Transcript Document

Schools Forum
School Funding
and Finance
December 2014
Contents
• Financial Context
– Corporate
– Children’s Services
• Children’s Services
– Statutory Responsibilities
– Funding sources and regulations
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School Funding Formula
Schools Forum responsibilities
Schools delegated responsibilities
Financial challenges
2014/15 Gross Expenditure £1.9bn
2014/15 Funding Sources –
including schools
2014/15 Funding Sources
– excluding schools
£0
Cumbria £260
Norfolk £254
Lancashire £252
Lincolnshire £242
Derbyshire £234
Devon £221
Nottinghamshire £221
Somerset £215
East Sussex £210
Suffolk £208
Kent £191
Northamptonshire £189
Gloucestershire £182
Essex £181
Staffordshire £178
North Yorkshire £173
Worcestershire £169
Warwickshire £159
Cambridgeshire £156
Dorset £153
Leicestershire £138
Oxfordshire £137
Hertfordshire £135
West Sussex £123
HAMPSHIRE £116
Buckinghamshire £108
Surrey £94
Upper Tier Funding Per Head 2014/15
£300
County Councils' Formula Grant Per Head
Fire tier funding has been excluded, so county councils responsible for
providing fire services are comparable with those not responsible for them
£250
£200
£150
£100
£50
Transforming the Council - Savings
Children’s Services – Savings
(Non-schools)
• 2010/11 - £4.8m in-year
• 2011/12 - £18.8m (incl £3.5m pressures) (8%
plus passported grant reductions)
• 2012/13 - £10.4m (8% balance)
• 2013/14 - £2.3m (2%)
• 2014/15 - £6.3m (EIG reduction)
• 2015/16 - £19.3m (12%)
• By 2017 - £20.5m (14.5%)
Schools and Non Schools Budgets 2009/10 – 2014/15
2009/10
2010/11¹
2011/12²
2012/13³
2013/14³
2014/15³
Schools
£796.8m
£805.2m
£812.6m
£821.1m
£851.8m
£882.9m
Non- Schools
£164.5m
£169.5m
£172.9m
£166.6m
£160.9m
£162.4m
¹ 2010/11 – Extended schools re-classified from schools to non schools
£3.5m. NB In-year ABG reduction of £4.9m (non schools)
² 2011/12 – Net Adjustment of grants reclassification - £19.9m from schools
to non-schools . £15.3m pressure non-schools. Schools ‘headroom’ £7.9m
³ Schools figures for 2012/13, 2013/14, 2014/15 include academy
recoupment - £107.6m, £145.5m, £157.3m respectively
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Schools 2014/15 Original Budget
£000
Dedicated Schools Grant (DSG)
Early Years Block
High Needs block
Schools block
Less funding for Academies
60,659
88,985
700,233
848,888
(157,276)
Sub-total
691,612
Less items managed by Policy and Resources
(6,684)
Pupil Premium Grant
39,406
Music Grant
Total schools budget managed by Children’s
Services
1,283
725,817
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Children’s Services Budget 2014/15
Cash
Limit
£000
Forecast
Outturn
Period 7
£000
Variance
£000
/%
Schools
735,878
732,791 (3,087)
0.4%
Non-schools
166,399
172,346 5,947
(3.6%)
Total
902,277
905,137 2,860
0.3%
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Children’s Services Capital
Capital programme
• Role of the local authority to strategically plan capital
investment
• 3 year programme (2014/15 to 2016/17) £238m (over 40
projects)
– 8,000 new primary school places across Hampshire
– New designed schools – 2 storeys, reduced floor area, constructing in
batches
• Priority areas :
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maintenance of existing buildings
Education centres
Special Education Needs
Children’s Homes
Infant Free School Meals
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Children’s Services Capital
Devolved formula capital (DFC)
• DfE grant – calculation set nationally
• DFC is calculated for all maintained mainstream nursery,
primary and secondary schools, special schools, pupil referral
units (PRUs), academies, sixth form colleges and nonmaintained special schools
• Paid to schools for local capital projects
• £3.4m in 2014/15
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Children’s Services – Statutory
responsibilities
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Director of Children’s Services
– Children Act 2004
– performance of local authority functions relating to the education
and social care of children and young people.
