Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Lifelong Learning) 21st January 2013
Report of the Chief Learning and Skills Officer
Revenue and Capital Monitoring for the period 1st April 2012 to 30th November 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 30th November 2012 regarding those revenue and capital budgets within this Committee’s remit and to request a change to the Capital Programme.
It is recommended that :
1. The Scrutiny Committee note the position with regard to the 2012/13 revenue and capital monitoring.
2. The proposed amendment to the Penarth Learning Community capital scheme to increase the 2013/14 budget to £4.923M (funded from a transfer of £97K from the St Cyres Demountable budget plus an additional £60 revenue funding) and to also, increase the 2015/16 budget by £3K (funded from revenue contribution). , is endorsed and referred to Cabinet and Council for approval.
Reasons for the Recommendations
1. That members are aware of the position with regard to the 2012/13 revenue and capital monitoring relevant to this scrutiny committee.
2. That Cabinet and Council approve the proposed amendment to the Capital Programme.
2. Cabinet on 19th November 2012 (min no c1910 and c1911) approved the amended capital and revenue 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 £190k 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. The revised budgets reflect a transfer from Access and Inclusion to Schools to reflect the devolved LSA scheme in Secondary Schools to Schools of £555k, £30k has been transferred from Schools to the Access and Inclusion team to fund pupils transferring to the Pupil Referral Unit (PRU) or other alternative provision. In addition £161k has been transferred to the School Improvement Service from the Transition Budget in Strategic Planning and Performance to reflect the additional funding required in 2012/13.
6. Schools - The delegated budget relating to schools is expected to balance as any under/over spend is carried forward by schools.
7. School Improvement - There is a projected overspend of £3k. This is made up of an overspend of £42k due to an amended approach to funding the WJEC subscription which was originally proposed as a saving and also £11k additional costs for subscriptions and licences paid on behalf of schools. This is offset by a reduction in the projected cost of the Joint Education Service of £10k and additional income generated in year and vacancy savings made within the service of £40k.
8. Access and Inclusion - Additional Learning Needs is projecting an overspend of £242k. This is due to an overspend against the budget for children’s placements in independent schools of £270k, which is partly offset by additional recoupment income of £63k. ALN is also projecting an overspend of £252k against the one to one LSA budget which has been offset in year by £239k found as a result of decommitting other Pupil Support expenditure and as a result of savings identified as part of the proposed ALN Restructure, £22k additional income to be generated in year and a £36k contribution made from the Transition budget. There is also an overspend in ALN of £80k due to refurbishment and teaching materials for 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, however , this will be funded by a contribution from the Excluded Pupils Reserve. ALN is an extremely volatile budget and various options for offsetting any potential overspend are being investigated.
9. Strategy and Performance - Strategic Planning is projecting an underspend of £55k. £53k is due to the vacant Director post and there are savings against the pensions budgets of £25k, £6k against Directorate office supplies and advertising budgets and £66k underspend in ICT and Data due to in year vacancy savings, additional income generated and new arrangements for during school test. 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 £80k. 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. From 2013/14 the maternity budget will be devolved to schools and a scheme similar to the one currently operated for long term sickness will be put in place.
10. 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.
11. 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.
12. Libraries - There is currently a £40k favourable variance against the profiled budget. The Service is anticipated to outturn within budget.
13. Catering - There is currently a £8k 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.
14. Appendix 2 details financial progress on the Capital Programme as at 30th November 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 are required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.
16. Penarth Learning Community /St Cyres Demountables - There are currently two separate budgets covering these projects but it is proposed that they be combined as one. The £97k was approved to enable pupils to be transferred in order to proceed with construction works. Additional works, at an estimated cost of £63k, relating to this element of the project include alterations to the swimming pool to convert into a hall. It is proposed that funding for these additional costs come from a revenue contribution. Therefore, it is proposed that the St Cyres demountable budget of £97K be transferred into the Penarth Learning Community budget, along with an additional £63K funding from revenue (£3K of which will not be required until 2015/16 as it relates to a retention payment release), increasing the original Penarth Learning Community budget to £4.923M in 2013/14 and £4.683M in 2015/16.
Variance between Actual Spend to date and Profiled Spend
17. Cabinet have previously agreed that further information would be provided where schemes have a value of over £500K and show a variance of 20% or more between actual spend and the profile. The following scheme meets this criteria
18. Penarth Learning Community - this new school project is currently running ahead of profile, as compared with the external Quantity Surveyors' initial projections. Now that Leadbitters have been appointed as the main contractor for this fixed price contract, it has been requested that an updated profile be submitted incorporating Leadbitter's own programme
19. 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)
20. As detailed in the body of the report
Sustainability and Climate Change Implications
21. As detailed in the body of the report
Legal Implications (to Include Human Rights Implications)
22. There are no legal implications
Crime and Disorder Implications
23. There are no crime and disorder implications
Equal Opportunities Implications (to include Welsh Language issues)
24. There are no equal opportunity implications
25. 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
26. The report is in accordance with the Policy Framework and Budget
Consultation (including Ward Member Consultation)
27. 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
Chief Learning and Skills Officer