Central Bedfordshire Council Schools Termly Finance Seminars 15th November 2011

1. Central Bedfordshire CouncilSchools� Termly Finance Seminars15th November 2011 Rufus Centre Flitwick

2. Agenda 9.15 Welcome and Introductions � Gina Chandler 9.20 Department For Education Consultations � Dawn Hill 9.40 Invest to Save � Francesca Ricci 9.50 School Balances and Licensed Deficits- Gina Chandler 9.55 Forecast Outturn � Gina Chandler 10.00 Schools Financial Value Standard � Gina Chandler 10.05 Other Issues � Gina Chandler 10.10 Questions & Answer session 10.15 Tea & Coffee Break 10.30 Workshop on � close of schools accounts & Forecast Outturns �Gina Chandler and Gezim Leka

3. DfE Consultations Academies Funding Transfer 2011/12 and 2012/13 : proposals to revisit the two year local government settlement for 2011/12 and 12/13, four week consultation ended 16/08/2011 School Funding Reform : proposals for a fairer system issued 19/7/11, ended 11/10/11. 3. Schools Finance (England) Regulations 2012 : issued 11/10/1. Current finance regulations expire 31/3/12; no major changes. Responses by 11/11/11. 4. 16-19 Funding Formula Review : issued 6/10/11 Move away from �payment per qualification� to introduce simpler system at the level of the learner. Responses by 4/1/12.

4. Academies Funding Transfer (known as LACSEG) LA Formula Grant � RSG Consultation with all Unitary and County Authorities providing education services Implemented to fund the estimated payments for additional responsibilities for those services a maintained school receives without charge 17 currently (5 Lower, 8 Middle, 4 Upper) Possibly 36 by end of financial year

5. Academies Funding Transfer Consultation is a �reconsideration� of the deduction to the RSG Previous �top slice� �595K. Subject of legal action by a group of authorities who feel is excessive and imposed with no reference to the number of Academies in each LA � based on a national approach

6. Academies Funding Transfer Consultation includes a retrospective reduction in the 11/12 financial year and further reductions 12/13.

7. Responsibility for Academies Include: School Improvement Asset management (other than strategic planning) including health and safety Education Welfare (excluding prosecutions) Redundancy costs Internal and External Audit Financial Assurance Procurement Advice and Compliance Teachers pension returns and LGP Scheme administration

8. Academies Funding Transfer Funding for the following functions remain within the LA within its Formula Grant and would not be delegated to schools or passed to Academies

9. Services that remain LAs responsibility for ALL Schools Include: Mainstream home to Schools Transport Strategic capital and school place planning Home Educated children Management of PFI contracts and landlord premises functions Strategic Planning of Children Service Provision for Disabled Children�s Education Psychology Service Statutory Assessment procedures SEN Monitoring and Quality Assurance

10. Academies Funding Transfer Consultation is asking Do the LA agree with the split of functions between the two blocks and if not what changes should be made Should the LA LACSEG be moved to a national formula rather than using LA S251 Should the methodology be changed to actual pattern of where Academies are located

11. Consultation on School Funding Reform DfE consultation on fairer school funding arrangements Two part consultation, first one closed on 25th May, second on 11th October 2011 Aim is to narrow the gap in attainment between deprived and non-deprived pupils, ensuring all funding for all pupils is fair. Should enable maintained schools and academies to be funded on broadly comparable basis.

12. Consultation on School Funding Reform Applies to England only No changes proposed for 2012/2013 It is about the formula for allocating some �35bn. of annual school revenue funding across 150 LA�s with education responsibilities. For the first time DfE is talking about producing a budget for each school (except special schools)

13. Consultation on School Funding Reform �35bn. Allocated via Dedicated Schools Grant (DSG) Currently to each LA based significantly on what they chose to spend on schools in 2005/06. Current allocation methodology clearly seen as unfair. Relates to Early years to Year 11, not to post 16 at this stage. 95% in Central Bedfordshire ends up in delegated schools budgets (inc. academies) Also funds some central school services, e.g. PRU, out authority, independent SEN placements, schools forum, contingencies.

14. Consultation on School Funding Reform CBC received �4,658 per pupil in 2011/12, English average is �5,083. Range from �8,052 to �4,429. Only 13 LA�s receive less per pupil than Central Bedfordshire.

15. Consultation on School Funding Reform Transitional arrangements will limit how much schools budgets can increase or decrease from one year to the next. Continue with current system in 2012/13 More details after consultation has closed �Shadow settlement� for 2012/13 to show potential allocations resulting from the reforms but not to school level

16. Consultation on School Funding Reform National Formula to calculate LA resource will include:- Basic amount per pupil Additional per pupil funding for deprivation Additional funding to protect small schools An adjustment for areas with high labour costs (Area Cost Adjustment). May also include:- Additional funding for pupils who have English as an additional language

17. Consultation on School Funding Reform LA�s & Schools Forum to agree formula to distribute funding locally to meet local priorities and needs. DFE to take steps to simplify local formula so there is consistency between areas. Their preferred option is to restrict number & scale of additional local factors

18. Consultation on School Funding Reform LA�s responsible for funding high needs pupils Providers of early education & childcare for 3 and 4 year olds in PVI & maintained sectors. (DFE also consulting on moving to nationally determined formula)

19. Consultation on School Funding Reform Modelling Work taking place around reducing the number of factors in CBC�s formula for calculating schools individual budgets for 2012/13 in preparation.

