2016/2017 SCHOOL BUDGET EXPLANTORY NOTE

Transcription

1 2016/2017 SCHOOL BUDGET EXPLANTORY NOTE Version: 1.0 Date: 26 February P a g e

2 INTRODUCTION There have been a number of changes to 2016/17 school funding and it is important that you read these explanatory notes to ensure you fully understand the funding information for your school. Academy School budgets are issued by the EFA on an academic year using Hounslow s approved funding formula. Academy schools can use the budget statement as an indicative planning tool but should note that the EFA apply various adjustments before confirming final allocations for academy schools. Please note the Local Authority is required to use the data provided by the Education Funding Agency (EFA) to calculate the budget shares, therefore any data related queries should be directed to the EFA. With the exception of growth in pupil number changes there has been no inflationary increase in Dedicated Schools Grant (DSG) funding since 2010/11. For a number of years the council has been facing funding pressures across special education needs (SEN) which it has funding from a combination of one-off DSG reserves and savings from the Schools Block. For 2016/17 the estimated funding shortfall is 3.8m which takes into account the following savings approved by the Schools Forum and the Council. Approved Savings ' /17 Gross MFG* Net AWPU Cut net of MFG estimate (one year only) 1, ,009 15% cut to SEN hourly rate for in-borough placements % cut to Special Schools and PRU funding % cut to Early Years Hourly Rate Saving previously agreed for Woodbridge Park (year 2) Other Savings across High Needs Block Estimated savings released back into DSG 3, ,539 * MFG = Minimum Funding Guarantee 1 this is an indicative estimate of savings which are subject to change as result of changes in agreed funded places 2 the an indicative estimate of savings which are subject to change as result of in year adjustments of actual funded places The Council is required to set by statute a balanced budget and for this reason will be using 1.9m of one-off DSG reserves in 2016/17 to partially off-set the funding shortfall. Council officers with the Schools forum will continuously monitor the financial position in year to identify additional cost savings. The key changes affecting school budgets in 2016/17 are: 2 P a g e

3 a) Early Years Funding Changes 1.5% cut to hourly rates across all settings b) Schools Block Funding Changes: Changes between the number of children on roll at school on October 2014 and October 2015 census day (2.1.1) IDACI Dataset Change (2.1.2) Reduction in the number of children registered for eligible free school meals on roll at school on October 2014 and October 2015 census day (2.1.3) New funding formula for split sites (2.2) 50 cut to the AWPU rate applicable in 2016/17 only (2.3) NNDR adjustments (2.4) c) High Needs Funding Changes 15% cut to SEN top-up rates for Hounslow Schools (3.1) 1.5% cut to Special School Budgets (3.2.1) 1.5% cut to maintained Specialist Alternative Provision - Woodbridge Park (3.3) 3 P a g e

4 1. EARLY YEARS FUNDING 1.1 Early Years Pupil Data Your indicative early years budget has been calculated based on provisional January 2016 census information. This assumes the number of 2 and 3 & 4 year old children attending your nursery classes for the Summer 2016, Autumn 2016 and Spring 2017 term is the same as in January 2016, and that all children attending take up the full 15 hour entitlement. 1.2 Early Years Deprivation Data The early year s deprivation element of schools budget is currently estimated on January 2015 census data. The budgets will be updated pending finalisation of the January 2016 data. 1.3 In Year Adjustments to Early Years School Budgets Schools actual early years funding level for 2016/17 will be based on the census count in each term of the 2016/17 financial year. Schools will be notified of their updated Early Years budget following each termly count. This means that for schools with nursery provision, your overall budget share is likely to change during 2016/ Early Years Funding Formula Changes Following approval by Schools Forum on 10 th December 2015 a cut of 1.5% to the early years funding formula rates will be implemented from 1 April /17 Early Year Single Funding Formula Hourly Rates 2015/ /17 Description Basis of allocation 2 YO 3 & 4 2 YO 3 & 4 YO YO Base Rate per child Deprivation per child meeting eligibility criteria Transition Funding to support children with additional needs who transfer from a PVI to maintained school n/a n/a P a g e

