Agenda item

George Grant explained that clarification had been requested on why High Needs Block (HNB) had carried a charge of £184,000 against the LA’s PFI unitary charges since 2013-14. Following examination of previous Schools Forum minutes and LA ledgers, no supporting records could be found to explain the rationale or consent given for this. 

The LA’s PFI contribution of £809,000 had been split over two blocks when the new blocks came into being, with £500,000 going into the Schools Block and £309,000 into the HNB. The full PFI factor, roughly matching the £800,000 was still paid out of the Schools Block. The additional amount paid from the HNB (£184,000) had not been consulted upon.  There was now a need to officially record what should have been carried out four years before. 

Schools Forum was asked to acknowledge the action taken and that the LA’s contribution to PFI was split between the schools and HNBs. 

Schools Forum agreed the proposal that the £184,000 contribution to PFI from the HNB should be recognised for the year 2018-19 only.

The Schools Block contribution was confirmed as £297,000 for 2018/19 only and would be reviewed for the year 2019-20.

The Chair thanked George Grant for all his work in clarifying the overall PFI funding, which was seconded by the Vice Chair.

The Chair added this agreement was not setting a precedent and stressed it was for the year 2018-19 only, but it had been important to regularise this issue as there had been a lack of clarity.

Cate Duffy explained that the LA’s contribution to the DSG was not the entire Council PFI contribution: there was also a cost of £1.4m inflation to the LA’s budget.

A member pointed out that the PFI schools were covering additional costs such as facilities management, which were not being subsidised.  It was felt that academisation made a difference as costs previously supported by the LA now had to be covered by schools e.g. contract management.

It was noted that this agreement for 2018-19 resulted in schools subsidising the PFI costs.

It was suggested a table be produced to show the overall picture of the PFI Unitary Charge costs and the sources of that funding. George Grant agreed to circulate this information which is included in these minutes below: