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Agenda Item No

The Vale of Glamorgan Council

 

Scrutiny Committee (Lifelong Learning) 11th January 2016

 

Report of the Director of Learning and Skills

 

Revenue and Capital Monitoring for the period 1st April to 30th November 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 30th November 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

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

Background

  1. On 16th November 2015, Cabinet approved the Amended Revenue and Capital Budgets for 2015/16 (minute no C2975 and C2974 respectively). 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, however, it is now anticipated that the Learning and Skills Directorate could outturn within budget at year end.

Lifelong Learning               

Amended

Revenue Budget

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Schools

79,616

79,616

0

School Improvement & Inclusion

3,685

4,306

(621)

Service Strategy & Regulation

247

236

+11

Strategic & Resources

8,672

8,074

+598

Children & Young People's Partnership

304

292

+12

Total Education and Schools

92,524

92,524

0

Libraries

2,311

2,311

0

Youth Service

1,030

1,030

0

Adult Community Learning

263

263

0

Catering

1,788

1,788

0

Arts Development

150

150

0

TOTAL

98,066

98,066

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 £688k, however, this amount can be offset by £67k funded from the Excluded Pupils reserves and therefore an adverse variance of £621k is currently projected at year end. The adverse variance on alternative curriculum placements of £67k is projected due to increased demand for the service, however, this will be funded from the Excluded Pupils reserve. An adverse variance of £457k 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 £197k 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. An adverse variance of £20k is due to increased numbers of pupils accessing the Pupil Referral Unit. These overspends will be offset by a favourable variance of £53k on staffing costs and other income. 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 £11k favourable variance due to efficiencies within the Business Support section.
  5. Strategy & Resources - This service is now anticipating a favourable variance at year end of £598k. A favourable variance of £240k has arisen as a result of a rates refund due to the revaluation of school buildings, which has been backdated up to five years. There continues to be favourable variances on the transport budget of £225k, £54k 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 other small variances of £30k. There are however significant pressures in relation to the Schools Long Term Supply scheme with an adverse variance of £221k anticipated and the Early Retirement and Voluntary Redundancy scheme also projecting an adverse variance of £200k. Both these overspends will be funded from the respective reserves.
  6. Children and Young Peoples Partnership - It is anticipated that this service will outturn at a favourable variance of £12k 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 to outturn within budget after a transfer from the Libraries reserve of £103k to fund one off costs in relation to the implementation of the Libraries Review.
  9. Youth Service - It is anticipated that this service will outturn within budget after a transfer of £13k from the Youth Service Reserve. This additional expenditure is being used to fund NEETS and Gateway To Engagement work in schools.
  10. Adult Community Learning - It is anticipated that this service will outturn within budget after a £85k transfer from the Adult and Community Learning reserve. 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 - This service is anticipated to outturn within budget after a transfer of £221k from the Catering reserve. The transfer from the reserve will fund the final payment of the cashless catering system and the conversion of dining centres into kitchens in four primary schools.
  12. Arts Development - It is anticipated that this service will outturn within budget at year end.

Capital

  1. Appendix 2 details financial progress on the Capital Programme as at 30th November 2015. The following changes have been proposed to the current programme.
  2. Penarth Library Damp Proofing - As part of the original bid, it was stated that works would need to be carried out to the lift to allow the damp proofing to be undertaken. To ensure easier identification of works, it has been requested that this scheme is renamed 'Penarth Library Damp Proofing and Lift Works'.
  3. Llantwit Learning Community - The South East Wales Schools Capital Working Group Framework (SEWSCAP) is used to procure works for schools. The SEWSCAP1 framework expired in April this year and has been replaced by the second iteration SEWSCAP2. Fees have been collected from contractors appointed under the framework during this time in order to fund the management of the framework. Now the framework has finished, the interim accounts have been produced. All costs associated with managing SEWSCAP1 have been accounted for and the Framework Board has agreed that the surplus fees collected should be distributed back to the Local Authority users of the framework during the framework term. The basis for repayment to authorities was based upon the spend of each organisation. The Vale of Glamorgan Council have received £41,479 as their share. It has been requested that the Llantwit Learning Community budget is increased by £41,479, with funding being used towards the main works carried out within the Learning Community.
  4. Overboarding Ceilings - The scheme budget totals £720k and was allocated to these urgent works from the original Victorian Schools allocation by Emergency Powers in July 2015. These works are now complete and the total required budget is £623k. It has been requested that the £97k underspend is vired to the Sandstone Repairs budget. The sandstone repairs scheme also forms part of the overall urgent works to Victorian Schools.
  5. Victoria Primary External Refurbishment Works - The scheme budget totals £270k and was allocated to these urgent works from the original Victorian Schools allocation by Emergency Powers in July 2015. These works are now complete and the total required budget is £220k. It has been requested that the £50k underspend is vired to the Sandstone Repairs budget. The sandstone repairs scheme also forms part of the overall urgent works to Victorian Schools.
  6. St Helen's Infant School Works - This is a new scheme which will be funded by the school. It is for works to form a new office, a new storeroom and to enlarge a classroom at St Helen's Infant School. It has been requested that the 2015/16 Capital Programme is increased by £28,531.
  7. Rhws Primary Guttering - Emergency Powers have been used to increase the scheme budget by £22k due to additional costs associated with health and safety requirements. In addition, the scope of works increased to renew the guttering to the complete school in a single phase instead of the original planned two phases, thereby reducing the overall site set up costs. This has been funded from within the existing Education Capital Programme from underspends on various schemes.
  8. Llanfair Demountable - Emergency Powers have been used to increase the scheme budget by £69k due to additional works that were identified during the course of the project which resulted in increased costs e.g. demolition of redundant accommodation, works in connection with drainage and external services, hard/soft landscaping, play equipment. This has been funded from within the existing Education Capital Programme from underspends on various schemes.
  9. 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.
  10. 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 as amendments to programming/sequencing of works has resulted in actual expenditure that is less than the initial spend profile : Penarth Learning Community, Llantwit Learning Community and Modular Building Resiting Ysgol Dewi Sant. The budgets for these schemes are currently being re-profiled for the remainder of the year and changes will be reported as part of the ongoing capital monitoring process. 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