Agenda item

(a) Minutes of the Schools Finance Group (SFG), 11 July, 14 September and 9 November 2022, attached.

(NB: The Forum considered AWPU recovery (note 4, SFG, 11 July) at its Special Meeting on 28 September 2022). 

Also available at

Schools Finance Group (SFG) – Education and Families (devon.gov.uk)

(b) Report of the Director of Finance and Public Value and Director of Children and Young People’s Futures (Interim), (DEF/22/11) attached.

DISCUSSION:

(a) Schools Finance Group Minutes - 11 July*, 14 September and

9 November 2022.

The Forum considered the above minutes, including the respective minutes relating to the Finance Update Report (DEF/22/11).

Also available at

Schools Finance Group (SFG) – Education and Families (devon.gov.uk)

*NB: The Forum had previously considered AWPU recovery (note 4, SFG,

11 July 2022) at its Special Meeting on 28 September 2022) and resolved:-

“(a) that the transfer of AWPU and per pupil funding (e.g. Pupil Premium) for pupils who are removed from a mainstream school roll, for reasons other than permanent exclusion, and are receiving education funded by the local authority other than at a school (EOTAS) be approved wef 1 September 2022;

(b) the transfer the AWPU and per pupil funding for each term that the pupil is in alternative provision funded by the LA be approved wef 1 September 2022; and;

(c) that the Head of Education send a communication to all schools regarding their ongoing responsibility towards these pupils when in/out of school, together with information on the EOTA/medical provision placement setting role.”

DECISION:

that the minutes of the Schools Finance Group (SFG), 11 July, 14 September and 9 November 2022 be received and noting:-

(i) the Forum’s previous consideration at its special meeting (DEF, 28 September 2022, minute 59) of AWPU recovery (SFG, 11 July 2022, note 4); and

(ii) High Needs Place Funding (SFG, 9 November 2022, note 3) i.e. Devon changes in accordance with operational funding Guidance, wef 1 January 2023.

(b) Finance Update Report

DISCUSSION:

The Forum considered the Report of the Director of Finance and Public Value and Director of Children and Young People’s Futures (Interim) (DEF/22/11), which covered:-

-Budget monitoring month 6 (2020/21) Dedicated Schools Grant (DSG);

-Schools Block;

-DSG Deficit Management Plan;

-Early Years and Childcare services £376,000 underspend;

-High Needs;

-Safety Valve Investment;

-Safety Valve Workstream Savings;

-Impact of Cost Reduction on Overall Deficit;

-Capital Investment; and

-Risks.

In summary the report advised that:-

-The month 6 outturn forecast for 2022/23 saw an overspend in the overall Dedicated Schools Grant (DSG) of £36.9 million associated with the continued demand on High Needs and the growing demand on Special Educational Needs (SEN) placements within the Independent Sector despite creating more places within Devon’s Special Schools.  This was an adverse change of £2.6 million since month 5 (£2.5 million from month 4);

-The Management Action of £10 million reflected revised savings expected to be delivered in 2022/23 as per the Safety Valve submission to the DfE. To date, £3.4 million of Management Actions had been achieved since the start of the summer term;

-Current forecast indicated that £1.6 million of savings would not be achieved in this financial year due to 44 of the 77 planned 3-5 year placements within the Independent Sector leaving at the end of the summer term and a delay in resource base provision placements being occupied / opened. This was projecting a cumulative DSG deficit to March 2023 of £123.8 million; and

-The increasing DSG deficit could have a considerable impact on future education budgets within the DSG as well as impacting on the financial sustainability for Devon County Council. An urgent action was still required to reduce the demand on Education Health Care Plans (EHCPs) and independent placements.  All stakeholders need to work in partnership to be able to achieve this.

Forum Members’ discussion included that they were committed to working in partnership and sharing good practice with DCC and the whole school community, however they highlighted:-   

-Members’ deep concern at both the continued substantial DSG deficit and that the DSG Safety Valve Plan submission had still not been agreed by the DfE, noting that senior DCC leadership continued to seek confirmation of this.  Members hoped that a further approach could be made as a matter of urgency;

-the risk that the Cumulative DSG Deficit (Table 6 of Report (DEF/22/11) was continuing to rise whilst the DfE outcome was awaited;  

-EHCP funding for schools was not being received in a timely manner in many instances, whilst noting the SEND transformation ongoing discussions with schools about how to reduce the number of EHCP requests, which were much higher in Devon than the national average.   

DECISION:

(a) that month 6 DSG monitoring position as set out in report (DEF/22/11) be noted, subject to Members’ concerns above; and

(b) the current Safety Valve / DSG management plan position as set out in report (DEF/22/11) be noted, subject to Members’ concerns above.

(c) that the Head of Education follow up school’s EHCP funding concerns.

ACTION: 

Director of Finance and Public Value (Adrian Fox) – (a) and (b); and

Head of Education (Rachel Shaw) – (c).