Management Information Sheet

Following the release of MI Sheet 22/23 summarising the outcomes from part 1 of the fair funding consultation, there were three areas included in part 2: Scheme for Financing Schools that required consultation with all LA maintained schools and required approval from Schools Forum.

The proposals and approved outcomes are listed below:

• Removal of the additional exception process from the analysis of balances mechanism with immediate effect.
• Removal of the contingency limits, currently set at the greater of £20k or 8% of the final budget share (subject to all items that fall under this category being fully justified).
• Include the paragraph stating that "As there will be no general contingency limit, a level of redistribution will be introduced if the school cannot provide sufficient evidence to justify its surplus. The Local authority will reserve the right where schools have consistently built up significant excessive uncommitted balances to redistribute if deemed appropriate.

The above outcomes will be implemented as part of 2022-23 financial year end.

Those schools that have previously submitted an additional exception or would have submitted an additional exception will now justify their funds as part of the general contingency via the analysis of balances process.

By implementing these changes will allow:

• A greater understanding for schools to identify their balances and provide strategic information to school governors. This would enable further scrutiny to ensure balances are being utilised in the appropriate area of the school budget at local school level.
• Streamlining of the process and a reduction to the burden on schools and LA officers by removing the requirement to submit an additional exception request; this is now completed as part of the justification process for general contingency.
• The Education Finance team (LA officers) to review the justification and ensure any sums are included in schools future year budget planning.

In line with section 1.3 of the statutory guidance, the LA will remove the reference to the Salix Scheme, as this scheme has now closed nationally.

The Local authority also consulted on proposed changes to the limits of funds that can be lodged into the school maintenance holding account. These proposals were also approved and are detailed below.

• For mainstream schools that do not contract into BMPP the total amount lodged can be up to a maximum of £650 per pupil on roll at the time of the previous October Census, or £360,000, whichever is the lower.
• For special schools that do not contract into BMPP the total amount lodged can be up to a maximum of £815 per place at the time of the previous October Census.

In addition to the limits above, schools with community assets that are required to have a sinking fund for regular repair and maintenance of those assets e.g. swimming pools, Multi-Use Games Areas (MUGAs) etc, may also lodge funds in the schools maintenance holding account.