Archived decisions

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

1 Summary

1.1 The Education revised budget for 2002/03 was set at the adjusted cash limit enabling £1,284,000 to be carried forward to assist budgetary pressures in 2003/04. This report presents a forecast outturn for 2002/03 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 £588.2 million, on the basis that the forecast underspending of £1,284,000 would be available to be carried forward to ease budget pressures in 2003/04. The carry forward of the full £1,284,000 was approved by the Cabinet in February.

2.2 Latest estimates indicate that expenditure will be contained within the revised budget provision. Few significant variations have arisen since the revised budget was prepared but the most relevant, 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 £18.331 million for 2002/03. Although there have been a few minor variations, overall, the latest forecast indicates that expenditure should be contained within the revised budget.

Inclusion (SEN)

3.2 Planning and controlling the expenditure on demand-led budgets for pupils with special educational needs continues to be a challenging management task. The pressure for support has not abated but as a result of management action, particularly the development of specific in-county provision for individual pupils supplemented by funding from Standards Fund, expenditure, overall, is currently forecast to be contained within the cash limit.

Other Schools' Centrally - held Budgets -£50,000

3.3 Few variations amongst other schools' centrally-held budgets are currently forecast. The only significant variation is a predicted underspending of £90,000 (against a revised budget of £2.3 million) in the teachers premature retirement budget as a result of fewer cases, largely as a result of successful redeployments. This has been offset by increased demands on the local management contingency.

Support Services +£50,000

3.4 In total, support services are forecasting an overspending of £50,000 against a revised budget of £24.5 million. This results from additional publication costs, mainly associated with the six-term year consultations and increased staffing due to the continuing impact of numerous government initiatives.

4 Conclusion

4.1 The latest budget monitoring indicates that expenditure should be contained within the revised cash limit confirming the judgement made in January 2003.

4.2 Other variations may surface during the actual closure of accounts process but in the meantime monitoring is continuing to ensure that the Education Service remains within its cash limit.

5 Business Units

5.1 The latest indications are that the education business units will reduce the overall planned deficit for 2002/03 of £728,000 to £661,000 (on gross expenditure of £23.1 million). Based on these forecasts, the cumulative surplus at 31 March 2003 will stand at £614,000.

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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