Transcript Strong and Prosperous Communities

www.coventry.gov.uk
Schools Forum
27 February 2014
www.coventry.gov.uk
School Support Services
Securing the Future
Proposals for September 2014
AIM
To secure the long term provision and
development of the in-scope services, which are
important to schools, and in line with Council
wishes to support and improve local education
for all of Coventry’s children and young people.
www.coventry.gov.uk
The Proposal
• That the Services variously known as the Enrichment
Services or ELS School Support services or Traded
Services be transferred to form a new entity external
to the Local Authority.
• The recommended form of this new entity is……. A
charitable (i.e. not for profit) company Limited by
Guarantee with governance by representatives of all
stakeholders, schools, staff, LA and the wider
community
www.coventry.gov.uk
The Services To be Included
• Performing Arts Service
• Outdoor Education Service
• Governor Support Service
• Schools’ Library and Resources Service
• A newly constituted Work Related Learning / Education
Business Partnership Centres Service
www.coventry.gov.uk
School Survey Results
• “The services maintain stable customer bases and a reputation
for delivering high quality services.”
• “Schools express continued need for and future intention to buy
the services. 44% of schools surveyed anticipate an increase in
their use if afforded greater say in the operation of the services.”
• “Competing providers do not hold a significant share of the
Coventry market. Others are likely to attempt to enter the market”
• “The services’ position against potential competitors is strong;
customer relationships, tradition, high quality, value for money,
reliability.”
www.coventry.gov.uk
Ethos
• New organisation would retain the public sector ethos
–
–
–
–
Not for profit
For the benefit first and foremost of the children and young
people of Coventry
Transparency
Accountability
www.coventry.gov.uk
Why
• To enable the services to
– Be more responsive to service users / agile /
– Invest in the business
– Reduce running costs by no longer being part of a large
infrastructure
– Improve operational efficiency / focus
– Grow
– Attract and retain key staff / expertise
– Be eligible to apply for new sources of funding
www.coventry.gov.uk
Mutual Ventures
Consultancy- Feasibility Study
• Desirability - is there a base of customers who need and
want to buy these services? YES
• Viability - is the proposition economically viable and
sustainable? YES
• Feasibility - can it be implemented, what are the risks
and can these be managed? YES
Ref: Executive Summary of MV Report
www.coventry.gov.uk
The Risks
• Pension liabilities
• Redundancy liabilities
• Working capital
• Start-up costs
• ‘Stranded’ costs
• Plas Dol y Moch
We would like to test your response / take your advice about
some radical proposals for the future
www.coventry.gov.uk
A PARTNERSHIP APPROACH
• Three major stakeholders working together :– Local Authority
– Social Enterprise
– Schools
• To invest in the future of the School Support
Services, each stakeholder making their
respective contribution to the future success of
the new organisation.
• Main areas: Governance & Financial support
www.coventry.gov.uk
A Two-Tier Structure
• The new organisation would have “Members” and a Board of
Directors or Trustees. The suggested membership of the company
includes service staff, schools/academies and other relevant
stakeholders.
• Unpaid Directors/Trustees would have oversight of the organisation
and an employed management team would be responsible for the
day to day running of the company. These individuals would first be
selected by interested parties (e.g. the Members) according to their
skill and experience. The intention is to ensure staff and school
representation at Board level.
• Further trustees/directors would be appointed by the board
according to skills and experience, allowing the PSM to benefit from
(for example) the commercial expertise and experience of NonExecutive Directors.
www.coventry.gov.uk
What Part Can Schools Play?
• investment in the new organisation, using balances/reserves,
e.g……
– Annual subscription
– Shares
– One off investment
• To continue and extend our existing partnership by participating
in the future as Members of the new Company, with power to
elect representatives to the Board, and have strategic influence.
• Anticipation of a ‘dividend’ , e.g. …….
