budget briefings for governors 2014-15 financial year
TRANSCRIPT
Budget Briefings for Governors 2014-15
Financial Year
toilets
fire exits
breaks
timings
phones
confidentiality
Domestics
What are we going to cover?
• Governor Responsibilities• Context and Changes • National formula
– Schools Block
– High Needs
– Early Years
• SOR• Messages from our Partners – Schools
Choice
Governor Responsibilities
Governor Responsibilities
Statutory responsibilities • detailed in Education Act 2002, Section 21
Responsibilities include:• Managing the school budget
• Deciding how to spend the school budget
• Insuring accurate school accounts are kept
• Determining the number and type of staff
• Acting as a critical friend to the Headteacher by providing advice, challenge and support
Governor Responsibilities:Critical Friend
Statutory responsibility to support and challenge the Headteacher
– Resources deployed appropriately
– Financial performance achieved
– Avoidance on loss and waste
– Favourable audit assessments
– Achieve educational outcomes
Governor Responsibilities: DfE
School governing bodies should focus on
three core functions:
• ensuring financial resources are well spent.
• setting the vision and strategic direction for the school.
• holding the head teacher to account.
Financial Context• Cash Frozen Dedicated Schools Grant (DSG) -
Guaranteed Unit of Funding will remain at £4,676.45 for the fourth year.
• Comprehensive review by the Government.
• Pupil Premium will continue to be funded as an allocation outside of DSG
• Minimum Funding Guarantee minus 1.5%,Gains are capped at 6.25%
• SCC Funding pressures
• New FSM Arrangements
Pupil Premium
• This is the only source of growth in funding to schools.
New Rates• £1,300 for primary-aged pupils• £935 for secondary-aged pupils• £1,900 for all looked after children• £300 for service children
Suffolk County Council Future Funding Challenge
• From Sept 2014 every child in R, Y1 and 2 will be offered a FSM.
• Suffolk has £1.7m capital funding to help upgrade Kitchens and Dining facilities.
- this will be allocated based on LA assessment of need.
- insufficient funding for all schools needs so will be based on greatest need.
New arrangements for Free School Meals (FSM)
• The government has announced that Schools will be allocated a flat rate of £2.30 per meal taken. Allocated on School Census next year.
• No clear guidance on funding in 2014-15.
• We assume that this year an allocation will be made based on January Census with an assumed % taken up.
• We assume this will be allocated as a targeted grant that we will passport through to schools.
• We assume this funding will be available to allocate before September.
New arrangements for Free School Meals (FSM) - Revenue
Key Points• DSG will be allocated in three blocks;
• These blocks are not ring-fenced• Funding can be moved between blocks – with School
Forum approval.
Total DSG
Academies
• Schools Accountancy Team calculates academy budgets in the same way as Local Authority (LA) maintained schools
• Funding recouped by Education Funding Agency (EFA) who calculate academy budgets– EFA uses same Formula as LA– Extra funds for additional responsibilities
• Funded from September to August to reflect the academic year
This session is primarily aimed at maintained schools, but still applies to academies
General Annual Grant (GAG)
Any Questions ?
National Data set
• All data used is provided by the EFA.• It is based on returns submitted by schools• The main driver is pupil numbers
– October census
• With the exception of pupil numbers all other data comes in as a % profile
Overall Pupil led funding is 88.40%
Government Review
• The DfE has reviewed all the LA
2013-14 pro forma submissions • With a view to ensuring that all schools are
moving in the same direction, ready for a National
formula.• As a result the DfE are making a few minor
changes
Locally Agreed Changes
• Deprivation – moving funding to FSM band, from the IDACI bands.
• Removing Mobility factor.
• Introducing the Sparsity factor
• Rent – Exceptional Factor
LCHI SEN in 2014-15
Low Cost, High Incidence (LCHI) – measure haschanged for secondary.
WAS – Not attaining level 4 in English and Maths.NOW – Not attaining level 4 in English or Maths.
Nationally this will pick up an extra 10% of pupils.
In Suffolk it means an additional 6,600 pupils nowqualify.
