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Agenda Item No

The Vale of Glamorgan Council

 

Scrutiny Committee (Lifelong Learning) 12th October 2015

 

Report of the Director of Learning and Skills

 

Revenue and Capital Monitoring for the period 1st April to 31st August 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 August 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 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

  1. The Revenue budget and projected outturn for 2015/16 are shown in the following table. There are significant pressures within the Inclusion Service in relation to inter authority recoupment and it is now anticipated that the Learning and Skills Directorate could outturn with an overspend of around £175k at year end.

Lifelong Learning               

Revenue Budget

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Schools

79,586

79,586

0

School Improvement & Inclusion

3,714

4,181

(467)

Service Strategy & Regulation

247

241

+6

Strategic & Resources

8,880

8,610

+270

Children & Young People's Partnership

304

288

+16

Total Education and Schools

92,731

92,906

(175)

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

98,329

(175)

       
  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 £537k, however, this amount can be offset by £70k funded from the Excluded Pupils reserves and therefore an adverse variance of £467k is currently projected at year end. The adverse variance on alternative curriculum placements of £70k is projected due to increased demand for the service, however, this will be funded from the Excluded Pupils reserve. An adverse variance of £380k is anticipated on inter authority recoupment income. Increased demand for Vale pupils requiring placements in Ysgol Y Deri has resulted in fewer placements available for other authorities to purchase. An adverse variance of £102k is projected on pupil placements in independent schools and other authorities due to an increase in the number of pupils with significant needs that are unable to be met at Ysgol Y Deri. These overspends will be offset by a favourable variance of £15k on staffing costs due to part year vacancies within teams. 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 with a £6k favourable variance due to efficiencies within the Business Support section.
  5. Strategy & Resources - This service is anticipating a favourable variance at year end of £270k. There are favourable variances on the transport budget of £149k, £62k on salaries due to part year vacancies, £49k due to payments to private nurseries as a result of a reduction in non-maintained nursery settings and £10k on other supplies and services. There are however significant pressures in relation to the Schools Long Term Supply scheme with an adverse variance of £270k anticipated and the Early Retirement and Voluntary Redundancy scheme also projecting an adverse variance of £163k. Both these overspends will be funded from the respective reserves.
  6. Children and Young Peoples Partnership - It is anticipated that this service will outturn with a favourable variance of £16k due to a part year vacancy in the team.
  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 £131k, 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 £93k, 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.

Capital

  1. Appendix 2 details financial progress on the Capital Programme as at 31st August 2015.
  2. Ysgol Iolo Morganwwg Demountable - Emergency Powers have been used for the inclusion of £50k into the Capital Programme for the purchase of a demountable at Ysgol Iolo Morganwwg. This scheme will be funded by a contribution from the Education revenue budget.
  3. 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.
  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 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.
  3. Llantwit Learning Community - 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.
  4. Modular Building Resiting Ysgol Dewi Sant - Amendments to programming/sequencing of works has resulted in actual expenditure that is 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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