– ‘Discount’ for members
– Cost control (any surpluses used to offset cost inflation)
– Better services (any surpluses reinvested to provide better
resources / new facilities or services)
www.coventry.gov.uk
The Aim
To secure the long term provision and
development of the in-scope services, which are
important to schools and in line with Council
wishes to support and improve local education for
all of Coventry’s children and young people.
www.coventry.gov.uk
Education Capital Programme
2014/15 to 2018/19
14
www.coventry.gov.uk
Capital Programme 2014/15 to 2018/19: Context
• Coventry main priority since 2008 has been the creation of additional
primary places;
• Since 2008 some 915 additional reception places have been created;
• Primary source of funding has been Basic Need and Capital Maintenance
Grant but supported with S106 and school contributions;
• Basic Need allocation of £6.25 million in 2014-15 but Government has
allocated nil funding in both 2015-16 and 2016-17;
• Currently being challenged but if unsuccessful will have significant
implications for the capital programme over the next 5 years;
• Capital maintenance funding of £3.134m has been allocated for 2014-15
and is forecast to reduce over coming years as a combination of the
increasing number of academies and national property surveys;
• Devolved Formula Capital (DFC) has again been made available to
schools in 2014-15 but levels continue to fall and there remains uncertainty
about future allocations.
www.coventry.gov.uk
Capital Priorities 2014-15 onwards
Basic Need
• Increasing Primary Places 2014 & 2015
• Increasing Secondary places
• Increasing SEN places
Condition
• Priority Schools Building Programme
• Replacement School Programme
• Planned Condition Fund
• Emergency Condition Fund
Policy Priorities
• Broad Spectrum Strategy
Early Years
• Two Year Old Provision
www.coventry.gov.uk
Coventry City Council : Education
Capital Allocations 2008/09 to date
Year
Basic Need
Condition
/Maintenance or
Modernisation
Primary
Capital
Programme
Safety Net Basic
Need
Targeted
Basic Need
£
£
£
£
£
2008/09
5,776,264
2,967,513
2009/10
5,776,264
2,487,969
4,523,698
2010/11
5,776,264
2,487,970
6,901,698
2011/12
6,507,521
2012/13
Other
Total
£
8,743,777
12,787,931
7,427,000
22,592,932
4,556,528
3,431,000
14,495,049
5,455,658
3,710,436
4,270,165
13,436,259
2013/14
6,250,288
3,309,958
2014/15
6,250,288
3,134,182
2015/16
0
TBA
0
2016/17
0
TBA
0
9,221,786
18,782,032
755,762
10,140,232
0
Total
41,792,547
22,654,556
11,425,396
15,128,165
9,221,786
755,762
100,978,212
www.coventry.gov.uk
Impact on Pupil Numbers at
School
www.coventry.gov.uk
Key Stage 1 Meal
announcements
19
www.coventry.gov.uk
Update
•
•
•
•
DFE Letter – funding arrangements, and changes to legislation (legal
duty on schools to provide)
Payment directly to schools - £2.30 per take-up by newly eligible
infants, measured on school census from next year (Oct? Jan?)
Additional funding available for small schools – awaiting detail and
criteria on this
Limited capital resource available: £900K, and little ability to top up
from other funding sources
–
–
•
•
currently working through criteria for expenditure, but
likely cover focus on kitchens only – NOT dining rooms
In some cases it is likely that schools will need to consider structure of
day to accommodate this offer.
Conversations underway in terms of £2.30 – should this be all paid to
catering provider with a view to increasing quality – currently £2.00 in
Coventry
www.coventry.gov.uk
General Update and Report
back
www.coventry.gov.uk
Since last meeting
• APT submitted to EFA
• Budget shares available to mainstream schools
• January 2014 census
– Updates 13/14 DSG (Early Years)
– Updates 14/15 DSG (Early Years)
• Further representation to EFA and DfE in relation to
Domestic Violence and Safeguarding
• Applied for an exception for Early Years Capital –
agenda item
• Not yet received High Needs Settlement
• Detail of Licenses Topslice
22
www.coventry.gov.uk
DSG Settlement
Movement
since January
DSG 2013/14 @ Budget setting
Early Years Block
Schools Block
High Needs
Other
£000
11,470
214,067
28,216
4,690
258,444
£000
Adjustment
Estimated Adjustment (Eys)
27
263
263
DSG 2013/14 @ February 14
258,734
263
Pupil No. Increase
Early Years Block (provisional)
Schools Block (actual)
High Needs
188
2,966
0
188
0
0
Budget Adjustments
Early Years - 2 year old funding
Early Years - removal of transitional
CRC - National Topslice
Post 16 Adjustments
1,982
(198)
(413)
1,039
0
0
0
0
264,298
451
DSG 2014/15 as @ February 14
This means we
have an additional
on-going £451K.
