1. Keith Howkins Gemma Donnelly
operational issues
Keith Howkins
Gemma Donnelly

2. Today’s session
We will be covering the main operational issues relating to the announcement, particularly those raised at regional finance officer meetings and in particular:
Relationship of the local formula to the NFF
Variable MFG
Minimum per pupil funding levels
Movements between blocks
Approval of central expenditure
Disapplications
What the APT can do

3. NFF and local formulae
Many LAs have told us they would like to replicate the NFF as closely as possible.
As is a “soft” year this is still a local decision and so will be influenced by budgets for growth and high needs
There are some differences between the NFF calculation and what is allowed in local formulae, and disapplications will be required in some circumstances to align these
We are about to issue a blank APT to give more flexibility on modelling
LAs will still only be expected to fund academy budgets based on the APT. DfE fund any difference where there are different baseline/MFG amounts

4. Variable MFG
The range of allowable MFG is between -1.5% and 0% per pupil
The maximum of the range is less than the funding floor of +0.5% to give authorities local flexibility on decision making and enable them to manage characteristics changes
LAs wishing to set a positive MFG will need to request a disapplication
The blank APT will enable an MFG of up to +0.5% to be entered for modelling

5. Minimum per pupil funding levels
The minimum per pupil funding levels in the NFF exclude premises factors and mobility
is a transitional year and these have been set at £4600 for secondaries and £3300 for primaries
LAs will be able to set a minimum per pupil funding level in their local formulae in up to and including the final NFF levels of £4800 for primaries and £3500 for secondaries
If LAs wish to exclude premises factors this will require a disapplication
The blank APT will enable any of rates, PFI and split site factors to be excluded for modelling

6. Movement between blocks
LAs can transfer up to 0.5% out of the schools block with schools forum approval; this will be expressed as passing through at least 99.5% of the schools block
Disapplications are required if the LA wishes to transfer more or the forum has rejected the proposal; the operational guide sets out the information we want to see – this should already have been presented to forum
Early years pass-through to providers will be 95% of the early years block in 18-19
There is flexibility on all other movements between blocks though schools forum approval is required for all central expenditure other than for high needs
DSG reserves can be used on any block provided the pass-through requirements are met
Deficits brought forward can be funded from the schools budget with forum approval but only to the extent that pass-through requirements are still met

7. Approval of central expenditure
Schools forum approval continues to be required for all items of central expenditure other than high needs; this includes those in the Central School Services Block
Forum approval continues to be required to approve funding of schools budget deficits carried forward and to fund overspends on de-delegated services from the following year’s schools budget
When incurring central expenditure, LAs must treat different categories of schools equally
Services previously funded by the general duties rate of the ESG and de-delegated services can continue to be funded from maintained school budgets. CSSB funding or DSG reserves cannot be used on these services except that underspends on de- delegated services can be carried forward

8. Disapplications
30 November remains the deadline for disapplications affecting the APT, including those for block movements. We expect LAs to be able to estimate their DSG reasonably accurately from the indicative block allocations already announced
Disapplications no longer required to increase pupil numbers where there is a change to the admission limit or a local reorganisation
Block movements – opportunity in exceptional circumstances to revise figures in January. If doing so LAs need to plan how they will meet the deadline for calculating school budgets. We suggest submitting APTs with and without the block movement

9. What the APT can do
We are sending out a blank APT to enable LAs to model with greater flexibility the MFG and minimum per pupil levels of funding
Disapplications will still be required for a positive MFG or to exclude premises factors from the minimum per pupil calculation
The final APT will as usual be issued in December updated for October census information

10. More information
Schools funding arrangements for 2018 to 2019: to-2019
High Needs funding arrangements: arrangements-2018-to-2019
Early years operational guide:
funding-formula-allocations-and-guidance
Schools forum good practice guide:
operational-and-good-practice-guide-2015

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