1. Budget Briefings 2014-15 Financial Year

2. toilets fire exits breaks timingsphones confidentiality Domestics

3. Agenda Context and Key Points 2014-15 Budget - Changes to Schools Block - Re-cap of High Needs - Changes to Early Years - Re-cap De-Delegation 2015-16 and Beyond SOR Messages from our Partners – Schools Choice and EFMS

4. Financial Context Cash Frozen Dedicated Schools Grant (DSG) - Guaranteed Unit of Funding will remain at £4,676.45 for the fourth year. Comprehensive review by the Government. Pupil Premium will continue to be funded as an allocation outside of DSG Minimum Funding Guarantee minus 1.5%,Gains are capped at 6.25% SCC Funding pressures New FSM Arrangements

5. Pupil Premium This is the only source of growth in funding to schools. New Rates £1,300 for primary-aged pupils £935 for secondary-aged pupils £1,900 for all looked after children £300 for service children

7. Suffolk County Council Future Funding Challenge

8. From Sept 2014 every child in R, Y1 and 2 will be offered a FSM. Suffolk has £1.7m capital funding to help upgrade Kitchens and Dining facilities. - this will be allocated based on LA assessment of need. - insufficient funding for all schools needs so will be based on greatest need. New arrangements for Free School Meals (FSM)

9. The government has announced that Schools will be allocated a flat rate of £2.30 per meal taken. Allocated on School Census next year. No clear guidance on funding in 2014-15. We assume that this year an allocation will be made based on January Census with an assumed % taken up. We assume this will be allocated as a targeted grant that we will passport through to schools. We assume this funding will be available to allocate before September. New arrangements for Free School Meals (FSM) - Revenue

10. Key Points DSG will be allocated in three blocks; These blocks are not ring-fenced Funding can be moved between blocks – with School Forum approval. Total DSG

11. Academies Schools Accountancy Team calculates academy budgets in the same way as Local Authority (LA) maintained schools Funding recouped by Education Funding Agency (EFA) who calculate academy budgets –EFA uses same Formula as LA –Extra funds for additional responsibilities Funded from September to August to reflect the academic year This session is primarily aimed at maintained schools, but still applies to academies General Annual Grant (GAG)

12. Any Questions ?

14. National Data set All data used is provided by the EFA. It is based on returns submitted by schools The main driver is pupil numbers –October census With the exception of pupil numbers all other data comes in as a % profile Overall Pupil led funding is 88.40%

15. Government Review The DfE has reviewed all the LA 2013-14 pro forma submissions With a view to ensuring that all schools are moving in the same direction, ready for a Nationalformula. As a result the DfE are making a few minor changes

16. Locally Agreed Changes Deprivation – moving funding to FSM band, from the IDACI bands. Removing Mobility factor. Introducing the Sparsity factor Rent – Exceptional Factor

17. LCHI SEN in 2014-15 Low Cost, High Incidence (LCHI) – measure has changed for secondary. WAS – Not attaining level 4 in English and Maths. NOW – Not attaining level 4 in English or Maths. Nationally this will pick up an extra 10% of pupils. In Suffolk it means an additional 6,600 pupils now qualify.

18. School A School B 1 mile 2 miles 1 mile 3 miles 5 miles 2 miles 4 miles Key 1 st nearest school Distance to 2 nd nearest school How the sparsity factor will work School C New Factor - Sparsity

19. Sparsity Conditions Primary – Less than 150 pupils on roll and a minimum average of 2 miles. Middle - Less than 600 pupils on roll and a minimum average of 2 miles. Secondary – Less than 600 pupils on roll and a minimum average of 3 miles. Allocation for qualifying schools of £100,000 tapered to number of pupils on roll.

20. Sparsity and MFG Sparsity Funding will be removed from Schools baselines (like the Lump Sum). The affect of capping and MFG means most schools receiving sparsity won’t see any cash benefit. But it may mean that your school no longer needs MFG. 0.64% of funding allocated through this factor.

21. Pupil Led Factors 1) A basic per-pupil entitlement - Primary unit£2,606 -KS3 unit£3,809 -KS4 unit£4,213 75.33% of funding allocated through this factor 2) Deprivation 6.54% of funding allocated through this factor.

