Agenda item

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

Olufunke Adediran, Head of Finance at Brent Council, introduced the report providing an update on the forecast financial position in relation to the Dedicated School Grant for 2021/22

In presenting the report the key points highlighted included:

·            The DSG forecast projected an in year deficit of £5.4m, this was mainly due to the High Needs Block (which would be discussed in more detail under Agenda Item 8.) The cumulative deficit was expected to be £15.9m by the end of the financial year 2021/2022.

·            The High Needs Block (HNB) income had been revised from £59.4m reported in November 2021 to £58.8m following various import/export adjustments by the Department for Education (DfE).  This figure was in line with the original budget set in January 2021 and excluded the academy recoupment by the DfE of £7.6m.

·            There had been an adjustment to the Early Years Block income forecast as a result of provisional claw back funding of £0.694m. The claw back was as a result of the funding allocation having been impacted by comparatively low attendance numbers as a result of the pandemic in the Spring and Summer terms 2021 although attendance numbers had started to increase from October 2021.

·            The 2021/22 DSG funding allocation would see a further final adjustment, which would be published in July 2022, as Spring 2022 census numbers would replace the previously used Spring 2021 census for the final 3/12ths of the calculation.  The 2022 census had shown an increase in take-up of the 2 year old entitlement and small increase in 3 & 4 year old entitlements with a reconciliation to be completed as part of the budget monitoring process to finalise the likely impact of the increased numbers and the reduction in funding.

·            In terms of High Needs Block expenditure, the budget had been forecast to exceed income by £5.3m mainly due to the increase in EHCPs. As of January 2022, there were 2,895 EHCPs for Brent pupils in all settings, compared to 2,784 in January 2021, representing a 4% increase over the 12-month period.  Members noted the High Needs Block was subject to an ongoing management plan designed to recover the deficit and manage ongoing pressure on which progress was being presented to the Forum on a termly basis.

·            In terms of the Early Years Block Expenditure, prior year adjustments related to the 2020/21 allocation had resulted in a decrease in funding of £0.5m, following confirmation of the January 2021 Early Years census, as amounts paid to providers had exceeded the income allocation against both the 2-year-old and the 3&4-year-old provisions.  Members noted the risk highlighted that the pressure against this Block could increase as a result of the further adjustments made as a result of the DfE claw back.

·            The forecast underspend of £0.2m from the Central Block expenditure related to in year vacancies in the Admissions and the School Effectiveness Services and a reduction in contributions towards historic commitments for pensions strain costs, which would be used to mitigate adjustments needing to be made elsewhere within the DSG.

The Chair thanked officers for their report and asked if Forum members had any questions. In considering the update provided the Forum shared concern with regard to how the claw back funding may affect the already struggling Early Years sector.

In response the Forum noted that no net detriment was anticipated in terms of funding allocation to the overall Early Years DSG block as a result of the clawback, given the main allocation was be based on advance estimated numbers of pupils.

As no further issues were raised the Forum RESOLVED to note the contents of the report.