Archived decisions

Summaries of actual spending 2004/05 Item 8

Appendix Contents

1 Construction of the cash limit

2 Summary of revenue expenditure

3 Analysis of cash limited revenue expenditure over services

4 Major variations in cash limited expenditure

5 Trading units - summarised accounts 2004/05

6 Revenue expenditure 2004/05 not included in the cash limit

7 Capital expenditure 2004/05

8 Departmental assurance statement

Appendix 1

Education service

Revenue expenditure 2004/05

Construction of cash limit

In the revised budget revenue expenditure under the service's direct control was subject to a cash limit set by Cabinet of £675.1m. Variations in the cost of business rates are managed centrally because the level of business rates on the County Council's own properties could not be determined precisely when the revenue budget was set, because of the effect of revaluations and transitional arrangements. Actual expenditure on rates is £614,000 lower than was provided for in the revised budget and the cash limit has been adjusted accordingly.

Further adjustments to the cash limit have also been made in respect of:

	£,000
Higher level of expenditure supported by specific government grants	3,556
Carry forward of County Council contribution in respect of unused Standards Fund	-1,645
Overspending on teachers' sickness and maternity cover	247
Capital expenditure met from revenue in respect of schools' self-funded capital schemes	-1,134
Net increase in schools' reserves	-6,656
Virement to capital - Youth Service	-25
Additional allowance for inflation for pay awards - Soulbury and youth workers	17

The adjustments referred to above are incorporated in the table below which summarises the position for the service in the year:

	£'000	£'000
Revised budget for 2004/05		675,144
Reduction for the lower level of business rates payable		-614
Additional allowance for inflation for pay awards		17
Net increase in the level of expenditure financed by Government grants:
Teachers' Pay Reform Grant	-263
Standards Fund	-1,041
Transitional Support Grant	6,909
General Sure Start Grant	-2,055
Access and other grants	6	3,556
Carry forward of County Council contribution re unused Standards Fund		-1,645
Overspending on teachers' sickness and maternity cover		247
Revenue contributed to capital for schools' self-funded projects		-1,134
Net transfer to schools' reserve account		-6,656
Virement to capital - Youth Service		-25
Amended cash limit Net expenditure		668,890 668,087
Net underspending against service's controllable expenditure.		-803

Appendix 2

Education service

Final Accounts 2004/05

Summary of Revenue expenditure

	(1)	(2)	(3)
	Adjusted revised estimate	Actual 2004/05	Variation (Col 2 - Col 1)
	£'000	£'000	£'000	%
Cash limited expenditure	668,890	668,087	-803	-0.1
Other expenditure which is the responsibility of the service - Mandatory Awards	160	92	-68	-42.5
Trading units transferred to reserve account	695	-143	-838	-120.6
Capital charges	97,109	97,109	-	-
Other expenditure which is controlled centrally by Policy and Resources and recharged to this service
- Repair and maintenance of buildings	18	191	173	-
- Central support services	7,826	7,305	-521	-6.7
	774,698	772,641	-2,057	-0.3
- Adjustment for pension costs	-2,815	1,541	4,356	154.7
Net expenditure before grant	771,883	774,182	2,299	0.3
Government grants:
- Standards Fund	34,261	33,220	-1041	-3.0
- Schools Standards Grant	19,824	19,824	-	-
- Transitional Support Grant	-	6,909	6,909	-
- General Sure Start Grant	8,532	6,477	-2,055	-24.1
- Teachers' Pay Reform Grant	16,896	16,633	-263	-1.6
- Mandatory Awards	150	118	-32	-21.3
- European Social Fund	118	103	-15	-12.7
- Schools Access Fund	25	31	6	24.0
	79,806	83,315	3,509	4.4

Total net expenditure	692,077	690,867	-1,210	-0.2

Appendix 3

Education service

Revenue expenditure 2004/05

Analysis of cash limited expenditure over services

	(1)	(2)	(3)
	Adjusted revised estimate	Actual 2004/05	Variation (Col 2 - Col 1)
	£'000	£'000	£'000	%
Cash limit expenditure
Schools Budget
Nursery schools	693	693	-	-
Primary schools	235,726	235,726	-	-
Secondary schools	210,343	210,343	-	-
Special schools	22,784	22,784	-	-
Insurance	59	59	-	-
Licences/subscriptions	267	273	6	2.2
School-specific contingencies	3,336	3,564	228	6.8
Supply cover (not sickness)	686	695	9	1.3
Supply cover - sickness and maternity	152	152	-	-
Education otherwise than at school	5,975	6,159	184	3.1
Provision for pupils with statements	6,134	6,109	-25	-0.4
Independent and voluntary special schools	6,938	6,435	-503	-7.2
Inter-authority recoupment	606	515	-91	-15.0
Behaviour support implementation	104	51	-53	-51.0
New Early Years place specific grants	18,177	18,182	5	-
Early Years and Childcare Unit	5,358	4,788	-570	-10.6
Assistance to voluntary and private providers	2,686	2,593	-93	-3.5
School catering	127	126	-1	-0.8
Non-Standards Fund grants	586	583	-3	-0.5
Schools Standards Grant	19,824	19,824	-	-
Teachers' Pay Reform Grant	16,633	16,633	-	-
Transitional Support Grant	6,909	6,909	-	-
Total Schools Budget	564,103	563,196	-907	-0.2

