Agenda item

(a) Minutes of the Schools Finance Group (SFG), 7 June 2023, attached.

Also available at

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

(b) Report of the Director of Children and Young People’s Futures and

Director of Finance and Public Value (DEF/23/08) attached.

DISCUSSION:

(a) Schools Finance Group Minutes – 7 June 2023                 

The Forum considered the above minutes, including the respective minutes relating to the Finance Update Report at (b).

Also available at

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

DECISION:

(i) that the minutes of the Schools Finance Group (SFG), 7 June 2023 be received;

(ii) that in respect of SFG note 5, information to all schools on how to access various funding for asylum seeking children, to help reduce the burden on school budgets, would be welcomed.

ACTION: 

(i) Director of Finance and Public Value (Adrian Fox)

(ii) Head of Education (Rachel Shaw).

(b) Finance Update Report

The Forum considered the report of the Director of Children and Young People’s Futures and Director of Finance and Public Value (DEF/23/08).

The Report (DEF/23/08) covered:-

Dedicated Schools Grant (DSG) and Schools Funding Outturn 2022/23;

DSG Deficit Management Plan;

High Needs;

Early Years;

Carry Forwards; and

Risks.

The draft DSG outturn position was an overspend of £11.5 million prior to transfers to the DSG Adjustment Account and ringfenced balances, comprising Individual School Balances (ISB) of £20.8 million, ringfenced balances of £6.7 million and deficit transfer to the DSG Adjustment Account of just under £39 million.  Although an improvement of £1.7 million from month 11 position there was continued demand on SEN placements within the independent sector and the delays in implementing management actions identified within the Safety Valve / Improvement Plan.  Of the revised £10 million management action expected to be delivered in 2022/23 just under £5 million of the actions had been achieved, projecting a cumulative DSG deficit to March 2023 of £125.4 million, which was £3.2 million over what was stated

in the Safety Valve Submission, February 2022. The Authority had now been invited into discussions to join the next (fourth) tranche of the Safety Valve Intervention Programme, with Devon’s management plan being refreshed for submission to the DfE in July 2023.  A SEND refresh was held during May 2023 where Senior Officers of the Local Authority as well as school Headteachers and education staff looked at the current safety valve plan and projects aligned with the SEND Improvement plan and improve outcomes for Devon’s children. 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.

Forum discussions, together with Members’ comments included:-

-this was a particularly challenging time for the schools sector with a number of schools setting deficit budgets.  A clear and timely communication to schools to assist them in looking at their structures and systems and in not putting off difficult decisions to produce sustainable budgets would be welcome, noting for example that DCC admissions were encouraging schools to work collaboratively in areas where falling primary school roles were projected to be more significant, to support the longer term sustainability of all schools affected;

-the current and ongoing work with other LAs, including those within the DfE Safety Valve programme, reviewing practices/trends for managing these national SEND pressures;

-noting that progress was being made in some SEND/High Needs budget areas, but recognising that a realistic timescale for more longer term sustainability was projected at 3-4 years and with vigorous ongoing monitoring required to be accepted onto the DfE Safety Vale programme.  Further information intended to be shared with all stakeholders was anticipated in the autumn term;

-balancing successful SEND practice and improved outcomes within Devon schools and ultimately improving Devon’s High Needs deficit budget, against challenging school budgets; and

-resources and work streams for Devon’s special schools’ outreach/inreach provision, to support a reduction in independent school placements.  

DECISION:

(a) that the DSG Draft Outturn position (subject to Statement of Accounts sign off) as set out in Section 1 of Report (DEF/23/08) be noted;

(b) that the surplus budget carry forwards for Schools, de-delegated, central school services and High needs as set out in Section 5, table 6 of the Report be noted;

(c) that the Early Years surplus carry forwards as set out in Section 4 and Section 5, table 6 of the Report be approved;

(Vote: Schools, Academies and PVI)

(d) that the Individual School Balances carry forwards as set out in Section 5, table 7 of the Report be noted;

(e) that the DSG Deficit Reserve transfer as set out in Section 5, table 8 of the Report be noted; and

(f) that in noting (a), (b), (d) and (e) above, the Forum continued to recognise the seriousness of the High Needs deficit that had to be reduced as soon as possible as discussed above.

ACTION: 

Director of Finance and Public Value (Adrian Fox)