22. 3) Looked After Children £925 - cash sum for each looked after child, the same for primary and secondary 0.09% of funding allocated through this factor 4) Low Cost, High Incidence SEN Not linked to individual pupils For Primary - less than 78 points at Early Years Foundation Stage - £885.00 For Secondary - level 3 or below in English or Maths at KS2 - £1,110.00 5.94% of funding allocated through this factor 5) Mobility Will not be used in the 2014-15 Suffolk formula 6) English as an Additional Language (EAL) £1,500 for each eligible pupil for their first year in education, the same rate for primary and secondary 0.49% of funding allocated through this factor

23. 7) Lump Sum The same for all schools, whatever size or phase. Value - £114,000 9.47% of funding allocated through this factor 8) Split Sites Suffolk had to develop a new policy that was clear and transparent. To assist schools with transport costs between sites. Primary - £1,000Secondary - £5,000 0.02% of funding allocated through this factor 9) Rates Schools will be funded on actual costs as now. 1.45% of funding allocated through this factor 10) Exceptional Factors - Rent Paid on actuals to those qualifying schools. 0.03% of funding allocated through this factor Other Factors

24. Minimum Funding Guarantee and Capping DfE has: –set the MFG -1.5% 2014-15 (same as 2013-14) –stated that MFG will continue in 2015-16 but have not specified at what level The LA will need to apply a cap per pupil to fund the MFG, the cap for 2014-15 is 6.25% Schools with MFG, £ per pupil is protected from falling by no more than -1.5% Compares 2013-14 MFG £ Per Pupil with 2014-2015 MFG £ Per Pupil MFG does not protect the overall budget, if pupil numbers fall funding falls.

25. What does this mean for schools? Similar funding in 2014-15 to 2013-14 Does have implications for the future Differences between formula budget and cash budget do matter

26. Any Questions ?

27. Capital Funding remains at low level for both schools and LA Projected Funding to LA Plus additional £1.7m for FSM policy SCC priorities remain: –School Organisational Review –Urgent Health and Safety condition work –Place provision 2014-152015-162016-17 Maintenance9.7m9.5m (estimate) 9m (estimate) Basic Need10.9m1.0m

28. Per SchoolPer Primary Full time equivalent Pupil Per Secondary Full time equivalent Pupil Per PRU or Special Full time equivalent pupil £4,000£11.25£16.88£33.75 Devolved Formula Capital Rates (non VA schools) VA Schools hear direct from their diocese -Buildings are legal responsibility of aiding bodies/governors -Any spend on buildings seen as a donation to aiding bodies funds -VAT not recoverable, however may be changes to VAT treatment -10% contribution from the schools own budget

30. Recap High Cost pupils in Mainstream Settings The ‘Place–Plus’ approach comprises two parts: 1.Funding in Delegated Budget (Schools Block): The first £10k for pupils with Special Education Needs (SEN) has to be met from the schools’ own delegated budget 2.Top up funding (High Needs Block): Funding for pupils costing over £10k p.a. can be claimed from the Local Authority. Amount is based on the assessment of individual pupil needs SLU’s, HIUs and SCCs are paid at £10k per commissioned place and top up can be claimed from the LA. Top up is based on the assessment of pupil needs. This is paid at 25% of full value for SSCs.

31. Recap Bandings and Top Ups Mainstream schools: –Banding values are the same for all schools. –No change from 2013-14 values Band 1 - top-up funding is £750 (p.a) Band 2 - top-up funding is £2,000 (p.a) Band 3 - top–up funding is £4,000 (p.a) Band 4 - top-up funding is £6,000 (p.a) Termly lag for top up funding - Spring term funding based on Autumn Term pupils

32. Recap Dual Placements - Special School This is where the special school is listed on the statement as the main school. Special School receives: From SCC –Full place funding of £10,000 –Top up funding for the full year based on the needs of the individual child even if the child leaves permanently. –£500 admin fee per dually placed child. Mainstream School receives: From Special School –£15,000 pro rata based on the no. of sessions delivered.

