Agenda item

This report provides Schools Forum with an update on the forecast financial position for 2021/22. The position is reported against the budget set in consultation with Schools Forum and submitted to the Department for Education on the Section 251 budget return.

6.            Dedicated Schools Grant (DSG) Budget Monitoring 2021/22

Olufunke Adediran, Head of Finance at Brent Council, introduced the report providing an update on the forecast financial position for 2021/2022. Key points included the following:

·                The update provided in relation to Dedicated Schools Grant (DSG) income, as set out in Section 4 of the report.  The Forum was advised whilst the mainstream Schools Block income was projected to be in line with the budget, this would exclude £129m recouped by the DfE for academies. The Forum also noted the variance against the High Needs Block following an anticipated additional import/export adjustment due to be made by the DfE totalling £0.576m and academy recoupment of £7.6m.

·                In terms of Expenditure Forecast:

Ø   The Schools Block was currently forecast to break even;

Ø   Expenditure on the High Needs Block (HNB) was currently forecast to exceed the budget by approximately £4m, with the overall pressure identified as £4.6m including the shortfall against income as a result of the import/export adjustment.  The Forum noted the key driver in terms of HNB expenditure being the increase in number of Education Health & Care Plan (EHCPs).  The total forecast expenditure on top up funding for 2021/22 represented a 7% increase on the previous year with a forecast overspend of £2.8m for pupils placed in mainstream schools and £1.4m against independent special schools.  In addition the High Needs SEN support services budget was currently being forecast to underspend by £0.6m mainly due to the relatively low number of pupils in Alternative Provision.  The Forum noted the update on the deficit management recovery plan detailed within section 7.7 and Appendix 2 of the report, which detailed progress on the mitigating actions agreed to manage demand and improve the sufficiency of places and financial management.  These mitigating items had resulted in a £2.162m cost avoidance and included 88 EHCP’s having ceased as of August 2021; a review of all additional packages in place including for those attending out of borough provision along with an increase of provision in the number of maintained and special school places for children with EHCPs in Brent to attend these settings in the borough as opposed to out of borough placements and non-maintained schools.  In addition the Forum was advised of progress on the pilot for SEN Support which had started in September 2021 with a £0.5m envelope which had been designed to increase early intervention activity on a schools based graduated approach in an attempt to reduce escalation of need to ECHP level. A more robust forecast of the impact and update on this would be provided at a future Forum.

·                The outline position in relation to the Early Years and Central Block, as detailed in sections 8 and 9 of the report which were currently forecast as broadly in line with Block grant income but would be subject to ongoing monitoring and updates to future Forum meetings.

The Forum were then invited to raise questions on the report, with the following issue(s) raised:

·                Members sought further details on the reference made within the update on the High Need Block Deficit Management Plan (section 7.81 of the report) to the 88 EHC plans in the borough which had ceased.  In response the Head of Finance confirmed that this would have involved a number of reasons including (in the majority of cases) recipients turning 25 years old and/or having successfully entered employment or higher education.

As no further issues were raised the Chair thanked officers for the update and it was RESOLVED to note the contents of the report.