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Agenda Item No

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Lifelong Learning) 18th February 2013

 

Report of the Chief Learning and Skills Officer

 

Revenue and Capital Monitoring for the period 1st April 2012 to 31st December 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 December 2012 regarding those revenue and capital budgets within this Committee’s remit.

Recommendations

It is recommended that :

1.             Scrutiny Committee note the position with regard to the 2012/13 revenue and capital monitoring.

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.

Background

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.             Schools - The delegated budget relating to schools is expected to balance as any under/over spend is carried forward by schools.

6.             School Improvement - There is a projected overspend of £11k.  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 £32k.

7.             Access and Inclusion - Additional Learning Needs is projecting an overspend of £237k. 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 £64k.  ALN is also projecting an overspend of £252k against the one to one LSA budget which has been offset in year by £242k found as a result of decommitting other Pupil Support expenditure and as a result of savings identified as part of the proposed ALN Restructure, £23k 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. An additional £50k has also been incurred for Post 16 placements in Independent Schools which has not been reflected in the projected outturn.  This expenditure is usually funded from grant but as the level of grant the authority will receive is not yet known, it is possible that the Council be required to fund some of this cost.  ALN is an extremely volatile budget and various options for offsetting any potential overspend are being investigated.

8.             Strategy and Performance - Strategic Planning is projecting an underspend of £58k.  £54k is due to the vacant Director post and there are savings against the pensions budgets of £36k, £12k against Directorate office supplies and advertising budgets, £15k in Education Finance due to additional grant funding and employee savings and £76k underspend in ICT and Data due to in year vacancy savings, additional income generated and new arrangements for funding school tests.  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 £120k.  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.

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 £84,000 from Education Reserves.  This will be repaid by participating schools over 2013/14 and 2014/15.

11.        Libraries - There is currently a £42k favourable variance against the profiled budget.  The Service is anticipated to outturn within budget.

12.        Youth Service - There is currently a £27k favourable variance against the profiled budget.  The Service is anticipated to outturn within budget.

13.        Lifelong Learning - There is currently a £8k adverse variance against the profiled budget.  The Service is anticipated to outturn within budget

14.        Catering - There is currently a £2k 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.

Capital

15.        Appendix 2 details financial progress on the Capital Programme as at 31st December 2012.

16.        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.

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

Corporate/Service Objectives

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

Background Papers

None

Contact Officer

Carolyn Michael (Senior Group Accountant) (01446 709778)

Officers Consulted

Chief Learning and Skills Officer

Head of Strategic Planning and Performance

Responsible Officer:

Sian Davies