2014/15 Budget Allocations and Formula Factors Guidance Notes

Transcription

1 2014/15 Budget Allocations and Formula Factors Guidance Notes

2 Table of Contents Introduction... 3 National Context & Local Context... 3 Data Set... 3 Deficit Budgets... 3 Early Years Single Funding Formula (EYSFF)... 4 Hourly rate... 4 Deprivation... 4 Administration Year Old Funding... 4 Schools Block Primary/Secondary Schools... 5 Basic Entitlement... 5 Deprivation... 5 Looked After Child (LAC)... 6 Low Cost High Incidence Special Educational Needs (LCHISEN)... 6 English as an Additional Language (EAL)... 6 Lump sums... 7 Slit Lump sums... 7 Rates... 7 PFI... 7 Mobility... 7 Minimum Funding Guarantee... 7 Notional SEN Budget... 8 De-delegations... 9 High Needs Block Funding... 9 Enhanced Resource Provision (ERP)... 9 Pupils with Statements Medical Hours Funding Pupil Premium Growth Funding Devolved Formula Capital

3 Introduction This document provides Governors, Headteachers and finance staff with a guide to the formula factors used to calculate those allocations. It is the schools responsibility to ensure that this document is made available to members of the governing body. Should you have any questions concerning the content of this document you should contact the Schools & Settings Finance Team School.Returns@Peterborough.gov.uk. National Context & Local Context Following the national funding reforms introduced in 2013/14 Peterborough and every other local authority across the country have been moving towards a national funding formula. This is being accomplished by restricting and simplifying the factors used in Peterborough s funding formula in line with government guidelines. As a result schools experienced significant changes in the way they were funded in 2013/14. Schools funding for 2014/15 has been far more stable with the number of changes being kept to minimum. A copy of the 2014/15 consultation documentation and results can be accessed from the following link: The funding that Peterborough receives for 2014/15 has been allocated at a flat-cash level per pupil. This means that the Dedicated Schools Grant (DSG) that Peterborough receives to fund schools remains at the same level, per pupil, as in 2013/14. The Schools Block DSG has been funded at 4, per pupil. Data Set Under the new funding arrangements allocations are made to schools using a data set provided by the DFE. In the main the data set consists of information taken from the October 2013 census, however for some elements of the data information is taken from other sources. The technical specification of the data set can be accessed from the following link: Deficit Budgets Schools planning to set a deficit budget in 2013/14 in excess of 50k must follow the licensed deficit procedures. You will need to contact the Head of Schools and Settings Finance to discuss. 3

4 Early Years Single Funding Formula (EYSFF) Allocations included in the published budgets are estimated based on historic termly census data. Allocations will be paid on actual hours taken in the school. The EYSFF consists of the following elements: An hourly rate based on the type of setting. A deprivation factor based on a top up to the hourly rate for the most deprived pupils in the city. An administration allocation of 5 per pupil per term. Hourly rate - An allocation will be paid for each qualifying 3 and 4 year old up to 15 hrs per week over a 38 week period. The hourly rate will vary depending on the type of setting. The list below details the hourly rate. Child Minder: 4.60 Day Nursery: 4.44 Nursery Class: 4.66 Nursery School: 8.75 Independent: 3.98 Pre School: 3.81 Deprivation A supplement to the hourly rate of 0.12p will be paid for those pupils who meet the deprivation criteria. The deprivation criteria are based on the following: Each child s post code is mapped to a super output area which generates an IDACI weighting and ranking. There are 32,482 rankings with 1 being the most deprived. The ranking from each child s post code is divided by 32,482 to determine a deprivation percentage. Any child with a deprivation percentage range of 0% - 30% will trigger an additional allocation for deprivation of 0.12p per hour. Administration An allocation of 5 per pupil per term will be paid to contribute towards each settings administration costs 2 Year Old Funding From September 2014 all two year olds which meet the eligibility criteria detailed below will be entitled to 570 hours of free nursery education over a year. Providers of early year s nursery education will be entitled to claim funding which will be paid at 5.05 an hour. Eligibility criteria: Meets the current FSM eligibility criteria. Guardians in receipt of Working Tax Credits and earning no more than 16,190 a year Children who have a current statement of special educational needs (SEN) or an education, health and care plan In receipt of a Disability Living Allowance Left care through special guardianship or an adoption or residence order 4

