The report of the Directorate Finance Lead – Education and Schools is enclosed.

The Forum considered a report of the Directorate Finance Lead – Education and Schools which sought comment and approval of Maintained School Forum members for the revision of the Scheme for Financing Schools. The Scheme sets out the principles underlying the funding of schools, and the basis for the financial relationship between maintained schools in Manchester and the Council.

The proposed two revisions are local changes to ensure the Scheme for Financing Schools reflects current practices and ways of working. The changes include an update to the excessive balance control mechanism (following the review reported to School Forum on 14 November 2022) and the provision of quarterly financial information. A Schools’ consultation opened on 5 December 2022, with the deadline for responses 16 December 2022. In total, 21 schools responded which was a response rate of around 19%.

The first question of the consultation looked at Schools quarterly budget monitoring reports to include the updated three-year budget forecast with underlying assumptions on which financial plans are based (Scheme reference: 2.1.1). In total, 20 schools were in favour, with one opposed. Those in favour noted the pertinence in the current climate to ensure that assumptions are updated, reflected on budgets and reported on. One response requested that the budget assumption form was made more user friendly, something the Council are currently reviewing. The school opposed to this had concerns over the time taken with no real tangible outcome. They felt that nothing is gained from making assumptions for three years in the future as they had been struggling to make assumptions three months into the future.

The second part of the consultations related to allowing the Council to clawback balances above the allowable threshold that had been held for more than 2 years, subject to the appeals process (Scheme reference: 4.2). It was proposed that the change will apply to balances as of 31 March 2024, with the clawback percentage rate remaining at that agreed by Schools Forum. From the 21 responses, 15 were in favour and 6 were opposed. Comments from those in favour and opposed were provided to Schools Forum. Of those opposed, 5 were concerned about how this would affect capital projects. Those schools were provided with information detailing the Council’s process on holding maintained school funds in a ring-fenced reserve for capital projects and this information was to be shared via a school circular.

Maintained School Forum members were asked to comment and decide if they

approve the revisions to the scheme:

Q1. School’s quarterly budget monitoring reports to include the updated three-year

budget forecast with underlying assumptions on which financial plans are

based on (Scheme Ref: 2.1.1).

Q2. The Council to clawback balances above the allowable threshold that have

been held for more than 2 years. Subject to appeals process. (Scheme Ref:

4.2). Proposed that this change applies to balances as of the 31 March 2024.

There was no forthcoming comments and the Chair proceeded to the vote of maintained school representatives on the proposals. 6 representatives were present and all 6 agreed to the proposals.

Decision

To approve the following:

·         School’s quarterly budget monitoring reports to include the updated three-year budget forecast with underlying assumptions on which financial plans are based on (Scheme Ref: 2.1.1).

·         The Council to clawback balances above the allowable threshold that have been held for more than 2 years, subject to the appeals process. (Scheme Ref: 4.2). This change applies to balances as of the 31 March 2024.