To consider the report of the budget working group (BWG) on the following matters:

·         Dedicated schools grant outturn 2016/17;

·         Apprentice Levy;

·         Trade union facilities; and

·         Simplifying financial services to schools.

The schools finance manager presented the report.

Dedicated schools grant outturn 2016/17

The overall underspend of £211k was noted. It was recommended that this be added to balances with particular reference to pressure on the high needs budget. Work would take place over the summer on budget proposals for high needs expenditure in 2018/19. The outcome of this work would be brought to the forum in October for consideration.

Apprentice Levy

The schools finance manager reported that total available funding was estimated to be £155k. He reported that take up of funding from schools had so far been low. If funds were not used they would be reclaimed by the government. A reminder had been sent to all schools explaining how to access the funding.

The schools finance manager anticipated that the introduction of teacher apprenticeships would lead to better take up of funding. It had been suggested that the authority ask the DfE for an extension of the timescale for allocation of the current funding until these teacher apprenticeships were available.

Trade union facilities

The schools finance manager reported that the budget working group had discussed expenditure and de-delegation of trade union facilities. The school finance manager explained the changes made in the voucher system used. Comparison against national and “statistical neighbour” authority averages showed that Herefordshire was charging more per pupil. The schools finance manager noted that Herefordshire suffered from diseconomies of scale in comparison to other larger authorities.

The HR services manager had been requested to present a report to schools forum in October on trade union facilities. The schools finance manager would present plans for changes in de-delegation funding at a future meeting.

Mr Lewandowski recognised that there could be concern if Herefordshire was shown to be charging more than other authorities but cautioned that such comparisons might not be valid. For example the Herefordshire charge included facilities for non-teaching staff which might not be the case with other authorities. He also reported that other authorities were known to supplement the trade union facilities fund directly. The government was already investigating teacher facility time and was collecting data that could be directly compared.

It was acknowledged that pressure on school budget had led to more redundancies which incurred greater cost in union support during statutory processes. It was also noted that Herefordshire enjoyed good industrial relations and had a good HR department.

Mr Deneen asked what the background had been to the item being presented to the budget working group. He noted that the arrangements applied to local authority schools and those academies that chose to buy in. He supported the view that Herefordshire enjoyed good working relationships between schools, the authority and unions.

The schools finance manager explained that the chairman of the budget working group asked to be briefed in context of historical levels of expenditure and the changes to the voucher system. These changes would require Schools Forum to review the level of de-delegation.

Simplifying financial services to schools

The schools finance manager briefed the forum on proposed changes to three financial services provided to schools. He noted that these changes were required to reflect current staffing arrangements in the authority and the changes which had taken place in schools in recent years.

It was proposed that work take place to explore alternative arrangements for providing insurance for local authority schools. It was felt that schools could get better value directly from the market rather than through a local authority tendering exercise. However the local authority would need to ensure that it had suitable cover for its own liabilities should any school find itself uninsured or unable to claim on its policy. A formal report would be commissioned from the local authority’s brokers.

It was proposed that the school sickness absence scheme be revised. This scheme was used by primary schools and special schools only. Secondary schools were large enough to cover their own absences or buy cover from the market. The existing scheme was well supported and some academies bought in. The schools finance manager noted that benefits had been trimmed in recent years to keep costs the same. He stated that the scheme offered maternity cover in particular which was different from that offered by the market and that it was no longer possible to use Dedicated Schools Grant funds to cover any overspend. The scheme currently held reserves of £400k on the balance sheet to cover potential overspends. The schools finance manager intended to write to primary and special schools in September to ask for their views on moving the scheme to a de-delegated basis. This would require all primary schools to buy in but would allow overspends to be recouped the following year. Academies would be able to buy in on rolling five year contract.

Members expressed their support for the scheme and noted that primary and special schools generally had higher proportions of female staff and as such valued the maternity cover. It was noted that some schools used other schemes and said that these worked for them.

It was proposed that the local authority cease to operate a scheme claiming back school milk subsidies. Few staff at the local authority now knew how the scheme operated and schools could make their own claims. It was noted that for schools with very little subsidy it might not be worth the effort to claim. Some market providers would offer a claim service at no charge to the school but would increase the cost of milk to parents.

Resolved that:

a)    the Dedicated schools grant underspend of £211k for 2016/17 be added to balances; and

b)    net balances be retained to cover anticipated high needs pressures in the     coming years.

c)    A reminder about how schools can access the apprentice levy funding be circulated to schools; and

d)    members of the BWG and school forum be encouraged to disseminate information through other groups.

e)    the issue of Trade Union facilities be added to the work programme for the schools forum for 2017/18 academic year.