TORFAEN EDUCATION SERVICE GUIDE TO THE NURSERY, PRIMARY AND SECONDARY SCHOOLS FUNDING FORMULA 2010/11

Transcription

1 TORFAEN EDUCATION SERVICE GUIDE TO THE NURSERY, PRIMARY AND SECONDARY SCHOOLS FUNDING FORMULA 2010/11 APRIL

2 CONTENTS Para Page 1 Introduction 1 2 Definition of Common Terms 2 3 Timetable for Budget Preparation 3 4 Pupil Led Factors Teaching Staff Absence Cover Administrative Staff Headteachers and Deputies Mid-Day Supervisors Examination Fees Free Meals Value Water Teacher Recruitment Capitation Teaching and Learning Assts / Workforce Remodelling Compact 8 5 Site Specific Factors Energy Cleaners Caretakers Building Maintenance Grounds Maintenance 10 6 School Specific Factors Foreign Language Assistants School Meals Refuse Rates Clerks to Governors School Councils Small School Allowance Service Level Agreements 12 7 Additional Educational Needs Social Deprivation Named Pupil Funding 13 8 Place Led Funding Treated as Pupil Led Special Needs Resource Bases 13 9 Budget Adjustments Contingencies New Schools / School Closure Transitional Funding Single Status Funding Other Funding Items Foundation Phase DCELLS Post Key Stage Schools Special Grant and Energy Costs Grant Rising 3 s Keeping the Formula Under Continuous Review Contacts 18 2

3 GUIDE TO THE NURSERY, PRIMARY AND SECONDARY SCHOOLS FUNDING FORMULA This guide is intended to aid understanding of the way in which the Torfaen Schools Funding Formula works for nursery, primary and secondary schools and to answer the questions most commonly asked about the Formula and the data used in it. It is intended primarily as a reference source for schools, governing bodies and other stakeholders involved in the provision of education within Torfaen. 1. Introduction to Formula Funding 1.1 The Schools Funding Formula is the basis on which funding is allocated to Torfaen schools. Funding is distributed across schools using a number of factors to seek to achieve a reasonably close fit between formula allocations, historic expenditure and the Local Authority s policies. 1.2 Since Local Management of Schools was originally introduced in 1990, a number of additional responsibilities and services have been delegated and sometimes new factors have been introduced for these purposes. At other times, existing factors have been used, but in each case the LEA has attempted to delegate the new responsibilities in a way which recognizes the variation of need between schools, while recognizing that compromises are necessary to avoid excessive complexity in the Formula. 1.3 The allocation method is in accordance with the Schools Budget Shares (Wales) Regulations 2004, which requires LEA s to determine a formula to allocate individual schools budgets having due regard to the factors, criteria and requirements set out in the regulations. 1.4 The legislation requires the LEA to take into account the following factors in the formula: Pupil numbers A factor or factors based on Social Deprivation Furthermore, the LEA must ensure that the formula provides for at least 70% of the Individual Schools Budget to be allocated on the basis of pupil-led funding. 1.5 Schools must make their own decisions as to how much funding to allocate on specific categories of expenditure in order to most effectively fulfil their duties to current and future pupils. The allocation of funds via a specific formula factor does not prohibit a school re-allocating funding to other budget headings. All delegated funding may be spent on anything required for the purposes of the school. 1.6 The Funding Formula is subject to continuous review and will be regularly updated, following appropriate consultation, to respond to changes to legislation and changes to need. This guide explains those factors currently in use. The Formula can be subdivided into a number of factors which can be defined by the basis of allocation and these are described in the following paragraphs. 1

4 2. Definitions of Common Terms 2.1 Pupil-led Factors A formula factor is pupil led if every pupil of specified age and characteristics receives the same funding, irrespective of the school which they attend. For example, Age Weighted Pupil Unit Funding and most forms of special educational needs funding are pupil-led. Historically, there has been an expectation that a large part of a school s funding will be pupil-led. 2.2 Site Specific Factors These are factors which depend on the size and nature of a school s buildings and grounds. 2.3 School Specific Factors These are factors based on characteristics of the school that are not site specific, or characteristics of the pupils at the school which are not pupil led, or SEN or social deprivation factors Additional Educational Needs (AEN) These are factors which help to fund pupils who are disadvantaged by their personal characteristics, background or environment. It includes those pupils with special educational needs 2.5 Place Led Funding treated as Pupil Led Funding for special educational needs resource bases in mainstream schools and for special educational needs support resources are treated as pupil-led. This is because every place for a designated category of pupil receives the same funding, irrespective of the school being funded. 2.6 Budget Adjustments The funding of schools is also subject to the application of adjustments for exceptional or unforeseen circumstances and transitional protection arrangements. 2.7 Single Status The Single Status Agreement was agreed by employers and trade unions some years ago. The intention was to harmonise terms and conditions of employment for employees under the administrative, professional, technical and clerical services (APT&C) and manual conditions of service. One of the guiding principles was to review the grades of staff to ensure that staff received equal pay for equal work. The review was undertaken via a process of job evaluation resulting in agreed grades for differing categories of staff. These grades have been notified to individual staff and terms and conditions adjusted. Any variance to the agreed grades must be justified and requires resubmission of details to the Single Status Team. 2

