Schools Finance Group: Notes of meeting on Wednesday 13 September 2023

Contents

Attendance

DCC

Rachel Shaw (Chair) – Head of Education (Delivery), Heidi Watson-Jones – Safety Valve Project Officer

Devon Schools Leadership Services

Primary

Jamie Stone – Denbury Primary, Paul Walker – First Federation Trust, Penny Hammett – FORT Federation, Christopher Tribble – Honiton Primary

Secondary

Sammy Crook -Tiverton Federation, Alan Blackburn – Uffculme School, Fay Bowler – Braunton Academy

Special Schools

Keith Bennett – Marland School, Sarah Pickering – Mill Water School

Alternative Provision

Rob Gasson – Wave Multi Academy Trust

DAG

Alex Walmsley – Secondary, Adrian Hines – Primary

Early Years Providers

Gemma Rolstone – Puffins Childcare

Other DCC Officers

Karlien Bond – Senior Accountant (Schools), Katrina Harverson – Principal Accountant (Education and Learning), Kellie Knott – SEND Improvement Director, John Rowe (part) – Business Analyst Future Finance Team

Apologies

DCC

Mat Thorpe – (chair) Deputy Director of Finance and Public Value, Adrian Fox – Head Accountant (Education & Learning)

DAG

Faith Butler – Special School Governors

1. Minutes of previous meeting – 7 June 2023

SN – To provide update on growth fund allocations for schools experiencing bulge year of admissions prior to next SFG meeting – N.B. circulated post meeting
SN – to provide update for DEF on H4U prior to Christmas
Communication and engagement with schools remains important, however with a further change of leadership there has been a review of the whole system and clarity around the new approach will be communicated with stakeholders.
Noted that SFG had previously sought assurance that the budget set was more achievable and realistic. The group acknowledged that there would be movement from projected budgetary position depending on the impact of service delivery.
RS reported that it was felt that there was now more honesty around the budget set for the coming financial year, although school leaders expressed ongoing frustration that key messages and information were not being effectively communicated.
Heads were concerned about the temporary nature of strategic plans as leadership changes.
The absence of key DCC finance and service officers at the meeting was raised as a significant concern as it was felt this reduces effective discussion and information sharing.
The group agreed that an action log be established for the Schools Finance Group to enable clearer tracking of progress.
All other actions complete or in hand.
Minutes agreed as an accurate record.

Actions:

SN to provide update on growth fund allocations for schools experiencing bulge year of admissions prior to next SFG meeting – complete
SN to provide update for DEF on H4U prior to Christmas
HWJ to establish and share SFG action log.

2. DSG Monitoring – month 4

Month 4 year end projection is currently showing a DSG overspend of £37.7m.
DSG adjustment account (showing cumulative DSG deficit) is projected to rise to £162m by year end.
£9.6m management action savings have been identified at risk of not being delivered, which the group discussed. Devon has been invited to submit a draft plan for inclusion in Tranche 4 of the DfE Safety Valve programme, this submission will align with the refreshed SEND Transformation Programme.
There was discussion around the role and ability of LA services to affect improvement and bring budgets into line. The appointment of substantive leadership roles across Children’s services is expected to improve effectiveness. Colleagues reiterated the need for clear communication between LA services and finance to improve accuracy of reporting.
Regular updates for school leaders are crucial to enable better understanding of the situation and encourage increased support from schools to jointly deliver strategic improvement.
Noted the pressures emerging around increasing Alternative Provision costs. Improved commissioning and procurement practice in this area is being developed currently.
The group noted that this area has been demand-led and is under significant pressure – co-production of solutions with schools and providers will be key moving forwards. SFG requested an update at the next meeting outlining the reasons for the increase and strategies to address this.
SFG felt that the High Needs Sub Group had provided an opportunity for focused joint scrutiny to consider the impact in schools.
Noted the negative impact of the Growth fund subsequent to the DEF decision to transfer 2023/24 funds to support projects to help address the high needs block deficit.
Discussed the ceasing of backdated funding to schools where EHCP issue is delayed. SFG shared concerns around the impact of this decision at school level and the possibility of additional pressure being placed on Early Years settings to request an EHCP prior to a child starting at reception.
It was noted that SEND Improvement Board does not currently have Early Years representation. KK to consider this.
Noted positive movement around the reduction in specialist independent provision costs.
Discussed the revision of management actions as part of the Safety Valve which will have an impact on budget projections.

