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Agenda Item No. 4

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Lifelong Learning) 17th March 2014

 

Report of the Chief Learning and Skills Officer

 

Revenue and Capital Monitoring for the period 1st April 2013 to 31st January 2014

 

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 31st January 2014 regarding those revenue and capital budgets, which form this Committee’s remit.

Recommendation

It is recommended that Scrutiny Committee note the position with regard to the 2013/14 revenue and capital monitoring.

Reason for the Recommendation

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 no 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 £509k.


 

Lifelong Learning  

Revenue Budget

 

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Schools

78,949

78,949

0

School Improvement & Inclusion

4,483

4,483

0

Service Strategy & Regulation

241

219

22

Strategic Planning & Resources

10,206

10,228

(22)

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.         School Improvement & Inclusion - It is anticipated that this budget will outturn on target.  There are adverse variances of £30k on children's placements Out of County and in independent Schools, £14k on respite and £11k on the Pupil Referral Unit.  This is offset by favourable variances in the following areas; Alternative Curriculum Placements £10k, Home tuition £14k, Pupil Support and Behaviour £22k and income £9k.

8.         Service Strategy & Regulation - It is predicted that this budget will outturn with a favourable variance of £22k.  This is as a result of efficiencies within the business support unit supplies and services budget.

9.         Strategic Planning & Resources - It is predicted that this budget will outturn with an adverse variance of £22k.  This is due to an estimated overspend on further education transport of £115k, SEN transport £6k, pension contributions £5k and other various areas amounting to £5k.  This is offset by favourable variances on Education Finance £45k, repairs and maintenance of schools £20k and mainstream transport £44k. 

10.      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.

11.      Libraries - There is currently a £66k favourable variance against the profiled budget due to staff vacancies and early implementation of target savings, however, this will be utilised within the service during the coming months to fund one off building works and equipment purchases and grant match funding.  The service is therefore anticipated to outturn within budget at year end.

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

13.      Lifelong Learning - There is currently a £40k favourable variance against the profiled budget due to a staff vacancy which has now been filled and an underspend in tutor costs, however, this will either be utilised within the service during the coming months or set aside to assist with future funding reductions from Welsh Government for Adult Community Learning.  The service is therefore anticipated to outturn on target at year end.

14.      Catering - There is currently a £8k 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 anticipated that the budget will outturn within budget at year end.

Capital

15.      Appendix 2 details financial progress on the Capital Programme as at 31st January 2014.  The following changes are reflected in Appendix 2.

16.      Penarth Learning Community - It has been requested that the 2013/14 budget is increased by £902k to reflect an increased projected outturn this year, resulting in an amended budget for the scheme in 2013/14 of £23,300k.  There will be an equivalent reduction to the budget in 2014/15.  It has also been requested that the funding for the scheme in the 2013/14 and 2014/15 Capital Programmes are amended to reflect Welsh Government's offer to bring forward £8m of grant funding from 2014/15 into 2013/14. This reduces Council funding required in 2013/14 and increases the requirement for Council Funding in 2014/15, but does not impact on the overall cost of the scheme to the Council.

17.      Ysgol St Curig Rebuild deteriorating masonry- Committee are advised that Emergency Powers have been used to vire funding of £15,246 from the Fire Protection Works Scheme to fund the additional costs of overboarding water damaged ceilings at Ysgol St Curig.

18.      Llancarfan Demountable - It has been requested that £5,465 is carried forward into the 2014/15 Capital Programme to fund retention costs for this scheme falling into next year.

19.      High Street Primary Boiler Renewal -It has been requested that £1,022 is carried forward into the 2014/15 Capital Programme to fund retention costs for this scheme falling into next year.

20.      Gwenfo Boiler Renewal - It has been requested that £690 is carried forward into the 2014/15 Capital Programme to fund retention costs for this scheme falling into next year.

21.      Fairfield Boiler Renewal - It has been requested that £2,694 is carried forward into the 2014/15 Capital Programme to fund retention costs for this scheme falling into next year.

22.      Various Schools Legionella Control Works - A virement of £8,000 has been requested from Romilly Dry Rot Eradication to fund the additional costs associated with this scheme.

23.      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.

24.      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.

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

Chief Learning and Skills Officer