5 2.1 Data Changes 2. SCHOOL BLOCK FUNDING Each year the EFA updates all of the pupil data which is used to calculate school budget shares for primary and secondary schools. The main data changes which the schools need to be aware of are: Number of pupil on Roll in School (primary and secondary 5-15 year olds) The number of pupil on roll in school during October census between 2014 and 2015 has increased 2.24%. This is an additional 772 children in Hounslow schools between 2014 and Changes to Index of Deprivation Affecting Children Index (IDACI) Dataset Much of the change in IDACI distribution for 2016/17 is caused by the EFA updating the IDACI data set from 2010 to This has led to a nationwide overall reduction in the total need of pupils as defined by IDACI as the deprivation weightings for individual areas have been updated. As a result Hounslow s measured level of IDACI deprivation has fallen. Hounslow IDACI Eligible proportion of NOR Dataset 2015/ /17 Change Change % IDACI Band 1 2 3, , , % IDACI Band 2 5, , (353.00) (6.91%) IDACI Band 3 8, , (2,813.00) (31.93%) IDACI Band 4 5, , (3,412.00) (57.44%) IDACI Band 5 2, (2,192.00) (95.70%) IDACI Band 6 1 1, (1,520.00) (99.91%) 1 children living most deprived areas 2 children living in least deprived areas As a consequence it was important to ensure that the Council did not move away from the quantum funding being allocated from the deprivation factor using IDACI. After completing many models, the best solution found was to move to Bands 2 to 5. 5 P a g e

6 Hounslow IDACI Funding Allocation Dataset 2015/ /17 Change Change % IDACI Band 2 0 1,013,089 1,013, % IDACI Band 3 0 2,503,500 2,503, % IDACI Band 4 2,486,031 1,620,739 ( 865,293) (34.81%) IDACI Band 5 1,473, ,829 ( 1,361,797) (92.41%) IDACI Band 6 1,329,290 0 ( 1,329,290) (100.00%) Total 5,288,946 5,249,156 ( 39,790) (0.75%) Further information on the school forum decision can be found on council meetings webpage - January 2016 School Forum Meeting. Schools can compare their 2016/17 IDACI data with that from 2015/16 by looking at the information contained on their budget certificate for both years. Any data related queries should be directed to the EFA Changes to number of children eligible for Free School Meals (FSM) The number of children registered as being eligible for FSM on day of the census has decreased by an average of 12.6% between October 2014 and October Free School Eligible proportion of NOR Meals 2015/ /17 Change Change % Primary 3, , (511.82) (13.77%) Secondary 2, , (249.24) (10.72%) Total 6, , (761.06) (12.60%) This is a significant change as 70% of Hounslow s schools will see a drop in their funding linked to this factor. Schools can compare their 2016/17 FSM data with that from 2015/16 by looking at the information contained on their budget certificate for both years. Any data related queries should be directed to the EFA. 2.2 New Split Site Funding Formula Schools Forum approved to operate a separate Split Site factor within the Schools Funding Formula whereby a school occupying an additional split site building would receive an expansion allowance based on the number of existing classes occupying the building when compared with the planned capacity of the building. 6 P a g e

7 2.2.1 Criteria to qualify for Split Site funding Part 1- a) It is a either a local authority maintained primary/secondary school, an academy or a free school for pupils aged 5 to 15 b) It is a school which is permanently expanding on an additional site If the both of the statements above are true proceed to part 2 Part 2- c) Where the additional site is on a distinct separate site Funding Period Funding available for a maximum of 3 years Calculation Allocation of funds will be based on the number of empty places at the additional site (planned places less actual places) Per Pupil Amount per pupil rate for 2016/17 Maximum Funding The split site funding is capped at a maximum level of 82, Cut to AWPU Funding in 2016/17 School Forum approved for the AWPU rates for 2016/17 to be reduced by 50 for one year only in order to fund the current DSG funding shortfall. School Forum will review the AWPU cut afresh as part of the 2017/18 budget mitigation strategy. Description AWPU Rates 2015/ /17 Change Change % Primary (Years R-6) 3, , ( 50.00) (1.50%) Key Stage 3 (Years 7-9) 3, , ( 50.00) (1.27%) Key Stage 4 (Years 10-11) 5, , ( 50.00) (0.92%) 2.4 NNDR Adjustments The Rates factor funds a school for an estimate of its National Non Domestic Rates (NNDR) bill, along with an adjustment for any over or under funding of their previous year s rates bill. For example; In 2015/16 a school received rates funding of 8,000 however, the actual NNDR bills paid during that year totalled 9,000. For 2016/17 the school s estimated rates bill is 9,500 on top of which they receive an additional 1,000 (which covers the NNDR shortfall for 2015/16). The school s rates funding for 2016/17 is therefore 9,500 plus 1,000 = 10, P a g e

