Schools Forum Meeting
9 JANUARY 2017
Venue:
Warren Wood Primary Academy, Arethusa Road, Rochester, Kent ME1
2UR
Time:
4:00pm to 6:00pm
Agenda
1.
Minutes of the meeting held on 17 October 2016 and matters arising
2.
School Funding Update - Verbal
a. National Funding Formula
b. High Needs National Funding Formula
c. Early Years National Funding Formula
3.
2017- 18 Dedicated Schools Grant Allocation
4.
2017 – 18 Final School and Academy Funding Formula
5.
Schools Block: 2016-17 Centrally Retained Forecast
6.
Date of next meeting
TBC
1
Schools Forum 9 January 2017
Agenda Item 3:
2017-18 Dedicated Schools Grant Allocation
1.
Background
1.1
This report is designed to provide Schools Forum Members with an update on the
initial 2017-2018 DSG allocation as notified to the Council by the EFA (Education
Funding Agency) in December 2016.
1.2
The dedicated schools grant is made up of the following notional funding blocks:
1.3
2.
a)
Schools Block – Pupil numbers (October 2016) multiplied by the SB basic unit
of funding. The LA’s SB allocation is adjusted when a maintained school
converts to academy status.
b)
High Needs Block – based on 2012-13 budgets but clarified by submissions to
the EFA and adjusted for payments made directly by the EFA.
c)
Early Years Block – estimated census pupil numbers multiplied by the EYB
basic unit of funding and adjusted when actual numbers are known.
The Schools Forum is asked to remember the funding in each block is notional and
non-ring-fenced to each individual block. The DSG is used to fund educational
activities in Medway either through budgets distributed directly to schools,
educational providers or centrally retained for education purposes.
Initial DSG Allocation 2017-18
2.1 Table 1 below shows estimated initial DSG allocation – as notified by EFA – before
academy recoupment and high needs deductions have been applied.
Table 1 – Initial 2017-18 Allocation
Schools
Block
£m
High
Needs
Block
£m
Early
Years
Block
£m
Total
£m
166.57
0
0
166.57
0.63
0
0
0.63
High Needs Block
0
37.38
0
37.38
2 Year old Provision
0
0
2.47
2.47
3 Year old Provision
0
0
14.11
14.11
EY Pupil Premium
0
0
0.28
0.28
EY Disability Fund
0
0
0.07
0.07
166.63
37.38
16.94
220.95
Schools Block
ESG
Total
2
2.2
Additional information;
a)
Medway will receive an initial DSG allocation of £220.95m which is an increase of
£6.436m when compared to the 2016/17 allocation of £214.514m mainly due to an
additional:



£0.63m of ESG funding which is now pass ported to the LA through the DSG.
£2.07m additional hourly entitlement for 3 and 4 year olds from September.
£4.483m rebased 2016/17 starting points.
b)
Medway will receive £4,294.99 per pupil as the school block basic unit of funding.
This cost must fund all the funding factors used in the funding formula and is a
reduction of £62.96 (1.45%) per pupil when compared to the £4,357.95 received in
2016/17.
c)
The government announced an additional £130m of high needs funding for 2017-18
of which Medway will receive £0.66m. This is included in the £37.38m shown
above.
2.3
The DSG is calculated initially using the pupil numbers for all schools and
academies in Medway. The EFA will subsequently reduce the Council’s DSG
allocation in respect of schools that are academies, schools which convert to
academies in year, and for High Needs payments made directly by the EFA.
3.
Recommendations
3.1 The Schools Forum is asked to note the amount and deployment of the local
authority’s 2017- 2018 DSG allocation.
Author:
Maria Beaney
Finance Business Partner Education & Schools
21.12.16
3
Schools Forum 9 January 2017
Agenda Item 4:
The Final Schools and Academies Funding Formula 2017-18
1
Background
1.3 At the September and October School Forum meetings Members previously
discussed and agreed the following:










2
The 9 factors included in Medway’s funding formula.
To continue to cap school gains at 1.5% per pupil.
To continue to use the Sparsity tapering and lump sum method.
Agreed the pupil number variations - PAN increases.
Agreed the Growth Fund Payments.
The Council Statutory Retained Functions.
The Council pooled school services - De-Delegations.
To set a lump sum, factor of £112,000.
To remove the mobility and LAC funding factors.
To close the funding gap between primary and secondary schools.
