To inform Schools Forum of the final Dedicated Schools Grant for 2009/10, the Outturn for 2008/09 and the rates rebates for the period 2000-2009.

The Finance Manager presented a report which informed the Schools Forum of the final Dedicated Schools Grant (DSG) for 2009/10, the Outturn for 2008/09 and the rates rebates for the period 2000-2009. He referred to the Key considerations set out in paragraphs 4 A, B and C in the report. He informed the Forum that the final DSG received was £33,000 more than expected and that the amount would be carried forward into next year’s budget. He emphasised that the DSG was a tighter settlement than the previous year and was less than inflation. He also emphasised that the DSG headline for 2010/11 was more generous and based on a 4.5% pupil increase which was equivalent to a cash increase of 3.7%. He referred to the Minimum Funding Guarantee which had increased and that the cost and breakdown by school was set out in the table on page 42. It was estimated to rise to £20 per pupil for 2010/11 which would be another pressure to be met. He made reference to the full budget Section 52 Statement set out in Appendix 1 to the report which detailed all Children’s Services spending.

A Member referred to the additional £33,000 DSG money received and asked if this should be treated as allocation. The Finance Manager agreed that the money could be allocated to schools but that as pupil numbers were not finalised by the Department for Children, Schools and Families until the end on June 2009 there would be a small balance every year. He emphasised that although the balance could be allocated to schools this year, in future years if there was a deficit would Schools Forum want to recover this money from schools?

The Director of Children’s Services advised that she would be content to allocate the money to schools. She further advised that if there were underspends at the end of the financial year and that although it was a small amount, the £33,000 would be carried forward to 2010/11 as required by DSG grant regulations.

The Chairman asked if the money could be used to cover a shortfall in this financial year. The Finance Manager advised that it was the intention to use the money for overspends on Banded Funding.

In answer to a Member’s question on the Section 52 Budget Statement, the Finance Manager informed the Forum that the £879,202 budget for Pupil Referral Units shown at line 1.3.1 on page 47 had been split by Primary and Secondary pupils, although that amount currently was actually spent on secondary aged pupils in the Pupil Referral Units. He would ensure that the treatment on the Section 52 budget statement would be accurate for next year.

A Member welcomed the DSG underspend but expressed concern that the Management had not considered alternatives for the use of the DSG underspend. The Director of Children’s Services advised that the suggestions in the report were provisional ideas and she had taken the view that it would be helpful for the Forum to look at these. She informed the Forum that if the underspend was allocated to schools it would be a one-off allocation. She further advised that the suggestions had been put forward for Governor support as a result of pressure from Governors. Business Plans were however needed for any suggestion.

The Assistant Director for Improvement and Inclusion referred to the DSG underspend at paragraph C on page 43 and informed Members that the £268,000 at paragraph C1 represented one additional child placement and was focussed at primary level. The Building Schools for the Future (BSF) money at C2 would enable a team to be put in place and be ready for the BSF programme.

The Assistant Director for Improvement and Inclusion made particular reference to the Governor Service Development, paragraph C5, in that a number of schools were struggling with governor support and management and the proposal outlined a business case to meet those issues. She advised that the list before the Forum was open and therefore could receive additions.

With regard to Schools ICT investment, the Director of Children’s Services advised that paragraph C4 were suggestions only. She advised that ICT in schools was going to require new investment but that currently there was no new money.

A Member referred to the Virtual Learning Environment (VLE) and suggested that it was an important priority and needed to be provided. A Member took the view that money on ICT for schools was not well spent through ICT services but that it was not their fault. A Member suggested that the ICT suggestions in paragraph C4 would need to have the backing of a business case.

A Member was unaware of the anxiety from Governors with regard to Governor services. The Member asked for evidence.

The Director of Children’s Services referred to discussions with Headteachers in their schools which had produced concerns about Governor Services. She advised that the majority of the money for Governor Service Development would be passported to schools. There were some schools, however, who were not able to do this alone. She informed the Forum that every decision had an effect on other areas and transparency was paramount. She further advised that the Governor Service Development was an extension to existing management arrangements for Governors.

A Member was of the view that the Governor Service Development should be supported.

The Finance Manager informed Members of the reasons why rates rebates had been received for Aided schools and following a question from a member that because rates were funded at actual cost, the rebates belonged to all schools as a whole. This was confirmed by legal opinion.  A Member took the view that it would not be sensible to put money back into schools through the Rates Rebates item at paragraph D, page 45. There were, however, some schools who were struggling financially so it would be a help to schools over a few years. A Member suggested that schools should have the choice of either having money in full in one year or spread over a number of years.

The Finance Manager advised that it was the intention to drip feed schools with the Rates Rebates money and to ask the Budget Working Group to develop a funding model for payment to schools.

RESOLVED:   That

(i)                 Schools Forum notes the final DSG settlement and the increase of 2.6% in the Individual Schools Budget and that the under allocation of £33,000 be used to support special needs;

(ii)               the proposals for the use of the 2008/09 underspend (including the rates rebates) as set out in paragraph 16C be noted and ask Headteachers Forums for ideas and business plans for the next Schools Forum meeting; and

(iii)       the debate regarding the pump priming Governor Service Development in the sum of £70,000 be considered as a separate item, Minute No. x refers.