33. Dual Placements - Mainstream School This is where the Mainstream school is listed on the census as the main school and is dually placed at a Special. Mainstream School receives: From SCC –Schools Block funding – i.e. the first £10,000 –Top up funding for the full year based on the needs of the individual child. Cannot claim if child leaves permanently –£500 admin fee per dually placed child Special School receives: From Mainstream School –If under subscribed on commissioned places - £5,000 Top up pro- rated for the actual sessions attended –If over subscribed on commissioned places - £15,000 pro-rated for the actual sessions attended The Mainstream School is responsible for processing the payment

35. Dual Placement - Review The LA have been reviewing Dual Placements with Schools during 2013-14 Number of changes proposed - If a child returns full time to mainstream in year special school continues with the dual placement arrangement for that child, as the mainstream school has no funding in schools block. -A child starts with a Special School full time – Mainstream stops claiming Tops up and stops Dual Placement arrangements. Special school claims top up. The special school (if not full) will have commissioned places and funding.

37. Early Years Block – Changes from 2013/14 The LA has increased the base rate payment to providers by up to 12.8%. The LA has increased block payments to PVI providers - £1,665 (if based on school site) - £3,330 (if not on a school site). There are revised arrangements for additional support for SEN.

38. Early Years Block – High Needs Funding Revised arrangements for SEN The changes to SEN will bring Early Years in line with Schools. This means that the first £2,550 will be with the provider through their delegated budget. Children whose needs cost more than £2,550 to support will need to apply to the LA for top ups.

39. Any Questions ?

40. De-delegation of Central Services - Decision Making The vote was by school members (i.e. heads and governors) at Schools Forum The vote took place at the October Forum Voting was by phase so potentially there could be different arrangements for primary and secondary phase Schools Forum voted to keep the 2013-14 arrangements in place for 2014-15. Except for Secondary property which schools forum voted to be de-delegated in 2014-15.

41. Implications of the Vote All phases of schools received an extra funding in their AWPU to allow for these services. Primary schools and Secondary schools will receive additional funding in their AWPU, but this will then be returned to the LA –Academies will keep this funding to provide these services. –Maintained schools will have this funding recouped before the budget is issued to continue to provide the services centrally

42. Future Funding

43. Budget Process Two Step Process First Step: 2014-15 Budget –Detailed line-by-line –Agreed by governors by 31st March 2014 –Electronic copy to LA by 1st May 2014 –Submitted via AVCO

44. Strategic Plans: 2015-17 Second Step: 2015-16 & 2016-17 Budgets High level plans: –focus on change, not detail – includes LA’s indicative assumptions Only 2 versions: –realistic and worst-case Governors to agree Strategic Plans by Summer half-term Electronic copy to LA by 30th May 2014

45. Any Questions ?

46. Schools Organisation Review Revenue Funding: National funding formula Non recurrent funding Capital Funding: LA funding Devolved Formula Capital

47. 2013-14 Transitions of Year Groups Group 4 - Thurston pyramid –Primary schools:2 nd year of transition –Middle schools:Year of closure –High schools:Transition of Years 7 & 8 Group 5 - Stowmarket/Stowupland pyramids –Primary schools:1 st year transition –Middle schools:1 st year transition

48. Revenue – National Funding Formula Two fundamental principles retained: 1.Schools funded for pupils in school as pupil numbers change due to addition/loss of year group(s) during financial year 2.Financial protection for middle schools to facilitate breadth of curriculum and standards of progress and attainment prior to closure

49. Revenue – National Funding Formula Pupil Numbers Year of transition pupil numbers weighted using actual pupil numbers for April to August (5 m) and to reflect the new structure, revised pupil numbers for the school for September to March (7 m) applies also to funding factors that are determined by pupil numbers (e.g. deprivation, EAL, LAC, low cost SEN, mobility) middle schools have Y5 pupil numbers adjusted in first year of transition

50. Pupil number calculation Primary schools April – August Annual budget based on October Census pupil count x 5/12 months September - March Annual budget based on projected change in pupil count x 7/12 months = 12/12 Annual Budget First Year of transition Year 4 is repeated to represent the new Year 5 from September Second Year Year 5 is repeated to represent the new Year 6 from September

