24 June 2015 Jan Powley and Kim George Finance Administrators and Bursars Group

 Coffee and Registration  Introduction  LMS Team Update  Maternity Recompense  School Funding  Best Practice  Leasing  Coffee Break  FPS Advance.net Agenda

 All schools – complete the recompense form available on the grid  Confirm as soon as a back to work date is known  Scheme 1 Schools – no change to system  Recompense via monthly income allocation  Scheme 2 Schools – automatic electronic system  Automatic generation of recompense  Periods 2 and 3  Childcare vouchers Maternity Recompense

School Funding Jan Powley

 Current spending on schools in England relatively protected  3.0% real terms rise in expenditure from 2010 to 2014  A number of reforms made to the funding system – PPG, simpler funding formulae  Even before PPG a substantial level of funding targeted at deprivation School Funding

 In funding per pupil was 35% higher amongst the most deprived set of primary schools than amongst the least deprived  41% higher amongst the most deprived secondary schools than the least deprived  By the figures have increased to 42% and 49% respectively as a result of PPG School Funding

 Squeezes on public sector pay mean actual costs for schools were likely to have increased by less than inflation  This may explain why the school workforce has not fallen since 2010  450,000 teachers – number has held steady  Increase in TA’s from 210,000 to 240,000 by 2013 School Funding

 However, significant cost pressures are now emerging  Overall pupil numbers growing by 7%  Cost of employing staff will rise  NI increases due to the end of contracting out  Increased employer pension contributions  Upward pressure on public sector pay levels if private sector earnings continue to recover  Costs to schools estimated to increase by 11.7% between and School Funding

 Each LA receives DSG which it has to spend on schools  Can retain some money to spend on central services for all LA maintained schools  LAs allocate the vast majority to schools using a locally-determined formula School Funding changes

YearDescription of Reforms Specific grants streamlined into DSG Introduction of PPG More responsibilities devolved to maintained schools Extension of PPG to cover pupils eligible for FSM in the past six years – “Ever 6” Introduction of simpler local funding formulae PPG level set higher for primary schools PPG increased by more for primary schools Reforms to allocation of grant to LA’s Changes to School Funding System

 Since 2010 a cash-terms freeze in all existing school funding per pupil  Creation of PPG  Net result is that the most deprived schools have seen the largest increases in funding  Smaller increases in less deprived schools  In some cases falls in funding per pupil 2010 Spending Review Settlement

 PPG initially set at £488 eligible for FSM  Expanded to FSM6 – Ever 6  Higher level to primary schools £1,320  Secondary £935  Differentiation justified on the basis that early intervention is more effective  Improve attainment of disadvantaged pupils ready for secondary school Policy Background

 Grants to LAs (DSG) not based on an explicit formula since 2004  Allocations based on % increases in funding per pupil until the cash freeze  From 2015 a minimum per-pupil funding formula for DSG  If an LA receives less than the minimum their grant is topped up  Luton receives more so its grant is frozen in cash terms  Government to introduce a national funding formula ‘when the time is right’ Policy Background

 Until LAs used a wide array of different and historical factors in their own formulae to allocate funding to schools  Complex and arbitrary system  All LAs now use simplified local school funding formulae  Has reduced dependence on out of date factors and increased transparency  Used by EFA to fund academies  Central services now passed to individual schools/academies – can be de-delegated for maintained schools at discretion of schools forum members Funding for schools

School Budget Share Basic entitlement Deprivation Looked After Children Mobility Prior Attainment English as an Additional Language 6 th Form Lump Sum Rates London Fringe Split site Private Finance Initiative Sparsity School budget share funding factors – the funding formula Pupil Led (80%) Institutional (20%) 5

 Population is rapidly expanding – primary school population 8% between 2010 and 2014  Between 2016 and % rise forecast in primary and 10% in secondary  Significant pressures on the cost of staff  Upward pressure on public sector pay  Pension and NI costs  11.7% % (assuming OBR’s assumptions for likely growth in public sector earnings Future Challenges

 If cash-flat continues real terms cut of 9% per pupil  Rising to 12% if OBR’s public sector pay assumptions are factored in Future Challenges

 Revisions to SFVS – subject of consultation about 3 additional questions  2 additional questions are to be added  Both are additions to Section A – The Governing Body and School Staff  Question 8 – Have your pay decisions been reached in accordance with a pay policy reflecting clear performance criteria? Best Practice

 Question 9 – Has the use of professional independent advice informed part of the pay decision process in relation to the headteacher?  Frequently occurring “in part” responses  Question 1 – Does the Governing body have adequate financial skills among its members to fulfil its role of challenge and support in the field of budget management and value for money? Best Practice

 Question 15 – Does the school maintain its premises and other assets to an adequate standard to avoid future urgent need for replacement?  Question 23 – Does the school have an appropriate business continuity or disaster plan, including an up to date asset register and adequate insurance?  Monitoring of the SFVS Action Plan  Review and report back to Governors Best Practice

 Copyright Licenses- purchased centrally on behalf of all state funded schools in England  Christian Copyright Licensing International (CCLI) – new for  Copyright Licensing Agency (CLA)  Education Recording Agency (ERA)  Filmbank Distributors Ltd (for the PVSL) (Public Video Screening Licence)  Mechanical Copyright Protection Society (MCPS) – new for  Motion Picture Licensing Company (MPLC)  Newspaper Licensing Authority (NLA)  Performing Rights Society (PRS) – new for  Phonographic Performance Limited (PPL) – new for  Schools Printed Music Licence (SPML) Best Practice

 for-schools for-schools  While the Department for Education covers the administration of these licences, schools are still responsible for making sure staff members follow the terms and conditions of the licences.  Schools may need additional licences, e.g. for church music, audio music or ordnance survey maps. If this is the case, schools need to purchase these additional licences separately.  You can find more information on the copyright and schools website.copyright and schools website Best Practice, Guidance and Advice

 Changes to Scheme for Financing Schools  Procurement – quotations and tendering – do not break the limit for embarking on a tendering process  Schools Forum meets on 15 July  Bring to the attention of your Governing Body  Roles of the DfE, LA’s and schools in relation to financial assurance and cost reduction Best Practice, Guidance and Advice

 Budget monitoring spreadsheet for capital  Use of 73 and 75 codes  APT&C Pay Scales  SCP Point 5 ceases to exist on 01 Oct 15  Purchase card limits  Capital Balances Transfers for Scheme 2 schools  Pupil Premium Allocations Best Practice, Guidance and Advice