Archived decisions

REVISION TO HAMPSHIRE COUNTY COUNCIL'S SCHEME OF FINANCIAL MANAGEMENT FOR SCHOOLS AND FORMULA FUNDING CHANGES

1. The Department for Education and Skills have issued revised statutory guidance on schemes for financing schools, introducing various changes since the first edition of the guidance in 1999. As a result, the County Council is 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 Hampshire County Council scheme into 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 and with changes to the County Council's Standing Orders. The wording of the scheme has also been updated to reflect the change in the County Council's current financial management systems and other more general amendments to local practices and matters of detail. At the same time, changes to the Local Management of Schools formulae for funding schools are necessitated by developments in the budget and changes to Government grants.

2. The main changes to the local Scheme of Financial Management for Schools relate to the following areas:


· Local authority financial reporting requirements


· Funding mechanisms for local bank account schools


· Criteria for borrowing by schools


· Introduction of a loan scheme from school balances


· Appropriate levels for surplus balances


3. There has been a programme of consultation with schools on the proposed revisions to the Scheme and the vast majority are in favour.


4. Changes to the funding formulae relate to the following areas:


· Infant class size grant


· Standards Fund grants


· Special school funding


· Sixth Form funding


5. The Executive Member for Education has therefore approved the detailed revisions to the Scheme for Financial Management of Schools in the light of the general support expressed by schools; and has agreed that the revised text should be submitted to the Department for Education and Skills for formal approval. He has also agreed that the changes to the funding formulae for schools, which again commanded general support from schools, should be reflected in school budget shares.

8FR46403