To provide an update on the use of the School Contingency Budgets for 2012/13 and 2013/14.

The Forum received and considered a report which provided an update on the Schools Specific Contingency Budget spend and carry forward for 2012/13 and the relative spend to date for 2013/14.

The Senior Finance Officer confirmed as at 31 March 2013 the carry forward from the 2012/13 School Contingency was £851,821 which was split as follows:-

·      £778,963 General Contingency

·      £72,858 SEN Contingency

The Forum noted that from 2013/14, the Dedicated Schools Grant would be split into three notional blocks: Early Years, High Needs and Schools.  Each block would hold its own contingency budget.

Early Years Contingency

The budget allocation for 2013/14 is £352,450.  Following the January 2013 census there is an additional £44,200 due to the initial estimated budget being higher than required and the funding returned to the contingency budget.  The balance of the Early Years Contingency for 2013/14 is £396,650 as at 31 May 2013.

High Needs Contingency

The budget allocation for 2013/14 is £348,528, which includes the carry forward from 2012/13 of £72,858.  The funding has been set aside to continue the funding of the extended role of a school such as Outreach and other services.  There has been a payment of £345 for outreach work.  The balance of the High Needs Contingency for 2013/14 is £348,183 as at 31 May 2013.

Schools Contingency

The budget allocation for 2013/14 is £878,963, which includes the carry forward from 2012/13 of £778,963.  There has been a DSG adjustment of £3,320 for an additional pupil.  The balance of the Schools Contingency for 2013/14 is £882,283 as at 31 May 2013.

The Forum noted that the school's contingency budget would assist schools where expenditure has been incurred which would not be funded from the normal budget.  The four areas are as follows:

(i) schools in financial difficulty

(ii) the writing-off of deficits of schools which are discontinued, excluding any associated costs and overheads

(iii) new, amalgamating or closing schools, or

(iv) other expenditure where such circumstances were unforeseen when initially determining the school's budget share.

Age Range change Schools

The Senior Finance Officer informed the Forum that a number of schools had changed their age range and the result was that funding had not been available to these schools as the budgets for 2013/14 had already been allocated and based on the October 12 census. 

There would be a shortfall for a number of schools who had kept Year 5 when it would have normally transferred to a Middle School.  The schools in question had contacted the Local Authority (LA) requesting assistance from the Growth Fund.  The LA contacted the Education Funding Agency (EFA) to confirm that the criteria agreed with School Forum for Growth Funding distribution was in line with requirements and was not available for schools choosing to change age range.

The EFA further confirmed that for 2013/14 the schools would need to apply to the Schools Forum for funds held in School Contingency as a school facing financial difficulty.  In future years the Council would need to apply to the Secretary of State for a variation of the operation of Regulation 13 of the School and Early Years Finance Regulations (pupil numbers). 

The LA cannot make adjustments to their formulae after the funding period has commenced, which is why an adjustment for 2013/14 cannot be made.

The Forum were asked to consider how to assist the schools which have been unable to receive funding following age range changes and the government regulations for 2013/14.  There were two options presented and the Forum were asked to vote on their preferred choice for the following:-

1. fund the schools from School Contingency for the expected pupil numbers in year group five in September 2013 as a school facing financial difficulty; or

2. support the Schools by way of a Licensed Deficit with no additional funding.

The Forum did not agree with giving Schools a Licensed Deficit when it was not of the schools making.

The Forum were advised that should option 1 be selected the carry forward from 2012/13 would be reduced by approximately £298,555, which equated to a per pupil amount of approximately £8.60.

The Forum voted and chose Option 1.

RESOLVED

1. that the Schools Contingency position statement as at March 2013 be noted.

2. that the DSG Contingency spend at 31 May 2013 be noted.

3. that Option 1 be applied to provide support to the schools with age range changes for the funding period 2013/14.