Apologies were received from Mr P Burbidge, Mr J Docherty, Ms T Kneale, Mrs K Rooke and Mrs S Woodrow.

None.

Mr T Edwards declared an interest in agenda item 6: Report of Budget Working Group as a Governor of Fairfield High School.

Mr S Robertson declared an interest in agenda item 6:  Report of Budget Working Group as a member of staff at Aylestone Business and Excellence College.

To approve and sign the minutes of the meeting held on 19 October 2012.

RESOLVED:  That the Minutes of the meeting held on 19 October 2012 be confirmed as a correct record and signed by the Chairman.

To receive a presentation providing an update on the Council’s budget.  (A copy of the presentation has been circulated separately to Members of the Forum.)

The Forum received a presentation from the Assistant Director People’s Services Commissioning providing an update on the Council’s budget.

A copy of the presentation has been put on the Minute book with the agenda papers.

The Assistant Director commented that he intended to meet colleagues to discuss options individually as well as meeting existing groups, rather than establishing a new working group for this specific purpose.  He highlighted the wish to explore what the unintended consequences of service reduction proposals might be, especially where the local authority provision was to receive a significant reduction.

A concern was expressed about the reduction in early years funding given the research evidence that had been produced on the benefits children derived from early years provision.  The Assistant Director reiterated that the proposals the Forum were considering were concerned with the shifting of funding from the early intervention grant, to the Dedicated Schools Grant, in line with national government requirements, and reductions in support to providers. Discussions would take place as proposals were confirmed.

To consider the report of the Budget Working Group (BWG) on the following matters: the Council’s financial position, Dedicated Schools Grant (DSG) settlement and proposed budget 2013/14, schools ICT network – cross-subsidisation and future development options, DSG underspend 2011/12 and a request from Fairfield High School – low prior attainment funding and underfunding of pupils from outside Herefordshire.

The Forum considered the report of the Budget Working Group (BWG) on the following matters: the Council’s financial position, Dedicated Schools Grant (DSG) settlement and proposed budget 2013/14, funded early education for 2 year olds, schools ICT network about cross-subsidisation and future development options, DSG underspend 2011/12, and a request from Fairfield High School – low prior attainment funding and underfunding of pupils from outside Herefordshire.

The Vice-Chairman of the Forum presented the report on behalf of the BWG with additional detail provided by the Senior Finance Manager.

The Senior Finance Manager highlighted that since the school funding values had been declared to the Education Funding Agency in October 2012 the Department for Education (DfE) had made an additional £149k available to fund new growth of 14.5 places in special schools.  As the previous budget assumptions had provided for growth funding to be transferred from the Schools Block it was therefore proposed that this extra funding be added to the Schools Funding Block, increasing the per pupil funding by £7 per pupil in the final submission to the Agency.

The SFM also emphasised the complexity of estimating the funding requirement for the High Needs Block.  A number of proposals before the Forum therefore sought to protect that budget alongside a review of the expenditure on services within that block and their management.  It was observed that the need for special school places had grown significantly over the last ten years and that this trend was expected to continue.

Fairfield High School had requested a recalculation of its budget for Additional Educational Needs, which had been calculated on the known prior attainment scores of 61 pupils in year 7 rather than the 89 pupils actually admitted.  Unfortunately no prior attainment information was available from Wales and so the average attainment had been used for all pupils.  It was asked whether in future there could be some mechanism for recalculating budgets in such cases.  The SFM commented that the National Funding Formula was quite prescriptive and would not permit such an approach.

The Forum gave particular consideration to the DSG underspend 2011/12 and the proposal to set aside a provision to meet the potential deficits of sponsored academies.

The Budget Working Group had been advised that the DfE had indicated that three schools, each with a deficit, could progress as sponsored academies during the next 12 months.  In these circumstances, under The Academies Act 2010 all three schools could close and open as new academy schools leaving any deficit behind. School finance regulations provided for any such deficits to be treated as DSG central expenditure.   The BWG’s recommendation in the report to the Forum proposed that a provision should be set aside to meet this deficit were it to materialise.

The Vice-Chairman drew attention to an article that had appeared in Hereford Times on the proposal to set aside a provision.  A paper was circulated on behalf of two of the schools in response to the article in the Hereford Times.

A  ...  view the full minutes text for item 105.

To receive an update on capital funding programme for 2012/13.

The Forum received an update on the capital funding programme for 2012/13.

The interim Head of Sufficiency and Capital Commissioning presented the report.

It was noted that because of the limited funding available for 2013/14 schools had not been invited to submit bids.  The Capital Working Group would meet to discuss the allocation of funding.

It was confirmed that a contingency sum within the capital maintenance allocation was needed to deal with issues such as the consequences of severe weather and was ring fenced.

The Forum noted the report.

To consider the membership of the Budget Working Group.

The Forum considered the membership of the Budget Working Group.

In accordance with the Forum’s decision on the Group’s composition in October 2012 nominations had been invited and received from representative groups.  These were set out in appendix 1 to the report.

RESOLVED: 

That    (a)        the membership of the Budget Working Group be approved as set out in appendix 1 to the report; and

(b)             Mr A Shaw be appointed Chairman of the Budget Working Group for the remainder of the ensuing year.

To consider the Forum’s work programme.

The Forum agreed that the following matters would be discussed at the meetings in March and May:

Friday 12 March: To consider proposals for the “Top up” funding tariffs for the High Needs Block 2013/14.

Friday 3 May (rearranged from 17 May): Dedicated Schools Grant Underspend 2011/12.

The following meeting dates have been scheduled:

Tuesday 12 March 2013 9.30 am

Friday 17 May 2013 9.30 am

Friday 12 July 2013 9.30 am

Friday 18 October 2013 9.30 am

Friday 29 November 2013  9.30 am

Friday 24 January 2014 9.30 am

Friday 28 February 2.00 pm 

Monday 17 March 2014 9.30 am

Friday 16 May 2014 9.30

The Forum noted the dates of future meetings and the change of the date of the meeting scheduled for 17 May to Friday 3 May 2013.