The Business Advisor (Schools) will present Document IM (and Appendices 1-4), which summarises the decisions and recommendations that the Schools Forum is asked to make in setting the allocation of the DSG and final formula funding arrangements for the 2018/19 financial year. The Forum will be asked to take decisions / make recommendations on the items listed under the following main headings:

 

·         Schools and Early Years Block De-Delegated Items

·         Schools Block - Growth Fund Allocations

·         The Central Schools Block

·         The High Needs Block

·         The Allocation of Available One Off Monies

·         Early Years Formula Funding and Pro-Forma

·         Primary & Secondary Formula Funding and Pro-Forma

 

Recommended –

 

The Forum is asked to make final recommendations and decisions on the allocation of the 2018/19 DSG and the one off monies available.

 

(Andrew Redding – 01274 432678)

 

 

The Business Advisor (Schools) presented Document IM (and Appendices 1-4), which summarised the decisions and recommendations that the Schools Forum was asked to make in setting the allocation of the DSG and final formula funding arrangements for the 2018/19 financial year. The Forum was asked to take decisions / make recommendations on the items listed under the following main headings:

 

·         Schools and Early Years Block De-Delegated Items

·         Schools Block - Growth Fund Allocations

·         The Central Schools Block

·         The High Needs Block

·         The Allocation of Available One Off Monies

·         Early Years Formula Funding and Pro-Forma

·         Primary & Secondary Formula Funding and Pro-Forma

 

The Chair of the Forum asked the Strategic Director, Corporate Services (Section 151 Officer) for his appraisal of the DSG position for 2018/19 as set out, especially the currently forecasted deficit position of the High Needs Block. The Director responded that although ideally, and as has been the case in previous years, each Block would itself balance in year, the DSG overall remains in surplus in 2018/19, and that the basis of the budget allocation is sufficiently certain, with controls and monitoring processes in place. As such, he would advise that this is a safe basis on which to agree the 2018/19 DSG allocation.

 

A Member commented that this is the first time we have set the DSG budget on the basis of a deficit within the High Needs Block, and if we are unable at this stage to be more positive in our forecasting we must take note and act on this. He added that the structural change programmes in 2018 are critical and the Authority must put in place sufficient officer capacity and capital funding to successfully deliver these programmes.

 

Resolved –

 

1.         SCHOOLS & EARLY YEARS BLOCKS “DE-DELEGATED ITEMS” 2018/19

 

Document IK, Appendices 1 – 3.

 

Resolved –

 

1.1   Schools Members representing maintained schools agreed the values of de-delegated funds on a phase specific basis:

 

a)    ESBD School Support (Primary only): agreed to cease de-delegation at 31 August 2018 providing for a de-delegated fund for 5/12ths on the same £app basis as in 2017/18.

 

b)   School Re-Organisation Costs (Safeguarded Salaries) (Primary & Secondary): agreed to continue de-delegation from both the primary and secondary phases for the actual cost of continuing safeguarded salaries.

 

c)    School Re-Organisation Costs (Sponsored conversions budget deficits) (Primary only): agreed to de-delegate from the primary phase at the 2017/18 per pupil value. The Schools Forum to be provided with monitoring reports where this provision is used.

 

d)   Exceptional Costs & Schools in Financial Difficulty (Primary only): agreed to continue de-delegation from the primary phase at the 2017/18 per pupil value.

 

e)    Costs of FSM Eligibility Assessments (Primary & Secondary): agreed to continue de-delegation from both the primary and secondary phases at the 2017/18 per FSM values, with contributions taken using FSM Ever 6 data.

 

f)     Fisher Family Trust (Primary only): agreed to continue de-delegation from the primary phase, recovering the cash value to match cost. The secondary phase and all primary academies will be invited to subscribe through the Local Authority (paying for this from their delegated budgets).

 

g)   Trade Union Facilities Time – Negotiator Time (All Phases): agreed to continue de-delegation from the early years, primary and secondary phases at the 2017/18 per pupil values. Referencing the identified review, the Forum is to be presented with a detailed benefit vs. cost analysis, which will inform the Forum’s view about arrangements going forward. The implementation of any amendments, and budget implications, if recommended by the Forum, will need to be discussed further.

 

h)   Trade Union Facilities Time – Health and Safety Time (All Phases): agreed to continue de-delegation from the early years, primary and secondary phases at the 2017/18 per pupil values. Referencing the identified review, the Forum is to be presented with a detailed benefit vs. cost analysis, which will inform the Forum’s view about arrangements going forward. The implementation of any amendments, and budget implications, if recommended by the Forum, will need to be discussed further.

 

i)     School Maternity / Paternity ‘insurance’ fund: agreed to continue de-delegation from early years (nursery schools) and primary phases at a value forecasted to afford the scheme for a full year.

