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Agenda Item No. 4

 

The Vale of Glamorgan Council

 

Learning and Culture Scrutiny Committee: 20th June 2016

 

Report of the Director of Learning and Skills

 

Revenue and Capital Monitoring for the period 1st April to 30th  April 2016

 

Purpose of the Report

  1. To bring to the attention of this Scrutiny Committee, the position in respect of revenue and capital expenditure for the period 1st April to 30th April 2016 regarding those revenue and capital budgets, which form this Committee's remit.

Recommendation

It is recommended that :-

  1. Scrutiny Committee note the position with regard to the 2016/17 revenue and capital monitoring.

Reason for the Recommendation

  1. That members are aware of the position with regard to the 2016/17 revenue and capital monitoring relevant to this scrutiny committee.

Background

  1. Council on the 2nd March 2016 (minute no 885 and 884 respectively) approved the Revenue and Capital Budgets for 2016/17. Reports monitoring expenditure are brought to this committee on a regular basis.
  2. Following changes to the remit of Scrutiny Committees, Equalities and Welsh Language budgets are now included in this report.

Relevant Issues and Options

Revenue

  1. The Revenue Budget and projected outturn for 2016/17 are shown in the following table. It is very early in the financial year and while the forecast is shown as a balanced budget there will be great pressure on this service in the coming year.

Learning & Culture               

Revenue Budget

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Schools

81,009

81,009

0

School Improvement & Inclusion

3,638

3,638

0

Service Strategy & Regulation

250

250

0

Strategic & Resources

9,174

9,174

0

Children & Young People's Partnership

275

275

 

Total Education and Schools

94,346

94,346

0

Libraries

2,051

2,051

0

Youth Service

1,081

1,081

0

Adult Community Education

277

277

0

Catering

1,489

1,489

0

Art Development

115

115

0

Equalities & Welsh Language

203

203

 

TOTAL

99,562

99,562

0

       
  1. A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.
  2. Schools - The delegated budget relating to schools is expected to balance as any under/over spend is carried forward by schools.
  3. School Improvement & Inclusion - There continues to be significant pressure on the Inclusion budget with regards to Inter Authority Recoupment income. There has been an increased demand for Vale pupils requiring placements in Ysgol Y Deri, resulting in fewer placements being available for other authorities to purchase. Similarly, there is increased pressure on the budget for placements in independent schools and with other authorities as there are a number of pupils with significant needs that cannot be met by Ysgol Y Deri. There was an adverse variance in this area during 2015/16 and work is being undertaken to forecast the likely impact of these pressures on net expenditure in 2016/17, however, at this early stage of the year the level is difficult to predict. It should be noted that this is a volatile budget and the Directorate continues to review this service as part of the longer term Reshaping Services agenda.
  4. Provision has been made within the budget to make unsupported borrowing debt repayments in relation to the Schools Investment Strategy of £698k per annum and any favourable variance on debt repayments will be directed into the Schools Investment Strategy.
  5. Libraries - The Libraries service is projecting to outturn at budget, however, there is some pressure on this budget due to a recent application for judicial review. Any costs relating to the implementation of the Libraries Review will be funded from the Libraries Reserve.
  6. Adult Community Learning (ACL) - It is anticipated that the Adult and Community Learning Service will outturn at budget after a £37k transfer from the ACL reserve. This transfer is required to assist with new Welsh for Adults contract (£20k) and a previous years funding reduction in Schedule 2/Cardiff and Vale College Franchise (£17k).
  7. Other Services - As it is very early in the financial year, all other services are anticipated to outturn within budget.

2016/17 Savings Targets

  1. Attached at Appendix 2 is a list of savings to be achieved this year for this Committee. At this early stage of the year, services are working towards fully achieving their savings targets however updates will be provided to members during the year.

Capital

  1. Appendix 3 details financial progress on the Capital Programme as at 30th April 2016.
  2. The monitoring report shows actual expenditure for the month of April 2016 and is matched by a similar figure in the profile to date column, thereby showing no variances. Profiled expenditure has been requested from Project Managers and will be updated in the next report.
  3. Members should be aware that Appendix 3 does not include requests for unspent committed expenditure to be slipped from 2015/16 into 2016/17. A request for this slippage will be included in the Closing Down report presented to a future Cabinet meeting.
  4. Appendix 4 provides non-financial information on capital construction schemes with a budget of over £100k. Where a budget shown in Appendix 3 is more than £100k but is made up of several schemes that individually are less than £100k, the scheme is not included in Appendix 4.
  5. For all schemes where it is evident that the full year's budget will not be spent during the year, the relevant officers are required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.
  6. St Andrews Major Church In Wales Primary Fencing - An Estyn report has raised safeguarding issues at this school and to rectify this issue new fencing is required. It has therefore been requested to increase the 2016/17 capital programme by £66k to be funded from the Schools Rationalisation reserve.
  7. Gwenfo Primary Expansion - Emergency Powers have been used to increase this scheme by £70k, to be funded from the School Investment Strategy reserve. The extra budget is required as a result of the tenders received being over budget.

Resource Implications (Financial and Employment)

  1. As detailed in the body of the report

Sustainability and Climate Change Implications

  1. As detailed in the body of the report

Legal Implications (to Include Human Rights Implications)

  1. There are no legal implications

Crime and Disorder Implications

  1. There are no crime and disorder implications

Equal Opportunities Implications (to include Welsh Language issues)

  1. There are no equal opportunity implications

Corporate/Service Objectives

  1. Effective monitoring assists in the provision of accurate and timely information to officers and members and in particular allows services to better manage their resources

Policy Framework and Budget

  1. The report is in accordance with the Policy Framework and Budget

Consultation (including Ward Member Consultation)

  1. The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation

Background Papers

None

Contact Officer

Carolyn Michael (Operational Manager - Accountancy) (01446 709778)

Officers Consulted

Head of Strategy, Community Learning & Resources

Responsible Officer:

Jennifer Hill

Director of Learning and Skills

 

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