Agenda and minutes

Resolved – That the minutes of the meeting held on 15^th January 2013, be confirmed and signed as a correct record, subject to a correction to the Officer title in Minute 19 (14) to be ‘Head of Commissioning – Economy and Attainment’.

Steve Haley (Head of Finance – Education and Innovation) presented a report on the latest position of the 2012/13 retained Dedicated Schools Grant (DSG) budget.

Mr Haley advised that since the last report to the Schools Forum there had been a further improvement of £0.141m in the retained DSG, giving a total underspend of £1.641m.  Annex A to the report set out detailed information on the changes, which were primarily due to a further underspend in the Education Other Than at School (EOTAS) budget and reduced demand on the Out of Borough Placements budget.  In addition there was a balance of £0.33m brought forward from 2010/11 and 2011/12. 

The Forum’s approval was sought to use part of the underspend within the EOTAS service for a scheme to upgrade teaching facilities, reduce health and safety risks and create a dedicated support hub at the Stratton Education Centre.  There was insufficient time to put the contracts in place by the end of the year, but it was suggested that EOTAS be able to use monies for the project up to the value of their final year end underspend (currently £78k), subject to the Forum Chair approving a fully costed business case.  This proposal was supported by the Forum.

It was noted that at the last meeting it was agreed that £900k of the project underspend be distributed to schools in 2013-14 via the local formula by temporarily increasing the primary basic per pupil entitlement rate (BPPE), and subject to a benchmarking exercise it was intended to recommend similar for 2014-15.  However, the latest information provided by the Department for Education on the balance of funding compared to other Authorities, showed that it might be appropriate to look at other options if looking to ease transition through to a national formula.  It was agreed that these options for should be considered at the meeting in October 2013.

 Resolved – That the Schools Forum:

1)    Notes that based on information available at the end of January 2013, an in-year underspend of approximately £1.641m is projected against the 2012/13 retained DSG budget.

2)    Notes that a total of £0.333m remains available from 2010/11 and 2011/12.

3)   Notes that the total balance of retained funding is available for redistribution is estimated at £1.974m.

4)   Notes that as confirmed at the last Schools Forum meeting £0.900m of the above funding will be distributed to primary settings in their 2013/14 funding allocations, leaving a balance of £1.074m.

5)   Approves in principle that funding up to a value of the final year end underspend on the EOTAS service, estimated at £78k, is allocated in 2013/14 to fund improvement works at the Stratton Education Centre, subject to the Chair of the Schools Forum approving a fully costed business case.

6)   Approves in principle that the balance of funding estimated at £1m be allocated in 2014/15 to meet the requirements of further changes arising from the school funding reform programme, and a report come back to the Forum at the October  ...  view the full minutes text for item 22.

The Forum considered a report from the Head of Finance – Education and Innovation, on the proposed hourly rate to be paid to providers of Free Early Education provision for disadvantaged two year olds from 1^st April 2013, and the wider implications of the funding.

It was noted at the last meeting that free early education would become a statutory entitled for eligible two year olds from 1^st September 2013 (looked after children and those meeting ‘free school meals entitlement’), with the local authority required to secure provision.  The local authority had been allocated £1,425,387 to fund the full cost of the first 20% of pupils (503) places and £559,569 trajectory building funding to begin developing additional capacity.  Current take up was 131 places.  It was anticipated that the level of funding for 2014/15 (for 924 places) would also be above the level of take up.  The local authority had two years to bring up the participation rate, as it was anticipated that places would be funded on actual take up from 2015/16.

Mr Haley advised that the DSG was not ring-fenced and the funding for two year old placements could be used for other purposes.  In addition, it was important not to set rates at a high level in line with the level of funding available, if this could not be sustained in future years. 

In discussion of what level to set rates at, it was noted that the current funding rate was £4.97, which was lower than the national rate of £5.09.  The Forum noted comparisons to other South West area, including information which had been received since the publication of the agenda, giving a regional average hourly rate of £4.99.  It was recommended and agreed that the hourly rate of £4.95 was appropriate to be introduced from 1^st April 2013, with an additional retrospective £0.40 to be paid towards the end of the financial year.  It was felt that this would help providers to establish running costs based on the sustainable rate.

As there are likely to be considerable surpluses from this funding in the next two years, it was suggested that the funding could be used to cover the local authority’s high needs post 16 responsibility, for which there was a projected shortfall in funding, which was the subject of a separate report.

Nick Capstick expressed concern that there was an urgent need to identify potential clients and to publicise places, so that potential service providers were not putting staff and spaces in place which would not be used.  He suggested that some of the funding be used on developing a mechanism to better identify clients and on a project officer to ensure publicity was sufficient. 

Paddy Bradley (Head of Commission – Economy and Attainment) advised that activities were already taking place to improve take up and the local authority held the information of families who were eligible.  Rather than commit additional funding without understanding the issue, he suggested he discuss with Nick  ...  view the full minutes text for item 23.

A report from the Head of Finance – Education and Innovation was tabled at the meeting, to advise Forum members of the new arrangements for funding high needs students aged 16-24 and the enhanced role for Local Authorities in commissioning education provision for such students.  The report set out the potential impact of the new responsibilities and funding arrangements, and further work which was taking place.

The Forum heard that all post 16 funding payable to Local Authorities had now been included in the Dedicated Schools Grant from 2013/14.  This included a ‘place’ plus approach for funding all high needs pupils.  This had previously been funded through an SEN Block Grant, which was a historic figure not associated with need.  Under the national formula Swindon had received £644k funding in 2012/13.  In addition, Academies and Further Education Colleges had been funded directly by the Education Funding Agency (EFA) up to £19k with support above that level funding from the Specialist Placement fund.

