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Agenda Item No. 7

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Lifelong Learning): 20th January 2014

 

Report of the Chief Learning and Skills Officer

 

Revenue and Capital Monitoring for the Period 1st April 2013 to 30th November 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 2013 to 30th November 2013 regarding those revenue and capital budgets, which form this Committee’s remit.

Recommendation

It is recommended that :-

1.         Scrutiny Committee note the position with regard to the 2013/14 revenue and capital monitoring.

Reason for the Recommendation

1.         That Members are aware of the position with regard to the 2013/14 revenue and capital monitoring relevant to this Scrutiny Committee.

Background

2.         Cabinet on the 18th November 2013 (minute nos. C2076 and C2074 respectively) approved the amended Revenue and Capital Budgets for 2013/14.  Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options

Revenue

 

3.         The Revenue Budget and projected outturn for 2013/14 are shown in the following table.  It is anticipated that the projected outturn for 2013/14 will be in line with the budget.  This is after making a contribution to the Capital Investment reserve of £503k.    

 

Lifelong Learning  

Revenue Budget

 

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Schools

78,949

78,949

0

School Improvement

1,532

1,532

0

Access and Inclusion

2,951

2,951

0

Strategy and Performance

10,206

10,224

(18)

Service Strategy & Regulation

241

223

18

Total Education and Schools

93,879

93,879

0

Libraries

2,606

2,606

0

Youth Service

1,127

1,127

0

Lifelong Learning

193

193

0

Catering

1,743

1,743

0

TOTAL

99,548

99,548

0

 

4.         A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1

5.         Overall, the Education Budget is projected to balance as at the end of March 2014. 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.

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

7.         Strategy and Performance - It is predicted that this budget will outturn with an adverse variance of £18k.  This is due to an estimated overspend on further education transport of £82k, rates of £60k and pension costs incurred as part of the Voluntary Early Retirement and Redundancy scheme of £20k.  This is offset by favourable variances on Education Finance £34k, Performance Management of £10k, SEN transport £15k and other accumulated underspends of £5k.  It should also be noted that the budget for mainstream home to school transport is held within Development Services.  Any over or underspend at year end will be transferred to this budget.  Currently it is projected that this could be in the region of £80k underspent.

8.         Service Strategy & Regulation - It is predicted that this budget will outturn with a favourable variance of £18k.  This is as a result of efficiencies within the business support unit supplies and services budget.

9.         Education is projecting to transfer £121k to reserves as part of the Voluntary Early Retirement and Redundancy scheme.  This is made up of £273k received from schools to repay arrangements made in previous years and £152k required to finance new arrangements under the scheme.

10.      Libraries - There is currently a £43k favourable variance against the profiled budget due to staff vacancies, however, this will be utilised within the service during the coming months to fund one off building works and equipment.  The service is therefore anticipated to outturn on target at year end.

11.      Youth Service -  The service is currently breaking even against the profiled budget and is anticipated to outturn on target at year end.

12.      Lifelong Learning - There is currently a £15k favourable variance against the profiled budget due to a staff vacancy which has now been filled, however, this will be utilised within the service during the coming months and the service is therefore anticipated to outturn on target at year end.

13.      Catering - There is currently a £34k favourable variance against the profiled budget due to slower than anticipated take up of free Breakfast Club provision.  This underspend will be used to upgrade and maintain kitchens and equipment between now and year end and also supports an increase in meal numbers seen during the autumn term.  It is therefore predicted that the budget will outturn on target at year end.

Capital

14.      Appendix 2 details financial progress on the Capital Programme as at 30th November 2013.

15.      Albert Primary School Emergency Works to Ceilings - A request has been made to vire £35k from the Education Asset Renewal Contingency Budget to pay for emergency works at the school, following failure of a section of lath and plaster ceiling in the infant hall.  Following an inspection of all ceilings, further areas of potential failure were identified and the school was closed with immediate effect. Emergency remedial works have been completed to enable the school to reopen as soon as possible.

16.      Barry Comprehensive Boiler House Remedial Works - A request has been made to vire £10k from the Bryn Hafren Boiler Replacement scheme, as following a tender exercise by the Property Section, the funding was not required and can be utilised by this scheme.

17.      High Street Ceiling Overboarding - Following failure of a section of lath and plaster ceiling, further inspection of all ceilings identified further areas of potential failure.  The anticipated cost of the scheme is £25k. This scheme will be funded by the following virements :-

          Transfer £9k from High Street Boiler Replacement due to a projected underspend

          Transfer £6k from Gwenfo Primary School Boiler due to a projected underspend

          Transfer £10k from Romilly Primary Replace Cast Iron Gutters following confirmation from Buildings Services that this funding is not required.

18.      Romilly Ceiling Overboarding - Following failure of a section of lath and plaster ceiling, inspection of all ceilings identified further areas of potential failure, the anticipated costs of the scheme are £30k. This scheme will be funded by the following virements :-

          Transfer £7k from slippage for Ysgol Sant Baruc Overboard Ceilings following confirmation from Buildings Services that this funding is not required

          Transfer £17k from slippage from Pendoylan School Remodelling

          Transfer £6k from Bryn Hafren Boiler Replacement.

19.      Ysgol Sant Curig Rebuild Deteriorating Masonry and Emergency Overboarding - Following a lath and plaster collapse, a full inspection of the school identified a number of ceilings that were severely cracked and in urgent need of overboarding.  The anticipated costs of the scheme are £59k whereas the current budget in the capital programme is £20k. A number of virements have been requested to fund the increased costs for this scheme as follows :-

          Transfer £20k from Barry Comp Main Block Roof following confirmation of an underspend on this scheme by Building Services

          Transfer £19k from Ysgol Sant Baruc Overboard Ceilings following confirmation of an underspend of this scheme by Building Services.

20.      Ysgol Nant Talwg - WG has recently issued its allocation for the 21st Century Schools Funding and has confirmed that, subject to completion of a business case to WG, grant funding of £1.2m has been allocated to this scheme for 2013/14. This is an increase of £200k on the initial 2013/14 budget but is merely a re-phasing of grant rather than additional grant therefore an increase of £200k has been requested to the 2013/14 capital budget and the 2014/15 capital budget will be reduced by £200k to reflect the funding reprofile.

21.      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.

22.      Appendix 3 provides non-financial information on capital construction schemes with a budget of over £100k.   Where a budget shown in Appendix 2 is more than £100k but is made up of several schemes that individually are less than £100k, the scheme is not included in Appendix 3.

Variance between Actual Spend to date and Profiled Spend

23.      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:-

24.      Penarth Learning Community - The scheme is currently in construction phase and progressing well. Amendments to programming/sequencing of works has resulted in actual expenditure currently exceeding initial spend profile. This does not adversely affect the final cost.

Resource Implications (Financial and Employment)

25.      As detailed in the body of the report.

Sustainability and Climate Change Implications

26.      As detailed in the body of the report.

Legal Implications (to Include Human Rights Implications)

27.      There are no legal implications.

Crime and Disorder Implications

28.      There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

29.      There are no equal opportunity implications.

Corporate/Service Objectives

30.      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

31.      The report is in accordance with the Policy Framework and Budget.

Consultation (including Ward Member Consultation)

32.      The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.

Background Papers

None.

 

Contact Officer

Carolyn Michael (Principal Accountant) (01446 709778)

 

Officers Consulted

Chief Learning and Skills Officer

Head of Strategic Planning and Performance

 

Responsible Officer:

Jennifer Hill