To consider further work to develop options to help Herefordshire schools make efficiency savings according the DfE advice set out in “Investing for the future, protecting the front line”.

The Schools Finance Manager presented a report considering further work to develop options to help Herefordshire schools make efficiency savings according the Department for Education advice set out in “Investing for the future, protecting the front line”.

The report stated that in the next few years most schools would need to need to make efficiency savings in order to balance the budget due to predicted reductions in funding. Savings had been suggested by government in the following four areas: procurement (10%), back office costs (10%), energy (5-15%), and collaboration and federation (a global sum of £350m).

The Property Operations Manager commented on the procurement of catering, grounds maintenance and cleaning services.  He explained the tendering process and the complications and timescales involved in letting contracts above £134,000, notice of which was required to be placed in the European Journal.   He also commented on the use of approved contractors which enabled Property Services to ensure contractors were compliant with legislative requirements, so offering protection to schools. 

The majority of schools purchased energy supplies through West Mercia Supplies (WMS).  The Property Services Manager reported that he considered WMS’s rates, which were monitored by Property Services, to be very competitive. He highlighted that schools could analyse their energy usage via the WMS website. 

He also commented on a number of invest to save initiatives such as special light fittings and controls of which Schools could take advantage.  Such initiatives would normally generate a saving after a five year period.

In discussion the following principal points were made:

·         Some concerns were expressed about WMS’s billing arrangements.  It had been suggested the Managing Director of WMS should be invited to address the Forum.  Members of the Forum proposed that he should be invited to one of the scheduled meetings for all Headteachers.

·         It was noted that the Wigmore Cluster had achieved an 8-10% saving on procurement on their grounds maintenance contract.  However, it was suggested that the sum saved (£2,500) needed to be balanced against the costs of establishing the Wigmore and Bromyard Clusters (£100,000).

·         That, on current prices, it was expected that it would take 20 years for a wind turbine to repay the investment in it.

·         A member commented on the savings generated through use of the Government Procurement Card.  The Schools Finance Manager commented that the intention was to trial the card with high schools to ensure that the scheme operated smoothly and then roll it out to the larger primary schools.  Members of the Forum considered that the potential to achieve savings through use of the Card should be taken advantage of at the earliest opportunity and that the Procurement Card should therefore be made available to all schools and settings as soon as possible.

RESOLVED:

That (a)     a task and finish group, the Procurement sub-group, be established to investigate the potential to achieve procurement savings in schools and make recommendations to Schools Forum in mid-2011;

(b)          progress reports be requested from the Wigmore and Bromyard clusters on the impact of the National Schools Leadership College pilots on school business management;

   (c)     the re-launch of the invest to save scheme be endorsed with a particular focus on energy savings;

         (d)    the Government Procurement Card should be made available to all schools and settings as soon as possible; and

   (e)    the Managing Director of West Mercia Supplies be invited to attend a scheduled meeting of all Headteachers.