PAPER B

Committee: Education, Community Development and Life Long Learning Select Committee

Date: 14^th October 2002

Title BUDGET MONITORING REPORT AS AT END OF SEPTEMBER 2002

JOINT REPORT OF THE STRATEGIC DIRECTOR EDUCATION & COMMUNITY DEVELOPMENT AND STRATEGIC DIRECTOR FOR FINANCE & INFORMATION & COUNTY TREASURER

SUMMARY / PURPOSE

This report sets out the revenue and capital budget and spending position for the services within this Committee’s remit, as at the end of September 2002. The figures do not include budgets that are controlled elsewhere than the service concerned. These are monitored by the Committee which bears responsibility for such costs. (For example, Resources Select Committee monitors the building maintenance budget centrally, and building maintenance costs are not therefore shown against individual services in the attached statement).

REVENUE MONITORING STATEMENT

The report details both Gross & Net Expenditure + Income and is in two parts. Education Services are listed on pages one to four and Community Development Services on page five. Net Expenditure has been classified over SEVEN categories all of which have different spending characteristics. A brief description of each is as follows:

Category	Description	Page
One	Net Expenditure that conforms with a monthly spending profile and is within a tolerance of = +/- 6% of a target spending.	One
Two	Expenditure incurred or Income received in IRREGULAR intervals – Start or end of a Financial year OR Pupil/Initiative specific or subject to Year End Government Grants claims.	Two
Three	RESERVED EXPENDITURE where costs only incurred in exceptional circumstances	Two
Four	Net Expenditure which is largely recharged through Other Directorates or between LEA and Schools for SEN DEVOLVED expenditure.	Three
Five	Expenditure showing SIGNIFICANT DIVERGENCE from Target spending as identified in One above.	Three
Six	Expenditure subject to SERVICE LEVEL AGREEMENTS with Schools recharged at PERIODIC intervals	Four
Seven	DELEGATED SCHOOLS EXPENDITURE where spending decisions are determined by School Governors.	Four

Categories One, Two and Five ONLY apply to Community Development Services details of which can be found on page five.

REVENUE SPENDING REVIEW AS AT 27^th September 2002

EDUCATION SERVICES

For Education Services, Net Expenditure is largely in line with that forecast with the exception of those services detailed in Category Five where staff vacancies have resulted in small fortuitous savings which will be offset by the costs of temporary staffing arrangements or service reinvestment which are not yet reflected in the above figures.

For Category Six – SLA agreements with Schools, in many instances a full years income has now been received through a series of ‘one off’ payments sanctioned by School Governing Bodies. Expenditure is broadly in line with that which would be expected half way through the financial year.

COMMUNITY & DEVELOPMENT SERVICES

Net Expenditure on Community & Development Services also conforms with anticipated spending levels for the majority of services. However, it should be noted that significant ‘One Off’ costs have already been incurred as is the case for a number of Grants or Council support for the Winter Gardens and Theatre subsidies.

For the first time net spending on two services; Libraries and Ventnor Botanic Gardens is included within Category Five – ‘Expenditure showing significant divergence from target spending as at 27.02.2002’. For the Library Service, just over 61% of the net budget has been expended as a result of incurring costs on the ICT Network in advance of Government grant reimbursement being received. For Ventnor Botanic Gardens, significant income generation over the Summer period has the effect of depressing net expenditure levels to just over 35%. Convergence between ‘profiled’ and actual net expenditure will occur throughout the remainder of the year.

CAPITAL SPENDING REVIEW AS AT 27 SEPTEMBER

Attached as appendix 2 is the latest capital monitor for both Education and Community Development schemes.

Contact point: Revenue - Andrew King 823658 ; Capital – Andy Seaward 823440

David Pettitt John Pulsford

Strategic Director Education, Community Strategic Director for Finance and Information

Development and Life Long learning and County Treasurer