Issue - meetings

Purpose of report

To inform The Cabinet Member of the projected revenue expenditure of the Dedicated Schools Grant (DSG) for the current financial year 2021-22 as at the end of June 2021, along with proposed budget revisions.

RECOMMENDED that the cabinet member:

(1)  Notes the forecast year end budget position for the Dedicated Schools Grant as at 30 June 2021, together with the associated explanations contained within this report.

(2)  Delegates to the Section 151 Officer or their delegated representative, the responsibility to adjust the Early Years block budget in line with the DSG allocation adjustments in November 2021 and January 2022.

(3)  Approves the revisions to the 2021-22 budget as set out in Appendix 1 and section 8.

Angela Mann, Finance Officer introduced the report. 

In response to questions officers clarified the following:

Councillor Horton asked about the Early Years final numbers and said whilst it is known that there is a delay in the guidance from the DfE in relation to the EY Block Funding, whether officers have any idea of reduced numbers locally and could this result in a viability issue? Angela advised this would be for Mike Stoneman to answer and Councillor Horton said she would follow this up with him after the meeting and the response circulated to opposition members.

It was noted that the CFE portfolio budget monitoring report was not able to make this meeting and that usually this is considered alongside this report to give a clear overview of budgets.  Angela explained that a new corporate financial system had recently been implemented which meant that getting the data in time was quite tight and the portfolio budget report could not make this meeting.   This report will come to the next meeting in December. Councillor Horton reminded members that it was important to keep the DSG and portfolio budgets separate.  The DSG has clear rules on what any underspend money can be spent on, and this could not be transferred into the portfolio budget.

The DSG is in four blocks and there are regulations that the Council must comply with.  The budget is ringfenced from the rest of the Council's funding so it cannot be used for other normal LA expenditure.  If there is an underspend this year on the high needs block, this would roll forward to next year and would be spent on the purposes that the grant is intended for. In terms of early years, if there was an underspend this would be due to activity and the DSG would be reclaimed by the Department for Education.   

In terms of the Schools Block, this is distributed under the National Fair Formula Funding values and is dependent on the character of pupils at the defined period of times that it is set.  The Council receives an overall amount and when the information is received on the schools this money is distributed to the schools based on the pupil characteristics.

The Early Years Complex Needs Inclusion fund is for pupils identified as having additional needs to provide extra support to enable them to get ready for school. This is funded by the high needs block and does not affect the hourly rates paid via the Early Years block. 

Opposition members said it was about keeping up the desire to have as little underspend as possible the need to be transparent as possible to residents as to why there is an underspend.  Councillor Horton said that officers work closely with Schools Forum and she considers their views before making her decision.  The Council runs a needs led service so that would not be curtailed because of this funding. 

DECISIONS: the cabinet member:

(1) Noted the forecast year end budget position for the  ...  view the full minutes text for item 28