1. Finance Administrators and Bursars Group Jan Powley and Kim George March 2015

2. Agenda Welcome and Introductions Audit Presentation School Funding 2015-16 HCSS Coffee Break SFVS Year End Guidance Best Practice Questions and Close

3. 15-16 Funding Another flat cash settlement so apart from including 2013-14 DSG underspend, no changes to the formula No national formula funding changes A tight budget settlement

4. YearPrimar y Seconda ry Inflation £’m 2004-05 5.00%4.00%4.84 2005-06 5.00%4.00%4.40 2006-07 4.00%3.40%3.82 2007-08 3.70% 3.98 2008-09 2.10% 2.25 2009-10 2.10% 2.47 2010-11 2.10% 2.57 2011-12 -1.50% 2012-13 -1.50% 2013-14 -1.50% 2014-15 -1.50% 2015-16 -1.50% Minimum Funding Guarantee – guaranteed per pupil increases

5. Secondary School – 1,017 pupils, high levels of deprivation Guaranteed Levels of Funding YearGuaranteed level of funding per pupil £ MFG % 2007-085,924.963.7% 2010-115,833.542.1% 2015-165,627.86-1.5%

6. Primary School – 595 pupils, low levels of deprivation Guaranteed Levels of Funding YearGuaranteed level of funding per pupil £ MFG % 2007-084,065.983.7% 2010-114,003.252.1% 2015-163,862.10-1.5%

7. £4,776.87 for 2015-16 for primary and secondary pupils Each 100 secondary pupils generates £477,687 Basic Entitlement (AWPU) = £444,343 Average deprivation £59,753 Other pupil-related factors based on average incidence £34,024 Shortfall in schools block = £60,433 Schools Block Unit of Funding

8. Schools need to be aware of impending budget pressures Ensure they are factored into medium term budget planning Living Wage - £7.65 and £7.85 per hour from 01 April Pay Awards – unfunded pay awards in 2013- 14 and 2014-15 Teachers pension costs – increase from 14.1 to 16.48% September 2015 Cost Pressures

9. Non-teachers pension costs – increased by 0.5% in each of 2014-15, 2015-16 and 2016-17 rising to 22.6% Removal of contracted-out rebate for National Insurance in April 2016 – additional 3.4% for anyone in an occupational pension scheme General inflation e.g. utility bills Erosion of MFG protection for some primary schools Cost Pressures

10. Nursery Schools – maintain current values (MFG protects the basic hourly rate at 98.5%) Special Schools £10k per place plus top-ups and outreach PRU £8k per place Apr – Aug, then £10k per place Sep – Mar, plus top-ups and outreach Top-ups reduced to maintain cost-neutral position Schools Forum must now be consulted on all high needs places, top-ups etc Formula Funding 2015-16

11. Increase in ISB from £144.059m to £165.658m Increase due to: Addition of NRA’s £16.9m £2.5m of 2013-14 underspend (maintain AWPU £1.28m, Prior Attainment £915k, MFG 305k) £665k underspend – 75% AWPU 25% IDACI Other volume changes £2.6m 2015-16 Formula Funding

12. Additional 355.50 primary pupils, 135 secondary pupils Only factor to have reduced is FSM Ever 6 primary pupils Saving on lump sum due to merger of infant and junior schools Scaling back of gains Primary:Secondary funding ratio £915k and £665k – one off funding? 2015-16 Formula Funding

13. PrimarySecondary 2014-15 £ 2015-16 £ Increase £ 2014-15 £ 2015-16 £ Increase £ AWPU3,222.753,232.7810.034,443.434,465.9422.51 IDACI 154.4057.352.9560.2866.976.69 IDACI 268.0071.693.6975.3583.718.36 IDACI 381.6086.034.4390.42100.4610.04 IDACI 495.20100.365.16105.49117.2011.71 IDACI 5108.80114.705.90120.56133.9413.38 IDACI 6122.40129.046.64135.63150.6815.05 Low Prior Attainment 515.87568.2252.35725.96863.49137.53 One-off increases to factor values

14. 2015-16 Devolved Formula Capital Link to DfE website to find out allocation https://www.gov.uk/government/publications/capi tal-allocations https://www Will be paid into local bank account Do not confuse with revenue Pay DFC invoices from local cheque account Only pay what the scheme allows you to pay! DFC balances to be transferred into bank accounts in June

15. HCSS AWPU, IDACI and low cost high incidence values must be reduced to 14-15 rates from 16-17 and beyond Consolidated April payments to be added as allowances Inflation rates for Teaching and Non Teaching staff

16. SFVS The self-assessment signed by the Chair of Governors will need to be submitted by 31 March 2014 Schools should electronically submit their completed SFVS return to lms@luton.gov.uk Make sure you have a designated person to take responsibility for the assessment Planning of Governors’ meetings to incorporate SFVS requirements

17. SFVS Proposed changes subject of consultation Additional questions and support notes 3 questions relating to pay and conditions Have your pay decisions been reached in accordance with a pay policy based on clear performance criteria? Where necessary, or appropriate, has the use of professional independent advice formed part of the pay decision process?

18. SFVS When making pay decisions, has consideration been given to wider context, e.g. in pay in schools with similar circumstances, or other benchmarking data?

19. Year End Guidance Key deadlines 1 st bank claim – must be in the LMS team on Friday 27 March (emailed to lms@luton.gov.uk) 2 nd bank claim – in LMS team by Thursday 16 April April (emailed to lms@luton.gov.uk) Draw a line on bank statement at 31 March

20. Year End Guidance Use the checklist to ensure you have completed all tasks The checklist is available on the Children and Learning Grid within the finance section Do NOT account for new year advance until you have been given the go ahead to move into the new year (in bank accounts 02 April) Urgent payments in new year – raise manual cheque, photocopy cheque and enter as a cash book journal when allowed in the new year

21. Year End Guidance Orders can be raised in new year but no invoice processing Open your new year in FMS6 – tidy up the structure if necessary Submit accruals and prepayments by 24 April – limit is £1,000

22. CFR Interim CFR on COLLECT by 15 May Make sure FMS6 is the latest version – there is a spring release planned Analysis of balances form Final CFR by 22 May Committed balances Evidence of specific grant balances Pupil premium/UIFSM can be carried forward if unspent – provide evidence

23. Best Practice Guidance Spring Term Recompense up to and including 31 March – Friday 27 March Financial Returns Timetable 2015-16 Orders only in the new year on FMS6 until given the go ahead by your SFA. Do not do a preliminary close on FMS6 until given the go ahead – do a back up before the preliminary close

24. Best Practice Guidance Leasing Guidance – see separate slide Governors Expenses Model Policy Charging and Remissions Model Policy Complete leasing return and submit by 31st March 2015. Contact: Aklakur Rahman (aklakur.rahman@luton.gov.uk ) NI tables in P7 – new figures on the grid Next FABs meeting is 24 June 2015 – reserve your place by email lms@luton.gov.uk