Schools Finance Group: Notes of meeting on 9 September 2024

Item 3 – High Needs Update

• Second Safety Valve monitoring report submitted to DfE and second funding instalment to be released

Item 4 – Financial Management of Dedicated Schools Grant and Top Up arrangements

• Work is underway to review and improve financial processes and systems to improve efficiency and accuracy of processing and tracking high needs funding spend.
• DEF are asked to re-endorse the principle that Top Up funding for students with EHCPs needs to follow students who are either permanently excluded or on Alternative Education Packages through Section 19.  Affected schools will be approached to retrieve overpayments made in error.

Item 5 – Core School Budget Grant

Schools to receive a budget grant to cover the cost of the 2024 teachers’ pay award.

Item 7 – Schools Funding Consultation

• The annual autumn schools funding consultation process will need to be delayed in the absence of any DfE announcement on the indicative funding allocation for 2025/26.

Attendance

DCC

• Matthew Thorpe – Deputy Director of Finance and Public Value
• Adrian Fox – Head Accountant (Education & Learning)
• Ceri Morgan (part) – Deputy Director, Education
• Kellie Knott (part) – Interim SEND Improvement Director
• Heidi Watson-Jones – Safety Valve Project Officer

Devon Schools Leadership Services

Primary

• Jamie Stone – Denbury Primary, Penny Hammett – FORT Federation
• Paul Walker – First Federation Trust

Secondary

Sammy Crook – Tiverton Federation

Special Schools

Sarah Pickering – Mill Water School, Hannah Smart – ACE Tiverton

Alternative Provision

Rob Gasson – Wave Multi Academy Trust

DAG

Adrian Hines – Primary Governors, Alex Walmsley – Secondary Governors,

Other DCC Officers

• Karlien Bond – Senior Accountant (Schools)
• Damien Jones (part) – Deputy Director of Transport & Waste and SRO Safety Valve (Financial Management)

Apologies

DAG

Faith Butler– Special School Governors,

Early Years Providers

Gemma Rolstone – Puffins Childcare

1. Minutes of previous meeting – 8 July 2024

• SFG noted that the 2025/26 indicative schools funding allocation has not yet been received from DfE therefore it is too early to consider funding transfer proposals.  Ceri Morgan is intending to work on a proposal with school input
• All other actions completed.  Minutes agreed as an accurate record.

2. DSG Monitoring – Month 4

• SFG noted in-year increase in overall accumulated DSG deficit.
• Further scrutiny and control measures have been put in place
• Second Safety Valve monitoring report has been submitted and shared with SFG.  DfE have confirmed they will be releasing the next instalment by the end of September.
• Further scrutiny and control around AP placements seeking to bring the budget back in line with projection.
• Noted interim commissioning arrangements now in place to oversee AP provision being purchased by LA services.  New commissioning and contracting arrangements are being agreed with a number of independent specialist providers for the coming academic year.
• EHCP numbers remain above the number budgeted for the year.  Early Help strategies are expected to bring this back in line with budgeted position.
• Noted change in planned placement numbers at The Promise and ACE Tiverton schools.
• Changed arrangements are now in place to secure funding from Health following Tribunal rulings.
• Working with colleagues across DCC to support the SEND Statutory Team to put new systems and processes in place which will lead to the budget position being brought back into line.
• DfE have been informed of an error identified in the original Safety Valve submission; the LA awaits conversation with the DfE on how this will be managed.
• SFG shared concerns around the increasing overspend trajectory for the current financial year.  It was noted that the end of academic year shifts in numbers leaving and coming in have not been at expected levels.

