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Agenda Item No. 5

The Vale of Glamorgan Council

 

Scrutiny Committee (Lifelong Learning): 7th September 2015

 

Report of the Director of Learning and Skills

 

Revenue and Capital Monitoring for the Period 1st April to 31st  July 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 July 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

  1. Council on the 4th March 2015 (minute nos. 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

  1. The Revenue budget and projected outturn for 2015/16 are shown in the following table. The Learning and Skills Directorate is aiming to outturn within budget after making transfers from reserves as detailed by service area later in this report. There are however significant pressures within the Inclusion Service with regard to inter Authority recoupment.

Lifelong Learning               

Revenue Budget

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Schools

79,586

79,586

0

School Improvement & Inclusion

3,714

3,880

(166)

Service Strategy & Regulation

247

247

0

Strategic & Resources

8,880

8,714

+166

Children & Young People's Partnership

304

304

 

Total Education and Schools

92,731

92,731

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

98,154

98,154

0

       
  1. A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.
  2. Schools - The delegated budget relating to schools is expected to balance as any under/over spend is carried forward by schools.
  3. School Improvement & Inclusion - This service is projecting an adverse variance of around £236k, however, this amount can be offset by £70k funded from the Excluded Pupils reserves and therefore an adverse variance of £166k is currently projected at year end. There are significant pressures within the Inclusion budget due to a decrease in inter authority recoupment income 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. The Directorate is seeking ways to mitigate this overspend as part of the longer term Reshaping Services agenda.
  4. Service Strategy and Regulation - It is anticipated that this service will outturn on target at year end.
  5. Strategy & Resources - This service is anticipating a favourable variance at year end of £166k, with favourable variances on the transport budget of £65k, £52k on salaries due to part year vacancies and £49k due to payments to private nurseries as a result of a reduction in non-maintained nursery settings. There are however significant pressures in relation to the Schools' Long Term Supply scheme, £200k adverse variance and the Early Retirement and Voluntary Redundancy scheme, £113k adverse variance. Both these overspends will be funded from the respective reserves.
  6. Children and Young Peoples Partnership - It is anticipated that this service will outturn on target at year end.
  7. 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.
  8. Libraries - This service is projecting an adverse variance of £112k, however, this amount can be funded from the Library reserve and therefore a breakeven position is anticipated at year end. The overspend has arisen as a result of the one off costs associated with the implementation of the Libraries review.
  9. Youth Service- This service is projecting an adverse variance of £52k, however, this amount can be funded from the Youth Service Reserve and therefore a breakeven position is anticipated at year end. This additional expenditure is being used to fund NEETS and Gateway To Engagement work in schools.
  10. Adult Community Learning - This service is projecting an adverse variance of £90k, however, this amount can be funded from the Adult and Community Learning reserve and therefore a breakeven position is anticipated at year end. The overspend is due to 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.
  11. Catering - The Catering client budget is projecting an adverse variance of £35k however, this amount can be funded from the Catering Reserve and therefore a breakeven position is anticipated at year end. This transfer from reserves will fund the final instalment of the new cashless catering system within schools. There are also underspends on the breakfast club, revenue costs for the new catering system and payments to the DSO for school meals which will also be used to fund the cashless catering system. The trading account is predicting to outturn on target however it is still very early in the financial year. 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.
  12. Attached at Appendix 2 to this report is a statement showing the progress made to date against the 2015/16 savings targets. The majority of savings will be achieved this year however the £83k not anticipated to be made will be considered as part of the larger review of the Additional Learning Needs service under the Reshaping Services agenda.

Capital

  1. Appendix 3 details financial progress on the Capital Programme as at 31st July 2015.
  2. Victorian Schools - Emergency Powers have been used to vire the budget of £1.061m to specific schemes as follows:
  • Victoria Primary School: External Refurbishment Works £270k
  • Overboarding Lath and Plaster Ceilings £741k
  • Sandstone Repairs £50k.
  1. Ysgol Maes Dyfan Marketing - Emergency Powers have been used to include a budget of £8k in the Capital Programme for Ysgol Maes Dyfan Marketing. This scheme will be funded from Capital Receipts.
  2. Education Asset Renewal - The Education Asset Renewal budget was agreed by Cabinet on 23rd February 2015, minute number C2650. Recommendation 3 stated "THAT the Managing Director or Head of Finance, in consultation with the Cabinet Member responsible for Finance, be given delegated authority to make additions, deletions or transfers to or from the 2015/16 to 2019/20 Asset Renewal budgets as appropriate". This delegated authority has been used to vire £5k from the Ysgol Sant Baruc Rewire scheme to the Peterston-Super-Ely Primary - Renew Electric Heaters scheme.
  3. Appendix 4 provides non-financial information on capital construction schemes with a budget of over £100k. Where a budget shown in Appendix 3 is more than £100k but is made up of several schemes that individually are less than £100k, the scheme is not included in Appendix 4.
  4. 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.

Variance between Actual Spend to date and Profiled Spend

  1. 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 schemes meet this criteria:-
  2. Penarth Learning Community - Amendments to the programming/sequencing of works has resulted in actual expenditure being less than the initial spend profile. This does not adversely affect the final cost of the project.
  3. Modular Building Re-siting Ysgol Dewi Sant - Amendments to the programming/ sequencing of works has resulted in actual expenditure being more than the initial spend profile. This does not adversely affect the final cost of the project.

Resource Implications (Financial and Employment)

  1. As detailed in the body of the report.

Sustainability and Climate Change Implications

  1. As detailed in the body of the report.

Legal Implications (to Include Human Rights Implications)

  1. There are no legal implications.

Crime and Disorder Implications

  1. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

  1. There are no equal opportunity implications.

Corporate/Service Objectives

  1. 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

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

Consultation (including Ward Member Consultation)

  1. 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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