Agenda and draft minutes

Consideration was given to a report presented by the Business and Commercial Programme Manager, which represented the indicative outturn position for the 2013/14 Capital Programme.

As at the end of Period 9 (December, 2013), total spend on the HIP was £14,164,576M compared to a budget provision of £16,798,595M, an underspend of £2,634,019 (-15.7% variance).

The report submitted provided details of savings and slippage on the individual schemes of work with the overall programme and highlighted the fact that the resources not drawn down in 2013/14 would be carried forward into next year.

Further information was provided on:-

Total Capital Works to Properties

Fair Access to All

Regeneration/Neighbourhood Renewal – Private and Public Sector

Other Public Sector

Savings and slippages identified were primarily across schemes funded through the Major Repairs Allowance and would be carried forward into future years. 

Discussion ensued on the key issues that mitigation work was being undertaken by the Project Teams.

Resolved:-  That the spend and forecast position to the end of Period 9 (November 2013) be noted.

Consideration was given to a report presented by the Finance Manager, Neighbourhoods and Adult Services, in relation to the budget monitoring and financial forecast for the Neighbourhoods General Fund within the Neighbourhoods and Adult Services Directorate to 31st March, 2014, based on actual income and expenditure for the period ending December, 2013.

The latest forecast showed an overall underspend of £133,000 against an approved net revenue budget of £2.463M as follows:-

Strategic Housing and Investment Service (+£10k)

-          Lower than expected staff turnover against budget

Housing Options (-£39k)

-          Projected underspend including a projected underspend on the Dispersed Units Trading Account

-          Small surplus within the Private Sector Adaptations Service as a result of increased fee income

-          Projected overspend on the Key Choices Property Management Service as a result of lower than anticipated income

Housing and Communities (-£56k)

-          Projected underspends within Area Assemblies and Supplies and Services as a result of the Council-wide moratorium on non-essential spend

-          Partially reduced by a small overspend on Anti-Social Behaviour due to lower than expected staff turnover

-          Small underspend within Community Safety Unit as a result of a recent vacancy

-          Underspend also within Community Leadership Fund

Central (-£8k)

-          Small underspend due to savings on Supplies and Services

Business Regulation (-£34k)

-          Business Regulation was projecting an underspend together with pressures on staffing costs within Health and Safety, Food and Drugs and Animal Health budgets

-          Offset by savings within Trading Standards due to continued vacant posts

-          Projected small underspend within Licensing due to increased income relating to the new Scrap Metal Dealer licences

-          Bereavement Services projecting an underspend as a result of lower than forecast costs relating to repairs and maintenance

Safer Neighbourhoods (-6k)

-          Savings within Community Protection through vacancy management and as a result of the moratorium on non-essential spend

-          Partly reduced by a small remaining pressure on income due to reduced Environmental Protection Act applications

-          Statutory health and safety work on landfill sites resulting in a forecast overspend

Consultancy spend to date was £46,808 in respect of data analysis relating to Green Deal Energy Efficient projects which is grant funded. There had been no spend on Agency within Neighbourhoods’ General Fund budgets.

Resolved:- That the report be received and the latest financial projection against budget for 2013/14 noted.

Consideration was given to a report presented by the Finance Manager, Neighbourhood and Adult Services, on the Housing Revenue Account which was forecasting an outturn on budget with a transfer from working balances (HRA reserves) of £1.327M, a reduction of £1.272M against the approved budget.

Appendix A of the report provided the Budget Operating Statement for 2013/14 showing the various income and expenditure budget lines which made up the net cost of delivering the Service.  The latest forecast net cost of Service was £7.085M, together with Revenue contribution to Capital costs and interest received, would result in an overall deficit of £1.327M to be transferred from Working Balances.

Expenditure

Based upon expenditure and commitments to date, total expenditure was forecast to outturn at £72.780M compared to a budget provision of £73.091M, a decrease in spend of £311K.  The main variations were:-

Contributions to Housing Repairs

-          Repairs and Maintenance – Currently forecast to budget on budget at £17.966M.  The Empty Homes budget was difficult to forecast given it being a responsive service.  At the end of November there had been 174 more completions than budgeted, the main reason being the impact of the Welfare Reform as more tenants requested a transfer to smaller properties.  Within the Housing Repairs budgets there was an overall forecast overspend on Empty Homes due to increase in minor voids offset by a forecast underspend on overheads within revenue schemes.

Supervision and Management

-          Forecast to outturn at £19.954M, overall underspend of £111k.  The main reason for the variation was the transfer to the Furnished Homes reserve due to additional income as more clients used the Scheme reduced by lower than expected staff turnover including delays in implementing the review of structures across a number of teams

Income

-          Total forecast income collectable was £79.865M, an increase of £961k above budget

-          Dwelling rental income was projected to over-recover by £135k as well as non-dwelling rents by £6k due to additional income from garage sites

-          Income from charges for services and facilities were forecasting an outturn of £4.3M, an over-recovery of £698k mainly as a result of additional income on Furnished Homes due to increase in the number of clients, additional fee income from Right to Buy sales plus one off income from prior year charges for District Heating.   However, there was a forecast under-recovery of income from clients using Sheltered Neighbourhood Centres services as tenants opted out of the laundry charge and more than the anticipated level of voids on District Heating Schemes resulting in a slight under-recovery of income

-          Other fees and charges were forecasting an over-recovery of income of £121k related to additional unbudgeted income in respect of the sale of tenants contents insurance, recovery of Court costs, income from second hand furniture and income from utility companies for the use of solar panels

Resolved:-  That the latest financial projection against budget for 2013/14 be noted.