The Business Advisor (Schools) will present a report, Document HH, which provides an update on matters related to school and academy budgets. In particular, this report responds to the request made by Members at the last meeting for an interim update on the anticipated volume of conversions of maintained schools to academy status in Bradford and the likelihood of liabilities resulting from the conversion of schools holding deficit budgets.

Recommended –

The Schools Forum is asked to consider and to note the information provided in the report.

(Andrew Redding – 01274 432678)

247.    MATTERS CONCERNING SCHOOL AND ACADEMY BUDGETS

The Business Advisor (Schools) presented Document HH, which provided an update on matters related to school and academy budgets. It was explained that this is an interim update on the position of the conversion of maintained schools to academy status and the financial impact so far and what financial impact (in terms of risk of deficit) is immediately forecasted, following the request made by the Forum at the last meeting. A more detailed update will be provided to the next meeting (as we usually do within the Forum’s standard timetable). The report highlighted two key new pressures – the Apprenticeship Levy and the increase in the employer’s contribution for employees enrolled in the West Yorkshire Pension Fund (WYPF).

Given the fluidity of the position of school budgets and academy conversions, the Business Advisor asked Members whether a position statement should become a standing agenda item.

Members asked the following questions and made the following comments:

·         It would be helpful for further details of the lump sum element of the WYPS 2017/18 to be provided, especially for high needs providers who have a larger proportion of non-teaching staffing.

·         An academy member expressed his surprise at the cost of assessment by the WYPS upon conversion to academy. The Director of Finance explained that, as academies become separate employers, the volume of assets becomes more divided and this creates more work for the WYPF.

·         A member representing the Trades Unions stated that every defined benefit pension scheme went further into deficit during 2016 and so there is an inherent cost ‘risk’ within the WYPF in terms of the cost of employer’s contributions. Has an assessment of the position of the WYPF for 2016 (the basis of the next tri-annual value assessment) has been made? The Director of Finance responded to explain that the Local Authority is discussing this with the actuaries and that the actuaries have undertaken to refresh their value assessment more regularly.

·         That school and academy budgets are facing enormous financial pressure and the Schools Forum should receive regular updates as this position develops further.

·         Does the Authority’s Intended Use of Balances control allow schools to hold monies in support of future costs and budget protection? The Business Advisor (Schools) explained that it does, but that the key requirement is that schools are clear about how and why they are holding money in reserve for spending on these purposes.

·         That it would be helpful for an analysis to be presented on the funding streams that make up the Government’s “£40bn” of spending on schools; how this is distributed between grants and how much of this is allocated into Bradford, to inform further discussion on the position of school and academy budgets and opportunities for access to these funding streams.

Resolved –

(1)       That Document HH be noted.

(2)       That an update on the position of school and academy delegated budgets be made a standing agenda item in School Forum meetings.

(3)       That the values of the lump sum payments to be made by individual schools to the West Yorkshire Pension Fund be provided.

(4)       That analysis be presented on the funding streams that make up the Government’s “£40bn” of spending on schools; how this is distributed between grants and how much of this is allocated into Bradford, to inform further discussion on the position of school and academy budgets and opportunities for access to these funding streams.

LEAD: Business Advisor (Schools)