Agenda item

To update members of the Schools Forum on proposals for financial support to schools, including loans and one-off funding allocations from the budget to support Schools in Financial Difficulties.

The Forum received a report which updated members on proposals for financial support to schools, including loans and one-off funding allocations from the budget to support Schools in Financial Difficulties.

In terms of one-off funding allocations that did not need to be repaid, two proposals totalling £0.085m were supported by the Local Authority (LA) in respect of schools rated as ‘requires improvement’ in their latest Ofsted inspections. In both instances it was considered unreasonable to expect the school to be able to implement all elements of the action plans from within their existing resources.

In respect of loans, which were granted to cover a temporary funding difficulty which over time can be fully repaid, four new loans to secondary schools were being supported by the LA. Three of these new loans would be financed by future growth in pupil numbers which would increase the school budget at a greater rate than associated cost increases, with one invest to save scheme, where the purchase of solar panels would reduce future electricity bills to a greater extent than the annual cost of the borrowing associated with the loan. It was also confirmed that the existing loan to a primary school was on course to be repaid in line with the agreed repayment terms.

The number and size of loans now being requested had not been experienced before, so presented a new challenge not only to the schools required to make the payments, but also the LA as loans were financed from the aggregate surplus balances held by all schools, and capped to 40% of the total. Whilst the current £0.950m of loans represent 25% of total balances, with the on-going tight financial settlements, balances are expected to continue to reduce, as were the significant surpluses held by a small number of schools as they implement their investment plans. The conclusion from this is that the LA could be in a position where it would not be possible to grant significant additional loans in the near future.,

Forum members suggested that this information should be communicated to all schools in relation to what loans they could take up in the future, if these options would be reduced.

Headteachers on the Forum also commented that it was difficult to predict income streams to schools based on the number of pupils, and only census figures could be relied upon for this. With future loan repayments being funded from this source, there was a risk that funding could be lower than anticipated. This risk is further heightened by the potential impact of the new secondary school opening in Binfield Learning Village and the impact this could have on pupil numbers at other schools in the borough. An update was also provided in respect of the current level of Dedicated Schools Grant, which was still subject to change, the revised budget proposed for Rise@GHC, the new Autistic Spectrum Disorder SEN unit and post 16 grant funding.

Forum members commented on the Autism and Social Communication Service  budget providing a diminished service to College Hall Pupil Referral Unit and secondary schools and this had been raised at a Headteachers meeting and with the Director of Children, Young People and Learning. Officers would provide an update at the next meeting.

The Forum NOTED:

      i.        That in respect of previously agreed loans:

a.    Wildmoor Heath Primary school was complying with the repayment terms (paragraph 5.15);

b.    Sandhurst Secondary School was requesting a further advance to cover a medium term funding shortfall (paragraph 5.16);

     ii.        the estimated amount of Dedicated Schools Grant for 2015-16 at £78.052m subject to increase once funding for 2 year olds was confirmed at the end of July (paragraph 5.25 and Table 3);

    iii.        the £0.093m of post 16 SEN funding expected to be received above budget that would be available to support any in-year pressures on budgets supporting High Needs Pupils (paragraph 5.27);

   iv.        an update report on progress against containing expenditure to budget and making savings in future years on High Needs Budget areas would be presented in the autumn term once greater certainty exists on costs and likely new academic year costs (paragraph 5.28).

The Forum AGREED:

      i.        that Winkfield St Mary’s Primary school receives a one-off funding allocation of £0.030m from the budget to support Schools in Financial Difficulty (paragraph 5.8);

     ii.        that Easthampstead Park school receives a one-off funding allocation of £0.055m from the budget to support schools in Financial Difficulty (paragraph 5.9;

    iii.        new loan requests, subject to receipt of request from the chair of governors confirming compliance with loan conditions for:

a.    Brakenhale, Easthampstead Park and Sandhurst Secondary schools to cover medium term budget shortfalls (paragraph 5.18); and

b.    Garth Hill Secondary School for an invest to save scheme relating to a Photovoltaic (PV) Solar Panel installation (paragraph 5.19);

   iv.        the revised funding plan for Rise@GHC, the Special Educational Needs Unit for young people on the Autistic Spectrum Disorder (paragraph 5.23, Table 1 and Annex B);

    v.        The budget adjustments required as a result of the revised level of DSG, post-16 sixth form and SEN grants and the updated funding plan for Rise@GHC (paragraphs 5.22 to 5.27).