5 2.8 Other Funding Items There are a number of other funding sources applicable to schools which do not form part of the formula but are shown within the funding statements provided to schools. In addition there are a number of education grants that the authority receives which are subject to specific terms and conditions and the methodology for allocating these funds is communicated to schools prior to the grant funding being released. 2.9 Pupil Numbers The allocation of pupil led factors is based upon pupil numbers as at the September prior to the commencement of the financial year. The numbers include all pre-16 pupils and exclude guest and dual registration subsidiary pupils. Post 16 activity is funded via grant from DCELLS. 3. Timetable for Budget Production 3.1 Individual budget allocations for each school are issued annually in March. The precise timetable depends on the timing of government announcements and of local decisions of the Council. 3.2 Together with the release of individual school funding allocations, schools are provided with a pack of information that is used by schools to plan the school budget expenditure levels for the coming year. The information pack contains: a. A spreadsheet containing details of staff to enable cross-check on a school s own calculations; b. Copies of Out-turn Statements for the previous two financial years; c. A financial statement for the year to date (please note, this will not be an Outturn as considerable expenditure will be processed after this date); d. A pupil-level analysis of named pupil special needs funding; and e. An Age Weighted Pupil Unit Table for the new financial year. 3.3 This information assists schools when setting their preliminary budget for the coming year. The Governing Body will want to give sufficient thought to relating financial resources to the aspirations in School Development Plans before determining the approved budget for the year. The budget plan for each year, together with the school delegation levels, must be approved by 31 st May. 3.4 During the year, school budgets can be adjusted for a number of reasons. The main reasons for such changes are: Funding for named pupils is amended during the year for changes to pupil numbers and need as the funding is based on individual pupil need. Funding is deducted where pupils are excluded and added where pupils excluded from other schools are admitted. Funding is adjusted for significant in-year pupil growth, where pupil numbers increase by 3% or more from the September pupil count. 3

6 Adjustments for schools unable to achieve class size targets at Key Stage 2. This is to enable schools to achieve the recommended 1:30 staff to pupil ratio. Adjustments to match NNDR rates funding to expenditure where the original rates charges notified are amended. Budgets are corrected as necessary if errors are discovered. 4. Pupil-led Factors 4.1 The following elements are considered to be dependent upon the number of pupils within the school. The pupil numbers used are those determined as at September prior to the start of the financial year. The September pupil count is used to provide an early indication of funding enabling earlier determination and notification of budgets. This in turn allows Governing Bodies to determine with certainty their budget for the year at the earliest possible time. The pupil numbers will not include guest or dual registration subsidiary pupils as these will be funded in their main school. 4.2 Teaching Staff The teaching element is made up of factors for the funding of teachers salary and additional responsibility points. No separate allocation has been made for the Teachers Upper Pay Spine as this in incorporated within the average salary determined The funding is determined by taking an average salary, including oncosts, and multiplying by the estimated number of staff per year group. The average salary is determined by analysing actual costs in the previous financial year and by applying inflationary increases based upon the latest available information. For 2010/11 the funding is based upon 29,519 for teachers within the Nursery and Primary Sectors and 30,781 in the Secondary Sector an oncost rate of 21.65% is then applied. Teacher numbers are estimated by using the September pupil numbers and applying the following pupil teacher ratios: Nursery & KS1 24 Primary KS2 26 Secondary Additional responsibility points have been funded on the basis of a fixed sum, including oncosts, per teacher as determined in the above teaching staff. The fixed sum has been determined as 1, for the financial year 2010/ Absence Cover Funding for absence has been determined by taking an assumed absence rate of 4% for every teacher based on 195 days and multiplying by a daily rate of 150. The 4% absence rate is a target rate applicable throughout the authority In addition to the calculated number of teaching staff a further allocation of two staff per secondary and one per primary has been added to provide funding for senior staff absence. 4

