To note the update on the DSG.

The Forum considered a report which provided an update on the Dedicated Schools Grant (DSG).  From 2013/14, the DSG would be split into three notional blocks: Early Years, High Needs and Schools. 

The School and Early Years Finance (England) Regulations defined the local authority education budgets for the 2013/14 financial year only.  The Regulations provided simplified local formulae, greater delegation to schools and new arrangements for funding pupils with high needs.

The Minimum Funding Guarantee (MFG) was set at negative 1.5% per pupil for 2013/14.

It was noted that the Chief Finance Officer (CFO), annually signed two statements: the Actual deployment (out-turn) and Budgeted Allocation of the DSG, which confirmed it had been fully deployed in support of the School’s Budget in accordance with the condition of the grant and the School Finance Regulations.

Deployment of DSG 2012/13

The final DSG for 2012/13 is £173.915m.  This is based on 37,336 (fte number of pupils January 2012) multiplied by £4,658 (Guaranteed Unit of Funding (GUF)).  The figure was based on 39 schools converting to Academy status as at March 2013 and £524k LACSEG transfer.

The Forum had agreed that unspent DSG reserves from 2011/12 be distributed to schools as follows:-

·        A one-off payment based on degree of incidence of low level needs (£309k)

·        An additional amount per statutory pupil (£442k)

·        Termly headcount of Early Years (£169k)

The sum of £920k had been added to the 2012/13 DSG allocation. 

The Forum noted that the Central Expenditure Limit (CEL) had not been breached during 2012/13.

DSG Budget Allocation 2013/14

The Forum noted that on 19 December 2012, the Department for Education (DfE) announced the Funding settlement for 2013/14.  DSG allocations were included along with illustrative allocations for the Pupil Premium of £900 and Service Premium of £300 per pupil.  The final allocations would be confirmed in the summer 2013 due to the Pupil Premium being based on the January census.

The DfE announced the Education Services Grant, which replaces the LA Block element of LACSEG for Academies and the corresponding LA revenue funding for 2013/14.

The DSG will continue to be based on the ‘spend plus’ methodology for 2013/14 but has been shown in three spending blocks (Early Years, Schools and High Needs), as shown in paragraph 14 of the report.

Growth Fund 2013/14

The Forum noted that the Growth Fund was available for two purposes:-

·        Expenditure to be incurred due to a significant growth in pupil numbers as a result of the local authority’s duty under section 13(1) of the 1996 Act to secure that efficient primary education and secondary education are available to meet the needs of the population of their area, but only where the authority has set criteria for determining the circumstances in which the expenditure can be incurred and the basis for calculating the amount of any such expenditure.

·        Expenditure to be incurred in order to make provision for extra classes in order to comply with the School Admissions (Infant Class Sizes) (England) Regulations 2012 (b).

The Forum nominated two members to sit on the panel who reviewed the funding applications.  Two meetings had been held (i) considered growth fund bids and (ii) considered infant class size funding applications.  The table contained at paragraph 24 of the report detailed the expenditure as at 31 May 2013.

Review of 2013/14 Funding Arrangements

The Review of 2013/14 School Funding Arrangements had been published on 12 February 2013 and views were sought for 26 March 2013 on specific issues.  This was followed by the 2014/15 Funding arrangements being announced on the 4^th June 2013 which will require a further consultation with Schools.  It is proposed the consultation period runs between 4 – 27 September 2013.  It was agreed that the consultation would be carried out when schools were in term.  The Technical Funding Group were being asked to convene for two meetings on 16 and 31 July to consider the funding arrangements to inform  the consultation process. 

RESOLVED

1.            that the Dedicated Schools Grant (DSG) report be noted.

2.            that the Technical Funding Sub Group meet on 16 and 31 July to consider the funding questions.