3 March 2010 7:00pm – EDC10 March 2010 7:00pm – Castledyke School

Becky McIntyre – Head of Resources

Schools Budget Briefing 2010

Session Overview

• Introduction• Current Funding position 2009-10• Next Year’s Funding position 2010-11• Future Funding• National Agenda and Policies

Introduction

• What do you need to know?

• What do you want to know?

• Major concerns

• Sharing good ideas

Current Position 2009-10

• Schools budget based on Dedicated Schools Grant of £3960.86 per pupil.

• Total of Individual Schools Budgets is £91.6m.

• Funded by DSG £79m, SSG £5.1m, SDG £6.5m, LSC 6th form £1m

• Average per pupil funding to schools £3,234• 3&4 year old funding PVI £1.9m• Central School Budget £12.2m

Current Position

• School Balances as at 31 March 2009: • ISB £2.2m (surplus)

Central £0.2m (deficit)• Excess Balances (5% secondary and 8%

primary) – 3 secondary; 16 primary• Forecast School Balances as at 31 March

2010: ISB £1.6m (surplus)Central £0.2m (deficit)

Current Position2009-10 Devolved Formula Capital Grant• Schools allocated 40% of 2010-11 share of funding (to spend early)

• Expenditure must meet the definition of Capital Expenditure and Audit have now agreed to remove the DeMinimus rule on expenditure.

Primary Secondary Special/PRU

Modernised per school £18,500 £18,500 £18,500

Modernised per pupil £63 £94.50 £189.00

Unmodernised per school £9,250 £9,250 £9,250

Un modernised per pupil £31.50 £47.75 £94.50

Current Position

Financial Management Standard in Schools• All schools are legally required to meet the standard by 31

March 2010• FMSiS is a mandatory requirement to provide assurance to

the LA, DCSF, HM Treasury and the National Audit Office that schools have adequate arrangements in place to manage their resources effectively.

Building Schools for the Future• Revenue implications – schools to sign up to on-going

Facilities Management, Grounds Maintenance, ICT Managed Service and Planned and Programmed R&M and Asset renewal – over 25 years.

2010-11 Funding•Final year of 2008-11 funding period. Pre-Budget Report 2009 – 2010-11 funding levels protected for Schools budgets – DSG per pupil £4,127.18 - 4.2% increase per pupil.•Total ISB £94.6mIncreases to North Lincolnshire’s Funding Formula Elements:

Element % Increase

AWPU 3.6%

Blocks 6%

Class Size 2.5%

Other 2.1%

SEN pupils 3.8%

Special School Core 6.5%

2010-11 Funding

Central Schools Budget (Draft)

SEN related £5.99m

Behaviour related £3.27m

School Meals (special) £0.07m

Central Admin £0.66m

School Contingency £1.59m

Early Years Single Funding Formula

• Early Years Single Funding Formula – legal requirement from April 2011 – ministerial delay

• Funding the Free Early Years Provision for 3 & 4 year olds• Applies to all Private, Voluntary and Maintained School Nursery

Classes• Replaces current funding streams• Aims to improve fairness and transparency in the way funding is

distributed• North Lincolnshire approved as a Pilot Authority• Consultation now closed, final proposals to next Schools Forum for

approval. Formula to start from September 2010 to align to increase to 15 hours.

Early Years Single Funding Formula

Key Points:• Only eligible children will be funded through the

EYSFF (3 and 4 year olds up to 15 hours).• Rising 5’s (those 4 as at 31st August, will be funded

through the main school funding formula and can be full time.

• Transition for 1 year (1 term as old funding streams and 2 terms with protection to 75% of previous funding)

• Formula will be reviewed as we go along to ensure fit for purpose.

Horizons Funding

• Governments Extended Services Disadvantaged Subsidy roll out for all children who are eligible in 2010-11.

• Allocation methodology to be agreed at next Schools Forum – total available £0.5m

• To enable all children to access extended services activities where cost is a barrier.

Other Grants and Funding

• One to One Tuition Programme rolled out - £0.8m grant available

• Harnessing Technology Grant – £0.8m in total 25% held centrally and 75% to schools £0.6m

Other Information

• SLA’s – 2010-11 charges should have been notified

• As part of the Council’s commitment to the reduction of carbon emissions, for schools accessing electricity through the Corporate Contract have had Smart meters installed. This will enable centralised billing for schools and eventually schools will be able to monitor uses.

• Capital Programme 2009-14

Future Funding 2011-14• Public Sector Funding cuts expected, some protection for schools, health and police. Pre Budget Report Dec 2009; real terms increases of 0.7% for frontline schools could be made available.

