The Vale of Glamorgan Council

Learning and Culture Scrutiny Committee: 22nd January 2018

Report of the Director of Learning and Skills

Revenue and Capital Monitoring for the period 1st April to 30th November 2017

Purpose of the Report

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 2017 regarding those revenue and capital budgets, which form this Committee's remit.

Recommendation

It is recommended that :-

Scrutiny Committee consider the position with regard to the 2017/18 revenue and capital monitoring.

Reason for the Recommendation

That Members are aware of the position with regard to the 2017/18 revenue and capital monitoring relevant to this Scrutiny Committee.

Background

Council on the 1st March 2017 (minute nos. 864 and 863 respectively) approved the Revenue and Capital Budgets for 2017/18. Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options

Revenue

The forecast is projected to be an overspend of £258k after an anticipated use of Learning and Skills reserves of £603k. The Directorate has already taken a number of steps to mitigate the complex needs overspend including freezing non-essential expenditure and holding budgeted posts vacant. Whilst every effort continues to be made to decrease the net overspend, it is looking increasingly unlikely that the Directorate will outturn at budget by the end of the financial year. As it is already planned that a substantial amount of Learning and Skills reserves will be utilised in the year, it has been proposed that the remaining shortfall of £258k will be funded from the Council Fund.

Learning & Culture	Amended Revenue Budget	Probable Outturn	Variance (+ ) Favourable (-) Adverse
	£000	£000	£000
Schools	82,957	82,957	0
Strategy, Culture, Community Learning & Resources	11,014	11,333	-319
Strategy and Regulation (Now Directors Office)	235	205	+30
Achievement for All	3,840	4,490	-650
School Improvement	1,102	1,024	+78
Use of Reserves to Offset Overspend	0	(603)	+603
Use of Council Fund	0	(258)	+258
TOTAL	99,148	99,148	0

A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.
Schools - The delegated budget relating to schools is expected to balance as any under/over spend is carried forward by schools.
Strategy, Culture, Community Learning & Resources - It is projected that the service will outturn on budget after drawing down £319k from reserves. There is an adverse variance of £97k relating to the schools long term supply scheme, however, premiums will be increased from April 2018 to ensure the scheme is sustainable in the future. There is an adverse variance of £93k anticipated on education transport which is managed within the Environment and Housing Directorate. There are also adverse variances of £24k in relation to primary school rates revaluations. This is offset by favourable variances of £106k relating to staff vacancies, £34k on ICT SLA income from schools, pension payments of £42k, £17k relating to Broadband and union backfilling of £15k. The Catering service will draw down £109k from the Catering reserve to outturn at budget to fund urgent gas works required in schools as well as the school holiday enrichment programme. The Schools Invest to Save Reserve will be used to cover the £36k adverse variance in relation to redundancies in schools, which is covered by a statutory requirement to be funded centrally. £106k from the Rationalisation reserve will be used to fund revenue costs in relation to the Barry Secondary school transformation, £22k from the Rationalisation Reserve will be used to fund one off staffing costs at Penarth Learning Community, a further £20k of the Rationalisation Reserve will be used to fund the cost of Welsh immersion for primary pupils transferring from English medium to Welsh medium schools and £17k will be transferred from the rationalisation reserve to cover amalgamation costs at St. Helen's Primary school. £9k of the Adult Community Learning reserve will be used to cover the adverse variance which is as a result of maintaining the service following a reduction in funding from Cardiff and Vale Colleges.
Strategy and Regulation - It has been requested by the service that this heading is now referred to as the Directors Office. It is anticipated that this service will underspend by £30k due to a freeze on expenditure and non-replacement of one post which has been held vacant in order to partially mitigate the overspend on complex needs.
Achievement for All - This service is currently predicted to outturn with an adverse variance of £650k which will be partially met by transfers from reserves of £284k resulting in an adverse variance at year end of £366k. A £403k adverse variance is projected on the recoupment income budget. This budget is set for recouping income from other Local Authorities that purchase placements at Ysgol Y Deri. The budget has been under pressure for a number of years as a result of a demographic increase in the number of Vale pupils presenting with complex needs which has resulted in less placements being available for other Authorities to purchase. In addition, other Authorities have developed their own provision and the level of demand has reduced. The adverse variance will be partially offset by a transfer from the School Placement Reserve of £200k. It is anticipated that the Social Inclusion and Wellbeing service will overspend by £47k due to the remodelled guidance to engage NEETs prevention service. This overspend will be offset by a transfer from the Youth reserve of £47k. A £200k adverse variance is projected for the pupil placements budget. Occasionally we are unable to meet the needs of very complex pupils within Vale of Glamorgan resources and placements are purchased from independent schools or other Authorities. Unit costs are typically very high and as a result this budget can be volatile as one new pupil can have a dramatic effect on the outturn. There has been a significant increase in the number of pupils with social and emotional behavioural issues at Key Stage 3 and 4 whose needs cannot be met within our schools or the Pupil Referral unit. As a result the Directorate has found no alternative but to place these pupils with external providers which has increased the adverse position in this area. This overspend will be partially offset by a transfer from the Excluded Pupil reserve of £37k.
School Improvement - It is anticipated that this service will underspend by £78k due to a freeze on expenditure and non-replacement of a senior post which has been held vacant in order to partially mitigate the overspend on complex needs.
Provision has been made within the budget to make unsupported borrowing debt repayments in relation to the Schools Investment Strategy of £598k per annum and any favourable variance on debt repayments will be directed into the Schools Investment Strategy.

