Agenda item

Budget Monitoring and Forecast 2019/20

To receive the above report.

Minutes:

James Norris, Head of Finance (RBWM), Achieving for Children outlined the above titled item. Forum Members were informed that the current DSG budget for 2019/2020 was £63,780,000 which reflected the following in year budget adjustments totalling a net reduction of £652,000. Members were told that the budget would be updated by the ESFA to reflect the final Early Years and High Needs Block allocations for 2019/2020. It was highlighted that budget reductions consisted of increased recoupment for academies direct funding of £652,000. Forum members were told that the current projected net in year deficit was £80,000. Material variances were as follows:

 

·         Early Years Block Private, voluntary and Independent nurseries clawback settlement 2018/2019 estimated at £250,000. ESFA updated guidance due June 2019.

·         High Needs Block £340,000 including Top up funding £300,000 based on 2018/2019 and additional place funding £40,000 reflecting indicative pupil numbers

·         Others net - £10,000

 

Forum Members were told that the net overspend would present an additional pressure on the dedicated schools grant general reserve which as of the 31st March 2019 was a deficit of £917,000, it was highlighted that the revised projected deficit as of 31st March 2020 could increase to £1,373,000. Future action included working with local partners to drive down costs of high needs services back in line with Government grant allocations as the level of overspend in the High Needs services remained unaffordable for RBWM. It was also noted that a number of successful cost control measures and savings initiatives that were implemented in 2018/19 would be carried forward into 2019/2020. Members were also told that in addition to these new strategies that

 

At the conclusion of the update, members queried whether there had been an overall improvement since 2018/19 and it was confirmed that there had been improvements in both risk and forecasting. Members commented that the update showed good news all around and that there was a continuance to good service contracts. James Norris highlighted that the underspend had been rolled forward and should be released back to schools, which was estimated as £5-6k per school placement. Future actions would include maintaining costs with AFC, and mitigating inflation rises, maximising CCG funding and keeping below the 1% threshold.

 

Forum members queried whether the £100,000 underspend would be returned to providers and it was confirmed that under the current formula that this money would go into reserves. Any extra funding through deprivation should not be overspent and that the £100,000 would go back into the DSG funding pot.

 

Kevin McDaniel commented that an annual conference had been held and that the nation formula for funding had been discussed and the impact. Members were told that the Minister for Education had been in attendance and there had been positive recognition. It was outlined that there were currently large amounts of pressure building within the system for health and wellbeing and SEND. The Chairman asked whether there was a particular localised view on funding and it was noted that the lead member, Councillor Carroll  had a clear focus of the disadvantaged children and areas of deprivation and that these were high on his agenda. The School improvement forum would drive inclusion, support with CAL block monies.

 

ACTION- That Councillor Carroll be invited to the next Schools Forum meeting.

The Chairman highlighted that he had received communication from the Ascot Heads Cluster and that they would like to be represented. It was clarified that membership of the forum was based on the number of children within maintained schools within the borough.

 

Vote of thanks; A vote of thanks was placed on record for Penny Francis and her contributions over the past 8 years to the Schools Forum. Members wished to thank her for her positive contributions and time given to the advancement of the forums agenda.

Supporting documents: