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 6th April 2006
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TITLE: Housing General Fund Budget monitoring report to 21st March 2006
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RECOMMENDATIONS: That the lead member for Housing notes the position of the
Housing General Fund as at the 21st March 2006.
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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 This report identifies the position of the Housing General Fund for
the year to the 21st March, and includes the final salary payments
for 2005/06; a summary of the income and expenditure for each
cost centre is listed in Appendix 1.
a) Staffing Issues - New posts created by the Departmental
restructure continue to be filled, however, a small number of posts
remain unfilled. However, it should be noted that the 2006/07
budget incorporates a 3.5% vacancy provision, which these posts
will contribute to if they remain unfilled into 2006/07.
A much smaller number of agency staff invoices were processed
during February, with a total of £14,000 worth of invoices being
paid during the month. This is a significant reduction on previous
months expenditure.
b) Housing Management Team - The overspend recorded against
the Housing Management Team has resulted from consultant costs
exceeding their budget provision; the cost of placing recruitment
adverts for senior managers has also contributed to the overspend.
c) Housing Market Renewal Secretariat – Expenditure shown here
relates to the secretariat function for the Housing Market Renewal
Pathfinder.
d) Homelessness - Short Term Accommodation and Prevention –
The relatively low level of bed and breakfast use reported in
previous Housing General Fund monitoring reports has continued; 4
households and 8 single persons were placed in temporary
accommodation during February. At the time of writing (21 st March)
there are 11 families and 11 single people housed in temporary
accommodation.
As previously reported, there is a risk of increased expenditure on
temporary accommodation as a result of the changes in the private
rented sector in Agecroft. At this point, it is anticipated that the
costs will hit the 2006/07 budget provision rather than the 2005/06
provision due to appeals processes. For this reason, it is intended
to earmark any underspends on temporary accommodation/landlord
incentives in 2005/06 for use in supporting the 2006/07 temporary
accommodation budget. This approach was considered and
agreed by the Budget and Audit Scrutiny Committee on 1st March
2006.
Close monitoring of expenditure in the area will therefore continue
in the final month of the financial year, and throughout 2006/07.
e) Petrie Court Homeless Persons Unit – As reported in last months
General Fund Monitoring Report the cost of rent rebates payable
has exceeded the budget provision for the year, the overspend
shown by the section is a result of this. However, as the full amount
of rent rebates paid out can be claimed back, the overspend will not
adversely affect the Housing General Fund.
f) 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.
g) Asylum Seekers - Negotiations between the North-West
Consortia’s partners for the Asylum Seeker Dispersal Contract have
now reached the final stage with the outcome that Salford City
Council has agreed to take part in the contract in 2006/07. Any
remaining funds from 2005/06 must be used for asylum related
activities, as was recommended in the recent audit of this area.
It should be noted, that the revised dispersal contract will require
significant savings to be made on current levels of expenditure
during 2006/07. Additional savings would be required if the Council
is to remain in the contract in 2007/08 and future years.
2
Conclusion
2.1 Although the figures quoted in appendix 1 include the final salary
payment for 2005/06, it should be noted that the expenditure totals
are not finalised. However, it is anticipated that Housing General
Fund expenditure for 2005/06 will remain within the agreed budget.
3
Recommendations
3.1 That the Lead Member for Housing notes the position of the Housing
General Fund as at the 21st March 2006.
APPENDIX 1
Housing General Fund Budget Position to 21st March 2006
Team
Housing Management Team
Housing Management Support Team
MANAGEMENT Sub-total
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
STRATEGY Sub-total
Annual Budget Budget to date Spend to date
Variation
£
493,995
133,637
627,632
£
458,146
133,637
591,783
£
478,179
107,024
585,203
£
-20,033
26,613
6,580
442,885
340,635
771,214
337,569
319,803
790,000
484,611
239,081
105,000
3,830,798
446,934
352,330
733,887
285,569
272,275
790,000
435,611
239,081
92,000
3,647,687
441,339
350,302
729,200
280,640
267,397
790,211
409,136
231,385
91,358
3,590,968
5,595
2,028
4,687
4,929
4,878
-211
26,475
7,696
642
56,719
Homelessness - Operational
Homelessness - Short term
Accommodation
Homelessness - Prevention
Petrie court HPU
Belmont HPU
Asylum Seekers
Projects Team
Home Improvements Agency
Development Team
SUPPORT Sub-total
579,151
579,151
558,849
20,302
370,000
200,000
-1,885
-72,951
-100,920
265,410
-55,589
294,913
1,478,129
370,000
200,000
31,365
13,449
-92,510
265,410
-8,500
263,913
1,622,278
248,913
50,094
41,942
-9,831
-92,470
264,959
-21,927
246,720
1,287,249
121,087
149,906
-10,577
23,280
-40
451
13,427
17,193
335,029
Rent Allowances
Discretionary Rent Rebates
Housing Benefit
Transfer from HRA
Rent Rebates
Central Recharge
Supporting People
OTHER Sub-total
-239,560
72,682
975,510
-460,000
-212,767
312,994
552,000
1,000,859
Recharge to HMRF
Recharge to HRA
Recharge to Capital
INCOME Sub-total
-1,648,167
-2,385,251
-1,200,000
-5,233,418
0
0
0
0
0
0
0
0
0
0
0
0
HGF - Total
1,704,000
5,861,748
5,463,420
398,328
Monitored by Corporate Services
0
0
0
0
0
0
0
0
0
Monitored by Corporate Services
0
0
0
Monitored in dedicated Supporting People report
0
0
0