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Agenda Item No 8

The Vale of Glamorgan Council

 

Learning and Culture Scrutiny Committee: 18th July 2016

 

Report of the Director of Learning and Skills

 

Revenue and Capital Monitoring for the period 1st April to 31st  May 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 31st May 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

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 nos 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 for the Directorate is projecting an adverse variance of £753k at year end, however, proposals to mitigate this position are outlined in the report.

Learning & Culture               

Revenue Budget

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Schools

81,009

81,009

0

School Improvement & Inclusion

3,638

4,589

(951)

Service Strategy & Regulation

250

245

+5

Strategic & Resources

9,174

8,999

+175

Children & Young People's Partnership

275

270

+5

Total Education and Schools

94,346

95,112

(766)

Libraries

2,051

2,051

0

Youth Service

1,081

1,068

+13

Adult Community Education

277

277

0

Catering

1,489

1,489

0

Art Development

115

115

0

Equalities & Welsh Language

203

203

0

Use of Reserves/Identified Savings

0

(753)

+753

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 - The service is projected to outturn with an adverse variance of £951k, which is as a result of an adverse variance of £861k on the recoupment income budget and an adverse variance on pupil placements of £218k. This position can be partly offset by projected salary underspends of £128k which have resulted from vacant posts in the service. The service has a £2.4m recoupment income budget in respect of out of county pupil placements purchased at Ysgol y Deri. Over the last few years a trend has occurred where more out of county pupils have left Ysgol y Deri than new pupils have enrolled. In the current financial year it is anticipated that 15 out of county pupils will leave the school and only 4 new starters will enrol, in the previous financial year there were 17 leavers and 3 new out of county enrolments. There are two main reasons for this reduction in out of county pupils, firstly due to an increased demand in Vale pupils requiring a placement at Ysgol Y Deri which has resulted in a reduction in the number of places available for other Local Authorities to purchase and secondly that other Local Authorities are seeking cheaper alternatives due to budget reductions. Whilst the Directorate has been successful in identifying reshaping savings for the Inclusion Service, the Directorate has been unable, to date, to identify further savings to cover this gap on recoupment income. This adverse variance could reduce if there are new out of county enrolments in September 2016. The pupil placements budget is a volatile budget that can be significantly impacted with changes to packages of one or two pupils. As part of the Closure of Accounts report for 2015/16, £500k has been set aside in a Schools Placements reserve. This sum will be used as a one off contribution in 2016/17 to mitigate part of the shortfall while further Reshaping Services work is undertaken by the Directorate. The Director of Learning and Skills will review options for achieving the remaining shortfall before year end and report ongoing progress to Committee.
  4. Service Strategy and Regulation - This service is currently projecting a favourable variance at year end of £5k, due to reductions in office expense for the Directorate.
  5. Strategic and Resources - This budget is currently projecting to outturn with a favourable variance of £175k as a result of vacant posts and staff not being at the top of their incremental scale as budgeted. There has also been an increase in ICT support packages purchased by schools.
  6. Children and Young People's Partnership - It is anticipated that this service will outturn with a favourable variance of £5k.
  7. 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.
  8. Libraries - This service is currently projecting to outturn on budget after transferring any legal costs and costs relating to the implementation of the service review out of the Libraries reserve. A judicial review has delayed the implementation of the Community Libraries. This delay in implementation will have an impact on the service's ability to achieve budget savings in 2016/17, however, any shortfall will be funded from the Libraries Reserve.
  9. Youth Service - It is currently anticipated that the Youth Service will outturn with a favourable variance of £13k due to part year vacancies within the service.
  10. Adult Community Learning (ACL) - It is anticipated that the Adult and Community Learning Service will outturn at budget after a £47k transfer from the ACL reserve. This transfer is required to assist with new Welsh for Adults contract and a previous years funding reduction in Schedule 2/Cardiff and Vale College Franchise.
  11. Catering - It is currently anticipated that this service will outturn at budget, however, variations in school meal income will affect this position. School meal uptake will be carefully monitored throughout the year.
  12. It is currently anticipated that other services will outturn at budget.

Capital

  1. Appendix 2 details financial progress on the Capital Programme as at 31st May 2016.
  2. Members should be aware that Appendix 2 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.
  3. Appendix 3 provides non-financial information on capital construction schemes with a budget of over £100k. Where a budget shown in Appendix 2 is more than £100k but is made up of several schemes that individually are less than £100k, the scheme is not included in Appendix 3.
  4. 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.
  5. Gladstone Primary Boiler Renewal- Tenders for this scheme have been received and the projected cost is now £45k over the original budget. Underspends are anticipated elsewhere in the Schools Asset Renewals budget and therefore delegated authority has been used to approve the following virements to this scheme : £5k from Holton Primary Structural Repairs, £20k from the St. Joseph Primary Drainage Upgrade and £20k from Ysgol Gymraeg Bro Morgannwg Renew Sewage Pumps.
  6. Cadoxton Primary Partial Rewire - Tenders for this scheme have been received and the projected cost is now £5k over the original budget. Underspends are anticipated elsewhere in the Schools Asset Renewals budget and therefore delegated authority has been used to approve the virement of £5k from Holton Primary Structural Repairs to this scheme.

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

Officers Consulted

Head of Strategy, Community Learning and Resources

Responsible Officer:

Jennifer Hill, Director of Learning and Skills