• Subject to Review of Dedicated Schools Grant allocation formula (original consultation due Jan 2010, now likely this month)

• Aim: A single transparent formula to distribute funding in line with relative need. To recognise different costs of education particular groups of pupils and providing education in different areas.

• Will also consider all other funding streams to schools eg Standards Fund grants (may combine and remove ring fencing).

Future Funding 2011-14

Local Funding Formula• Currently under review via working

group of the Schools Forum. Estimated timescales – ready for consultation end summer term beginning autumn term for approval by December 2010.

• Outcome of review : To ensure similar schools receive similar funding

Future Funding 2011-14Key principles:• Simple and transparent• Increase percentage of funding allocated via AWPU• Block sums – “needs” reflected in values• Deprivation factors – Government guidelines 10% of funding

attributed to deprivation type factors. Formula for deprivation factors reflects actual need, (pockets of deprivation), not averages. Consider which data – Index of Multiple deprivation/ Tax Credit data/Free School Meals.

• Ensure data used in formula’s is accurate, easy to gather, (available), easy to update, relevant and timely.

• Provide Stability• Avoid turbulence

National Agenda

• Efficiencies in Schools (Value for Money)• Apprenticeships, Skills, Children & Learning

Act 2009• Post 16 Funding from LSC to LA• Children’s Trust• National Strategies• New Ofsted Framework• Support Staff – National Terms & Conditions• Climate Change Levy

Efficiencies in SchoolsAudit Commission report ‘Valuable Lessons – Improving Economy and

Efficiency in Schools’ July 2009Summary• Education expenditure increased by 2/3rds in 10 years, school results

improved but not all targets met.• Schools have weak incentives to be economical and efficient – focus

has been on effectiveness, accountability to spending is weak, focus on processes rather than achievement of economy and efficiency, stronger challenge from governors required.

• Schools could save over £400m through better procurement, scope for more competitive procurement, scope for more use of professional buying organisations and more support from LA’s.

• Workforce deployment is the most important decision in schools – economy and efficiency, schools need to ensure number of staff is affordable and the mix offers good value for money.

• Many schools with excessive balances

Efficiency in Schools

Use of national

benchmarking

Save money without adverse affect on children’s education

Improve planning to include costs of workforce and link

financial and performance data

Collaborate with other schools;

share staff, procurement

Federation

Efficiency in Schools

Definition Example

Economy Minimising the costs of resources used for a good, service or activity

Are School suppliers purchased at the best available price?

Efficiency The relationship between outputs and the resources used to produce them

Does the timetable make the best use of teachers?

Effectiveness The extent to which objectives have been achieved.

To what extent has the deployment of teaching assistants raised levels of attainment and pupil well-being?

Children’s Trusts

Apprenticeships, Skills, Children and Learning Act 2009:• School Governing bodies now included as a ‘relevant partner’ through the Children’s Trust co-operation arrangements.• Legislation amended to enable individual school governing bodies to use their budget shares to provide staff, goods, services, accommodation and other resources and make financial contributions to a fund established by the LA, or by any of the relevant partners, with a view to improving the well-being of children and relevant young persons in that area.

National Strategies

White Paper: ‘Your child, your schools, our future: building a 21st century schools system’.

Funding relating to the National Strategies and other DCSF – funded school improvement services will from 2011-12, be devolved to schools; and schools will be expected to purchase support to suit their needs (linked to DSG review and awaits next spending review)

Support Staff Pay & Conditions

ASCL Act 2009 – set up Schools Support Staff Negotiating Body:

• Common core contract and conditions of service including a method of calculating pay

• National role profiles for core role and a national pay framework

• Assimilate school support staff to the pay framework

• Career progression, professional development links

Climate Change Levy• From 2010 local authorities that meet the criteria must participate in the

Government’s Carbon Reduction Commitment Scheme.• Organisations will purchase allowances for every tonne of CO2 equivalent. For

local authorities this includes energy consumed within its operation buildings including schools (maintained, VA, VC and academies).

• The council is currently calculating our current level of emissions to work out how many allowances to purchase. Schools have been asked to ensure that meter reading is up to date and available to be collated. Under NI185, schools have a duty to provide energy data.

• The revenue which is generated from the sale of allowances will be recycled back to participants using a system of bonuses and penalties.

• The bonuses and penalties will be determined based on an organisation’s position in league tables based on energy efficiency performance measures. Schools emissions are included in the total for the local authority. League tables include organisations such as Tesco and B&Q.

• The DSCF are proposing changes to the school finance regulations in order for penalties that are attributable to schools, can be charged to the Schools Budget. LA’s will be encouraged to ensure any bonuses that the schools contributed towards is added to the schools budget.