Meeting information

  • 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. Purpose of the report

1.1

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

2. Recommendations

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. Information and background

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

Phase 2020 to 2021
£'000
2020 to 2021
percentage of budget
2021 to 2022
£'000
2021 to 2022
percentage of budget
Nursery 34 4.26% (20) 12.81%
Primary 3,527 4.58% 3,685 4.51%
Secondary 3,277 6.28% 4,561 7.86%
Special and AP 74 1.24% (91) -1.5%
Total 6,912 5.08% 8,135 5.56%

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:

Phase £0'000
Nursery (54)
Primary 159
Secondary 1,283
Special and AP (165)
Total 1,223

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

Phase 2020 to 2021
£0'000
2020 to 2021
£0'000
Movement
£0'000
Nursery surpluses 34 7 (27)
Nursery overspends 0 (27) (27)
Primary surpluses 3,886 4,)96 210
Primary overspends (359 (411) (52)
Secondary surpluses 3,277 4,897 1,620
Secondary overspends 0 (336) (36)
Special and AP surpluses 132 34 (98)
Special and AP overspends (58) (125) (67)
Overall surpluses 7,329 9,034 1,705
Overall overspends (417) (899) (482)
Total net position 6,912 8,135 1,223

 

Net position - number of schools 2020 to 2021 Percentage 2021 to 2022 Percentage Movement
Overspent 10 16% 15 24% 5
Balance between £0 and £10,000 2 3% 4 6% 2
Balance between £10,000 and £50,000 16 25% 11 18% (5)
Balance between £50,000 and £100,000 14 22% 14 23% 0
Balance between £100,000 and £250,000 13 21% 8 13% (5)
Balance above £250,000 8 13% 10 16% 2
Total 63 100% 62 100% (1)

(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:

Phase Deficit balances 2020 to 2021 Total Schools 2020 to 2021 2020 to 2021 percentage Deficit balances 2021 to 2022 Total schools 2021 to 2022 2021 to 2022 percentage
Nursery 0 2 0% 1 2 50%
Primary 9 50 18% 10 49 20%
Secondary 0 7 0% 1 7 14%
Special and AP 1 4 25% 3 4 75%
Total 10 63 16% 15 62 24%

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:

Phase Number >5% or >8% in 2020 to 2021 Total Schools  2020 to 2021 percentage Number >5% or >8% in 2021 to 2022 2021 to 2022 percentage
Nursery 0 2 0% 0 0%
Primary 6 50 12% 8 20%
Secondary 4 7 57% 4 57%
Special  0 4 0% 0 0%
Total 10 63 16% 12 19%

 

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. Central DSG outturn 2021 to 2022

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

Service area £0,000
High Needs top up to mainstream schools 91
High Needs payments to specialist providers (independent non-maintained schools) 394
Specialist Provision Resource Bases (134)
Other High Needs Block areas (10)
Total High Needs Block 34

Early years block

Service area £0,000
Early Years free entitlement payments to providers (111)
Early Years additional support funding to providers 123
EYB Unallocated – provision for anticipated pressures (392)
Other Early Years areas (1)
Total Early Years Block 381

Other

Service area £0,000
Central Services Schools and Block and other centrally retained services including areas de-delegated from mainstream school 5

Total

Service area £0,000
Total Central DSG Budget Underspend (35)

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.