Agenda item

The financial year end position was noted, showing an overspend of £2.292m. There was an underspend on Early Years but the overspend carry forward of £2.86m on High Needs gave an in-year variance of 13%, with an accumulative roll forward of £7.196m (4.43% above the DSG settlement).  The cumulative deficit of High Needs was £8.3m but this was not the highest nationally. The majority of LAs were known to be predicting overspends in High Needs and this information was publicly available.

It was confirmed that the DSG was a ring-fenced grant, appearing on the Council’s balance sheet as a debtor.

A summary had been provided showing the DSG budget and outturn by block:  an accumulated surplus of £221,000 in the Schools Block would be carried forward into the next financial year.  It was explained that the CSSBlock was overspent because of the VAT element, due to insufficient time given to claim licenses: the LA planned to claim this amount back from HMRC in the following year.  As noted, there was an underspend on the Early Years Block which was due to uptake, with a predicted carry forward of £450,000.  It was anticipated the ESFA would recoup a portion of this underspend.  There had been a general increase in uptake hours, but these had not been spread proportionately.

The High Needs Block variances were highlighted and the continued increase in demand in the period between 2015 and 2018.  The largest areas of spend were described, being independent special schools, out of borough placements and post-16. Graphs had been provided showing year on year analysis and to demonstrate trends of those assessing services and the in-borough movement of SEND pupils. The categorised cost range of pupils indicated that the average cost had come down to approximately £2,000 per learner in 2018-19 although there were still some larger cost ranges being supported.  It was confirmed that the budget allocations reflected that there were insufficient funds to meet need. It was pointed out that achieving an underspend in High Needs could not be assumed, with elements of greater need and pressures moving to mainstream schools.

The reserves of maintained schools and nurseries were highlighted, and it was confirmed the LA had now received all budget plans for 2019/20 and financial viability over the next three years was being considered.  It was anticipated that the majority of any reserves would be used within that period and the LA would work closely with any schools forecasting deficits.  Certain schools showed significant reserves of 5% or 8% and these schools had been approached about how these funds were to be used.  To date, all bar one school had responded, and, in the majority of cases, these were operational costs with less being capital.  It was planned that Schools Forum would be updated on this issue at the second meeting in the Autumn term 2019.

SALT expenditure was queried, and clarity requested on the use of the descriptor ‘elsewhere’.  It was suggested some schools could be purchasing privately and Nic Barani agreed to work with Vikram Hansrani on this matter.

Further information would be requested from Michael Jarrett on the apparent lower demand in the PVI sector and whether it had been necessary for any schools to close their nurseries. 

As recommended, Schools Forum NOTED the Annual DSG Report 2018/19.

The Chair thanked Nic Barani and colleagues for the comprehensive report.