New Governor Induction Training School Funding Team Presenters

New Governor Induction Training School Funding Team [Presenter’s name here]

Induction Topics • • • School Funding Team Schools Forum National Funding Formula, Funding & Significant Grants Maintained School Responsibilities to the LA Protocols Key Actions – Maintained Schools Understanding the Budget Monitor Return (Exercise) Questions to ask your school Q&A Where can I find out more? The above topics and more are explained in greater detail in the Handbook. Please take the time to read this.

School Funding Team • Part of Corporate Service within Bradford Council • Dedicated to supporting schools with specific responsibilities for the financial accounting of schools maintained by Bradford Council (not including academies or free schools) • Undertake monitoring of maintained school budgets providing support and challenge to schools • Oversee the operation of the 4 main protocols to which maintained schools should adhere to • Calculate and manage funding payments to schools (including academies & free schools) and early years PVI providers on a monthly basis • Provides administrative support to Bradford Schools Forum

Schools Forum • • A representative group of head teachers / principals, governors and non school members, including academies and free schools, that makes recommendations to the Council’s Executive Committee on how schools and other providers in the District are funded and how the Dedicated Schools Grant (DSG) is used. The formula funding currently set by the Council for Bradford schools is also used by the Education and Skills Funding Agency (ESFA) to calculate the General Annual Grant (GAG) allocations for academies and free schools. This means that maintained schools and academies in Bradford are funded on the same basis. The LA provides Schools Forum meeting papers, which must be published in advance of each meeting. All Schools Forum meetings must be open to the public and the agendas, minutes and supporting documents published on the Council website.

National Funding Formula (NFF) • • New funding reform which aims to remove discrepancies in funding that have arisen from budgets being allocated by local authorities, rather than by central Government. A largely prescribed formula to ensure that all school budgets for state schools in England are set using the same criteria. Phased in from 2018 -19 with more information on future plans for NFF expected after the Autumn 2019 Spending Review. Implement a minimum level of per pupil funding - £ 3, 500 Primary / £ 4, 800 Secondary 4 Main Blocks of funding to the LA: v v Schools Block - primary & secondary School funding Early Years Block – 2, 3 & 4 year old funding (nursery age) High Needs Block – pupils with special education needs (aka high needs) Central Schools Block – central functions within the LA

Funding & Significant Grants • • Formula Funding – Vast majority of funding comes from pupil numbers. Other factors include deprivation, attainment, English as an additional language (EAL), early years and special educational needs Pupil Premium Grant – Raising attainment of disadvantaged pupils of all abilities to reach their potential and supporting children and young people with parents in the regular armed forces or in receipt of a MOD pension. Schools should have a strategy in place which identifies ways they can use the funding more effectively. Schools MUST publish a report on school website on spend and results as part of conditions of grant PE & Sport Grant – Used to fund additional and sustainable improvements to provision of PE & sport, for the benefit of primary aged pupils, in the academic year, to encourage the development of healthy, active lifestyles Schools MUST publish a report on school website on spend and results as part of conditions of grant Universal Infant Free School Meals – Provides a free school meal for all reception, year 1 and year 2 pupils. (£ 437 per pupil) Year 7 Literacy & Numeracy Catch Up Premium – For pupils who did not achieve expected level in the summer KS 2 assessments (£ 500 per pupil)

Maintained School Responsibilities to the LA The following returns must be submitted to School Funding Team by the date specified on the Timetable of Key Dates document: • Governor Approved Budget (Annually) • Budget Monitor Return (Quarterly) • Bank Reconciliation Return (Quarterly) • Consistent Financial Report (CFR) • Intended Use of Balances Return (Annually where applicable) • Review / Revise and submit statutory SFVS return (School Financial Value Standard) Maintained schools must adhere to the 4 main protocols in place: • Deficit Budget Protocol • Surplus Carry Forward Balances Protocol (Intended Use of Balances) • The Financial Classification of Schools • The Light touch Financial Monitoring Scheme (Scorecard)

Protocols continued • Deficit Protocol – where school identifies a cumulative deficit balance at any point, notify LA immediately. School to produce a deficit repayment plan that sees the budget return to break even / surplus within 1 -3 years • Surplus Protocol – Primary Schools can hold as a surplus up to 6% (or £ 60 k – whichever is greater) and Secondary schools 4% of their funding as allocated at the start of the year. Where surplus balance exceeds this school must submit their plans for utilising the excess surplus balance by 31 March (plans include evidence of GB agreement and other supporting documents). Failure to submit required forms, or to carry out the agreed plans may result in the clawback of excess surplus balance. Financial Classification – identifies schools facing greatest level of financial challenge enabling targeted support. Scorecard – encourages timely submission of returns by schools. Points accrued where deadlines missed / inaccurate information submitted. 3 categories Red (40+ points), Amber (20+), Green (<20). More frequent reporting may be required when a school enters the Red category. • •

Key Actions Maintained Schools • Set & Monitor the School Budget • Establish sound financial procedures and internal controls • Establish a written scheme of delegation * • Determine staff complement and pay policy • Determine other school policies e. g. lettings • Ensure accurate records are kept • Oversee private and voluntary funds • Ensure adequate insurance arrangements are in place • Publish business interests • Report on outcomes where specified in conditions of grant * Governors are expected to delegate a level of financial ‘power’ to their head teacher in 2 ways: Ø Power to incur new financial commitments not previously included in the agreed budget Ø Power to move spending between budget headings (virement)

Understanding the budget monitor • Maintained schools required to submit at least quarterly • Details revenue, community focussed and capital funding, income, expenditure and balances • Pay particular attention to balances and % given to alert to excess balances / low or deficit balances • Should be presented to Governors at least quarterly

Revenue & Capital Funding • Capital funding – can be spent to acquire or improve a long term asset such as equipment or buildings and usually includes the fitting out of new buildings with equipment and furniture. This includes major technology purchases. • Revenue funding - can be spent to provide services and buys items that will be used within a year. Examples include salaries, heating, lighting, services and small items of equipment. Routine repairs are revenue expenditures and can include significant repairs that do not extend the life of the asset or do not improve the asset (the repairs merely return the asset to its previous condition)

Questions to ask your school ? Is your school predicting a deficit in this current financial year or in the next 2 years? ? Do you have an intended use of balance scheme(s) in place? ? How many points accrued on Scorecard? ? Which classification category is your school placed in for 2018 -19? ? Scheme of delegation in place?

Where can I find out more? ¯ Induction Handbook ¯ LA Course: Effective Financial Governance ¯ Governance Handbook (Gov. UK) ¯ Bradford Schools Online ¯ ESFA Website