Agenda item

To consider the 2021/22 Revenue Monitoring Report.

The Forum received the 2021/22 Revenue Monitoring Report.

During the discussion of this item, the following points were made:

·       Katherine Vernon advised that the in-year deficit was projected at £2.9million down from £3,1million.  This movement related primarily to the Schools Block.  A decrease had been seen against the forecast Growth Fund expenditure for this year. 

·       With regards to the High Needs Block, there was a small net movement of £65,000.

·       Increased expenditure of around £465,000 related to in year academic movements.  There was an increase in funding to Wokingham mainstream schools, Further Education colleges and Independent Non-Maintained Special Schools.

·       The above has been largely offset by the £400,000 for the Foundry which would not be drawn down this year.  Through ongoing discussions with the Foundry, Officers were aware that there remained a significant financial challenge.

·       Katherine Vernon provided an update on contingencies held.

Ø  There had not been any calls on the Schools Block De-delegated contingencies. 

Ø  With regards to the Early Years Provider Reserve Fund, in late November the formal notification of the adjustment for the last financial year had been received.  There was a clawback of £90,000, which was being investigated further.  A meeting would be held with the Early Years Task and Finish Group to discuss this and the rates for the next financial year.

Ø  There had been a reduction in forecast for the Growth Fund.

Ø  Discussions around extra mid phase secondary and primary classes that might be needed from January, continued.  The forecast for those had been reduced to 3 months from 7 months.  Katherine Vernon advised that this was important for the Growth Fund as whatever was left over this year could be carried over to the next year, so less would be needed from the Schools Block to cover the Growth Fund for next year.  For next year £1.8million would be needed for growth, but this would reduce should the £160,000 carry forwards.  £1.6million was estimated as growth fund income into the Schools Block for next financial year.

·       Ian Morgan asked whether the claw back would be taken from reserves.  Katherine Vernon indicated that the claw back would need to be factored in the rates for 2022/23.

·       Katherine Vernon confirmed that the clawback had been unexpected.

·       The Chairman asked what the level of Early Years reserves was.  Katherine Vernon commented that this was being worked on.

·       Lynne Samuel clarified that the clawback referred to the last financial year.  Officers had to consider the impact of the clawback for the last year, look at how this impacted the current year’s position, and how this would impact on recommending funding levels for the following financial year.

·       Officers would confirm the reserve funds for the current financial year.  Ian Morgan commented that he believed it was approximately £200,000.

·       Ian Morgan questioned whether the Early Year allocation would be late.  It was hoped that the hourly income rates for WBC would be available prior to Christmas.

·       The Chairman commented that the profiling of the current High Needs Block demand had enabled the recognition of the shift in profile of young people and their lowered overall funding requirements.

·       Lynne Samuel reminded the Forum that when the High Needs Block budget had been set, the scale of the financial challenge around the Foundry for this financial year, had been known, which was why £400,000 had been earmarked as a line in the budget.  Whilst the £400,000 had since been removed, the financial challenge remained.  Foundry’s reserves were considered to be at a sensible level.

·       The increasing number of Education, Health and Care Plans created issues around provision and a financial challenge across the Borough.

·       Ginny Rhodes referred to the Resources Bases detailed on page 38 of the agenda.  She commented that the consultation regarding resource spaces had been ongoing for approximately 4.5 years.  She felt that there was still no clarity for schools, which she felt was an unacceptable strain on school’s finances and a challenge to financial planning.

·       Ginny Rhodes went on to ask where the information regarding mainstream Post 16 Resources had come from, as the figures were unfamiliar to her.  Katherine Vernon commented that this was top sliced and came from historic data, which had not been updated for several years.  It was the number that the Department for Education recognised as the academy secondary schools having in post 16 high needs places.  Work would be undertaken to update this.

·       Paul Gibson and Shirley Austin welcomed the review of the post 16 resource spaces and agreed that the figures provided with regards to their schools were unfamiliar.  Sian Lehrter confirmed that the funding was provided as part of academies general annual grant. 

·       The Chairman questioned whether the sections for income could be shown above the sections of expenditure in future.

·       Derren Gray referred to the empty places in the Resource Base.  He noted the forecast and actuals for the primary settings and commented that work was being undertaken on the number of places that would be funded, going forwards.  He requested an update on this and questioned the actuals figures for the secondary places.  Lynne Samuel indicated that this information could be updated and made clearer.  There were Service Level Agreements in place for some secondary schools which Finance would not always have access to.  Ginny Rhodes commented that she believed that the numbers provided for secondary schools were the actual number for September.  The Oaks was at 20 because although it had capacity for 25 pupils, it was winding down and was not admitting for Year 7. 

·       The Chairman commented that it would be helpful to understand the actual place numbers for Chiltern Way.  Lynne Samuel indicated that the table could be split out for Chiltern Way in the same way as other schools.

·       Sara Attra commented that it would be useful to have the band value for the resource spaces in future reports.

RESOLVED:  That the report and the forecast position for the 2021/22 year be noted.