SCHOOLS FORUM
Meeting date:
From:
3rd December 2013
Helen Hamilton
Finance Manager – Schools & Learning
SCHOOLS DE-DELEGATED CONTINGENCY BUDGET –
BUDGET FORECAST AS AT 31ST OCTOBER 2013
1.0
EXECUTIVE SUMMARY
At its meeting on 21st June 2013, the Schools Forum agreed that a
report detailing the forecast budget position on the de-delegated
contingency budget would be presented at each Forum meeting.
Appended to this report is the forecast 2013/14 budget position on the
contingency budget as at 31st October 2013. A projected underspend
of £263,155 is reported. Any underspend on the budget at the financial
year end will be transferred into the Dedicated Schools Grant
earmarked reserve.
The Schools Forum is asked to note the forecast budget position for
the contingency budget. It should be noted that as this is a dedelegated budget it only relates to maintained schools.
2.0
STRATEGIC PLANNING AND EQUALITY IMPLICATIONS
2.1
2.2
School funding impacts onto all objectives in the Council Plan:

Challenging poverty in all its forms;

Ensuring that the most vulnerable people in our communities
receive the support they need; and

Improving the chances in life of the most disadvantaged in
Cumbria.
It is essential that the arrangements around school funding also
achieve the underpinning aim of the Council plan to ensure that the
Council is as effective and efficient as possible.
3.0
3.1
4.0
RECOMMENDATION
The Schools Forum is asked to note the forecast budget position on
the contingency budget.
BACKGROUND
4.1
The original de-delegated contingency budget for 2013/14 was £1,583,544.
An adjustment was made to this budget in July 2013 in respect of £102,000
that was moved to the Access and Inclusion Team. The Ethnic Minority
Achievement Grant will no longer be received as a separate grant in
2013/14 and rather has been subsumed into the Dedicated Schools Grant.
This grant formerly provided funding for the team to provide support to
schools in respect of ethnic minority pupils. Therefore £102,000 has been
transferred from the contingency budget to the team to enable the team to
support schools in this way in 2013/14. The revised contingency budget
for 2013/14 is therefore £1,481,544.
4.2
The DfE guidance states that the contingency budget can be used for three
purposes:
 Exceptional unforeseen costs which it would be unreasonable to
expect governing bodies to meet
 Schools in financial difficulties
 Additional costs relating to new, reorganised or closing schools
4.3
As the budget is a de-delegated budget, it only relates to maintained
schools.
4.4
The Budget Working Group, at its meeting on 13th November 2013
requested further detail around the approval of expenditure from the
contingencies budget.
4.5
Maintained schools do not make bids to the Local Authority for funding from
the contingencies budget, rather a maintained school would inform the
Local Authority if a matter arises that the school considers is eligible for
funding from the de-delegated contingencies budget. In line with DfE
regulations, the funding matter must relate to the three bulleted
circumstances detailed in paragraph 4.2.
The Schools and Learning
Finance Team would then assess the matter in light of the eligible
circumstances at paragraph 4.2 and make a recommendation to the
Assistant Director –Schools and Learning whether funding should come
from the de-delegated contingencies budget or whether it is a cost that
should be borne by the school’s delegated budget. As the budget holder
for the de-delegated contingencies budget, the Assistant Director-Schools
and Learning would then decide whether funding should come from the
contingencies budget. The contingencies budget update report to the
Schools Forum provides accountability and transparency over the use of
the budget.
4.6
The appended spreadsheet presents a forecast budget position for the
contingencies budget for the 2013/14 financial year. Expenditure is
grouped into the three categories detailed at 4.2 above.
4.7
£808,000 is forecast to be spent on schools in financial difficulties.
However, this budget may not be fully spent depending on the decision
taken by the Schools Forum on the allocation of this funding.
4.8
The forecast on the contingencies budget for 2013/14 is an underspend of
£263,155. Any under or overspend on the budget at the financial year end
will be carried forward into the Dedicated Schools Grant earmarked
reserve.
4.9
The forecast on the contingencies budget at 30th September 2013 was
£296,676. The reduction in the underspend is due to an additional
potential compromise agreement in 2013/14.
5.0
5.1
OPTIONS
The Schools Forum is asked to note the forecast year end position on the
contingencies budget as at October 2013.
6.0
RESOURCE AND VALUE FOR MONEY IMPLICATIONS
6.1
The revised de-delegated contingencies budget for 2013/14 is £1,481,544.
As at 31st October 2013, an underspend of £263,155 is forecast for the
2013/14 financial year.
6.2
In accordance with the Dedicated Schools Grant conditions, any underspend
of overspend on the de-delegated contingencies budget at the financial year
end will be carried forward into the Dedicated Schools Grant earmarked
reserve.
7.0
CONCLUSION
7.1
This paper presents the forecast 2013/14 year end outturn position on the
de-delegated contingencies budget as at October 2013. The Schools Forum
is asked to note the projected underspend position of £263,155.
Helen Hamilton
Finance Manager – Schools & Learning
22nd November 2013
_________________________________________________________________
Accompanying Documents:
Appendix 1 – Schools Contingency Budget Forecast as at 31st October 2013
REPORT AUTHOR
Contact:
Helen Hamilton
Finance Manager – Schools and Learning
Email: helen.hamilton@cumbria.gov.uk
Telephone: 01228 221196
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