Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Lifelong Learning) 10th September 2012
Report of the Managing Director
Revenue and Capital Monitoring for the period 1st April 2012 to 31st July 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 2012 to 31st July 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 2012/13 revenue and capital monitoring.
Reason for the Recommendation
1. That Members are aware of the position with regard to the 2012/13 revenue and capital monitoring relevant to this Scrutiny Committee.
2. Council on the 7th March 2012 (minute nos. 951 and 950 respectively) approved the Revenue and Capital Budgets for 2012/13. Reports monitoring expenditure are brought to this Committee on a regular basis.
Relevant Issues and Options
3. The Revenue Budget and projected outturn for 2012/2013 are shown in Appendix 1.
4. Overall, the Education Budget is projected to balance as at the end of March 2013. Any savings identified between now and the end of the year will be available to re-direct into the School Investment Strategy or other reserves.
5. Schools - The delegated budget relating to schools is expected to balance as any under/over spend is carried forward by schools.
6. School Improvement - The overspend of £53k is due to failure to implement the cut to the WJEC subscription proposed as a saving and also additional costs for subscriptions and licences paid on behalf of schools.
7. Access and Inclusion - Additional Learning Needs is projecting an overspend of £180k. This is due to an overspend against the one to one learning support assistant budget and a projected overspend against the budget for children’s placements in independent schools.
8. Strategy and Performance - Strategic Planning is projecting an underspend of £233k due to the vacant Director post £66k, savings against the pensions budgets £46k, an underspend against the transition budget £33k. In addition there is currently an underspend against schools contingency budgets £61k, and £67k due to posts held vacant and maternity leave in 2012/13. This is offset by a projected overspend against Maternity costs met on behalf of schools of £40k, however the outturn for maternity is difficult to project accurately and was overspent by £195k in 2011/12 and therefore it will need to be monitored carefully.
9. 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.
10. In addition to finance the Schools' contributions to the ER/VR scheme Education is projecting to transfer £66,000 from Education Reserves. This will be repaid by participating schools over 2013/14 and 2014/15.
11. Libraries - There is currently a £29k favourable variance against the profiled budget. The Service is anticipated to outturn within budget
12. Catering - There is currently a £34k favourable variance against the profiled budget. The Service is anticipated to outturn within budget, however this can be affected by external factors and the requirement to meet WG nutritional.
13. Appendix 2 details financial progress on the Capital Programme as at 31st July 2012.
14. Members should note that Appendix 2 now includes requests for unspent committed expenditure slipped from 2011/12 into 2012/13, as approved via the Council's Urgent Decision Procedure.
15. 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.
16. Llancarfan and Gwenfo Demountables - A capital bid for upgrade of the demountable units at these two schools was accepted at £412k and incorporated into this year's Capital Programme. Tenders for the units to be replaced have been received and it has become apparent that the initial budget was insufficient to replace all units as originally planned. Officers in the Property Section are currently liaising with Education Officers to re-work the original plans, in order to achieve the best outcome possible within the existing budget
17. Appendix 3 provides non-financial information on capital construction 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)
18. As detailed in the body of the report.
Sustainability and Climate Change Implications
19. As detailed in the body of the report.
Legal Implications (to Include Human Rights Implications)
20. There are no legal implications.
Crime and Disorder Implications
21. There are no 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)