20. Consultation on School Funding Reform 3 Options modelled Possible factors to be added to AWPU Mainstreamed Grants Teachers Threshold NQT�s funding Lump Sums (including Insurance & meals) Infant Class Size Additional Summer term intake Meals Small School Protection

21. Consultation on School Funding Reform In all options the overall trend shows that schools with lower pupil numbers face a reduction in funding and those with higher pupil numbers gain. However not true in all cases and the MFG will still impact the amount of change, but MFG for 2012/13 not yet announced.

22. Consultation on School Funding Reform More information on DfE website www.education.gov.uk/consultations/index.cfm?action=consultationDetails&consultationId=1765&external=no&menu=1 More information on 2012/13 Formula during Spring Term

23. Pupil Premium Provides additional funding for schools clearly & transparently so that they can better support deprived pupils Will be kept separate from formula for duration of this Spending Review period. Eligibility & amount per pupil for 2012/13 subject to funding consultation. Amount per pupil & pupils attracting premium � DFE intending to increase both.

24. Pupil Premium DFE longer term aim is to route all deprivation money through the PP and use FSM as an indicator. Eligibility to increase to those pupils who have previously been eligible for FSM in previous 3 or 6 years the DfE has announced that this year�s Pupil Premium for disadvantaged pupils has been increased from �430 to �488; an additional �58 per pupil. The money has been released because fewer children than expected have registered for Free School Meals. Children who have been looked after by LA�s for more than six months will also qualify for the Pupil Premium at the higher rate. The funding premium for children of service families will remain at �200 per pupil for 2011-12.

25. Pupil Premium Increases in Pupil Premium will be included in the December 2011 payment. The actual payment will be calculated as: �488 x 75% minus �430 x 50% (paid in Sept). Pupil premium is the only grant that should be coded to I05.

26. How much can you save? Francesca Ricci Energy Officer

27. Central Bedfordshire Council�s Carbon Footprint CBC emissions - 33,700 tonnes of CO2 a year (equal to a plane flying around the equator 5,680 times!)

28. Key Drivers Rising Energy Prices � OFGEM 60% increase by 2016 Average lower school �6,000- by 2016 �9,600 Average middle school �20,000- by 2016 �32,000 Average upper school �40,000- by 2016 �64,000 Climate Change Act � Legally binding target to reduce emissions in the UK by 80% by 2050 Carbon Reduction Commitment (CRC) Energy Efficiency Scheme � CBC enter scheme in 2013, paying for allowances in 2014

29. Reducing Carbon Emissions in Central Bedfordshire Central Bedfordshire has set an ambitious carbon reduction target of 35% by 2015 Developed a Carbon Management Plan in consultation with the Carbon Trust Developed a Schools Carbon Reduction Action Plan

30. Schools Carbon Reduction Action Plan Aim to help schools save energy, reduce carbon emissions and reduce costs If a school�s energy bill is �40,000 a year, how much can be saved through energy efficiency measures?

31. Carbon ReductionInvest-to-Save Fund What is it? Interest free loan fund to support energy efficiency projects within schools How does it work?

32. Projects the fund is likely to support Insulation � cavity and roof Lighting upgrades/ controls Heating upgrades/ controls Draught proofing Community, Voluntary Controlled and Foundation schools can apply to the fund, and schools that have converted to Academy status since 1st April 2011. Keen to apply? Expressions of interest - Friday, 25th November

33. Case Study Project: T12 to T5 Lighting Upgrades Annual Electricity Spend: �8,000 Project Cost: �20,000 Anticipated savings: �3,000 per year Payback: 6.6 years Repayments 6 annual payments: �3,000 1 final payment: �2,000

34. Automatic Meter Reading (AMR) Programme What is it? Technology that automatically records and transmits energy consumption data on a half-hourly basis Benefits of AMR Monitor your energy use � allowing you to identify unusual consumption Energy reports generated automatically and sent to staff Educational tool can be used in classrooms Bills based on actual, rather than estimated consumption Avoid CRC charges for estimated bills

35. Community, Voluntary Controlled and Foundation schools can apply, and schools that have converted to Academy status since 1st April 2011. CBC will pay installation costs of AMR schools to pay annual data charges- approximately �70 To apply contact Francesca by Friday, 25th November 2011

36. Questions?

37. School Balances Schools Forum on 20th June reviewed outturn position, revenue balances had increased by over �2.6M Proposed no clawback but reminded those schools with surplus balances of the thresholds and that funding should be spent on students.

38. School Balances No balance control mechanism for 2011/12 but schools will still need to complete the earmarked funds form and agree it to CFR. Back-up to anything in B01 still required.

