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Decision details

2014/15 Revenue and Capital Outturn, Carry Forwards and Significant Variances – HRA

Decision Maker: Executive Councillor for Housing and Homelessness

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

To approve specific revenue and capital budget carry forward requests from 2014/15 into 2015/16.

Decision:

Matter for Decision.

 

The report presented a summary of the 2014/15 outturn position (actual income and expenditure) for services within the Housing Revenue Account, compared to the current budget for the year.

 

Decision of the Executive Councillor for Housing:

 

i.     Agreed that the carry forward requests, totalling £9,272,120 as detailed in Appendix C are to be recommended to Council for approval.

ii.    Approved to carry forward net capital resources of £13,758,000 from 2014/15 to fund re-phased capital spending in the Housing Capital Investment Plan, as detailed in Appendix D and the associated notes, re-profiling investment as follows:

-      Re-phase £11,248,000 into 2015/16

-      Re-phase £2,408,000 into 2016/17

-      Re-phase £102,000 into the period post 2017/18

iii.  Recognised a delay into 2015/16 for receipt of the reminder of the Homes and Community Agency Grant for the affordable housing new build and re-development programme of £274,000.

iv.  Noted the resulting need to defer the use of £9,223,000 of revenue funding of capital expenditure into 2015/16 and 2016/17 as considered as part of the HRA revenue carry forward requests £2,059,000 of major repairs reserve funding into future years and the anticipated use of £1,993,000 of retained right to buy receipts, all of which will be required to fund the requested re-phasing in capital investment.           

 

Scrutiny Considerations.

 

The Committee received a report from the Business Manager / Principal Accountant. The report highlighted variances from budgets and provided explanations.  The report also identified requests to carry forward funding arising from certain budgets underspends into 2015/16.

 

The report also incorporated the position in relation to the Housing Capital Investment Plan with reported variances and any resulting requests for re-phasing of budgets in 2015/16 and beyond. 

 

In response to questions from the Committee, the Business Manager / Principal Accountant and the Director of Customer and Community Services stated the following:

 

i.     The Government had introduced new regulations which ring fenced Capital and Revenue accounts.  The Housing Revenue Account could only be used for housing purposes. 

ii.    There had been a delay in delivering the new build housing programme, however lessons had been learnt and going forward, the Council would have a better procedure to be able to build delays into the building programme on the next new house build.

iii.  In relation to the fencing budget there had been sufficient demand to spend the money.  Unfortunately during the past year there had been a change in contractors which created delay in work, jobs not being started by the old contractor and a lead in time to be able to recruit sub-contractors by the new contractor.               

 

The Committee:

 

Resolved unanimously to approve the recommendations 2 (a) 

 

Resolved unanimously to approve the recommendations 2 (b)–(d).

 

The Executive Councillor for Housing approved the recommendations.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted).

 

No conflicts were declared by the Executive Councillor.

 

Publication date: 31/07/2015

Date of decision: 30/06/2015