Agenda item

(Item B1 - Mr G Ward, Director, Resources.  Mr K Abbott, Director, Finance and Corporate Services were present for this item)

(1)    The Committee received a report which updated them on the projected outturn figures for the Children, Families and Education Directorate as at the third quarter.

(2)    Mr Abbott and Mr Ward answered questions from Members on the CFE Budget Monitoring report. 

(3)    Issues covered by Members included the following:-

o             Page B16 – Redundancy costs – In response to a question from Mr Tolputt, about redundancy cost which arose as a result of schools becoming academies, Mr Abbott explained that whilst academies were no longer the responsibility of KCC the Government would top slice a share of KCC’s budget to fund the redundancies.

o             Mr Abbott stated that once it had been rolled out across the County, he would expect the Freedom Pass to a saving in due course.

o             In response to a question on the overspend on redundancy costs associated with closing schools Mr Abbott confirmed that these costs were planned for and estimated final cost could not be established until talks had been held with the staff concerned.  Also some academies had been fast tracked which had had an impact on this figure.

o             Mr Ward confirmed that the capital strategy took account of the Primary School Strategy.  The Primary School Strategy had resulted in school closures and amalgamations requiring schools not being used to be secured in accordance with health and safety provisions.

o             In response to a request from Mr Newman for an explanation of the projected variance in the spend on Crockenhill Primary School Mr Ward stated that the pre-tender estimates were as good as it was possible for them to have been.  However, he highlighted the impact of international factors affecting for example the price of steel.  When tenders came in with such a large variance above estimates officers looked at how to reduce costs.  

o             Mr Abbott confirmed that the claw back rules for schools were that primary schools could retain 8% of their annual budgets and secondary schools 5% although it was possible to retain more under specific criteria.

o             In response to a question, Mr Abbott stated that the 16 + budget was in deficit.  The authority had a no deficit policy and therefore discussions had been held various stages.  As the deficit had been identified support had been put in place from KCC staff to get a plan to recover and pay the deficit, to achieve an in-year surplus within a three year period.

o             In response to a question from Mrs Angell, Mr Abbott explained the full cost of the underspend of around £1.2m on payments to BVI providers for three and four year olds.  This had reduced from the previous figure as there had been some increase in take-up.

o             Mr Abbott gave an explanation of the corporate asylum reserve of £1.122,000 and confirmed that this was not additional money from Council Tax.  It was the provision made in 2004/05.  No provision was made in 2005/06 as there was an expectation that the Government would fund this. 

o             Mr Abbott confirmed that the difficulty in recruiting educational psychologists was being faced by all local authorities.  KCC had done what they could to alleviate this by developing training programmes but it was a national problem.

o             Mr Ward, in response to a question from Mrs Angell, explained that the ICT Refresh Programme was part of KCC’s three year rolling programme, which provided officers with a basic desk top set up and monitor.  However, the due to the nature of their work Advisory Service required additional equipment for use in their various work settings.

o             In response to a question from Mr Hart on seeking a clarification of how KCC set the target levels for Looked After Children Mr Wells replied that KCC’s approach was to try not to take a child into care and to manage risk out in the community.

o             In response to a question from Mr Vye, Mr Abbott stated that the money for the 16 plus pledge was coming via a specific grant and therefore was secure.  KCC was also putting in money to top it up.

(4)    Mr Abbott undertook to supply the information on the following:-

·              Direct Payments

·              The deficit for 16+

·              Leaving care underspend (and the cutting of two FTE posts)

·              Proportion of LAC placed outside of KCC’s area but within the geographical county and similarly the number placed by Medway Council in to the KCC area

(5)    RESOLVED that Members of the Children Families and Education Policy Overview Committee are asked to note the projected outturn figures for the Directorate as at the third quarter.