– ensuring that effective systems are in place for discharging these
functions, including where a local authority has commissioned any
services from another provider rather than delivering them itself.
– leadership, strategy and effectiveness of local authority children’s
services.
– securing the provision of services which address the needs of all
children and young people, including the most disadvantaged and
vulnerable, and their families and carers.
LA statutory services to schools
• Defined in regulations, includes:
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School improvement
Access to education e.g. place planning, admissions
home to school transport (including SEN)
education psychology, identification and assessment of
children with high needs
Making and monitoring of statements
commissioning and monitoring of high needs provision
prosecution of parents for non-attendance
education other than at school including virtual school
Strategic management e.g. role of the DCS, budget
preparation, financial assurance, internal audit etc.
Data linkage between LA and schools
Regulations
• The School and Early Years Finance (England)
Regulations
• Children Act 2004
• Assorted Education Acts
• School Standards and Framework Act 1998
• Education and Inspections Act 2006
• Apprenticeships, Skills, Children and Learning Act
2009
How schools are funded
• Spend only permitted in line with Schools and
Early Years Finance Regulations
• Funded through:
– Dedicated schools grant
– Additional funding to schools through the Pupil
Premium and other specific grants
Dedicated Schools Grant
• Ring-fenced grant that consists of 3 notional
blocks:
– Schools
– Early Years
– High Needs
• Funding can be:
– Delegated
(funding directly to schools through the formula)
– De-delegated (funding passed back from schools to be held
centrally)
– Centrally held (funding top sliced from DSG before the formula
is allocated)
Pupil premium 2015/16
• Additional grant passported directly to schools to raise the
attainment of disadvantaged pupils and close the gap between them
and their peers.
Primary
Secondary
Ever 6 FSM
£1,320 (+£20 incr from
2014/15)
£935
Service Family (Ever 4)
£300
£300
Looked after children
(LAC)
£1,900
£1,900
Post Looked after children £1,900
(Post LAC)
£1,900
• Early Years – 53p per hour , £300 per child (New in April 2015)
Education Services Grant
• Un-ringfenced grant paid to local authorities and
academies
• Includes school improvement, therapy/health,
statutory and regulatory services, education welfare,
asset management etc
• Nationally set rates for schools and academies
• Recognises local authority retained responsibilities
for academy pupils (educ welfare, asset mgt, stat/reg
duties)
• Protection for academy budgets
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Education Services Grant
• Per pupil allocations for LA and Academies :
– 2014/15 = £113
– 2015/16 = £87
• PRUs x 3.75, Special x 4.25
• Academies protection set to reduce over time
• LA retained responsibilities - £15 per pupil
Total funding 2014/15 - £18.6m
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Education Services Grant
• DfE recognises:
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Significant limitations with data
Different interpretations of Section 251 guidance
Time lag (budget/spend)
No separation of retained duties from spend on
maintained schools
• Reporting errors
• Arguably the analysis is a means to an end in
justifying a significant grant reduction
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How the funding flow works
School Funding Formula
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Fundamental reform implemented April 2013
Pupil driven budgets – DfE aim to maximise delegation to schools
80% of funding must be allocated via the pupil-led factors
Sets formula for all schools and academies in LA area
14 allowable factors in schools block
Principles established and agreed with Schools Forum
– Protection of small schools through lump sum
– Minimise turbulence in funding
– Cost of protection for changes to individual schools budgets met
through reduction in funding to schools gaining from the changes
– Distribution of overall funds between the primary, secondary and
special phases to remain unchanged
– The total amounts allocated overall to each factor remain broadly in
line with those in the current formula
• Extensive modelling and consultations with schools
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School funding
• Funding is allocated and published to each
school by a “budget share”.
