Governors

Course 6 - School Finance and what to

assess

Pat Harvey

School Finance

• Academies – limited by guarantee (Academies Act 2010)

and statutory duties of company directors (Companies

Act 2006)

• LA Maintained Schools – (section 151 officer) DfE

Aims of Session

https://www.gov.uk/government/uploads/system/uploads/attachment_d

ata/file/270398/Governors-Handbook-January-2014.pdf

• DfE Governors Handbook – Jan 2014

• School Finance

• Sources of Funding

• Specific examples

• Questions and answers

The School Budget and Funding • Dedicated Schools budget (DSG)

• Pupil Premium

• Pupil Premium – Early Years

• Early Years Funding (EYSFF)

• Post 16 mainstream (6th Form funding)

• Universal infant free school meals grant

• School Fund account

• PE and Sport grant

• Summer School grant

• Education services grant (academies)

• Devolved Formula Grant (Capital)

Starter activity - which / how many of these have you discussed as a

GB

DSG Funding proposed amounts 2015-16 Factor Details Unit Value (£) Total Allocated (£)

AWPU - Primary 3,843 85,340,964

AWPU - KS3 4,609 30,420,709

AWPU - KS4 5,446 23,651,978

Deprivation - Primaries - FSM ever 6 335 2,943,446

Deprivation - Secondaries - FSM ever 6 475 2,370,332

Deprivation - IDACI band 5 50 214,093

Deprivation - IDACI band 6 100 154,657

Looked After Children - LAC 500 79,091

Low Attainment year 1

Low Attainment % Y2-5 78

800 5,396,139

Secondary pupils not achieving (KS2 level 4 English or Maths) 1,400 4,281,298

EAL - Primaries - EAL 3 585 4,112,788

EAL - Secondaries - EAL 3 1,400 953,186

Mobility - Primaries 504 897,607

Mobility - Secondaries 700 93,121

Lump sum - Primaried 120,000 5,160,000

Lump sum - Secondaries 120,000 1,200,000

Additional lump sum for schools amalgamated during FY14-15 48,000 48,000

Split Sites - Primaries 100,000 500,000

Split Sites Secondaries 216,000 432,000

Rates as funded 3,831,328

PFI Funding as agreed 2,805,494

DSG “other factors” Factor Further Information

Mandatory Factors

Basic Per Pupil

Entitlement

Local authorities are permitted to choose different age-weighted pupil unit (AWPU)

rates for primary pupils, for key stage 3 pupils and for key stage 4 pupils;

Deprivation Deprivation Measured by Free School Meals (FSM) or FSM Ever 6 and Income

Deprivation Affecting Children Index (IDACI).

Optional Factors

Looked After

Children

Local authorities could use one of three indicators: children looked after for any period

of time, for at least 6 months, or for at least 12 months, as at the March 2012 SSDA903

data collection.

Prior Attainment May be applied for Primary pupils identified as not achieving a good level of

development within the Early Years Foundation Stage Profile (EYFSP) and for

Secondary Pupils not achieving Level 4 at Key Stage 2 in either English or Maths.

English as an

Additional Language

EAL pupils may attract funding for a maximum of three years after the pupil enters the

statutory school system.

Pupil Mobility Pupil Mobility Funding may be targeted at schools experiencing pupil mobility above a

10% threshold.

Split Site The allocations must be based on objective criteria for the definition oft he split site.

Rates These must be funded at the Authority’s estimate of actual cost. Any adjustment to the

estimate must be made in the next funding period.

Private Finance

Initiative

The allocations must be based on objective criteria capable of being replicated in any

academies in the authority area.

2015/16 DSG budget

£27,732

£13,285 £7,241

£184,708

DSG Block Values

DSG Block Value £'000

High Needs Block £27,732

Early Years Block £13,285

2 Year Old

Provision £7,241

Schools Block £184,708

£232,966

Population Growth in LBBD

• Rapid population growth; real term increase of 29% in 0-17 year olds in

LBBD in last 10 years – significantly higher than London (and nationally)

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% y

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Cumulative % increase in the 0-17 population: 2001-02 to 2020-21 0-17 increase in Barking & Dagenham

Overall increase in B & D: all ages

0-17 increase in London

2014 -2020 GLA Population Projections

Age

2014 2020 Actual increase Annual increase

(average) % Increase

% Annual increase

(average)

0-4 19,363 20,426 1,063 152 5.5% 0.8%

5-9 17,256 18,766 1,510 216 8.8% 1.3%

10-14 13,005 16,969 3,964 566 30.5% 4.4%

20-24 14,470 15,103 633 90 4.4% 0.6%

25-29 16,264 17,920 1,656 237 10.2% 1.5%

30-34 16,895 18,929 2,034 291 12.0% 1.7%

35-39 15,525 18,469 2,944 421 19.0% 2.7%

DATA SOURCE: GLA 2013 Trend based (Central) Population Projections

Salaries Budget SCHOOL BUDGET MONITORING - Example Primary School

30 June 2015

CFR

Code HEADING

2014-15

Outturn

SCHOOLS

BUDGET as

at 29/06/15

LBBD

BUDGET

as at

02/07/15

EXPEND

ITURE

TO END

OF PROJECTE

D

OUTTURN

SIGNIFICA

NT

OVERSPE

ND (-)

UNDER

SPEND (+)

%

VARIA

NCE

RISK

CATE

GORY

COMMENTS

30 June

2015

E01

Teaching

staff 1,874,404 2,220,708 2,220,708 522,490 2,874,190 -653,482 -29% RED

Assume to spend as

per budget plan

E02

Supply

teaching staff 7,845 0 0 20,000 -20,000 0% GREEN

Assume to spend as

per budget plan

E26

Agency

supply

teaching staff 288,822 40,000 40,000 11,139 40,000 0 0% GREEN

Is this budget enough

based on current

spend?

