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04-528 Wandsworth Borough Council

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04-528 Wandsworth Borough Council PAPER NO: 04-528 WANDSWORTH BOROUGH COUNCIL EDUCATION OVERVIEW AND SCRUTINY COMMITTEE – 6TH JULY 2004 EXECUTIVE –12TH JULY 2004 Report by the Director of Finance on the Financial Results for the year 2003/04 SUMMARY OF REPORT Actual capital and revenue spending for 2003/04 is shown compared with the revised estimates for services within this Committee’s terms of reference: Revised Actual Estimate Varianc e £000 £000 £000 Capital 13,188 12,675 + 513 Revenue 116,300 116,960 - 660 Capital spending overall was 104% of the approved level. This over achievement will be offset by the approved cashflow in 2004/05. Included in the revenue underspend is £502,000 for centrally retained Standards Fund Schemes, which can be spent or allocated to schools over a seventeen month period, i.e. to 31st August 2004. To accommodate this change in approvals, it will be necessary to cover the net cost, representing the Council’s contribution equivalent to £502,000 by requesting a budget variation for the financial year 2004/05 from the Executive. This leaves an underlying small underspend of £158,000. The outturn figure includes £6.862 m in respect of school balances, including devolved specific grant such as standards fund. This does not represent actual expenditure incurred during 2003/04, but is available for application in 2004/05. This can be compared to £7.34 m carried forward at the beginning of this year, including devolved specific grants for all schools including nursery schools. Page 1 of 13 (Paper No.04-528 ) Financial Results RECOMMENDATIONS 1. The Education Overview and Scrutiny Committee are asked to support the recommendation in paragraph 3 below. 2. If the Overview and Scrutiny Committee approve any views, comments or additional recommendations on this report, these will be reported to the Executive. 3. The Executive are recommended to approve the proposed revenue budget variation in respect of the Council’s contribution to Standard Fund Schemes of £502,000 for 2004/05. INTRODUCTION 4. This report sets out provisional financial results, subject to audit, for the services within this Committee’s terms of reference for 2003/04. A summary of capital spending for 2003/04 is set out in paragraph 5 below and is followed by explanations of the main variances from the capital programme. A summary of the revenue outturn for 2003/04 is shown in paragraph 6, which analyses total expenditure both over the services involved and the resources used. The summary is followed by a more detailed analysis of the revenue spending on each service with explanations of the main variances from the revised budget. Paragraph 9 details the position on grant related services and, in particular, requests a revenue budget variation in 2004/05 for the Council’s contribution underspent in 2003/04 which, under Standards Fund approvals, can be spent over a seventeen month period, i.e. to 31st August 2004.The prospects for revenue spending in 2004/05 are outlined in paragraph 10. CAPITAL SPENDING 5. Table 1 summarises the Committee’s capital expenditure for 2003/04. Details of individual schemes are shown in the Appendix to this report and explanations of the major variances are given in the following paragraphs:- Page 2 of 13 (Paper No.04-528 ) Financial Results TABLE 1 CAPITAL PROGRAMME CAPITAL VARIANC SPENDING PROGRAMME E (+)/(-) £’000 £’000 £’000 SECONDARY EDUCATION 4,211 3,972 + 239 PRIMARY EDUCATION Rewire/Boilers 1,064 1,042 + 22 Roofs/Cladding 1,207 1,625 - 418 Main Schemes 1,700 1,863 - 163 Total Primary 3,971 4,530 - 559 SPECIAL SCHOOLS AND OTHER SCHEMES 1,805 1,805 - Schools Access Initiative 205 280 - 75 Single Regeneration Budget 492 489 + 3 Devolved Capital and Sure Start 2,504 1, 599 + 905 TOTAL EDUCATION OVERVIEW AND 13,188 12,675 + 513 SCRUTINY COMMITTEE As shown in the summary above and in detail in the Appendix , the capital expenditure in 2003/04 of £13.188 million produced a variance of + £0.513 million when compared to the approved programme of £12.675 million. The over achievement of the total expenditure against the estimated payment profile will be offset by the approved cashflow in 2004/05. The main variances are outlined below: Secondary Education (+ £0.239 million) Total expenditure on all Secondary Schools was £4.211 million compared to the approved programme of £3.972 million. The main variance related to St.Cecilia’s School, SW18 (West Hill) new school scheme (+ £0.508 m) which results from greater progress than planned on works and procurement of furniture and equipment. For Battersea Technology College, SW11 (Latchmere) targeted capital scheme a delay in the consultant requesting payment for fees resulted in a variance