Agenda item

Purpose:

1. The purpose of this report is to provide Members with information on the revenue and capital outturn position of the Authority at the end of reporting period 3 which represents the financial outturn position for the 2017/18 financial year.

2. This report will also be considered by Select Committees as part of their responsibility to,

• assess whether effective budget monitoring is taking place,

• monitor the extent to which budgets are spent in accordance with agreed budget and policy framework,

• challenge the reasonableness of projected over or underspends, and

• monitor the achievement of predicted efficiency gains or progress in relation to savings proposals.

Recommendations Proposed To Cabinet

1. That Members consider a net revenue outturn unspend of £653,000, an improvement of £694,000 on period 2 (month 7) outturn predictions.

2. Members consider a capital outturn spend of £46.8 million against a revised budget of £47.2 million, after proposed slippage of £11.8 million, resulting in a net underspend of £395k.

3. Considers the use of reserves proposed in para 3.7.1,

4. Supports the apportionment of general underspend in supplementing reserve levels as described in para 3.7.3 below, i.e.:

Priority Investment Fund £155k

Capital Receipts Generation Reserve £50k

Balance Invest to Redesign Reserve £448k

Total £653k

5. Members note that the low level of earmarked reserves will notably reduce the flexibility the Council has in meeting the challenges of scare resources going forward.

6. Members notes the extent of movements in individual school balances placing emphasis on schools to review the extent that recovery plans can be delivered over shortened timescales, and appreciates a net use of balances of only £94k instead of the original budgeted intention of schools to draw on balances by £877k.

Member Scrutiny:

·         A question was asked about school transport for one off costs and if this included inter school sports and it was confirmed that this refers to support for home to school transport on specific routes at a school’s request.

·         It was queried what lessons can be learned from the experience of Chepstow School moving from deficit to surplus budget.  The school was congratulated upon this changed position amid intense scrutiny.  Some redundancies were made last year and an expensive photocopying contract has been ended; a cheaper contract has been negotiated.  All secondary schools can benefit from the lessons regarding staffing, and early intervention to address savings when necessary.  Schools are also generating income e.g. through working for the EAS

In response to a question about the Chepstow cluster of schools, it was confirmed that the Chepstow schools work together but budgets are monitored individually.  The newly appointed business managers in the four cluster areas are working together to share ideas on contracts and other work; some savings are being made. 

With regard to supply of utilities, a benchmarking tool is available to compare costs on a variety of subjects, including utility usage, with similar schools across Wales to identify potential for savings.  The Energy Officer can also provide schools with advice and guidance.