Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Lifelong Learning) 10th October 2011
Report from the Director of Learning and Development
Revenue and Capital Monitoring for the period 1st April 2011 to 31st August 2011
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 2011 to 31st August 2011 regarding those revenue and capital budgets, which form this Committee’s remit
1. It is recommended that the Scrutiny Committee note the position with regard to the 2011/12 revenue and capital monitoring.
Reason for the Recommendation
1. That Members are aware of the position with regard to the 2011/12 revenue and capital monitoring relevant to this Scrutiny Committee.
2. Council on the 28th February 2011 (minute nos 956 and 957 respectively) approved the Capital and Revenue Budget for 2011/12. Reports monitoring expenditure are brought to this Committee on a regular basis.
Relevant Issues and Options
3. The Revenue Budget and projected outturn for 2011/2012 are shown in Appendix 1.
4. Education - There is a projected overspend against the Additional Learning Needs (ALN) budget of £72,000.
5. The ALN overspend is made up of a £10k less than budgeted contribution from Vale Schools for the Pupil Referral Units offset by £5k savings against the LSA Budget. In addition, there is a projected overspend of £150k for LSA support, also additional Independent schools expenditure has been incurred in year of £116k. As part of the efficiency savings implemented for 2011/12 and 2012/13 £56k has been incurred for redundancies in year. A further overspend of £33k has been incurred due to the reduced funding from the Families First grant for the Cowbridge Pupil Referral Unit. These overspends have also been offset by increased Recoupment Income and reduced Recoupment Expenditure totalling £245k and £42k found from a vacant post in Primary Behaviour Support Team. The ALN budget is a volatile budget that is demand led, the position will be monitored closely throughout the year. It is possible that the projected overspend may reduce due to increased recoupment income or reduced out of county expenditure. If the overspend is realised it will be offset by a contribution from Education Reserves in year.
6. A virement of £84k from Schools to the Additional Learning Needs budget is to be actioned to reflect the cost of educating pupils within the Pupil Referral Units. In addition, following the virement in month 2 of £204k from Catering, the budget has been adjusted to show this amount against Schools rather than Strategy and Performance. These changes have been reflected in Appendix 1.
7. An amount has been set aside within the budget for the annual cost of financing the School Investment Strategy of £600,000. This sum will be transferred to the School Investment Strategy Reserve.
8. The cost of the School’s ER/VR scheme of £329,000 will in the first instance be funded from Education reserves. This will be repaid by participating schools over 2012/13 and 2013/14.
9. It is anticipated that actions taken by the Directorate will bring overall expenditure on Education and Schools to within the budget by year end.
10. Schools - The delegated budget relating to schools is expected to balance as any under/over spend is carried forward by schools.
11. Libraries - This service has a favourable variance of £8k and is currently anticipated to outturn within budget
12. Lifelong Learning - This service has a favourable variance of £9k and is currently anticipated to outturn within budget.
13. Catering - This service has a favourable variance of £11k and is currently anticipated to outturn within budget. However the service can be affected by external factors and the requirement to meet WG nutritional guidelines. The budget will continue to be closely monitored and any variations will be reported to future meetings.
Capital Programme 2011/12
14. Appendix 2 details financial progress on the Capital Programme as at 31st August 2011.
15. For all schemes where it is evident that the full year's budget will not be spent during the year, the relevant officers will be required to provide an explanation for the shortfall and this shall be taken to earliest available Cabinet.
16. Foundation Phase Grant 2011/12 - The Authority has accepted a grant in the sum of £133,193 for remodelling the early years classrooms at St. Brides Major Primary School with a view to increasing the classroom areas and improving the external learning areas. The grant must be fully spent by the end of March 2012. It has been requested that Cabinet approve the inclusion of this grant in the Capital Programme.
17. Appendix 3 provides non-financial information on capital schemes with a budget of over £100,000. Where a budget shown in Appendix 2 is more than £100,000 but is made up of several schemes that individually are less than £100,000, the scheme is not included in Appendix 3.
Resource Implications (Financial and Employment and Climate Change, if appropriate)
18. As detailed in the body of the report.
Legal Implications (to Include Human Rights Implications)
Crime and Disorder Implications
Equal Opportunities Implications (to include Welsh Language issues)
21. There are no equal opportunity implications.
22. 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
23. The report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
24. The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.
Carolyn Michael (Senior Group Accountant) (01446 709778)
Director of Learning and Development
Bryan Jeffreys, Director of Learning and Development