The report of the Directorate Finance Lead – Children’s and Schools is enclosed.

The Forum considered a report of the Directorate Finance Lead – Children and Schools which presented the outturn position on school balances as at 31 March 2021 and the final outturn position on the Dedicated Schools Grant (DSG) including the centrally retained DSG.

It was explained that Local Authorities no longer require Schools Fora to approve the carry forward to 2021/22 of any DSG deficit balances following the outcome of the DSG consultation in January 2020. The Forum was therefore invited to note and comment on the maintained school balances and the DSG cumulative deficit balance to be carried forward into 2021/22 which was reported as £2.26m.

The 2020/21 DSG allocation after recoupment for academies and high needs was reported as £320.64m, £300.12m of which had been delegated to schools, £18.69m had been retained centrally by the Council and £1.83m earmarked towards the DSG recovery plan. There had been additional high needs funding in 2021/22 of £11.46m, £9.96m of which had been allocated to meet demands in growth, and £1.50m planned for use towards mitigating the DSG deficit. The projected DSG cumulative deficit 2021/22 as at period 2 was £2.06m. Recovery was still expected by 2022/23.

The provisional outturn position for maintained schools was reported as an overall surplus of £20.62m. This was an increase of £5.80m in the total balances held compared to 2019/20, 49% of which was for schools within the primary sector; 35% being from the special schools sector. Primary sector balances had increased by £2.81m, £2.36m of which was attributed to 15 schools where balances had increased by more than £100k. The report stated that the majority of the £2.05m increase in the special schools sector was attributable to 6 special schools.

Forum members were provided with an overview of maintained schools’ total balances broken down by surplus and deficit balances. There had been no significant change in the actual number of schools in surplus and deficit, although there had been a small movement across the sectors. Schools’ deficit balances had reduced by £1m since last financial year, due to movement within the special and secondary sector.  Individual school revenue and capital balances were also provided.

The 2020/21 outturn position for the overall retained schools DSG budget was reported as an underspend of £0.82m, the cumulative DSG position is an overspend of £2.26m. The Forum was invited to note that the reduction in the cumulative DSG deficit which had previously been projected as £4.24m. The main reason for the reduction was cited lower than expected jointly funded placements with Health and Social Care and the resolution of an Early Years funding issue as a result of a temporary change to the funding methodology for 2020/21 due to the impact of the pandemic on attendance and school censuses.

A member asked about support from the Local Authority for those school in the list marked as in deficit. The Directorate Finance Lead - Children and Schools advised that following the City Treasurer’s approval for the DSG Recovery Plan, no financial assistance could be offered however, advice and support for schools (including HR support) would be available.

Decisions

1. To note maintained school balances as at 2020/21

2. To note the Dedicated Schools Grant cumulative deficit balance of £2.26m to be carried forward in 2021/22

3. To note that Local Authorities no longer require Schools Forum to approve Dedicated Schools Grant deficit balances being carried forward to 2021/22, following the outcome of the DSG consultation in January 2020.