FORMULA FUNDING FOR SCHOOLS

2011-12

Schools Finance- March 2011

How the Government funds the authority to fund schools

Pupil numbers recorded on the January census (schools, pupil referral units, alternative provision, early years census for 3 and 4 year olds in Private, voluntary and independent (PVI) settings)

• Government give the authority a guaranteed unit of funding (GUF) per pupil £4,613.11 in 2011-12

• Pupil numbers * GUF = Dedicated Schools Grant (DSG), this grant funds schools, PVI’s up to 15 hours free entitlement per week and some central services.

Guaranteed Unit of Funding (GUF)

• The is the amount the Government allocates an LA for each pupil.

• 2008-09 £3,715.46• 2009-10 £3,851.24• 2010-11 £4,014.55• 2011-12 £4,613.11 (£4,014.55+ £598.56)

Increase of £598.56 was due to the mainstreaming of standard fund grants

• ERYC 8th worst funded authority in 2011/12

Dedicated Schools Grant (DSG) 2011-12

• Schools census 43,637• PRU census 20• Alternative provision 131• Early years census 1,630 (includes 356 fte

nursery pupils doing extra 2.5 hours)

• Total 45,418 (to be confirmed)

multiplied by GUF £4,613.11 = £209.518m

Pupil Number Projections

Jan 2011 school census No of pupils

Year 1 3400

Year 2 3368

Year 3 3252

Year 4 3333

Year 5 3359

Year 6 3363 (move to sec in sept)

Year 7 3780

Year 8 3798Year 9 3933

Year 10 3761

Year 11 3950 (leave in Aug)

Pupil number projections- what this means

• Secondary schools possible reduction in pupils :

• - September 2011 -587 (3363-3950)

• -September 2012 -402 (3359-3767)

• -September 2013 -600 (3333-3933)

Finance update 2011-12 onwards

Funding settlement released by DfE on 13 December• Base DSG per pupil to remain same as 2010-11 (£4014.55)• Standards funds (SF) mainstreamed into DSG (approx

£27m) £598.56)• Increase in early years free entitlement for 3 and 4 year

olds from 12.5 hours per week to 15, will increase the number of full time equivalent pupils we are funded through the DSG, but lose SF grant. (356 fte)

• Minimum funding guarantee for schools for 2011-12 to be set at a maximum of minus 1.5%

Finance update (cont)

• The pupil premium set at £430 for 2011-12 for each pupil eligible for a free school meal – from April 2011. Service Children £430 and LAC £200

• Devolved capital allocations to be reduced for schools by an average of 80% in 2011-12

Announcement from the YPLA (sixth forms)• Cut of up to 3 % for school sixth forms

Pupil premium• Additional funds for poorest children who achieve

less well• New funding from Government savings• 2011-12 eligible for free school meals• 2012-13 extend to reach pupils eligible in the past• Transparency about how spent. Ask schools to

report to parents annually• Change performance tables to reflect attainment of

pupils who attract the premium

Number of pupils eligible for a free meal

• January 2010 school census = 4,213

• January 2011 school census = 4,744

Increase of 12.6 %

Schools can access this information from ‘Prime’ . Hopefully schools will in the near future receive email alerts with pupil data on changes to circumstances

Mainstreaming of Standard Fund Grants from 2011-12

• Standard fund grants will no longer exist in 2011-12

• £27.087m SF converted to DSG (£26.975m after converting to 2011-12 pupil numbers).

• In 2011-12 the majority of grants will be continued to be allocated on the same basis for continuity where possible

• 2011-12 review of the formula

FORMULA DISTRIBUTION 2011-12

COMPONENT £’000 %

AWPU 108,486 57.78

BLOCK SUMS 17,540 9.34

PERSONALISED LEARNING 8,675 4.62

STATEMENTED PUPILS and FORMULA

7,890 4.20

RATES 3,537 1.89

EARLY YEARS 2,145 1.14

Mainstreamed Standards Fund Grants 24,702 13.16

OTHER 14,777 7.87

TOTAL 187,752 100.00

OTHER MAIN ELEMENTS 2011-12ELEMENT £’000

1. Infant Class size funding

2,143

2. School meals – (£1.95, £2.20, £6k prim block) incl. former school lunch grant

1,892

3. Social Deprivation 2,1934. SEN without a statement 1,2595. SEN Support Service- Primary 5806. Incremental Drift 1857.Practical learning- secondary only 7408. Grounds Maintenance 3388a. Teacher Mobility 157

OTHER MAIN ELEMENTS 2011-12ELEMENT £’000

9. Energy Performance 372

10. Minimum Guarantee Funding (MFG) 254

11. Small schools support 235

12. Diploma transport £180k and Courses £478k 658

13. Learning support units 111

14. Travellers Children 79

15. Swimming Programme 6916. High Pupil turnover 67

17. Caretakers Extra Duties 7

18. Swimming Pool Water Allowance 7

OTHER MAIN ELEMENTSSPECIAL SCHOOLS

2011-12

ELEMENT

£’000

20. Special schools – Place Elements

2,286

21. Special Schools - Boarding 1,145

STATEMENTS

• This funding is given to support pupils with a statement of special educational need for levels L, M and N.

• A schools funding is amended in-year if a pupil is statemented or de-statemented.

