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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 09/07/2002
Annual Accounts 2001/02 Overall Expected Revenue Outturn (General Fund, Housing Revenue Account and Collection Fund)



This report provides details of the 2001/02 General Fund expected revenue outturn, the 2001/02 expected revenue outturn for the Housing Revenue Account and the outturn for the Collection Fund Revenue Account.
APPENDIX Q

WAVERLEY BOROUGH COUNCIL

EXECUTIVE - 9TH JULY 2002

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Title:
ANNUAL ACCOUNTS 2001/02
OVERALL EXPECTED REVENUE OUTTURN
(GENERAL FUND, HOUSING REVENUE ACCOUNT AND COLLECTION FUND)

[Wards Affected: N/A]
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Summary and Purpose

This report provides details of the 2001/02 General Fund expected revenue outturn, the 2001/02 expected revenue outturn for the Housing Revenue Account and the outturn for the Collection Fund Revenue Account.
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Introduction

1. This report provides details of the 2001/02 General Fund expected revenue outturn position and the expected revenue outturn for each portfolio, together with explanations of the major variations from the revised estimate. The expected revenue outturn for the Housing Revenue Account with explanations of the major variations from the revised estimate and details of the outturn for the Collection Fund Revenue Account are also provided.

2. The outturn has been prepared in line with the District Auditor’s requirement that creditors, to take expenditure back into 2001/02, can only be raised for goods or services received in the 2001/02 financial year for which the invoice could not be processed until 2002/03. This request has been strictly adhered to and consequently for certain areas where expenditure was delayed due to particular circumstances, slippage into 2002/03 has been requested.

3. The General Fund Revenue Summary and the portfolios are shown at Annexe 1. The Housing Revenue Account summary and detailed sheets are shown at Annexe 2. The Collection Fund Revenue Account is shown at Annexe 3. Slippage from 2001/02 to 2002/03 requested on the General Fund is listed at Annexe 4.

Annual Accounts 2001/02 Expected Revenue Outturn

Overall General Fund Position 4. The expected outturn for General Fund services is 11,052,830, which compares favourably with the original net committee requirement of 11,445,000 and revised net committee requirement of 11,293,420. The use of the General Fund working balance is expected to be 87,830 compared with the Original Estimate of 300,000. Slippage of 103,730 from 2001/02 to 2002/03 is required in certain areas and this is explained later in the report.



5. Variations from the revised estimate figures are detailed below for the main service areas of each portfolio.

Corporate and Community Strategy Portfolio

6. The outturn of 2,946,837 for the various General Fund corporate services is some 168,000 less than the revised estimate of 3,114,700. Reasons for this include backdated rent income received for Industrial Sites from Sainsbury's Supermarkets Ltd following the extension of the store at Water Lane, Farnham; and the Best Value budget which achieved an underspend of some 52,000, of which slippage of 25,000 is requested for the on-going costs of 2001/02 reviews. a) Miscellaneous Properties 12,000 – works to Sicklemill were delayed due to unfavourable weather conditions.
b) Best Value 25,000 – to cover ongoing costs of 2001/02 reviews.
c) Community Safety 37,370 - funding for the Community Strategy is to be carried forward as the strategy covers the period 2002 – 2005.

Housing and Community Welfare Portfolio

7. The outturn of 1,906,543 for the various General Fund housing services is some 54,000 less than the revised estimate of 1,960,330. The contributing elements to this underspend include a decrease in net expenditure on Rent Allowances, additional income on the Central Communications service and the Community Care Service. Under the Homelessness budget, slippage is requested to carry the remainder of the Domestic Violence grant budget, amounting to 6,860, into 2002/03 to fund the Domestic Violence Outreach Worker post.

Asset Management and Human Resources Portfolio

8. The outturn of 953,153 is some 152,000 in excess of the revised estimate of 801,060. The main reason for this is increased asset charges for the central offices and locality offices due to revaluations, however, this is an internal recharge, with the additional income going to the Asset Management Revenue Account under the Corporate and Community Strategy Portfolio, so the net effect is nil.

Planning and Major Developments Portfolio

9. The expected outturn of 908,010 has exceeded the revised estimate of 889,650 by some 18,000. This is as a result of additional Legal Expenses incurred offset against a saving on printing costs for the Local Plan. The Local Plan process was delayed by the statutory process and the Plan could not be printed before the Council formally adopted it on 24th April 2002 and the period for legal challenges had passed, therefore, slippage of 19,000 is requested to cover the printing costs in 2002/03.


