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Agenda Item No. 7

 

The Vale of Glamorgan Council

 

Learning and Culture Scrutiny Committee: 23rd January 2017

 

Report of the Interim Director of Learning and Skills

 

Revenue and Capital Monitoring for the period 1st April to 30th November 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 November 2016 regarding those revenue and capital budgets, which form this Committee's remit.

Recommendations

It is recommended that :-

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

Reasons for the Recommendations

  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. Cabinet on 14th November 2016 (minute no C3362 and C3363 respectively) approved the revised Revenue and Capital Budgets for 2016/17. Reports monitoring expenditure are brought to this committee on a regular basis.

Relevant Issues and Options

Revenue

  1. The Revenue Budget for the Directorate is projecting an adverse variance of £716k 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

       

Strategy, Culture, Community Learning & Resources

13,233

13,029

                  +204

       

Strategy and Regulation

250

218

                    +32

Achievement for All

3,573

4,403

                   -830

Transfer from Reserves

0

                -716

                  +716

School Improvement

1,241

1,363

                   -122

       

TOTAL

99,306

99,306

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. Strategy, Culture, Community Learning & Resources - This service is projected to outturn with a favourable variance of £204k after a transfer from reserves of £446k. The net 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, an increase in ICT support packages purchased by schools and a projected underspend on the catering service of £71k. This catering underspend is based on projected school meal take up which can change throughout the year. The transfer from reserves will be £251k from the Libraries reserve to cover any legal costs and costs relating to the implementation of the service review, £43k from the Adult Community Learning reserve to assist with the new Welsh for Adults contract and a previous years funding reduction in Schedule 2/Cardiff and Vale College Franchise and £152k from the Early Retirement and Voluntary Redundancy Reserve to fund redundancy and retirement costs in schools..
  4. Strategy and Regulation - This service is currently projecting to outturn at a favourable variance of £32k due to salary underspends and reductions in office expenses for the Directorate.
  5. Achievement for All - This service is projected to outturn with an adverse variance of £114k after a transfer from reserves of £716k. This is as a result of an adverse variance of £822k on the recoupment income budget and an adverse variance on pupil placements of £268k. This position can be partly offset by projected salary underspends of £260k 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. Therefore, as an initial measure £500k has already 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. However, if this shortfall of £216k cannot be mitigated further in the year, other reserves could be utilised to balance the shortfall made up of £93k from the Excluded Pupils reserve, £45k from the Youth Service reserve and £78k from the Adult Community Learning reserve.
  6. School Improvement - This service is projected to overspend by £122k as a result of redundancy and pension strain costs as a result of restructuring.
  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.

Capital

  1. Appendix 2 details financial progress on the Capital Programme as at 30th November 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. Ysgol St Baruc - A dedicated area is required at the school to improve dining facilities. It will be requested that £27k is added to the capital programme to purchase benches and partitioning, which will be funded from the Schools Investment Strategy reserve.

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 & Resources

Responsible Officer:

Paula Ham

Interim Director of Learning and Skills

 

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