Following on from our previous blogs on financial sustainability, it is crucial that schools keep an up to date working budget, as this will enable the school leaders and governor/trustees to make informed choices. Tough decisions may have to be made – but without realistic, up to date budget information these judgements could be ill informed. The link below shows the school resource management: top 10 planning checks for governors and could be helpful with financial management.
Gov.UK: School resource management: top 10 planning checks for governors
The recent autumn statement from the Chancellor announced that schools will receive £2.3 bn in extra funding both next year and the year after. There is currently no further information but as they say “the devil is in the detail”.
Areas that will need to be reviewed to create a revised forecast:
Pupil numbers
Make sure you update your pupil numbers to incorporate the October 2022 census that has just taken place and realistically predict pupil numbers in future years.
Early Years portal
The nursery numbers will have been updated in the early years portal by now – you will need to print off the financial summary to update your budget. This might vary considerable from the original Approved Budget Return (ABR) so make sure you make appropriate adjustment for this both in the current monitor and the budget software.
Teachers Pay Grant and Teacher Pension Grant for nursery’s and 6th Forms only
You can check your actual allocation for these two grants using the links below. These figures can then be used to update your current monitor and the budget software.
Gov.UK: Teachers’ pay grant: allocations for 2022 to 2023 financial year
Gov.UK: Teachers’ pension grant: 2022 to 2023 allocations
High Needs Funding
You should have received your HNF statements (if not contact the SEN team). This revenue can be updated on the current monitor and the budget software. Remember to consider any clawbacks for pupils who might have left the school since the ABR was set. Also, in this area – think about who will be supervising these pupils if necessary and ask yourself have you built this cost into your staffing budget/forecast? HCC have communicated that pupils in Mainstream Schools awaiting a Special School Place will be awarded £2,000 per term while the pupil is still attending the school
Pupil Premium
Updated allocations are now available.
Check how many pupils you are being funded for compared to the approved budget and make appropriate adjustments. Remember to update your income across the years and allow for reductions in pupils numbers. Make sure you do not end up double counting costs for example within the staffing costs and within for example curriculum expenditure or counselling.
Early Careers Teacher Grant are paid in the summer term of the second year. The earliest grants to be received will be Summer 2023. This can be adjusted in your budget software if you have any ECT Grant due in Summer 2023 and onwards.
Schools Supplementary Grant (SSG)
The second payment of the SSG has now been paid to schools and academies. Check the second payment using the link below and update the current monitor and budget software.
Gov.UK: Schools supplementary grant 2022 to 2023
Other revenue sources
Whilst reviewing other areas of revenue think about student placements that you might not have included in the approved budget. Revenue from after school clubs, breakfast clubs, lettings and additional hours for nursery provision can be adjusted using year to date income data. Have there been any staff sickness or maternity insurance claims which might be pending? If so, include these amounts if it is known that the revenue will definitely be received. Be careful to include this in the correct financial year as the staff member might not be returning until 2023/24.
Recovery Premium and School Led Tutoring can now be updated. Check in the budget software that these do not run into future years. Schools cannot carry forward these funds to future years.
Universal Infant Free School Meals
The link below will show you the final allocation from 2021/22 and the provisional allocation for 2022/23. Check that the expenditure is in line with the revenue.
Gov.UK: Universal infant free school meals (UIFSM): 2022 to 2023
PE Grant revenue
Any unspent PE & Sports Premium Grant, from the 2021/22 will be recovered by the DfE. This is regardless of any plans that a school may have to spend it during the 2022/23. The first tranche should be paid to schools in October/November or check the link below to see the full year allocations. View latest funding (skillsfunding.service.gov.uk)
Staffing items to note and check
Budget software Action any updates available in the budget software as this will provide you with the most up to date information. You must ensure that you have updated payroll following performance management and the current pay increases. You should also ensure that all staff contracts are up to date in your budget software.
Energy costs
Schools and Trusts do not need to do anything to be eligible for the Energy Bill Relief Scheme as the discount is automatic. Please be aware that if a school receives a message requesting bank details or other information it could be a scam, and you should report it online.
If you need any more help or advice, please contract bms@hfleducation.org.
Fiona Clain
