Agenda item

Derbyn adroddiad gan Drysorydd a Rheolwr-Gyfarwyddwr Consortiwm Canolbarth y De.

The Service Director, Finance Services presented a report to Members; the purpose of the report was to provide the Joint Committee with the projected outturn position for 2021/22, a summary of the 2021/22 grant funding, and to provide an overview of the work underway to refresh the Medium-Term Financial Plan.

Members were directed to table 1 of the report which highlighted a small underspend of £2,325 for the year; it was confirmed that the position had been stable throughout this financial year with a small underspend of £1,331 reported in December 2021 and £766 in September 2021; thus, demonstrating a stability of outturns over the budgetary control within the Consortium.

To provide further detail, the Service Director, Finance Services highlighted key variances for the projected outturn position for 2021/22 as highlighted in table 1 of the report. As shown on the table, employees have had a £23,446 underspend projected to year-end, as a result of vacancies. There has been a small underspend on premises of £1,550 due to configuration work being undertaken at the Valleys innovation Centre. Transportation services have also had an underspend due to the ongoing impacts of Covid-19; however, Supplies and Services had a net overspend of £14,601 in total. The Service Director, Finance Services, advised Members that there are underspends on CPD which are offset by overspends mainly due to ICT hardware purchases of new starters equipment to facilitate hybrid meetings and office equipment purchases in line with the reconfiguration of the office space.

Members were directed to paragraph 3.3 and 3.4 of the report which referred to the earmarked reserves of the Consortium; the Service Director, Finances Services confirmed to Members the spend of £6k earmark towards the approved sensory project by Joint Committee. Members were informed of the £200k earmarked reserve which has been retained to support the remodelling of the service over the Medium Term. It was confirmed that there are no costs to date, and it’s anticipated that Joint Committee will be requested to consider carrying this forward into 2022/23 as part of the year-end report.

Members were directed to section 4 of the report which detailed a summary of the grant funded service for 2021/22 which demonstrated the significant resources for both RCSIG and PDG available to the region.

The Service Director, Finance Services reminded Members of the Joint Committee meeting held on the 15^th July 2021 were Members agreed on a 3-year indicative budget based on Local Authority contributions increasing by 1.72% in 2022/23, 1.73% in 2023/24 and 2024/25 respectively to manage pay inflation pressure and non-pay inflation pressures and the delivery of budget savings being managed by the Consortium.

The Service Director Finance Services advised Members of the Joint Committee to consider the following key parameters as highlighted in paragraph 5.5 of the report:

(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 ongoing delivery of savings at levels achieved in previous years will be extremely challenging).

(c)  the consortium to fully fund estimated non-pay (i.e. goods and services) inflation.

(d)  £200k earmarked reserve to support on-going service remodelling and medium-term planning retained for the purpose of smoothing the financial impact of future local government settlements on local authority contributions and maintain financial resilience.

Subject to the Joint Committees 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 September 2022 Joint Committee.

The Central South Consortium Joint Education Service RESOLVED:

-       To note the current projected outturn position for 2021/22

-       To note the current grant funding position for 2021/22

-       To agree the broad parameters for the Consortium to work within to refresh the Medium-Term Financial Plan and for an updated position to be reported to the September 2022 Joint Committee.