Environment Portfolio

10. The expected outturn of 2,428,677 shows an underspend of some 45,000 from the revised estimate of 2,473,200. The main reasons for this are additional backdated rental income from Car Parks of 15,000 and a saving on Car Park Printing costs of 15,000. Slippage of 3,500 is sought for the Car Park Strategy Implementation budget to cover commitments at the year-end falling into 2002/03. Also additional income of 15,500 was received from Waste Recycling.

Economic Development and Business Liaison Portfolio

11. The expected outturn of 313,041 is 25,500 in excess of the revised estimate of 287,500. The main reason for the overspend is the additional costs incurred for the East Street Redevelopment Scheme amounting to some 20,000.

Town and Village Liaison Portfolio

12. The expected outturn of 365,197 is close to the revised estimate of 366,760.

Culture and Leisure Portfolio

13. The expected outturn is 3,081,464 compared with the revised estimate of 3,078,790.

General Fund Summary 14. The overall result of the above transactions is that the General Fund Working Balance is expected to decrease by 87,830, from 1,950,912 at 1st April 2001 to 1,863,082 at 31st March 2002.

Housing Revenue Account (HRA)

15. This account identifies the cost of providing, managing and repairing the Council’s housing stock of some 5,300 dwellings in 2001/02. Expenditure

16. The expected shortfall in the year of 477,882 is some 30,000 more than the shortfall anticipated at revised estimate stage. This is largely due to the increased contribution to the repairs and maintenance fund as explained at points 18 and 19 below.

17. The overspend on repairs was mitigated to a certain extent by underspends in other areas. The most significant of these was within the General Supervision and Management Account where a number of relatively small underspends have resulted in an expected out-turn of 2,331,963, some 85,000 less than the revised estimate.

Repairs and Maintenance Fund

18. The fund is contained within the Housing Revenue Account and covers tenants’ routine maintenance requests, the cost of annual maintenance items (cyclical) and some residual programmed maintenance work that has not been funded from capital. The gross expenditure of 3,719,070 is 157,893 more than the revised estimate of 3,561,177.


19. It was reported at revised estimate stage that expenditure on repairs and maintenance was expected to exceed the original estimate for 2001/02 and Members agreed to increase the responsive repairs budget by 100,000 for 2001/02. However, despite only essential repairs being carried out during the last quarter of 2001/02, there has still been an overspend on repairs as noted above.

Income

20. Gross rents have decreased by some 11,000 from the revised estimate of 16,720,000 and garage rents have decreased by a similar amount from the revised estimate of 320,000.

21. It is anticipated that Exchequer Subsidy will be some 178,000 less than the revised estimate of 1,630,000 as a result of the reduced amount of benefits paid and a further reduction in the capital financing costs. As these reduced costs are also reflected in the HRA they largely offset the reduction in subsidy.

General HRA Working Balance

22. The expected outturn of all transactions within the Housing Revenue Account in the year will result in a deficit of 477,882, which is 31,692 more than the deficit of 446,190 identified in the revised estimate. As a result, the working balance has decreased from 1,768,216 at 1st April 2001 to the expected outturn of 1,290,334 at 31st March 2002. At this stage the accounts assume full recovery of costs incurred as a result of the asbestos emergency at Middlemarch, Witley which began in February 2000, however, the matter is still being negotiated by a claims adjuster and the outcome is not certain.

Collection Fund Revenue Account

23. Waverley Borough Council collects Council Tax on behalf of Surrey County Council, Surrey Police and Parish and Town Councils, and also collects National Non-Domestic Rates on behalf of Central Government. The Collection Fund revenue account reflects the statutory requirement for billing authorities, such as Waverley, to establish and maintain a separate fund for the collection and distribution of amounts due in respect of such transactions.

24. Council Tax receivable (see Annexe 3) is the amount collectable after allowing for all discounts and exemptions and, due to the large amounts involved, is sensitive to change as variations occur in the tax base. Any surplus or deficit arising on the Collection Fund, after meeting the precepts and demands of the major preceptors and Waverley Borough Council, is borne by the major preceptors and Waverley Borough Council in proportion to their demand on the Collection Fund in the year the surplus or deficit arose.

25. The transactions relating to NNDR in the Collection Fund are self-balancing. The General Fund receives an allowance, taken from the collectable amount, towards the cost of collection and the remainder is paid over to the national pool. The monies from this national pool are redistributed on a per capita basis, Waverley’s share being shown for reference on the face of the Collection Fund although the payment is made directly into the General Fund.



Recommendation

1. It is recommended that the report be received; and

2. slippage of 103,730 from 2001/02 to 2002/03 as shown at Annexe 4 to the report be approved.
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Background Papers (DoF)

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

Contact Officer: Mr B Long Telephone: 01483 523253
E-mail: blong@waverley.gov.uk

comms/executive/2002-03/081 28906