7 4.3.3 Furthermore an enhancement of 10% has been added to provide a funding allowance for administrative staff. 4.4 Administrative Staff The formula reflects the differing administrative support needs of the Nursery, Primary and Secondary sectors and the impact of pupil numbers The administrative support for the Nursery Sector is based on 25% of a term time only member of staff. The rate of pay is taken as 18,067 including an oncost rate of 25%. The funding is therefore 4,517 per school, this reflects the small nature of these schools and the consequential reduced level of administration For the Primary Sector the funding is tiered to reflect the impact of pupil numbers, hence: Schools with 200 pupils or fewer A single administrator, working term time only and with an oncost rate of 25% is funded. In 2010/11 this is funded at the level of 18,067 per annum. Schools with in excess of 200 pupils The funding of a single administrator is as above and then enhanced on a pro-rata basis for the pupil numbers above 200 on the same funding level as that applied to schools with 200 or fewer pupils In the Secondary Sector funding is provided for a bursar plus other administrative / non-teaching staff. The bursar post is funded at 40,281 which is based upon a full time post with oncost at 25%. Additional funding is provided for other administrators and support staff such as technicians or librarians. These additional staff are funded on the basis of 18,067 per annum reflecting term time only work patterns and an oncost rate of 25%. One additional member of staff is funded for every 150 pupils. 4.5 Headteachers and Deputies The funding allocation is based upon the school group size which is calculated under the provisions of the School Teacher s Pay and Conditions Document and is determined from pupil numbers within key stages. This calculation provides a school grouping range upon which governing bodies are able to determine an individual seven point range for the Headteacher applicable to their school The initial grouping determined from the pupil numbers is generally some 13/14 individual scale points. Given that for an individual school the range must be seven points a further sub-division is determined to provide four individual over-lapping seven point ranges. The budget provision is then based upon the mid-point of the most appropriate range based upon actual pupil numbers For those schools with less than 100 pupils the funding is based upon 60% of the total to reflect a part time teaching commitment for the Headteacher The funding of Deputy Headteachers is based upon the Headteachers point and is simply set at six points lower on the scale, based upon the need to ensure that the 5

8 five point scale which they are entitled to does not overlap the Headteachers scale. In the Secondary sector it is assumed that Deputy Headteachers are non-teaching and that there is a need for two such posts, whereas in the Primary sector the funding of Deputies is for the additional cost compared with an agreed teachers salary equivalent to that funded via the teachers element of the formula as it is assumed that such deputies will have a teaching commitment. Within Nursery Schools no funding for a deputy post has been provided reflecting actual practice within the schools Both oncost rates are assumed to be 23% which is based upon analysis of actual costs It should be noted that this funding element does not form part of the Age Weighted Pupil Unit (AWPU) as there is no direct linear relationship between pupil numbers and the funding value. The element is however clearly pupil led and as such is shown on the school budget information as pupil-led. 4.6 Mid-day Supervisors This funding enables schools to employ mid-day supervision for meal times at varying pupil to staff ratios dependent upon the age of the pupils. The allocation is based on staff pupil ratios of 1:30 Nursery, 1:30 Primary and 1:100 Secondary In the Primary Sector a payrate of 7.45 has been applied with an assumed 5 hours per week per member of staff. For each 100 pupils within a school an additional allocation of a member of staff acting in a supervisory capacity paid 8.90 per hour for 6.25 hours per week In the Secondary Sector all supervisors have been funded at the higher rate of 8.90 per hour for 6.25 hours per week The oncosts rates used are 9.6% for staff on the lower rate of pay and 11.8% for those on the higher rate. This reflects the actual position for this category of employee The funding of this element reflects practice prior to the implementation of Single Status. Therefore, it will be subject to review by the Working Group to ensure the formula is updated to fully reflect the implementation of Single Status. 4.7 Examination Fees This element provides funding for secondary schools for the costs associated with examination entrance fees for GCSE and equivalent examinations. For the 2010/11 year this funding is per examination. The allocation is based upon a fixed sum per examination with an assumed take up of 10 examinations for each year 11 student and 2 examinations per year 10 student. 6

