Agenda Item No. 5
The Vale of Glamorgan Council
Scrutiny Committee (Lifelong Learning) 23rd June 2014
Report of the Chief Learning and Skills Officer
Revenue and Capital Monitoring for the period 1st April to 30th April 2014
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 April 2014 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 2014/15 revenue and capital monitoring.
Reason for the Recommendation
1. That Members are aware of the position with regard to the 2014/15 revenue and capital monitoring relevant to this Scrutiny Committee.
Background
2. Council on the 5th March 2014 (minute nos 884 and 883 respectively) approved the Revenue and Capital Budgets for 2014/15. Reports monitoring expenditure are brought to this Committee on a regular basis.
Relevant Issues and Options
Revenue
3. The Revenue Budget and projected outturn for 2014/15 are shown in the following table. It is anticipated that the projected outturn for 2014/15 will be in line with the budget. This is after making a contribution to the Capital Investment reserve of £435k.
|
Lifelong Learning |
Revenue Budget
|
Probable Outturn |
Variance
(+ ) Favourable
(-) Adverse |
|
|
£000 |
£000 |
£000 |
|
Schools |
78,605 |
78,605 |
0 |
|
School Improvement & Inclusion |
4,274 |
4,274 |
0 |
|
Service Strategy & Regulation |
241 |
241 |
0 |
|
Strategic & Resources |
10,249 |
10,249 |
0 |
|
Total Education and Schools |
93,369 |
93,369 |
0 |
|
Libraries |
2,589 |
2,589 |
0 |
|
Youth Service |
1,084 |
1,084 |
0 |
|
Adult Community Education |
204 |
204 |
0 |
|
Catering |
1,743 |
1,743 |
0 |
|
TOTAL |
98,989 |
98,989 |
0 |
4. A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.
5. Overall, the Education Budget is projected to balance as at the end of March 2015. Any savings identified between now and the end of the year will be available to re-direct into the School Investment Strategy or other reserves.
6. Schools - The delegated budget relating to schools is expected to balance as any under/over spend is carried forward by schools.
7. Education is projecting to transfer £145k to reserves as part of the Voluntary Early Retirement and Redundancy scheme. This income is in respect of reimbursements from schools relating to redundancies and retirements made in previous years, and will be used to assist schools with timing payments for future retirements and redundancies.
8. Other Services - As it is very early in the financial year, all other services are anticipated to outturn within budget.
Capital
9. Appendix 2 details financial progress on the Capital Programme as at 30th April 2014.
10. The monitoring report shows actual expenditure for the month of April 2014 and is matched by a similar figure in the profile to date column, thereby showing no variances. Profiled expenditure has been requested from Project Managers and will be updated in the next report.
11. Members should be aware that Appendix 2 does not include requests for unspent committed expenditure to be slipped from 2013/14 into 2014/15. A request for this slippage will be included in the Closing Down report presented to a future Cabinet meeting.
12. Emergency powers have been used to approve the inclusion of £40k of s106 monies into the Capital Programme for a classroom extension at Llanfair School.
13. Welsh Government (WG) is providing funding for the 21st Century School programme. In April 2014, WG notified the Council that some of the funding will be in the form of unsupported borrowing instead of a revenue grant. The Council will be expected to borrow; however, WG will provide revenue funding to cover the cost of the loan. In 2014/15 this will be via a specific grant and from 2015/16 the funding will be distributed through the Revenue Support Grant. This has no impact on the value of the Capital Programme, only the way in which it is funded. Cabinet and Council will be requested to approve the use of unsupported borrowing. The table below shows the sums to be borrowed between 2014/15 and 2016/17 and the corresponding borrowing costs provided by WG.
|
Period |
Loan Value/Sum Invested
£ |
Loan Charges Funded by WG
£ |
|
2014/15 |
923,252 |
53,651 |
|
2015/16 |
1,187,038 |
68,980 |
|
2016/17 |
527,573 |
30,658 |
|
TOTAL |
2,637,863 |
153,289 |
14. 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.
Resource Implications (Financial and Employment)
15. As detailed in the body of the report
Sustainability and Climate Change Implications
16. As detailed in the body of the report
Legal Implications (to Include Human Rights Implications)
17. There are no legal implications
Crime and Disorder Implications
18. There are no crime and disorder implications
Equal Opportunities Implications (to include Welsh Language issues)
19. There are no equal opportunity implications
Corporate/Service Objectives
20. 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
21. The report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
22. 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
Chief Learning and Skills Officer
Head of Strategic Planning and Performance
Responsible Officer:
Jennifer Hill, Chief Learning and Skills Officer