Budget Briefing Session for Governing Bodies

Wednesday 26 February 2014 7pm: LDC Scunthorpe Wednesday 5 March 2014 7pm: Castledyke Primary Becky McIntyre

Aims and Objectives

Opportunity to ask questions!

• • • Update on what’s happening Nationally re Schools and Education Funding What that means locally Other Finance and Governance issues

• • • •

School Funding

From April 2013, Dedicated Schools Grant 3 Block Allocations: – Schools Block – Early Years Block – High Needs Block Schools Funding based on nationally prescribed elements and data Following review, some elements updated for 2014 Plans remain for move to wholly national formula from 2015.

National Funding Reforms

NEW SPARSITY FACTOR

De-Delegation

• What is De-delegation?

A central budget can be formed from a contribution from Maintained Schools for certain education services.

• Who decides?

North Lincolnshire Schools Forum – Maintained School Representatives. The following budgets have been agreed to be held centrally:      Ethnic Minority and Traveller Achievement Service Free School Meals Eligibility Checking Service Primary Behaviour Support Service Specialist Teaching Team of the Education Psychology Service Trade Union Convenors

• • • • •

SEN Funding

Mainstream settings will be expected to contribute the first £6,000 of additional educational support for high needs pupils and students (from their funding formula shares).

A key element of the notional SEN budget is based on ‘proxy’ low cost high incident measure Notional SEN is based on 5% of Basic entitlement; 5% of Deprivation Factor and 100% of Low Cost High Incident Factor.

To be used to meet the needs of SEN/AEN pupils – defined in statement.

Costs above this will be funded through Top Up Payment.

Education Services Grant

• • • Prior to 2013, Academies received an additional funding stream in respect of functions that are the LA responsibility for Maintained Schools – LACSEG.

LACSEG replaced by Education Services Grant (ESG), Academies and LA’s receive ESG for these functions.

Academies are receiving a transitionally protected rate (2013 and 2014)

Pupil Premium

• • • • Pupil Premium 2014-15 £1,300 per eligible primary pupil £935 per eligible secondary pupil £1,900 for Looked After Children (one day or more) now includes adopted children and those in special guardianship arrangements £300 for Service Children (ever 4) Must publish

Pupil Premium – Good Practice

• The Pupil Premium: How schools are spending the funding successfully to maximise achievement – Ofsted February 2013 • Sutton Trust and Education Endowment Foundation Toolkit (updated February 2014)

PE Funding

Primary PE Grant 2013-16 Schools >17 pupils £8,000 plus £5 per pupil Schools<16 pupils £500 per pupil • Schools should publish the amount of grant received; how it has been spent (or will be spent) and what impact the school has seen on pupils’ PE and sport participation and attainment as a result, to help to ensure that all pupils develop healthy lifestyles. £18m nationally available from Sport England (Lottery funded) to improve outdoor space for PE and sporting activities http://www.sportengland.org/funding/our-different funds/primary-spaces/

Universal Free Meals Funding

• From September 2014 Schools will be required to offer a free lunch to every primary school child in reception classes, year 1 and year 2. • Funding will be £2.30 per meal taken, based on actual take-up by newly eligible infant pupils which will be measured in the Schools Census from next year. • Transitional funding for small schools, provided before the next academic year.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/275598/school_admissions_c ode_1_february_2012.pdf

(received 6 March 2014)

Devolved Formula Capital

Capital

Other allocations

Academies CTCs NMSSs Sixth form colleges

LA and VA allocations

LA DFC VA DFC

Total DFC

56,448,811 73,223 340,540 3,956,075 108,608,245 29,441,620

198,868,513

Capital

Maintenance Other allocations

Academies CTCs NMSSs Sixth form colleges

LA and VA allocations

LA maintenance VA maintenance £2m for Sure Start Centres included in LA maintained pot

