To note the Directed revisions to the Scheme for Financing Schools and approve the LA proposed revisions to the Scheme for Financing Schools.

The Forum considered the report which clarified the directed revisions to the Scheme for Financing Schools and were asked to approve the Local Authority (LA) proposed revisions to the Scheme for Financing Schools.

The Department for Education (DfE) directed revisions to the scheme are not subject to consultation with Schools Governing bodies or head teachers, however they do require Schools Forum approval.

The DfE are considering the following two revisions:

Section 2.9 – Register of business interest:  The directed revision requires the additional of; “Details of any other educational position is that they govern, any relationship between school staff and members of the governing body” and “The governing body should keep the register up to date and publish the register on a publicly accessible website”.

Section 3.6 – Borrowing by schools: The directed revision requires the addition of: “The Secretary of State’s general position is that schools will only be granted permission for borrowing in exceptional circumstances” and “Schools are permitted to use any scheme that the Secretary of State has said is available to schools without specific approval (i.e. Salix scheme)”.

The Local Authority (LA) consulted between the 22 June and 17 July 2015 on the proposed changes.  Schools received a letter dated 19 June and were advised that the consultation was available via the Schools learning portal.  16 schools responded out of 87 schools, which is a low response.  The breakdown is as follows: 12 lower schools, 3 middle schools and 1 upper school.  14 schools disagreed with the proposals to the required budget submission date change.

The LA proposed amendments to the following sections:

Section 2.3 – Submission of budget plans – changing the deadline for budget submission from 31 May to 1 May.

Section 2.10 – Purchasing, Tendering and Contracting Requirements add: “for contracts over £60,000 schools should seek LA’s Procurement personnel countersignature”.

Section 4.2 – Control and Surplus Balances – reference to uncommitted balances add: “The LA will monitor schools that have build up significant uncommitted balances, and challenge schools seeking reasons for holding these balances”.

Section 4.9 – Licensed Deficit – amend the rate of interest charged: Form “7 day London Interbank Bid Rate” to “Bank of England Base Rate”

The Forum noted that the date when the LA has been required to issue the Schools budgets has been brought forward as follows:

Prior to 2012/13 – no later than 31 March

2012/13 – no later than 15 March

2013/14 – no later than 15 March

2014/15 – no later than 27 February

The LA continues to issue budgets early when possible.

During this time the date of submission has remained as 31 May for submission of an approved budget.  This is now being brought forward to the 1 May.

The Forum expressed concerns that this might cause difficulties for some schools.  The general concensus was that if the change was to be made better to get it done now.  It was noted that 8 months notice was being given to the Schools so that there is time for adjustments to their meetings to be arranged.

The Forum next noted that the Council had taken the opportunity to align the Council’s Scheme with the DfE’s statutory guidance for local authorities.  There were seven main changes as detailed in paragraph 11 of the report.

The Forum noted that attached at Appendix A to the report was the track changed version of the Asset Loan Scheme.  The changes would enhance the assessment criteria for asset loans and add clarity on the affordability of such loans.  The Forum raised a query to paragraph 26 which references credit rating as detailed in paragraph 11.  Paragraph 11 does not reference credit ratings.  Officers have agreed to get clarification and amend paragraph 26 accordingly.

RESOLVED

1.         That the amendments to the Central Bedfordshire’s Scheme for Financing Schools in line with the Department for Education (DfE) directed Revisions be adopted.

2.         That the Local Authority (LA) proposed amendments to Central Bedfordshire’s Scheme for Financing Schools be approved.

3.         That the Scheme has been amended numerically to align with the Department for Education’s statutory guidance for LA’s be noted.

4.         That the LA proposed amendments to Central Bedfordshire’s Asset Loan Scheme be approved, subject to paragraph 26 being clarified.

(The maintained schools only could vote on these items)