Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Lifelong Learning) 15th October 2012
Report of the Managing Director
Revenue and Capital Monitoring for the period 1st April 2012 to 31st August 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 August 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 no 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, however, this is after transferring £218k from Education Reserves. Any savings identified between now and the end of the year will be available to reduce the use of reserves, or 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 projected overspend of £53k is due to an amended approach to funding the WJEC subscription which was 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 £210k. This is due to an overspend against the budget for children’s placements in independent schools of £258k, which is partly offset by additional recoupment income of £56k. ALN is also projecting an overspend of £200k against the one to one LSA budget which has been offset in year by £208k found as a result of decommitting expenditure which is not required this year, including specific budgets for secondary behaviour support and looked after children. £45k has also been saved in the first half of the year from the vacant Head of Service post. There is also an overspend in ALN of £61k due to the refurbishment costs of the Pupil Referral Unit (PRU) prior to inspection and lower than projected Age Weighted Pupil Unit contributions from schools towards pupils placed in the PRU.
8. Strategy and Performance - Strategic Planning is projecting an underspend of £45k. £54k is due to the vacant Director post and there are savings against the pensions budgets of £46k. This is offset by a projected overspend of £15k for Schools Rates and a projected overspend against maternity costs met on behalf of the schools of £40k. 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 School’s contributions to the Early Retirement/Voluntary Redundancy 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 £45k 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 standards.
13. Appendix 2 details financial progress on the Capital Programme as at 31st August 2012.
14. 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.
15. Llancarfan and Gwenfo Demountables - The latest position in respect of this scheme is that one double demountable at Gwenfo Primary has now been replaced with a new double unit. At Llancarfan, one previously hired demountable unit has now been purchased, a second has been surveyed and deemed in good condition but needing some minor works. The third unit is to be purchased at the end of this financial year as works need to be undertaken outside term time. Half Term and Christmas holiday are not sufficient to complete the works before pupils return. As such, the works programme for this element of the scheme anticipates contractor appointment during December, ground works during February and delivery of the new unit in March, to be completed during the Easter school holidays. This is a very tight timescale and slippage may be requested as necessary
16. 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)
17. As detailed in the body of the report.
Sustainability and Climate Change Implications
18. As detailed in the body of the report.
Legal Implications (to Include Human Rights Implications)
19. There are no legal implications.
Crime and Disorder Implications
20. There are no 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)
Chief Learning and Skills Officer
Head of Strategic Planning and Performance