Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Lifelong Learning): 18th March 2013
Report of the Chief Learning and Skills Officer
Revenue and Capital Monitoring for the period 1st April 2012 to 31st January 2013
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 January 2013 regarding those revenue and capital budgets within this Committee’s remit.
2. To request a change to the Capital Programme.
It is recommended that :
1. Scrutiny Committee note the position with regard to the 2012/13 revenue and capital monitoring.
2. the proposed amendment to increase the Penarth Learning Community capital budget by £80k, funded from a revenue contribution from schools, is endorsed and referred to Cabinet 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 approve the proposed amendment to the Capital Programme.
3. Cabinet on 19th November 2012 (min nos 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
4. The Revenue Budget and projected outturn for 2012/13 are shown in Appendix 1.
5. Overall, the Education Budget is projected to balance as at the end of March 2013, however, this is after transferring £186k 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.
6. There has been an adjustment of £8k increasing the ALN budget and reducing the Schools budgets to amend the amount of funding devolved to Secondary Schools for one to one LSA support. This has no overall affect on the Education and Schools budget.
7. Schools - The delegated budget relating to schools is expected to balance as any under/over spend is carried forward by schools.
8. School Improvement - There is a projected overspend of £12k. This is made up of an overspend of £40k due to an amended approach to funding the WJEC subscription which was originally proposed as a saving and also £10k 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 £28k.
9. Access and Inclusion - Additional Learning Needs is projecting an overspend of £269k. This is due to an overspend against the budget for children’s placements in independent schools of £267k, which is partly offset by additional recoupment income of £86k. ALN is also projecting an overspend of £255k against the one to one LSA budget and an additional £43k for Early Intervention support. This has been offset in year by £254k 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 £14k 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. We have now received confirmation that an additional £50k which has been incurred for Post 16 placements in Independent Schools will be funded by additional grant funding in year. ALN is an extremely volatile budget and various options for offsetting any potential overspend are being investigated.
10. Strategy and Performance - Strategic Planning is projecting an underspend of £95k. £54k is due to the previously vacant Director's post and there are savings against the pensions budgets of £29k, £15k against Directorate office supplies and advertising budgets, £22k in Education Finance due to additional grant funding and employee savings, £67k underspend in ICT and Data due to in year vacancy savings, additional income generated and new arrangements for funding school tests, £29k against ALN transport and £20k against the vacant school buildings officer post. This is offset by a projected overspend of £19k for Schools Rates and a £12k overspend as a result of alternative accommodation arrangements for Albert School. There is also a projected overspend against maternity costs met on behalf of the schools of £110k. 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.
11. 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.
12. In addition to finance the School’s contributions to the Early Retirement/Voluntary Redundancy scheme Education is projecting to transfer £68,000 from Education Reserves. This will be repaid by participating schools over 2013/14 and 2014/15.
13. Libraries - There is currently a £18k favourable variance against the profiled budget. The Service is however, anticipated to outturn within budget, as there are stock purchases to be made prior to year end.
14. Appendix 2 details financial progress on the Capital Programme as at 31st January 2013.
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 - An offer of additional revenue funding for this project has been made by Ysgol Maes Dyfan and Ashgrove School in order to fund the provision of specialist equipment and resources for the new school. In order to procure these items it is necessary to increase the capital budget accordingly. As such, Cabinet will be requested to increase the existing budget by £80k.
17. Llancarfan and Gwenfo Demountables - Whilst the Gwenfo works are complete, due to tenders for the Llancarfan element of the scheme being higher than available funding, options are being reconsidered. It is likely that slippage will be requested in order to progress the scheme in the next financial year.
18. 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)
19. As detailed in the body of the report
Sustainability and Climate Change Implications
20. As detailed in the body of the report
Legal Implications (to Include Human Rights Implications)
21. There are no legal implications
Crime and Disorder Implications
22. There are no crime and disorder implications
Equal Opportunities Implications (to include Welsh Language issues)
23. There are no equal opportunity implications
24. 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
25. The report is in accordance with the Policy Framework and Budget
Consultation (including Ward Member Consultation)
26. 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
Jennifer Hill, Chief Learning and Skills Officer