Total Maintenance

441,223,807 657,570 1,531,550 57,678,535 553,135,210 145,773,327

1,200,000,000

2014-15

Capital

Basic need 2014-17 2015-16 2016-17 Total 2014-17 basic need 800,000,000 1,000,000,000 1,050,000,000 2,850,000,000

Capital

Universal infant free school meals capital Other allocations

Academies

LA and VA allocations

LA UIFSM capital VA UIFSM capital

Total UIFSM

20,856,157 102,742,203 26,401,641

150,000,000

Good Governance and Financial Management Governing bodies are the strategic leaders of our schools and have a vital role to play in making sure every child gets the best possible education. For maintained schools this is reflected in the law, which states that the purpose of maintained school governing bodies is to ‘conduct the school with a view to promoting high standards of educational achievement at the school’. • • • In all types of schools, governing bodies should have a strong focus on three core strategic functions: Ensuring clarity of vision, ethos and strategic direction;

Holding the headteacher to account for the educational

performance of the school and its pupils; and

Overseeing the financial performance of the school and

making sure its money is well spent.

Overseeing Financial Performance

Governing bodies are responsible for making sure their school’s money is well spent. They should do this by making sure they have at least one governor with specific skills and experience of financial matters, and by asking questions such as: – Are we allocating our resources in line with our strategic priorities? – Are we making full use of all our assets and efficient use of all our financial resources? – Are other schools buying things cheaper or getting better results with less spending per pupil? – How can we get better value for money from our budget?

Financial Decision Making

1. To approve the first formal budget plan each financial year* 2. To monitor monthly expenditure 3. Miscellaneous financial decisions (e.g. write-offs) 4. To investigate financial irregularities (head suspected) 5. To investigate irregularities (other suspected) 6. To enter into contracts (above set financial limit) 7. To enter into contracts (below set financial limit) 8. To make payments

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Other Key Decisions with Impact on Resources

Pay discretions (the head should not advise on his/her own pay) Determining dismissal payments / early retirement Determining staff complement To draw up a charging and remissions policy for activities (non NC based) in consultation with the LA*

To establish a performance management policy To implement the performance management policy To review annually the performance management policy

Buildings insurance - GB to seek advice from LA, diocese or trustees where appropriate Premises Strategy (including budgeting for repairs etc.) and Asset Management Plans To ensure provision of free school meals to those pupils meeting criteria

Governance Decisions

1. To set up a Register of Governors’ Business Interests 2. To approve and set up an Expenses scheme 3. To consider whether or not to exercise delegation of functions to individuals or committees* 4. To regulate the GB’s procedures (where not set out in law)* 5. To review at least once a year the establishment, terms of reference and membership of committees, including selection panels*

Schools Financial Value Standard (SFVS) • The standard is a mandatory requirement for local authority maintained schools. Governing bodies of maintained schools or management committees of pupil referral units (PRUs) have formal responsibility for the financial management of their schools, and so the standard is primarily aimed at governors or management committees. • The standard consists of 23 questions which governing bodies or management committees should formally discuss annually with the head teacher and senior staff and submit a signed copy to LA finance department.

Section A: the governing body and school staff Section B: setting the budget Section C: value for money Section D: protecting public money • Governors or management committees must monitor the progress of these actions to ensure that all actions are cleared within specified deadlines.

• LAs will use schools’ SFVS returns to inform their programme of financial assessment and audit should make the governing body, the management committee and the LA aware of any major discrepancies in judgements

Governing Body Health Check

C:\Users\becky mcintyre\Desktop\Worksheet in PowerPoint Slide Show - (governing body value for money health check (Read-Only)).xls

Good Governance

It is good practice for the board of governors to publish an annual governance statement (as academy trusts are required to do through the Accounts Direction) to explain how it has fulfilled its responsibilities – particularly in relation to its core functions, including: – the governance arrangements that are in place, including the remit of any committees; – the attendance record of individual governors at board and committee meetings; and – an assessment of the effectiveness and impact of the board and any committees with details of any particular challenges that have arisen.