Agenda item

To inform members of the Schools Forum of the provisional outturn on the 2015-16 Schools Budget, including the allocation of balances and the use of Earmarked Reserves.

The Forum received the annual report of the provisional outturn on the 2015-16 Schools Budget, including the allocation of balances and the use of Earmarked Reserves. 

This confirmed the budget movements required during the course of the financial year and that there was a year end under spending of £0.81m. The main budget variances were also reported, which in line with the earlier budget monitoring report highlighted savings on SEN costs. The report also confirmed that taking account of the opening balance, the in-year under spending and year end transfers to and from reserves, the Schools Budget held an unallocated surplus balance of £1.373m.

It was also confirmed that the Borough Treasurer has reviewed the financial risks in the Schools Budget and determined that a minimum prudential level of reserves of £0.66m needed to be held to manage in-year cost pressures, an increase of £0.15m. This meant that there is £0.713m of balances available to use, for which the report made recommendations for allocating £0.613m.

Questions and comments from Members were received in respect of:

• The £0.055m under-spend on the free entitlement to childcare for 2 year olds.  Members were advised the under-spend was due to the take up being lower than had been projected. 
• How many pupils were on the roll of the SEN Resource Unit for Rise@GHC, what was considered an economical size and how long would it take to reach that point?  Members were advised the number currently on the roll was 15.  The Garth Hill Principal stated that savings had been made against the original plan. Officers confirmed that the medium term budget plan for the Unit would, as usual, be presented to the Forum to consider. It would take account of the most up to date information and is intended to be  available for the next meeting in October 2016 when these matters could be considered in more detail.
• Members were advised the earmarked reserve of £0.316m allocated to SEN Resource Units as at 31 March 2016 was expected to be required to meet diseconomy costs at Rise@GHC.
• Was there an amount available for the SEN Resource Units at Binfield Learning Village and other schools?  Members were advised no specific amount had been earmarked and Binfield Learning Village in particular would be very challenging to forecast at this stage.

The Forum NOTED:

• That the outturn expenditure for 2015-16, subject to audit, showed net income of £0.463m which represented an under spend of £0.81m before allocation of reserves and balances;
• That after transfers to and from earmarked reserves, the Schools Budget under spent by £1.165m;
• The main reasons for budget variances;
• As at 31 March 2016, the aggregate surplus on balances and Earmarked Reserves within the Schools Budget amounted to £5.589m;
• The previously agreed transfers to and from Earmarked Reserves;
• The transfers to and from balances and Earmarked Reserves processed as part of the accounts closedown process;
• The £1.373m current balance on the Schools Budget General Reserve;
• To recognise the increasing difficult financial circumstances that schools were operating under, the decision of the Borough Treasurer to increase the minimum prudential level of balances by £0.15m to £0.66m.

The Forum AGREED:

The new allocations proposed from the Schools Budget General Reserve.