8 Schools that have received a rates adjustment in 2016/17 that relates to an under/over funding of 2015/16 rates will need to make an adjustment to their 2015/16 accounts at year end to reflect the correct distribution of their rates funding. Your School Finance Officer will assist you with this adjustment 2.5 De-delegated Budgets (Primary Schools only) As part of the annual review schools forum approved to continue to dedelate current services in the pool. Service 2015/ /17 Change Contingencies 51,694 53,050 1,356 Free School Meals Eligibility 18,851 19, Staff Costs/Supply Cover 471, ,029 12,366 Support to UPEG & Bilingual Learners 90,854 93,236 2,382 Behaviour support services 310, ,096 8,152 Total 944, ,756 24,750 Increase in the 2016/17 funding relates to changes in pupil numbers. 2.6 Funding Protection Level The following funding protections are applied in accordance with the Schools and Early Years Finance regulations Minimum Funding Guarantee (MFG) The MFG protects schools with reducing budgets, whilst the cost of MFG has to be met within the Schools DSG Block DSG. The MFG has been set nationally at minus 1.5% per pupil. Where there is a positive figure on this line (i.e. a number with no brackets around it) this means that the school has received this amount of additional funding in order to bring it up to the MFG level Funding Cap To afford the minimum funding protection for those schools that see reduced funding, it is necessary to apply a limit to the value a school can gain. The capping limit will always depend on the affordability of the MFG, therefore if used the percentage applied may need to change. For 2016/17 the budget gains are restricted at 1.5%. Where there is a negative figure on this line (i.e. a number with brackets around it) this means that the schools budget has been capped by this amount in order that the MFG can be funded across all schools. 8 P a g e

9 2.7 Growth Fund (Primary Schools only) In accordance with EFA funding guidance schools forum approved to set aside a growth fund for primary schools who are planning expansions and/or have agreed to take on additional classes. Dependent on in year budget pressures Schools Forum have approved a budget of 1.28m to be allocated across the number of actual places at October 2016 count. 9 P a g e

10 3. HIGH NEEDS BLOCK FUNDING In line with current EFA regulations the local authority will clawback top-up funding associated with vacant places. 3.1 SEN Statemented Pupil Top-Ups An indicative budget has been included for schools within the budget certificate statement for SEN statemented top-ups (primary and secondary only) Exceptional SEN top-ups The indicative budget has been based on statement data provided by the SEN Team in December The top-up funding is linked to individual children and SEN team will calculate adjustment on a per day basis of child s attendance. Budgets will be updated at the end of each term during 2016/17 to; calculate the daily cost due to or from the school for each statement adjust for pupil changes relating to ended and new statements adjust for changes agreed through the annual review or high need panel process The funding per point has reduced by 1.5% from to Special Schools and SEN Centres Hounslow fund the maintained special schools and SEN centres on a placeplus approach (Core and Top-Up) and are only responsible to fund the topup for places for Academy special schools and SEN centres. The Academy special school and SEN centres receives base funding directly from the EFA which has been recouped from the Local Authorities High Needs DSG funding allocation Special Schools The funded places and top-up funding included within the budget reflect; the agreement reached between the SEN Team and the individual Special School 1.5% cut in special school funding MFG protection calculation 10 P a g e

11 3.2.2 SEN Centres The funded places and top-up funding included within the budget reflect; funded places agreed between SEN team and the SEN centre agreed staffing structures submitted by SEN centres SEN Centres are outside of the scope from the MFG regulations and thus no calculation is performed. 3.3 Maintained Alternative Specialist Provision (Woodbridge Park) In addition to the normal Pupil Referral Unit (PRU) activity, Woodbridge Park are commissioned to provide other alternative education provision services which include: Continuing Access to Education Hospital Education SEN BESD provision Hounslow fund Woodbridge Park on a place-plus approach (Core and Top- Up) for agreed places. With the exception of Continuing Access to Education (CATE) and Hospital Education the other commissioned services attract a top-up. Service Core Funding Continuing Access to Education 18,421 Hospital Education 18,421 PRU - Primary (KS1/2 & 3) 10,000 PRU - Secondary (KS4) 10,000 SEN BESD Provision 10,000 The funded places and top-up funding included within the budget reflect; the agreement reached between the Council and Woodbridge Park 1.5% cut to funding MFG protection calculation 11 P a g e