	(1)	(2)	(3)
	Adjusted revised estimate	Actual 2004/05	Variation (Col 2 - Col 1)
	£'000	£'000	£'000	%
LEA Budget (Schools)
SEN audit and moderation	51	43	-8	-15.7
Premature retirement compensation	2,547	2,670	123	4.8
Insurance	184	178	-6	-3.3
LEA initiatives (strategic management)	1,872	2,296	424	22.6
Strategic management - miscellaneous	-591	-597	-6	-1.0
Home to school transport	18,936	18,929	-7	-
Pupil support	403	335	-68	-16.9
Field study and outdoor centres and grants	328	331	3	0.9
Other access-related school budget headings	196	172	-24	-12.2
LEA initiatives (school improvement)	11	18	7	63.6
Total LEA Budget (Schools)	23,937	24,375	438	1.8
LEA Budget (Non-schools)
Adult education	157	-95	-252	-160.5
Community education	1,912	1,913	1	0.1
Continuing education	1,402	1,340	-62	-4.4
Youth service	4,637	4,796	159	3.4
Services to schools and support	25,807	25,557	-250	-1.0
Training and curriculum development	47,005	47,005	-	-
Total LEA Budget (Non-schools)	80,920	80,516	-404	-0.5
	668,960	668,087	-873	-0.1
Planned overspending carried forward	-70	-	70	-
Net Cash Limited Expenditure	668,890	668,087	-803	-0.1

Appendix 4

Education service

Revenue expenditure 2004/05

Major variations in cash limited expenditure - underspending of £803,000


Budget heading	Variation	Adjusted revised budget	Reason
	£'000	£'000
Schools Budget
Central management	243	4,500	Mainly due to extra temporary classroom expenditure met from the contingency
Special education	-488	19,757	Increased expenditure on education otherwise than at school (£184,000) offset by a reduction (£503,000) on payments to independent and voluntary schools, payments to OLEAs (£91,000) and behaviour support (£53,000)
Early Years education	-659	26,221	Lower take up by under 5s, in particular 3 year olds, and a higher level of grant
LEA Budget (Schools)
Strategic management	527	4,063	Increased spending on premature retirement compensation (£123,000) and LEA initiatives (introduction of Hampshire Web Interface in schools) (£424,000)
Access	-96	19,863	Main savings were on pupil support (£68,000) and residential housing (£19,000)
LEA Budget (Non-schools)
Adult education	-252	157	A change in the way that LSC grant is applied has reduced expenditure for the past two years by £252,000
Continuing education	-62	1,402	The main areas were home to college transport (-£36,000) and Guidance and Careers (-£18,000)
Youth service	159	4,637	The major factor was an additional contribution towards the cost of the Youth Offending Team (£153,000)
Services to schools and support	-250	25,807	Main under spends were on Early Years (£139,000) and slippage in the replacement of legacy mainframe systems (£44,000) plus various staffing-related budgets

Appendix 6

Education service

Revenue expenditure 2004/05 not included in the cash limit

1 Capital charges (£97.1m)

Capital charges are made to services for capital assets used in the provision of services. The actual charges are £8.5m more than the budget. However, this will have no direct effect upon the overall budget requirement of the County Council as the capital charges are replaced by actual financing costs in the central asset management revenue account.

2 Central support services, repairs and maintenance of buildings (£7.3m)

These items are within the control of Policy and Resources. Support services are apportioned to services in accordance with the level of services provided and office accommodation occupied. Control of the budget for repairs and maintenance of buildings is exercised on a functional rather than service basis, but actual costs are allocated to the relevant service.

3 Adjustment for pension and early retirement costs (£1.5m)

This adjustment includes:

a) the difference between the cash value of employers' contributions to the Local Government Pension Scheme (LGPS) (included within the service's cash limited expenditure) and the current cost of pension benefits earned by members of the LGPS during 2004/05, as assessed by the County Council's actuary. This adjustment is required by the Code of Practice on Local Authority Accounting in the UK and is calculated in accordance with Financial Reporting Standard 17 (FRS 17) Retirement Benefits. It relates only to "defined benefit" schemes, including the LGPS, where the assets and liabilities of the scheme can be attributed to individual employers on a consistent and reasonable basis

b) the costs arising from early retirement decisions and the granting of compensatory added years. These are within this service's cash limited expenditure, but are excluded from the cost of services in the final accounts, on the basis that the cost relates to past service.