of - £0.134 million; this scheme is now out to tender. Page 3 of 13 (Paper No.04-528 ) Financial Results Primary Education (- £0.559 million)/Special Education (£ NIL million) The total expenditure on all pimary schemes was £3.971 million as compared to the approved programme of £4.53 million. The major variances on Primary schemes were Alderbrook School, SW12 (Balham)– boilers and heating (+ £76,000) asbestos discovered that required removal prior to commencement of the contract. Belleville School, SW11 (Northcote) – flat roof and windows (- £341,000) delays due to initial poor performance of the contractor. The major variances on secial schemes and other schemes are Linden Lodge School, SW19 (West Hill) – Targeted Capital (+ £329,000) more progress than anticipated on works and Hillbrook School,SW17 (Graveney) new build Nursery (- £219,000) delays by contractor. The over achievement of approved cashflow in 2003/04 will be offset by the approved cashflow in 2004/05. Schools devolved capital (+ £966,000) Schools progressing more projects using this resource following a streamlining of procedures by Education Department, additional spending will be met by DfES grant. SUMMARY OF REVENUE OUTTURN 6. Overall budgets have underspent by £0.660 million on the approved budget of £116.960 million, which equates to –0.56%. The main variances are summarised below and dealt with in more detail in paragraphs 7 to 9. However, taking into account the Standards Fund under spending of £502,000, there was an underlying underspend of £158,000. TABLE 2 2002/03 2003/04 REVISED ACTUAL ACTUAL BUDGET VARIANC % E £’000 £’000 £’000 £’000 97,628 Employees 108,965 114,410 - 5,445 - 4.8 57,418 Running Expenses 60,733 54,507 + 6,226 + 11.4 234 Capital Financing 159 73 + 86 + 117.8 155,280 169,857 168,990 + 868 + 0.5 - 46,903 Income - 53,557 - 52,030 - 1,527 - 2.9 108,377 116,300 116,960 - 660 - 0.6 REVENUE EXPENDITURE 101,028 Schools 107,370 107,179 + 191 + 0.2 6,424 Non Schools 8,099 8,825 - 726 - 8.2 925 Grant Related 831 956 - 125 - 13.1 108,377 116,300 116,960 - 660 - 0.6 Page 4 of 13 (Paper No.04-528 ) Financial Results All primary, secondary and special schools operated with full delegation under the Council’s scheme for financing schools for 2003/04, and included within the Committee totals are the surplus balances on school delegated budgets of £6.862 million, which are to be carried forward for possible application in 2004/05. This is compared to £7.129 million in 2002/03. SCHOOLS 7. The budget for this service was overspent by £191,000. TABLE 3 2002/03 2003/04 REVISED ACTUAL ACTUAL BUDGET VARIANC % E £’000 £’000 £’000 £’000 93,968 Employees 104,453 110,605 - 6,151 - 5.6 43,331 Running Expenses 46,457 37,002 + 9,455 + 25.6 192 Capital Financing 148 73 + 75 + 102.7 137,491 151,058 147,680 + 3,379 + 2.3 -36,463 Income - 43,689 - 40,501 - 3,188 - 7.9 101,028 107,369 107,179 + 191 + 0.2 APPLIED TO 47,590 Primary Education 46,153 47,297 - 1,143 - 2.4 38,812 Secondary Education 44,278 43,607 + 671 + 1.5 11,577 Special Education 12,820 12,204 + 616 + 5.0 3,049 Other Special Education 4,118 4,071 + 47 + 1.2 101,028 107,369 107,179 + 191 + 0.2 The main areas of variance were Recoupment (+ £118,000); Independent Special Schools (+ £304,872) and Care staff vacancies – Bradstow School, Broadstairs, Kent (- £150,000); SEN guides/Bus Attendants (- £99,000) and SEN Statement Support (- £92,000). Page 5 of 13 (Paper No.04-528 ) Financial Results NON SCHOOL SERVICES 8. The budget for this service was underspent by £726,000. TABLE 4 2002/03 2003/04 REVISED ACTUAL ACTUAL BUDGET VARIANC % E £’000 £’000 £’000 £’000 1,025 Employees 1,320 1,602 - 282 - 17.6 10,104 Running Expenses 9,573 10,135 - 562 - 5.5 42 Capital Financing - - - - 11,171 10,893 11,737 - 844 - 7.2 -4,747 Income - 2,794 - 2,912 + 118 + 4.1 6,424 8,099 8,825 - 726 - 8.2 APPLIED TO 2,996 Pre-Primary Education 4,756 4,918 - 162 - 3.3 551 Support for Students 608 648 - 40 - 6.2 2,461 Other Non School Expenses 2,406 2,885 - 479 - 16.6 135 Community Education 109 155 - 46 - 29.7 281 Adult Education 220 219 1 + 0.5 6,424 8,099 8,825 - 726 - 8.2 The main variances related an underspend in the Support for Students (Travel Passes - £53,000) Capitalised Pension Costs (- £349,000). Page 6 of 13 (Paper No.04-528 ) Financial Results GRANT RELATED 9. The budget for this service was underspent by £125,000. TABLE 5 2002/03 2003/04 REVISED ACTUAL ACTUAL BUDGET VARIANC % E £’000 £’000 £’000 £’000 2,635 Employees 3,192 2,202 + 990 + 45.0 3,983 Running Expenses 4,702 7,370 - 2,668 - 36.2 - Capital Financing 11 - + 11 6,618 7,905 9,572 - 1,667 - 17.4 -5,693 Income - 7,074 - 8,616 + 1,542 + 17.9 925 831 956 - 125 - 13.1 APPLIED TO 925 Grants 831 956 - 125 - 13.1 925 831 956 - 125 - 13.1 This area was underspent by - £125,000.
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