• Funding to individual schools is calculated
based on allowable factors set by the DfE
• Values and factors used locally determined and
agreed with Schools Forum
• The schools budget share allocation is available
by 28 February.
• Protection for reductions in pupil level funding
through Minimum Funding Guarantee (MFG)
Budget share factors
Compulsory
1.
Age Weighted Pupil Unit
2.
Deprivation/IDACI
Optional pupil-led factors
3. Prior attainment
4. Looked after children
5. English as an additional language
6. Pupil mobility
Optional other
7. Sparsity
8. Lump sum
9. Split site costs.
10. Rates
11. Private Finance initiative (PFI)
12. London fringe
13. Post 16
14. Exceptional premises factor
Hampshire
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n/a
n/a
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IOW
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n/a
n/a
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Budget share allocations
Hampshire schools and academies
School Type
Number of
Schools
(maintained)
Number of
schools
(academy)
Nursery
3
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169
£1,643
Primary
415
12
98,943
£377,537
Secondary
40
30
65,296
£311,384
Special
23
3
2,484 (places)
£32,201
6
1
524
£8,150
487
46
167,416
£730,915
Education centres
Total
Number of
Pupils (Oct
13)
Total Budget
Shares
2014/15
£m
De-delegation options 2014/15
Allocated through the formula but de-delegated back for
maintained mainstream schools :
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Contingencies
behaviour support services
Support to under performing ethnic groups
free school meals eligibility
insurance
museum and library services
licences and subscriptions
staff costs (trade union, public duties).
Hampshire
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IOW
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Centrally held 2014/15
• Central services (no increase in expenditure from 2013/14)
– Admissions
– Servicing of schools forum
• Centrally retained (no increase in expenditure from 2013/14 and
no new commitments)
– CERA
– Combined budgets
– Termination of employment costs
– Prudential borrowing
– SEN transport
• Centrally retained (retained before allocating formula)
– Growth fund (Infant Class Size, growing schools, falling rolls)
– Fees for independent schools for non-SEN pupils
Current policies
• Limited local discretion through agreed
policies:
• Growth fund
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Growing schools
Infant class size
Falling rolls
Temporary classrooms
• Contingency
• 3% Cap on statemented spend
• Split site
High Needs top-up funding
• Paid to schools and academies by LA
• Statement top-up funding in excess of £6,000
(12.7 hour of LSA support)
• 3% Cap on statemented spend
• Hampshire pupils in Other local authority
schools – paid at OLA rate
• OLA pupils in Hampshire schools – school
invoice OLA
Special schools, Resourced
provisions, Education centres
• Place plus model introduced April 2013
• Agreed Place numbers (APN) at the beginning of the year –
fixed element £10,000 (national rate)
• Top-up funding set locally
• Top-up funding follows the pupil in real time
• Top-up funding based on need and characteristics of the pupil
• Allocations made termly
• Academies paid monthly for cash flow
• OLA top up SLA
SEN funding matrix
Pre-16 and Alternative Provision
Mainstream Settings
Element 1:
Core Education
Funding
Mainstream per pupil
funding (AWPU)
Element 2:
Additional
Support
Funding
Contribution of £6,000
from the notional SEN
budget to fund
additional support
required by a pupil with
high needs
Element 3:
Top up
Funding
Specialist Settings
Base funding of
£10,000 for SEN and
£8,000 for AP
placements which is
roughly equivalent to
the level up to which a
mainstream provider
would have contributed
to the additional
support provision of a
high needs pupil. Base
funding is provided on
the basis of planned
places
Post - 16 SEN and LDD
All Settings
Mainstream per pupil funding
(as calculated by the national
16-19 funding system)
Contribution of £6,000 from
the notional SEN budget to
fund additional support
required by a student with
high needs
“Top up” funding from the commissioner to meet the needs of each pupil or student
placed in the institution
Early Years funding
Providers funded via the Early years Single Funding formula (EYSFF)
3 and 4 year olds
Hampshire
IOW
• Base rate
£3.81
£3.60
• Additional supplements :
– Flexibility
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– Quality
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– Deprivation
