Meeting documents
Cabinet
Wednesday, 7th February, 2007
APPENDIX 2
Connexions West of England
Funding, people and liabilities
Bath & North East Somerset
Connexions Service funding for 2006/20071,2 £ 1,380k.
Overhead costs 3 are 7% of funding £ 101k.
People - staff working on Connexions Services 4 in B&NES
Headcount 37
Full time equivalents: 28
Potential liabilities for the Council 5
Immediate liability - estimate £563k
Future liability - estimate £1,010k
Notes
1. Anticipated income for Connexions services for April to March - 2007/08:
Will be between £ 1,380k and £ 1,400k assuming no increase from 2006/2007 grant and depending upon young people population movements in B&NES relative to the rest of the country. Confirmation of Connexions income for 2007/08 is expected by 31st Dec. 2006.
2. Anticipated income for Connexions services for 2008/09 and 2009/10:
Figures for the next financial year are usually available by the end of the previous calendar year eg by Dec 06 for April to March - 2007/08. However for 2008/09, we anticipate receipt of an indicative budget by March 2007.
3. Overhead costs:
Include charges for corporate governance, financial services, human resources, health & safety, IT, audit, insurance. This cost has been reduced year on year for the last 2 years. It is anticipated that it will be no more than 7% in 2007/2008 onwards.
4. People Costs
Include all staff delivering a Connexions service in the Bath & North East Somerset area, employed by Connexions West of England. These figures exclude those in 3) above and those not working in the area.
5. Liabilities
Under this proposal, these liabilities will not crystallise. They are included to show potential liabilities for the council if this proposal is not progressed. Current potential liabilities are calculated on the basis of winding down the company in March 2007 and only include Bath & North East Somerset's share of overhead staff redundancies, premises lease costs novated after meeting lease obligations and sundry closure costs. People costs of service delivery are assumed to pass to Bath & North East Somerset without any severance costs.
Future potential liabilities indicate the potential costs of redundancy of people currently delivering the Connexions service in Bath & North East Somerset. If Bath & North East Somerset accepted a transfer of staff and other liabilities, these would be the potential liabilities that would fall to the council to settle if a situation occurred at any point in the future when this service has to be closed down and all staff made redundant.