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Agenda Item No 5

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Lifelong Learning) 20th July 2015

 

Report of the Director of Learning and Skills

 

Revenue and Capital Monitoring for the period 1st April to 31st May 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 to 31st May 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 2015/16 revenue and capital monitoring.

Reason for the Recommendation

1.         That members are aware of the position with regard to the 2015/16 revenue and capital monitoring relevant to this scrutiny committee.

Background

2.         Council on the 4th March 2015 (minute no 941 and 940 respectively) approved the Revenue and Capital Budgets for 2015/16.  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 2015/16 are shown in the following table.  The Learning and Skills Directorate is aiming to outturn at budget, however, there are significant pressures within the Inclusion Service with regards to inter authority recoupment and there is further pressure in the Strategy and Resources section due to a potential deficit on the Schools Long Term Supply Insurance scheme.  

Lifelong Learning  

Revenue Budget

 

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Schools

79,586

79,586

0

School Improvement & Inclusion

3,714

3,714

0

Service Strategy & Regulation

247

247

0

Strategic & Resources

10,235

10,235

0

Children & Young People's Partnership

304

304

 

Total Education and Schools

94,086

94,086

0

Libraries

2,359

2,359

0

Youth Service

1,043

1,043

0

Adult Community Learning

265

265

0

Catering

1,756

1,756

0

TOTAL

99,509

99,509

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 - The service is aiming to outturn on target, however, there are significant pressures within the Inclusion budget due to a decrease in inter authority recoupment.  The Directorate is seeking ways to mitigate this overspend as part of the longer term Reshaping Services agenda.  The decrease in out of county income is as a result of an increased number of Vale pupils requiring a placement at Ysgol Y Deri, which has meant there are less places available for out of county pupils.

7.         Strategy & Resources - This service is aiming to outturn at budget, however, there are significant pressures in relation to the Schools Long Term Supply scheme which the Directorate will aim to mitigate.  This scheme is an internal insurance policy for schools underwritten by an Education reserve.  The potential pressure is as a result of projected expenditure on long term supply and maternity being in excess of the premiums charged to schools and the amount in the reserve.  The 2016/17 premiums charged to schools will be increased to ensure that the scheme is self- funding in the future. The scheme will continue to be monitored.

8.         Provision has been made within the budget to make unsupported borrowing debt repayments in relation to the Schools Investment Strategy of £698k per annum; any favourable variance on debt repayments will be directed into the Schools Investment Strategy. 

9.         It is anticipated that £108k will be transferred from the Early Retirement and Voluntary Redundancy reserve in respect of the 2015/16 cost of the school scheme.

10.      Libraries - It is anticipated that the Libraries Service will outturn on target after a transfer from the Libraries reserve to fund the costs of the implementation of the Libraries review.

11.      Youth Service– It is anticipated that this service will outturn on target after transferring £52k from the Youth Service reserve to fund NEETS and Gateway To Engagement work in schools. 

12.      Adult Community Learning – This service will outturn at budget after transferring £88k from reserves to fund redundancy and notice payments to staff, which have arisen as a result of reductions in funding from Welsh Government and Cardiff and the Vale College.

13.      Catering - The Catering Client will outturn on target after a transfer of £55k from the Catering reserve to fund the final roll out of the Cashless Catering system.  There are projected underspends on the breakfast club of £38k, revenue costs for the new catering system £9k and payments to the DSO for school meals of £28k, which will also be used to fund the Cashless Catering system rollout.  The trading account is predicting to outturn on target, however, it is still very early in the financial year to predict the year end position.  A more accurate projection will be available following the September schools intake when the level of school meal take up and free school meals eligibility is known.

14.      Other Services - As it is early in the financial year, all other services are anticipated to outturn within budget.

Capital

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

16.      Modular Building Resiting - It has been requested that the following schemes are amalgamated in order to enable a more co-ordinated approach to the procurement and re-location of Ysgol Dewi Sant demountable's to Llangan and Fairfield schools.  The total budget for the amalgamated scheme will be £817k and the scheme name will be Modular Building Resiting Ysgol Dewi Sant.

·           Ysgol Dewi Sant Demountable Re-location £200k

·           Modular Building Resiting £500k

·           Llangan Classroom Base £117k

17.      Members should be aware that Appendix 2 includes requests for unspent committed expenditure that has been slipped from 2014/15 into 2015/16.  This request has been approved by Emergency Powers.

18.      Appendix 3 provides non-financial information on capital construction schemes.

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.

Resource Implications (Financial and Employment)

20.      As detailed in the body of the report

Sustainability and Climate Change Implications

21.      As detailed in the body of the report

Legal Implications (to Include Human Rights Implications)

22.      There are no legal implications

Crime and Disorder Implications

23.      There are no crime and disorder implications

Equal Opportunities Implications (to include Welsh Language issues)

24.      There are no equal opportunity implications

Corporate/Service Objectives

25.      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

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

Consultation (including Ward Member Consultation)

27.      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

Head of Strategy, Community Learning & Resources

 

Responsible Officer:

Jennifer Hill, Director of Learning and Skills

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