 

j)     School Staff Public Duties and Suspensions Fund: agreed to continue de-delegation from the early years (nursery schools) and primary phases for a full year on the same total £app basis as 2017/18.

 

1.2 Schools Members representing maintained schools agreed the principles behind the management of the de-delegated funds listed in paragraph 1.1:

 

k)    Any over or under spending against these funds will be written off from, or added back to, the DSG’s de-delegated funds in 2019/20 on a phase specific, fund specific, basis i.e. if primary schools overspend in the maternity / paternity insurance scheme fund the value of the fund created through de-delegation in 2019/20 will need to compensate for this.

 

l)     These decisions set the position for the 2018/19 financial year only.

 

m)  That the relevant funds will be allocated according to the criteria set out in the autumn 2017 consultation.

 

 

2.         SCHOOLS BLOCK - GROWTH FUND 2018/19

 

Document IK Appendix 1 and Document IM Appendix 1.

 

All Schools and Academies Forum Members by consensus agreed:

 

2.1 The allocations from the Schools Block Growth Fund listed in Document IM Appendix 1 for existing expansions and bulge classes.

 

2.2 A planned budget of £1,014,000 within the Schools Block for in year growth allocations. This planned budget is split £314,000 Primary and £700,000 Secondary. All new in year allocations from the Growth Fund will be agreed by the Forum prior to confirmation with the receiving school (a requirement of the Regulations). Growth Fund allocations will continue as a standing Forum agenda item to enable this.

 

2.3 To use the criteria for the allocation of the Schools Block Growth Fund in 2018/19 as set out in the autumn 2017 consultation document, which are the criteria used in 2017/18. Allocations will be calculated on base £app values under national funding formula.

 

 

3.         THE CENTRAL SCHOOLS BLOCK 2018/19

 

Document IK Appendix 1.

 

All Forum Members by consensus agreed:

 

3.1 The allocation of the Central Schools Block:

 

a)    Schools Forum Costs: agreed to continue at the value of £10,000.

 

b)   School Admissions: agreed to continue at the 2017/18 value of £577,600 plus an additional £2,500 for the DfE’s specific addition to the Central Schools Block for year 9 admissions responsibilities.

 

c)    Education Services Grant Centrally Retained Duties: agreed to continue to passport to the Local Authority’s budget a value of £1,331,086 for the former ESG Centrally Retained Duties Grant (transferred into the DSG at April 2017) in support of the statutory duties delivered by the Local Authority on behalf of all state funded schools and academies.

 

d)   DSG Matched Contribution to School Improvement (historic commitment): agreed to retain the benefit of the DfE’s one off funding, in 2018/19 only, of the historic commitment of £439,729 within the Central Schools Block to enable the transfer of current High Needs Block funded activity as set out below.

 

e)    Central Schools Block Headroom to enable the transfer of High Needs Block activities: agreed that this headroom, £574,880, is allocated to enable the transfer of the majority of budgets that are currently met by the High Needs Block where the nature of the expenditure is covered by the Regulations, which govern the purposes for which Central Schools Block monies can be used i.e. statutory and regulatory duties for all maintained schools and academies regarding the exclusions of pupils and school attendance. The budgets are: Youth Offending (£47,000); Behaviour Support (£160,000), ESBD Statutory Functions (£192,000) and Travellers Children (£389,000). A balance of £213,120 of these funds remains funded by the High Needs Block in 2018/19.

 

For information only - the cost of copyright licences for primary and secondary schools and academies is met from the Central Schools Block. This is not a matter for decision for the Schools Forum as the DfE negotiates the price and top-slices our DSG. The costs for early years and high needs providers are charged within our model to the respective blocks.

 

 

4.         THE HIGH NEEDS BLOCK 2018/19

 

Document IM Appendix 3, Document II, Document IL Appendix 3.

 

All Forum Members by consensus agreed to:

4.1 Make financial provision for the allocation of places in Bradford-located settings that is presented in Document IM Appendix 3.

 

4.2 Forecast spending on the basis that the SEND Review, as outlined in the presentation made under agenda item 6, and subject to the outcomes of consultation, will reduce direct spending on services within the High Needs Block by £0.8m (part year impact from 1 September 2018) and will increase spending on Early Years DSP places by £0.6m in 2018/19. This forecast may be amended by the final decisions on the SEND review, which will be taken following the current consultation.

 

4.3 Retain the existing structure of the High Needs Block Place-Plus Funding Model with the amendments set out in the autumn 2017 consultation:

 

a)    The cessation, from 1 September 2018, of the High Needs Block’s direct funding of Top Up (the Plus element) for the placement of pupils in alternative provision settings without EHCPs that remain on the roll of mainstream schools. The settings within the scope of this amendment are the primary behaviour centres and Bradford Central PRU. At 1 September 2018, the place-funding value of these settings is confirmed at £10,000.

