Bi-Borough Chair of Governors' Forum - Spring Term Finance Requirements & Falling Rolls

1. Bi-Borough Chair of Governors’ ForumSpring Term Finance Requirements & Falling Rolls 6th March 2019 Anita Stokes Finance - Bi-Borough Children’s Services

2. Agenda • Submitting a balanced budget plan • Financial management – SFVS • Falling rolls • Questions

3. Budget Planning Timetable Pupil Census October 2018 2019-20 Budgets 28th February 2019 Early years & March 2019 SEN top ups Budget Plan to be 31st May 2019 Submitted to Council

4. School Budgets • MFG – WCC 1.5% per pupil, RBKC -1.3% • Budgets provided for 1 year only • Underspend/overspend carried forward • Need to identify use of carry forward in budget plan • Early years and high needs (SEND) funding adjustments in year • Pupil Premium, UIFSM, Post-16, TPG

5. School Budgets – Potential Deficits requirements – Scheme for Financing Schools • Schools may not plan for a deficit budget except in exceptional circumstances. Licensed deficit requires school to agree deficit recovery plan with the LA before the FY of first deficit budget. • The deficit recovery plan to include: the reasons for the deficit; the amount of the deficit; a robust proposal for repaying the deficit with supporting evidence; the period over which the school will repay the deficit - maximum of three years. • Monthly monitoring returns required

6. Items to be considered re Budget Setting Problems • Eligibility for falling rolls fund (next slide) • Review all costs/budgets • Staffing structure review • Joint working with other schools including joint leadership teams / federating • Benchmarking with similar schools • Support from Link Adviser/Diocese/HR & finance on restructuring and related costs

7. Falling Rolls Fund Criteria • Schools must meet OFSTED criteria of good or outstanding. • Schools with reductions of >5% may qualify. The first 5% of the roll reduction not funded. • Schools with less than 5% reduction do not qualify. • Schools with former bulge classes where rolls are reducing as expected do not qualify. • Schools with balances above the following levels do not qualify – primary 8% and secondary 5%. • Funding will be pegged at 80% of the AWPU rate. • Submit business case by 5th March including actions taking to restructure and deal with reducing pupils. • Forum working group will review criteria before cases considered at March Forum. Criteria may be tightened or AWPU value reduced.

8. Financial Management - SFVS • Schools Financial Value Standard (SFVS). • Schools required to complete standard once a year and submit to Local Authority by 31st March.

9. Financial Management - SFVS • SFVS aimed primarily at governors but they should formally discuss with head teacher and senior staff. • Consists of 25 questions – may be delegated to the Finance committee but a detailed report must be provided to the full governing body and the completed form has to be signed by the Chair of Governors. • For ‘Yes’ answers a comments column should refer to main evidence • For ‘No’ or ‘In Part’ answers the comments column should contain a brief summary of the position and proposed action.

10. Financial Management - SFVS • Questions cover following areas: • A. Governing Body & School Staff • B. Setting the Budget • C. Value for Money • D. Protecting Public Money https://www.gov.uk/guidance/schools-financial-value-standard-and-assurance-sfvs

11. Benchmarking Annual benchmarking report to be discussed at governing body meeting • Benchmarking website gives school historical data and comparison with individually selected schools or schools with similar characteristics https://schools-financial-benchmarking.service.gov.uk/ https://www.gov.uk/government/publications/school-resource-management-self-assessment-tool Websites gives more information

12. Questions • For further information: Amanda Anerville – aanerville@westminster.gov.uk