School Funding 2016-17 & Forward Financial Planning Shropshire - - PowerPoint PPT Presentation

School Funding 2016-17 & Forward Financial Planning

Shropshire Governors/Headteachers/School Business Managers Lord Hill Hotel, Shrewsbury Wednesday 7 October 2015, 4.30pm to 6.00pm

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• Welcome and introductions
• Presentation covers 2 key areas:

School Funding 2016-17 – update on the Government’s announcement of funding for schools for next financial year Forward Financial Planning – the Shropshire picture and the importance of forward financial planning by schools

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School Funding 2016-17

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School Funding 2016-17

Background

• Significant reforms to the local school funding formula

since 2012-13

• Local authority, through and with Shropshire Schools

Forum, have managed the required formula changes

• Government acknowledges current national schools

funding system is unfair and out-of-date

• Government’s aim is to move to a National Fair

Funding Formula

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School Funding 2016-17

Headlines

• Shropshire’s Schools Block per pupil unit of funding in

2016-17 will be the same value as in 2015-16 including the additional Minimum Funding Level allocation of £10.3m

• Minimum Funding Guarantee (MFG) will continue in 2016-

17 at minus 1.5%

• No proposed changes to Shropshire’s local funding

formula in 2016-17

• Individual school budget shares for 2016-17 will be based
• n October 2015 census data and published with

maintained schools late January/early February 2016. Academies will receive notification from the EFA.

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School Funding 2016-17

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Allowable Formula Factors

• 1. Basic Entitlement (Age Weighted Pupil Unit)
• 8. Lump Sum

2. Deprivation

• 9. Split Sites
• 3. Prior Attainment
• 10. Rates
• 4. Looked After Children
• 11. Private Finance Initiatives
• 5. English as an Additional Language
• 12. London Fringe
• 6. Pupil Mobility
• 13. Post 16
• 7. Sparsity
• 14. Exceptional Premises Factors

Government’s Manifesto 2015

• Amount of money following a child into school will be

protected

• Continuation of the pupil premium, protected at

current rates

• Support for families by providing free meals to all

infants

• Make schools funding fairer

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Forward Financial Planning

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Understanding the Shropshire Picture

Demographic Challenge

• Shropshire is bucking the national trend with overall

pupil numbers forecast to fall by 3.2% by 2018 (3.7% in primary and 2.6% in secondary)

• Shropshire will have more unfilled places by 2018
• Housing developments are not generating material

growth in pupil numbers

• In the period 2004 to 2013, there were 10,795 housing

completions in Shropshire while pupil numbers fell by 3,750 (9.6%)

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Understanding the Shropshire Picture

Impact on Dedicated Schools Grant (DSG) and Individual School Budgets

• Falling rolls will reduce the overall DSG received by

Shropshire over the next 4 years by approximately £5m

• Shropshire received £4,402 per pupil in 2015-16
• Individual schools with falling rolls will receive less

funding as the majority of funding is based on pupil- led factors

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Understanding the Shropshire Picture

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Var from 2015-16 Var from 2016-17 Var from 2017-18 Var from 2018-19 Total variations NOR £ NOR £ NOR £ NOR £ NOR £ Small Primary (50 on roll) 361

• 4
• 12,499
• 8
• 25,438
• 7
• 22,466
• 19
• 60,042

Medium Primary (180 on roll)

• 12
• 39,849
• 3
• 9,628
• 13
• 45,025
• 8
• 28,986
• 36 -123,488

Large Primary (420 on roll)

• 17
• 56,741
• 14
• 47,834
• 2
• 7,737
• 17
• 63,824
• 50 -176,136

Secondary (700 on roll)

• 53
• 265,521
• 23
• 105,663
• 5
• 24,204

6 21,770

• 75 -373,618

Projected number on roll and budget variances 2016-17 to 2019-20

2016-17 2017-18 2018-19 2019-20

Understanding the Shropshire Picture

Pupil Place Planning

• Fall in pupil numbers not evenly spread across the county

– some areas will see modest growth in pupil numbers

• In next 4 academic years, through to 2019/20, an

additional 8 classrooms will be required for this growth

• Five planning areas are affected: Market Drayton,

Oswestry, Shifnal, Shrewsbury and Whitchurch

• A consultation on a School Place Planning paper will get

underway later this term

• Meetings will take place in each of the five planning areas

to consider the options

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Understanding your Budget

What income streams do schools have? Budget Share Pupil Premium High Needs Top-Up Funding Other Specific Grants Donations/Lettings Other

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Understanding your Budget

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Understanding your Budget

Impact on income from:

• Demography
• Number of free school meal (FSM) pupils
• High Needs pupils
• Sparsity
• Minimum Funding Guarantee (MFG) – does not

protect against a falling roll

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Understanding your Budget

What expenditure commitments do schools have? Staffing accounts for over 75% of school revenue expenditure Cost pressures – pay awards, incremental progression, increasing employers pension contributions, non-pay inflation costs Timescales for making reductions – take early action Priorities in line with School Development Plan

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Understanding your Budget

School Deficit Budget Protocol for Maintained Schools

• Schools planning a deficit budget must first get approval

from the local authority

• Schools must follow the Protocol for Schools Planning

and Managing a Deficit Budget, available on the Shropshire Learning Gateway

• Schools will only be allowed a deficit budget in

exceptional circumstances

• Schools placed in Special Measures will not be allowed a

deficit budget

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Understanding your Budget

Schools Financial Value Standard (SFVS)