9 4.8 Free Meals Value This provides funds for the cost of free meals issued to staff who support mid-day supervision. The number of mid-day supervisors as previously calculated is multiplied by the number of school days and at an assumed cost of 2.55 per day. In addition a nominal allowance of 1.16 per four weekly period is added as a laundry allowance which is payable to mid-day supervisors The funding of this element reflects practice prior to the implementation of Single Status. Therefore, it will be subject to review by the Working Group to ensure the formula is updated to fully reflect the implementation of Single Status. 4.9 Water The funding is based upon an average usage of 4 cubic metres (4,000 litres) of water per pupil. This usage is based upon national averages. This is multiplied by the combined cost of water and sewerage ( and respectively as per Welsh Water). Note that the sewerage is calculated as 95% of water used which is the standard figure used by Welsh Water to determine usage. The volume has therefore been adjusted accordingly when calculating the sewerage element. In addition a standing charge of is added to the funding for Primary and Nursery Schools and for Secondary Schools based on Welsh Water charges Teacher Recruitment Funds to support the advertising for and recruitment of teaching staff using national turnover ratios and an assumed average cost per vacancy. The vacancy figures are those published annually by the Welsh Assembly and relate to the previous year. The 2008/09 statistics indicated a turnover ratio of 3% The number of teachers as determined by the teacher s salary formula has been used as the basis to allocate funds and an assumed cost of 510 per vacancy has been used. The funding is based on an assessment of the advertising and recruitment costs in schools. The funding has been agreed by the Working Group as being reflective of general advertising / recruitment costs for teaching staff and is inclusive of enhancement for the additional costs associated with the advertising of headteachers which may be considerably more but would not be an annual occurrence Capitation The capitation allowance is to provide schools with resources for teaching and learning. The funds are allocated on the basis of 5% of total AWPU for Secondary, Primary and Nursery allocated over individual schools on pupil numbers. An enhancement for schools teaching through the medium of Welsh is applied at a rate of 25% per Primary and 35% per Secondary due to the need for more costly resources. This allocation method will be reviewed every three years to ensure that the funding is reasonable, whilst in the intervening years an inflationary factor will be added to the funding. 7

10 4.12 Teaching and Learning Assistants/Workforce Remodelling The formula provides additional classroom support in the primary sector in the form of Teaching Assistants. This is calculated on the basis of an average salary equivalent to 13, and with an oncost rate of 23.15%. This assumes a full time equivalent of 70% to reflect term time working. Weighted pupil numbers have then been applied to determine the overall funding on the basis of 1:24 at Reception; 1:110 at Nursery and 1:250 for the remainder of the Primary Sector The workforce remodelling funding is based upon three elements. A lump sum allocation of 10,000 per Secondary School and 5,000 per Primary/Nursery School; a further sum based on staff numbers with a split of 65% Primary and 35% Secondary; and a per pupil element based on a split of 80% Primary and 20% Secondary Compact The funding for this agreement is based upon the allocation of 700,000 on a per pupil basis distributed 400,000 to the Secondary Sector and 300,000 to the Primary Sector to recognise the existing inequality in funding as evidenced by review of the all Wales per pupil funding tables published by WAG. This has been equated as per Secondary pupil and per Primary pupil and is intended to provide funds to assist schools in raising standards. Following consultation with Headteachers this area will be subject to further review during 2010/ Site Specific Factors The following factors depend upon the size and nature of a school s buildings and grounds. 5.1 Energy This funding allocates resources to cover the costs of heating and lighting. The advice of the Authority s Energy Efficiency Officer has been sought and data has been provided on the basis of typical usage per school type from benchmarking data provided nationally. This data is at this point considered to be the best available to determine consumption and hence funding. The benchmark data is based on annual consumption per kwh per m2, and is as follows: Fossil Fuel Electricity Primary Schools 164 kwh/m2 32 kwh/m2 Secondary Schools 144 kwh/m2 33 kwh/m2 The actual contract values for fuel costs have then been used, together with current floor areas to determine the funding for energy This funding has further been refined by applying a building condition factor based upon the Education Service Asset Management Plan, the factors are as follows: A 1.00 B