3. SEND and High Needs Update

• KK reported that all AP packages have been reviewed over the summer to provide assurance that the education packages are appropriate.
• Wave working closely with the LA to ensure that the outcomes for young people are appropriate.  Noted that the DCC contract with Wave will be reviewed shortly.
• DfE have stipulated targets for reducing backlogs for the SEND Statutory Team which is being achieved, however, increasing costs and demand for EHC needs assessments and independent placements continue.
• KK outlined the range of measures in place to improve universal offers,   ensure appropriate joint funding from Health and Social Care, and a review of EHCP funding bands.
• All financial decisions related to High Needs Block spend have been suspended and will be overseen by a daily senior manager panel to review all requests.  Corporate colleagues are in place to review emerging themes as data and financial information becomes apparent.
• There were concerns that the LA expectations around the number of learners in costly independent placements continues to be unrealised.  It was felt that frank and robust conversations are required to manage expectations.
• DfE has allocated a SEND advisor for Safety Valve and SEND Improvement who provides challenge around achievement of targets for both Safety Valve and Ofsted improvement.  DfE Finance lead is also involved in discussions with the LA.
• Noted concerns raised within the SV monitoring report with regards to DfE decision making, and considered whether these can be addressed.  The LA meets frequently with Regions Group to discuss issues including approval of Resource Base developments.  New government may impact on RG roles and functions going forward.
• The groups considered the ongoing impact of fundamental issues around curriculum, and resourcing for CYP with SEND.
• SFG felt that Ordinarily Available Inclusive Provision (OAIP) developments seem positive.  Building further on these foundations will be work to set out expectations around targeted approaches and complex intervention and funding.
• QA approach to education and SEND provision is being reviewed – OAIP delivery in schools will be included in this.  Redesign of education services to support schools, quality and performance will also be expected to contribute to improvement in this area, supporting inclusive provision in all schools.
• SFG felt that it would be helpful to clearly explain the expected continuum of inclusion in schools as normal practice, but that there should also be clarity around implications of not consistently working in an inclusive way.
• Considered the measurable impact of newly introduced systems on both the financial position of DCC and the experience and outcomes for CYP with SEND.  The group was reminded of the corporate financial situation, and the transformation strategies to improve SEND systems and provision which it is expected will lead to improved financial sustainability.

4. Financial Management of the Dedicated Schools Grant and Top Up arrangements

• Damien Jones reported that a recent audit has identified issues and errors arising around tracking SEN placements and financial decision making.
• Errors have been identified where schools continue to be funded for children who are being educated in other settings (e.g. following PEX or placed in AP).  Where overpayments have been identified, settings will be approached with a view to retrieving over-payments made in error.
• Contract negotiation and management with independent providers will be revised to improve efficiency and financial viability at a central commissioning level, and taken out of the work of the education service teams.
• SFG were keen to explore what practical measures will be put in place to retrieve overpayments, bearing in mind that schools are under pressure financially.  DJ confirmed that errors will be addressed from the current financial year, and that affected schools are already being approached.  Changed practice is also now in place more clearly identifying children who are changing placement.
• SFG considered if new processes could negatively impact on school decisions to permanently exclude.
• Noted that there are ongoing uncertainties around the impact on schools of Unit 4 finance system roll-out.  An interface system will be in place to translate financial information exchange with schools.  Schools have been well-represented in the transition to the new finance system. 
• Agreed that John Rowe be invited to a future SFG meeting for an update.

Action:

• HWJ to invite John Rowe
  to provide Unit 4 update to next SFG (complete).

5. Core School Budget Grant

• Summer DfE announcement of £1.1bn additional funding nationally linked to the 2024 teacher pay award.  LAs awaiting details of the funding allocations.
• Noted calculation is to be based on Numbers on Roll and is hoped to fully cover the 5.5% pay award increase. 
• Initial payments will be paid in November (LA) and December (Academies) and will cover September 24 to March 25.  Separate arrangements will be in place for Early Years and Post 16. 
• This grant will be rolled into the national funding formula from 2025/26.
• School finance consultants will be available to provide support to maintained schools.
• The mainstream schools funding method does not apply to Independent schools. Non-maintained special school will be funded separately directly from the ESFA at the standard rate per place.

6. Any Other Business

• Teachers Pensions – Discussed an issue with Teachers Pension funding not being pulled across to some schools budgets in their recording systems.  Finance consultants identifying affected schools.  Schools will then be approached to agreed any action required. 
• ACTION: KB to provide update to schools via Finance Blog and at next SFG.

Future meeting dates

• 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)
• Wednesday 4 June 2025 (09.15 – 12.30 (Teams)
• Wednesday 9 July 2025 (09.15 – 12.30 (Teams)
• Wednesday 10 September 2025 (all day – face to face at County Hall)
• Wednesday 5 November 2025 (09.15 – 12.30 – face to face at County Hall)
• Friday 9 January 2026 (09.15 – 12.30 – Teams)
• Wednesday 4 March 2026 (09.15 – 12.30 – Teams)