Agenda and minutes

The Chair welcomed members to the meeting of the Forum and introductions were made.

Apologies for absence were received from Tony Martin, Dawn Strachan, Colin Short and Alison Naismith.

To approve as a correct record the Minutes of the meeting held on 21 May 2015.

The minutes of the meeting held on 21 May 2015 were approved as a correct record.

To discuss any matters arising.

Schools Formula Funding – National Data (Minute 12 of 16 of 21 May 2015 meeting)

With regard to Minute number 12 from the meeting held on 21 May 2015 regarding the investigations into other Local Authority’s use and funding level applied to the Looked after Children (LAC) formula factor, it was confirmed that they had not yet concluded and Peter Hughes would provide an update at next meeting.

To consider a report of the Corporate Director for Corporate and Support Services.

The report provides Schools Forum members with an executive summary report of the business matters included on the main agenda.

The Forum is recommended to note the executive summary and offer any views, comments and feedback to be considered for future Executive summary reports.

Officer Contact: Peter Hughes on 0161 474 3947 or email peter.hughes@stockport.gov.uk

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) providing the Forum with an executive summary of the business matters included on the main agenda.

RESOLVED – That the report be noted.

To consider a report of the Corporate Director for Corporate and Support Services.

The report provides Schools Forum members with detail of the final 2014/15 Schools Budget year-end reported out-turn position.

Schools Forum members are asked to note the report.

Officer Contact: Peter Hughes on 0161 474 3947 or email peter.hughes@stockport.gov.uk

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) providing members with detail of the final 2014/15 Schools Budget year-end reported out-turn position.

It was reported that the final net reported out-turn position to senior management was a year-end surplus of £0.917m. The key year-end variances that provided the position included:-

·         2 year old offer (surplus £0.560m) - participation below national target levels (national picture) and trajectory funding not all deployed in year;

·         3 and 4 year old offer (surplus £0.198m) – not all children take up full 15hrs per week entitlement;

·         Maternity costs (deficit £0.171m) – 20% increase in annual costs;

·         School contingency (deficit £0.210m) – mainly attributable to large pupil population growth in primary sector;

A number of central budget holders presented requests to carry-forward their year-end reported surplus balance totalling £0.605m and Senior Management Team considered and approved requests totalling £0.595m.The revised net year-position £0.322m (i.e. after accounting for approved carry-forward requests) had been transferred into the General DSG Reserve and would be deployed to support the 2015/16 and 2016/17 budget setting process.

The short-medium term sustainability of the Schools Budget was still a key issue to be addressed by the Local Authority and Schools Forum in the near future and the outcomes of any national review/changes to DSG formulaic distribution would be critical to such plans.

RESOLVED – (1) That the report be noted.

(2) That the Local Authority considers an update on DSG reserve levels and any other funding issues for future training/development sessions for Schools Forum members.

To consider a report of the Corporate Director for Corporate and Support Services.

The report provides Schools Forum members with the outcome of the “Excessive surplus balance control mechanism” process applied to the final School Balances reported at 31 March 2015.

The Forum is recommended to note the report and agree a method of redeploying clawed-back funds.

Officer Contact: Peter Hughes on 0161 474 3947 or email peter.hughes@stockport.gov.uk

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) providing members with the outcome of the “excessive surplus balance control mechanism” process applied to the final School Balances reported at 31 March 2015.

It was reported that the total level of surplus school balances was £12.658m and that the claw-back system was applied to any school reporting a year-end surplus exceeding the locally agreed 12% threshold level. A total of 22 schools reported a year-end surplus balance exceeding the locally agreed threshold level which provided for a claw-back level totalling a maximum of £0.995m.

All schools were formally written to in May 2015 advising that their individual school balance exceeded the permitted threshold level as prescribed in the Scheme for Financing Schools document and would be subject to the appropriate claw-back by the Local Authority. All schools were given the opportunity to present to the Corporate Director for Services to People, any matters to be considered as “exceptional circumstances” and thus request that the claw-back not be applied. One of the following actions was taken for each school:-

·         School excessive surplus balance was committed to a significant capital project led by the school, school would retain full balance and were expected to deploy as per return submission;

·         School excessive balance was committed to a significant capital project commissioned by the Local Authority – the excessive balance would be subject to claw-back and would be set aside in a specific school reserve;

·         Claw-back applied as prescribed – all monies would be redistributed as per Local Authority decision in consultation with Schools Forum;

·         Further dialogue between the school and Local Authority was required.