11 C 1.03 D 1.04 Where those buildings determined as A are in a good state of repair and those determined as D are in a poor state of repair. This attempts to reflect the need for additional funding where the general building condition is deemed poor and hence the energy requirement is higher. 5.2 Cleaners The formula provides resources to allow schools to purchase cleaning hours to meet the needs of each school based on operational floor areas The formula has been determined using data, received from the Catering and Cleaning Team, relating to actual hours and contract values required for particular sites. Hours required for those sites outside the contract are based on an average number of hours calculated from those schools using the contract and contract values applied pro-rata For schools with less than 1000 sq m it is assumed that the caretaker is able to undertake some of the cleaning duties and hence the total floor area is adjusted by 668 sq m to reflect the floor area cleaned by designated cleaners. This is defined in the caretaker s terms and conditions of employment. 5.3 Caretakers The funding is to provide resources to enable schools to employ sufficient staff to support the efficient running of the school in terms of caretaking duties. The funding is based upon the nationally agreed terms and conditions for caretakers Floor areas are used to determine the number of hours required per school and enhancements are made for alternating shift, where applicable, and boiler duties The basic number of hours is determined by reference to the national terms and conditions. These provide for a variable number of hours for a part-time caretaker for schools with under 928 m2; a caretaker on 37 hours for schools with between 928m2 and 9269m2; and, for schools over 9270m2 an additional caretaker is assumed The requirement for an additional caretaker for schools above 9270 m2, which are the large Secondary Schools, is due to the need to provide a presence for periods in excess of the standard day on a regular basis and to provide cover on large sites where a single operative cannot cover all of the tasks during the working day In addition a boiler duty allowance is funded to provide resources to fund the additional hours required during the winter months (October to April). This is based upon: Secondary - an additional hour each Saturday and Sunday enhanced as time and a half and double time respectively Primary an additional 30 minutes each Saturday and Sunday enhanced as time and a half and double time respectively 9

12 5.3.6 For those schools with more than one caretaker an alternating shift allowance is also payable at a rate of 10% of manual grade 3 per the caretakers terms and conditions of service. This funding is to provide an enhancement for unsocial working patterns The actual wage for caretakers is determined by reference to floor areas and the following table provides a summary of the floor areas and associated manual grades, note that Manual 3-5 relates to primary sector: Floor Area M 2 Grade <1000 Manual Manual Manual 5 Secondary Manual Where an additional caretaker is required in the Secondary Sector funding is provided in accordance with the Caretakers Terms and Conditions on a grade equivalent to Manual An oncost rate of 29% has been applied to all calculations based on actual analysis of costs The funding of this element reflects practice prior to the implementation of Single Status. Therefore it will be subject to review by the Working Group to ensure the formula is updated to fully reflect the implementation of Single Status. 5.4 Building Maintenance This funding is to provide schools with funding to ensure that general routine maintenance can be carried out. The allocation is based upon the national benchmark figure of per square metre of floor area. A reduction for Voluntary Aided Schools equivalent to 33% is made as funding for building work within these schools is partially grant funded directly by the Assembly. 5.5 Grounds Maintenance The cost of grounds maintenance for schools is based on the type of area to be maintained for example grass cutting, shrub maintenance, sports pitches line marking. The funding is based on historical grounds maintenance data which identifies areas to be maintained and the type of work required. The cost of work required has been calculated from these factors and increased year on year for inflation. 6. School Specific Factors The following cannot be classified as being pupil or premises led as they do not correlate directly with either pupil numbers or a school s size or nature. As such a variety of determinants have been applied to provide a basis on which to allocate funds to schools as described in each section. 10

13 6.1 Foreign Language Assistants This funding provides secondary schools with the option of employing foreign language assistants. The British Council sets the rate of pay for such students and administers their placement The work pattern of these students is such that they only work for eight months of the year and a nationally agreed pay rate equivalent to 6,888 per annum, an oncost rate of 9% has been applied to this funding reflecting the actual position. The funding allocated per school is 50% of the cost of a single person. 6.2 School Meals This element is to enable those schools with delegated responsibility to fund the provision and therefore only relates to Secondary Schools. Two factors are used to determine the funding, one being the take-up of meals determined from previous year s data and a floor area allocation. The basis of the total funding available is an inflationary uplift of previous year s figures The meal take up is based on analysis of the average of two years meal take up and determines some 80% of the funding The remainder of funds is allocated on the basis of floor area and is intended to provide a sum for the maintenance of equipment and is based on an assessment by officers within the Cleaning and Catering Team of the likely costs of such maintenance. 6.3 Refuse This funding is to enable schools to cover the cost of refuse collection and has been based upon the most cost effective use of bins as determined by reference to data from the finance team responsible for recovering school refuse charges. The collection of refuse is charged on the basis of the number of bins used by a school Analysis of data relating to refuse collection has indicated an average number of litres of waste per pupil as being 8.18 litres in the Secondary Sector, 9.25 litres in the Primary Sector and 5 litres in Nursery Schools. These have been used to calculate an overall total average waste per school Two bin options are available one which can hold 240 litres and a larger bin of 1100 litres. The volume of bins available to schools have then been used to calculate the most cost effective number and type of bins per school The funding is then determined by applying the cost of these options which is currently 5.70 and per week respectively and is based on 42 weeks usage per year. 11

