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Agenda Item No

The Vale of Glamorgan Council

 

Learning and Culture Scrutiny Committee: 20th March 2017

 

Report of the Director of Learning and Skills

 

Revenue and Capital Monitoring for the period 1st April 2016 to 31st January 2017

 

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 2016 to 31st January 2017 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. 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 £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 £503k. 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 £61k and a recent rates rebate for school buildings of £135k. The transfer from reserves will be £93k from the Rationalisation reserve to contribute towards school amalgamation costs, £228k 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.

Capital

  1. Appendix 2 details financial progress on the Capital Programme as at 31st January 2017.
  2. 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.
  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. Victorian Schools - It has been requested that £50k is carried forward into 2017/18, as the works are currently being specified and detailed surveys of the schools are being undertaken, with the aim of starting on site during the summer holidays.
  5. Llantwit Major Learning Community - It has been requested that £1m is carried forward into 2017/18, due to the reprogramming of works amending the spend profile. The school is now occupied and the reprofiling will not alter the planned completion date for the scheme.
  6. Eagleswell Demolition - It has been requested that £100k is carried forward into 2017/18, as there have been delays appointing the preferred contractor who is due to start on site imminently.
  7. St Brides Expansion - It has been requested that the budget for this scheme is re-profiled as follows:

                                                                                2016/17                                                2017/18

                                                                                £000's                                                £000's

Original Profile:                                510                                                                0

Revised Profile:                                196                                                                314

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

Director of Learning and Skills