Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Lifelong Learning) 19th March 2012
Report from the Director of Learning and Development
Revenue and Capital Monitoring for the period 1st April 2011 to 31st January 2012
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 January 2012 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 £109,000 at year end, however it will be funded from Education Reserves. This is due to a projected £129k overspend against the Strategic Planning and Performance budget offset by a £20k under spend against School Improvement due to increased income generated in year.
5. The projected overspend against Strategic Planning is made up of £136k projected overspend against the maternity budget, since October approximately 30 additional staff have started maternity leave. When school based staff go on maternity the salary costs are picked up centrally and the school pays for any cover that is put in place. In addition an £87k projected overspend against rates. This is as a result of the increased rateable value for Cowbridge School and additional rates bills for the two new Welsh Medium Schools. These have been offset by underspends of £94k against Schools Non Delegated Budgets in year.
6. 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.
7. The ALN Budget is now projected to outturn on budget, however, this remains a volatile budget that is demand led and will continue to be closely monitored for the rest of the year. It is possible that that the position may change due to increased recoupment income or additional expenditure on out of county placements.
8. The Mainstream Transport budget is now projected to outturn on budget.
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 £25k 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 £2k 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 January 2012.
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, St Brides Major Primary School - a WG grant of £133k is included in the current Capital Programme. This is to be spent as a contribution to a larger refurbishment scheme that the school is funding. Our grant monies are being spent on the Foundation phase (key stage 1) and will allow the school to extend the foundation classrooms and external areas to allow for the curriculum to be fully delivered. There have been delays in the delivery of the scheme as the school delayed agreeing and issuing tender documents for the works and this had a knock on effect to our element of the scheme. In addition, our chosen contractor contacted the Authority two days before work was due to start on site and pulled out of the scheme, this then meant that we had to contact the second lowest tender and negotiate a new contract with some value engineering to the tender documents in order that the project could be achieved. As a result, even though the contract has now been awarded and works are expected to commence by the end of February, it is possible that the contract will extend a couple of weeks into April. It is anticipated that up to £40k of the works could potentially slip into 2012/13 and discussions between our officers and WG regarding the effect of this on the grant funding are on-going at the time of writing this report.
17. Llangan Primary School new car park - there have been lengthy delays with this scheme, to create a new car park for the school in order to minimise the likelihood of accidents along the road outside the school, where parents currently drop off and collect their children. Access to the proposed car park is required via a lane adjacent to the school. As Cabinet are aware, it has not been possible to determine ownership of this lane. This has led to major delays in progressing this 2010/11 scheme. Cabinet, on 1st February 2012, approved the progress of works on the car park, despite not proving ownership of this access lane, so long as indemnity insurance is taken out by the Authority. This is now in place so our internal Highways Contracting Unit can now progress the scheme. Given the delays however, it is now no longer possible for the works to be completed and so it has been requested that £118k be slipped into 2012/13 in order to complete the scheme.
18. 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)
19. 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)
22. There are no equal opportunity implications.
23. 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
24. The report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
25. 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