5 Schools Block Primary/Secondary Schools Basic Entitlement This is a mandatory factor. All local authorities are required to allocate a basic per-pupil entitlement. The DFE have stipulated that authorities should have three separate rates: primary school pupils, key stage 3 pupils and key stage 4 pupils. The October 2013 census data is used to calculate allocations. The rate are as follows: Factor 2014/15 Primary (Years R-6) 2, Key Stage 3 (Years 7-9) 3, Key Stage 4 (Years 10-11) 4, Deprivation This is a mandatory factor. Local authorities are required to target some of its DSG at deprived pupils. Deprivation funding in Peterborough is allocated in two ways. Free School Meals (FSM) The number of pupils eligible for a FSM from the October 2013 census x unit value. Factor 2014/15 FSM Primary FSM Secondary Income Deprivation Affecting Children Index (IDACI) The Income Deprivation Affecting Children Index (IDACI) is an index of deprivation used in the United Kingdom. The index is calculated by the Office of the Deputy Prime Minister and measures in a local area the proportion of children under the age of 16 that live in low income households. The local areas for which the index is calculated are super output areas. It is supplementary to the Indices of Multiple Deprivation. For the purposes of funding the IDACI score has been matched to pupil records where the pupil s postcode is known. IDACI scores have been placed into six funding bands as shown below. Only pupils with an IDACI score above 0.2 are assigned deprivation funding through this factor, meaning there are six bands which are given different unit values each for primary and six for secondary phase pupils. The number of pupils in each band are multiplied by the funding unit to arrive at the allocations. 5

6 Factor IDACI score lower limit IDACI score upper limit 2014/15 Funding Rate IDACI Band 0 - Primary IDACI Band 1 - Primary IDACI Band 2 - Primary IDACI Band 3 - Primary IDACI Band 4 - Primary IDACI Band 5 - Primary IDACI Band 6 - Primary Factor IDACI score lower limit IDACI score upper limit 2014/15 Funding Rate IDACI Band 0 - Secondary IDACI Band 1 - Secondary IDACI Band 2 - Secondary IDACI Band 3 - Secondary IDACI Band 4 - Secondary IDACI Band 5 - Secondary IDACI Band 6 - Secondary Schools can check the IDACI scores for the pupils they have on roll by using the DFE IDACI tool: Looked After Child (LAC) An allocation is provided for each LAC recorded in the October 2013 data set. The LAC numbers are taken from the March 2013 local authority LAC data collection which are mapped to schools using the January 2013 School Census. The funding rate for LAC is per pupil in both primary and secondary. Low Cost High Incidence Special Educational Needs (LCHISEN) This allocation is driven by prior attainment. For primary schools an allocation is made for the number of pupils in years 2 to 5 who achieved fewer than 73 points and pupils in year 1 who did not achieve a good level of development in the Early Years Foundation Stage Profile. For secondary schools, funding is targeted at all pupils who achieved a Level 3 or below in either English or mathematics at Key Stage 2. The unit values are detailed below: Factor Unit Value Primary Prior Attainment (LCHISEN) Secondary Prior Attainment (LCHISEN) 1, English as an Additional Language (EAL) Pupils attract EAL funding if they have English as an Additional Language and have been in the education system for less than three years. Pupils from the October 2013 census are categorised in three ways: 1_Eng = pupils with English as a first language (including believed to be English), 3_UNK = pupils whose language is unknown or undeclared and 2_OTH = all other pupils. 6

7 Pupils attract EAL funding if they are categorised as 2_OTH on the autumn 2013 Census and can be shown to have been in the school system for less than one year, less than two years or less than three years. The funding rates are shown below. Factor Unit Value Primary EAL Secondary EAL 1, Lump sums The lump sum allocation is a fixed amount for each school and is a contribution towards the schools fixed costs. The allocation per school is 150,000. Slit Lump sums The split site is allocated to those schools who: Operate more than one phase (Primary / Secondary). The second phase is run from a separate building. Dedicated management structure for additional phase. Purpose of this factor: Meet the fixed costs associated with operation of an additional building/site. Meet the management costs of operating a second phase (primary/secondary) from the additional building/site. The allocation per school is 150,000. Rates Funding is provided to primary and secondary schools to cover the actual costs incurred for business rates. The funding is estimated by multiplying the schools rateable value, as recorded on VOA website, by the rates multiplier (this is currently an estimate and we are awaiting final allocations). If the actual cost incurred is more than the published allocation additional funding will be provided during the year to reimburse the school for the full cost. If the actual cost incurred is less than the published allocation funding will be clawed back during the year to ensure the school has only been funded for the costs incurred. PFI The secondary schools which are part of the PFI project receive funding based on the schools pupil numbers multiplied by a unit value of This allocation is paid back to the LA along with the remainder of the facilities charges from the schools delegated budgets on a monthly basis. The LA are then invoiced on behalf of schools by the PFI contractor. Mobility This factor has been discontinued for 2014/15. Minimum Funding Guarantee This is a national funding formula ensuring that schools budgets do not decrease by more than -1.5% per pupil after the lump sum and rates funding have been exempted from the 2013/14 baseline allocations. An example of the calculation has been included below. 7

