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Agenda item

Dedicated Schools Budget - Budget Monitoring 2019-20

The report of Marie Taylor (Head of Finance – Children and Education) seeks to present the budget monitoring information against the Dedicated Schools Grant (DSG) for the financial year 2019-20 as at 30th November 2019.

Minutes:

Marie Taylor (Head of Finance – Children and Education) referred to the budget monitoring report as at 30 November 2019 that was circulated with the Agenda. 

 

Marie highlighted the following:

 

·       That there was a forecast underspend of £0.210m on the school’s block budgets.   There was a forecast overspend on the early years budget this year because the budgeted numbers of FTE’s has been exceeded by take up of parents.  The 30 hours of free childcare is only open for working parents – this is good for children but not for the budget.  It was hoped that we play catch up and the funding will increase.  The forecast overspend is £1.036m.  The 2018/19 adjustment based on the January 2018 census data was a reduction of £0.359m;

 

·       High Needs budgets are projected to overspend by £6,494m with the biggest areas of overspend being Independent Special School (ISS) packages, Named Pupil Allowance (NPA) and alternative provision.  The funding isn’t at the required level to meet the growing demand in Wiltshire.  There has been a significant increase in demand since the last report (27 FTE new NPA’s, 19 FTE new special school top ups, 4 FTE new ISS places and 3FTE additional SEN education other than at school);

 

·       The numbers of EHCPs requested has not slowed and it is forecast that 3,970 children in Wiltshire will have one by 31 March 2020;

 

·       A lot of work has been done to look at what can be done with the High Needs budget pressures including the High Needs Block Working Group, an independent external review commissioned through ISOS, and re-organisation and alignment of Council services; this is being followed up by the joint working party, starting February 2020.

 

·       There is a small but favourable forecast variance of £6k on central school’s services block;

 

·       Of concern is that the forecast overspends would take the DSG reserve into a deficit position of £9.580m.  With effect from 2018/19 the DfE changed the regulations as there were lots of schools in deficit, under which Local Authorities have to explain their plans for bring the DSG account back into balance.  Last year we were just under the 1% but in June this year we will be required to submit a recovery plan, this will not pose a problem as we do have a recovery plan under discussion; and

 

·       In the Autumn of 2019 the DfE carried out consultation on changing the conditions and regulations applying to the DSG.  The Government had intended to make a decision on the proposed changes in time to inform the setting of the LA budgets for 2020/21 but the outcome is still awaited – it is assumed that the December 2019 general election may have delayed things.  Marie had met with the Cabinet Member (Cllr Pauline Church) to ask her to speak to MP Michelle Donelan to chase for a response.

 

A Forum Member asked when the Local Authority’s 2020/21 budget submission was (21 January 2020) and expressed disappointment that the DfE expect us to set our budget but don’t give us the information/toolkit to do it.

 

A Forum Member asked about the recovery plan.  Marie reported that the Local Authority’s recovery plan would cover a number of years and be dependent on factors agreed at the end of today’s meeting.

 

Resolved:

 

That Schools Forum note the budget monitoring position at the end of November 2019 alongside reports later on the agenda on the 2020/21 Schools Budget, levels of funding and recovery planning.

Supporting documents: