Agenda Item No. 6

The Vale of Glamorgan Council


Learning and Culture Scrutiny Committee: 17th October 2016


Report of the Interim Director of Learning and Skills


Revenue and Capital Monitoring for the period 1st April to 31st  August 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 August 2016 regarding those revenue and capital budgets, which form this Committee's remit.


It is recommended that :-

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.


  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


  1. The Revenue Budget for the Directorate is projecting an adverse variance of £672k at year end, however, proposals to mitigate this position are outlined in the report.

Learning & Culture               

Revenue Budget

Probable Outturn


(+ ) Favourable

(-) Adverse









School Improvement & Inclusion




Service Strategy & Regulation




Strategic & Resources




Children & Young People's Partnership




Total Education and Schools








Youth Service




Adult Community Education








Art Development




Equalities & Welsh Language




Use of Reserves/Identified Savings








  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 £948k. This is as a result of an adverse variance of £814k on the recoupment income budget and an adverse variance on pupil placements of £246k. There will also be expenditure of £131k on redundancy and pension strain costs as a result of restructuring This position can be partly offset by projected salary underspends of £243k which are due to vacant posts in the service as a result of early implementation of 2017/18 Reshaping Services savings. 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. The main reason for this reduction in out of county pupils is due to other local authorities seeking to educate their children within county and to source cheaper alternatives due to budget reductions. However the school is still operating near to capacity due to an increase in demand from Vale pupils requiring placements. 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. The pupil placements budget is a volatile budget that can be significantly impacted with changes to packages of one or two pupils. £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. If this shortfall cannot be mitigated further in the year, further reserves could be utilised to balance the shortfall made up of £50k from the Excluded Pupils reserve, £44k from the Youth Service reserve and £78k from the Adult Community Learning reserve.
  4. Service Strategy and Regulation - This service is currently projecting to outturn at a favourable variance of £31,000 due to salary underspends and reductions in office expenses for the Directorate.
  5. Strategic and Resources - This service is currently projecting a favourable variance at year end of £178k. This underspend is as a result of early implementation of 2017/18 savings, a reduction in the number of supported non-maintained nursery settings, a number of vacancies throughout the department and an increase in ICT support packages purchased by schools. There will also be a requirement to transfer £152k from the Early Retirement and Voluntary Redundancy Reserve.
  6. Children and Young People's Partnership - It is anticipated that this service will outturn with a favourable variance of £23k as savings have been identified in running costs.
  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 £42k 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 £44k 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. A clearer projection will be available after the September intake.
  12. Arts Development - It is currently anticipated that the service will outturn with a favourable variance of £2k.


  1. Appendix 2 details financial progress on the Capital Programme as at 31st August 2016.
  2. Appendix 3 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 2.
  3. 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.
  4. Colcot Primary - Alternations to the heating system, improvements to the external fencing and demolition of a demountable were carried out during the summer holidays, with some further internal improvements to be undertaken prior to year end. However, another part of the scheme which was to create a new car park was not able to be undertaken during the summer holidays and will now have to be carried out in the summer of 2017. It has therefore been requested that £125k is carried forward into 2017/18.

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


Contact Officer

Carolyn Michael (Operational Manager - Accountancy)

Officers Consulted

Head of Strategy, Community Learning & Resources

Responsible Officer:

Paula Ham, Interim Director of Learning and Skills