Public reports pack PDF 8 MB - Meetings, agendas, and minutes ...

During the first 8 months of the year, interest rates on lending increased
dramatically, and this is likely to result in the achievement of higher than expected
investment income for 2008/09 for both externally managed investments and inhouse
funds. However over recent months interest rates have dramatically reduced
which is likely to have an impact for 2009/10. Any additional investment income
arising in 2008/09 will be used to support the 2008/09 outturn.
3.6.8 Corporate Management
There are currently no immediate issues identified within this budget, and at this
stage it is projected that a small underspend may arise by the end of the financial
year which will be used to support the overall departmental budget.
4. Housing Revenue Account (HRA)
4.1 The Housing Revenue Account balance at the end of 2008/09 is now projected to
be £4.1million compared to the estimated closing balance of £3.5million.
The original projection included both a budgeted in-year reduction of £255k and an
adjustment of £572k to reflect the final audited 2007/08 Housing Benefits limitation
claim which resulted in additional income to the HRA as a result of a technical
review of this area.
Projected HRA Working Balance
Description £000
Opening Working Balance – 1 st April 2008 3,235
Audit adjustment to 2007/08 Housing Benefit Limitation 572
Projected Deficit Budget set in year (255)
Estimated Working Balance – 31 st March 2009 3,552
Projected In-Year Surplus / (Deficit) 2008/09 578
Forecasted Working Balance – 31 st March 2009 4,130
4.2 The income due from HRA tenants in respect of Housing Rents and service charges
are currently forecast to overachieve by £370k. This additional income is due to
higher rental income as a result of lower than budgeted Right to Buy (RTB) sales in
2008/09 and the transfer from reserves from the proportion of the 53rd week’s rent
relating to 2008/09 financial year.
4.3 Supervision and management costs are projected to overspend by £906k due to
increased energy costs of £256k, increased grounds maintenance and running
costs of £550k (including increased estate management costs). Proactive budget
management has helped to identify potential budget pressures earlier and will be
used to enable budget holders/service managers to take corrective actions to help
contain these pressures within existing resources.
4.4 The 2008/09 Housing Benefits Limitation has been recalculated to assess the
benefit in 2008/09 and an increase in HRA balances is expected of £1.2 million.
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