Agenda Item No. 6

 

The Vale of Glamorgan Council

 

Learning and Culture Scrutiny Committee: 16th October 2018

 

Report of the Director of Learning and Skills

 

Revenue and Capital Monitoring for the period 1st April to 31st August 2018

 

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 2018 regarding those revenue and capital budgets, which form this Committee's remit

Recommendation

It is recommended that :-

  1. Scrutiny Committee consider the position with regard to the 2018/19 revenue and capital monitoring.

Reason for the Recommendation

  1. That Members are aware of the position with regard to the 2018/19 revenue and capital monitoring relevant to this Scrutiny Committee.

Background

  1. On 28th February 2018, Council approved the Revenue and Capital budgets for 2018/19 (minute no 746 and 745 respectively).  Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options

Revenue

  1. The forecast is showing an overspend of £200k after an anticipated use of reserves however the Directorate has been requested to look at ways of mitigating this position to deliver an outturn within budget at year end.

Learning & Culture          

   Amended

Revenue

Budget

   Probable

Outturn

Variance

   (+ ) Favourable

(-) Adverse

 

£000

£000

£000

Schools

84,458

84,458

0

Strategy, Culture, Community Learning & Resources

11,530

11,488

+42

Directors Office

232

205

+27

Achievement for All

4,650

5,071

(421)

School Improvement

1,058

1,013

+45

Unplanned use of reserve to fund overspend

0

(107)

+107

Additional savings to be found

0

(200)

+200

TOTAL

101,928

101,928

0

  1. Schools - The delegated budget relating to schools is expected to balance as any under/over spend is carried forward by schools.
  2. Strategy, Culture, Community Learning and Resources - It is anticipated that this budget will outturn with a favourable variance of £42k.  There are favourable variances of £73k on staffing, £43k on Libraries, £10k on independent nursery placement costs, £20k relating to school repairs and £29k on the reversing of a commitment from a historic grant.  Against this, there is an anticipated overspend of £133k on mainstream transport.  This is mainly due to the increased price in certain contracts since a contractor's licence was revoked. These routes had to be retendered and there has been a general increase in prices.  There will be a planned transfer from reserves of £552k.  £312k will be required from the Schools Rationalisation reserve to fund one off costs in relation to the transformation of secondary schools in Barry, £187k of the Catering reserve will be used to invest in Catering equipment and update the service's ICT infrastructure, £28k will be transferred from the School Deferred Pension reserve to fund in year pension strain costs of early retirement and £25k will be transferred from the Schools Invest to Save reserve to fund redundancy costs in schools.
  3. Directors Office - It is anticipated that this budget will outturn with a favourable variance of £27k due to a post being held vacant to partly mitigate the overspend elsewhere in the Directorate.
  4. Achievement for All - It is anticipated that this service will overspend by £421k at year end before a transfer of £107k from reserves to fund overspends.  The complex needs Out of County placements, independent placements and Looked After Children residential placements budget will overspend in total by £315k.  There is an overspend of £99k relating to the resource bases and outreach teams.  There is an overspend of £82k on the provision for pupils not educated at schools (EOTAS) and £25k in the Youth service due to one off restructuring costs, with both these overspends totalling £107k being funded from the Youth Service reserve.  This adverse position will be offset by a favourable variance of £100k relating to recoupment income.
  5. School Improvement - It is anticipated that this budget will outturn with a favourable variance of £45k due to a senior post being held vacant to partly mitigate the overspend elsewhere in the Directorate.

2018/19 Savings Targets

  1. As part of the Final Revenue Budget Proposals for 2018/19, a savings target of £6.298m was set for the Authority.  Attached at Appendix 1 is a statement detailing all savings targets relating to this Committee. 
  2. It is anticipated that the saving target will be met this year.

Capital

  1. Appendix 2 details financial progress on the Capital Programme as at 31st August 2018.
  2. Dinas Powys Primary External Learning Area/Internal Alterations - Delegated authority was given on 23rd July 2018 to approve the inclusion of £35k in the 2018/19 Capital Programme and £50k in the 2019/20 Capital Programme, funded from S106 monies.  The funding will be used to create an external learning area and improve access and to undertake internal alteration to enhance education provision.
  3. Cowbridge Comprehensive Boiler Replacement - The main boilers serving Block A had developed a major fault. It was decided that the most economical solution was to replace the boilers.  £39k has been transferred from the Education Asset Renewal Contingency budget to fund this work which was approved via emergency powers on 30th July 2018.
  4. St Richard Gwyn Curtain Walling Replacement - Following a tender process and an agreed bill of reduction, the lowest compliant tender resulted in a shortfall in the budget of £22k.  The Roman Catholic Diocese of Llandaff have agreed to fund this shortfall and an emergency powers was approved on 9th July 2018 to increase the scheme by this sum.
  5. Llansannor Extension - The design for the scheme is currently being finalised however work will not be able to start on site until the Easter holidays 2019.  It has been requested that £105k is carried forward into the next financial year.
  6. Victorian Schools - Works with a value of £690k are due to take place this year at 7 schools, some of which are already on site.  Due to the limited pool of stone masons and the onset of winter, no further contracts will be let this financial year.  It has been requested that £700k is carried forward into 2019/20. 
  7. St Richard Gwyn R/C High Boiler Upgrade - The boiler upgrade scheme at St Josephs Primary School is anticipated to exceed the approved budget however the boiler upgrade scheme at St Richard Gwyn High School is anticipated to be under budget. Delegated authority was approved on 4th July 2018 to vire £4k from the St Richard Gwyn scheme to the St Josephs Primary School scheme to allow both schemes to proceed.
  8. Unallocated Education Asset Renewal - It has been proposed that this allocation is used to fund works to the roof at Peterston School.  It will not be possible to carry out the works through the winter months and it has been requested that the budget is carried forward into 2019/20 for the works to be commenced.

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

Officers Consulted

Head of Strategy, Community Learning & Resources

Responsible Officer:

Paula Ham

Director of Learning and Skills