Finial 2017-18 Schools and Academies Funding Formula
2.3 The finial 2017-18 schools and academies funding formula, funding factors remain
the same as the provisional 2017-18 funding formula. Please see appendix 1.
2.4 The funding unit costs remain the same as the provisional formulas expect the lump
sum which has increased by £1,000 to £113,000 per school and academy. Please
see appendix 2 showing the finial funding formula unit costs.
2.5 The Stage 2 of the national funding formula consultation is proposing to keep the
mobility funding factor but at 0.1%, and The Schools Forum have been asked to
reconsider reinstating this factor into Medway’s Funding Formula. Appendix 3 shows
the amounts which would be allocated to each school if this funding factor is
reintroduced to the formula.
3 2017-18 Schools Block Dedicated Schools Grant (SB DSG)
3.1 The Funding Formula is used to distribute the Schools Block element of the DSG to
all mainstream schools and academies fairly and transparently.
3.2 The total SB allocation available for distribution after allowable deductions is
£164,549,016 (£162,575,431 in 2016/17) calculated as follows;
Initial Allocation Schools Block
Less: 15-16 SB Overspend
Less: 2016-17 Growth Fund
Less: Copyright Licenses
Less: Statutory Functions of the LA
Total for Allocation in Funding Formula
£166,628,432
£314,851
£- 1,154,880
£239,000
£370,685
£164,549,016
4
3.3
Table 1 below shows the total funding allocated for each funding factor for 2017-18
and 2016-17 for comparison.
Funding Factor
2016-17
2016-17
2017-18
2017-18
Allocation
Percentage
Allocation
Percentage
£m
Basic Entitlement – Primary
Basic Entitlement – Secondary
Deprivation
LAC
Prior Attainment
EAL
Mobility
Lump Sum
Split Sites
Sparsity
Additional Lump Sum for
Amalgamations
Rates
Exceptional Circumstances
(Listed Building & Monument)
Sub Total
MFG / Cap on Gains
Total Delegated
64.4
62.6
8.1
0.217
11.7
0.384
0.416
10.7
0.11
0
%
40.6%
39.5%
5.1%
0%
7.4%
0%
0%
6.8%
0.1%
0%
0
£m
66.7
62.9
9.4
0
11.2
0.363
0
10.8
0.11
0.01
%
10.5%
38.3
5.7%
0%
6.8%
0.2%
0%
6.6%
0.1%
0.0%
0%
0
0%
1.6
0.9%
1.8
1.1%
0.03
0%
0.03
0.0%
160.3
2.5
162.8
98.4%
1.6%
100%
163.6
1.0
164.6m
99.4%
0.6%
100%
Rounding differences will occur in the above table
3.4 Additional Information:
a)
Primary pupil numbers (excluding nursery pupils and PAN variations) have increased
from 23,393 in 2016-17 to 23,957 in 2017-18; an increase of 564 pupils.
b)
Secondary pupil numbers (pre-16) have reduced from 15,190 in 2016-17 to 15,158 in
2016-17; a reduction of 32 pupils.
c)
In 2017-18 79.3% of funding is distributed through the basic entitlement factor
compared to 80% in 2016-17.
d)
In 2016-17 92% of funding is distributed through pupil lead factors compared to 93%
in 2016-17.
e)
No LAC and mobility funding payments will be paid to Medway schools in 2017-18.
4
Next Steps
5
a. The Forum are asked to approve:



Reinstate the mobility funding factor to the funding formula?
At what unit cost should the mobility funding factor be reinstated - 0 .1% or
what %?
Medway’s Final Schools and Academies Funding Formula 2017-18. This
will then be reported to the Council’s Cabinet on 17 January 2017 for
‘political approval’ – as per EFA instructions.
4.2 The Funding formula allocations for 2017-18 (i.e. the Schools Block allocation) will be
notified to schools and academies as follows;
28 February 2017:
31 March 2017:
Medway to confirm allocations to schools
EFA to confirm allocations to academies
Report Author:
Maria Beaney - Finance Business Partner Education
05.01.17
6
Appendix 1
The Schools and Academies Funding Formula.
1
Each year the government issues guidance to ensure each local authority
calculates its school funding using the same methodology but it’s a local decision
on which of the available 13 funding factors a local authority chooses to introduce
into its funding formula.
