Agenda item

Context:

To receive information on the revenue outturn position of the Authority at the end of period 4 which represents the financial outturn position for the 2016/17 financial year.

Recommendations proposed to Cabinet:

·         That Members consider a net revenue outturn underspend of £884,000, an improvement of £805,000 on quarter 3 outturn predictions.

·         Members consider a capital outturn spend of £40.03 million against a revised budget of £40.98 million, after proposed slippage of £17.5 million, resulting in a net underspend of £951,000. 

·         Consider and approve the £17.5 million capital slippage recommended, paying attention to those schemes described in para 3.3.6 of the report, where slippage has been requested by the service manager but is not being recommended to slip (£198,000).

·         Considers the use of reserves proposed in para 3.4.1 of the report.

·         Supports the apportionment of general underspend in supplementing reserve levels as described below:

Priority Investment Fund                            £570,000

Redundancy & Pension Reserve             £114,000

IT Transformation Reserve                         £100,000

Capital Receipts Generation Reserve     £100,000

Total                                                               £884,000

·         Members note that the low level of earmarked reserves will severely reduce the flexibility the Council has in meeting the challenges of scarce resources going forward.

·         Members note the significant reduction in the overall school balance at the end of 2016/17 and supports the continuing work with schools to ensure that the Council’s Fairer Funding scheme requirements are met and that the overall schools balance remains positive in 2017/18.

Member scrutiny:

·         Chepstow Comprehensive School has made significant improvements in reducing its budget deficit.

·         There has been a significant decrease in schools’ budget reserves across the County in this financial year.

·         It was noted that it was the responsibility of school governors to set their schools’ budgets.  It was recognised that there are fixed costs within schools.  However, where there are areas in which schools can make savings, officers are working closely with schools to ensure that the savings are utilised.

·         There are a number of projects ongoing within schools looking at ways in which the schools might be able to save money.

·         Officers are working closely with the WLGA and are looking at the Business Manager model with a view to achieving some funding.

·         Concern was expressed that some additional responsibilities were going into schools but the funding for these additional responsibilities was not coming forward. The Finance Manager stated that she needed to look into this matter which is occurring across the authority and not just in the Children and Young People Directorate.

·         In response to a question raised regarding Phase 3 of the Additional Learning Needs Review in respect of Mounton House School, it was noted that the school had been allowed a three year recovery plan.  In terms of Deri View Primary School, the Special Needs Resource base (SNRB) is still there.  However, the saving required was made by reducing the numbers of staff due to the fall in pupil numbers.

·         In response to a question raised regard whether schools could work more in clusters with a view to creating more inset days to save money and receive training on the new curriculum, The Finance Manager stated that she would take this matter back to the Chief Officer for Children and Young People.

·         In response to a question raised regarding successful future grant funding from the Education Achievement Service (EAS) equating to £0, the Finance Manager informed the Committee that the grant funding became available in 2016/17 and it wasn’t allocated at that time when the Authority received the grants, it was to be used across the schools. For example, for the Abergavenny cluster, the Authority had received a grant which was to be divided amongst the schools.  At the end of the year the money had been spent by the schools.