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Agenda Item No. 5

 

The Vale of Glamorgan Council

 

Learning and Culture Scrutiny Committee: 13th February 2017

 

Report of the Interim Director of Learning and Skills

 

Revenue and Capital Monitoring for the period 1st April to 31st  December 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 December 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. Cabinet on 14th November 2016 (minute nos. 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 £672k 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

12,947

                  +286

       

Strategy and Regulation

250

208

                    +42

Achievement for All

3,573

4,525

                   -952

Transfer from Reserves

0

                -672

                  +672

School Improvement

1,241

1,289

                    -48

       

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 £286k after a transfer from reserves of £467k. 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, a projected underspend on the catering service of £61,000 and a recent rates rebate for school buildings of £135k. The transfer from reserves will be £93,000 from the Rationalisation reserve to contribute towards school amalgamation costs, £192k from the Libraries reserve to cover any legal costs and costs relating to the implementation of the service review, £30k 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 £42k 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 £280k after a transfer from reserves of £672k. This is as a result of an adverse variance of £793k 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 £162k which are due to vacant posts in the service as a result of early implementation of 2017/18 Reshaping Services savings. However £53k will need to be transferred into the Youth Reserve to fund the G2E project in 2017/18 whilst the service undertakes a restructure. 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. 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 £172k cannot be mitigated further in the year, other reserves could be utilised to balance the shortfall made up of £94k from the Excluded Pupils reserve and £78k from the Adult Community Learning reserve.
  6. School Improvement - This service is projected to overspend by £48k 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.

2016/17 Savings Targets

  1. Attached at Appendix 2 is a list of savings to be achieved this year for this Committee.
  2. There is a saving target of £292k to be found from the Inclusion Service budget. It is anticipated that this level of saving can be achieved during the year, however, there are further pressures on the budget which will result in an overspend as already detailed above.

Capital

  1. Appendix 3 details financial progress on the Capital Programme as at 31st December 2016.
  2. Appendix 4 provides non-financial information on capital construction schemes with a budget of over £100k. Where a budget shown in Appendix 4 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.
  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. Eagleswell Demolition - Appointment of the contractor has been delayed during 2016/17 due to the lowest tenderer withdrawing their tender. Work is due to start early February with completion in June 2017, therefore, it has been requested that £100k is carried forward into 2017/18.
  5. St. Cyres Lower School Marketing and Disposal - Due to the complex nature of land transactions, this scheme has been delayed and it has been requested that £48k is carried forward into 2017/18.
  6. Eagleswell Marketing and Disposal - Due to the complex nature of land transactions, this scheme has been delayed and it has been requested that £34k is carried forward into 2017/18.
  7. St. Andrews Major CIW Primary Fencing - The start of the scheme has been delayed due to ecology issues on the site. Due to the extent of the fencing, the decision has been taken to carry out the works in the school Easter Holidays (April 2017). It has therefore been requested to carry forward £64k into 2017/18.
  8. Cadoxton Primary Partial Electrical Rewire - This scheme is now complete and it has been requested to carry forward £8k to 2017/18 to pay the retention.
  9. Gladstone Primary Boiler Renewal- This scheme is now complete and it has been requested to carry forward £3k to 2017/18 for retention.
  10. Sully Primary Playground Resurfacing - It has been requested that the £10k underspend resulting on this project is vired to the Fire Precaution Works scheme in order to carry out works to the fire sprinkler system at Rhws Primary.
  11. Ysgol Bro Morgannwg Renew Sewage Pumps - Initially it was proposed that the work was completed internally however due to capacity issues external consultants need to be appointed. External consultants will be appointed to carry out the works during the summer holidays and it has therefore been requested to carry forward £53k 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

None

Contact Officer

Carolyn Michael (Operational Manager - Accountancy)

Officers Consulted

Head of Strategy, Community Learning and Resources

Responsible Officer:

Paula Ham

Interim Director of Learning and Skills

 

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