14 6.4 Rates This funding enables schools to fund the costs of the non-domestic rates charge levied by the Local Authority. The funding matches actual costs. For those schools that are Voluntary Aided it should be noted that Mandatory Rate Relief is applicable and currently this is enhanced by the award of Discretionary Rate Relief resulting in no charge being levied, hence no funding is allocated to these schools. This will be subject to review should Discretionary Relief be withdrawn. 6.5 Clerks to Governors This represents funding to support the provision of clerking services for full governing bodies. This service is provided to schools via a service level agreement with the Governor Support Unit of the Authority and funding for schools is based upon the actual charges applied for up to three meetings per annum, as follows: 6.6 School Councils Nursery School 510 Primary School 510 Secondary School This funding is to be used by all schools to fund the legal requirement for all governing bodies to establish a forum by which pupils can discuss matters relating to the school (The School Councils (Wales) Regulations 2005). The requirement is for six meetings which must be supervised by a member of staff. In order to fund this requirement a fixed sum allocation of 468 per school is made which has been based on six half days. This rate is based on a nominal sum of 156 per day to reflect the cost of supply cover. 6.7 Small Schools Allowance This is to provide additional funding to those schools with fewer than 130 pupils enabling core staff and materials to be provided to ensure an equivalent standard of education to pupils regardless of school size. The funding is a fixed sum allocation of 10,404 for those schools with less than 130 pupils. This allowance has been reduced by 50% compared with previous years because of the changes to individual schools funding created by the revised methodology. This is a transitional arrangement which will be phased out by 2011/ Service Level Agreements A number of support services are provided by the Local Authority to ensure that schools are provided with advice and guidance on key activity areas. These are provided via Service Level Agreements (SLA s) with individual service providers and the funding attributable is based on the cost of the SLA. The following services are currently covered by SLA s: Client Catering ~ to provide assistance with catering operations in Secondary schools Client Cleaning ~ to provide advice and guidance on cleaning issues 12

15 Exchequer ~ to support the payment of creditor invoices and payroll services Financial Support and Advice ~ providing advice and guidance on financial issues Training and Information Systems ~ to support schools in the administration of management information systems. Providing advice, guidance and training on the various databases and on-line data collation exercises such as PLASC. HR Services ~ provide information and guidance on HR issues, offer guidance on Health and Safety issues and advice and support on recruitment of staff. Governor Support Service to provide advice and guidance to governors. The provision of a clerking service to the full governing body is shown separately within the formula. ICT Operations ~ to support the ICT infrastructure Legal Services ~ to provide a basic level of legal advice It should be noted that the funding provided is based upon the provision of the standard service. Most service areas also offer enhanced services which are not funded by this element. It is for individual governing bodies to determine whether they wish to subscribe to any enhanced service and determine the necessary funding source Details of the cost and hence funding for each school is detailed in the Service Level Agreement Document updated and issued to schools annually. 7. Additional Educational Needs The following elements are associated with the provision of additional resources for pupils with additional needs. 7.1 Social Deprivation/Additional Educational Needs The legislative requirement is to provide an element of funding based upon a deprivation factor which is the non-statemented element within the current formula. The allocation method is based upon free-school meals entitlement which acts as a proxy indicator for deprivation The calculation is based on the pro-rata allocation of a fixed sum of 700,000 dependent upon the percentage of pupils entitled to free meals. An enhancement is made to those schools with in excess of 30% of pupils entitled to free meals whereby an additional 100,000 is allocated, again on a pro-rata basis. 7.2 Named Pupil Funding/Additional Educational Needs The existing method of funding involves the determination of a funding package per individual child determined on the basis of need based on support hours required. 8. Place Led Funding Treated as Pupil Led This funding is associated with the provision of Special Needs Resource bases within schools. 13

