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Agenda Item No. 7

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Lifelong Learning) 14th March 2016

 

Report of the Director of Learning and Skills

 

Revenue and Capital Monitoring for the period 1st April 2015 to 31st January 2016

 

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 2015 to 31st January 2016 regarding those revenue and capital budgets, which form this Committee's remit.

Recommendations

It is recommended that :-

  1. Scrutiny Committee note the position with regard to the 2015/16 revenue and capital monitoring.

Reasons for the Recommendations

  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. 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

4,109

(424)

Service Strategy & Regulation

247

233

+14

Strategic & Resources

8,672

8,264

+408

Children & Young People's Partnership

304

302

+2

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 £490k, however, this amount can be offset by £66k funded from the Excluded Pupils reserves and therefore an adverse variance of £424k is currently projected at year end. The adverse variance on alternative curriculum placements of £66k 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 £111k 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 £19k is due to increased numbers of pupils accessing the Pupil Referral Unit. These overspends will be offset by a favourable variance of £67k on staffing costs, £48k on Additional Learning Needs resource units and other favourable variances of £47k. 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 £408k. A favourable variance of £260k 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 £211k, £37k on salaries due to part year vacancies, £30k due to payments to private nurseries as a result of a reduction in non-maintained nursery settings and other variances totalling £31k. There are however significant pressures in relation to the Schools Long Term Supply scheme with an adverse variance of £278k 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 £2k 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 £150k 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 £187k 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 31st January 2016. The following changes have been proposed to the current programme.
  2. Ysgol Bro Morgannwg Kitchen Roof Renewal - A Delegated Authority Request has been used to bring forward £80k from the 2016/17 Education Asset Renewal budget into the 2015/16 Capital Programme to provide a total budget of £330k in the 2015/16 Capital Programme. The reason for bringing forward the funding is that weather permitting, the scheme is anticipated to be completed this financial year.
  3. Llantwit Learning Community - Works on site are currently underway however it is anticipated that this scheme will underspend in 2015/16 by £560k. This is due to a slightly delayed start on site, adverse weather conditions during the ground works phase and the re-programming of the refurbishment works to existing accommodation so that they are undertaken during the summer holidays. This will afford more time and avoid potential for disruption of school activities. It will be requested to carry forward £560k into the 2016/17 Capital Programme.
  4. Penarth Learning Community - It will be requested to carry forward £100k into the 2016/17 Capital Programme due to outstanding works and fees which will be carried out next financial year and the release of retention monies which is not due for payment until 2016/17.
  5. Colcot Primary Unit Roof and Internal Refurbishment - Following discussions with the school, it was agreed that works would include internal refurbishment of the unit in addition to the renewal of the roof, therefore costing an additional £60k. Emergency Powers have been used to increase the budget by £60k, funded by a revenue contribution from the school. The scheme name has been changed to 'Colcot Primary Unit Roof and Internal Refurbishment'.
  6. Modular Building Resiting Ysgol Dewi Sant - The installation of the demountables at Fairfield and Llangan are complete, however, the remaining car park works at Fairfield are planned to be undertaken in the school summer holidays in order to minimise disruption to the school. It will therefore be requested to carry forward £157k into the 2016/17 Capital Programme.
  7. Sandstone Repairs  - Investigation works are now complete and some evaluation work remains outstanding and it is therefore requested to carry forward £110k into the 2016/17 Capital Programme in order for the works to continue next financial year.
  8. Barry Comprehensive School Internal and External Refurbishment Works - The tender process for this scheme had been delayed in order to achieve better design information and has resulted in slippage to the programme of works. It will be requested to carry forward £95k into the 2016/17 Capital Programme.
  9. St Brides Expansion - The planning application for this scheme has been submitted and approved. No expenditure is anticipated this financial year due to the need to complete the statutory process to establish the new nursery. It will therefore be requested to carry forward £32k into the 2016/17 Capital Programme.
  10. Penarth Library Damp Proofing and Lift Works - The order has been placed for the lift refurbishment works, however, Listed Building Consent is required before the damp proofing works can be carried out. Total expenditure this year is anticipated to be £22k and it will therefore be requested to carry forward £6k into the 2016/17 Capital Programme.
  11. 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.
  12. 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 scheme meets this criteria.
  2. Llantwit Learning Community - A valuation covering works undertaken in January 2016 has been carried out but has not yet been processed on the financial ledger, resulting in actual expenditure that is less than the 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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