Plus £263K one-off
resource
23
www.coventry.gov.uk
Pupil Numbers
• Early Years Block – January 14 census, 3,346.4
eligible FTE pupils (increase of 126.5)
• Schools Block – October 13 census, 44,643 eligible
pupils (increase of 610 pupils)
• High Needs Block – no growth, place plus
methodology, places submitted which will inform
place elements, balancing figure is top up
• Early Years is nearly finalised, High Needs finalised
later in year.
24
www.coventry.gov.uk
Domestic Violence Information
Management and Safeguarding
• Further representation to EFA/DFE has not changed
position, reasons cited are:
– Ministers are committed to moving towards a National
Funding Formula and to delegating as much schools block
funding as possible to schools for them to decide how to
spend
– new commitments which would have involved an on-going
commitment against the schools budget, and so the request
was turned down
– nothing to stop schools individually from contributing to
services they value
• 2 options in way forward…
25
www.coventry.gov.uk
Domestic Violence Information
Management and Safeguarding
• Offer the services as a buyback to all schools
– Significant briefing of all schools
– Risk that some schools will not buy in
• Schools agree to use funding devolved to them for
collectively for System Leadership
– Funding is not delegated, so collective decision
– In line with priorities for networks ‘Education Safeguarding’
• Please can Schools Forum indicate the preferred
option
26
www.coventry.gov.uk
High Needs Settlement
• Still not received…
• EFA have indicated it will be with us next week
• PPR – includes our best understanding of the
position
• No decisions that need to be made by Schools
Forum other than already shared
27
www.coventry.gov.uk
Licences Topslice
• Now had information on licenses – too late to make
amendments to de-delegation and budgets
• Government purchase a number of licenses on
behalf of schools – our cost for 14/15 is £139K
– Increase of £52K on last year
– Increased charges for CPA and SPML, additional licenses
for NLA, ERA, MPLC, PSVL
• 14/15 de-delegated budget of £63K and charges to
academies of £26K
• Charges to de-delegated budget of £22K – saving of
£41K
• Overall gap of £11K
28
www.coventry.gov.uk
Licences Topslice
• Propose to fund the additional £52K from
– De-delegated underspend £41K
– Additional PPR requirement of £11K
• Do maintained schools group agree to this proposal?
• Voting: School members only
29
www.coventry.gov.uk
Early Years and High Needs
Budget Setting
30
www.coventry.gov.uk
Early Years 2 Year old Funding
• Briefed on the 2 year old funding at last meeting, in
summary
–
–
–
–
13/14 and 14/15 based on places
Received more funding than required
Participation levels are approximately 75%
Underspends are 1-off as funding based on participation
from 15/16
• Hold within early years block and continue to use to
support implementation of the offer
• Review position for 2015/16 budget setting
• Received capital funding of approximately £900K
• Further work has identified a further capital need, if
we are to meet our targets
31
www.coventry.gov.uk
Early Years 2 Year old Funding – Refer
to Report
• We have put together a proposal to fund £623K of
capital works to provide 2 year old places from a
revenue contribution (early years allocation and
underspend)
• There is a central spend line for Early Years (Early
Years block) which only requires approval from
Schools Forum…..BUT
• Only place to make contribution to capital is Capital
Expenditure funded by revenue (CERA) which is in
schools block
• Therefore had to apply to DfE for a disapplication
32
www.coventry.gov.uk
Early Years 2 Year old Funding –
Decision
• Already put the application in due to timings, but
subject to Schools Forum approval
• Do the Schools Forum approve the application to
the DfE for a new commitment against Capital
Expenditure funded by revenue (CERA)
– This is 1 –off and is from the 2 year old provision allocation
and underspend, which we have previously agreed should
