Agenda item

To consider a change in the timetable for maintained schools to purchase Local Authority services, to take effect for 2015-16. Appendix C refers.

The Forum was asked to consider a proposal to changes to the wording for the current Schools Financing Scheme.

The report outlined that currently, services were charged on the basis of an annual subscription and agreements with the Local Authority (LA) would be continuous unless schools advised the provider by 1st April that they no longer wished to purchase the service. In order to assist schools in making their decisions by 31December of the previous year, service providers must advise schools of any significant restructuring of their services or price increases above the rate of inflation.

Where a school had advised a provider that it no longer wishes to purchase the service, the service would continue at the previous year’s price plus inflation until 31 August.

The term of any arrangement with a school to buy services or facilities from the LA would be limited to a maximum of three years from the date of the agreement and periods not exceeding five years for any subsequent agreement relating to the same services. In the case of catering services an extension applied to five and seven years respectively.

Services provided for which expenditure was not retainable centrally by the LA under the Regulations made under section 46 of the Act, would be offered at prices which were intended to generate income which was no less than the cost of providing those services. The total cost of the service must be met by the total income, even if schools were charged differentially.

The report informed the Forum that the following notification clause on the portal currently existed:

· A school must give notice by 30 March as to whether it wishes to continue or discontinue the service for the full financial year ending 31 March of the

following year.

· If a school did not give notice by 31 March, then the contract was deemed to be extended for the financial year ending 31 March of the following year.

· If a school gives notice between 1 April and 30 September (inclusive) that it did not want to continue the service for the following financial year, the

service would discontinue on the following 31 March.

· If a school gave notice between 1 October and 31 March (inclusive) that it did not want to continue the service for the following financial year, the

service would discontinue on the following 31 August.

It was  proposed to make changes from 2015-16 which extended to 30 April the deadline for schools to confirm purchases of services and introduced an earlier opportunity for schools to advise the LA that they wished to discontinue services so they could end on 31^st March rather than 31^st August of the following year. The revised wording would be as follows:

For those services charged on the basis of an annual subscription, agreements with the LA would need to be completed by 30April. In order to assist schools in making their decisions, by 31December of the previous year, service providers must advise schools of any significant restructuring of their services or price increases above the rate of inflation.

Where a school had advised the LA’s Business Support Team between 1 October and 30 April (inclusive) that it did not wish to continue the service for the following financial year, the service would discontinue on 31 August.

Where a school had advised the LA’s Business Support Team between 1 May and 30 September (inclusive) that it did not wish to continue the service for the following financial year, the service would discontinue on 31 March.

The term of any arrangement with a school to buy services or facilities from the LA will be limited to a maximum of three years from the date of the agreement, and periods not exceeding five years for any subsequent agreement relating to the same services. In the case of catering services an extension applied to five and seven years respectively.

Services will be offered at prices which were intended to generate income which is no less than the cost of providing those services. The total cost of the service will be met by the total income, even if schools were charged differentially.

The report detailed the following proposed notification clause changes:

· A school must complete the purchase of services offered through annual

subscription by 30April.

· Where a school had advised the LA’s Business Support Team between 1

October and 30 April (inclusive) that it did not wish to continue the service

for the following financial year, the service would discontinue on 31 August.

· Where a school had advised the LA’s Business Support Team between 1 May and 30 September (inclusive) that it did not wish to continue the service for the following financial year, the service would discontinue on 31 March.

Officers informed the Forum that the above changes were in line with the DFE Guidance for the Provision of Services that contained a provision limiting the term of any arrangement with a school to buy services or facilities from the authority to a maximum of three years from the date of the agreement, and periods not exceeding five years for any subsequent agreement relating to the same services.

The Forum voted unanimously in favour of the proposed changes in the timetable for maintained schools to purchase Local Authority services, to take effect for 2015-16.