School Funding Reform – next steps towards a fairer system

School Funding Reform – next steps towards a fairer system • National Funding Formula delayed to next Comprehensive Funding Review (CSR) i.e. for 2 years • For April 2013 LA’s have to “simplify” their formulae to move from current 37 plus allowable factors to 9 • The Schools Forum composition and operation will change • The Education Funding Agency (EFA) are to play a strong role in ensuring fairness within the new system • Funding for high need pupils to fundamentally change • EYSFF may be simplified

The list of allowable factors is: • a. A basic per-pupil entitlement – there will be a single unit for primary aged pupils and either a single unit for secondary pupils or a single unit for each of key stage 3 and key stage 4, so authorities may wish to plan for both scenarios. • b. Deprivation, measured by Free School Meals (FSM) and/or IDACI • c. Looked after children • d. Prior attainment as a proxy measure for SEN (notional SEN budgets can still also include funding allocated through pupil numbers and deprivation) • e. English as an additional language, for a maximum of 3 years after the pupil enters the school system • f. A standard lump sum for each school, with an upper limit between £100,000 and £150,000 • g. Split sites • h. Rates, which may be at actual cost • i. Private finance initiative (PFI)

NOW Weightings 2012/13:- KS1 0.912 KS2 0.801 KS3 1 = £2,779 KS4 1.273 NEXT YEAR 2013/14 and 2014/15 Only 1 primary value Consultation asks should there be separate KS3 and KS4 or just one factor Cash values will go up as more funding through the AWPU National primary to secondary ratio = 1 to 1.27 Gateshead’s currently 1 to 1.3 AWPU

NOW Share of circa £300k on the basis of class sizes of 30 in KS1 NEXT YEAR Rule of infant class size no more than 30 remains but no allowable factor for targetting resource. £300k will probably go into the primary age weighted pupil value Infant Class sizes

Estimate based on previous years actuals Actual termly payment on the basis of actual numbers term by term Same as PVI sector Stays with LA if school converts to academy EYSFF subject to review but remains outside of the main primary and secondary funding formula and is still based on actual numbers term by term Nursery Funding

NOW Place values 2012/13:- Primary £9444 Primary MLD/SLD £6517 Secondary LD £5176 Secondary Autisim £7600 NEXT YEAR Funding will move from SBS to High Needs pupil block Possible basic funding of £10,000 per pupil on a commissioned basis ARMS provision

NOW Acorn scores - weighted FSME – banded and weighted Prior attainment secondary only KS2 results NEXT YEAR AEN FSME (ever 6 ?) And/or IDACI scores AND EYFSP assessments KS2 assessments As indicators of low cost high incidence SEN AEN (Social Disadvantage)

NOW Secondary only £2303 per statement Stays with LA on conversion NEXT YEAR As with ARMS funding no longer SBS, part of high needs pupil funding and allocated on an individual pupil basis by the commissioner SEN

NOW Primary schools only Schools with less than 300 pupils Allowance on a sliding scale smallest schools getting the most NEXT YEAR No specific factor allowed Lump sum factor for all schools should help mitigate the loss of this Additional Allowance (Small Schools Allowance)

NOW Rates – last years cost plus % uplift (equals the charge levied) Grounds Maintenance based on productive standard hours on a standard specification NEXT YEAR Rates still allowed Grounds maintenance will have to move into pupil value Premises Fixed Cost

NOW Cleaning (own mini formula) Energy (own mini formula) Boiler firing Special premises (contribution to second caretaker on sites over 7000 m2) Total of above divided by floor area gives factor that then has occupancy levels applied to it Over occupied schools get a bit more under occupied a bit less NEXT YEAR No specific factor/s allowed Most will have to move into pupil value Premises variable costs

NOW In 2012/13 moved to new formula of lump sum plus £x per pupil NEXT YEAR Lump Sum into the general lump sum £x into per pupil value Repairs and Maintenance

NOW Primary and Special only 2012/13 £144.28 per employee Secondary always been in the AWPU NEXT YEAR All into the AWPU Payroll

NOW Various categories Actual premiums NEXT YEAR All into the pupil value Insurances

NOW Aided Schools only Primary £9.14 per reception and Y3 pupil Secondary £6.95 for 11 – 16 pupils NEXT YEAR Total funds will move into pupil value Therefore no targeted amount Admissions

NOW Primary £0.65 subsidy per paid meal served Free meals (take up) £2.55 per meal Secondary cash cafeteria lump sum £11,096 NEXT YEAR Total funds for paid meal subsidy will go into per pupil factor Total funds from FSM take up will go into deprivation funding Cafeteria lump sum funding into lump sum funding School Meals

NOW £1000 per NQT NEXT YEAR No allowable factor into per pupil funding NQT’s

NOW 20+ different formulas on the basis of historic grant allocations – per DfE advice meant to be for 2011/12 only but extended to 2012/13 Will cause great volatility when absorbed into new formula NEXT YEAR Very complex Probably into:- Per pupil Deprivation Lump sum Prior attainment Mainstreamed Standards Fund

Minimum Funding Guarantee • 2012/13 -1.5% • 2013/14 -1.5% • 2014/15 -1.5% Cost of MFG can be partially funded by “capping” gainers

NEW DELEGATION The currently centrally held budgets have to be delegated from 1/4/2013 • Contingencies • Supply costs – maternity, TUFACS, public duties • EMTAS • Behaviour Support All of these budgets plus insurances can be de-delegated by schools pooling back the money, by phase, by Schools Forum decision

Other Changes • Schools Forum constitution and operation • High needs pupils:- • National banding system being looked at • Special School Budgets and ARMs funding added to centrally held budgets to become the HCP block • Special Schools will get £10,000 per place as a SBS and top up from the relevant commissioner for the rest of the cost of provision • ARMS will get £10,000 per place and top up from the relevant commissioner

NEXT STEPS • LA officers to work on alternative formula and some modelling • Schools Forum 17th May - formula sub group set up to meet regularly and give support and challenge on the above • Agreed formula to Schools Forum late June • July to September consult all schools on Schools Forum agreed formulae (DfE suggested timeline!) • End of October final formulae to EFA (1 sheet of A4 !) with all factors and unit values • DSG for 2013/14 maybe announced late December based on October pupil count • Formulae factors cannot now be changed but unit values can on the basis of affordability

Consultation • DfE consulting until 21 May 2012 • Consultation document and FAQ on DfE web http://www.education.gov.uk/schools/adminandfinance/financialmanagement/schoolsrevenuefunding/a00205567/school-funding-reform-and-arrangements-for-2013-14

AGRESSO • Unit 4 (Agresso) advised that v5.4 would only be supported for a further c12mths and the latest versions (v5.6) offered greater functionality and opportunity to further develop internal business processes and services. • Four workstreams have been identified with a Lead Officer managing the progress and development. The workstreams are; • DescriptionOfficer • Record to Report - relates to the general ledger L Armstrong • Procure to Pay – purchasing & payment of goods / services C Tait • Sales to Cash – debtor invoices L Gardner • Bank Reconciliation L Armstrong • Solution Design Documents (SDD) have been drafted and agreed and Workstream Leads are now working on developing and building the system database onto the server. Go-Live is planned for Oct / November 2012. • Ten key drivers supporting improved VfM, streamlining of process and supporting planned and proposed organisational change continue as the project objectives. • Communication and Training are currently being progressed; with further communication being developed in-line with anticipated budget framework communication. Training strategies are currently being developed and costed with options being considered against training needs, new system roles and current levels of user knowledge and experience

School Funding Reform – next steps towards a fairer system