8 Example The table below details the funding allocations from 2013/14 indicating those factors which are included in the MFG calculation and those that are excluded. Factor Total Allocation Included in MFG Excluded from MFG Key Stage 3 (Years 7-9) 3,357,328 3,357,328 Key Stage 4 (Years 10-11) 2,734,399 2,734,399 FSM % Secondary 131, ,606 IDACI Band 1 - Secondary 21,282 21,282 IDACI Band 2 - Secondary 59,502 59,502 IDACI Band 3 - Secondary 168, ,870 IDACI Band 4 - Secondary 220, ,471 IDACI Band 5 - Secondary 33,348 33,348 IDACI Band 6 - Secondary - - LAC_X_Mar11 2,359 2,359 Secondary pupils not achieving (KS2 leve 381, ,466 EAL_3_SEC 115, ,400 Secondary Mobility 5,898 5,898 Lump Sum 150, ,000 Rates 44,981 44,981 PFI 358, ,880 MFG/Capping - - Total 7,785,789 7,590, ,981 Step 1: Take the prior year Individual Schools Budget (ISB) share (excluding the lump sum and rates) and divide by the prior year s pupil numbers to arrive at the prior year s funding per pupil: 7,590,809 / 1,422 = 5, Step 2: Reduce the prior year per pupil funding by 1.5% to arrive at the MFG funding per pupil: 5, x = 5, Step 3: Multiply the current year s pupil numbers by the MFG funding per pupil: 1,439 x 5, = 7,566,333 Step 4: Add the 2014/15 lump sum and rates allocation to the figure calculated in Step 3. This is the minimum level of funding the school can receive in 2014/15. The allocation calculated in Step 4 (MFG allocation) is compared to the allocation calculated through Peterborough s Funding Formula. If the MFG allocation is higher than Peterborough s Funding Formula then an additional allocation is made through the MFG factor to top-up Peterborough s Funding Formula to the same level as the MFG allocation. Notional SEN Budget Local authorities are required to identify within each school s budget share a notional SEN budget from which schools and academies can provide a level of support for all their pupils with SEN. This is not an additional allocation but is a notional amount of funding included in the schools budget share. This should not be regarded by schools and academies as a substitute for their own budget planning and decisions about how much they need to spend on SEN support, or as a fixed budget sum for spending by schools. The notional SEN budget is made up of the following: 3% of the basic entitlement allocation. 100% of all deprivation allocations. 100% of LCHISEN (Prior Attainment) allocation 8

9 De-delegations The local authority can create pooled budgets by de-delegating funding from the schools budget share. Where the local authority seeks to create a pooled budget it must receive approval from Schools Forum. Funding cannot be de-delegated from academies. Where there has been agreement from academies to create a pooled budget they will be invoiced. The table below details the de-delegations for De-delegation Description Total Dedelegation Basis of Dedelegation De-delegation Rate Facilities Time (Union Reps) By law, trade union representatives are entitled to reasonable paid time off from their regular job to enable them to perform their union duties and to undertake relevant training. This dedelegation is made to reimburse schools for release time where members of staff are conducting union duties. 47,746 Pupil Numbers (Basic Entitlement) 2.40 NQT Induction This de-delegation has been made to allow for the continued management and administration of the NQT induction process. 53,717 Pupil Numbers (Basic Entitlement) 2.70 Support to underperforming ethnic groups and bilingual learners; This de-delegation was to pump-prime the EAL academy initiative. Further information on the EAL strategy can be accessed from the following link: 432,744 EAL (3yr) Numbers Pri = Sec = High Needs Block Funding Enhanced Resource Provision (ERP) Where a school operates an ERP the funding is received in two elements: Place funding The school will receive an allocation of 10,000 for each place commissioned by the local authority. Where the ERP is based in academy the allocation will be paid directly by the Education Funding Agency (EFA). Where the ERP is based in a maintained school the place funding will be paid by the local authority. 9