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Additional payments for - LAC
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- SEN
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2 year olds
– Funding from Department for Education - £5.07 per hour
– No additional supplements – already includes an element of deprivation
– Additional payments for SEN
– Rate paid to provider
£5.07
£4.90
Schools Forum responsibilities
• Membership
– Representatives from maintained and academy
schools together make up at least two thirds of the
membership
– School Members will be headteachers (or their
representative) and governors – local authority
discretion on proportionality (50/50)
– Representatives from early years, 16-19 and the
diocese
– Local authority can appoint if no election or tie
(schools, academies, 16-19)
Schools Forum responsibilities
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Governance
– National guidance requires:
• 4 meetings per annum – minimum
• Must be public meetings
• Speaking rights limited
• Quoracy (Two fifths of total membership, allowing for
vacancies)
– Local terms of reference provides:
• Terms of office
• Process for electing chair (cannot be elected member or
council officer)
DfE role
– Approval of MFG exclusions
– Adjudication where Schools Forum does not agree LA proposals
Schools Forum responsibilities
• Generally a consultative role but some
decision making powers:
Function
Role of Forum
Formula change
Must be consulted
Contracts
Gives a view
High Needs and Early Years financial
matters
Gives a view
De-delegation
Primary and secondary maintained school
members will decide for their phase
Central spend
Decides
Changes to the Scheme of Financial
Management
Approves
Schools delegated responsibilities
• Headteachers and governors have maximum
freedom to determine spending priorities.
• Schools are responsible for producing their
own budgets within the total resources
available and monitor the income and
expenditure against those budgets.
• The budget share should not be seen as
dictating the amounts that schools can spend
on individual headings except for rates/rents.
Schools financial controls
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Controls apply only to maintained schools
Scheme for Financing Schools
– DfE statutory guidance states what the scheme must, should or
may include
– financial relationship between the local authority and maintained
schools
– Agreed at schools forum following consultation with all schools
•
Internal audit
– Part of Corporate Resources –provide quality internal services to
schools
– Most school reviews are risk assessed as low
– Mainly focus on thematic or cross-cutting review – outcomes
communicated
– Any school assessed other than low risk will have an ad-hoc visit
Schools financial controls (cont)
• Schools financial value standard (SFVS)
– Mandatory self evaluation questionnaire driven by DfE
– Governors have formal responsibility for financial mgmt
of their school
– 23 annual questions governors must discuss with
headteachers and senior staff
– Completed and submitted to the local authority by 31
March each year
School expenditure 2013/14
EXPENDITURE
£m
%
Teaching Staff
343,603
49.4
Non Teaching Staff
172,982
24.9
Supplies & Services
90,629
13.0
Premises
52,003
7.5
Support Services
32,157
4.6
Transport
2,225
0.3
Third Party Payments
2,182
0.3
Total
695,781
100
Financial challenges
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National funding formula.
Academies and free schools
DSG flat cash / inflationary pressures
Changes in demographics
– Impact of falling number on roll
– Growth in primary pupil numbers
• Cuts to local authority funding
• Early Years – increasing take-up of 2 year old
entitlement
• High Needs – increased statements, INMSS
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Acronyms
ABG – Area Based Grant
AP – Alternative Provision
AWPU – Age Weighted Pupil Unit
DFC – Devolved Formula Capital
DfE – Department for Education
DSG – Dedicated Schools Grant
EAL – English as an Additional Language
EFA – Education Funding Agency
EIG – Early Intervention Grant
ESG – Education Services Grant
EYSFF – Early Years Single Funding Formula
EMTAS - Ethnic Minority and Traveller Achievement Service
FSM – Free School Meals
HCC – Hampshire County Council
IDACI – Income Deprivation Affecting Children Index
INMSS – Independent, Non-Maintained Special Schools
LA – Local Authority
LAC – Looked After Children
LSA – Learning Support Assistant
MFG – Minimum Funding Guarantee
PRU – Pupil Referral Unit (Education Centre)
SEN – Special Educational Needs