Agenda item

Purpose of report: Scrutiny of Services and Budgets

This report sets out the current forecast position on the budget for Schools & Learning Services as at the end of November 2012.

Witnesses:

·         Paula Chowdhury, Stragetic Finance Manager for Children, Schools and Families

·         Lynn McGrady, Finance Manager, Funding and Planning

Key Points Raised During the Discussion:

1.    An update was provided setting out the current forecast position on the budget for Schools and Learning Services at the end of November 2012. The Strategic Finance Manager stated that she hoped Members would be satisfied with the content but that if the Committee required any additional detail, the report could be amended for future meetings.

2.    Members raised concern that at a time when the Council’s School Improvement Programme was struggling due to lack of funds it seemed wrong that money from the Schools and Learning budget was being used to offset losses in Children Social Care.

3.    Officers stated that whilst the underspend in the Schools and Learning Service was being used to offset overspends in Children Social Care, the underspend was mostly the result of vacant positions due to restructuring and the fact that the service was gearing up for further savings in 2013/14. It was explained that due to the level of the savings required, implementation of efficiencies had to commence long before the start of the financial year.

4.    The Assistant Director for Schools and Learning stated that it had initially been thought that the Council’s role in School Improvement would diminish due to the increasing number of academies. However, the Government was now indicating that there would be a continued role for local authorities in monitoring the performance of all schools in their area.

5.    A Member stated that there was a need for more transparency and that it was important that officers be seen to be completely upfront about issues. It was accepted that the Council faced numerous financial challenges in the coming months and years and that everyone needed to be clear about potential problems.

6.    There was discussion around the layout of the data in the report, with Members suggesting that the Committee needed to have a better understanding of the wider Directorate Budget to properly analyse the information provided.

7.    The Finance Manager provided the Committee with an update on School Funding reform. Some of the issues created by the new funding formula were outlined, particularly the difficulty in funding disadvantaged groups. It was explained that to compensate, Cabinet had agreed to the transfer of £27m of Dedicated School Grant funding from core to deprivation funding. However, this in turn placed schools that received a low level of deprivation funding in a potentially difficult situation.

8.    Due to these issues, a letter had been written to the Secretary of State for a review with a view to amend the formula to allow more flexibility. A meeting was due to take place towards the end of February and officers would report back to the Committee with an update at the next meeting.

9.    It was stated that protection mechanisms within the total available Dedicated Schools Grant would ensure that no school lost more than 1.5% of funding in 2013/14 and 2014/15.

Recommendations:

      i.        That the current forecast position on the budget for Schools and Learning Services be noted.

     ii.        That officers feedback the outcome of the February meeting concerning formula flexibility so that issues can be raised when the Committee meets with Michael Gove in March.