Introduction to Financial Arrangements for Educational Provision

1. Introduction to Financial Arrangements for Educational Provision Author : Sharon Campbell Strategic Manager Finance

2. Dedicated Schools Grant • Introduced in 2006/07 • Level of funding based on historic spend levels as an amount per pupil – subsequently uplifted • Somerset level of funding historically low • From April 2013 DSG has been broken down into blocks • Schools block (amount per pupil as at October census) based on historic spend (£4,277.55) • Early years block (amount per pupil as at January census) based on historic spend (£3,585.61), plus an amount for 2 year old provision based on a new national formula • High needs block amount based on historic spend adjusted for outside county, growth and specialist post 16 provision

3. DSG 2013/14

4. Budget Setting Process • LA must establish a Schools’ Forum • Schools’ Forum decides upon level of centrally retained budget within Schools’ and Early Years Blocks • LA consults on level of central budgets for High Needs and formulas for schools, academies and early years • LA MTFP is ongoing with decisions in November and February

5. Individual Schools’ Budget • Teachers and teaching assistants • Librarians, technicians and other support staff • Support services, supplies, curriculum materials and other resources • Support for children with additional and special educational needs, including named pupils with high levels of need • Premises costs such as caretaking, cleaning, utilities, refuse collection, repairs and maintenance • Specific additional costs such as split site and PFI • For academies – insurance, maternity cover, wide area network and licences

6. Managed on behalf of schools – de-delegated • Maintained schools • Insurance, maternity cover, wide area network and licences • Primary Schools • Contingency funding

7. Managed centrally on behalf of all pupils • Co-ordinated admissions arrangements • Carbon reduction commitment charges (schools & academies) • Growth Fund – to provide the additional necessary funds as a result of significant growth in pupil numbers • Budgets combined with LA or external budgets to support childrens services as a result of Compact commitments

8. Early Years Budget • Free entitlement for 3 and 4 year olds in school nursery classes, private, voluntary and independent sector • Early years provision for disadvantaged 2 year olds • Central Early Years activity • Funding for 3 and 4 year olds is based on an amount per hour reflecting different costs of various service providers • 2 year old provision is a single hourly rate regardless of setting

9. High Needs Budget • Specialist provision and support for children and young people with high levels of Special Education Needs (0-25) • Provision for pupils out of school and those needing alternative provision • Combination of place plus top-up funding

10. Possible Issues • As schools are now out of scope for Carbon Reduction Commitment the DSG will be top-sliced (likely to be more than being saved) • Pressure on The Key due to reduction in discount + £15k • If The Key is extended to governor support + £86k • Growth Fund