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Agenda Item No. 4

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Lifelong Learning) 8th February 2016

 

Report of the Director of Learning and Skills

 

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

4,183

(498)

Service Strategy & Regulation

247

233

+14

Strategic & Resources

8,672

8,196

+476

Children & Young People's Partnership

304

296

+8

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 £565k, however, this amount can be offset by £67k funded from the Excluded Pupils reserves and therefore an adverse variance of £498k 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 £456k 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 £136k 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 £17k is due to increased numbers of pupils accessing the Pupil Referral Unit. These overspends will be offset by a favourable variance of £61k on staffing costs and other income and £50k on Additional Learning Needs resource units. 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 £14k 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 £476k. A favourable variance of £263k has arisen as a result of a rates refund due to the revaluation of school buildings, which has been backdated up to five years. This underspend has been offset by the increased rates bill for St Cyres of £161k. There continues to be favourable variances on the transport budget of £216k, £35k on salaries due to part year vacancies, £48k due to payments to private nurseries as a result of a reduction in non-maintained nursery settings and other variances totalling £75k. There are however significant pressures in relation to the Schools Long Term Supply scheme with an adverse variance of £216k 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 £8k 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 £178k 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 £3k 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 £94k 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 £217k 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.
  13. 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 December 2015. The following changes have been proposed to the current programme.
  2. Gwenfo Primary Expansion - There have been delays in progressing the scheme and works will now commence during the Easter Holidays. It will be requested to carry forward £60k into the 2016/17 Capital Programme.
  3. Romilly Demountable - It is anticipated that this scheme will overspend by £5k due to the requirement to undertake some additional works. It is proposed to fund the £5k overspend from within the existing Education capital budget, from the Sandstone Repairs scheme, which is projected to underspend and the necessary virement will therefore be requested.
  4. Llanfair Demountable - It is anticipated that this scheme will overspend by £25k. The initial budget was based on the limited information available at the time. As a result, additional works have been identified during the course of the project which have resulted in increased costs (e.g. demolition of redundant accommodation, works in connection with drainage and external services, hard/soft landscaping, play equipment, etc.). It is proposed to fund the £25k overspend from within the existing Education capital budget, from the Sandstone Repairs scheme, which is projected to underspend and the necessary virement will be requested.
  5. Penarth Library Damp Proofing and Lift Works - The order for the lift has been placed, however, the damp proofing works require listed building consent to be obtained. The listed building consent is anticipated to be submitted by the end of the financial year therefore that part of the scheme will be delayed until this is granted. It is therefore requested to carry forward £60k into the 2016/17 Capital Programme.
  6. 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.
  7. 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