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Finance for Special Educational Needs

Charlie Palmer

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Hypothecation and Virement

An hypothecated budget is one in which the elements making up the budget are precisely specified, and amounts cannot be vired among different budget headings. A shopping list given to a child is a good example. It has always been the practice in the UK Treasury to argue that both Taxes and Spending are not hypothecated and similarly, it has always been argued that education budgets are not hypothecated. For governors, the non-hypothecation of budgets means that it is up to each governing body to determine local spending priorities within the overall budget. Fair Funding continues this tradition. But...

“[Although budgets are not hypothecated] the Government considers it important that each school should be clear what levels and kinds of special needs it is expected to meet from its own delegated budget and how much of its delegated budget is notionally attributable to SEN."

(DfEE Fair Funding Consultation Paper, 1998, page 33).

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What is in the Budget for SEN?

• Notional Budget for SEN– 4% of Age weighted Pupil Unit (AWPU) funding*– £7.30 per pupils SENCO release time– Amount delegated for statements

• Additional Elements– Funding for Unit Provision– Learning Support Unit and Social Inclusion Funding

(secondary schools)

* An additional 1% is built into the delegation formula

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Section 52 Budget Statement

• Financial year runs April to March• LEA issues school budget statements in

March each year• LA publishes “Notional Budget for SEN”

information on EIS in May• Three year school budgets will be issued from

next year, but future years subject to pupil data changing each year

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How the Formula Works

PA points are scored by those pupils whose SAT results at Key Stage 2, 3 and 4 fall in the bottom 18% of all

Leicestershire schools. For Key Stage 1 the bottom 18% of baseline assessments/Foundation Stage Profiles are used. Those in the bottom 2% score points weighted by

4, next 5% weighted by 2% and next 8% by 1.

The funding per PA point figure is calculated, using the PA funding at each key stage and dividing by the total number

of PA points in each of those stages.

Prior-Attainment (PA) drives 70% of the funding available at Key Stage 2,3 & 4 and Social Deprivation (SD) drives 30%. With Key Stage 1 this is adjusted to 50% for both as it is recognised that baseline assessments/foundation stage profiles are not as objective as SAT results.

Total SEN Funding is split between Key Stages - pro rata using global pupil numbers on roll figures at each stage.

The funding per SD point figure is calculated, using the SD funding at each key stage and dividing by the total number of SD points in each

of those key stages.

SD points are weighted numbers on roll. The multiple index of deprivation is used to rank schools in order of most deprivation. The most deprived third receive a weighting of 4 for each pupil, the next

third a weighting of 2 and the bottom third a weighting of 1. The January PLASC NOR figures are used

Each schools Section 52 SEN Delegation formula funding share = (PA funding per point x schools PA points) + (SD funding per point x weighted NOR)

Prepared by Phil D’Mello

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An Example: SEN Calculation0151 SEN 0708 Start1 2007/08 SPECIAL NEEDS DELEGATION School Ab Kettleby Primary School Cost Code 0151 DfES Number 2000 2007-08 Formula Funding

A Social Deprivation (SD) Weighting – using the multiple index of deprivation

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B KS1 NOR (using January Census figures) 14 C = A x B KS1 weighted NOR 14 D = C x £34.96 KS1 SD Funds 489 E KS1 Attainment Score 6 F = E x £409.72 KS1 Attainment Funds 2,458 G KS2 NOR (using January Census figures) 29 H = A x G KS2 weighted NOR 29 I = H x £21.01 KS2 SD Funds 609 J KS2 Attainment Score 0 K = J x £452.71 KS2 Attainment Funds 0 L KS3 NOR (using January Census figures) 0 M = A x L KS3 weighted NOR 0 N = M x £19.11 KS3 SD Funds 0 O KS3 Attainment Score 0 P = O x £431.66 KS3 Attainment Funds 0 Q KS4 NOR (using January Census figures) 0 R = A x Q KS4 weighted NOR 0 S = R x £21.15 KS4 SD Funds 0 T KS4 Attainment Score 0 U = T x £415.47 KS4 Attainment Funds 0 V = D + I + N + S Total SD Funds 1,099 W = F + K + P + U Total Attainment funds 2,458 X = V + W Total SD and Attainment Funds 3,557

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An Example: Section 52 Budget StatementStart1 ORIGINAL SECTION 52 BUDGET STATEMENT 2007/08 12 March 2007 School: Ab Kett leby Community Primary School Code:0151 A) PUPIL RELATED ALLOCATIONS January £ per £ Tota l Actual pup i l 3+ 0.0 2,033.17 0 4+(a) 0.0 2,029.03 0 4+(b1) 2.0 1,743.38 3,487 4+(b2) 0.0 1,977.89 0 4+(c) 0.0 1,407.00 0 5+ 5.0 2,114.58 10,573 6+ 7.0 2,189.53 15,327 7+ 9.0 2,000.52 18,005 8+ 7.0 2,000.74 14,005 9+ 9.0 2,037.33 18,336 10+ 4.0 2,129.12 8,516 Sub 43.0 88,249 Tota l B) SMALL SCHOOL PROTECTION Teaching 55,986 Consumables 720 Furn iture & Equipment 3,296 C) OTHER FUNDING Spl i t s i te a l lowance 0 Nursery/4+ Top up 0 Genera l Buf fer 19,380 Socia l depr ivat ion 146 Spec ia l Needs Uni t 0 New school a l lowance 0 Turnover Factor 0 Spec ia l Needs 3,557 Class Size 0 Cater ing 941 Ext ra Meals 0 Pool Al lowance 0 Personal ised Learn ing 2,610 D) PREMISES RELATED UNIT UNIT SCHOOL