2
There are 11 funding factors included in Medway Schools and Academies Funding
Formula and they are:
a) Basic Entitlement
A compulsory factor which assigns funding on a per pupil basis for each school
or academy based on the October census multiplied by a unit funding rate.
There are different funding rates for key stage 3 and 4 as well as primary age
pupils.
b) Deprivation
A compulsory factor which assigns funding to pupils from deprived areas. LAs
can either use the free schools meals indicator and/or the income deprivation
affecting children Index (IDACI).
Medway uses both and different funding rates are attached to each level of the
IDACI system with different funding rates for primary and secondary.
c) Prior Attainment
This is an optional factor which acts as a proxy indicator for low level, high
incidence special educational needs.
Funding is applied for primary pupils not achieving the expected level of
development within the early year’s foundation stage and for secondary pupils
not reaching L4 at KS2 in either English or maths.
d) Looked After Children
This is an optional factor where a school or academy is paid a unit cost for any
child who has been a looked after child for one day or more as recorded on the
LA’s SSDA903 return as at 31 March 2015. This data is mapped to the schools
and academies using the January school census data. No longer used by
Medway.
e) English as Another Language
This is an optional factor where EAL pupils may attract funding for up to 3 years
after they enter the school system based on census data.
f) Pupil Mobility
This is an optional factor which measures the pupils who entered a school
during the last 3 years who did not start in August, September or January of a
reception class. There is a10% minimum threshold; therefore, if a
school/academy has a 12% mobility factor, 2% (12% - 10%) of the
school/academy pupils will attract mobility funding.
No longer used by Medway.
g) Sparsity
7
This is an optional factor. In order to qualify for this funding the school or
academy must meet two criteria set by the government; first they are located in
an area where pupils would have to travel significant distance to the nearest
school; and second, they are a small school.
Primary schools/academies must have a sparsity distance greater than 2 miles
and an average year group of less than 21.4
Secondary school/academies must have a sparsity distance greater than 3
miles and an average year group of less than 120.
All through school/academies must have a sparsity distance greater than 2
miles and an average year group of less than 62.5.
The maximum funding is £100,000 tapered (pro-rata) to the class size and
distance.
h) Lump Sum
This is an optional factor where each school will receive a maximum lump sum
up to £175,000. The lump sum may be different for primary and secondary
schools/academies but Medway has the same lump sum for both primary and
secondary schools/academies at £113,000.
i) Split Sites
This is an optional factor which is designed to help support schools which are
located on separate sites. The school sites must be separated by a road.
Schools sharing facilities, federated schools and schools with remote sixth forms
are NOT eligible for split site funding.
j) Rates
This is an optional factor which funds a school or academy based on their
estimated rates bills for the coming year. Medway also adjusts the rates funding
to account for any over or under funding of rates from the previous financial
year.
k) Exceptional Premises Factors
This is an optional factor where LAs can apply to the EFA to use exceptional
factors relating to premises. These factors must be more than 1% of a schools
budget and apply to fewer than 5% of Medway schools and academies. There
are two EFA approved exceptional factors for Medway. Firstly a listed building
factor and secondly an Amalgamated Schools/Academies factor.
3
As well as the 11 factors above the funding formula must also distribute at least
80% of the funding through pupil led factors – i.e. Sections A- F above.
4
The funding formula must also ensure the government’s pre-16 minimum funding
guarantee (MFG) promise, where no mainstream school or academy will loss more
than 1.5% of their funding on a per pupil basis is kept. In order to fund this promise
the Schools Forum has agreed to cap school gains on a per pupil basis at 1.5%.
The Schools Forum reviewed this cap in October 2015 and agreed for the cap to
remain in place for 2016-17.