be held within the early year block
• Voting: All Members
33
www.coventry.gov.uk
Early Years Single Funding Formula
• Delivers funding for all providers for 3 and 4 year old
provision
• Budget for 13/14 was set based on previous year
actuals – this was due to fluctuations in the PVI
settings
• Agreed not to hold a contingency budget for growth
as DSG upflated 7/12s for early years numbers
January 2014
• Revised the process for 14/15 –
– Maintained based on January 14 census
– PVI based on previous year actuals
34
www.coventry.gov.uk
Early Years Single Funding Formula
• Additional Funding requirement of £526K for 14/15 –
set against DSG pupil number increase of £451K
• As agreed to balance within the block will use £75K
of 2 year old funding for additional pupil number
requirement
• Inflation and efficiencies applied across the block in a
similar way to schools block
• Results in a marginal rate increase for PVI providers
and Hillfields and a decrease for maintained
providers as a result of NNDR adjustment – due to
rounding this may not be evident at provider level
35
www.coventry.gov.uk
High Needs Budget Setting
• This is draft as high needs settlement not yet
received
• In our DSG allocation for 14/15 we receive:
– Pre 16 Funding (all elements) – schools, independent
schools, Alternative provision
– Post 16 Funding (all elements) – schools
– Post 16 Funding (top up only) – Further Education,
independent providers
• Expected additional money as in 14/15 we will fund
top up for further education for full year rather than
8/12s
• High needs settlement adjustments expected for
place movements – submitted return in December
36
www.coventry.gov.uk
Post 16 Transfer: Analysis
• Financial Analysis of the Post 16 transfer to try and
unpack this for Forum members
• Heavily caveated at this stage:
– Top up costs for 13/14 are not finalised
– 14/15 based on current numbers – needs to be updated for
changes
– Awaiting Finalised 14/15 settlement
• Will bring further update to next meeting
• Pre 16 DSG subsidy is historic and to do with the way
places work in special schools
• Need to keep an eye on this position
37
www.coventry.gov.uk
Post 16 Transfer: Analysis
13/14
£000
14/15
£000
Change
£000
Post-16 DSG Transfer
1,722
2,759
1,038
Post 16 High Needs - Schools
1,007
1,775
768
Post 16 High Needs - FE
1,125
1,440
315
75
75
2,206
3,290
(497)
(497)
1,709
2,792
1,083
(12)
33
46
Other Post 16 High Needs
Total Cost of Post 16 High Needs
Subsidy from Pre-16 DSG
Revised Total
Variance
1,083
-
38
www.coventry.gov.uk
SEND - Funding
• Challenging workload and timescales to ensure
delivery of the SEND Reforms
• Majority of additionality required will be funded from
core and SEN Reform grant
• Propose to earmark £55K from DSG
reserves/underspend to contribute towards the cost
of these reforms
• This will be 1-off, but needs to be identified in the
budget setting process in line with DFE requirements
39
www.coventry.gov.uk
High Needs Additional Pre-16 Places
• September 2014 – have some challenges in relation to special
school places
• We were unable to make a case for growth in the high needs
return
• Need to build provision for an additional 26 places
• Costs to be offset against other savings in high needs
• This will be done on a 1 year only basis, whilst further work is
done on the strategy moving forward. This will need to consider:
– Ability to make a case for growth in funding, if not funding is from
existing budgets
– Understanding of how we compare nationally in terms of levels of
special school places
– Costs associated with provision – mainstream and special
40
www.coventry.gov.uk
High Needs: KS3 AP savings
• Later item on the agenda
• Projected savings of £84K – but we need to
understand this in the context of high needs
settlement (adjustments for places)
41
www.coventry.gov.uk
Budget Setting
42
www.coventry.gov.uk
Key issues / Changes
• Pupil Number growth for Early Years is now built in
• 2 year old funding position included
• Draft High needs budget adjustments included –