School A
School B
1 mile
1 mile 2
miles1 mile
3 miles
5 miles
2 miles
4 miles
Key1st nearest school
Distance to 2nd nearest school
How the sparsity factor will work
School C
New Factor - Sparsity
Sparsity ConditionsPrimary – Less than 150 pupils on roll and aminimum average of 2 miles.
Middle - Less than 600 pupils on rolland a minimum average of 2 miles.
Secondary – Less than 600 pupils on rolland a minimum average of 3 miles.
Allocation for qualifying schools of £100,000tapered to number of pupils on roll.
Sparsity and MFG
• Sparsity Funding will be removed from Schools baselines (like the Lump Sum).
• The affect of capping and MFG means most schools receiving sparsity won’t see any cash benefit. But it may mean that your school no longer needs MFG.
0.64% of funding allocated through this factor.
Pupil Led Factors
1) A basic per-pupil entitlement
- Primary unit £2,606
- KS3 unit £3,809
- KS4 unit £4,21375.33% of funding allocated through this factor
2) Deprivation
6.54% of funding allocated through this factor.
Amount Per Pupil
(£)
Increase/decrease compared to
2013/14
Free School Meals £400.00 £320.00IDACI Score 0.00 - 0.20 £0.00 £0.00IDACI Score 0.20 - 0.25 £165.00 -£25.00IDACI Score 0.25 - 0.30 £540.00 -£60.00IDACI Score 0.30 - 0.40 £1,230.00 -£277.00IDACI Score 0.40 - 0.50 £1,280.00 -£227.00IDACI Score 0.50 - 0.60 £1,365.00 -£212.00IDACI Score 0.60 - 1.00 £1,605.00 -£92.00
3) Looked After Children • £925 - cash sum for each looked after child, the same for primary and
secondary 0.09% of funding allocated through this factor
4) Low Cost, High Incidence SEN• Not linked to individual pupils• For Primary - less than 78 points at Early Years Foundation Stage -
£885.00• For Secondary - level 3 or below in English or Maths at KS2 -
£1,110.00
5.94% of funding allocated through this factor
5) Mobility• Will not be used in the 2014-15 Suffolk formula
6) English as an Additional Language (EAL)• £1,500 for each eligible pupil for their first year in education, the same
rate for primary and secondary 0.49% of funding allocated through this factor
7) Lump Sum• The same for all schools, whatever size or phase.• Value - £114,000
9.47% of funding allocated through this factor
8) Split Sites• Suffolk had to develop a new policy that was clear and transparent.• To assist schools with transport costs between sites.• Primary - £1,000 Secondary - £5,000
0.02% of funding allocated through this factor
9) Rates • Schools will be funded on actual costs as now.
1.45% of funding allocated through this factor
10) Exceptional Factors - Rent• Paid on actuals to those qualifying schools.
0.03% of funding allocated through this factor
Other Factors
Minimum Funding Guarantee and Capping• DfE has:
– set the MFG -1.5% 2014-15 (same as 2013-14)– stated that MFG will continue in 2015-16 but have not specified
at what level
• The LA will need to apply a cap per pupil to fund the MFG, the cap for 2014-15 is 6.25%
• Schools with MFG, £ per pupil is protected from falling by no more than -1.5%
• Compares 2013-14 MFG £ Per Pupil with 2014-2015 MFG £ Per Pupil
• MFG does not protect the overall budget, if pupil numbers fall funding falls.
What does this mean for schools?
• Similar funding in 2014-15 to 2013-14
• Does have implications for the future
• Differences between formula budget and cash budget do matter
Any Questions ?