8
Appendix 2
Pupil Lead Factors for 2017-18 Final Funding Formula
Local Authority Funding Reform Proforma
LA Name:
LA Number:
Medway
887
Pupil Led Factors
Reception uplift
Yes
Description
1) Basic Entitlement
Age Weighted Pupil Unit
(AWPU)
Pupil Units
49.00
Amount per pupil
Pupil Units
Sub Total
Primary (Years R-6)
£2,784.24
23,957.33
£66,702,966
Key Stage 3 (Years 7-9)
£4,153.02
9,262.00
£38,465,271
Key Stage 4 (Years 10-11)
£4,153.02
5,896.17
£24,486,898
Description
FSM % Primary
Primary
amount per
pupil
Secondary
Eligible proportion Eligible proportion
amount per pupil of primary NOR
of secondary NOR
Sub Total
£412.84
3,167.09
£1,307,502
N/A
£0
IDACI Band F
£50.11
£150.33
3,255.35
1,973.31
£459,774
IDACI Band E
£75.17
£225.51
3,677.57
2,144.98
£760,158
IDACI Band D
£154.90
£464.70
2,881.55
1,653.16
£1,214,575
IDACI Band C
£470.17
£1,410.51
1,156.95
618.90
£1,416,933
IDACI Band B
£746.77
£2,240.31
1,604.67
766.85
£2,916,306
IDACI Band A
£796.14
£2,388.42
688.07
331.56
£1,339,694
2) Deprivation
Primary
amount per
pupil
Description
3) Looked After Children (LAC)
4) English as an Additional
Language (EAL)
5) Mobility
LAC X March 16
Secondary
Eligible proportion Eligible proportion
amount per pupil of primary NOR
of secondary NOR
£0.00
EAL 2 Primary
266.48
£176.93
EAL 3 Secondary
Pupils starting school outside of
normal entry dates
Description
Low Attainment % new EFSP
£0
1,273.11
£526.95
Sub Total
£225,252
262.28
£138,209
£0.00
£0.00
1,748.05
48.74
£0
Weighting
Amount per pupil
Percentage of
eligible pupils
Eligible proportion
of primary and
secondary NOR
respectively
Sub Total
2,976.55
£7,436,918
3,583.65
£3,804,760
38.50%
£2,498.50
Low Attainment % old FSP 73
12.64%
12.47%
6) Prior attainment
Secondary low attainment (year 7)
48.02%
£1,061.70
Secondary low attainment (years 8
to 11)
22.41%
24.11%
Other Factors
Lump Sum per
Lump Sum per
Secondary School
Primary School (£)
(£)
Factor
7) Lump Sum
£113,000.00
£113,000.00
8) Sparsity factor
£100,000.00
£100,000.00
9
Lump Sum per
Middle School (£)
£100,000.00
Lump Sum per Allthrough School (£)
£100,000.00
Schools Forum 9 January 2017
Agenda Item 5:
Schools Block: 2016-17 Centrally Retained Forecast
1.
Introduction
1.1
At the October 2015 and December 2015 Schools Forum meetings, members
agreed the local authority (LA) centrally retained funding, from the Schools Block
(SB) Dedicated Schools Grant (DSG) for 2016-17.
1.2
This report provides an update on the actual spend to date (December 2016) and
the forecast for the financial year (as at the round 2 monitoring) when compared to
the approved budget.
1.3
At the end of the financial year any underspend or overspend will be added or
deducted from the SB DSG for re-distribution in 2018-19.
2.
2016-17 Centrally Retained Financial Report
2.1 Table 1 below shows the centrally retained budgets approved by the Schools Forum
Members. It also shows the actual spend to date, the forecast outturn and any
variance to budget.
2.2 The current forecast shows an estimated overspend of £45,842 which has arisen
because one schools approved (October 2015) PAN increase has been dispensed
by the LA instead of the EFA. This cost has been recovered via the funding updates
and whilst the centrally retained budgets will be overspent the SB budgets will have
an underspend to offset this overspend.
Table 1 – 2016-17 School Growth Fund
Budget
£
Growth Fund:
1) Schools/academies that admit
pupils above their PAN
2) Schools/academies with
approved PAN increases.
3) New Class funding
De-Delegations:
4) Support for Minority Ethnic Pupils
or Underachieving Groups
5) Assessment of Eligibility of Free
School Meals
6) Trade Union Facilities
Statutory Functions of the LA:
£0
Actual
Forecasted
Variance:
Spend to Spend for
Budget v
Date
the year
Forecast.
(Dec 16)
2016-17
over/(under)
£
£
£
£52,355
£52,355
£52,355
£412,230 £240,717
£405,717
(£6,513)
£605,000 £440,000
£605,000
£0
£79,054
£8,324
£79,054
£0
£12,649
£11,250
£12,649
£0
£19,149
£11,028
£20,545
£1,396
10
7) Co-ordinated Pupil Admissions
Processes
8) Schools Forum Administration
Total
£365,685
£365,685
£0
£5,000
£0
£5,000
£1,498,767 £763,674 £1,546,005
£0
£47,238
2.3 The Forum is asked to note this report.
Report Author:
Maria Beaney - Finance Business Partner Education
20.12.16
11
£0