Agenda item

(To receive a report from Mark Popplewell, Head of Finance – Children's Services, which notifies the Schools' Forum of the revised budget for 2021/22 and seeks support for the proposed use of cumulative underspending from 2020/21)

The Chairman invited Mark Popplewell, Head of Finance – Children's Services, to present the item which advised the Forum of the revised Schools Budget for 2021/22 and sought support for the proposed use of the cumulative underspending from 2020/21.

The Forum were reminded that the Dedicated Schools Grant (DSG) was a ring-fenced grant that could only be spent for the purposes as outlined in the Department for Education Schools and Early Years Finance (England) Regulations.

It was highlighted that a revision to the Schools Budget was necessary each year to reflect the under or overspending arising on the DSG in the previous financial year and adjustment to the DSG once the Early Years figures had been confirmed.  The Forum was advised that under the DfE regulations, underspends were carried forward automatically to the following financial year, and that the local authority had to consult with the Schools Forum over its plans to utilise underspends, or address overspendings.

Page 50 provided details of the carry forward for 2020/21.  The Forum noted that the cumulative underspend carried forward as of March 2021 was £10.542m.  The uncommitted sum of the underspend was £4.573m which represented 0.71% of Lincolnshire's 2021/22 overall DSG (£646.900m).  This reflected the net overspends of £1.142m on budgets in 2020/21 held centrally within the DSG.  Details of which were shown in Appendix A to the report.  The Forum considered Appendix A, which outlined the financial year variances.

The Forum was advised that a thorough review of existing commitments had taken place, and that prudent financial estimates had been made.  Details of the existing commitments were shown in Appendix B to the report, which totalled £5.969m. The Forum gave consideration to Appendix B.

Details relating to the proposal for use of the uncommitted sum of £4.573m were shown on pages 50 to 52 of the report and these were considered by the Forum.

In conclusion, the Forum was advised that an increasing number of local authorities continued to incur deficits on their overall DSG account, largely because of overspends on their High Needs blocks.  It was highlighted that Lincolnshire was not in that position, as it had available reserves.  However, the local authority could not be complacent, and that in setting prudent arrangements and supporting transformational activity were seen as important measures to securing a financially sustainable DSG.

The Forum were invited to note the report and to support the local authority's proposed use of the uncommitted sum, as outlined in section five of the report.

During consideration of the report, the Forum raised the following comments:-

·       Thanks were expressed for an excellent report;

·       Some concern was expressed regarding the costs of out of county placements.  The Forum was advised that the purpose of the special school’s strategy was to create more places for children with special needs.  However, because of the needs and complexities of some children and young people, some outside placements would still be required.  The Forum noted the budget figures for the cost of out of county placements could be made available to the Forum after the meeting;

·       The Alternative Provision place funding underspend.  The Forum was advised that the initial arrangement was for two years; and that a base budget had been created to meet this ongoing cost.  The Forum noted that work was also being undertaken with regard to dual and single registration and how that data was being captured for funding purposes; and

·       The pressures faced by special schools and alternative provision and whether these settings would be guaranteed a positive minimum funding guarantee, or would they remain at a standstill position.  The Forum was advised that this would be included in budget work being undertaken during the autumn.  It was highlighted that the intention was to try and support those special schools and alternative provision settings with the increasing costs they are facing.

RESOLVED

1.      That the revised Schools Budgets 2021/22 Report be noted.

2.      That support be given to the Local Authority's proposed use of the uncommitted sum, as outlined in section 5 of the report presented.