School Funding & Forward Financial Planning

Transcription

1 School Funding & Forward Financial Planning Shropshire Governors/Headteachers/School Business Managers Lord Hill Hotel, Shrewsbury Wednesday 7 October 2015, 4.30pm to 6.00pm 1

2 Welcome and introductions Presentation covers 2 key areas: School Funding update on the Government s announcement of funding for schools for next financial year Forward Financial Planning the Shropshire picture and the importance of forward financial planning by schools 2

3 School Funding

4 School Funding Background Significant reforms to the local school funding formula since Local authority, through and with Shropshire Schools Forum, have managed the required formula changes Government acknowledges current national schools funding system is unfair and out-of-date Government s aim is to move to a National Fair Funding Formula 4

5 Headlines School Funding Shropshire s Schools Block per pupil unit of funding in will be the same value as in including the additional Minimum Funding Level allocation of 10.3m Minimum Funding Guarantee (MFG) will continue in at minus 1.5% No proposed changes to Shropshire s local funding formula in Individual school budget shares for will be based on October 2015 census data and published with maintained schools late January/early February Academies will receive notification from the EFA. 5

6 School Funding Allowable Formula Factors 1. Basic Entitlement (Age Weighted Pupil Unit) 8. Lump Sum 2. Deprivation 9. Split Sites 3. Prior Attainment 10. Rates 4. Looked After Children 11. Private Finance Initiatives 5. English as an Additional Language 12. London Fringe 6. Pupil Mobility 13. Post Sparsity 14. Exceptional Premises Factors 6

7 Government s Manifesto 2015 Amount of money following a child into school will be protected Continuation of the pupil premium, protected at current rates Support for families by providing free meals to all infants Make schools funding fairer 7

8 Forward Financial Planning 8

9 Understanding the Shropshire Picture Demographic Challenge Shropshire is bucking the national trend with overall pupil numbers forecast to fall by 3.2% by 2018 (3.7% in primary and 2.6% in secondary) Shropshire will have more unfilled places by 2018 Housing developments are not generating material growth in pupil numbers In the period 2004 to 2013, there were 10,795 housing completions in Shropshire while pupil numbers fell by 3,750 (9.6%) 9

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11 Understanding the Shropshire Picture Impact on Dedicated Schools Grant (DSG) and Individual School Budgets Falling rolls will reduce the overall DSG received by Shropshire over the next 4 years by approximately 5m Shropshire received 4,402 per pupil in Individual schools with falling rolls will receive less funding as the majority of funding is based on pupilled factors 11

12 Understanding the Shropshire Picture Projected number on roll and budget variances to Var from Var from Var from Var from Total variations NOR NOR NOR NOR NOR Small Primary (50 on roll) , , , ,042 Medium Primary (180 on roll) , , , , ,488 Large Primary (420 on roll) , , , , ,136 Secondary (700 on roll) , , , , ,618 12

13 Understanding the Shropshire Picture Pupil Place Planning Fall in pupil numbers not evenly spread across the county some areas will see modest growth in pupil numbers In next 4 academic years, through to 2019/20, an additional 8 classrooms will be required for this growth Five planning areas are affected: Market Drayton, Oswestry, Shifnal, Shrewsbury and Whitchurch A consultation on a School Place Planning paper will get underway later this term Meetings will take place in each of the five planning areas to consider the options 13

14 Understanding your Budget What income streams do schools have? Budget Share Pupil Premium High Needs Top-Up Funding Other Specific Grants Donations/Lettings Other 14

15 Understanding your Budget 15

16 Understanding your Budget Impact on income from: Demography Number of free school meal (FSM) pupils High Needs pupils Sparsity Minimum Funding Guarantee (MFG) does not protect against a falling roll 16

17 Understanding your Budget What expenditure commitments do schools have? Staffing accounts for over 75% of school revenue expenditure Cost pressures pay awards, incremental progression, increasing employers pension contributions, non-pay inflation costs Timescales for making reductions take early action Priorities in line with School Development Plan 17

18 Understanding your Budget School Deficit Budget Protocol for Maintained Schools Schools planning a deficit budget must first get approval from the local authority Schools must follow the Protocol for Schools Planning and Managing a Deficit Budget, available on the Shropshire Learning Gateway Schools will only be allowed a deficit budget in exceptional circumstances Schools placed in Special Measures will not be allowed a deficit budget 18