The following comments were made/issues raised:-

·         Concerns were raised surrounding the transparency of the process and the lack of dialogue between the schools subject to claw-back and the Local Authority;

·         The calculation could be set against the final income of a school as opposed to the initial allocation to account for in-year funding streams;

·         The claw-back mechanism was agreed by Schools Forum not the Local Authority and the process applied was in accordance with the updated Scheme for Financing Schools document as approved by Schools Forum in March 2014;

·         All schools were required to fill out the same template (as per recommendation form Internal Audit following review of previous year process) to set out how they intended to spend the full surplus balance reported at the close of the annual accounts;

·         Over half of the forms were returned incorrectly (i.e did not account for the full balance) and the Local Authority were giving those schools chance to resubmit their response before a decision was made on whether the claw-back mechanism should be applied;

·         No secondary schools had reported an excessive surplus budget due to low population figures and a number had reported a deficit budget;

·         SMT had considered and discussed feedback from schools following the issuing of original letters to schools informing them of decisions following application of the claw-back process and it had been decided that all excessive surplus balances reported would now be clawed-back in full. However any school not accounting for the full surplus balance on the original template would be invited to re-submit a template accounting for the full balance. All schools would then be able to draw down 100% of their balance subject to claw-back provided evidence is provided of expenditure incurred in relation to items listed on the revised template and in accordance with the timeline stated and agreed with the Local Authority.

RESOLVED – (1) That the report be noted.

(2) That the Local Authority provide updated letters to schools before end of summer terms.

(3) That a report be submitted to the Forum detailing schools reporting a budget deficit.

To consider a report of the Corporate Director for Corporate and Support Services.

The report provides Schools Forum members with details of the sub-group established to undertake a review of all Schools Budget activity currently financed via the deployment of the dedicated schools grant (DSG) and an outline of initial plans/actions agreed.

Schools Forum members are asked to note the report.

Officer Contact: Peter Hughes on 0161 474 3947 or email peter.hughes@stockport.gov.uk

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) outlining the details of the sub-group established to undertake a review of all Schools Budget activity financed via the deployment of the dedicated schools grant (DSG) and an outline of initial plans/actions agreed.

The 2015/16 Schools Budget constructed and presented to the Corporate Director for Services to People for approval utilised c. £0.8m of DSG central reserve funding to set a balanced budget. The need to use these reserves to balance the original 2015/16 Schools Budget outlined a requirement to address a short-medium term sustainability issue. Furthermore the 2015/16 Schools Budget had further potential to increase the reliance on the deployment of DSG central reserve monies as additional cost pressures emerged including additional SEN places being required at Lisburne School from September 2015.

The first meeting of the DSG review group established to undertake a review of the total schools budget finances by the DSG was held on 14 May 2015. The level of DSG reserve projected to remain unallocated (i.e. £0.691m) at 31 March 2016 was not at a sufficient level to balance the 2016/17 budget and retain all current 2015/16 base budget costs. Therefore further savings would be required in 2016/17 to align costs within the projected total available resources. Initial short term solutions identified included (at an estimated reduced cost of £0.4m):

·         Early Years funding formula (reduction to base rate funding);

·         PRUs (realignment of resources relating to vacant places);

·         Inclusion (reduce service provision); and

·         Extended Schools (cease support).

The second stage of the DSG review was focused on the longer term aims, strategy and plans for deployment of the DSG that provided a sustainable, effective and efficient system that supported all Stockport pupils in their ambitions to achieve their desired outcomes. The next stages of this work would include:

·         Activities – Assessment of School Place planning (including review of SENPanel and system of allocation);

·         VfM of Centralised support services – Assessment and review of service impact, support levels required and the most effective service delivery model;

·         Post-16 – Assessment of provision, unit costs and service delivery;

·         SEND Review – Full review of SEND provision (i.e. Mainstream provision/expectations and place provision and mapping of Resourced Provision bases and Special Schools); and

·         Alignment to the Stockport Family approach.