• The SFVS is a mandatory requirement for all local

authority maintained schools

• Designed to help schools manage their finances and

give assurance that they have secure financial management in place

• It is primarily aimed at governors
• Schools must complete the SFVS assessment form
• n an annual basis and return a copy, signed by the

Chair of Governors, to the local authority by 31 March each year

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Financial Planning Tools

q Modelling Tool q Benchmarking Tool

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Modelling Tool

• Allows schools and governing bodies to analyse and model

future year budget shares based on projected numbers

• Provides headteachers and governing bodies with a method
• f appraising and managing future year budgets, in particular

where these budgets are likely to reduce

• Uses latest 2015-16 funding values to estimate future year

budget shares

• Shows the local authority’s forecast aggregate number on

roll through to 2019-20 for the linked secondary school

• Federation/collaboration modelling tool is available

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32360

2015-16 2016-17 2017-18 2018-19 2019-20 Oct 14 Census Oct 15 Census Oct 16 Census Oct 17 Census Oct 18 Census Nor Nor Nor Nor Nor Reception Uplift 4+ 13 10 11 6 6 5+ 20 14 10 11 6 6+ 17 19 13 9 11 7+ 17 17 19 13 9 8+ 22 15 15 15 15 9+ 23 15 15 15 15 10+ 19 15 15 15 15 11+ Total 131 105 98 84 77 Local Authority NOR Forecast (without housing) 131 120 109 94 88

32360 An Example School

2015-16 2016-17 2017-18 2018-19 2019-20 Act Est Est Est Est Nor 131 105 98 84 77 FSM % 6.11% 6.11% 6.11% 6.11% 6.11% LPA % 4.69% 4.69% 4.69% 4.69% 4.69% £ £ £ £ £ Pupil Led 421,769 338,884 316,699 271,313 247,932 Fixed 74,170 74,170 74,170 74,170 74,170 AEN/SEN 22,542 18,068 16,863 14,454 13,250 MFG Total Estimated Budget Share £ 518,481 431,122 407,732 359,937 335,352 Budget share variation £ to prev

• 21,276
• 87,359
• 23,390
• 47,795
• 24,585

% variation to prev yr

• 3.94
• 16.85
• 5.43
• 11.72
• 6.83

LA Budget Share Forecast £ 518,481 482,115 445,173 393,957 372,663 2015-16 2016-17 2017-18 2018-19 2019-20 Cumulative primary NOR change for linked secondary school

• 125

Act Est Est Est Est area. £ £ £ £ £ Estimated De-delegation 3,228 2,587 2,415 2,070 1,897 £ £ £ £ £ Forecast Funding 3,958 4,106 4,161 4,285 4,355 Shropshire Average Funding 4,109 4,118 4,124 4,127 4,130 Year Ending March 2010 March 2011 March 2012 March 2013 March 2014 £ £ £ £ £ Final Closing Revenue Balance 48,658 19,601 26,510 25,078 42,535

An Example School

Shropshire Council - School Funding Modelling Tool

Estimated Future Years Budget Shares Funding Per Pupil Historic Closing Revenue Balances De-delegation Linked Secondary School Area Data

131 105 98 84 77 131 120 109 94 88

20 40 60 80 100 120 140 Oct 14 Census Oct 15 Census Oct 16 Census Oct 17 Census Oct 18 Census

Pupil Forecast 2016-17 to 2019-20

School Modified Forecast LA Forecast (without housing)

£518,481 £431,122 £407,732 £359,937 £335,352 £518,481 £482,115 £445,173 £393,957 £372,663

£- £100,000 £200,000 £300,000 £400,000 £500,000 £600,000 2015-16 2016-17 2017-18 2018-19 2019-20

Budget Share Forecast 2016-17 to 2019-20

School Modified Budget £ LA Estimated Budget £

Support with the use of this tool can be provided by the traded Schools Finance Support Service. (Included at gold level)

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Benchmarking Tool

• Benefits of benchmarking:

v Focus on planning and managing your budget v Identify areas of improvement v Set targets for improvement v Achieve best value – quality vs. cost v Mandatory element of Schools Financial Value Standard (SFVS)

• Benchmark against similar funded schools (Shropshire)
• Comparison criteria - uses a range of factors such as

numbers on roll,% FSM, % low prior attainment

• Output produced using Consistent Financial Reporting

structure (choice of either total spend or spend per pupil)

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Review of Efficiency in the Schools System

Key findings from Department for Education review in 2013 1.Deploy workforce effectively - focus on developing high quality teachers 2.Use evidence to determine right mix of teaching and non-teaching staff 3.Employ or have access to a skilled school business manager who takes

• n a leadership role

4.Make good use of financial benchmarking information to inform the school’s own spending decisions 5.Make use of school clusters, sharing expertise, experience and data, as well as accessing economies of scale when making shared purchases 6.Manage down back office costs and running costs 7.Have in place a strong governing body and leadership team that challenges the school’s spending

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Collaboration/Federations

Perspective from two Shropshire headteachers q Nicola Maddocks – Executive Headteacher of the Westcliffe Federation q Alan Doust – headteacher of The Community College, Bishop’s Castle, part of the South West Shropshire Learning Trust

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Are there any questions?

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Further Support Available

• Traded Finance Support Team – budget monitoring

and financial planning support available through a service level agreement

• Financial Planning Workshops – available to invited

schools in November

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