To discuss any matters arising.
Minutes:
A member who was unable to attend submitted a number of matters for which they were seeking clarification in relation to 2014/15 Schools Balances – Excessive Surplus Balance Control Mechanism (Minute 7 of 12 of 9 July 2015 meeting), and the Chair agreed that these could be put to the meeting. The Director for Education responded to the points as summarised below:-
· The accuracy of the minutes relating to the claw-back mechanism was questioned and it was suggested that points 5 and 7 of the comments did not align.
Clarification was sought on the accuracy of the detail of the claw-back mechanism and point 5 of the comments outlined the original issue, whereas point 7 outlined how SMT had reacted to the issue and it was believed that these points were not at odds with each other and it was accepted by Schools Forum members attending that point 7 clearly outlined the position of the LA in this matter.
· The typographical/clerical errors had not been taken into account by the Local Authority when assessing the submitted returns and there seemed to be a mood of punishing schools.
It was reported that the issue was inaccuracies in the calculations as opposed to typographical errors and 50% of the returns were incorrect. The Local Authority had to demonstrate that it was applying the claw back system as agreed by School Forum and stated in the Scheme for Financing Schools document and as had been stated in note 7 of previous meeting minutes, schools that had not correctly submitted their original template were now being given the opportunity to resubmit. SMT had requested that the schools were given another opportunity to present an accurate form as requested originally.
· The full excessive surplus had been retained by the Local Authority as opposed to the portion of the surplus that was unaccounted for, which was believed to not have been made clear at the meeting and was not authorised by Schools Forum.
It was agreed that it was made clear that the full excessive surplus balance would be clawed back as per the Scheme for Financing Schools document (Section 4.2) and that this was a Local Authority decision that did not require Schools Forum authorisation. It was confirmed that all excessive funds over 12% would be clawed back, but could be drawn down to allow access to the funding.
· There had been no response to the suggestion that 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.
All local authorities were permitted to operate an excessive school surplus balance control mechanism if they chose to do so, following agreement with Schools Forum. This was agreed following due consultation in autumn 2013 and the Scheme duly updated from April 2014.The Scheme for Financing Schools document section 4.2.3 clearly stated the method of calculation to determine if a school is deemed to be reporting an excessive surplus balance at year-end.
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 reported that the national range was from £211 to £3,000 per pupil, with Stockport providing £334.
Sefton Metropolitan Borough Council and Lancashire County Council both provided £1,000 per pupil, and Salford City Council provided up to £2,339. Reasons for the variation included some Local Authorities had continue to apply the same amount as valued from an old formula, as well as others providing the same level of funding as Free School Meals pupils.
Bury Metropolitan Borough Council, Manchester City Council and Cheshire West and Chester Council all provided £0 as they believed the Pupil Premium Grant provided a sufficient level of support.
2014/15 Schools Balances – Excessive Surplus Balance Control Mechanism (Minute 7 of 12 of 9 July 2015 meeting)
With regard to Minute number 7 from the meeting held on 9 July 2015 regarding schools reported a budget deficit, it was reported that the Scheme for Financing Schools preludes schools from setting a planned deficit budget without approval from the Local Authority (LA).
The LA had approved deficit budgets from St Anne’s RC High School, Rose Hill Primary School and Tithe Barn Primary School.
Schools Budget 2014/15 Final Out-Turn (Minute 6 of 12 of 9 July 2015 meeting)
With regard to Minute number 6 from the meeting held on 9 July 2015 regarding Dedicated Schools Grant Reserves (DSG), it was reported that the reserve was established in 2011/12 from DSG year-end underspend, Offerton School closing balances and other ad-hoc income. £0.8m had been used to balance the 2014/15 budget, and the projected balance as of 31 March 2016 was £0.691m.