E03

Education

support staff 817,532 872,023 872,023 230,322 878,880 -6,857 -1% GREEN Needs Reviewing

E04

Premises

staff 149,328 167,574 167,574 43,959 173,784 -6,210 -4% GREEN

Assume to spend as

per budget plan

Salaries budget ... Cont’d

SCHOOL BUDGET MONITORING - Example Primary School

30 June 2015

CFR

Code HEADING

2014-15

Outturn

SCHOOLS

BUDGET as

at 29/06/15

LBBD

BUDGET as

at 02/07/15

EXPENDIT

URE TO

END OF PROJECTED

OUTTURN

SIGNIFICANT

OVERSPEND

(-) UNDER

SPEND (+)

%

VARIANC

E RISK

CATEGOR

Y

COMMENT

S

30 June

2015

Total

Staffing 3,895,061 3,632,808 3,632,808 943,994 4,540,084 -907,276

Specific items

• Salaries budget / ratio

• Agency budget - exit strategy

• Supply teachers – insurance v one off costs

• Other staff - explanation

• Expenditure (total)

• Budget – virement; explanations on both over/under spends

• Income budget

• School Fund account

• School balances and use of resources

• Surplus/deficit

Specific items (continued)

• Schools Facing Financial Difficulties

• Use of resources

• LA Fairer Funding and pupil changes - reporting

• Scheme of delegation

• Capital and building programs, including expansions/growth

• Funding supporting SEND children

• Best Value – comparison

• School development plan

School Balances

• 2013/14 TOTAL School Balances £16.5m

(committed £10.5m = £6m)

• 2014/15 TOTAL School Balances £16.3m

(committed reported £12m = £4.3m)

– 5% and 8%

– Challenge

School Forum

• Section 47A of the School Standards and Framework Act 1998 and The

Schools Forums (England) Regulations 2012

• Members – HTs, school governors, Academies, PRU, PVI, 14-19,

diocesan, TU

Pupil Numbers (Jan

15)

No. of reps

Representing

Primary Schools 22,298 7

Secondary Schools 8,433 4

Academies & Free

Schools/Special

4,724 2

Total 35,455 13

Special Schools 258 Places 1

PRU 186 Places 1

15

School Forum members ..., continued

• Early years Representative

• Church of England Representative

• Catholic Representative

• 14 – 19 Representative

• Trade Union Representative (Total 5)

•

Example of Finance Committee information AUTUMN TERM

• Annual review of terms of reference and levels of financial delegation (Governing body).

• Annual review of register of business interests

• Budget Monitoring (inc. impact on budget of any staffing changes)

• Completion of Annual Financial Management checklist

• Approval of Statement of Internal Control

• Review expenditure and spending/monitor

• Review budget and virements

• Review Matrix of Financial Management Competency

• Establish Financial Management Training needs

• Financial Risk and Control Checklist

• Audit Report

• Pupil Premium

• Staff overtime

• Formula Revenue grant (2016-17 proposals)

• Capital Grant

• School Fund account

• Timetable for submission of financial documents to local authority:

• 15th December: Statement of Internal Control

• 27th January: Service Level Agreement Buy-backs

• End of April: End of Year Adjustments/Papers and Committed school balances

• 16th October : Q2 Revenue Monitor

Example of Finance Committee information SPRING TERM

• Budget monitoring

• Compare statistics for expenditure per pupil or other appropriate yard-stick using CFR bench-marking website

• Consideration of Bench-Marking Report

• Review Bench-marking data and prepare action plan

• Review current year budget and project outturn

• Production of staffing projections for teachers and support staff for forthcoming financial year

• Outline budget for next financial year utilising indicative budget and approximation of current year carry-forward

• Consideration of Service Level Agreements

• Approval of ‘Best Value’ Statement for forthcoming year

• Circulation of Whistle-Blowing Policy to all staff/governors

• Assignment of Surplus Balance to Projects

• Review expenditure and spending

• Set budget - provisional

• Risk Management Audit

• Statement of Internal Control

• Review Bench-marking

• Review Best Value Statement

• Review Financial Controls and Procedures Manual

• Review Finance manual

• Review Fair Funding Scheme

• Timetable for submission of financial documents to local authority:

• 1st April: Initial Budget Plan

• End of April: End of Year Adjustments/Papers and Committed school balances

• SFVS (School Financial Value Standard)

Example of Finance Committee information WINTER TERM

• Consider and review staffing establishment in light of school’s needs

• Adjust budget allocations in light of definitive under-spend (should be relatively minimal impact)

• June: Consider and sign off Statement of Internal Control

• Submit a statement indicating how the school plans to address ‘Best Value’ during the forthcoming year

• Budget monitoring

• Ensure School Fund (private funds) is independently examined

• Assignment of carry-forward balances to future projects

• Approval of School Development Plan

• Review of previous year’s ‘Best Value’ statement

• Annual check of stock and security marking

• Review of Write-Off/Disposal Policy

• Review expenditure and spending

• Review pupil forecast

• Review Service Level Agreements

• Review budget

• Review Financial Summary including:

• - Balances

• - Cost Centre Summary

• - Transactions

• - CFR Report

• - Outturn Statement

Timetable for submission of financial documents to local authority:

• 31st May: Assignment of Balances

• 30th June: School Development Plan / ‘Best Value’ Statement and 3 Year budget plan

• 17th July : Q1 Revenue Monitor

Questions

Queries

Answers

Clarification

Patricia.harvey@lbbd.gov.uk