Finance Administrators and Bursars Group
Jan Powley and Kim George
March 2015
Agenda
Welcome and Introductions Audit Presentation School Funding 2015-16 HCSS Coffee Break SFVS Year End Guidance Best Practice Questions and Close
15-16 Funding
Another flat cash settlement so apart from including 2013-14 DSG underspend, no changes to the formula
No national formula funding changesA tight budget settlement
Year Primary
Secondary
Inflation £’m
2004-05 5.00% 4.00% 4.84
2005-06 5.00% 4.00% 4.40
2006-07 4.00% 3.40% 3.82
2007-08 3.70% 3.70% 3.98
2008-09 2.10% 2.10% 2.25
2009-10 2.10% 2.10% 2.47
2010-11 2.10% 2.10% 2.57
2011-12 -1.50% -1.50%
2012-13 -1.50% -1.50%
2013-14 -1.50% -1.50%
2014-15 -1.50% -1.50%
2015-16 -1.50% -1.50%
Minimum Funding Guarantee – guaranteed per pupil increases
Secondary School – 1,017 pupils, high levels of deprivation
Guaranteed Levels of Funding
Year Guaranteed level of funding per
pupil£
MFG%
2007-08 5,924.96 3.7%
2010-11 5,833.54 2.1%
2015-16 5,627.86 -1.5%
Primary School – 595 pupils, low levels of deprivation
Guaranteed Levels of Funding
Year Guaranteed level of funding per
pupil£
MFG%
2007-08 4,065.98 3.7%
2010-11 4,003.25 2.1%
2015-16 3,862.10 -1.5%
£4,776.87 for 2015-16 for primary and secondary pupils
Each 100 secondary pupils generates £477,687
Basic Entitlement (AWPU) = £444,343Average deprivation £59,753Other pupil-related factors based on average
incidence £34,024Shortfall in schools block = £60,433
Schools Block Unit of Funding
Schools need to be aware of impending budget pressures
Ensure they are factored into medium term budget planning
Living Wage - £7.65 and £7.85 per hour from 01 April
Pay Awards – unfunded pay awards in 2013-14 and 2014-15
Teachers pension costs – increase from 14.1 to 16.48% September 2015
Cost Pressures
Non-teachers pension costs – increased by 0.5% in each of 2014-15, 2015-16 and 2016-17 rising to 22.6%
Removal of contracted-out rebate for National Insurance in April 2016 – additional 3.4% for anyone in an occupational pension scheme
General inflation e.g. utility billsErosion of MFG protection for some primary
schools
Cost Pressures
Nursery Schools – maintain current values (MFG protects the basic hourly rate at 98.5%)
Special Schools £10k per place plus top-ups and outreach
PRU £8k per place Apr – Aug, then £10k per place Sep – Mar, plus top-ups and outreach
Top-ups reduced to maintain cost-neutral position
Schools Forum must now be consulted on all high needs places, top-ups etc
Formula Funding 2015-16
Increase in ISB from £144.059m to £165.658m
Increase due to:Addition of NRA’s £16.9m£2.5m of 2013-14 underspend (maintain
AWPU £1.28m, Prior Attainment £915k, MFG 305k)
£665k underspend – 75% AWPU 25% IDACIOther volume changes £2.6m
2015-16 Formula Funding
Additional 355.50 primary pupils, 135 secondary pupils
Only factor to have reduced is FSM Ever 6 primary pupils
Saving on lump sum due to merger of infant and junior schools
Scaling back of gainsPrimary:Secondary funding ratio£915k and £665k – one off funding?
2015-16 Formula Funding
Primary Secondary
2014-15£
2015-16£
Increase£
2014-15£
2015-16£
Increase£
AWPU 3,222.75 3,232.78 10.03 4,443.43 4,465.94 22.51
IDACI 1 54.40 57.35 2.95 60.28 66.97 6.69
IDACI 2 68.00 71.69 3.69 75.35 83.71 8.36
IDACI 3 81.60 86.03 4.43 90.42 100.46 10.04
IDACI 4 95.20 100.36 5.16 105.49 117.20 11.71
IDACI 5 108.80 114.70 5.90 120.56 133.94 13.38
IDACI 6 122.40 129.04 6.64 135.63 150.68 15.05
Low Prior Attainment
515.87 568.22 52.35 725.96 863.49 137.53
One-off increases to factor values
2015-16 Devolved Formula Capital
Link to DfE website to find out allocation https://www.gov.uk/government/publications/capital-allocations
Will be paid into local bank accountDo not confuse with revenue Pay DFC invoices from local cheque accountOnly pay what the scheme allows you to pay!DFC balances to be transferred into bank
accounts in June
HCSS
AWPU, IDACI and low cost high incidence values must be reduced to 14-15 rates from 16-17 and beyond
Consolidated April payments to be added as allowances
Inflation rates for Teaching and Non Teaching staff
SFVS
The self-assessment signed by the Chair of Governors will need to be submitted by 31 March 2014
Schools should electronically submit their completed SFVS return to [email protected]
Make sure you have a designated person to take responsibility for the assessment
Planning of Governors’ meetings to incorporate SFVS requirements
SFVS
• Proposed changes subject of consultation• Additional questions and support notes• 3 questions relating to pay and conditions• Have your pay decisions been reached in
accordance with a pay policy based on clear performance criteria?
• Where necessary, or appropriate, has the use of professional independent advice formed part of the pay decision process?
SFVS
• When making pay decisions, has consideration been given to wider context, e.g. in pay in schools with similar circumstances, or other benchmarking data?
Year End Guidance
Key deadlines1st bank claim – must be in the LMS team
on Friday 27 March (emailed to [email protected])
2nd bank claim – in LMS team by Thursday 16 April April (emailed to [email protected])
Draw a line on bank statement at 31 March
Year End Guidance
Use the checklist to ensure you have completed all tasks
The checklist is available on the Children and Learning Grid within the finance section
Do NOT account for new year advance until you have been given the go ahead to move into the new year (in bank accounts 02 April)
Urgent payments in new year – raise manual cheque, photocopy cheque and enter as a cash book journal when allowed in the new year
Year End Guidance
Orders can be raised in new year but no invoice processing
Open your new year in FMS6 – tidy up the structure if necessary
Submit accruals and prepayments by 24 April – limit is £1,000
CFR
Interim CFR on COLLECT by 15 MayMake sure FMS6 is the latest version –
there is a spring release planned Analysis of balances formFinal CFR by 22 MayCommitted balancesEvidence of specific grant balancesPupil premium/UIFSM can be carried
forward if unspent – provide evidence
Best Practice Guidance
Spring Term Recompense up to and including 31 March – Friday 27 March
Financial Returns Timetable 2015-16Orders only in the new year on FMS6 until given
the go ahead by your SFA.Do not do a preliminary close on FMS6 until
given the go ahead – do a back up before the preliminary close
Best Practice Guidance
Leasing Guidance – see separate slideGovernors Expenses Model PolicyCharging and Remissions Model PolicyComplete leasing return and submit by 31st
March 2015. Contact: Aklakur Rahman ([email protected])
NI tables in P7 – new figures on the gridNext FABs meeting is 24 June 2015 – reserve
your place by email [email protected]