16 8.1 Special Needs Resource Bases Schools with a special needs resource base are funded on a per place basis with an additional pupil led element to cover non staff elements The place led funding is based on the total capacity of the units and the staffing within the units. The pupil led funding is based on age weighted pupil unit funding figures for non-staff areas multiplied by pupil numbers within age groups. 9. Budget Adjustments 9.1 Contingencies General contingencies are retained for allocation to schools in circumstances where errors in the application of the formula have occurred or if exceptional or unexpected circumstances occur. These have been retained as experience indicates that the provision will be required Pupil Growth this funding is to provide an allowance for those schools that experience more than a 3% increase in pupil numbers between the September base pupil numbers and those as at the following September. A sum of 100,000 is retained for this purpose Named Pupil Contingency where additional needs are identified in year for named pupils a further allocation is made from the contingency If at the end of the year balances remain within contingencies these are redistributed on the basis of pupil numbers to all schools. 9.2 New Schools and School Closures The Scheme of Delegation provides details on the arrangements for new schools and schools to be closed New schools receive a budget from their first anticipated day of opening, with the budget being determined in accordance with the formula but with the following adjustments: (i) (ii) (iii) The budget share to be proportionate to the number of days for which the school is likely to be open out of a full financial year of 195 school days. The calculation of pupil numbers is to be based upon the maximum anticipated school roll during the financial year of opening. From the date of the first meeting of the temporary governing body, the school shall receive 5 per day for each remaining calendar day of the financial year to meet costs associated with governor expenses Closing schools will receive a budget share until their anticipated day of closure. The budget share to be calculated according to the formula subject to the application of a proportionate calculation based upon the number of days for which the school is likely to be open out of a full financial year of 195 days. 14

17 9.2.4 The scheme also identifies the treatment of balances of schools that close or amalgamate. In the financial year of closure or amalgamation all expenditure shall be strictly related to what is reasonably required to keep the school functioning efficiently and effectively and no monies shall be spent for any other purposes. All unspent monies shall revert to the Authority and will be held as a contingency. The balance cannot be transferred to any other school even where the school is a successor to the closing school The Authority may however provide additional sums to the successor school which are equal to the balances of the relevant closing schools. There is also provision for the reduction of funding for the successor school to recognise the deficit of a closing school Thereafter, any savings accruing in the first or subsequent years are transferred to an Education Modernisation Reserve which is ring-fenced for reinvestment within schools. 9.3 Transitional Funding The result of the introduction of the new formula is that some school budgets varied considerably when compared to the previous formula. This was a concern discussed during the development of the revised formula with the Working Group. A decision was made to provide transitional funding for schools with significant budget variances. This transitional funding is given to those schools with a loss of funding of more than 40,000. In such circumstances the variance in excess of 40,000 will be halved As the impact of the revisions only affected three schools it was possible to fund the transition from contingencies. It should be noted that this transitional funding applies only to 2010/ Single Status Funding 10.1 The implementation of Single Status has resulted in additional funding based upon analysis at a corporate level of the increased costs associated with revising individual staff terms and conditions. This funding has, in this first year, been shown separately within the budget statements for transparency and totals 330,361. The current year s funding is allocated to match actual costs in individual schools. In future years this funding will be absorbed within the formula by adjustment of those elements that contain staff subject to single status, therefore resulting in a formula based allocation method. The areas of the formula containing such staff and allowances paid to these staff require review by the Working Group. These categories include Administrative Staff, Mid-day Supervisors, Teaching and Learning Assistants, Cleaning Staff, Catering Staff, Nursery Nurses and Caretaking Staff. 15

