24 June 2015

Jan Powley and Kim George

Finance Administrators and Bursars Group

Coffee and Registration Introduction LMS Team Update Maternity Recompense School Funding Best Practice Leasing Coffee Break FPS Advance.net

Agenda

All schools – complete the recompense form available on the grid

Confirm as soon as a back to work date is known Scheme 1 Schools – no change to system Recompense via monthly income allocation Scheme 2 Schools – automatic electronic system Automatic generation of recompense Periods 2 and 3 Childcare vouchers

Maternity Recompense

School FundingJan Powley

Current spending on schools in England relatively protected

3.0% real terms rise in expenditure from 2010 to 2014

A number of reforms made to the funding system – PPG, simpler funding formulae

Even before PPG a substantial level of funding targeted at deprivation

School Funding

In 2010-11 funding per pupil was 35% higher amongst the most deprived set of primary schools than amongst the least deprived

41% higher amongst the most deprived secondary schools than the least deprived

By 2014-15 the figures have increased to 42% and 49% respectively as a result of PPG

School Funding

Squeezes on public sector pay mean actual costs for schools were likely to have increased by less than inflation

This may explain why the school workforce has not fallen since 2010

450,000 teachers – number has held steady

Increase in TA’s from 210,000 to 240,000 by 2013

School Funding

However, significant cost pressures are now emerging

Overall pupil numbers growing by 7% 2016-2020

Cost of employing staff will rise NI increases due to the end of contracting out Increased employer pension contributions Upward pressure on public sector pay levels if

private sector earnings continue to recover Costs to schools estimated to increase by 11.7%

between 2014-15 and 2019-20

School Funding

Each LA receives DSG which it has to spend on schools

Can retain some money to spend on central services for all LA maintained schools

LAs allocate the vast majority to schools using a locally-determined formula

School Funding changes

Year Description of Reforms

2010-11 Specific grants streamlined into DSG

2011-12 Introduction of PPG

2012-13 More responsibilities devolved to maintained schoolsExtension of PPG to cover pupils eligible for FSM in the past six years – “Ever 6”

2013-14 Introduction of simpler local funding formulaePPG level set higher for primary schools

2014-15 PPG increased by more for primary schools

2015-16 Reforms to allocation of grant to LA’s

Changes to School Funding System

Since 2010 a cash-terms freeze in all existing school funding per pupil

Creation of PPG Net result is that the most deprived

schools have seen the largest increases in funding

Smaller increases in less deprived schools In some cases falls in funding per pupil

2010 Spending Review Settlement

PPG initially set at £488 eligible for FSM Expanded to FSM6 – Ever 6 Higher level to primary schools £1,320 Secondary £935 Differentiation justified on the basis

that early intervention is more effective Improve attainment of disadvantaged

pupils ready for secondary school

Policy Background

Grants to LAs (DSG) not based on an explicit formula since 2004

Allocations based on % increases in funding per pupil until the cash freeze

From 2015 a minimum per-pupil funding formula for DSG

If an LA receives less than the minimum their grant is topped up

Luton receives more so its grant is frozen in cash terms

Government to introduce a national funding formula ‘when the time is right’

Policy Background

Until 2013-14 LAs used a wide array of different and historical factors in their own formulae to allocate funding to schools

Complex and arbitrary system All LAs now use simplified local school

funding formulae Has reduced dependence on out of date

factors and increased transparency Used by EFA to fund academies Central services now passed to individual

schools/academies – can be de-delegated for maintained schools at discretion of schools forum members

Funding for schools

School Budget Share

Basic entitlement

Deprivation

Looked After

Children

Mobility

Prior Attainment

English as an

Additional Language

6th FormLump Sum

Rates

London Fringe

Split site

Private Finance Initiative

Sparsity

School budget share funding factors – the funding formula

Pupil Led (80%)

Institutional (20%)

5

Population is rapidly expanding – primary school population 8% between 2010 and 2014

Between 2016 and 2020 5% rise forecast in primary and 10% in secondary

Significant pressures on the cost of staff Upward pressure on public sector pay Pension and NI costs 11.7% - 16.0% (assuming OBR’s

assumptions for likely growth in public sector earnings

Future Challenges

If cash-flat continues real terms cut of 9% per pupil

Rising to 12% if OBR’s public sector pay assumptions are factored in

Future Challenges

Revisions to SFVS – subject of consultation about 3 additional questions

2 additional questions are to be added Both are additions to Section A – The

Governing Body and School Staff Question 8 – Have your pay decisions been

reached in accordance with a pay policy reflecting clear performance criteria?

Best Practice

Question 9 – Has the use of professional independent advice informed part of the pay decision process in relation to the headteacher?

Frequently occurring “in part” responses Question 1 – Does the Governing body have

adequate financial skills among its members to fulfil its role of challenge and support in the field of budget management and value for money?

Best Practice

Question 15 – Does the school maintain its premises and other assets to an adequate standard to avoid future urgent need for replacement?

Question 23 – Does the school have an appropriate business continuity or disaster plan, including an up to date asset register and adequate insurance?

Monitoring of the SFVS Action Plan Review and report back to Governors

Best Practice

Copyright Licenses- purchased centrally on behalf of all state funded schools in England

Christian Copyright Licensing International (CCLI) – new for 15-16

Copyright Licensing Agency (CLA) Education Recording Agency (ERA) Filmbank Distributors Ltd (for the PVSL) (Public Video

Screening Licence) Mechanical Copyright Protection Society (MCPS) – new for

15-16 Motion Picture Licensing Company (MPLC) Newspaper Licensing Authority (NLA) Performing Rights Society (PRS) – new for 15-16 Phonographic Performance Limited (PPL) – new for 15-16 Schools Printed Music Licence (SPML)

Best Practice

https://www.gov.uk/copyright-licences-information-for-schools

While the Department for Education covers the administration of these licences, schools are still responsible for making sure staff members follow the terms and conditions of the licences.

Schools may need additional licences, e.g. for church music, audio music or ordnance survey maps. If this is the case, schools need to purchase these additional licences separately.

You can find more information on the copyright and schools website.

Best Practice, Guidance and Advice

Changes to Scheme for Financing Schools Procurement – quotations and tendering – do

not break the limit for embarking on a tendering process

Schools Forum meets on 15 July Bring to the attention of your Governing Body Roles of the DfE, LA’s and schools in relation

to financial assurance and cost reduction

Best Practice, Guidance and Advice

Budget monitoring spreadsheet for capital Use of 73 and 75 codes APT&C Pay Scales SCP Point 5 ceases to exist on 01 Oct 15 Purchase card limits Capital Balances Transfers for Scheme 2

schools Pupil Premium Allocations

Best Practice, Guidance and Advice