September 2013 - Bron Afon

to the DWP project being extended until December 2013 instead of June 2013 which has
resulted in higher income receivable.
8 Support services (Appendix 2)
8.1 Support service and other includes the central costs of IT, HR and finance as well as office
running costs. It also includes interest receivable and payable and depreciation.
8.2 Expenditure within Support Services is currently £0.2m underspent, mainly due to legal and
professional fees, IT costs and Insurance. However, the forecast for these is currently
anticipated to be in line with the budget. All variances have been explained in the notes of
Appendix 2.
8.3 Interest payable during the first quarter is £0.25m less than the budget and is forecast to be
£0.6m less than budget due to the budget being based on higher loan balances.
9 Property (Appendix 3)
9.1 Net Property revenue expenditure totals £2.688m, £2.051m of which relates to traditional
revenue repairs such as responsive, void and cyclical repairs. Property expenditure is
underspent during the period by £0.4m. This is primarily due to:
• £118K underspend within traditional property revenue expenditure where less has
been spent on responsive repairs and related assets, offsetting higher spends on cyclical
and void repairs and minor adaptations. It should be noted that a significant contingency is
held in the revenue budget and that this is being used to carry out more routine planned
and capital works to help reduce demand for repairs. Please see notes 1 – 4 within
Appendix 2 for the detail behind the variances.
• Central property costs – These costs are currently underspent by £172K and this
rate of underspend is expected to carry through to the year end. The detail behind this
variance is in note 8 of Appendix 2.
10 Capital (Appendix 3 and 7)
10.1 The net capital property spend (Appendix 3) during the period is higher than the budget by
£0.7m. This is expected to increase to an overspend of £0.8m at the year end. This
overspend is to be funded from the year end forecast underspend of £0.8m within property
revenue expenditure. Notes 10 and 11 within Appendix 3 provide explanations for
variances within the capital spend. The revenue budget included a contingency which is
intended for use in mitigating risk of changes in responsive demand with an expectation of
reducing demand. It may be used on either revenue activities or capital activity. As the
contingency is held in a revenue budget, expenditure on capital items has resulted in a
variance.
10.2 Appendix 7 gives a detailed breakdown of Other Fixed Asset spend compared to budget.
£0.8m is anticipated to be spent by the year end on computer software. This is
predominantly for the development of the new housing management system using a
Customer Relationship Management system (CRM). The grounds maintenance team were
anticipating the purchase of equipment for grass cutting when they set the budget,
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