Part 1 / ITEM NO.

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JOINT REPORT OF THE STRATEGIC DIRECTOR FOR CHILDREN’S SERVICES AND THE CHIEF FINANCIAL OFFICER

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TO SCHOOLS FORUM ON 17 OCTOBER 2012

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TITLE:SCHOOLS FUNDING REFORM – DECISION ON THE DE-DELEGATION OF CENTRAL SERVICE PROVISION

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CONCLUSION

The changes introduced by the Department for Education (DfE) require schools forum to make decisions on behalf of all primary and secondary schools in relation to the de-delegation of central services and budgets.

This decision does not impact on special schools and academies.

The results of the consultation indicate that for those schools who responded the preferred option for all service areas is to de-delegate the budgets.

RECOMMENDATION:

Schools forum are asked to consider the details in the report and make a decision on the delegation/de-delegation of the detailed central services.

EXECUTIVE SUMMARY:

This paper identifies the impact of schools funding reform on services currently funded though centrally retained DSG ( Dedicated Schools Grant) and outlines the schools’ responses to the consultation

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BACKGROUND DOCUMENTS: DfE schools funding reform guidance documents

S251 Budget Statement 2012-13

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DETAILS: Expenditure on the non delegated element which is in excess of the Dedicated Schools Grant allocation reduces the amount of money available for delegation to individual schools.

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SOURCE OF FUNDING: The Dedicated Schools Grant

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FINANCIAL IMPLICATIONS Supplied by Paula Summersfield, Principal Group Accountant

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OTHER DIRECTORATES CONSULTED None

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CONTACT OFFICER: Paula Summersfield TEL. NO. 0161 778 0214

WARD(S) TO WHICH REPORT RELATE(S): All

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REPORT DETAIL

  1. Introduction

1.1The Government, in its recent consultation on school funding reform, has outlined plans for a substantial simplification of the funding formula allowed for schools. Whilst funding reform will have significant implications for schools budgets there are robust protection arrangements in place which means schools will not lose or gain significantly in cash terms as a result of these changes for at least two years. However, there is no such protection in place for central budgets, and funding reform may therefore have more impact on centrally retained budgets than it does on schools. This paper sets out the main issues that are likely to affect centrally retained budgets

1.2The Government has introduced changes to increase the delegation to schools and to remove the requirement to calculate the central funding transfers to academies. LAs are required to delegate, to schools and academies, budgets for services and funding that would have previously been managed and provided centrally by the LA.

1.3Primary and Secondary Schools can opt to de-delegate some of these services or budgets. In some instances Primary schools may wish to de-delegate services and secondary schools may choose not to or vice versa.

1.4Due to the changes in the way that special schools are funded de-delegation does not apply to special schools. Any elements of funding for the service areas involved will be included as part of any top up funding and special schools will be able to buy into any SLA agreements in place.

1.5Academies are not permitted to de-delegate funding but they can buy into SLA’s where offered by the LA.

2.Delegation of Centralised Services and Potential De Delegation

2.1The table at Appendix A shows the categories of expenditure within the DSG that are currently non delegated but may be subject to some level of delegation in 2013-14. The amounts indicated are those figures currently included within the S251 budget statement for 2012-13 and they include both the direct service costs and the related overheads. Budgets are based on 2012-13 and may change as a result of schools forum decisions.

2.2The Government have determined that the items in Appendix A have to be delegated to schools on a rate per pupil. This has been calculated for each item and the basis of the rate per pupil differs based on the type of expenditure. The basis is included in the description of the budget area; so for instance, behaviour support rate per pupil will be based on prior attainment. As prior attainment is based on specific criteria not all schools will receive funding for this but those that do will receive the rate identified in Appendix A.

2.3The decision on each of the de-delegated items needs to be made separately in both sectors. If primary decide to de-delegate a service but secondary do not, then the LA may not be able to continue providing a service on that basis.

3Schools Consultation

3.1As part of the recent consultation exercise undertaken with all primary and secondary schools, schools were asked about the potential de-delegation of central services.

3.2There were 58 responses to the consultation from a range of stakeholders as detailed in the table below.

Response Percent / Response Count
Primary School / 81.0% / 47
Secondary School / 8.6% / 5
Primary Academy / 3.4% / 2
Secondary Academy / 1.7% / 1
Governor at a Primary School / 1.7% / 1
Governor at a Secondary School / 1.7% / 1
Governor at a Primary Academy / 0.0% / 0
Governor at a Secondary Academy / 0.0% / 0
Union Representative / 0.0% / 0
Other / 1.7% / 1
Other (please specify)
answered question / 58

3.3 In relation to the questions on de-delegation the data only includes responses from those eligible to respond i.e primary school representatives, secondary school representatives and the response termed other that related to an infant school. The data does not include responses from academies where an academy made a response.

3.4The results of the consultation are attached at appendix B. Analysis of the results show that of the responses received both primary and secondary schools were in favour of de-delegation of all the services consulted on.

4Conclusions

4.1The changes introduced by the DfE require schools forum to make decisions on behalf of all primary and secondary schools in relation to the de-delegation of central services and budgets.

4.2This decision does not impact on special schools and academies.

4.3The results of the consultation indicate that for those schools who responded the preferred option for all service areas is to de-delegate the budgets.

5Recommendations

5.1Schools forum are asked to consider the details in the report and make a decision on the delegation/de-delegation of the detailed central services.

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