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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 12/06/2007
ANNUAL ACCOUNTS 2006/07 - CAPITAL PROGRAMME OUTTURN
(GENERAL FUND, HOUSING REVENUE ACCOUNT AND
LA SOCIAL HOUSING GRANT)



Summary & Purpose
This report presents the outturn for the Council’s 2006/07 Capital Programme. It also seeks approval for the financing proposals, determination in respect of the Minimum Revenue Provision and a proposal to add slippage from the 2006/07 Programme to the 2007/08 Programme.

APPENDIX B.2.
Waverley Borough Council

EXECUTIVe - 12TH jUNE 2007

Title:
ANNUAL ACCOUNTS 2006/07
CAPITAL PROGRAMME OUTTURN
(GENERAL FUND, HOUSING REVENUE ACCOUNT AND
LA SOCIAL HOUSING GRANT)
[Wards Affected: All]

Summary and purpose:

This report presents the outturn for the Council’s 2006/07 Capital Programme. It also seeks approval for the financing proposals, determination in respect of the Minimum Revenue Provision and a proposal to add slippage from the 2006/07 Programme to the 2007/08 Programme.

Environmental implications:

There are no direct environmental implications as a result of the recommendation of this report. However, the outturn includes services that have very significant positive environmental benefits.

Social / community implications:

There are no direct social/community implications as a result of the recommendation of this report. However, the outturn includes services that do have very significant positive social/community benefits.

E-Government implications:

The outturn contains budgets to enable the delivery of Waverley’s E-Government Strategy.

Resource and legal implications:

There are no direct legal implications as a result of the recommendation of this report. Resource implications are contained throughout the report.

Introduction

1. This report presents the outturn for the Council’s 2006/07 Capital Programme. It also seeks approval for the financing proposals, determination in respect of the Minimum Revenue Provision and a proposal to add slippage from the 2006/07 Programme to the 2007/08 Programme.

2. Details of the 2006/07 Capital Programme Outturn, together with the proposed slippage of budgets from 2006/07 to 2007/08 are detailed at Annexe 1. The financing proposals are summarised in the report.


General Fund Capital Programme

3. The original approved Programme for 2006/07 was 4,501,000; to which was added slippage from 2005/06 of 1,082,000 and supplementary approvals during the year of 80,000 for Recycling bring-site improvements and 34,000 for Godalming Leisure Provision consultancy work. This resulted in a total approved Programme for the year of 5,697,000. 4. However, in setting the Programme for 2007/08 and beyond slippage and re-phasing of some 1.2m from 2006/07 was taken into account, leaving a total budget at the year-end of 4,430,500. Actual expenditure in the year was 2,992,224, with slippage requests totalling 1,448,000.

5. External funding amounting to 52,400 has been secured during the year to enable extra work to be carried out beyond the originally approved budgets. This has been taken into account in calculating the amount of slippage carried forward to 2007/08, as indicated at Annexe 1.

6. The following table analysis the General Fund Capital Programme movements during the year:
Social Housing Grant

7. During the year the Council enabled two DIYSO schemes to be undertaken. Affordable housing was also provided at the Godalming College development, but as extra funding was secured from the Housing Corporation the Council’s contribution was not required. Slippage is not required, as Social Housing funding is set-aside for this purpose within Waverley’s Financial Strategy.

Housing Revenue Account Capital Programme 8. Total capital expenditure in the year was 5,359,633 against an overall capital budget of 6,264,200. In the year 1m was spent on central heating upgrades that contribute towards decent homes in Waverley and in excess of 1m on structural work and major voids. Spending in other areas was disappointingly slow, often due to resourcing difficulties that are now largely resolved. For this reason there is a substantial amount of slippage for which approval is sought. This will enable the 2006/07 Programme to be completed alongside the approved 2007/08 Capital Programme.

Original Approved Programme6,014,200
Supplementary Approval (decent homes work) 250,000
Total Approved Programme6,264,200
LESS
Expenditure in year5,359,633
904,567
LESS
Slippage 836,000
Net Savings 68,567

9. The main areas of slippage are as follows; 10. The Programme was funded from the Major Repairs Allowance of 3,487,232, a revenue contribution of 256,950 and capital receipts of 1,615,451.

Financing

11. The financial resources available were as follows: -

(a) Usable capital receipts; (c) other external funding;
(d) the Major Repairs Allowance; and
(e) any revenue resources, including the Revenue Reserve Fund, the Capital Fund, the Partnership-Funding Provision and the Vehicle Renewals Fund, as well as direct revenue contributions.

12. The Council's total Capital Programme expenditure amounted to 8,527,234, which has been financed as follows: -

Use of Capital Receipts
2,221,069
Use of Revenue Reserve Fund
1,635,994
Use of Godalming Leisure Fund
47,280
Use of Vehicle Renewals Fund
15,086
Specific Grants and Contributions
563,980
Partnership Funding Provision
184,435
Major Repairs Allocation
3,487,232
Revenue Contribution from HRA
256,950
Revenue Contributions from General Fund
115,208
8,527,234

Use of Capital Receipts

13. After allowing for the funding of schemes from other sources, there remained a balance of 1,615,451 Housing Revenue Account schemes to be funded from Housing Capital Receipts. Housing Capital Receipts have also been used to finance Social Housing Grant (DIYSO) at 175,376. General Fund Capital Receipts have been used to finance House Renovation Grants (240,088), the East Street and Riverside projects (190,154).

General Fund Slippage

14. In addition to the Slippage and re-phasing already taken into account in setting the 2007/08 Programme, further Slippage of 1,448,000 has occurred on specific General Fund schemes and there are, therefore, recommendations for this to be added to the Capital Programme for 2007/08. Some slippage is usual with any capital programme, but the level of slippage into 2007/08 is unacceptably high, especially in view of the extent of previous rephasing. The major areas of slippage have been brought about by a number of factors as detailed below:

a total of 188,000 of Partnership Funding and other grants, the timing of which is outside of Waverley’s control. substantial slippage in excess of 500,000 within the Leisure and Culture Portfolio, with the majority of this relating to Farnham Sports Centre and Godalming Leisure Centre pending the letting of the 15-year contract and to Playground Replacement caused by major staffing absences. Revised proposals for delivery in 2007/08 have already been presented to and agreed by Members. 18,700 expenditure on the Museum of Farnham Garden Gallery project was incurred in 2006/07 in advance of the 2007/08 Programme, which will be adjusted accordingly. Significant slippage of 192,000 in the area of Electronic Government for Customer Service. Slippage of 339,000 from 2005/06 led to a considerable increase to the planned workload in 2006/07. The Council continues to meet Government requirements.

15. Officers have taken initial action to progress the Capital Programme in 2007/08 by:

(i) employing an external company to oversee playground equipment replacement;
(ii) more detailed regular capital monitoring meetings; and
(iii) investigating capital monitoring software to assist with capital spending. Recommendation

It is recommended that:-

1. the financing proposals for the 2006/07 financial year summarised in paragraph 11 be approved;

2. slippage totalling 1,448,000, as detailed in Annexe 1, from the 2006/07 General Fund Capital Programme to the 2007/08 General Fund Capital Programme be approved;

3. slippage totalling 836,000, as detailed in Annexe 1, from the 2006/07 Housing Revenue Account Capital Programme to the 2007/08 Housing Revenue Account Capital Programme be approved; and

4. the actions taken by officers to improve the delivery of the 2007/08 Capital Programme in the year be noted.

Background Papers (DoF)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

CONTACT OFFICER:

Name: Brian Long Telephone: 01483 523253
E-mail: blong@waverley.gov.uk



Comms/exec/2007-08/014