARTONSHIRE COUNCIL APPENDIX 1 HRA REVENUE BUDGETARY CONTROL 2022/23 PERIOD END DATE Subjective Summary Total Budget 2022/23 £000 Spend to Date 2022/23 £000 Forecast Spend £000 Annual RAG Status Employee Costs 6,690 1,936 6,832 142 2% Property Costs 2,030 504 2,000 (30) -1% Transport Costs 112 42 133 21 0% Supplies, Services And Admin 395 72 382 (13) -3% Support Services 2,724 845 2,536 (188) -7% Other Expenditure 532 346 580 48 9% Repairs & Maintenance 12,942 820 12,432 (510) -4% Bad Debt Provision 1,060 302 923 (137) -13% Void Loss (Council Tax/Lost Rents) 857 630 1,549 692 81% Loan Charges 19,676 6,559 19,676 0 0% Total Expenditure 47,018 12,056 47,043 25 0% House Rents 45,215 12,756 45,215 0 0% Lockup Rents 210 57 207 3 1% Factoring/Insurance Charges 1,316 436 1,307 9 1% Other rents 115 27 116 (1) -1% Interest on Revenue Balance 55 3 10 45 82% Income from Reserves 0 0 60 (60) 0% Miscellaneous income 107 41 136 (29) -27% Total Income 47,018 13,320 47,051 (33) 0% Net Expenditure 0 (1,264) (8) (8) Forecast Variance 2022/23 £000 % 31 July 2022
Page 2
WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 July 2022 PERIOD 4 Budget Forecast Spend RAG Status £000 £000 £000 % EMPLOYEE COSTS 6,690 6,832 142 2% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % SUPPORT SERVICES 2,724 2,536 (188) -7% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome The need for additional staffing is regularly reviewed and will be reduced when service requirements allow. This budget covers all employees charged directly to the HRA including caretakers. Variance Narrative £60K of this adverse variance relates to the increased pay awarded to caretakers following job evaluation panel on 7 April. This is offset by a transfer from HRA service improvement reserve which is shown in the income section . The remaining variance is due to additional temp posts being added to assist with backlogs/ staff absences. A favourable variance is expected with the assumption that the 2022/23 forecast outturn for support services is expected to be in line with the 2021/22 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 2022/23 HRA budget was set before this 2021/22 outturn was known so was based on 2020/21 charge which was higher. Budget Details Variance Analysis Subjective Analysis forecast Variance A year end overspend is anticipated Budget Details Variance Analysis Subjective Analysis forecast Variance Subjective Description This budget covers central support recharges to the HRA Variance Narrative Subjective Description A year end underspend is anticipated
Page 3
WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 July 2022 PERIOD 4 Budget Forecast Spend RAG Status £000 £000 £000 % REPAIRS & MAINTENANCE 12,942 12,432 (510) -4% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % BAD DEBT PROVISION 1,060 923 (137) -13% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Service Description Budget Details Variance Analysis Subjective Analysis forecast Variance The favourable variance within Repairs & Maintenance is due to a couple of factors. The first being other maintenance relating to Gas Maintenance, Lift Maintenance etc. is expected to be lower than anticipated at time of budget setting when comparing to previous years trends. The second factor, similarly when looking at previous years trends we can expect the recoveries from owners to be higher than anticipated at time of budget setting. These combined results in the projected favourable variance in 2022/23. Variance Narrative This budget covers all repair and maintenance expenditure to houses and lockups A year end underspend is anticipated A year end underspend is anticipated Variance Narrative The Bad Debt Provision expected to be required for 2022/23 is less than estimated at time of budget setting, resulting in a favourable variance. This assumes that the provision required in 22/23 will be similar to the 21/22 provision. 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
Page 4
WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 July 2022 PERIOD 4 Budget Forecast Spend RAG Status £000 £000 £000 % VOID LOSS 857 1,549 692 81% 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 start to decrease significantly over the next few month 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. A year end overspend is anticipated 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 numbers continue to be high . Budget Details Variance Analysis