To consider the outturn report for the Schools Service.
Minutes:
The Finance Business Manager introduced the paper outlining the Schools Service projected outturn at 31 March 2020 as at Quarter 1 (30th June 2019).
The Schools Service is projecting at £669k overspend at year end the main reasons for which are a series of unachieved savings. The Finance team are working closely with the schools service to help the saving achieve the required savings.
The Schools service undertakes a range of work such as the 21st Century School programme, Post 16 review, school transport. There is a concern regarding the lack of join up and capacity of staff to support these programmes. The cuts are also concerning impacting on the capacity of schools service staff to support schools.
The Senior Challenge Advisor confirmed the reduced number of staff within the schools service is a concern, particularly in the area of school modernisation which is under capacity. The schools service is receiving support from the corporate transformation team in this area of work. The service knows what needs to be done to make the required savings and just needs capacity to be able to carry this out.
Where is the overspend funded from?
This is funded from corporate reserves, and other areas may be underspent which may assist in balancing the councils position overall. The Finance Team are working with the service to make the savings required.
Is the service confident the savings will be made?
Since the report was written a further £117k savings have been made (from additional money received from the Education Improvement Grant and some savings identified within the Freedom contract).
The report identified £250k of savings from within the ALN budget. Given the ALN budget is £5million is this realistic?
This is not specifically for a reduction in ALN provision but could be for example for the reduction of costs in expensive out of county placements or increased income.
What are the trends in this area? Members are hearing that other council departments have been slow in returning results in this area.
This information can be provided.
The Portfolio Holder noted that there would be a change in the way of reporting this information. Cabinet would be receiving a monthly report on savings delivered to date and how likely or otherwise it was that the remaining savings would be made.
The Deputy Head of Financial Services confirmed the intention of this paper was to demonstrate that savings are achieved throughout the year and without this information the position in the first part of the year looks bad but does improve as the year progresses.
Why does the paper state it in respect of ALN spend this is unpredictable? It should be possible to estimate these costs.
This is one of the issues affecting the forecast and is identified as a risk.
Why is the education budget subsidising child-care settings (under the Capital Grants section)?
This is specific grant funding from Welsh Government and is not subsidised by the authorities education budget. The child-care settings are managed from within the education service.
When does Band B funding cease? When will dates be shared for the Welsh Medium school in Newtown?
Band B funding ceases in 2023/24 although there is some flexibility around this.
The Portfolio Holder for Finance confirmed the Cabinet had been looking at the future footprint of schools and would be sharing this information with scrutiny.
When will this programme be progressed?
The Portfolio Holder for Finance advised that the data would be shared this year with decisions expected next Spring.
Is there sufficient capacity to progress this programme?
Additional capacity is to be provided.
There appears to be a common thread within the report of savings not being realised including within areas such as school swimming, school houses. The report does not appear to demonstrate any urgency to achieve the savings. Councillors found budget setting this year to be extremely difficult and unless the savings identified during that budget round are made the position next year will be similarly difficult.
The Portfolio Holder for Finance confirmed that the savings figures outlined within the report need to be made by the Schools Service. Savings not made at the end of year will not go away.
Was the £100k saving attributed to school swimming part of the Freedom Contract saving agreed during the budget process and if so why did Members not know that this had not been agreed and is still under negotiation?
To be provided.
Is the figure for school houses an overspend or a non-achievement of income?
This is achievement of income. Future reports will provide additional narrative
The staffing review shows an overspend of £18k due to an extension of timescales for consultation. Where will this saving be found?
Savings that are delayed will still need to be found from elsewhere within the service until they are fully met in the next financial year when a full year saving is achieved.
The Youth Service shows an overspend due of £16k due to ‘unders and overs’. What does this mean?
Unders and overs are used when there are a lot of low level under and over spends which do not relate to a specific issue. The maximum this would relate to is £1k and is not staffing related.
What does the £120k for school closures in 2019/20 relate to?
This was a saving identified however, under school transformation schools did not close and therefore this saving has not been achieved.
What is the saving in ALN relating to?
The ALN team would be able to provide this information.
When is the grant offer for Gwernyfed outlined in the 21st Century Schools summary expected?
It is understood this has been received.
Members expressed concern regarding how realistic the efficiencies are for this year? For example Youth Services budget has been drastically cut but is still showing an overspend.
The Head of Service comments advise that Warning Notices have been issued. Does the Schools Service have the capacity to support schools in this situation?
The Schools Service have finite capacity and work is prioritised. Schools with Warning Notices are given named officer support from HR, Finance and the Schools Service. This work would take priority.
The Portfolio Holder for Finance advised a permanent Schools Finance Manager had been appointed which would give stability to the service.
Are schools who are required to receive additional pupils on appeal funded for these additional pupils?
Schools funding is calculated on a count of pupils on roll on the Friday following the October half term prior to the start of the school year. Changes to the numbers on roll from September are not reflected in that years calculation but would be counted for the following years allocation. This can lead to challenges for schools in this position and these schools will receive support from the Finance and Schools Teams.
Recommended that:
· the scrutiny sessions monitoring the Schools Service Budget be timetabled to enable the savings paper provided to Cabinet to be considered.
· Clarity be provided regarding the capacity required and available to undertake school transformation at the pace that has been identified
· Further detail be provided on the timeline for the Freedom Leisure savings
· Future reports include additional narrative
· Consideration is given to how Co-opted Members are kept informed of the budget process so that all Members of Committee are able to carry out effective budget scrutiny
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