2017/18 Savings Targets

Attached at Appendix 2 is a list of savings to be achieved this year for this Committee. It is anticipated that the savings target will be met this year.

Capital

Appendix 3 details financial progress on the Capital Programme as at 30th November 2017.
Jenner Park School Multi Use Games Area- A delegated authority has been approved to include a new scheme of £20k into the Capital Programme to be funded from s106 monies.
Oakfield/Ysgol Gwaun Y Nant Community Garden Project - A delegated authority has been approved to include a new scheme of £39k into the Capital Programme to be funded from s106 monies. £3k is allocated to 2017/18 and £36k allocated to 2018/19. This scheme will create an outdoor educational area for environmental learning.
Peterston Super Ely Primary WC Refurbishment - A delegated authority has been approved to vire £9k from this scheme to Fairfield Primary Nursery Adaptions scheme. The original budget for Fairfield Primary School was £20k however after quotations were returned a budget of £29k was required. The additional cost has been incurred due to changes to the design of the project which only became apparent after more detailed development work had been carried out. The Peterston Super Ely Primary Toilet works were completed under budget with an underspend of £9k.
St. Cyres Comprehensive Grounds Maintenance Store - It has been requested that a new scheme is included in the Capital Programme for a steel grounds maintenance shed at St. Cyres Comprehensive School in order to store grounds maintenance equipment. The total budget for these works is £36k to be funded from the Schools Rationalisation reserve.
Llancarfan Primary School Decking - It has been requested that a new scheme is included in the 2017/18 Capital Programme for decking at Llancarfan Primary School. The total budget for these works is £13k to be funded from the School's revenue budget.
Victoria Primary - External Refurbishment Works - This scheme is complete and is £7k underspent. There are several schemes relating to previous years with small levels of spend. It has been requested to make the following virements:-

- £1k to Albert Primary School listed buildings fabric repairs

- £1k to Fairfield Primary School replacement flat roof

- £1k to Ysgol Sant Curig - re-roofing and replace defective timbers

- £1k to Llanfair Demountable

- £2k to Romilly Demountable

- £1k to Demolition Ysgol Maes Dyfan.

Bryn Hafren Kitchen Canopy - It has been requested that a new scheme is included in the 2017/18 Capital Programme for a canopy in Bryn Hafren kitchen. The total budget for these works is £13k to be funded from the Catering revenue budget.
Ysgol Bro Morgannwg Kitchen Canopy - It has been requested that a new scheme is included in the 2017/18 Capital Programme for a canopy in Ysgol Bro Morgannwg kitchen. The total budget for these works is £10k to be funded from the Catering revenue budget.
St. Illtyds School Kitchen Refurbishment - It has been requested that a new scheme is included in the 2017/18 Capital Programme for a refurbishment to St. Illtyd's kitchen. The total budget for these works is £31k to be funded from the Catering revenue budget.
Cadoxton Primary School Kitchen Refurbishment - It has been requested that a new scheme is included in the 2017/18 Capital Programme for a refurbishment to Cadoxton Primary School kitchen. The total budget for these works is £31k to be funded from the Catering revenue budget.

Resource Implications (Financial and Employment)

As detailed in the body of the report.

Sustainability and Climate Change Implications

As detailed in the body of the report.

Legal Implications (to Include Human Rights Implications)

There are no legal implications.

Crime and Disorder Implications

There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

There are no equal opportunity implications.

Corporate/Service Objectives

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

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

Consultation (including Ward Member Consultation)

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

Officers Consulted

Head of Strategy, Community Learning and Resources

Responsible Officer:

Paula Ham, Director of Learning and Skills