Agenda item

10.45am  Report of the County Treasurer and Chief Officer for Children’s Services (DEF/17/06) attached.

DISCUSSION:

The Forum considered the report of the County Treasurer and Chief Officer for Children’s Services (DEF/17/06).

The Forum also noted the respective minutes of the Schools Finance Group (SFG) of

1 March 2017.

The report (DEF/17/06) covered:-

Budget Monitoring Month 10 (2016/17) Dedicated Schools Grant (DSG)

Carry Forward from 2016/17 (to 2017/18)

Education Services Grant (ESG)

The Month 10 DSG forecast was an overspend of £353,000, comprising £1.6m underspend on the Schools Block and a £2m overspend on the central expenditure costs of the DSG, subject to approval to be carried forward. A detailed chronology of the High Needs budget (forecast overspend, paragraph 1.1 of the report) had been made available to members.

In relation to the Carry Forward from 2016/17 the County Treasurer explained the implications (detailed in section 2 of the report) of:-

Option 1: approving the carry forward of the Central Expenditure deficit to 2017/18 as recommended by officers; and

Option 2: declining the carry forward, where the LA would be seeking adjudication by the Secretary of State.

Discussion also included:-

Consideration of diverting more growth fund money for High Needs (based on projections this fund was anticipated to run out by mid 2018/19);

Any surplus created within the High Needs Block as a result of not agreeing the carry forward would only be considered at the end of 2017/18 as there was an inability to change budgets in-year.  The opportunity to move money between schools and the High Needs block may be time limited.  The New Funding Formula (NFF) proposals indicated that there may be some local flexibility to move money between blocks but in order for this to happen there would need to be an “all school” majority vote before this could be achieved;

Given a number of factors affecting the demand on the High Needs budget were beyond the LA’s control and therefore unable to be fully planned for, the assurance requested by members of not being in the same deficit position next year could not be absolutely given.  However increased monitoring within High Needs during the 2017/18 financial year, the management action plans to reduce spending and the intention that the reduction of £33 AWPU would not be repeated, were all acknowledged.  Both the management action plans and the increased funding that had been made available from the Schools Block for 2017/18, would allow the High Needs Block to be in a balanced budget position by the end of 2 years (including the Carry Forward from 2016/17). Any further impact on schools would be minimised as much as possible;  

Discussions with the DfE regarding High Needs consultation and the new proposed National Funding Formula;

Early Years PVI had greater restrictions on income than independent special schools;

A task & finish group (made up of Forum members and County Council Officers) had recently been set up to jointly to look at all areas of High Needs spending, with significant action being taken.

The meeting adjourned whilst members considered their positions regarding the Carry Forward from 2016/17.

Members remained worried that Devon would be in a similar position during the next financial year in terms of overspending within the High Needs Block.

DECISION:

(a) that the month 10 DSG monitoring position  (2016/17) as set out in section 1 of report DEF/17/06 be noted;   

(b) that Option 2 declining the carry forward, as set out in section 2 of the report be approved;

(vote: all phases maintained and academy, PVI)

(c) that the guidance and funding of the Education Services Grant as set out in section 3 of the report be noted.

ACTION: 

County Treasurer (Julian Dinnicombe)