Agenda item

To consider the report and adopt the base budget for April – May 2025/26

DECISION:

·       To accept and approve the report.

·       Feedback from the Host Authority meeting with the Welsh Government's Deputy Director of Education to be shared with the Joint Committee.

·       That a letter of support / political statement from the Joint Committee be submitted to the Host Authority supporting their concerns of the additional costs to wind up GwE due to a delay by the Government in the use of the LEA Grant to support Professional Learning.

The report of Cyngor Gwynedd’s Head of Finance detailing a budget for GwE for the two months to the end of May 2025 was presented, following a slippage in the GwE termination timetable to 31 May 2025.  It was noted that, as was the case for budgets in any year, a routine procedure of increasing the budgets to include necessary inflation rates and consideration of the pay settlement, etc. had been carried out.  Following this, it was reported that two months' worth of budget had been provided for relevant headings with some exceptions. 

The following headings were highlighted:

·        Employees – staffing costs based on the number of staff employed on 1 February 2025, so a two-month budget had been provided for them.

·        Rent, travel costs, national programmes/commissioning – two months' worth of budget had been provided. 

·        Supplies and Services – there was no budget included on the Information Technology heading, as it was a contribution to a renewal fund, so for obvious reasons, there would be no budget for it.

·        Audit Fees – Audit Wales would have to audit the accounts, and therefore a fee would have to be paid to them to carry out the audit.  It was noted that the full amount had been included, but while this could not be guaranteed, it was hoped that it would be less.

·        Host Authority Support Services Costs – two months' worth of budget had been set on these headings, with the exception of Finance, as there would be a statutory requirement to prepare a full set of accounts, although it would only need to be calculated for a period of two months.  The budget therefore reflected this work and the work required by the Finance Department during the audit period with Audit Wales.

·        National model and specific projects – no budget provided.

·        Services commissioned by the Authorities – two months’ budget had been set.

As a result of the projections above, the total expenditure budget was considered to be set at £1.2 million (12% of the 2024/25 budget, which was less than 1 in 6 in value, i.e. two months, which was 17%).  In terms of funding these costs, reference was made to the core contributions and the relevant rates noted as the authorities' contributions, with two months’ worth provided.

The Assistant Head of Finance – Accounting and Pensions (Cyngor Gwynedd) emphasised that this budget was only a projection, and that it was expected that only the necessary expenditure would be made until the end of May.  It was confirmed that the claim would be made to the Authorities based on the true cost.

In the context of reserves, as the reserve had been used to fund the 2024/25 financial position, it was not available for 2025/26.

Thanks was expressed for the report.

During the subsequent discussion, members submitted the following observations:

·        The budget was welcomed although more clarification/rationale was needed for some of the decisions – a suggestion that the matter be discussed/challenged in the Transitional Board with feedback to the next meeting of the Joint Committee.

·        A delay by the Welsh Government in winding up GwE had led to additional costs – why then were the Councils facing the costs?  A suggestion to write to the Government asking for clarity on the delay and a request to Cyngor Gwynedd (as the Host Authority) to discuss the matter in a meeting with the Welsh Government's Deputy Director of Education.

·        To propose that a letter of support/political statement from the Joint Committee be submitted to the Host Authority supporting their concerns surrounding the additional costs to wind up GwE due to the delay by the Government in relation to the use of the Local Authority Education Grant (LAEG) to support Professional Learning. ⁠⁠

In response to a question about receiving feedback from Cyngor Gwynedd's meeting with the Welsh Government's Deputy Director of Education, it was noted that no date or time had been confirmed at present, but the outcome of the meeting would certainly be shared with the Joint Committee. It was reiterated that time was short and that clarity and certainty of the financial situation were needed before the Joint Committee meeting in May.

It was proposed and seconded to approve the report.

         RESOLVED:

·        To accept and approve the report.

·        Feedback from the Host Authority meeting with the Welsh Government's Deputy Director of Education to be shared with the Joint Committee.

·        That a letter of support/political statement from the Joint Committee be submitted to the Host Authority supporting their concerns surrounding the additional costs to wind up GwE due to the delay by the Government in relation to the use of the Local Authority Education Grant (LAEG) to support Professional Learning.