10 Top-Funding The school will receive a top-up allocation, dependant on the place level, for each child filling an ERP place. The top-up funding will be made in monthly instalments by the local authority and a detailed breakdown for 2014/15 will be provided in the SEN statement. The top-up values for the ERP place levels are detailed below: Level 1 1a Annual topup funding 19,007 14,863 13,360 4,444 2,000 1,500 1, Pupils with Statements Schools are responsible for the first 10,000 of a child s education. This is broken down as 4,000 from AWPU/Basic Entitlement to meet the cost of the child s basic education provision and 6,000 from the schools delegated budget share (Notional SEN Budget) to meet the cost of any additional need. Special Educational Needs (SEN) above this 10,000 is funded to the school through a top-up allocation. Top-up funding is paid at three levels based on the child s need. The levels are detailed below. Level B C D Monthly Top-up Annual Top-up 2,388 5,831 8,536 Schools will receive a detailed breakdown of the 2014/15 top-up funding through the monthly SEN Statement. Medical Hours Funding Schools are responsible for the first 10,000 of a child s education. This is broken down as 4,000 from AWPU/Basic Entitlement to meet the cost of the child s basic education provision and 6,000 from the schools delegated budget share (Notional SEN Budget) to meet the cost of any additional need. Special Educational Needs (SEN) above this 10,000 is funded to the school through a top-up allocation. Medical hours above in primary schools are funded at 8.56 per hours. Medical hours above in secondary schools are funded at 9.36 per hours. Schools will receive a detailed breakdown of the 2014/15 top-up funding through the monthly SEN Statement. Pupil Premium This is a national funding formula which targets funding to pupils from deprived backgrounds, service pupil and children in care. Condition of grant documentation has yet to be published by the DFE but 2014/15 allocations published via other government communications confirm the following rates: 1,300 for primary aged pupils which have been entitled to a FSM at any of the three census point over the last six years. 10

11 935 for secondary aged pupils which have been entitled to a FSM at any of the three census point over the last six years. 1,900 for a Looked After Child (LAC). 300 for each service pupil. Further information will be made available when the DFE make their final announcements on pupil premium. Growth Funding The local authority, with approval from Schools Forum, can top-slice the DSG to create a fund to support schools who experience significant in year growth. Schools Forum have agreed to top-slice 2.25M from the 2014/15 to support schools with significant growth. The growth fund will be available to meet additional revenue costs associated with significant growth. Schools will receive growth funding where they meet one on the following criteria: Additional class - Significant increase in numbers has resulted in the need to run an additional class. Schools will be asked to provide their current class structures and revised class structures from September to support their claim. More than one class - Significant increase in numbers has resulted in the need to run more than one additional class. Schools will be asked to provide their current class structures and revised class structures from September to support their claim. New Schools New schools who have not reached their published numbers. Funding will be allocated in one of the following three way: Additional Class Schools which have demonstrated the need to run an additional class will receive an allocation of 34,584 in primary and 35,199 in secondary. These allocations have been based on the following: Sep 14 - Aug 15 12/12ths Sep 14 - Mar 15 7/12ths Primary Secondary Primary Secondary UPS1: 41,771 41,771 24, , TA Time: 8,067 8,067 4, , Midday Supervisor: 2,012 2,012 1, , Cleaning: Energy: 1, Curriculumn Costs: 5,000 6,636 2, , ,287 60,340 34,584 35,199 More than one class Where there is planned growth of more than one class then Peterborough Funding formula will be used to generate an additional allocation. New Schools New schools will receive top-up funding using Peterborough s funding formula to increase the schools funded numbers up to round class sizes of 30. New schools funding would cease once the pupil numbers (including top-up numbers) exceeds 150 pupils. 11

12 Schools will be notified separately of their growth allocations. Devolved Formula Capital Devolved formula capital (DFC) is capital funding that is calculated on a purely formulaic basis. DFC is based on the school census dataset collected in January For financial year 2014 to 2015, the calculation of DFC uses a per school sum of 4,000 and a per pupil sum, which varies. Secondary pupils are allocated 1.5 times the amount for primary pupils, and special school and PRU pupils are allocated three times the amount for primary pupils. Where a middle school is deemed to be a primary school it will attract the primary pupil amount, and where it is deemed to be a secondary school it will attract the secondary pupil amount. The higher rate is also allocated to all boarding pupils and pupils at non-maintained special schools. Pupils with statements of SEN used to be paid at the higher rate, but since financial year 2008 to 2009 they have been paid at the standard rate. The rates for each phase can be seen below: 12