19 Understanding your Budget Schools Financial Value Standard (SFVS) The SFVS is a mandatory requirement for all local authority maintained schools Designed to help schools manage their finances and give assurance that they have secure financial management in place It is primarily aimed at governors Schools must complete the SFVS assessment form on an annual basis and return a copy, signed by the Chair of Governors, to the local authority by 31 March each year 19

20 Financial Planning Tools q Modelling Tool q Benchmarking Tool 20

21 Modelling Tool Allows schools and governing bodies to analyse and model future year budget shares based on projected numbers Provides headteachers and governing bodies with a method of appraising and managing future year budgets, in particular where these budgets are likely to reduce Uses latest funding values to estimate future year budget shares Shows the local authority s forecast aggregate number on roll through to for the linked secondary school Federation/collaboration modelling tool is available 21

22 Shropshire Council - School Funding Modelling Tool An Example School Oct 14 Census Oct 15 Census Oct 16 Census Oct 17 Census Oct 18 Census Nor Nor Nor Nor Nor Reception Uplift A Total Local Authority NOR Forecast (without housing) Pupil Forecast to C Oct 14 Census Oct 15 Census Oct 16 Census Oct 17 Census Oct 18 Census School Modified Forecast LA Forecast (without housing) An Example Estimated School Future Years Budget Shares Act Est Est Est Est Nor FSM % 6.11% 6.11% 6.11% 6.11% 6.11% LPA % 4.69% 4.69% 4.69% 4.69% 4.69% B Pupil Led 421, , , , ,932 Fixed 74,170 74,170 74,170 74,170 74,170 AEN/SEN 22,542 18,068 16,863 14,454 13,250 MFG Total Estimated Budget Share 518, , , , ,352 Budget share variation to prev -21,276-87,359-23,390-47,795-24,585 % variation to prev yr LA Budget Share Forecast 518, , , , , , , , , , ,000 - Budget Share Forecast to , , , , , , , , , , School Modified Budget LA Estimated Budget De-delegation Linked Secondary School Area Data Cumulative primary NOR change for linked secondary school -125 Act Est Est Est Est area. Estimated De-delegation 3,228 2,587 2,415 2,070 1,897 D Funding Per Pupil Forecast Funding 3,958 4,106 4,161 4,285 4,355 Shropshire Average Funding 4,109 4,118 4,124 4,127 4,130 Historic Closing Revenue Balances Year Ending March 2010 March 2011 March 2012 March 2013 March 2014 Final Closing Revenue Balance 48,658 19,601 26,510 25,078 42,535 Support with the use of this tool can be provided by the traded Schools Finance Support Service. (Included at gold level) 22

23 Benefits of benchmarking: Benchmarking Tool v Focus on planning and managing your budget v Identify areas of improvement v Set targets for improvement v Achieve best value quality vs. cost v Mandatory element of Schools Financial Value Standard (SFVS) Benchmark against similar funded schools (Shropshire) Comparison criteria - uses a range of factors such as numbers on roll,% FSM, % low prior attainment Output produced using Consistent Financial Reporting structure (choice of either total spend or spend per pupil) 23

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27 Review of Efficiency in the Schools System Key findings from Department for Education review in Deploy workforce effectively - focus on developing high quality teachers 2.Use evidence to determine right mix of teaching and non-teaching staff 3.Employ or have access to a skilled school business manager who takes on a leadership role 4.Make good use of financial benchmarking information to inform the school s own spending decisions 5.Make use of school clusters, sharing expertise, experience and data, as well as accessing economies of scale when making shared purchases 6.Manage down back office costs and running costs 7.Have in place a strong governing body and leadership team that challenges the school s spending 27

28 Collaboration/Federations Perspective from two Shropshire headteachers q Nicola Maddocks Executive Headteacher of the Westcliffe Federation q Alan Doust headteacher of The Community College, Bishop s Castle, part of the South West Shropshire Learning Trust 28

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33 Are there any questions? 33

34 Further Support Available Traded Finance Support Team budget monitoring and financial planning support available through a service level agreement Financial Planning Workshops available to invited schools in November 34