Appendix 7

Education service

Capital expenditure 2004/05

		£'000
1	Construction of total resources
	Original programme limit per 2004/05 budget book	39,659
	Cash limit brought forward from 2003/04	890
	Changes approved during the year:
	- Capital receipts - Capital receipts moved to 2005/06 - Schemes carried over from 2003/04 - Developers' contributions - Developers' contributions received during 2004/05 - Interest from Prices Trust - Extra devolved capital - Specialist school status - School travel plans - Disability Discrimination Act - Starts to payments adjustment - Prudential borrowing - Contributions from schools - Contributions from others	1,788 -1,500 11,441 360 431 111 104 1,548 498 726 33 2,555 1,835 512

	Total resources:	60,991



2	Schemes committed during 2004/05
	Schemes over £250,000: Alton Infant School Bridgemary Community School Brookfield Community School Brune Park Community College Bursledon CE Infant School Cherbourg Primary School Chiltern Primary School Cove School Droxford Junior School Eggar's School Fernhill School Frogmore Community College Grateley Primary School Hamble Community Sports College - Youth Building The Henry Cort Community College Hiltingbury Infant School Lakeside School Lanterns Early Years Centre Liphook Infant School Long Sutton CE Primary School The Neville Lovett Community School Nightingale Early Years Centre Nightingale Primary School Perins Community Sports College Purbrook Park School Sharps Copse Early Years Centre The Westgate School Wherwell Primary School Whitewater Primary School Block Allocations: Allocations to schools Adult education premises (DDA) Furniture and equipment	905 379 379 1,393 861 386 1,694 392 781 914 275 692 510 410 457 433 2,100 2,500 292 535 493 606 1,371 1,360 284 303 923 611 563 14,734 592 638
	Primary playing field drainage School security Schools access initiative Cost of progressing land sales Youth service (DDA) Other Schemes under £250,000	400 356 1,459 165 57 5,776

	Total schemes committed during 2004/05	46,979

3	Schemes carried forward

	Schemes over £250,000: Calmore Infant School Crescent Primary School Netley Marsh Infant School Priestlands School St Lawrence CE Primary School The Sundridge School The Bridge Education Centre Whitchurch Primary School Block allocations: 14 - 19 Agenda East Hants special school review Havant SEN Management of falling rolls Management of health and safety Modernisation - contingency Primary provision in the Whiteley area Schools access initiative Secondary school CDT improvements Other schemes under £250,000	438 657 814 1,100 787 750 954 533 206 248 160 559 245 125 1,438 529 500 3,147



	Total	13,190

4	Summary of 2004/05 capital programme:




	Total resources	60,991
	Schemes committed during 2004/05	46,979
	Balance of cash limit at 31 March 2005	14,012

	Schemes carried forward to 2005/06	13,190
	Net balance of cash limit remaining to meet inflation costs	0
	Cash limit carried forward to 2005/06	822

Appendix 8

Education service

Department assurance statement for the year ended 31 March 2005

1 Introduction

1.1 The Accounts and Audit Regulation 2003 require the County Treasurer to maintain an adequate and effective system of internal audit.

1.2 From 2002/03 the Code of Practice on Local Authority Accounting in the UK has required the County Treasurer to sign a statement on the system of internal financial control as a note to the published accounts. From 2003/04, the Leader and Chief Executive have also been required to sign a more general statement of internal control. To support this process, the Chief Internal Auditor is required to provide an independent opinion on the adequacy and effectiveness of the control environment, comprising risk management, control and governance for each department and the County Council as a whole.

2 Responsibilities

2.1 It is a management responsibility to develop and maintain the internal control framework, and to ensure that resources are properly applied in the manner and on the activities intended. It is the responsibility of Internal Audit to form an independent opinion, based on reviews during the year, on the adequacy and effectiveness of the system of internal control.

3 Basis of opinion

3.1 The strategic and annual internal audit plans were prepared by the Chief Internal Auditor to take account of the characteristics and relative risks of the activities involved and were approved by the County Treasurer. The internal audit plan has been delivered in accordance with the Code of Practice for Internal Audit in Local Government in the United Kingdom, issued by CIPFA.

3.2 Work has been planned and performed so as to obtain all the information and explanations which were considered necessary in order to provide sufficient evidence to give reasonable assurance that the internal control system is operating effectively. However, this assurance can never be absolute. The most that the internal audit service can do is to provide reasonable assurance that there are no major weaknesses in the system of control.

4 Opinion

4.1 In my opinion the Education department has an effective framework of control which provides reasonable assurance regarding the effective, efficient and economic achievement of the department's objectives. Audit testing has shown that the controls are working in practice.

Ejner Knudsen

Chief Internal Auditor, County Treasurer's Department

Hampshire County Council 31 May 2005

This content is archived

1 Introduction

2 Responsibilities

3 Basis of opinion

4 Opinion