Agenda item

Trafod adroddiad y Trysorydd

 The Head of Finance –Education and Financial Reporting presented the Committee with an update on the projected outturn position for 2020/21 and a summary of grant funding for 2020/21. Members we also provided with the work underway to refresh the Medium Term Financial Plan. 

The Head of Finance –Education and Financial Reporting informed Members that the recommendations to this report are detailed with section 2.

The Head of Finance –Education and Financial Reporting continued to provide Members with a summary of the current financial years projected outturn which is set out in table 1 on section 3 of the report. This results in a small underspend of £1.250, very similar to the £1,439 underspend reported in December. Hopefully this gives Members of the Joint Committee reassurance on the continued financial control at Central South Consortium and demonstrates that stable and robust financial management is in place.

The Officer continued and provided Members of the Joint Committee with some variances:

·         £150K underspend on Employee costs relating to a part year Accelerated Progress Lead £51k vacancy, release of contingency budget £40K used to absorb additional cost pressure relating to increased daily rate of seconded Improvement Partners from £400 to £450 from September 2020, other temporary vacancies such as a PA role and also various savings such as some staff not being in the pension scheme.

·         £181K overspends on supplies and services mainly relating to the Improvement Partners pilot project – costs of accreditation £57k, ICT costs £74K and also the facilitation of coaching and mentoring programme across schools £56K to support wellbeing of senior staff.

Members were reminded that at December’s Joint Committee approval was given of a distribution of an uncommitted earmarked reserve balance of £322K. This has been redistributed to LAs. The Officer explained there is no change to the £200K earmarked reserve setting aside funding to re-model the service and as part of the year- end report, it is likely that the Joint Committee will be requested to carry this forward into the new financial year.

In respect of grants received by the consortium the officer explained section 4 of the report shows details of the amounts retained and those delegated to schools and local authorities.

Moving on to the Medium Term Financial Plan Members of the Joint Committee the Head of Finance –Education and Financial Reporting reminded Members that in January 2020 the Joint Committee agreed a 3 year plan to reduce LA contributions by 3% for 20/21 (the current financial year) 1% for the next year as approved in December 2020 and 1% for 22/23.

 It was explained that since that time, the consortium has worked within those parameters and it’s positive to note that:

·         the financial position for 20/21 is in line with budget

·         a balanced budget was set for 21/22 on 16^th Dec 2020

whilst delivering high quality school improvement activities throughout an unprecedented period.

To enable a Medium Term Financial Plan to be presented at the July JC, Members are asked whether they support the parameters outlined in paragraph 5.5.

(a)  The need to protect frontline school improvement resources and target available funding to key priorities.

(b) The continued delivery of efficiency savings (recognising that the on-going delivery of savings at levels achieved in previous years will be extremely challenging).

(c) The Consortium to fully fund:

• Estimated employee costs and National Insurance Contribution    

  levels; and

• Estimated non-pay costs (including goods and services inflation).

The Head of Finance –Education and Financial Reporting explained that subject to Joint Committee’s feedback, the Managing Director and lead Section 151 Officer will coordinate the process, in consultation with the Chief Executives of member local authorities, and report an updated Medium Term Financial Plan to the July 2021 Joint Committee and will subsequently serve to inform the 2022/23 budget setting process.

The Chair thanked the Officer for the report and thanked Members for their questions and observations 

Following consideration of the report and recommendations, it was RESOLVED:

·         To note the current projected outturn position for 2020/21

·         Note the current grant funding position 2020/21

·          To agree broad parameters to refresh the Medium Term Finical Plan to enable a detailed position be reported to the Joint Committee in July.