Agenda item

To receive and consider the 2021/22 Revenue Outturn report.

The Forum considered the 2021/22 Revenue Outturn Report.

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

·       Lynne Samuel advised that no changes were expected but the report was still subject to external audit.

·       At the time of budget setting, a deficit of £2.6million was anticipated on the DSG for the 2021/22 financial year.  Outturn for the year showed a net overspend of £4.2million, representing 2.6% of total DSG income for the year.  Together with the brought forward deficit balance, the cumulative DSG deficit at the end of 2021/22 sat at £10.04million.

·       With regards to the Schools Block, key movements in the forecast were around Academy recoupment.  The final academy recoupment adjustments for the year were £94,000 below that anticipated in the forecast, largely due to timings of business rates adjustments relating to school conversions.  There had been no impact on any individual schools.

·       There had been an underspend of £84,000 for de-delegation supply cover. 

·       The outturn on maternity supply cover was £84,000 lower than forecast, with an overall outturn of £316,000 for the year.  This was paying for school staff (teaching and support staff) that were on maternity and paternity leave, with forecasting difficult in advance of payroll processing.  Consideration was being given as to how mid-year reporting on this issue could be improved.  The funding formula in terms of how de-delegated budgets were set for that item, had been amended slightly.  The same level of underspend was not anticipated in the future but would be kept under review.  Forum members were reminded that a commitment had been made to undertake an annual review of de-delegated items as part of the budget setting process.

·       The Chairman questioned how much had been allocated to this year’s budget for maternity and sickness in total, considering there was an £84,000 underspend last year.  Katherine Vernon indicated that there was £281,000 for 2023/24.  Lynne Samuel stated that October was the mid-point of the year.  The October meeting revenue monitoring report would include information about actual costs against the budget and assumptions made.

·       The final Growth Fund expenditure for the year was in line with that expected in the forecast.  Whilst there had technically been an overspend in year, this had been planned for and the overspend had been funded from brought forward Growth Fund reserves.

·       Derren Gray commented that with regards to the Growth Fund, this had come in under the anticipated figure because additional places in primary and secondary had not been actioned.  It was clarified that the overspend relative to the in year planned figure was £69,000, which had come out of reserves.

·       With regards to the High Needs Block, the outturn on the High Needs Block had reported a £4.3million overspend against allocated funding of £23.4million (18.5%).  An increased level of activity had been assumed in the last year but the number of funded EHCP top ups had been significantly higher.  Budget setting assumptions were set on a 14% increase in total funded EHCPs over the course of the year, however the increase actually experienced had been almost 30%.

·       The proportion of funded ECHP top ups out of Borough had increased from 23% to 28%.

·       Lynne Samuel referred to the cost profile in some detail.  The complexity of need and activity was driving the pressure. 

·       It was noted that inflationary requests from independent and non-maintained providers were considered as part of contractual arrangements in place.  Requests were reviewed based on cost analysis providers must submit, with uplifts capped in line with the South West SEND Framework that WBC was part of.  The contractual inflation impact for Independent and Non-Maintained Special Schools was £20,000 for the 2021/22 academic year, which represented around 0.2% of total spend.

·       The Chairman asked what assumptions had been taken for inflation on independent and non-maintained schools for 2022/23.

·       Lynne Samuel highlighted balances and reserves.  The Local Authorities (Capital Finance and Accounting) Regulations 2020 had altered the way in which local authorities were required to account for DSG deficits.  This required the establishment of a new statutorily ring-fenced unusable reserve – the Dedicated Schools Grant Adjustment Account.

RESOLVED:  That the 2021/22 Revenue Outturn Report be noted.