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Agenda Item No. 6

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Lifelong Learning) 16th March 2015

 

Report of the Director of Learning and Skills

 

Revenue and Capital Monitoring for the period 1st April 2014 to 31st January 2015

 

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 2014 to 31st January 2015 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

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 no 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 projected that by year end there will be an underspend of £285k.  It is proposed that at year-end, any underspend will be transferred into the Libraries reserve to assist with the implementation of the Libraries review.  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.         School Improvement & Inclusion - It is anticipated that this area will overspend by £75k after transferring £38k from the excluded pupils reserve to fund additional alternative curriculum placements for Key Stage 3 and Key Stage 4 pupils and security and building works to the Pupil Referral Unit.  The £75k net overspend will occur after offsetting adverse variances on the internal respite provision of £36k, independent placements of £14k, Learning Support Key Stage 4 college placements of £38k, recoupment income of £29k and behaviour support of £22k with favourable variances on Additional Learning Needs staffing and resources of £64k.  Any overspend at year end will be off set by underspends elsewhere in the Directorate.

7.         Service Strategy & Regulation - This service will outturn with a favourable variance of £18k due to efficiencies within the Business Support section.  It is intended that any underspend at year end will be transferred into the Libraries reserve to assist with the implementation of the Libraries Review.

8.         Strategic & Resources  - It is anticipated that this area will underspend by £213k after funding overspends  on urgent repairs in schools of £63k and Special Education Needs transport of £10k, offset by favourable variances on mainstream transport of £159k, independent nursery placements of £37k, staffing of £45k and non-delegated schools costs of £45k.  It is intended that any underspend at year end will be transferred into the Libraries reserve to assist with the implementation of the Libraries Review.

9.         Children and Young Peoples Partnership– It is anticipated that this service will underspend by £68k due to 2015/16 savings being implemented early and temporary changes to the funding of childcare umbrella groups.  It is intended that any underspend at year end will be transferred into the Libraries reserve to assist with the implementation of the Libraries Review.

10.      £164k will be transferred into the Early Retirement Voluntary Redundancy Invest to Save reserve in respect of the schools early retirement and voluntary redundancy scheme. In addition a transfer of £196k will be taken from the schools Long Term Sickness and Maternity reserve to fund the current year deficit on the scheme.

11.      Libraries  - The service is projecting a favourable variance of £61k due to staff vacancies.  It is intended that any underspend will be transferred into the Libraries reserve to assist with the implementation of the Libraries Review.

12.      Youth Service - It is anticipated that this service will outturn on target after transferring £105k from the Youth Service reserve to fund the Area 41 dilapidation costs, Westhouse surrender payment and the Youth Engagement and Progression Framework in schools.

13.      Adult Community Education - This service will outturn at revised budget after transferring £28k from reserves to assist with funding reductions from Welsh Government and Cardiff and Vale Colleges.

14.      Catering - The Catering Client will outturn on target after a transfer of £45k from the Catering reserve.  There are projected underspends on the breakfast club of £45k, Appetite for Life Coordination of £14k, Premise Costs of £20k and revenue costs for the new catering system of £26k.  These underspends have been reinvested into the service to fund kitchen equipment in schools.  The transfer from the reserve has been used for the same purpose.  The trading account is predicting a surplus of £57k which will be transferred to capital and used towards the cost of the cashless catering system.

Capital

15.      Appendix 2 details financial progress on the Capital Programme as at 31st January 2015.

16.      Additional Education Asset Renewal Schemes - At Cabinet on the 22nd September 2014 it was recommended "THAT the 2014/15 Capital Programme be increased by £600k to cover additional Education Asset Renewal Schemes and request that the scheme details be reported to a future Cabinet Meeting.'  Approval has been received by Emergency Powers and the £600k, has been allocated with £75k funding external consultancy services, £462k to increase the budget of the Overboarding Ceilings scheme, £20k to increase the budget of the Victoria Primary School Emergency Roofing scheme and £43k is used to fund emergency/urgent works should they be required.  These changes are reflected in Appendix 2.

17.      Llanfair Primary Roof Renewal - It was approved by Delegated Authority on the 15th January 2015 that £19k of the Education Asset Renewal Contingency Budget would be vired to this scheme increasing the budget to £59k.  The estimated total amount of this scheme is £70k and it was also requested that 'the £11k shortfall could be realised from an underspend against the additional capital funding allocated to Llanfair Demountable Scheme.  However if this does not materialise we will request to draw down the £11k from the Asset Renewal Contingency budget.'  The £11k shortfall needs to be drawn down from the Asset Renewal Contingency budget.  This has now been reflected in Appendix 2.

18.      Penarth Learning Community - It has been requested that there is an increase in the Penarth Learning Community scheme budget by £235k to be funded by a contribution from the School Investment Strategy Reserve. This funding will be used to fund a trampoline, sensory room and ICT facilities.

19.      Llantwit Major Library - It has been requested that £4k is carried forward into the 2015/16 Capital Programme in order to pay for retention.

20.      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.

21.      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

22.      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:-

23.      Ysgol Gwaun Y Nant/Oakfield - Amendments to programming/sequencing of works has resulted in actual expenditure that is less than the initial spend profile.  This does not adversely affect the final cost of the project.

Resource Implications (Financial and Employment)

24.      As detailed in the body of the report

Sustainability and Climate Change Implications

25.      As detailed in the body of the report

Legal Implications (to Include Human Rights Implications)

26.      There are no legal implications

Crime and Disorder Implications

27.      There are no crime and disorder implications

Equal Opportunities Implications (to include Welsh Language issues)

28.      There are no equal opportunity implications

Corporate/Service Objectives

29.      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

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

Consultation (including Ward Member Consultation)

31.      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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