Budget and Funding

Timetable

October / The schools budget is provisionally agreed at the Schools Forum
Budgets to be de-delegated agreed at the Schools Forum
January / Agree final unit rates at the Schools Forum
Agree initial allocations from the Growth Fund
February / Issue individual school budgets
April / First cash advance issued

School Funding Reform

There have been a number of changes to the way schools are funded from April 2013. Further information can be found on the DfE website.

How the changes were implemented in Milton Keynes can be found here. Briefing Note on School Funding from April 2013.doc

Details of the 2013/14 budget allocations can be found on the Section 251 statement.

Details on changes from April 2014 can be found on the DfE website.

Details of the proposed schools budget for 2014/15 can be found here at the link to October 2013 Schools Forum paper.

Cash Advances

A consultation has recently taken place which, if agreed by Schools Forum (October 17th 2013 meeting) would mean that the two April cash advances to schools would change to be one payment of 12% on the 15th April, followed by the current 8% per month on 26th May onwards. Payments are made direct to the school bank account via a BACS payment.

Details of the payment can be viewed via the Web-based remittance advice system

Pupil Premium

Information on the Pupil Premium can be found here.

PE & Sports Grant

Information on the PE & Sports Grant and be found here.

Devolved Formula Capital

Devolved Formula Capital – Community, Foundation and Voluntary Controlled Schools

We wish to remind schools about the timescales in which Devolved Formula Capital must be spent.

Devolved Formula Capital must be spent within three years of its allocation to schools. Funding allocated under the former Standards Fund regime up to and including 2010/11 has to be spent by 31st August 2013. Funding allocated from 2011/12 onwards has to be spent by 31st March three years onwards. This is set out in the table below:

Allocation Year / Date by which allocation must be spent
2010/11 Allocation / 31st August 2013
2011/12 Allocation / 31st March 2014
2012/13 Allocation / 31st March 2015
2013/14 Allocation / 31st March 2016

Therefore, at 31st March 2014 the maximum amount of Devolved Formula Capital that a school can carry forward to 2014/15 will be the total of the 2012/13 and the 2013/14 allocations.

An analysis of the budgets submitted by schools indicate that a small number of schools have set budgets for capital expenditure that fail to utilise available resources by 31 March 2014. Unspent allocations will have to be returned to the DfE.

Balances in excess of the carry forward at 31st August 2013 will be identified by deducting expenditure incurred between Period 1 and 6 from school trial balances from the balance carried forward at 31 March 2013. It will be important that all invoices relating to Devolved Capital that has to be spent by 31/8/2013 are processed by the end of September.

Balances of DFC in excess of the maximum permitted carry forward as shown in the closure of accounts at 31 March 2014 will be returned to the DfE.

A reminder of the purpose and priorities for the use of Devolved Formula Capital funding is set out below:

Summary of Purpose: To provide each school with its own capital money to address its own priorities, including capital on ICT items.

Specific priorities for use of funding: Improvements to buildings and other facilities, including ICT, or capital repairs/refurbishment in accordance with priorities set by each school and in line with the local asset management plan.

Schools which appear at risk of forfeiting parts of their allocations will be communicated with individually.

Schools Finance Team

June 2013