Agenda item

Joseph Holmes presented the PFI 2015-16 paper to the group.  SBC currently contributes £809k annually to the PFI Unitary Charge. The Council is looking to reduce this and took part in the Local Partnerships / DfE pilot. Joseph Holmes explained that SBC has implemented a strategy to review the outcomes of the report and develop a programme of work to take forward some of the options.  SBC has appointed consultants to help undertake this task and to look at ways to reduce costs. A variety of strands are being looked at (see page 14 of the report). There will be a future report to Schools Forum as this work progresses.

Also SBC is currently addressing an error of the £500,000 (part of the PFI contribution for 15/16) that was not added to the DSG and given to schools previously (see Appendix A – School Block Budget 2015-16 – page 17 of the meeting pack). Appendix A notes that the £500k will be part of the future budgets whatever decisions are made.

Beverley Pennekett (EFA) explained that regulations state that once schools have their budgets they cannot be re-determined in-year and this would need to be distributed next year. She said that if adjustments are required to the Schools Budget an application can be made to the Minister to dis-apply this regulation.  It was agreed that this would be done and that a joint letter would go from the LA and the Schools Forum seeking to re-distribute this year. It was also noted that the budgets would be re-determined using the formula but Schools Forum had wished to allocate according to numbers on roll so that all schools (and academies) benefited (as those on Minimum Funding Guarantee or capped would otherwise not receive any of the allocation). It was therefore agreed that the request to distribute on numbers on roll should also be included in the letter to the Minister. 

It was agreed that Joseph Holmes, Maggie Waller and John Constable would follow up the application to the Minister.

Nicky Willis asked if SBC gained interest on the £500k and Joseph Holmes explained that it had been part of the LA cash flow and invested accordingly with little interest accrued due to the low interest rate position at present.