Issue - meetings

The Portfolio Holder for Corporate Governance, Finance and Resources to submit a report setting out the provisional year end position for the Housing Revenue Account (HRA), subject to External Audit approval, for 2021-22 and providing information on the Council’s balances and reserves.

Cabinet

(1)  NOTED the provisional year end position variations to the 2021-22 approved year end position and the resultant effect on the Council’s balances and reserves for the HRA for both revenue and capital.

Dawn Garton, Director for Corporate Services introduced the report, the purpose of which was to set out the provisional year end position for the Housing Revenue Account (HRA), subject to External Audit approval, for 2021-22 and providing information on the Council’s balances and reserves.

Mrs Garton confirmed that the accounts for 2021-22 had been published in draft form but notification of the date of the audit was yet to be given.  The figures in the report remained provisional until after that audit had been conducted and finalised.  Regulations this year required the audited accounts to be published by a later date (end of November).  However, the date had not been agreed for the audit of those accounts.  The audit for the 2020-21 accounts was now completing had not been published as audited accounts in their final form.  This was a national issue, as a result of External Audit resources and was a challenge for the Council.

Mrs Garton advised that the report detailed comparison of the previous provisional outcome with the original budget, which was set at the rent setting meeting in February 2021, as well as the latest approved estimate, which incorporated in year approvals and budget holder comments on significant variations.  The overall position was an underspend against the approved budget of £695k, £150k of which would be carried forward into the new financial year.  The underspend was primarily due to a large underspend on repairs and maintenance and also vacancies and that were offset by reduced income from voids.  Concerning capital and revenue, the budget was based on the Council’s Housing Improvement Programme.  However, the budget for the next financial year (2023-24) would be based on the new Asset Management Plan, following approval of the Business Plan at Council later this month.  This would provide a more accurate position financially and more accurate financial planning, which could be monitored and performance assessed.

The Portfolio Holder for Corporate Governance, Finance and Resources, Councillor Ronnie de Burle commented that this was a comprehensive and wide ranging report and he highlighted the following:

·         Moving forward, the HRA Business Plan and Affordable Housing Development Plan would inform both revenue and capital budgets.

·         This was an important step in seeing the end of a budget based on the Housing Improvement Plan (HIP) and the start of true financial planning based on quantifiable data from stock condition surveys and tenants consultations.

·         The provisional outturn and accounts were backward looking and it was pleasing to see an underspend and that the reserves and balances had been boosted.  There were opportunities offered by the more informed and accurate budgets, in which the financial and business performance can be more accurately assessed.

Cabinet

(1)  NOTED the provisional year end position variations to the 2021-22 approved year end position and the resultant effect on the Council’s balances and reserves for the HRA for both revenue and capital.

Reason for Recommendations:

It is important that Cabinet are aware of the financial position of the HRA in order to  ...  view the full minutes text for item 17