further work to finalise alongside receipt of settlement
• Additional place issues in special sector – 1 year built
in from reserves
• Some resource for SEND – built in from reserves
• KS3 alternative provision
• Adjustments in relation to licenses topslice
www.coventry.gov.uk
Coventry City Council
DSG PPR - 2014/15 (Feb 14)
1 Additional Forecast Resources
1.1 Adjustment Previous Years DSG
1.2 Increase in Dedicated Schools Grant - Pupil Number
1.3 Increase in Dedicated Schools Grant - Other*
1.4 Removal of Transitional protection
1.5 National Topslice - CRC
1.6 Contribution from Reserves
Total increase in Dedicated Schools Grant
2 Baseline adjustment
2.1 Removal of one off funding (12/13 under spend)
Total Baseline Adjustment
Sub-Total
* Awaiting finalised high needs settlement
Early
High Updated
Years Schools Needs Feb -14
Block Block Block Total
(£000) (£000) (£000) (£000)
(21)
(6)
(451) (2,966)
0
(1,982)
(1,038)
198
413
(225)
(776) (158)
(2,481) (3,329) (1,202)
Diff
with
Jan 14
(£000)
(27)
(3,417)
(3,020)
198
413
(1,159)
(7,012)
0
(451)
0
0
0
(261)
(712)
0
0
(712)
0
290
33
0
290
33
323
323
(2,481) (3,039) (1,169)
(6,689)
44
www.coventry.gov.uk
Coventry City Council
DSG PPR - 2014/15 (Feb 14)
Early
High Updated
Years Schools Needs Feb -14
Block Block Block
Total
(£000) (£000) (£000) (£000)
Diff
with
Jan 14
(£000)
3 Pressures and savings
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
3.14
3.15
3.16
3.17
Adjustments to Base Budget/Technical Adjustments
Pay awards - officers (estimated)
Pay awards - teachers (estimated)
Price and Income Inflation (estimated)
Local Government Superannuation - employer contribution
Teachers Superannuation - employer contribution
Change in Pupil Numbers
NNDR
Former PRG - remove delegation
Catering FSM
Growth Fund
Education & Learning Service Savings
Single Status Backpay
PFI Funding Gap
Efficiencies across centrally retained budgets
Early Years Single Funding Formula
Early Years - 2 Year olds provision
Early Years - 2 Year olds capital contribution
19
37
1
48
187
1,235
331
401
(53)
1,844
44
(106)
(69)
526
1,479
623
49
9
(351)
(318)
17
(65)
56
118
37
114
(80)
262
1,390
369
563
0
1,844
(9)
0
49
9
(457)
(318)
17
(214)
526
1,479
623
0
0
0
0
0
0
0
0
0
0
0
0
0
0
526
(503)
623
45
www.coventry.gov.uk
Coventry City Council
DSG PPR - 2014/15 (Feb 14)
3.18
3.19
3.20
3.21
3.22
3.23
3.24
4
4.1
4.2
4.3
4.4
4.5
Early
High Updated
Years Schools Needs Feb -14
Block Block Block
Total
(£000) (£000) (£000) (£000)
1,038
Post 16 High Needs Adjustments
CRC Budget no longer required
Licenses
High Needs Place Adjustments
Additional Primary High Needs Places
KS3 Alternative Provision
Out of City Places
Budget Proposals
ERP - Alderman's Green (Y3 increased provision)
KS2 pupils with Social and Emotional Needs full year effect
Special Educational Needs & Disability
Living wage (1-off and ongoing)
New Commitments
Total Pressures
5 DSG (Not Earmarked)
5.1 Headroom/Efficiency Savings
6 (Under allocated)/Overallocated
(352)
11
40
258
(84)
(214)
Diff
with
Jan 14
(£000)
1,038
(352)
11
40
258
(84)
(214)
0
0
11
40
258
(84)
(214)
94
101
55
850
0
0
0
55
0
0
1
829
94
101
55
20
2,506
3,871
1,553
7,930
712
(72)
(1,087)
(82)
(1,241)
0
(47)
(255)
302
(0)
(0)
46
www.coventry.gov.uk
Additional Information – Technical
Adjustments
• Contribution from Reserves
–
–
–
–
–
–
£500K General
£335K Living Wage 13/14
£33K Broad Spectrum Formula – transition
£30K KS2 Pupils BESD
£195K 13/14 Early Years underspend
£66K SEND & Licenses
www.coventry.gov.uk
Additional Information – Budget Proposals
• ERP Alderman’s Green
– Increase of 6 places
• Key Stage 2 Pupils with Social & Emotional needs for
up to 12 pupils £101K Budget Requirement, funded
– £71K Budget setting (delayed until 2013/14)
– £30K underspend c/f from 2013/14
• Living Wage
– £335K 2013/14 part year est. cost (contributed from
reserves)
– £515K 2014/15 full year est. cost (budget setting)
• SEND
– Personal budgets, training, website maintenance
www.coventry.gov.uk
Pupil Referral Units – update
on KS3 Provision
49