Dedicated Schools Grant (DSG) Outturn 2021 to 2022

• Meeting: Schools Forum
• Date: 20 June 2022
• Report of: Head of Health, Adults, Families, Children and Learning Finance
• Subject: Dedicated Schools Grant (DSG) Outturn 2021 to 2022
• Wards Affected: All

1.1

To update the Forum on the outturn position for the Dedicated Schools Grant (DSG

2.1

To note the level of school balances of £8.135m as at 31/03/22, an increase of £1.223m from £6.912m at the end of 2020/21 (a 17.7% increase).

2.2

To note the carry forward of £0.035m on the central DSG as at 31/03/22, a reduction of £0.711m from £0.746m at the end of 2020/21

3.1

Appendix 1 shows the school balances position at the end of the 2021/22 financial year.

The overall position shows a net carry forward balance of £8.135m, an increase of £1.223m or 17.7% increase when compared to 2020/21.

(a) Summary of balances

See Appendix 1 (attached) for a detailed school by school breakdown of the balances and movement from 2020 to 2021.

Note: Moulsecoomb Primary converted to an Academy on 1st November 2021 and is excluded from 2021 to 2022 balances.

(b) Movement in Balances

There is an overall increase in carry forwards of £1.223m and the split across phases shows the following movements:

The overall position of surpluses and overspends is detailed below (this includes monies held within phases for partnership activities):

(c) Deficit Balances (overspends)

In total there are 15 schools (out of 62) with deficit balances, an increase of 5 Schools from 2020/21, and the split of these is as follows:

School budget plans for 2022 to 2023 will incorporate these overspends and the Finance team are/will be working closely with schools to identify those who are likely to require licensed deficits in the coming year

(d) Schools with balances greater than thresholds identified in the DfE Balance Control Mechanism

The balance control mechanism was introduced by Government in 2007 and operates where surplus balances are:

• Nursery, Primary and Special Schools Greater than 8% of budget (For special schools who now receive a significant component of their funding as top-up income, we have included this as budget for the purpose of the percentage calculation)
• Secondary Schools Greater than 5% of budget (We include sixth form income as budget for the 2 schools with sixth forms

The following table shows the number of schools who have balances in excess of these thresholds:

The balance above the threshold is £0 in Nursery, £488,905 in Primary, £2,684,047 in Secondary and £0 in Special – totalling £3,172,952 an increase of 99.7% compared to 2020/21. (In 2020/21 the balances above the threshold were £0 in Nursery, £476,250 in Primary, £1,112,676 in Secondary and £0 in Special – totalling £1,588,926).

Previously at Schools Forum it was agreed that any surplus balances would be discussed as part of conversations between the school and the local authority focussing around good use of resources and the needs of the pupils at the school.

4.1

The final central DSG outturn for 2021/22 was an underspend of £0.035m, a reduction of £0.711m from £0.745m in 2020/21.

4.2

A summary of the key components making up the £0.035m underspend is shown in the tables below.

High needs block

Early years block

Other

Total

4.3

The £0.035m underspend is carried forward to support the DSG in 2022/23. The underspend relating to the Early Years Block will be subject to a retrospective adjustment by DfE to reflect the reduction in the number of children recorded in the Early Years’ census in January 2022. This amount is due to be notified to the LA in July 2022.