Agenda item

Joshua Amahwe/Louise Keith to report.

Recommendation:- (1) To note the information contained within this report.

(2) To note that the centrally retained early years balance is subject to change dependent on the early years’ adjustment for the Spring 2024 census count.

Consideration was given to a report presented by Louise Keith, Principal Finance Officer (Schools Finance), which provided Schools’ Forum members with an update as to the draft 2023/24 outturn position of the delegated budget for maintained schools and centrally retained budgets, both of which were funded from the Dedicated Schools Grant (DSG).   The report also set out to Schools’ Forum maintained members a summary position on the surplus/deficit balances of the maintained schools within Rotherham.  

It was highlighted that in 2023/24 the final allocation of DSG funding for Rotherham was £108m.  The total Schools Block allocation was £230m. It was noted that a funding adjustment of £3.459 was made to the school block funding to reflect the DfE confirmed funding transfer of 1.5% to the Hight Needs Block. 

In 2021/22 Rotherham was approved to enter the DfE’s Safety Valve programme and received £2m of funding for 2023.  Rotherham would continue to receive safety valve funding at £2m for the next 2 years.   

As a result of the reprofiling of the safety valve funding, alongside an underspend on the High Needs Block and underspends on falling rolls and growth funding the DSG Central Reserve deficit had reduced to £5.9m at the end of 2022/23.  The draft position on the DSG at the end of 2024 was £1.7m. 

The latest DSG overall net deficit for the DSG reserve account was forecasted to be £535k in 2025/26 against a balanced position assumed in the Safety Valve Agreement.  Forum Members were advised that the deficit had increased due to increasing EHCP numbers, inflationary pressures, continued ISP placements and a reduction in funding transfers from schools.  

It was noted that a planned underspend of £2.068m in 2023/24 within the high needs block element had been achieved and transferred into the DSG central reserves 2023/24 draft accounts.

A brought forward balance of £500k in the Early Years block was utilised to fund the Inclusion Support Grant (ISG).  The Local Authority had yet to be notified of the final early years’ adjustment for 2023/24 however an increase of £38.4k was anticipated and had been included within the draft 2023/24 accounts.  

The carry forward of balances on individual school budgets was an overall combined surplus of £2.2m which compared to £2.9m in the previous financial year.  It was predicted that the reduction in the surplus balances when compared to the previous year had been driven by increased cost pressures in schools. 

Three schools were reporting a deficit position for 2023-24 compared with one school in the previous financial year.   Further details on what action would be taken to address those deficits were detailed in paragraph 5.7 of the report. 

Of the total 2023/24 surplus balances, seven schools held balances above the thresholds set out in the Scheme for Financing Schools and these were being reviewed.  School budgets were currently being complied ready for submission in mid-May. 

Agreed: (1) That Schools’ Forum Members noted the information contained within the report.

(2) That Schools’ Forum members noted that the centrally retained early years balance was subject to change as this would be dependent on the early years adjustment for the Spring 2024 census count.