Agenda item

a)      Dedicated Schools Grant Outturn

- The DSG account

- Maintained school balances

- Schools with excess balances

- Schools with deficit balances

b)      School contingency

c)      High need (standing item) – Verbal Update

d)      School reorganisation

Dedicated Scools Grant Outrun

5.1The DSG Account (Projected DSG reserve account deficit at 31.03.21)

David Baxter (DB) reported on the projected DSG reserve account deficit at 31.03.21

5.2

5.3 Members noted that the Net DSG reserve account deficit stood at £25.1 million and that the High Needs block contributed £23.4 million towards this total. This figure was the highest in the Yorkshire and Humberside region and was therefore a high priority to address. The Council was working with the ESFA on this.

5.4 The Chair stated that this was a national issue, not just a Kirklees one. The government was aware of the situation, which had been caused by underfunding over several years.

5.5 Jo-Anne Sanders (JAS) reiterated the Chair’s comments. She stated that this was a cumulative position created over several years. Historically the Council had not gained financially when changes in incremental funding had occurred, meaning that more and more pressures had been put on its finances. The Council was working hard to address this by utilising funding from other budget headings to support high needs funding. However, this did not detract from what was a very serious budgetary situation and the outcomes of the work with the ESFA would be reported to the Schools Forum at a later date.  

5.6 Maintained School Balances

DB reported on current maintained school balances and Members noted the following carry forward figures:

5.7 Schools with Excess Balances

DB reported on current maintained school balances and Members noted the following numbers of schools with excess balances (i.e. more than 8% c/f):

The Council was working with schools which had excess balances in order to establish why this was (e.g., a future capital project). This would then be reported to the Schools Forum.

5.8 Schools with Deficit Balances

DB reported on current maintained school balances and Members noted the following numbers of schools with deficit balances:

5.9 JAS informed the meeting that the LA worked in partnership with schools in deficit. Decisions made to get the school back on track were not rushed or made because of a ‘panic’ situation. Consideration was given to identifying where the budget issues were within the school and what could be done to address them. As DB had explained, a forward plan would then be put together and agreed, along with timescales for getting the school out of its deficit position.

5.10 School Contingency

DB presented the financial outturn for 2020/201. Overall the budget was just over £2.0 million with actual expenditure totalling £1.4million leaving a net underspend on the account of £0.6million.

5.11

Q: What will happen to the net underspend of £0.6 million?

A: It will be carried forward into the 2021/22 contingency fund.

5.12 Expenditure included support in the following areas:

Pupil Growth                                                             £0.7million

Severance Costs (Schools in Financial Difficulty)                    £0.4million

Business Rates Adjustments                                 £0.2millon

5.13 School Reorganisation

DB presented the financial outturn for 2020/2021. Overall the budget was £0.29 million with actual totalling more than £0.64 million, resulting in a net overspend of £0.35 million.

Expenditure was split across the following areas:

Primary Sector                      £0.15m

Secondary                             £0.49m