Agenda item

The Committee received an update on the financial position of ERW. This included the Revised 2016-17 Central Team Revenue Budget, Draft 2017-18 Central Team Revenue Budget, Reserves, Grants and 2016-17 Statement of Accounts & Annual Governance Statement.

The ERW S151 Officer highlighted that the reduction in the projected outrun for 2016-17 was due to salaries being lower than anticipated, an element of salaries being applied against grant funding and the HR secondee being funded wholly from grant. It was noted that there was a reduction in the anticipated use of the local authority reserve.

In regards to the 2017-18 Draft Revenue Budget the increase in expenditure was primarily due to additional salary costs, which were an increase in the cost of living, increments and an additional post as part of the Central Team. The increase in facilitation costs were due to a new Communications Service Level Agreement (SLA). It was explained that a prudent approach was being taken to grant funding administration until the grant amounts and details had been received. It was confirmed that if there was more grant allocation then there could be an increase in the grant administration which would reduce the funding expectation from Local Authorities. It was highlighted that no formal grant letters had been received and the projected grant funding was based on officer discussions with Welsh Government.

It was explained that the contribution from the six partner local authorities was pro-rated according to pupil numbers taken from Stats Wales. It was noted that the working reserve of 100k must be kept to deal with any future funding gaps and unexpected expenditure.

The timetable for the production and approval of ERW Statement of Accounts 2016-17 and the ERW Annual Governance Statement for 2016-17 was outlined, with approval to take place at the meeting of the Joint Committee in July 2017.

It was asked if the figures for grants identified for 2017-18 included any grants that had to be spent by March 2017. The ERW S151 Officer explained that the majority of the grant allocations had been allocated by financial year, however, there was some funding that had to be spent by March and had been received late on in the financial year.

UNANIMOUSLY AGREED

6.1       that the report be received;

6.2       that the Projected Outrun Budget for 2016-17 and the use of 60k from the local authority reserve be approved;

6.3       that the Draft Budget for 2017-18, which includes a total contribution of £250k from the six local authorities and the utilisation of £194k from the local authority reserve be approved;

6.4       that the funding of the Central Team Revenue Budget for 2018-19 onwards will be via increased contributions from the six local authorities as there will be a limited balance remaining in the local authority reserved be noted;

6.5       that the grants awarded to ERW for 2016-17 and indicative grants for ERW in 2017-18 be noted.

6.6       that the proposed timescale for the production, audit and approval of the ERW Statement of Accounts and ERW Annual Governance Statement for 2016-17 be approved.