Agenda item

2017-18 Q3 BUDGET MONITORING REPORT.

Minutes:

The Joint Committee received, for consideration, the Section 151 Officer’s report on the 2017/18 Q3 Budget Monitoring.

 

The Section 151 Officer in presenting the report highlighted to the Joint Committee a grant award of £250k received from the Welsh Government towards the cost of ERW’s Review and Reform Programme. He also referred to the work to be undertaken under that review and suggested that until such time as ERW had determined its future direction, the following two recommendations within his report be withdrawn:-

 

·        The Joint Committee agree for ERW to seek their own insurance cover for the future,

·        The Joint Committee agree to the recruitment of a Finance Manager on a fixed term contract, to be funded from Welsh Government Review and Reform Funding

 

In response to a question on the abovementioned Welsh Government Grant, the Managing Director confirmed it was time bound and allocated over a 13 month period and would therefore roll over into the 18/19 financial year.

 

Further reference was made to the review team and the confirmation detailed in minute 3 above that it should include all six Directors of Education. It was suggested that the Section 151 Officer, Monitoring Officer and a HR representative should also be in attendance at those meetings.

 

In response to a question relating to the late receipt of grant funding, the Joint Committee was assured the Welsh Government was aware of the position and accepted it created planning difficulties. The Welsh Government was now looking at introducing early notification of grant awards which it was hoped would result in greater flexibility and an improvement on the current position.

 

Reference was made to the allocation of grant funding to the six authorities by ERW and an assurance sought they were being made in accordance with the Joint Committee’s previously agreed funding formula (Minute 3 of the meeting held on the 11th March, 2015 regarding the distribution of the EIG refers). It was noted that arrangements had been made for a meeting of the Education Directors to be held that week where discussions would be held on the funding formula. If appropriate, an additional meeting of the Joint Committee could be arranged to discuss any suggested changes to the formula for allocation of the 18/19 grants. Additionally, each director could examine the grant allocations to their authority to ensure they had been made in accordance with the formula.

 

The Section 151 Officer was asked to confirm that he had not been asked to include any exceptional reports relating to alternative funding distribution mechanisms used. The Section 151 Officer confirmed that to his knowledge no alternative distribution mechanisms had been used.

 

AGREED:

 

4.1

That the ERW Financial Update Quarter 3  for 2017/18 be noted;

4.2

That the changes to the ERW Central Team Revenue Budget, Grant Allocations (subject to assurance the allocations have been made in accordance with the previously agreed funding formula) and ERW reserves for 2017-18 be approved;

4.3

That the risks to the region given the amount of core funding it received and the effect on the region’s reserves over the medium term, with anticipated changes to the ERW structure and operations, be noted;

4.4

That, for the reason outlined above, the last two recommendations detailed within the report be withdrawn;

4.5

That the Section 151 Officer, Monitoring Officer and a HR Representative attend meetings of the ERW Review Team.

 

Supporting documents: