Budget Briefing Session for
Governing Bodies
Wednesday 26 February 2014 7pm: LDC Scunthorpe
Wednesday 5 March 2014 7pm: Castledyke Primary
Becky McIntyre
Aims and Objectives
Opportunity to ask questions!
• Update on what’s happening Nationally re
Schools and Education Funding
• What that means locally
• Other Finance and Governance issues
School Funding
• From April 2013, Dedicated Schools Grant 3
Block Allocations:
– Schools Block
– Early Years Block
– High Needs Block
• Schools Funding based on nationally
prescribed elements and data
• Following review, some elements updated for
2014
• Plans remain for move to wholly national
formula from 2015.
National Funding Reforms
NEW SPARSITY FACTOR
De-Delegation
What is De-delegation?
• A central budget can be formed from a contribution from
Maintained Schools for certain education services.
Who decides?
• North Lincolnshire Schools Forum – Maintained School
Representatives. The following budgets have been agreed to
be held centrally:
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Ethnic Minority and Traveller Achievement Service
Free School Meals Eligibility Checking Service
Primary Behaviour Support Service
Specialist Teaching Team of the Education Psychology Service
Trade Union Convenors
SEN Funding
• Mainstream settings will be expected to contribute
the first £6,000 of additional educational support for
high needs pupils and students (from their funding
formula shares).
• A key element of the notional SEN budget is based
on ‘proxy’ low cost high incident measure
• Notional SEN is based on 5% of Basic entitlement; 5%
of Deprivation Factor and 100% of Low Cost High
Incident Factor.
• To be used to meet the needs of SEN/AEN pupils –
defined in statement.
• Costs above this will be funded through Top Up
Payment.
Education Services Grant
• Prior to 2013, Academies received an
additional funding stream in respect of
functions that are the LA responsibility for
Maintained Schools – LACSEG.
• LACSEG replaced by Education Services Grant
(ESG), Academies and LA’s receive ESG for
these functions.
• Academies are receiving a transitionally
protected rate (2013 and 2014)
Pupil Premium
Pupil Premium 2014-15
• £1,300 per eligible primary pupil
• £935 per eligible secondary pupil
• £1,900 for Looked After Children (one day or
more) now includes adopted children and
those in special guardianship arrangements
• £300 for Service Children (ever 4)
Must publish
Pupil Premium – Good Practice
• The Pupil Premium: How schools are spending the
funding successfully to maximise achievement –
Ofsted February 2013
• Sutton Trust and Education Endowment Foundation
Toolkit (updated February 2014)
PE Funding
Primary PE Grant 2013-16
Schools >17 pupils £8,000 plus £5 per pupil
Schools<16 pupils £500 per pupil
• Schools should publish the amount of grant received; how it has
been spent (or will be spent) and what impact the school has
seen on pupils’ PE and sport participation and attainment as a
result, to help to ensure that all pupils develop healthy
lifestyles.
£18m nationally available from Sport England (Lottery funded) to
improve outdoor space for PE and sporting activities
http://www.sportengland.org/funding/our-differentfunds/primary-spaces/
Universal Free Meals Funding
• From September 2014 Schools will be required to
offer a free lunch to every primary school child in
reception classes, year 1 and year 2.
• Funding will be £2.30 per meal taken, based on
actual take-up by newly eligible infant pupils which
will be measured in the Schools Census from next
year.
• Transitional funding for small schools, provided
before the next academic year.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/275598/school_admissions_c
ode_1_february_2012.pdf
(received 6 March 2014)
Capital
Devolved Formula Capital
Other allocations
Academies
CTCs
NMSSs
Sixth form colleges
56,448,811
73,223
340,540
3,956,075
LA and VA allocations
LA DFC
108,608,245
VA DFC
29,441,620
Total DFC
198,868,513
Capital
Maintenance
Other allocations
Academies
CTCs
NMSSs
Sixth form colleges
441,223,807
657,570
1,531,550
57,678,535
LA and VA allocations
LA maintenance
553,135,210
VA maintenance
145,773,327
£2m for Sure Start Centres included in LA maintained pot
Total Maintenance
1,200,000,000
Capital
Basic need 2014-17
2014-15
800,000,000
2015-16
1,000,000,000
2016-17
1,050,000,000
Total 2014-17
basic need
2,850,000,000
Capital
Universal infant free school meals capital
Other allocations
Academies
20,856,157
LA and VA allocations
LA UIFSM capital
102,742,203
VA UIFSM capital
26,401,641
Total UIFSM
150,000,000
Good Governance and Financial Management
Governing bodies are the strategic leaders of our schools and
have a vital role to play in making sure every child gets the
best possible education. For maintained schools this is
reflected in the law, which states that the purpose of
maintained school governing bodies is to ‘conduct the school
with a view to promoting high standards of educational
achievement at the school’.
In all types of schools, governing bodies should have a strong
focus on three core strategic functions:
• Ensuring clarity of vision, ethos and strategic direction;
• Holding the headteacher to account for the educational
performance of the school and its pupils; and
• Overseeing the financial performance of the school and
making sure its money is well spent.
Overseeing Financial Performance
Governing bodies are responsible for making sure their
school’s money is well spent. They should do this by
making sure they have at least one governor with specific
skills and experience of financial matters, and by asking
questions such as:
– Are we allocating our resources in line with our strategic
priorities?
– Are we making full use of all our assets and efficient use of all
our financial resources?
– Are other schools buying things cheaper or getting better results
with less spending per pupil?
– How can we get better value for money from our budget?
Financial Decision Making
1. To approve the first formal budget plan each
financial year*
2. To monitor monthly expenditure
3. Miscellaneous financial decisions (e.g. write-offs)
4. To investigate financial irregularities (head
suspected)
5. To investigate irregularities (other suspected)
6. To enter into contracts (above set financial limit)
7. To enter into contracts (below set financial limit)
8. To make payments
Other Key Decisions with Impact on
Resources
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5.
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10.
Pay discretions (the head should not advise on his/her own pay)
Determining dismissal payments / early retirement
Determining staff complement
To draw up a charging and remissions policy for activities (non NC
based) in consultation with the LA*
To establish a performance management policy
To implement the performance management policy
To review annually the performance management policy
Buildings insurance - GB to seek advice from LA, diocese or trustees
where appropriate
Premises Strategy (including budgeting for repairs etc.) and Asset
Management Plans
To ensure provision of free school meals to those pupils meeting criteria
Governance Decisions
1. To set up a Register of Governors’ Business Interests
2. To approve and set up an Expenses scheme
3. To consider whether or not to exercise delegation of
functions to individuals or committees*
4. To regulate the GB’s procedures (where not set out
in law)*
5. To review at least once a year the establishment,
terms of reference and membership of committees,
including selection panels*
Schools Financial Value Standard (SFVS)
• The standard is a mandatory requirement for local authority maintained schools.
Governing bodies of maintained schools or management committees of pupil
referral units (PRUs) have formal responsibility for the financial management of
their schools, and so the standard is primarily aimed at governors or management
committees.
• The standard consists of 23 questions which governing bodies or management
committees should formally discuss annually with the head teacher and senior
staff and submit a signed copy to LA finance department.
Section A: the governing body and school staff
Section B: setting the budget
Section C: value for money
Section D: protecting public money
• Governors or management committees must monitor the progress of these actions
to ensure that all actions are cleared within specified deadlines.
• LAs will use schools’ SFVS returns to inform their programme of financial
assessment and audit should make the governing body, the management
committee and the LA aware of any major discrepancies in judgements
Governing Body Health Check
C:\Users\becky mcintyre\Desktop\Worksheet in
PowerPoint Slide Show - (governing body
value for money health check (Read-Only)).xls
Good Governance
It is good practice for the board of governors to publish
an annual governance statement (as academy trusts
are required to do through the Accounts Direction)
to explain how it has fulfilled its responsibilities –
particularly in relation to its core functions, including:
– the governance arrangements that are in place, including
the remit of any committees;
– the attendance record of individual governors at board and
committee meetings; and
– an assessment of the effectiveness and impact of the
board and any committees with details of any particular
challenges that have arisen.