PAPER B

Children’s Services Select Committee - 20^TH JANUARY 2004

REVENUE BUDGET MONITORING REPORT AS AT END OF DECEMBER 2004

REPORT OF THE STRATEGIC DIRECTOR CHILDREN’S SERVICES AND THE CHIEF FINANCIAL OFFICER

SUMMARY / PURPOSE

This report sets out the revenue budget and spending position for the services within this Committee’s remit, as at the end of December 2004. 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).

MONITORING STATEMENT

The report details both Gross & Net Expenditure + Income and is in two parts, to enable Members to familiarise themselves with all areas of the budget. Education Services are listed on pages one to five and Children’s and Families Services on page six. The two areas will be integrated into one report from April 2005. 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 to 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	Three
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 Children’s and Families Services details of which can be found on page five.

SPENDING REVIEW AS AT 31^st DECEMBER 2004

EDUCATION SERVICES

For Education Services, Net Expenditure is largely in line with that forecast. Although the Standards Fund Non-Devolved budget is currently showing a large over-spend, this is due entirely to expenditure being incurred in advance of grant reimbursement.

For Category Six – SLA agreements with Schools, in most 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.

CHILDREN’S AND FAMILIES SERVICES

Net Expenditure on Children’s and Families Services also conforms to anticipated spending levels for the majority of services. However, it should be noted that the percentage expenditure on certain services is currently lower than the target. This is due to the receipt of grant income in advance of expenditure. It is anticipated that by year-end all budgets will have been fully expended.

Contact point: Janet Giles 823454

David Pettitt Paul Wilkinson

Strategic Director Children’s Services Chief Financial Officer