39. Licensed Deficits Only 6 schools with agreed LD�s for 2011/12 with a value of �296K. Working with 6 schools with possible LD�s or needing to increase their LD�s. 2 Schools applied to use tolerance of 1% of SBS

40. Licensed Deficits If from revised budget / forecast outturns schools need to apply for an LD, please ensure robust recovery plan is submitted with reasons for deficit. Back up to recovery plan should include:- projections of pupil numbers ISB income calculations assumptions of inflation rates used

41. Revised Budget Plans Requirement of Scheme Deadline date was 31st October 2011 60 Received to date Please submit asap SFA will review and challenge Include additional PPG (�58 per fsm) and ISB increase per pupil (�25 per pupil)

42. Forecast Outturn Deadline date 2nd December 2011 Same format as last year, updated template available on website along with guidance and worked example. Schools forecasts will be reviewed and challenged by SFA�s For large differences between forecasts and actual outturn, schools maybe asked for variance analysis and explanations. More details in workshop after coffee break

43. Schools Financial Value Standard  Replacement to FMSiS applies to all maintained schools and takes the form of a series of 23 questions which school governing bodies should formally discuss with their headteacher and other staff. Available to use from September 2011 The SFVS has been designed in conjunction with schools to assist them in managing their finances and to give assurance that they have secure financial management in place. Governing bodies have formal responsibility for the financial management of their schools, and so the standard is primarily aimed at governors.

44. Schools Financial Value Standard Maintained schools are required to complete the SFVS once a year. Those schools which never attained FMSiS by MARCH 2010 will be expected to complete and submit the SFVS to their local authority by 31 March 2012. For all other maintained schools, the first run through is required by March 2013. An annual review is required thereafter.

45. Schools Financial Value Standard SFVS will not be externally assessed like FMSiS. Local authorities can use schools� SFVS returns to inform their programme of financial assessment and audit. www.education.gov.uk/schools/adminandfinance/financialmanagement/schools%20financial%20value%20standard/a00192114/schools-financial-value-standard-sfvs

46. DfE Improving Efficiency in Schools www.education.gov.uk/efficiency One stop shop for efficiency tools & support. Updated with advice and real life examples of how schools can make efficiencies DfE added range of online efficiency tools DfE making sure schools have access to the full range of available tools Vfm.rescources@education.gsi.gov.uk

47. Grants for Schools Grants that we have been made aware of that schools may be interested in: PartnershipsGrant www.grantfinder.co.uk/login.php?r=newsflash-index.php&SID=cc671aadccb31c7f507e2b58e9eeccad National Science and Engineering Week, Kick start fund for Schools www.britishscienceassociation.org/web/NSEW/NSEWFunding/smallgrants.htm Instrument and Equipment Awards www.emimusicsoundfoundation.com/index.php/site/awards/

48. Support for Schools with Service Children New fund announced 16th May of �3M from 2011/12 � 2013/14 to help mitigate the effects of mobility & deployment faced by schools with service children. More information via DfE website: www.education.gov.uk/schools/adminandfinance/financialmanagement/schoolsrevenuefunding/financeofficernews/a00197729/ministry-of-defence-support-fund-for-schools-with-service-children

49. Governors Checklist Intended to assist governors when reviewing the schools financial returns Only as a guide, other more detailed checks may also be carried out as Governors feel appropriate. Aimed at providing governors with independent assurance as to the satisfactory reporting of the schools I&E to the LA.

50. Schools Traded Services Ann Mathers has now left, and Bursars are now reporting to Gina Chandler. Unfortunately, due to staff changes unless schools have contracts in place, unlikely there will be much availability for ad-hoc visits during Spring Term/ Year-end The Helpdesk will be closed over the Christmas holidays from 3pm on Friday 23rd December and re-open on Tuesday 3rd January 2012

51. Schools Traded Services Nicci Henson going on maternity leave in December, her contracts will be covered by Sylvia Palmer. Temp replacement SFA to be advertised for Review taking place considering the traded services with Schools

52. HR Timesheets Please remember to code all timesheets to your cost centre ending in �3� and NOT �1�. Still getting a lot of timesheets going through on the wrong cost centre.

53. Fully Funded Pass on new bank account details to all grant and/or childcare voucher providers to ensure credited to schools bank account and not CBC�s bank account.

54. Fully Funded School Traded Services will be running some RM Finance Fully Funded courses during the Autumn Term. These courses will be working on the RM Finance software and will aim to clarify the Fully Funded Processes including Bank Reconciliation, VAT, Payroll, Advances, Cashflow, the Income & Expenditure statement, year end checks and putting together a balance sheet. We have dates available on 23rd, 25th and 29th November 9.00am to 12.30pm. The cost will be �120�per delegate. Please contact Nicci Henson to book your place.

55. I&E�s Common Issues Income and expenditure statements must match local system reports. Copy of local system report is required as back-up to I&E.

56. I&E�s � Common Issues Capital expenditure needs to be split depending on how its being funded, two lines on I&E, attach local system back-up showing breakdown to analysis code level.