The Business Advisor (Schools) will present a report, Document JS, which updates Members on the forecasted spending positions of each of the DSG Blocks in 2018/19. This document gives Members a view of the estimated values of balances to be carried forward into 2019/20 and a view of the uses of these balances.

Recommended –

Members are asked to consider whether sufficient information has been provided to enable final recommendations to be made on 9 January 2019 on the allocation and / or retention of estimated DSG balances.

         (Andrew Redding – 01274 432678)

The Business Advisor (Schools) presented a report, Document JS, which updated Members on the forecasted spending positions of each of the DSG Blocks in 2018/19. This document gave Members a view of the estimated values of balances to be carried forward into 2019/20 and a view of the uses of these balances.

The Business Advisor presented Appendix 1, which set out the estimated spending positions by main heading within each of the 4 DSG blocks. He explained the main reasons for the spending variances vs. the planned budget. He also emphasised that these spending forecasts were based on estimates calculated in November and as such, were subject to movement. The final position of balances will be presented to the Forum in July 2019. Forum Members did not ask any questions and did not have any further comments on Appendix 1.

The Business Advisor presented Appendix 2, which proposed an approach to the allocation / retention of the balances forecasted to be carried forward in 2019/20. In particular, the Business Advisor explained, as set out in the report, why it is proposed to retain the majority of monies forecasted to be brought forward within the Early Years Block and within the High Needs Block, rather than to allocate these to additional spending in 2019/20.  The Business Advisor also highlighted that a large proportion of balances to be brought forward within the Schools Block are already committed by decisions previously taken by the Schools Forum or are ring-fenced for Growth Fund or for de-delegated funds.

A Member representing maintained Special Schools asked whether the financial support model for Beckfoot Upper Heaton Academy (the remaining £1.3m for the final 2 years) should be reviewed (or withdrawn) where the academy is now operating in surplus. The Business Advisor explained that a formal commitment has been given to the Trust, which is written into the Trust’s Academy Finance Agreement, for the financial support model to be completed as agreed. This model was constructed on detailed budget modelling and adjusts annually for pupil numbers. As such, it is probably un-realistic to expect that this agreement can be reviewed or withdrawn. The Member stated that we should have better considered this at the time the agreement was given. The Chair asked whether it would be possible to discuss with the Trust the academy’s financial position with a view to looking again at the final 2 years of support. The Deputy Director, Education and Learning, stated that the Authority will approach the Trust on this matter on the basis that the Schools Forum has asked for a review of the position of the final 2 years of financial support.

In concluding this agenda item, the Chair offered the Forum’s support for retaining balances for the purposes of safeguarding the DSG’s future financial position and for a stable use of balances, seeking to avoid ‘boom and bust’ approaches in the quick release and then withdrawal of monies within school and provider delegated allocations.

Resolved –

(1)       The Schools Forum requests that the Authority discusses with             Beckfoot Academies Trust whether the financial support model     for Beckfoot Upper Heaton Academy could be adjusted where the            financial position of the Academy has improved to surplus.

(2)       That sufficient information has been provided to enable the        Schools Forum to make its final recommendations on 9 January   2019 on the allocation and / or retention of forecasted DSG             balances.

ACTION: Business Advisor Schools