The Forum was advised that the funding from 1^st August 2013 was in 3 elements.  Element 1 would be consistent across all types of provision (approximately £4,300).  Element 2, for additional learning costs, would equate to around £6k per learner and be funding by the EFA, other than for out of borough placements.   Element 3, the ‘top up’ for any further needs, would be funded by the Local Authority from its High Needs Block.  The Forum also noted the new responsibilities for the Local Authority to commission places, and monitor places against agreed outcomes.

Mr Haley advised that there was a significant shortfall in the funding available to meet the new responsibilities for 2013/14 of approximately £543k.  Representations had been made to the EFA on the allocation for post 16 funding and concerns that the information used by the EFA was incorrect.  The outcome of these representations was awaited.  It was noted that if the shortfall remained following these negotiations, the shortfall could be covered in the short-term by the additional funding included in the DSG for 2 year old provision.  

Rachel Mattey expressed concern that this was not a sustainable position, and that there were already gaps in the pre-16 provision which could do with the additional funding, rather than it being used to fund post-16 provision.

Steve Haley confirmed that it was important for the EFA to get the calculation correct for funding, in particular ahead of the introduction of a national funding formula.  This was an issue being experienced by a number of Local Authorities.  Officers would report back to the next meeting with an update on the position from the EFA, however use of the funding for 2 year old funding could cover the shortfall in the short term if necessary.   

Steve College suggested that representatives of the Heads Associations should become involved in the F40 group to lobby at a national level for a revised baseline of funding for Swindon.   It might be helpful for schools to provide specific examples which could  ...  view the full minutes text for item 24.

The Forum considered a report by Steve Haley (Head of Finance – Education and Education) updating the Forum on the 2013/14 Dedicated Schools Grant (DSG) settlement, and seeking approval for a number of budget changes.  The Forum were also informed of the Department for Education (Dfe) Consultation ‘Review of 2013-14 School Funding Arrangements’ on which comments were sought by 26^th March 2013.

Mr Haley talked members through the report, commenting on key issues and answering questions on each section.  He highlighted changes since the last meeting in January 2013.  The Forum considered each recommendation in turn and voted on each element of the funding formula and proposals. 

The Forum made decisions in respect on the following matters:

Estimated DSG Funding available in 2013/14 - Mr Haley advised that he had been able to write out to all schools on 12^th and 13^th February 2013 giving their funding allocations in principle.  It was noted that the total value of the DSG had increased from £144.6m reported at the last meeting to £145m.  However, there was a shortfall of £0.543m in the allocation for post 16 high new responsibilities, which had become clearer since the last meeting, and had been discussed as part of the previous agenda item.

School Licenses – Central Items – The Forum noted that as Copyright Licensing Agency and Music Publishers Association licences for schools would now be managed centrally by the DfE, £60k had been identified in the retained budget to meet the costs of paying subscriptions on behalf of all Swindon Schools and Academies.  It was highlighted that this did not include all licences, and therefore schools needed to check arrangements for other licences they required.

Trade Union Release Time – Central Items – As at previous meetings there had not been a consensus view on the centrally funding trade union release time, the proposal before the Forum was for the money to be delegated out to schools and the LA administer any pooling arrangement required. 

The Forum did not support this proposal, and voted to continue with the existing arrangement throughout 2013/14 financial year for the Local Authority to fund Trade Union release time from the retained underspend which would be carried forward at the end of the year, without the need for any school or academy contributions. 

High Needs Funding, Notional SEN Budget –

Steve Haley explained the new school funding arrangements with each LA required to identify elements of funding within their local formula to make up a notional SEN budget, and to publish information on that budget.   Mainstream schools would continue to fund the first £4k of the £10k of costs for all high needs pupils, with the additional £6k coming from the notional SEN budget. 

For 2013/14 it was proposed that the notional SEN budget be made up from 100% of Low prior attainment funding, and 40% of Deprivation Funding.  This would provide sufficient funding in most schools.  However, in 18 settings it had been identified that costs  ...  view the full minutes text for item 25.

The Forum considered a report from the Finance Manager – Education on the outcome of the latest monitoring exercise to measure the effectiveness of school financial planning and forecasting for school revenue balances. 

It was noted that given the uncertainty over school funding which had arisen from the DfE school funding reform programme, the LA would not be exciting any clawbacks of 2012/13 school balances.

Due to workloads associated with the reform programme, it had not been possible for Officers to report in October on schools planned use of balances. 

The end of year position was that 40 schools had been effective in the financial planning.  Only 10 schools would need to provide an explanation to the LA as to the difference in their budgets to estimate, assuming the final balances are in line with the December estimate. One school had moved from a surplus to a deficit forecast position without requesting the Director of Children Services to licence it and would need to provide additional information.  The Forum noted that the forecast level for 31^st March 2013 was expected to be £1.7m higher than the planned position reported in June 2012 when budgets were set.

It was recognised that the process was about supporting schools to be effective in financial planning.  Paddy Bradley (Head of Commissioning – Economy and Innovation) advised that recent Ofsted inspections were looking at governance.  Jackie Smith advised that ASSH had obtained a useful checklist for schools, which she would circulate.

Resolved - That the Schools Forum notes the indicative position regarding projected 31^st March 2013 School Balances and that they are £1.7m higher in total than was assumed when school budgets were set in June 2012.