Spring Supplementary Estimates 2010–11
Spring Supplementary Estimate 2010-11
OFFICE FOR STANDARDS IN EDUCATION, CHILDREN’S SERVICES AND SKILLS - ESTIMATE MEMORANDUM
Summary of Spring Supplementary
1. The Spring Supplementary seeks an increase in the resources available of £7,187,000.
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Request for Resource (RfR)
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Main
Estimate
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Spring Supplementary
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RfR 1 – Serving the interests of children and young people, parents, learners, employers and the wider community in England by promoting improvement in the quality of education, skills and young people’s care through independent inspection, regulation and reporting.
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£186,110,000
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£193,297,000
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Total net resource requirement
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£186,110,000
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£193,297,000
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Net cash requirement
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£182,324,000
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£196,373.000
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Summary of Spring Supplementary Estimate Supply sought compared to the Main Estimate 2010-11 cover.
2. There were no changes to provision in the Winter Supplementary Estimate. The main areas of DEL change compared to the Main Estimate are as follows:
·
Take up of Departmental Unallocated Provision £3,661,000;
·
Transfer of resource to capital expenditure £250,000;
·
Increase in take up of provisions £3,776,000;
·
Increase in income offset by changes in spending £1,000,000.
Detailed explanation of the changes to the Estimate
RFR1
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A
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Take up of Departmental Unallocated Provision of £3,661,000 to increase provision for registration and inspection. Ofsted have taken on some additional areas of responsibility from the Department for Education (DfE) including EYFS additional judgements and the Early Years inspection cycle. In 2010-11, this additional work will be funded from the Departmental Unallocated Provision rather than seeking a transfer of resource from DfE.
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A
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Transfer of £250,000 resource to capital to allow Ofsted to invest in capital assets including new servers. Ofsted’s capital plans also include IT assets to support the Moving Forward project which includes an office move in Manchester.
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Changes in Annually Managed Expenditure (AME)
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B
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An increase of £3,766,000 due to the take up of provisions to recognise early departure costs emanating from a restructure of Early Years to address the over-capacity in some parts of the country.
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Other Changes
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A
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An increase in operating appropriations-in-aid of £1,000,000 which is fully offset by changes in spending. This income is additional income from inspections and regulations rather than a new source of income.
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A change in accounting policies in respect of cost of capital charges (CCC). CCC have been removed from accounts, budget and Supply Estimates in accordance with HM Treasury’s Consolidated Budgeting Guidance. However, the Department has liabilities greater than its assets and so attracted a cost of capital credit. The removal of the CCC increases resource DEL. The Prior Period Adjustment in respect of 2008-09 and 2009-10 is set out.
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Changes in Departmental Capital
3. There is a transfer of £250,000 from Resource to capital to allow Ofsted to invest in capital assets including new servers. Ofsted’s capital plans also include IT assets to support the Moving Forward project which includes an office move in Manchester.
Administration budget
4.
The Administration budget will remain unchanged from the Main Estimate at £27,337,000.
Departmental Expenditure Limits (DEL)
5. The Supplementary Estimate will decrease Ofsted’s net resource DEL by £250,000 from £190,196,000 to £189,946,000. There was no capital DEL in the Main Estimate, the Supplementary Estimate will increase capital DEL to £250,000.
6. Within the DEL change, the impact on resources and capital are as set out in the following table:
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Resources
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Capital**
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Change
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New DEL
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Of which:
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Change
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New DEL
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Of which:
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Voted
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Non-voted
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Voted
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Non- voted
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£’000
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£’000
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£’000
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£’000
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£’000
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£’000
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£’000
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£’000
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Resource DEL
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-250
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189,946
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178,875
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11,071
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250
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250
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250
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0
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Of which
Admin Budget
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0
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27,337
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27,337
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0
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0
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0
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0
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0
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Depreciation*
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0
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-4,146
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-4,146
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0
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0
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0
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0
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0
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Total
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-250
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185,800
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174,729
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11,071
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250
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250
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250
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0
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*Depreciation, which forms part of resource DEL, is excluded from the total DEL, in the table above, since capital DEL includes capital spending, and to include depreciation of those assets would lead to double counting.
**Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets.
Provisions and Liabilities
7. In addition to the change in Annually Managed Expenditure outlined above, use of provisions has been increased by £10,388,000. This is primarily as a result of meeting previously known redundancy and pension shortfall commitments which had arisen from a restructure of Early Years to address the over-capacity in some parts of the country.
Glossary of Key Terms
Annually Managed Expenditure – a Treasury budgetary control for spending that is generally difficult to control and volatile in nature.
Departmental Expenditure Limit - a Treasury budgetary control for spending that is within the department’s direct control and can therefore be planned over an extended period.
Departmental Unallocated Provision – a part of a department’s total DEL that is not allocated to particular spending but is held back by the department to meet unforeseen pressures.
Request for Resources (RfR) – a function based description of the organisational level of the department. These can vary between one or more RfRs and should be objective based, referring to the purpose for which the functions being carried out by the Department are intended to meet.
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