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Agenda Item No. 11

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Corporate Resources): 24th June 2014

 

Report of the Managing Director

 

Capital Monitoring Report for the period 1st April to 30th April 2014

 

Purpose of the Report

1.         To advise Scrutiny Committee of the progress on the 2014/15 Capital Programme for the period 1st April 2014 to 30th April 2014.

Recommendations

It is recommended that :-

1.         Committee note the position with regard to the 2014/15 Capital Programme.

2.         Committee note the use of unsupported borrowing for the 21st Century School Programme and refers the request for unsupported borrowing of £923,252 in 2014/15, £1,187,038 in 2015/16 and £527,573 in 2016/17 to Cabinet and thereafter Council for approval.

Reasons for the Recommendations

1.         To allow Members to be aware of progress on the Capital Programme.

2.         To allow schemes to receive funding from Welsh Government.

Background

2.         Council, on the 5th March 2014 minute no 883, approved the Capital Programme for 2014/15 onwards.

Relevant Issues and Options

3.         Appendix 1 details financial progress on the Capital Programme as at 30th April 2014.

4.         The monitoring report shows actual expenditure for the month of April 2014 and is matched by a similar figure in the profile to date column, thereby showing no variances.  Profiled expenditure has been requested from Project Managers and will be updated in the next report.

5.         Members should be aware that Appendix 1 does not include requests for unspent committed expenditure to be slipped from 2013/14 into 2014/15.  A request for this slippage will be included in the Closing Down report presented to a future Cabinet meeting.

6.         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.

Learning and Development

7.         Emergency powers have been used to approve the inclusion of £40k of s106 monies into the Capital Programme for a classroom extension at Llanfair School.

8.         Welsh Government (WG) is providing funding for the 21st Century School programme.  In April 2014, WG notified the Council that some of the funding will be in the form of unsupported borrowing instead of a revenue grant.  The Council will be expected to borrow; however, WG will provide revenue funding to cover the cost of the loan.  In 2014/15 this will be via a specific grant and from 2015/16 the funding will be distributed through the Revenue Support Grant.  This has no impact on the value of the Capital Programme, only the way in which it is funded.  Cabinet and Council will be requested to approve the use of unsupported borrowing.  The table below shows the sums to be borrowed between 2014/15 and 2016/17 and the corresponding borrowing costs funded by WG.

Period

Loan Value/Sum Invested

£

Loan Charges Funded by WG

£

2014/15

923,252

53,651

2015/16

1,187,038

68,980

2016/17

527,573

30,658

TOTAL

2,637,863

153,289

 

Social Services

9.         In addition to the Flying Start grant of £150k already included in the Capital Programme, a further approval of £315k has now been received from Welsh Government.  £290k has been allocated for a scheme at Colcot School and £25k for Cwm Parc Community Centre.  This increase is reflected in Appendix 1.

Development Services

10.      Emergency powers have been used to approve the inclusion of s106 monies into the Capital Programme as follows:

·           Maslin Park - £43k

·           Footway Improvements Cowbridge -  £72k

·           Premier Inn Bus Layby & Shelter -£87k

 

Resource Implications (Financial and Employment)

11.      There are no direct financial implications of this report. 

Sustainability and Climate Change Implications

12.      There are no direct implications arising from this report.

Legal Implications (to Include Human Rights Implications)

13.      There are no legal implications.

Crime and Disorder Implications

14.      There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

15.      There are no Equal opportunity implications.

Corporate/Service Objectives

16.      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

17.      Part of this report should be referred to Council because it is contrary to and not wholly in accordance with the budget.

Consultation (including Ward Member Consultation)

18.      Each Scrutiny Committee will receive a monitoring report on their respective areas. This report does not require Ward Member consultation.

Relevant Scrutiny Committee

19.      All

Background Papers

None

 

Contact Officer

Carolyn Michael

Operational Manager- Accountancy

 

Officers Consulted

The Directors of Resources, Social Services, Development Services, Visible Services and Housing, and the Chief Learning and Skills Officer.

 

Responsible Officer:

Sian Davies, Managing Director

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