Part 1 (Open to the public)
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REPORT OF THE STRATEGIC DIRECTOR OF HOUSING AND PLANNING
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TO THE LEAD MEMBER FOR HOUSING
ON 3rd November 2005
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TITLE: Housing General Fund Budget monitoring report to 30th September 2005
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RECOMMENDATIONS: That the lead member for Housing notes the position of the
Housing General Fund as at the 30th September 2005 and receives further reports
throughout the year.
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EXECUTIVE SUMMARY: This report details the current position for the 2005/06
Housing General Fund Budget.
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BACKGROUND DOCUMENTS: (Available for public inspection)
Budget Control File. Financial Information from SAP.
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ASSESSMENT OF RISK: Failure to monitor the Budget and instigate appropriate
actions based on findings can lead to significant over/underspends in 2005/06 that
will affect the financial health of the City Council.
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SOURCE OF FUNDING: Not applicable as the report is commenting on the financial
position of the Housing General Fund.
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LEGAL IMPLICATIONS: Not required for this report.
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COMMUNICATION IMPLICATIONS: Not required for this report.
PROPERTY: Not required for this report.
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HUMAN RESOURCES: Not required for this report.
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CONTACT OFFICER: Simon Ashworth (0161 922 8793)
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WARD(S) TO WHICH REPORT RELATE(S): All
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KEY COUNCIL POLICIES: City Council Revenue Budget 2005/06
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DETAILS: (Continued Overleaf)
1
Housing General Fund Budget 2005/06
1.1 At the time of writing, the restructure of the Housing Division of the
Housing and Planning Services Directorate was being
implemented. The restructure has brought about the need for the
formation of three new teams, and changes to the staffing
numbers and areas of responsibility for the remaining teams. The
General Fund budget is being recast, in consultation with team
managers; to ensure that team budgets reflect changes in each
teams establishment and operational need.
1.2 As has been stated in previous Housing General Fund monitoring
reports, each team leader is responsible for the management of
their team budget, and they receive a monthly monitoring report to
assist them in this; a summary of the General Fund costs up to the
30th September are listed in Appendix 1.
2
Staffing
2.1 As mentioned above, a large number of changes have taken place
with regard to the Divisions staffing structure. In the period since the
last monitoring report, a number of new appointments have been
made and the process of reallocating existing staff to fill vacant posts
in the new structure has commenced.
2.2 Although a number of staffing vacancies have been filled over the
past month, and recruitment is ongoing to fill remaining vacant
posts in the structure, Housing Services expenditure on agency
staff in September increased to £45,000 from £26,000 the previous
month. With current vacancy levels it will be impossible to sustain
this level of expenditure on agency staff and remain within the
Divisions staffing budget. Sections where the use of agency staff is
being closely monitored in an effort to reduce pressure on the
budget include: 


The Homelessness Section – the section has used agency staff
to cover for vacancies in their establishment, it is anticipated
that the use of agency staff will cease from the start of
November when the majority of vacancies will have been filled.
As mentioned in previous General Fund monitoring reports, a
staffing issue at Petrie Court Homeless Persons Unit has led to
the Unit exceeding it staffing budget for the period to the end of
September.
The levels of expenditure on agency staff at Belmont H.P.U. has
resulted in an overspend against the staffing budget to the end
of September; it has been agreed that Belmont will minimise
future use of agency staff.
3
Other Issues
3.1 Homelessness - Short Term Accommodation and Prevention –
Whilst a significant increase in expenditure was reported in the
August monitoring report, the number of people in bed and breakfast
accommodation has now reduced and currently there is only one
person in this type of accommodation. The fluctuating nature of the
demand for homelessness services (with the winter traditionally being
the busiest time for the Homelessness Section) necessitates that
close monitoring of the area will continue throughout the financial
year.
3.2 Housing Market Renewal Pathfinder – Expenditure shown here
relates to the secretariat function for the Housing Market Renewal
Pathfinder, HMRF income will be received during the financial year to
cover this expenditure.
3.3 Supporting People – As stated in previous General Fund monitoring
reports, a separate report monitoring the Supporting People
programme will be provided on a monthly basis along with the regular
budget monitoring reports issued to Housing Lead Member.
3.4 Asylum Contract – Income has now been received for the first quarter
of 2005/06 and we are currently showing a shortfall against our
income budgets. However, this shortfall should be matched by a
reduction in expenditure. NPHL currently manage expenditure
budgets and an invoice is awaited for the first quarter’s expenditure.
3.5 Marketing – As mentioned in last months General Fund Monitoring
Report, the need for a dedicated Housing Services marketing budget
has been identified, the proposed budget requirement for the service
has been set at £180,000. At present there is no budget provision for
this expenditure, this issue should be further considered in drawing
together the approximate budget.
4
Conclusion
4.1 At present, there are a number of existing budget areas (highlighted
above), which are causing concern. However, it is anticipated that
with ongoing monitoring the Divisions expenditure will remain within
the agreed budget.
5
Recommendations
5.1 That the Lead Member for Housing notes the report and receives
regular reports for the remainder of the financial year.
APPENDIX 1
HOUSING GENERAL FUND BUDGET POSITION TO 30th September 2005
Team
Annual Budget Budget to date
Spend to date
Variation
£
537,116
160,758
697,874
£
246,617
6,965
253,582
£
247,821
7,087
254,908
£
-1,205
-122
-1,326
Market Renewal Team A
Market Renewal Team B
Market Support
Strategy & Consultation
Strategy & Partnering
Options Delivery Team
Admin and Facilities Management
Performance Team
HMR Secretariat
Sub-total
460,133
336,866
743,164
327,792
373,095
480,583
431,079
251,663
0
3,404,375
261,657
183,393
387,681
27,316
189,212
198,349
242,279
105,864
42,241
1,637,991
259,134
138,977
386,578
20,724
197,661
188,732
236,550
98,298
42,241
1,568,895
2,523
44,416
1,103
6,592
-8,449
9,617
5,729
7,566
0
69,096
Homelessness - Operational
Homelessness - Short term Accom
Homelessness - Prevention
Petrie court HPU
Belmont HPU
Asylum Seekers
Projects Team
Home Improvements Agency
Development Team
Sub-total
537,756
370,000
200,000
-57,852
-93,532
-148,450
356,328
0
334,806
1,499,056
268,878
165,000
75,000
-10,951
-3,541
-332,405
29,694
0
104,740
296,415
280,637
144,175
0
69
-6,234
-317809
32,189
-5,458
98,346
225,915
-11,759
20,825
75,000
-11,020
2,693
-14,596
-2,495
5,458
6,394
70,500
Rent Allowances
-239,560
Housing Management Team
Housing Management Support Team
Sub-total
Monitored by Corporate Services
0
0
0
Discretionary Rent Rebates
72,682
0
0
Housing Benefit
975,510
0
0
Transfer from HRA
Rent Rebates
Supporting People
See below
Sub-total
-460,000
-212,767
493,405
117,420
746,690
Recharge to HMRF
Recharge to HRA
Recharge to Capital
Other Recharge
Sub-total
-1,152,000
-2,055,000
-1,000,000
-406,995
-4,613,995
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
HGF - Total
1,734,000
2,187,988
2,049,718
138,270
0
0
Monitored by Corporate Services
Monitored in dedicated Supporting People report
Monitored by Corporate Services
0
0
0