Contact: Sarah Pook ext 7045, Thomas Whiffen 6287

1 Summary

The following decisions are sought:

· The proposed revisions to the HCC Scheme for Financial Management of Schools be approved as they have been supported by schools and the revised text be submitted to the DfES for formal approval.

· That the changes to the funding formulae for schools, all supported by schools, be reflected in school budget shares.

2 Reasons

The DfES have issued revised Statutory Guidance on Schemes for Financing Schools, introducing various changes since the first (1999) edition of the Guidance.

As a result, Hampshire County Council are required to revise the local Scheme of Financial Management for Schools, incorporating those miscellaneous technical areas and matters of detail introduced by the DfES and to bring the wording of the HCC Scheme in line with the Statutory Guidance.

The County Council has also taken this opportunity to propose a number of other revisions to the operation of the local Scheme and to update the text in line with the Education Act 2002, changes to HCC Standing Orders, to update the Scheme wording to reflect the move from the current financial management system (FMS) to SAP and other more general amendments to local practices and matters of detail.

Budget developments and changes to Government grants also require changes to the LMS formulae for funding schools.

At their meeting on 22 November 2002, the Schools Forum supported the proposed revisions to the Scheme for Financial Management of Schools and changes to the funding formula and agreed to a consultation exercise with schools.

3 Other options considered and rejected: Leaving the scheme unchanged would have breached statutory guidance and failed to recognise the impact of financial system changes. Leaving the formula unchanged would have prevented the incorporation of budget decisions in school budget shares.

4 Conflicts of interest declared by the decision maker or a member or officer consulted - None

5 Dispensation granted by the Standards Committee - not applicable

6 Reason(s) for the matter being dealt with if urgent - not applicable

Approved by: (signature) Date: (date of decision)

Councillor

Section 100 D - Local Government Act 1972 - Background Documents

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB The list excludes:

1. Published works

2. Documents which disclose exempt or confidential information as defined in the Act.

TITLE FILE

Schemes for Financing Schools: Section 48 of the Schools Standards and Framework Act 1998 and Schedule 14 thereof. - Statutory Guidance for Local Education Authorities - issued by DfES January 2001

Draft Financing of Maintained Schools Regulations 2003 : Regulation 29 and Schedule 3- sent to LEAs by DfES December 2002 DfES ref LEA/0501/2002.