The essentials of a cademy funding: 2015 to 2016 academic y ear

1. The essentials of academy funding: 2015 to 2016 academic year Mike Pettifer

2. Key messages • Know what’s happening locally • Understand the changes for 2015 to 2016 • Understand the timescales • Ensure you have realistic and robust financial management and governance

3. 1. Know what’s happening locally Engage with your schools forum and recognise your local authority is a key partner Understand the LA funding proposals

4. Schools forum • The local authority must consult with its schools forum about how the Dedicated Schools Grant is spent including:

5. Schools forum • Academies must be proportionally represented in schools forum membership • You don’t have to be a schools forum member to engage –make your views known to your academy rep • All schools forum meetings are open to the public and reports are available online • Stay informed - attend schools forum meetings, monitor the reports and minutes and keep in touch with your rep • If you are the academy rep make sure you keep in touch with academies in your area

6. Important local collaboration on high needs • Academy • LA • EFA • Agree place numbers with LA/EFA • Agree top-up funding with LA

7. Inputs: the funding calculation LA formula Allocation The accuracy of an allocation depends on the data on which it is based. All institutions funded on estimated pupil numbers will be subject to a Pupil Number Adjustment. Census returns Estimated pupil numbers

8. School budget share funding factors Pupil Led (80%) Institutional (20%)

9. Sixth form funding: the national funding formula ( ) Student Numbers National Funding Rate per student Retention Factor Disadvantage Funding Area Cost Allowance Programme Cost Weighting Total Programme Funding

10. 2. Understand the changes for 2015 to 2016 Fairer schools funding announcement, including minimum funding levels Education Services Grant High needs funding

11. Fairer schools funding announcement • Minimum funding levels (MFLs) for local authorities • Changes to the sparsity funding factor • Confirmation that non-recoupment academies will become recoupable • High needs funding policy changes (minimal) • Confirmation of a Minimum Funding Guarantee (MFG) of minus 1.5% per pupil funding • Effective from the 2015 to 2016 financial year for maintained schools and the 2015 to 2016 academic year for academies • Fairer school funding: arrangements for 2015 to 2016

12. Minimum funding levels • Additional £390m allocated to the least fairly funded LAs • Every LA attracts a minimum funding level • 69 LAs see an increase in per pupil funding

13. Minimum funding levels: impact on academies and free schools • Remains the LA’s responsibility to set local formulae to meet local circumstances • Individual academies’ or schools’ funding will not necessarily be at or above MFLs • Academies should continue to engage through the schools forum to ensure representation • Changes implemented in line with funding year

14. Education Services Grant (ESG) • Un-ringfenced grant to fund education services that LAs provide for maintained schools but not for academies • Consultation held in March 2014 following the latest spending round • Changes to ESG announced with tapered protection against losses • Education services grant: statement of final arrangements for 2015 to 2016

15. Education Services Grant

16. Education Services Grant – protection arrangements

17. High needs funding • Allocations process simplified • 2014 to 2015 place numbers used as the basis for 2015 to 2016 • Exceptional growth cases - academies and FE colleges should speak to their local authorities • Post-16 place numbers will now be reported on according to the local authority in which the institution is located rather than on a residency basis • Providing we are not inundated with exceptional cases we should be able to finalise all allocations earlier • Additional funding for demographic growth

18. High needs – improvements to alternative provision (AP) funding • Funded from a central departmental budget in free schools’ first and second years • Consultation on draft regulations including an increase in the funding of AP places to £10,000 • Small changes to schools forums to increase representation on SEN and AP funding issues

19. 3. Understand the timescales Find out when schools forums are meeting Check the latest EFA business cycle Information Exchange calendar launched in the autumn

20. Key activities for 2015 to 2016 academic year allocations

21. 4. Ensure you have realistic and robust financial management and governance Financial systems Financial responsibilities

22. Financial systems • Institutions are expected to have internal systems and processes to robustly set and manage budgets • Good governance means better schools - make sure you have a strong accountability framework • Understand your responsibilities within the terms of your Funding Agreement • The EFA works very closely with academies to identify where there are potential financial concerns

23. Financial responsibilities • Financial management and governance self-assessment (FMGS) submitted to us six weeks after opening • Prioritise your budgeting and financial management: • Budget forecast submitted to us four weeks after receiving your final funding letter and then by 31 July annually • Check the deadline for your first financial statements (from the date you incorporated, not the date you opened); financial statements need to be submitted by 31 December every year • New openers submit a March accounts return for the first period in the financial year then move to a schedule of returns for the year ending 31 August, with the accounts due by 31 January

24. Key messages

25. Take part in our webinars • Register online • Available to view after broadcast

26. More information • Two interactive webinars • Topic specific presentations with slide sets • Guidance to support the allocations • Subscribe to the EFA e-bulletin • Academy enquiry service: academy.questions@education.gsi.gov.uk