Actions:

KK to share DCS letter around delayed EHCP funding with DSLS Exec.
KK to consider Early Years representation at SEND Improvement Board.
Next meeting to consider the reasons behind significant increases in AP costs, and strategies to address. Simon Niles & Matthew Gould

3. Future Finance Project

John Rowe shared information about transition to a new corporate finance system by summer 2024.
Implementation of the new system into mainstream schools was considered. Maintained school representatives were asked to participate in workstreams working on the implementation planning.
SFG requested that schools involved in the workstreams are identified to cover a range of size and characteristics.

Action:

JR to forward details of request to DSLS (complete)

4. Safety Valve Update

Kellie Knott reported that SEND Improvement Programme has been reviewed; this previously focused on the Ofsted improvement plan but will now be widened to encompass Safety Valve and need for wider system-wide improvement. This will move forward as a refreshed SEND Transformation Programme.
Safety Valve business cases have been reviewed for inclusion in a new Safety Valve proposal for the DfE for submission in December 2023, in consultation with DfE advisors.
SEND Transformation Board will include stakeholders and project leads to monitor, track and challenge progress.
New Cabinet member for SEND (Cllr Lois Samuel) has been appointed.
SFG members queried how relevant information will be shared and reported to SFG and DEF, particularly around schools funding and the high needs block. Clarity around roles was requested, and KK indicated this will be explored at SEND Board.
Programme and Project management team has been established to support the transformation programme.
Schools and other stakeholders will have a role in ensuring management actions are achieved.
SFG considered how project leads and senior leadership will be held accountable in delivering a consistent plan over the next 3-5 years.
SFG requested that the structure and vision for SEND Transformation is urgently communicated to schools. Moving forwards, evidence of impact of actions and progress needs to be shared more regularly with schools.
Heads considered the impact of increased number of parental requests for EHC assessments and how the LA can work more closely with stakeholders and partners in other organisations to better meet needs of children with SEND.

Actions:

KK to plan communications to schools around direction of travel around SEND Transformation.
KK to discuss strategy with Stuart Collins around notification to schools of change of policy re. backdated funding for delayed EHCPs

5. AWPU recovery

DEF had previously agreed transfer of 100% AWPU where a pupil has been removed from school roll to be educated out of school through an EOTAS arrangement and medical Alternative Provision.
The LA has recognised that schools need to retain a responsibility for dual-registered pupils for safeguarding and exam arrangements, and as such will require an element of funding to secure this.
Recommendation remains that 100% AWPU is recovered where the child is removed from the school roll, but that 80% of AWPU is recovered where a dual-registration arrangement remains in place.
In addition, it is proposed that a proportion of AWPU is recovered where a child leaves the school roll to be electively home educated. A nominal amount of £500 per child would enable investment into the EHE team to provide essential home and education checks.
Noted that analysis is currently being undertaken on the reasons for moving to EHE and the levels of return to the school environment.
The LA has identified a significant increase in children electively home educated. The LA has statutory duties to ensure that children have a safe and appropriate education provision.
SFG suggested that a different approach is required to fund a sufficient and effective EHE team to ensure that provision is appropriate. SFG requested that the legality of considering a collective school-funded proposal be explored.
ACTION: RS / SN / Finance EHE service funding be reviewed as above, along with practice in other LAs, to identify an appropriate way forward to fund capacity in the Local Authority EHE team that does not penalise schools through removal of AWPU and per pupil funding.
ACTION: legal team and finance team to provide assurance that this approach is legally compliant.
SFG requested that other LAs are consulted to gain information about how their EHE services are funded.
Correspondence with Chumleigh Community College was shared with SFG members and considered. It was confirmed that clarity had been sought around the legality of AWPU recovery practice, particularly for academy schools.
ACTION: AF – SFG requested that assurance on the legal position around AWPU recovery is provided prior to DEF

Agreed:

SFG recommended to DEF that 100% AWPU and per-pupil funding is recovered where a child is removed from a mainstream school roll to be educated through an EOTAS arrangement.
SFG recommended that 80% of AWPU and per-pupil funding is recovered where a dual-registration arrangement remains in place (e.g. for S19 medical AP provision)
SFG recommended to DEF that the LA undertakes a review of possible funding options to help build capacity in the EHE team.