• Consultation exercise resulted in no change• Increase of funding due to statements of £748k

to £4.664m

SEN Consultation

No responses % disagreeing % that responded

Primary 124 40 32.26% 30 75%

Secondary 18 11 61.11% 11 100%

Special 3 0 0.0% 0

Nursery 4 2 50.00% 2 100%

Totals 149 53 35.57% 43 81.13%

PUPILS WITH SEN WITHOUT A STATEMENT, SEN SUPPORT SERVICES – PRIMARY and STATEMENT

FORMULA

• This funding is given to recognise the need for support for pupils with special educational needs with a statement for levels A-K or without a statement. The funding is based 50% on IMD scores and 50% attainment.

Personalised Learning

• First allocated in 2006-07• Secondary schools- pupils not achieving level 4 in

KS2 Maths and English, no of pupils aged 11-15 and IMD scores

• Primary schools – pupils not achieving Level 2 in KS1 in Maths and English, no of pupils aged 5-12 and IMD scores

• In 2011-12 an average will be taken over 3 years

INFANT CLASS SIZE FUNDING

• The formula is based on funding phantom (ghost) pupils up to multiples of 30 in FS2 +KS1. Numbers taken from the January school census.

• The phantom funding is only based on teaching costs and so is lower than the AWPU by approx £700

• If KS1 pupil numbers raise above the multiple of 30 in September, the school can apply for contingency funding.

Pupil Numbers – change in KS

• KS1 AWPU = £2,133

• Phantom pupil = £1,446

• Variance = £687

……………………………………………

KS2 AWPU = £2,099

Contingency Fund

• Schools are able to apply for contingency funding if there is a one-off situation that puts the school in financial difficulty. (7 successful applications)

• Ie Increase in the number of pupils in KS1 over the multiple of 30 in September compared to the number funded, if additional staffing costs are incurred (3 successful applications)

• A significant increase in pupil numbers or SEN costs (2 successful applications)

SCHOOL MEALS

• Funding is based on the number of pupil free meals taken in the previous calendar year. The value per meal in 2011/12 is £1.95 primary and £2.20 secondary.

• In addition a block sum of £6,000 is given to primary schools who provide a paid meal service. This is a contribution towards the salary costs and transporting meals.

• In 2011-12, the standards fund lunch grant has been added to the formula amount to increase the amount per pupil for secondary schools and the block sum for primary schools

INCREMENTAL DRIFT and TEACHER MOBILITY

PROTECTION

• Provides salary protection for mainstream schools of less than 300 pupils (on a sliding scale) with higher than average teaching staff costs. (does not include upper pay scales, 7,8 and 9).

• From 2011-12, teacher mobility protection has been introduced. This protects schools of less that 300 pupils (on a sliding scale) with threshold costs greater than the funding when teachers have been at the school for more than 6 years.

ENERGY PERFORMANCE FACTOR (Block)

• To compensate schools for uneconomical heating systems. Calculation reviews previous 3 years expenditure and compares to the value of multiplying the capacity of the school by the AWPU value for energy.

• If the energy costs are greater the school will be funded on a banding scale.

• Change from 2011-12. Income for community use relating to energy will be deducted from the cost before the comparison is done.

Accountancy SLA

• Statutory – no charge

• Standard £600 per school

• Enhanced £900 per school

• Additional support (10 visits) £1,500

• Half day £100 / full day £180

• Governing Body meetings £180

• Hourly rate £36

Accountancy SLA (cont)The services offered under the enhanced SLA –

costing an additional £300 pa will not be available to schools opting for standard service including:

1) Half day visit in Spring term to help with year end projections + spreadsheet

2) Visit to closedown prior year FMS3) Future finance training session – free of charge4) NETOP to input new budgets onto FMS and

resolve queries5) Assist with costings and benchmarking6) 5 year actual data

3 year plan preparation

• Head and admin to meet prior to meeting.• Accurate idea of 2010-11 balance- Split NRFSF/

SBS (last yr to do this).• Pupil number projections for Jan 2012 and Jan

2013.• Nursery hours estimate for 2012-13 and 2013-14

per term.• Check staffing, ie FTE, hours, term time formulas

etc.• Decide on supply and training budget.

3 year plan preparation (cont)

• Amounts at the ready to enter for SLAs, contracts and insurance.

• Review all non staffing lines to take account of increase in costs, change in pupil numbers, priorities linked to the School Development plan.

• Use 5 year actuals as a guide.• 2012/13 budgets – no idea of level of

funding.

3 year plan - income

Consider

• Grant income

• Lettings and private income

• Catering income (average no of paid meals per day * 190 days * amount charged)

• Visit income

• other

Consultation on the Schools Financial Value Standard (SFVS)

(Replacement of FMSiS)• Series of questions split into 5 sections• To answer – Yes, In part, No• Not formally assessed but a signed record must be

sent to LA finance department. • Schools not attained FMSiS by 31 March 2012, all

others by September 2012.• Consultation 10 March 2011 to 30 April 2011.

Budget monitoring 2010-11

• Challenging schools- support from the Schools Forum. Not all schools returning information when requested by Schools Finance

• Large underspend on 44002 at Period 11

- primary £305k- Secondary £1,240k

Monitoring at Period 11 2010-11- in year balances (- = overspend)

Sector Anticipated on April 10 plan

Anticipated on Sept 10 plan

Current projected outturn- by Schools finance

Primary -1,366,187 -539,718 200,000

Secondary -1,819,154 -1,110,545 500,000

Special -17,129 61,822 75,000

Nursery 50,965 35,104 0

Total -3,151,505 -1,553,337 775,000