 

b)   The full establishment of Bradford’s Place-Plus model for the funding of early years DSP provision, replacing previous temporary methodologies that have been in place for the funding of Children’s Centre Plus provisions.

 

4.4 Support the Authority’s work towards the cessation of the High Needs Block’s direct funding of Top Up (the Plus element) for the placement of pupils in District PRU. This proposal is captured within the wider SEMH review. The Forum will continue to receive updates on the SEMH review and on the development of this proposal specifically.

 

4.5 Protect SEN Floor allocations for mainstream primary and secondary schools and academies at their 2017/18 financial year values i.e. schools and academies currently in receipt of the SEN Funding Floor will not receive less via this factor in 2018/19 than they did in 2017/18.

 

4.6 Support meeting the funding gap in the overall High Needs Block in 2018/19, and to support control of the growth of top up costs going forward, by reducing the rates of Top Up in the HNB Funding Model for all Place-Plus calculated budgets by 1.5% with the values of Top Up for each Range reduced by this %. This sets the Minimum Funding Guarantee for special schools at between 0% and -1.5% (understanding that the value per place in special schools is retained at £10,000).

 

4.7 With reference to the currently projected over spending in the High Needs Block in 2018/19, that Forum Members note that:

 

·         there are mitigating factors (that may deliver further savings) but also that there are risks of additional spending & savings not being realised as forecasted.

·         the majority of the High Needs Block’s reserve may need to be deployed in 2018/19.

·         the High Needs Block may hold a cumulative deficit balance at the end of 2018/19.

 

4.8 With reference to the projected over spending within the High Needs Block in 2018/19, that Forum Members note the Strategic Director of Corporate Services’ (Section 151 Officer’s) assessment of the planned DSG allocation, which is recorded in the minutes of the meeting.

 

4.9 The position of the High Needs Block be closely monitored and regularly considered by Forum during 2018.

 

 

5.         THE ALLOCATION OF ONE OFF MONIES (DSG UNDERSPEND)

 

As highlighted in Document IJ.

 

All Forum Members by consensus agreed:

 

5.1 That the £2.989m within the Schools Block continues to be committed by previous decisions taken by the Schools Forum:

 

a.    Growth Fund Financial Support for Beckfoot Upper Heaton Academy £2.339m

 

b.    Deficit of a Secondary School Converting to Academy Status £0.650m

 

5.2 The retention of Schools Block under spend, as set out in Document IJ, as follows:

 

·         £0.716m retained for the purposes of supporting Growth Fund costs especially for the costs following the establishment of new free school provision anticipated during 2019/20.

 

·         £0.979m retained as reserve.

 

5.3 The allocation & retention of Early Years Block under spend, as set out in Document IJ, as follows:

 

·         £0.606m, estimated, allocated into the 3&4 year old Early Years Single Funding Formula in 2018/19 to uplift the universal setting base rate by £0.09 to £4.12 per hour.

 

·         £0.606m, estimated, retained to be allocated into the 3&4 year old Early Years Single Funding Formula in 2019/20 to uplift the universal setting base rate by an estimated £0.09 to £4.11 per hour.

 

·         £0.311m retained as reserve.

 

5.4 The allocation & retention of High Needs Block under spend, as set out in Document IJ, as follows:

 

·         £0.521m, representing the value of one off monies allocated by the Forum into the 2017/18 planned DSG allocation (under option 4 January 2017), continued to be allocated in 2018/19. This reduces the forecasted overspending from £1.974m to £1.453m.

 

·         £1.110m retained at this stage and earmarked to be allocated to balance the 2018/19 High Needs Block should this Block be overspent at the end of the financial year.

 

 

6.         EARLY YEARS FORMULA FUNDING AND PRO-FORMA 2018/19

 

Document IL Appendix 5, Document IM Appendix 4 and Document IL Appendices 2a, 2b, 2c.

 

Schools and Academies Members (by consensus on a phase specific basis) agreed:

 

6.1 The structure of the Early Years Single Funding Formula (EYSFF), the detailed workings of which were set out in the Technical Statement, which formed part of the autumn 2017 consultation documentation, with the amendment to the proposal to adopt a monthly starters and leavers counting arrangement (set out in Document IM Appendix 4). In summary, to:

 

a)    Continue the policy of ring-fencing of the Early Years Block.

 

b)   Use the current technical, administrative, payment and counting arrangements, and timetable, as set out in the current 2017/18 Technical Statement i.e. retain the current termly headcount basis for the formula rather than moving, as originally proposed, to monthly starters and leavers counting.

