Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Lifelong Learning): 20th February 2012
Report from the Director of Learning and Development
Revenue and Capital Monitoring for the period 1st April 2011 to 31st December 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 December 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. On 16th November 2011, Cabinet approved the amended revenue budget for 2011/12 (min no c1511). 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 - Overall, the Education Budget is currently projected to overspend by £66,000 at year end, however it will be funded from Education Reserves. This overspend is due to a projected £82,000 overspend against the Additional Learning Needs (ALN) budget offset by a £16,000 underspend against School Improvement due to increased income generated in year.
5. The amended original budget reflects a transfer of £4k between the Pupil Referral Unit and the Schools to correct an adjustment for pupils attending the facility.
6. The ALN overspend is made up of a projected overspend of £220k for Learning Support Assistants, also additional Independent schools expenditure has been incurred in year of £122k. As part of the efficiency savings implemented for 2011/12 and 2012/13 £56k has been incurred for redundancies in year. These overspends have also been offset by increased Recoupment Income and reduced Recoupment Expenditure of £232k. A residual saving of £19k has been identified against specialist teachers. As a result of Cymorth funding ending in August 2011 a specialist teacher post (0.5 fte) within the Pupil Support Service has now been moved across to the Primary Behaviour Support Team (PBST). This post within the PBST was previously being backfilled on a temporary basis. The full year savings of this transfer will be reflected in 2012/13. Also £25k of the Secondary Behaviour Support budget has been released to offset overspends elsewhere within the ALN budget. The balance of £40k has been found from the use of additional grant income that was not previously built into the budget. 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
7. In addition, there is a projected overspend of £54k on Mainstream Education Transport, shown against Environmental & Economic Regeneration Services, who manage the budget. This overspend will be met by the use of Education Reserves and has been reflected in Appendix 1.
8. Provision has been made 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.
9. In addition, to finance the School’s contributions to the Early Retirement/Voluntary Redundancy scheme, Education is projecting to transfer £316,000 from Education Reserves. This will be repaid by participating schools over 2012/13 and 2013/14.
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 £20k and is currently anticipated to outturn within budget.
12. Lifelong Learning - This service has a favourable variance of £16k and is currently anticipated to outturn within budget, using projected favourable variances within both the Lifelong Learning Employment and Training Service section and the Communities First Management fees. This will offset a projected £55k adverse variance within Community Enterprise, resulting from delays in implementing 2011/12 savings.
13. Catering - This service has a favourable variance of £6k 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 December 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. Cabinet have previously agreed that further information would be provided where schemes have a value of over £500,000 and show a variance of 20% or more between actual spend and the profile. There are no schemes meeting this criterion this month.
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