Capital• Funding remains at low level for both schools and LA• Projected Funding to LA
• Plus additional £1.7m for FSM policy• SCC priorities remain:
– School Organisational Review– Urgent Health and Safety condition work– Place provision
2014-15 2015-16 2016-17
Maintenance 9.7m 9.5m(estimate)
9m(estimate)
Basic Need 10.9m 1.0m 1.0m
Per School Per Primary Full time equivalent Pupil
Per Secondary Full time equivalent Pupil
Per PRU or Special Full time equivalent pupil
£4,000 £11.25 £16.88 £33.75
Devolved Formula Capital Rates(non VA schools)
• VA Schools hear direct from their diocese
-Buildings are legal responsibility of aiding bodies/governors
-Any spend on buildings seen as a donation to aiding bodies funds
-VAT not recoverable, however may be changes to VAT treatment
-10% contribution from the schools own budget
Recap High Cost pupils in Mainstream Settings
The ‘Place–Plus’ approach comprises two parts:1. Funding in Delegated Budget (Schools Block): The
first £10k for pupils with Special Education Needs (SEN) has to be met from the schools’ own delegated budget
2. Top up funding (High Needs Block): Funding for pupils costing over £10k p.a. can be claimed from the Local Authority. Amount is based on the assessment of individual pupil needs
SLU’s, HIUs and SCCs are paid at £10k per commissioned place andtop up can be claimed from the LA. Top up is based on theassessment of pupil needs. This is paid at 25% of full value for SSCs.
Recap Dual Placements - Special School
• This is where the special school is listed on the statement as the main school.
• Special School receives: From SCC– Full place funding of £10,000– Top up funding for the full year based on the needs of the
individual child even if the child leaves permanently.– £500 admin fee per dually placed child.
• Mainstream School receives: From Special School– £15,000 pro rata based on the no. of sessions delivered.
Dual Placements - Mainstream School• This is where the Mainstream school is listed on the census as the
main school and is dually placed at a Special.
• Mainstream School receives: SCC– Schools Block funding – i.e. the first £10,000– Top up funding for the full year based on the needs of the individual child.
Cannot claim if child leaves permanently – £500 admin fee per dually placed child
• Special School receives: Mainstream School– If under subscribed on commissioned places - £5,000 Top up pro-rated for
the actual sessions attended– If over subscribed on commissioned places - £15,000 pro-rated for the
actual sessions attended
• The Mainstream School is responsible for processing the payment
Early Years Block – Changes from 2013/14• The LA has increased the base rate payment to
providers by up to 12.8%.• The LA has increased block payments to PVI
providers
- £1,665 (if based on school site)
- £3,330 (if not on a school site).• There are revised arrangements for additional
support for SEN.
Early Years Block – High Needs FundingRevised arrangements for SEN•The changes to SEN will bring Early Years in line with Schools.•This means that the first £2,550 will be with the provider through their delegated budget.•Children whose needs cost more than £2,550 to support will need to apply to the LA for top ups.
Any Questions ?
Future Funding
Budget Process
Two Step Process
• First Step: 2014-15 Budget– Detailed line-by-line– Agreed by governors by 31st March 2014– Electronic copy to LA by 1st May 2014– Submitted via AVCO
Strategic Plans: 2015-17
Second Step: 2015-16 & 2016-17 Budgets Highlevel plans:
– focus on change, not detail– includes LA’s indicative assumptions
• Only 2 versions:– realistic and worst-case
• Governors to agree Strategic Plans by Summer half-term
• Electronic copy to LA by 30th May 2014
Any Questions ?
