Archived decisions

Contact: Trevor Mansley, Education Finance Unit (01962 847545)

1 Summary

1.1 The Education revised budget for 2001/02 was set at the adjusted cash limit enabling £651,000 to be carried forward to assist budgetary pressures in 2002/03. This report presents a forecast outturn for 2001/02 compared with that revised budget which indicates that expenditure will be contained within the adjusted cash limit.

2 Overview of the Education Financial Situation

2.1 At the revised budget stage, the Education net (controllable) expenditure was set at the adjusted cash limit of £554.3million, on the basis that the forecast underspending of £651,000, arising mainly from the unused general and home to school transport contingencies, would be available to be carried forward to ease budget pressures in 2002/03. The carry forward of the full £651,000 was approved by the Cabinet in February.

2.2 Latest estimates indicate that expenditure will be more than contained within the revised budget provision with a net underspending of £35,000 currently forecast. The significant variations which have arisen since the revised budget was prepared, together with other volatile areas, are discussed in the following paragraphs.

3 Variations

Home to School transport

3.1 The revised budget for home to school transport was set at £17.596 million which required £166,000 of the specific contingency of £450,000 to be utilised. Although there have been a few minor variations, overall, the latest forecast indicates that expenditure should be contained within the revised budget.

3.2 At revised budget stage, pressure on the demand-led Inclusion budgets resulted in the need for additional resources. The pressure for support has continued with the latest forecast for 2001/02 showing a net overspending of £190,000, made up as follows:

	£'000
Out-county placements	-
Inter-authority recoupment	+120
Statements in mainstream/additional reviews in special schools	+250
Education otherwise than at school	-180
	+190

3.3 The budget for out-county special schools placements was increased by £371,000 to £6.9 million at revised estimate stage. Although the cost of these expensive placements has continued to rise faster than inflation, strict control should enable this budget to be contained within its cash limit. In the case of inter-authority recoupment, a combination of higher costs and additional placements in other local authority establishments is forecast to cost an extra £120,000 in 2001/02.

3.4 Despite intensive management action, including the targeted use of Standards Fund, the overall budget for statemented pupils in mainstream schools and additional resources in special schools is forecast to show a net overspending of up to £250,000 against the cash limit of £4.3 million, as a result of increases in staff costs.

3.5 Spending on the provision of education otherwise than at school (EOTAS) is always difficult to predict because it is subject to individual decisions by schools and exclusions appeal panels. The latest forecast indicates an underspending of £180,000 against a cash limit of £3.9 million. This results from delays and difficulties in securing appropriate accommodation for EOTAS pupils which, in turn, has led to slippage in operational revenue expenditure.

3.6 There are currently four other areas where significant variations in centrally managed budgets have been identified:

3.7 Currently only two other areas have identified significant variations:

(a) School Catering £'000

School catering is forecasting an underspending of

£40,000 against a revised budget of £3.4 million

due to a further decline in the level of free meals. - 40

(b) School Crossing Patrols

A continuation of the difficulties being experienced in

the recruitment of school crossing patrols has led to a

forecast underspending of £45,000 against the revised

budget of £0.8 million. - 45

4 Financial Summary

4.1 In summary, the latest budget monitoring has identified the following variations:

	£'000
Inclusion (SEN) - paras 3.2 to 3.5		+190
Other schools centrally-held budgets - para 3.6		- 140
Other - para 3.7		- 85
	- 35

4.2 Other variations may surface during the actual closure of accounts process but, in the meantime, monitoring is continuing to ensure that expenditure is contained within the cash limit.

5 Transfer to Reserves

5.1 The latest indications are that the education business units outturn for 2001/02 will be in line with the revised budget assessment. The latest forecast shows that the planned deficit has marginally increased from £120,000 to £134,000 (on gross expenditure of £21.0 million). Based on these forecasts, the cumulative surplus at 31 March 2002 will stand at £808,000.

Conclusion

That the latest budget monitoring indicates that education current expenditure for 2001/02 will be contained within the cash limit.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1 Published works.

2 Documents which disclose exempt or confidential information as defined in the Act.

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