FUNDING UNITS In terna l Premises Sq. Metres 15.97 563 8,987 External Premises Acres 655.68 1.27 833 Rates Actual Cos t 2,042 Rent Actual Cos t 0 E) TOT AL OF OTHER FUNDING ( B+C+D ) 98,498 _ _ _ _ _ _ _ _ _ _ _ _ _ _

F) TOTAL AGE WEIGHTED AND OTHER FUNDING ( A+E ) 186,746 G) STANDARDS GRANT 17,107 H) MIN. GUARANTEE PROTECTION AND OTHER ADJUSTMENTS 0 (Please see over for breakdown) _ _ _ _ _ _ _ _ _ _ _ _ _ _

I ) 2007/08 FORMULA ALLOCATION ( F+G+H ) 203,853 J) 2006/07 ACTUAL RETROSPECTIVE ADJUSTMENT 0 K) 2006/07 CARRY FORWARD 0 _ _ _ _ _ _ _ _ _ _ _ _ _ _

L) 2007/08 ORIGINAL TOTAL SCHOOL ALLOCATION ( I+J+K) 203,853 _ _ _ _ _ _ _ _ _ _ _ _ _ _

The pupil numbers above are based on the January actual numbers.

4% AWPU

SENCO Release £7.30

per pupil

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Notional Budgets for SEN

Cost DfES School 4%of the Age SENSenco SEN Special LSU Social 2007-08

Code No. Weighted Pupils @£7.30 Notional Needs Unit Inclusion S52 Table 2 Total 07-08 Notional SEN

£ £ £ £ £ £ £ £0151 2000 Ab Kettleby Community Primary School 3,530 3,557 323 7,410 0 0 0 7,410

0153 2006 Albert Village Community Primary School 13,283 24,859 1,218 39,359 0 0 0 39,359

0760 3331 All Saints Church of England Primary School 19,000 86,838 1,729 107,567 0 0 0 107,567

School details

4% of AWPU funding

Delegated funding

SENCO release time: £7.30 per

pupil

Total Notional SEN Budget

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Arrangements for 2007-08

• Transitional support budget• Budget of £85,000 agreed by schools forum for 06-07. This year

schools protected by minimum funding guarantee and contingency fund*

• Enhanced Packages budget• Propose to run shadow budgets and engage APSPs with decision

making in 06-07 and work on formal agreement to support delegation for 07-08 approved by forum. Consultation indicates panels not ready to take on this, shadow budgets not yet prepared.

• 16+ statements in mainstream• Delegation to schools agreed by schools forum in 06-07

• Balance between historic and formula funding• Gradual move to 100% formula funding over last four years

• Mid year transfer support• Small budget proposed to be held centrally to help small schools with

high cost pupils arriving at non-standard times.

*Contingency funding can only be accessed if the school is in deficit

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Rules for Additional Funding (07-08)

Enhanced PackagesAim: Support schools with high cost

statemented pupilsResource: £710,000Rules:1. Statement panel identify that a special

school placement is appropriate, but family prefer a mainstream placement

2. An out county placement has been agreed but a school has not yet been identified

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Rules for Additional Funding (07-08)

Mid Year Transfer Support (Move In)Aim: Reduce risk to schools from high cost new arrivals

Resource: £ 50KRules:

1. Applies to pupils who have statements specifying 25 hours support or more, and transfer at non-standard times (and years)

2. All costs met when statement costs exceed delegated budget

3. Schools need to contact SENA case work officer

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Monitoring

Budget Information – Financial Year April 2003-April 2004

Income £a) Notional school budget for SEN (This includes: delegated

amount for statements, SENCO release, and 4% AWPU (original figures distributed in April 2003))

b) Amount from centrally held budget for high cost statements£

c) Other sources of funding, e.g. Standards Fund, spent on SEN

i) £

ii) £

TOTAL £

Expenditurea) Amount spent on staffing (internal)

i) SENCo’s or part of SENCo’s salary £

ii) SEN support teachers £

iii) Teachers who teach small lower sets (roughly half fewer usual set numbers). £

iv) SEN teaching assistants £

v) NNEBs supporting SEN pupils £

vi) Administration for SEN £

vii) Other – please specify: £

£

£

b) Amount spent on external services , e.g. STS, consultancy

i) £

ii) £

c) Amount spent on materials/resources £

d)

Amount spent on INSET (include cost of supply cover, travel etc. as well as course feels) £

e) Other expenditure (please list)

£

£

TOTAL £

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Impact of Delegation

Chart to Show Monthly Numbers of Mainstream Pupils with Statements, and Numbers under Statutory Assessment: 2001-07

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