Agenda item

Context:

To scrutinise the revenue and capital outturn positions based on activity data at month 2.

Recommendations proposed to Cabinet:

·         That Members consider a net revenue outturn overspend of £164,000.

·         Members consider a capital outturn spend, forecast by service managers to agree with the budget.

·         Members note that the low level of earmarked reserves, which will severely reduce the flexibility the Council has in meeting the financial challenges of reducing settlements and consequent need to re-design services.

·         Members note the significant forecast reduction in the overall school balance at the end of 2017/18 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 reverts to  positive position at the earliest opportunity. 

Member Scrutiny:

·         Concern was expressed regarding the number of schools across the County currently carrying a negative budget.  In response, it was noted that across Wales secondary school balances are reducing and primary school balances are being maintained. There is a pressure around examination fees in secondary schools and there has been a reduction in Post 16 funding from Welsh Government.  This has had a negative effect on some schools’ balances. Officers are working with schools regarding recovery plans with a view to allowing the schools to recover but to be able to maintain standards.

·         Chepstow Comprehensive School had been in debt to the sum of £400,000 four years ago but had now recovered over this period and was now carrying a surplus budget.

·         Last year the Authority received late notification from Welsh Government regarding a reduction in Post 16 funding.  For Monmouth Comprehensive School this equated to a reduction of £216,000 which comprised of 60% of the school’s deficit budget. 28% of King Henry VIII Comprehensive School’s budget was caused by the reduction in this grant.  These reductions in schools’ budgets fell outside of the management of schools.  Officers are working with these schools with a view to undertaking a rapid recovery path with regard to their finances.

·         In terms of the overall deficit position of Monmouthshire’s schools, Monmouth Comprehensive and King Henry VIII Comprehensive schools make up the most significant element of this issue.

·         With regard to Additional Learning Needs (ALN), a wide ranging review of ALN has been undertaken over the previous 12 months. That report, with the case for some financial changes, will be presented to the Children and Young People Select Committee in October 2017.

·         Via the ALN review, the Authority is looking to ensure that interventions are early, in the main stream, that there are effective resource bases in the north and south of the County that pupils are able to access easily.  Also, to provide more significant interventions higher up the levels of intervention that will preclude the Authority from having to send the children out of County.  The most pressing need is around speech and language.  New units are being looked at in the north of the County.  An ALN regional advisor will be appointed shortly.

·         In terms of surplus places there are challenges across the County. As at January 2017, the Chepstow whole cluster had 14% surplus places, of which 10% of that total were in the primary sector. The Authority is working with its schools and with governing bodies to ensure that the challenges of surplus places are being addressed.  More regional working will take place in due course when the pressures are fully understood.

·         The work of the business managers has been very good in Chepstow. The Authority has looked to support two of its clusters of schools in a pilot phase around how business managers can help all schools and this is happening in the Chepstow and Abergavenny clusters.  The Welsh Government Cabinet Secretary has announced a package of funding for this across Wales.  All four of Monmouthshire’s clusters will be involved in this and the Authority is match funding the Welsh Government Grant to ensure that this takes place.