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 lms@luton.gov.uk

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 lms@luton.gov.uk)

2nd bank claim – in LMS team by Thursday 16 April April (emailed to lms@luton.gov.uk)

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 (aklakur.rahman@luton.gov.uk)

NI tables in P7 – new figures on the gridNext FABs meeting is 24 June 2015 – reserve

your place by email lms@luton.gov.uk