The following comments were made/issues raised:-

·         The need for high needs support in mainstream schools;

·         The impact of pupil movement from the maintained to PVI sector for 3 and 4 year olds;

·         The demand for inclusion services and special educational needs provision is growing;

·         Mainstream schools had transformed to be inclusive;

·         The need to assess the value for money of SEN provision as opposed to cutting services;

·         The Local Authority should bid for further capital funding for SEN provision.

RESOLVED – (1) That the report be noted.

(2) That members of Schools Forum be notified of the date for the next DSG Review Group before the end of the summer term.

To consider a report of the Corporate Director for Corporate and Support Services.

To provide Schools Forum members with details of the Schools Forum self-assessment, undertaken by Local Authority officers with the Chair and Vice-Chair of the Schools Forum.

The Forum is recommended to note the report and vote on the proposed key areas/actions detailed at section 3.3.

Officer Contact: Peter Hughes on 0161 474 3947 or email peter.hughes@stockport.gov.uk

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) outlining the Schools Forum self-assessment undertaken by Local Authority officers with the Chair and Vice-Chair of Schools Forum.

It was agreed at the meeting of Schools Forum on 21 May 2015 that Local Authority officers with the Chair and Vice-Chair would complete the self-assessment toolkit that was provided alongside the updated Operational and Good Practice Guide book and report back to Schools Forum members accordingly.

The following comments were made/issues raised:-

·         Letters to be sent to members who fail to attend at least two meetings per cycle;

·         Non-attendance does not apply when a substitute is sent;

·         The difficulties associated with canvassing each sector due to the agenda only being published the week before the meeting;

·         Members could canvass the views of their sector for upcoming items by referring to the Schools Forum annual schedule of business;

·         The pre-agenda meeting could be better utilised by advertising what could be discussed during it;

RESOLVED – (1) That the report be noted.

(2) That the actions put forward by the Local Authority officers, Chair and Vice-Chair be approved.

To consider a report of the Corporate Director for Corporate and Support Services.

The report provides members with details of the scheduled meetings for the 2015/16 academic year the proposed forward planner of Schools Forum business.

The Forum is invited to consider the detailed recommendations in the report.

Officer Contact: Peter Hughes on 0161 474 3947 or email: peter.hughes@stockport.gov.uk.

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) updating members with details of the scheduled meetings for the 2015/16 academic year and the proposed forward planner of Schools Forum business.

RESOLVED – That the report be noted.

To discuss any other business.

A representative of the Corporate Director for Corporate and Support Services reported that:-

·         There had been an on-going non-attendance issue with Primary Governor Representatives. 4 out of the 5 representatives were contacted regarding the issue and as such had all resigned leaving 4 vacancies. Pam Dunham from Services to People would facilitate the formal election process and had 2 potential candidates, however Schools Forum members were asked to consider if they knew of anyone who could be nominated;

·         Both Helen Hilton and Renee Dickens’ terms of offices were due to end in August and September respectively and the Local Authority would write to the appropriate groups represented by Helen and Renee shortly to identify new representatives or seek support of a further terms membership;

·         F40 had submitted final proposals for a new national funding formula. £350m of DSG national funding envelope was being awarded to Local Authorities for the 2016/17 financial year; however Stockport would not be receiving any additional funding due to a flaw in the method of applied to determine distribution. F40 had requested that Local Authority’s and Schools actively lobby their MPs to ensure the focus of the work being undertaken was highlighted. Members requested that Peter Hughes draft a report to explain the issues with the current national funding formula. Schools Forum supported the F40 work and agreed that the Local Authority should circulate the F40 letter (updated as appropriate) to all school head teachers and Chair of Governors to raise profile and seek support/action;

·         New policies implemented as part of Greater Manchester devolution by central government would result in new powers/responsibilities delegated to the Greater Manchester Combined Authority. Manchester were leading on behalf of the group and exploring the possibility of DSG funding being included within the program.

RESOLVED - That the next meeting of the Schools Forum be held on Tuesday 22 September 2015 at Castle Hill High School, The Fairway, Offerton, with an optional question and answer session on reports to be considered to be held prior to the commencement of the meeting at 3.45pm.