18 11. Other Funding Items 11.1 Foundation Phase Grant A grant allocation of 2,254,291 has been allocated to the authority. After the retention of funding for the non-maintained sector and for training a total of 2,089,444 is distributed to schools. The funding enables schools to deliver the recommended ratios of 8:1 for nursery and reception age pupils and from September :1 for Year 1 aged pupils The base formula provides for funding of staff based on a pupil: staff ratio higher than that recommended. The grant funding is therefore used to increase staff funding to enable the recommended pupil: staff ratios to be achieved. The funding allocated is based on ancillary pay grade point 19, term time only with an oncost rate of 32% applied DCELLS Post 16 Funding The allocation of post 16 funds is determined by learner activity and is based upon a recommended funding methodology from DCELLS with all funding for 16+ year olds being received via DCELLS. The funding is dependent upon a number of factors such as learning through the medium of Welsh, complexity of courses, educational deprivation and sparsity. These factors are applied to a base funding value to provide an overall funding allocation per school based upon learner activity Specifically in 2010/11 the following should be noted: A 1% efficiency saving has been applied to the derived allocation by DCELLS to recognise that each school is being asked to absorb the costs of 1% of its volume of learning DCELLS require schools to absorb inflationary pressures in 2010/11 and hence does not include any inflationary increase. The DCELLS funding also provides for SEN in Mainstream and this has been uplifted by 1% and passed to schools. The centrally retained element for administering the grant has been uplifted by 1%. However, the Authority retains only 0.4% of funds equating to 15,963 although DCELLS allows for up to 3% to be retained Key Stage 2 Funding In order to assist schools in maintaining the recommended 1:30 staff: pupil ratio at Key Stage 2 a sum of 100,000 is retained. The allocation of these funds is based upon an analysis of forecasted pupil numbers and staffing levels within schools. If it is determined that a school will not be able to achieve class sizes of 30 or less, after taking into account the reasonableness of other budget provisions within the school and the school is forecasted to be in financial difficulties, then an allocation of funding is made to assist with the employment of staff. 16

19 11.4 Schools Special Grant and Energy Costs Grant This grant has now been transferred into the Authority s general revenue allocation and has been passported into school budgets. The allocation of 320,000 has been distributed as follows and is consistent with previous years Energy is allocated on a fixed sum basis with 2,000 allocated to Secondary Schools and 1,000 to other schools The Schools Special Grant is allocated on the basis of fixed sums dependent on pupil numbers within primary and secondary schools. The allocation is as follows: 11.5 Rising 3 s Nursery Schools 2,233 Primary Schools less than 51 pupils 2, pupils 2, pupils 4, pupils 5, pupils 8, pupils 9,571 Secondary Schools less than 601 pupils 10, pupils 13, pupils 17, Schools are able to admit rising three year olds into their school from January up until they reach Nursery age at September. Schools receive a set amount of funding for each rising three year old at the school between January and July. The amount each pupil is funded for is based upon full time equivalent numbers at January and April multiplied by the nursery element of the age weighted pupil unit. 12. Keeping the Formula under Continuous Review 12.1 The changing nature of the education environment results in a need to continually review the formula. The revisions to the formula reflected in this document were subject to significant consultation including the formation of a Working Group consisting of headteachers from a cross section of schools, a governor and the Executive Member for Education and the Chair of Learning Communities Overview and Scrutiny Committee. The group provided valuable feedback on the suitability of proposed formula amendments and highlighted areas of concern to schools which required consideration. Given the success of this approach it has been decided to continue its work to provide assurance that any further amendment to the formula continues to reflect practices within and needs of schools The membership of the group during the consultation period comprised: Mrs Helene Mansfield Mr H Ellis-Griffiths Mr Mike Coady Mrs Michelle Bellew Headteacher Croesyceiliog School Headteacher Ysgol Gyfun Gwynllyw Headteacher St Albans High School Headteacher Brookfield Primary 17

20 Mr Chris Long Mrs Marion Davies Mr Mark Durbin Mr Neville Jones Cllr J Turner/Cllr M Barnett Cllr R Clark/Cllr J Rees Headteacher Cwmffrwdoer Primary Headteacher Kemys Fawr infants Headteacher Henllys CIW Governor at West Mon and Kemys Fawr Executive Member for Children and Young People Chair of Learning Communities Overview and Scrutiny Committee 12.3 Key areas for consideration by the group will be those areas which have not been previously reviewed and those that are known to require further work. The main areas will be: (i) (ii) (iii) (iv) Additional Educational Needs Workforce Re-modelling Headteachers and Deputies Impact of Single Status and resultant funding adjustments required 13. Contacts 13.1 Although this document provides details of the basis of the allocation of funding to schools you may wish to seek further clarification. In such circumstances the following officers will be available to respond to your queries: Name Designation Telephone Darren Joseph Head of Support Darren.joseph@torfaen.gov.uk Services Dave James Capital & David.james@torfaen.gov.uk Projects Officer Roxanne Team Leader Roxanne.larcombe@torfaen.gov.uk Larcombe Schools Finance Adrian Hanks Senior School Adrian.hanks@torfaen.gov.uk Support Officer Lisa Gould-Davies School Support Lisa.gould-davies@torfaen.gov.uk Officer Carol Pannell School Support Carol.pannel@torfaem.gov.uk Officer Sarah Pugh School Support Assistant Sarah.pugh@torfaaen.gov.uk