Schools Organisation Review
Revenue Funding:
• National funding formula
• Non recurrent funding
Capital Funding:
• LA funding
• Devolved Formula Capital
2013-14 Transitions of Year Groups
• Group 4 - Thurston pyramid – Primary schools: 2nd year of transition– Middle schools: Year of closure– High schools: Transition of Years 7 & 8
• Group 5 - Stowmarket/Stowupland pyramids– Primary schools: 1st year transition– Middle schools: 1st year transition
Revenue – National Funding Formula
Two fundamental principles retained:
1. Schools funded for pupils in school as pupil numbers change due to addition/loss of year group(s) during financial year
2. Financial protection for middle schools to facilitate breadth of curriculum and standards of progress and attainment prior to closure
Revenue – National Funding Formula
Pupil NumbersYear of transition
• pupil numbers weighted using actual pupil numbers for April to August (5 m) and to reflect the new structure, revised pupil numbers for the school for September to March (7 m)
• applies also to funding factors that are determined by pupil numbers (e.g. deprivation, EAL, LAC, low cost SEN, mobility)
• middle schools have Y5 pupil numbers adjusted in first year of transition
Pupil number calculation
Primary schools
April – AugustAnnual budget based on October Census pupil count x 5/12 months
September - March
Annual budget based on projected change in pupil count
x 7/12 months
= 12/12 Annual Budget
First Year of transition• Year 4 is repeated to represent the new Year 5 from September
Second Year• Year 5 is repeated to represent the new Year 6 from September
Pupil number calculation
Upper/High schools
April – AugustAnnual budget based on October Census pupil count
x 5/12 months
September - March
100% of October Census Yrs 9-11 pupil count
plus
Estimate of the additional Yr 7 & 8 pupil numbers agreed with school
x 7/12 months
= 12/12 Annual Budget
Pupil number calculation
Middle schools – First year of transition
April – AugustAnnual budget based on October Census pupil count for Y 5, 6, 7 & 8
x 5/12 months
September - March
Annual budget based on projected pupil numbers in Y 6, 7 & 8 only (no new Y5)
x 7/12 months
= 12/12 Annual Budget
Pupil number calculation
Middle schools – Year of closure
April – AugustAnnual budget based on October Census pupil count for Y 6, 7 & 8
x 5/12 months
September - March School closed
= 5/12 Annual Budget
Pupil Number Adjustment for Middle Schools
• First year of transition only• Calculate total reduction in pupil numbers and then increase Y5 pupil
numbers by 50% of the reduction to provide additional pupil funding.
480 Middle School
Year 1 of TransitionPupil Numbers First Yr of Transition Fund 50% of decrease in budgetprior to SOR Apr-Aug Sept-Mar Total Additional Total
Pupil Nos 5m Pupil Nos 7m Weighted Funded UpliftedPupil No.s Pupils Pupil No.s
Pupil Funding (74%)
Key Stage 2 (Yr 5) 120 120 50 0 0 50 35 85Key Stage 2 (Yr 6) 120 120 50 120 70 120 120Key Stage 3 (Yr 7) 120 120 50 120 70 120 120Key Stage 3 (Yr 8) 120 120 50 120 70 120 120
480 480 360
Total Pupil Numbers 480 410 35 445
Total Pupil Numbers on which budget calculated 445
Pupil Number Table
Revenue formula funding - Key points
• 2014-15 budget reflects transfer of pupils in the period April 2014 to March 2015
• Weighted pupil numbers used to calculate budget• Principle applies to all funding factors determined by
pupil numbers• Additional funding for middle schools in first year of
transition• No adjustment if pupil numbers in September are
lower than forecast• Single lump sum per school• Split site funding where applicable• LMS 2012/27
Note: High Needs top up funding which is required for pupils in the newyear group(s) will need to be claimed by primary or secondary school aspart of the termly claim
Growth funding • not part of formula funding budget• £5k paid to school for each additional class• Significant growth of >10 classes - block amount plus
funding for class as above or £7.5k for specialist classrooms (but may be “in kind” from closing MS)
Other transition costs• not part of delegated budget• funded by LA for: Training, coordination, relocation,
temporary accommodation, redundancy, salary safeguarding
Revenue – non recurrent funding
• LA capital funding allocated for the building work required
• Schools are not required to contribute DFC to the capital costs
• Schools can use DFC for additional work/improvements
• No loans are available
• Once the closure of a middle school is confirmed, the DFC will be retained centrally with effect from the following financial year, until the year of closure
• Middle schools can access DFC for health & safety work
SOR Capital & Devolved Formula Capital (DFC)
Allocation of surplus/deficits• To be managed collectively across DSG as a whole• Middle schools will be expected to set a balanced
budget and not be permitted to plan for a deficit
Other assets• Curriculum materials and F&E will be allocated to
primary and upper schools as per the ‘Protocol for the redistribution of middle school resources’.
Redistribution Of Middle School Assets
School Finance Helpline: 08456 [email protected]
Schools Accountancy Team: 01473 [email protected]
SOR Policy: 01473 [email protected]
Enhanced Finance Service: 01473 [email protected]
Contacts
Now a message from our partners