12 4. PUPIL PREMIUM GRANT In addition to DSG schools receive Pupil Premium Grant (PPG) for the following; Pupil Premium Primary: pupils that have been eligible for FSM in the last 6 years (Ever 6 FSM) based on Jan-16 census Secondary: pupils that have been eligible for FSM in the last 6 years (Ever 6 FSM) based on Jan-16 census LAC (Looked After Children): per child that has been looked after for at least one day as recorded in the March 2016 Children Looked After data return (SSDA903) Children Adopted from Care: per child that has been adopted from Local Authority care, or who left Local Authority care under a special guardianship order or child arrangements order (previously known as a residence order) as recorded on the Jan-16 census Service pupils: per child recorded as a Service child on any Jan Census in the last 6 years (Ever 6); or per child in receipt of pensions under the Armed Forces Compensation Scheme (AFCS) and the War Pensions Scheme (WPS) 2016/17 Rates 1, ,900 1, The unit rates applied for PPG in 2016/17 remain at same level as 2015/16. The indicative Pupil Premium allocation on your Budget Certificate Statement includes the FSM, Service Child and Adopted from Care elements at 2015/16 eligibility levels, using 2016/17 unit rates. No funding estimation has been made for the looked after children element of the Pupil Premium as this funding is provided directly to you by the Looked After Children s Education Service (LACES). Final allocations are likely to be different from the indicative figure given, and will be based on 2015/16 data once it has been checked and finalised by the DfE. We will update the PPG allocations as soon as these are communicated to us during 2016/17. Using the 2016/17 rates above schools may be able to better estimate their 2016/17 allocation as they will have access to the data they supplied on the January 2016 census. When planning budgets schools should note the reduction in the number of eligible children registered for FSM between October 2014 and October 2015 (2.1.3) as this may have an impact on the PPG funding amount received in 2016/ P a g e

13 5. OTHER REVENUE GOVERNMENT GRANTS PAID BY THE COUNCIL 5.1 Early Years Pupil Premium Grant The early year s pupil premium (EYPP) is additional funding for early years providers to improve the education they provide for disadvantaged 3 and 4 year olds. The 2016/17 funding rate per eligible child who takes up the full 570 eligible hours will receive 0.53p per hour. For the financial 2016/17 EFA have confirmed that they intend to use school and early year s census to collect information on eligibility. Further information on the EYPP can be found on DfE s webpage - Early Years Pupil Premium: Guide for Local Authorities. 5.2 Universal Infant Free School Meal Grant (UIFSM) The grant is designed to support schools in delivering the legal requirement to offer free school meals, meeting the school food standards, to all their pupils in year groups for reception, year 1 and year 2. The 2016/17 funding remains at 2015/16 level, 2.30 per meal. Further information on the UIFSM can be found on DfE s webpage - UIFSM: Guide for Local Authorities. 5.3 PE & Sports Funding The grant funding is to fund additional and sustainable improvements to the provision of PE and sport, for the benefit of primary-aged pupils, to encourage the development of healthy, active lifestyles. Funding for 2016/17 has not been confirmed but in 2015/16 the funding was: 2015/16 Schools with 16 or fewer eligible pupils 500 per pupil 8,000 lump sum Schools with 17 or more eligible pupils plus 5 per pupil Further information on the PE & Sport funding can be found on DfE s webpage - PE & Sport Premium for Primary Schools. 13 P a g e

14 5.4 Year 7 Catch-up Premium The literacy and numeracy catch-up premium gives schools additional funding to support year 7 pupils who did not achieve at least level 4 in reading or maths at the end of key stage 2 (KS2). Funding for 2016/17 has not been confirmed but in 2015/16 the funding a school received was 500 for each pupil. Further information on the Year 7 literacy and numeracy catch-up premium can be found on DfE s webpage - Year 7 Catch-up premium guide for schools Bursary Fund This grant is to provide financial support to help students overcome specific barriers to participation, so they can remain in education. Further information can be found on the Bursary guidance page. Further information on the Bursary guidance can be found on DfE s webpage Bursary Fund Guide. 5.6 Schools Direct This funding is provided to schools by the National College of Teaching and Learning (NCTL) to contribute towards the costs of training teachers on Schools Direct (salaried) courses. Further information on the Schools Direct can be found on DfE s webpage - Schools Direct guidance for lead schools. 5.7 Reception Baseline Assessment This funding covers the basic cost of using the reception baselines assessment if schools use an approved provider. Further information on the Reception baseline Assessment can be found on DfE s webpage - Reception Baseline Assessment Guide for Schools. 14 P a g e

15 6. CONTACT DETAILS Data queries relating to Schools Block Formula Education Funding Agency (EFA): Data and Funding enquiries relating to: SEN Statement (top-ups) SEN Centres Special Schools Enquires relating to Early Years data and funding Schools Block Funding Other Finance queries Special Education Team: Strategic Finance: Strategic Finance: 15 P a g e

16 Finance and Corporate Services London Borough of Hounslow Civic Centre Lampton Road Hounslow TW3 4DN 16 P a g e