Agenda item

To receive and consider the Budget Monitoring Report

The Forum considered a report, presented by the Interim Schools Finance Manager, on Agenda pages 19 to 24 together with clarifications provided on Agenda page 17 as a result of questions at the Schools Forum Briefing. 

The Interim Schools Finance Manager drew the attention of the Forum to columns on Appendix A outlining the differences between the budget and the actual figures in the 2016/17 Budget.   She stated that the figures included in-year adjustments in funding based on revised allocations in the Direct Schools Grant (DSG) for 2015/16 being confirmed after the budget had been finalised (Agenda p 17 point 8), this sum being carried forward to the 2016/17 Budget as agreed at the Forum on 18 May 2016.  Due to this, and a brought forward surplus from General Funding, the reserves going forward were, whilst lower than budgeted, an increase on the June figure to £552k. 

In response to questions as to the likelihood of an injection of funds into next year’s budget following finalisation of allocations in the DSG, the Interim Schools Finance Manager commented that this information was not currently available and that they could therefore not forecast any changes to the DSG for 2016/17. 

The Chair highlighted that the budget had been overspent by over £1 m and indicated a number of lines that were significantly overspent.  These were:

·       1.2.4 Fees for Independent Special Schools

·       1.3.3 Education Out of School

·       1.4.10 Pupil Growth/Infant Class Size

·       1.6.5 Miscellaneous

In response to questions regarding Fees for Independent Special Schools, the Interim Assistant Director of Learning and Achievement stated that the SEN Team had been approached for further information on this.  A paper was circulated for consideration by the Forum containing data relating to the nature and costs of placements in the last year and the Interim Assistant Director of Learning and Achievement suggested that the paper highlighted issues around transition into KS 1 and when moving from KS2 to KS3, particularly in relation to pupils with ASD or SEMH.  He commented that the need to accommodate pupils who would normally have attended Southfield Special School had impacted costs, but indicated that this would be a short term situation and was not expected to impact the 2016/17 Budget to the same degree.  He also clarified that any cost relating to the Academisation of Southfield was being borne by the Council.

Jay Blundell, Headteacher of Foundry College, commented that Foundry College had taken pupils from Southfield Special School and had funded this.

Following discussion, the Chair clarified that the first two lines listed above were responsible the larger proportion of the overspend and that the Schools Forum had less influence over these amounts.

The Forum questioned the amount listed under 1.6.5 Miscellaneous as it exceeded the permitted maximum of 0.1% of the Schools Budget by £168 k.  The Interim Schools Finance Manager circulated a paper detailing a breakdown of this amount, which was attributable to internal recharges. 

Concerns were raised about the overspend in general and about the internal recharges specifically which make up a significant part of it.  The Interim School Finance Manager indicated that the figure was a fixed rolling figure.  The Chair referred the Forum to a figure at the bottom of Appendix A listed as Central Overhead Costs and requested clarification as to whether this related to the portion of Miscellaneous Expenses attributed to internal recharges or was additional to this amount.  The Interim School Finance Manager indicated that internal recharges were an integral part of the provision and suggested that it could be listed separately from the Miscellaneous Items in future for clarity.  She also clarified that a pre-existing limit to central expenditure was no longer in place.

The Vice-Chair questioned the amounts for Early Year Contingencies (1.1.3) and School Specific Contingencies (1.1.2), seeking clarification as to what they are and the likely spend and as to whether the amounts or any surplus would go back into the budget at the end of the year as this would improve the position of the 2016/17 Budget.  This clarification is attached to the minutes.

Actions: That

·       internal recharges be listed separately from Miscellaneous Expenses and extracted from other lines in future;

·       clarification be provided in the minutes as to whether internal recharges are still being spread throughout the other budget lines as well as being included in Miscellaneous Expenses;

·       clarification be provided in the minutes as to the status of the contingencies budgets listed in the Budget Monitoring Report; and

·       clarification as to the status of the forecast deficit in the light of this.