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Agenda Item No. 6

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Lifelong Learning) 12th January 2015

 

Report of the Director of Learning and Skills

 

Revenue and Capital Monitoring for the period 1st April to 30th November 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 to 30th November 2014 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 2014/15 revenue and capital monitoring.

Reason for the Recommendation

1.         That Members are aware of the position with regard to the 2014/15 revenue and capital monitoring relevant to this Scrutiny Committee.

Background

2.         Cabinet on the 17th November 2014 (minute nos. C2533 and C2534 respectively) approved the amended Revenue and Capital Budgets for 2014/15.  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 2014/15 are shown in the following table.  It is anticipated that the projected outturn for 2014/15 will be in line with the budget.  Provision has been made within the budget to make unsupported borrowing repayments in relation to the Schools Investment Programme of £435k per annum.

 

Lifelong Learning  

Revenue Budget

 

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Schools

79,229

79,229

0

School Improvement & Inclusion

3,591

3,591

0

Service Strategy & Regulation

243

243

0

Strategic & Resources

10,292

10,292

0

Children and Young Peoples Partnership

336

336

0

Total Education and Schools

93,691

93,691

0

Libraries

2,550

2,550

0

Youth Service

1,069

1,069

0

Adult Community Education

247

247

0

Catering

1,775

1,775

0

TOTAL

99,332

99,332

0

 

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

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

6.         The Central Education budget is anticipated to underspend by £327k.  It is proposed that any underspend identified at year end is directed into the Schools Rationalisation Reserve to use towards the costs of the 21st Century Schools Investment Programme. Part of the underspend may be called upon before the end of the financial year to fund one off urgent health and safety works in schools and a potential increase in rates at the new Penarth Learning Community Schools.

7.         School Improvement & Inclusion - It is anticipated that this area will underspend by £31k.  There is a favourable variance on Additional Learning Needs staffing and resources of £81k, some of which are as a result of early implementation of 2015/16 savings. This is offset by an adverse variance on the internal respite provision of £50k.

8.         Service Strategy & Regulation - This service will outturn at a favourable variance of £13k due to efficiencies within the Business Support section.

9.         Strategic & Resources  - It is anticipated that this area will underspend by £283k due to favourable variances on staffing of £77k as a result of part year vacancies and long term sickness; a £47k underspend on non-delegated schools expenditure and a £36k underspend on Independent nursery placements.  This is offset with an overspend on Special Educational Needs transport of £20k.  There is also an underspend of £143k on mainstream school transport.

10.      Children and Young People's Partnership– It is anticipated that this service will outturn on target.

11.      Education is projecting to transfer £145k to reserves as part of the Voluntary Early Retirement and Redundancy scheme.  This income is in respect of reimbursements from schools relating to redundancies and retirements made in previous years, and will be used to assist schools with timing payments for future retirements and redundancies.  In addition, a transfer of £196k will be taken from the schools Long Term Sickness reserve to fund the current year deficit on the scheme.

12.      Libraries - The service is projecting a favourable variance of £78k due to staff vacancies.  It is proposed that the underspend be used to fund possible pressures following the libraries review.

13.      Youth Service - It is anticipated that this service will outturn on target after transferring £114k from the Youth Service reserve to cover the Area 41 dilapidation costs, West House surrender payment and the Youth Engagement and Progression Framework in schools.

14.      Adult Community Education - This service will outturn at revised budget after transferring £62k from reserves to assist with funding reductions from Welsh Government and Cardiff and Vale College, the delay in implementing the re- structure of the service and redundancy costs relating to the new structure.  There is currently an adverse variance on Adult Community Learning cost recovery of £21k however, it is early in the academic year and there are many more courses planned for the new year. Further action is being taken to maximise income generation and it is envisaged that the budget will balance by the end of the financial year, with any shortfall being funded from the Adult Community Learning reserve.

15.      Catering - The Catering Client is anticipated to outturn on target after using the favourable breakfast club variance £81k to fund capital repayments for the new cashless catering system.

Capital

16.      Appendix 2 details financial progress on the Capital Programme as at 30th November 2014.

17.      Holton Boiler Upgrade - Following the completion of the scheme in 2013/14 a small amount of technical salary costs have fallen due in 2014/15.  It has therefore been requested that this scheme is increased by £1k in 2014/15.  This increase will be funded by a contribution from Cadoxton Infant Toilet Refurbishment.

18.      Penarth Learning Community - Due to a change in the profiled costs of this scheme it is estimated that a further £1.9m will be spent this financial year.  It has therefore been requested to increase the 2014/15 Capital Programme by £1.9m to be funded by Transition from SBIG Grant from Welsh Government who have agreed to bring the grant forward from 2015/16.

19.      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.

20.      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)

21.      As detailed in the body of the report

Sustainability and Climate Change Implications

22.      As detailed in the body of the report

Legal Implications (to Include Human Rights Implications)

23.      There are no legal implications

Crime and Disorder Implications

24.      There are no crime and disorder implications

Equal Opportunities Implications (to include Welsh Language issues)

25.      There are no equal opportunity implications

Corporate/Service Objectives

26.      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

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

Consultation (including Ward Member Consultation)

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

Background Papers

None

 

Contact Officer

Carolyn Michael (Operational Manager - Accountancy) (01446 709778)

 

Officers Consulted

Director of Learning and Skills

Head of Strategy, Community Learning & Resources

 

Responsible Officer:

Jennifer Hill

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