 

c)    Simplify the processes for PVI providers, which will include no longer publishing a ‘hard copy’ pre-calculated Confirmed Indicative Budget for PVI providers in March. Instead, we will begin monthly payments based on the latest confirmed position and we will enable providers to use a ready reckoner to estimate funding.

 

d)   Continue to pass through the DSG funding rate for:

 

·         The 2 year old free entitlement. This will be £5.20 per hour and is the same rate as 2017/18. The simple universal rate of funding per hour for all types of provider, without supplement, will be retained.

 

·         The Early Years Pupil Premium (required by Regulations)

 

·         The Disability Access Fund (required by Regulations)

 

e)    Continue & increase the Early Years Block’s contribution to Early Years SEN Inclusion funds. Early Years Inclusion monies to be 100% funded from the Early Years Block from 1 April 2018. The 2018/19 value of the fund will be £800,000.

 

f)     Establish a Universal Base Rate for the 3 & 4 year old offer, as required by the DfE, with this overridden for:

 

·         Nursery Schools – with the allocation of the specific Maintained Nursery School factor, meaning that the funding rates for each nursery school (base and deprivation) will continue to be retained at their 2016/17 values.

 

·         PVI providers and nursery classes – through the allocation of additional one off monies on a transitional / temporary basis. PVI providers and nursery classes will be funded at the same enhanced base rate value.

 

g)   Continue the nursery school sustainability lump sum supplement using the current methodology, which now brings the 30 hours extended entitlement into the calculation.

 

h)   Continue our current deprivation supplement within the 3&4 year old EYSFF, using the 3 year average of Index of Multiple Deprivation (IMD) data, calculated at 9.5% of EYSFF (excluding one off monies).

 

i)     Not introduce any further supplements in 2018/19. To keep this position under review.

 

j)     Continue to charge the Early Years Block, on a pro-rata basis, for the cost of copyright licences. The 2018/19 value is £34,374.

 

 

7.         PRIMARY AND SECONDARY FORMULA FUNDING AND PRO-FORMA 2018/19

 

Document IL Appendix 4, Document IM Appendix 2 and Document IL Appendices 1a, 1b, 1c, 1d and 1e.

 

Schools and Academies Members (by consensus on a phase specific basis) agreed:

 

7.1 The structure of the Primary & Secondary Funding Formula, the detailed workings of which are set out in the Pro-Forma Document IL Appendix 4. In summary, to:

 

a)    ‘Move to National Funding Formula’ (NFF) at April 2018, thereby using the NFF announced on 14 September 2017 to calculate individual formula funding budget shares for both the primary and secondary phases.

 

b)   Set the value of Minimum Funding Guarantee (MFG) at + 0.4%.

 

c)    Set the value of the Ceiling at + 3% per pupil (+ 3.0% cap, 100% scaling).

 

d)   Fully implement the £3,500 (primary), £4,800 (secondary) and £4,042 (all-through) minimums for eligible schools, discounting Building Schools for the Future and Business Rates from the calculation of these minimums.

 

e)    Continue our current formulae for the allocation of both split sites and pupil mobility.

 

f)     Continue to pass through the specific BSF DSG affordability gap values using our current method but with an adjustment to ensure that the amounts passed on to academies by the ESFA on an academic year basis are equivalent to the amounts that the Authority requires academies to pay back on a financial year basis.

 

g)   Calculate notional SEN for primary and secondary schools and academies on the basis set out in the autumn 2017 consultation (allowing the impact of national funding formula to flow into this). To benchmark our approach against that in other authorities under NFF, using the 2018/19 pro-forma information, to determine how our notional SEN calculation should develop from April 2019.

 

7.2 The value of the DSG’s contribution to the Building Schools for the Future affordability gap for 2018/19 set at £6,969,574, which is the 2017/18 value plus an estimated 3.8% RPIX and adjusted for 7.1 g) above. This contribution will be split between relevant schools and academies on the same % basis as in 2017/18 (based on the school’s unitary charge value). For Secondary schools and academies, this contribution is expresses as a formula factor. For Special schools and academies, this contribution is managed as a central item within the High Needs Block.

 

For Information – please note that the cost of business rates shown in the Pro-forma is still estimated and is subject to change during the year, including following the conversion of maintained schools to academy status.

 

 

9.         ANY OTHER BUSINESS (AOB)

 

No resolution was passed on this item.

 

 

10.       DATE OF NEXT MEETING

 

The next meeting of the Schools Forum is Wednesday 17 March 2018.

 

 

 

 

FROM:                        Parveen Akhtar (City Solicitor)

                        City of Bradford Metropolitan District Council

 

Contact Asad Shah:  01274 432280

Committee Secretariat

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