51. Pupil number calculation Upper/High schools April – August Annual budget based on October Census pupil count x 5/12 months September - March 100% of October Census Yrs 9-11 pupil count plus Estimate of the additional Yr 7 & 8 pupil numbers agreed with school x 7/12 months = 12/12 Annual Budget

52. Pupil number calculation Middle schools – First year of transition April – August Annual budget based on October Census pupil count for Y 5, 6, 7 & 8 x 5/12 months September - March Annual budget based on projected pupil numbers in Y 6, 7 & 8 only (no new Y5) x 7/12 months = 12/12 Annual Budget

53. Pupil number calculation Middle schools – Year of closure April – August Annual budget based on October Census pupil count for Y 6, 7 & 8 x 5/12 months September - March School closed = 5/12 Annual Budget

54. Pupil Number Adjustment for Middle Schools First year of transition only Calculate total reduction in pupil numbers and then increase Y5 pupil numbers by 50% of the reduction to provide additional pupil funding.

55. Pupil Number Table

56. Revenue formula funding - Key points 2014-15 budget reflects transfer of pupils in the period April 2014 to March 2015 Weighted pupil numbers used to calculate budget Principle applies to all funding factors determined by pupil numbers Additional funding for middle schools in first year of transition No adjustment if pupil numbers in September are lower than forecast Single lump sum per school Split site funding where applicable LMS 2012/27 Note: High Needs top up funding which is required for pupils in the new year group(s) will need to be claimed by primary or secondary school as part of the termly claim

57. Growth funding not part of formula funding budget £5k paid to school for each additional class Significant growth of >10 classes - block amount plus funding for class as above or £7.5k for specialist classrooms (but may be “in kind” from closing MS) Other transition costs not part of delegated budget funded by LA for: Training, coordination, relocation, temporary accommodation, redundancy, salary safeguarding Revenue – non recurrent funding

58. LA capital funding allocated for the building work required Schools are not required to contribute DFC to the capital costs Schools can use DFC for additional work/improvements No loans are available Once the closure of a middle school is confirmed, the DFC will be retained centrally with effect from the following financial year, until the year of closure Middle schools can access DFC for health & safety work SOR Capital & Devolved Formula Capital (DFC)

59. Allocation of surplus/deficits To be managed collectively across DSG as a whole Middle schools will be expected to set a balanced budget and not be permitted to plan for a deficit Other assets Curriculum materials and F&E will be allocated to primary and upper schools as per the ‘Protocol for the redistribution of middle school resources’. Redistribution Of Middle School Assets

60. School Finance Helpline: 08456 037684 finance.schools@csduk.com Schools Accountancy Team: 01473 265626 schoolsaccountancyteam@csduk.com@csduk.com SOR Policy: 01473 260791 fiona.heath@csduk.comiona.heath@csduk.com Enhanced Finance Service: 01473 264054 Efs.schools@csduk.com Contacts

61. Now a message from our partners

63. EFMS New services Grounds Tree inspection – for those schools that opt out of our maintenance package but still wish to utilise our service for tree inspections, we will be launching a service giving 2 recorded inspections per annum at a cost of £300 with any required work being charged at an additional cost. Health & Safety Fire risk assessments – from £250 dependent on size of school Health & Safety Audit – from £250 dependent on size of school Health & Safety Support & Training – available at £39 per hour plus expenses for the following services : Evacuation chair, fire warden, working at heights, legionella, manual handling, electrical hazard control, safe systems of work, risk assessments and health & safety checks on your premises

64. EFMS Service Changes Catering - Pupil Free School Meals –This money will not be collected annually in advance in April 2014, as in previous years. –Instead we will invoice for these meals the month following consumption as part of a consolidated invoice for paid, duty and pupil free school meals.

65. EFMS Price Changes Grounds Grounds maintenance – schedule of rates will be increasing by 3% (this increase is because these prices have not been revised for 4 years and we are no longer able to offset increases in labour or material costs) Tree insurance – increase of £25 per annum Catering A 10p increase in the tariff is being proposed from January 2015. This will be agreed with the Council in accordance with the service level agreement.

66. EFMS Price Changes Procurement and Energy Management 2% increase in charges ( average £11 per school ). This increase is due to the increased costs of the Entech energy management system. Some schools signed a 2 year agreement in April 2013 and these schools will not be subject to this increase.