Actions:

RS / SN / Finance review EHE service funding of the current EHE service, along with practice in other LAs, and the legal remit for schools to collectively fund additional capacity in the team.
Legal team and finance team (AF) to provide assurance that the practice of AWPU recover is legally compliant, prior to next DEF meeting.

6. Mutual Fund Board

Noted current projected overspend of £33k
If overspend continues the mutual fund will not fully reimburse the second 50%of claims in order to bring the fund back into balance.
Noted the impact of recent pay awards for teachers. Clarity to be sought on how the reimbursement rate is calculated – as a fixed amount or a sum linked to actual pay.

Action:

KB to check whether the reimbursement rates are in line with recently agreed teachers pay awards.

7. Items for DEF

SEND service update ACTION: KK
AWPU recovery – legal advice and options to explore around funding additional capacity in EHE team.
Growth Fund update – to be provided prior to DEF with update at next SFG meeting. – ACTION: SN

8. AOB

Early Years additional inclusion funding to be submitted during half term prior to term the child is eligible for funding. Queried whether inclusion funding will be allocated to LAs from Central Government, and if not to ensure that this is factored into financial forecasting.
Concerns that settings will be disadvantaged from April 2024.
ACTION: KH and Sam Chapman to consider (see post-meeting note below)
Post meeting note:
Currently we ask that settings submit a request when they have identified a need, have followed a graduated response to meeting this need and can evidence how the additional funding will be used to support the child’s inclusion and access to learning and development. This usually takes place during their first term in the setting, the application is submitted by half term and the funding would be paid from the beginning of their second term.
Where children are supported by EYCN (Early Years Complex Needs team) and it is clear that additional funding will be required prior to entry to setting, this can be applied for before the child starts in the setting and reviewed during the first term to provide the evidence for how the funding is going to support the child’s inclusion.
Where a child is attending a setting prior to reaching the age of eligibility, the setting has engaged with the EYC and or other inclusion teams and the setting can demonstrate how they are currently supporting and the need for additional funding this can be submitted the term prior to the child meeting the education funding eligibility age i.e. the application can be submitted the term they turn 2 or 3 if the setting already has sufficient evidence of the child’s needs and how the funding will support inclusion.
The eligibility is based on entitlements to funding so all 2/3/4 year olds who are entitled to education funding are also eligible for Individual Inclusion funding. This has always been the case; this is allocated based on the numbers of hours attending so if the child is eligible for 30 hours this is funded in full. However, the process is that this is allocated once the child has started at the setting and a graduated response has been followed to identify and review needs and clarify how the funding will support inclusion. This ensures the right level of funding is allocated and that there is a clear understanding of what the funding will be needed for.
We have committed to including the new entitlements in this process which means that all children accessing the new entitlements will be included in the allocation of individual inclusion funding as required. We will review the impact of this on our budgets to ensure we can allocate sufficient funding from the budget to support requests for additional 2 year olds and subsequently the under 2’s.
Queried whether EY inclusion funding will be allocated to LAs from Central Government, and if not to ensure that this is factored into financial forecasting.
It has always been DCC’s intention to match the offer for all children who are eligible for education funding access to the inclusion funding where needed. This has been communicated with settings through various forums but a more formal confirmation will be provided.
As things stand, the LA will not be receiving any additional resource in relation to supporting children with SEND and this will need to budgeted for from within the funding allocated for early years entitlements based on the current approach. Forecasts will be adjusted to reflect revised budgets.

Future meeting dates:

Monday 6 November 2023 (14.00 – 17.30) – Teams
Friday 12 January 2024 (09.15 –-12.30 – Teams)
Wednesday 6 March 2024 (09.15 – 12.30 – Teams)
Wednesday 5 June 2024 (09.15 – 12.30 – Teams)
Monday 8 July 2024 (14.00 – 17.00 – face to face at County Hall)
Monday 9 September 2024 (09.00 – 16.00 – face to face at County Hall)
Wednesday 6 November 2024 (09.15 – 12.30 – Teams)
Friday 10 January 2025 (09.15 – 12.30 – Teams)
Wednesday 5 March 2025 (09.15 – 12.30 – Teams)