OFSTED AUDIT COMMISSION INSPECTION REPORT ON LAMBETH LEA, DECEMBER 2000

A Critchley

Description

Education Scrutiny Committee (11.04.01) Report 384/00-015UPDATE ON EDUCATION FINANCE Report by: Alison Critchley, Policy and Performance Review ManagerContact for inquiries: John Martin 020 7926 9736Alison Critchley 020 7926 9761PURPOSETo advise Members of the Education Scrutiny Committee of the action that is beingtaken in respect of finance in response to the Ofsted/Audit Commission report onLambeth LEA that was published on 19 December 2000, and the recommendationsin the education finance scrutiny report.RECOMMENDATIONThat Members note the action plan and the table setting out how each of therecommendations in the finance scrutiny report is being addressed and the Ofstedaction plan.BACKGROUNDAt the meeting on 17 January members of the education scrutiny committee agreedthat they should consider action to address the recommendations of the educationfinance scrutiny report alongside the action to address the finance relatedrecommendations in the Ofsted/Audit Commission inspection report. Officers havealso provided members of the scrutiny committee with the more detailed informationrequested about schools with large balances.Audit TrailCommittee Deadline (first in cycle): 30.03.01Author: A.CritchleyDate Drafted: 29.03.01CONSULTATION WITH OTHER OFFICERS/DIRECTORATESNAME DIRECTORATE DATE SENT DATE DATE DATERECEIVED CLEARED RECEIVEDN/ADate sent to Committee Secretariat: 30.03.01Date received by Committee Secretariat: 30.03.01Date sent to ...

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• Publié par: Imme
• Nombre de lectures: 39
• Langue: English

Extrait

Education Scrutiny Committee (11.04.01)

UPDATE ON EDUCATION FINANCE

Report 384/00-01 5

Report by: Alison Critchley, Policy and Performance Review Manager Contact for inquiries: John Martin 020 7926 9736 Alison Critchley 020 7926 9761

PURPOSE To advise Members of the Education Scrutiny Committee of the action that is being taken in respect of finance in response to the Ofsted/Audit Commission report on Lambeth LEA that was published on 19 December 2000, and the recommendations in the education finance scrutiny report. RECOMMENDATION That Members note the action plan and the table setting out how each of the recommendations in the finance scrutiny report is being addressed and the Ofsted action plan.

BACKGROUND At the meeting on 17 January members of the education scrutiny committee agreed that they should consider action to address the recommendations of the education finance scrutiny report alongside the action to address the finance related recommendations in the Ofsted/Audit Commission inspection report. Officers have also provided members of the scrutiny committee with the more detailed information requested about schools with large balances.

Audit Trail Committee Deadline (first in cycle): 30.03.01 Author: A.Critchley Date Drafted: 29.03.01 CONSULTATION WITH OTHER OFFICERS/DIRECTORATES NAME DIRECTORATE DATE SENT DATE DATE DATE RECEIVED CLEARED RECEIVED N/A Date sent to Committee Secretariat: 30.03.01 Date received by Committee Secretariat: 30.03.01 Date sent to Councillors:

Finance Scrutiny Report recommendation Action taken, or reference to Ofsted action plan Appropriate Role of Lambeth LEA That in the light of significant changes, in See B1, clarify the role of the financial particular greater school autonomy, the LEA monitoring team needs to work with stakeholders to define their respective roles. That Education Scrutiny Committee consider Education Scrutiny agreed at their meeting this area for a commission. on 18 January that relevant action arising from the Finance Scrutiny Report should be incorporated into the Ofsted action plan and reviewed at their April meeting. Expectations in relation to financial management That the respective financial management See B1, clarify the role of the financial roles and responsibilities of the LEA and monitoring team schools be clarified further because of the confusion about what schools and the LEA do. That the 'School Finance Manual', which is The School Finance Manual was circulated to still in draft, be finalised and thereafter schools in June. It is not in draft. It will be regularly updated to promote sound financial renewed and updated on a regular basis, management and controls in schools. Also, with new sections added as appropriate. The training should be mounted for both school first update is currently being undertaken. staff and governors to ensure that the This will be followed by workshops in the requirements of the Manual are understood Summer Term, following completion of the by those involved. weekly LRM4 training programme. That Governors be given financial information See B2, Train governors to understand their and appropriate training to enable them to responsibility for budgetary management and discharge adequately their duty of overseeing control. The Governor Services and Finance financial management in schools. However, Teams are currently developing a training the training needs of governors should be programme for governors on budget setting identified before actually providing the and financial monitoring. This will be rolled training - there was a criticism that the out following a trial session in April. training provided was not particularly useful for non-accountants. The LEA should assist schools in sharing best (not worst) practice between themselves. Quality of service received from the LEA Finance That re-assurance be given about Ofsted/the Audit Commission reported on implementation and meeting of the OFSTED progress in December and a further action recommendations following the resignation of plan has been prepared to respond to the Assistant Director of Resources, who was outstanding concerns. the main driver behind the proposals presented to this Commission,. That whilst the size and function of the See recommendation B1, clarify the role of School Regulatory Team is clear , more the financial monitoring team. The role of the information is required about the size and financial monitoring team has been set out in function of the School Support Team within the Services to Schools booklet 2001/02. Education Finance. That clarification be given about the See recommendation B3, reformat the purchasing of services (from Education financial advice SLA offered as a basic

Finance) by schools and on what basis in service with additional higher level support terms of cost and availability. Headteachers options. This has been done in the Services and Governors have indicated that they may to Schools 2001/02 booklet. be more confident with an LEA in house provision but would like to have a reliable service and choices. That assurance be given that when schools See recommendation B3, reformat the buy in services from Education Finance that financial advice SLA offered as a basic those services would be provided on service with additional higher level support demand/when requested, subject to any options. This has been done in the Services necessary period of notice stated to be to Schools 2001/02 booklet. The prices required when the service is offered. charged should provide sufficient revenue to enable the service to be delivered. School Budgets That there be greater transparency with A 2001/02 budget summary is to be regard to the proportion of the education circulated to schools, subject to discussion budget that the LEA is delegating to our with schools on the format. schools. That Education Finance provide the lead in See recommendation B2, ensure that establishing a robust system to ensure that schools return the financial information there is regular monitoring of income and sought by the LEA. expenditure against the agreed budget at schools level. The budget process at Lambeth needs to be Budget share information for 2001/02 was improved as Headteachers have indicated provided to schools on 21 March 2001. The that it is poor and results in late submission. information cannot be provided until the Technical competence of personnel Council Budget has been approved, which determines how quickly budgets are set. means that schools are sometimes notified only shortly before the new financial year, although there is some scope to bring the timetable forward by a couple of weeks. General feedback from schools has been positive. That clarification be given on how schools See recommendation B2, ensure that are monitored to ensure that school budgets schools return the financial information are spent in accordance with the Scheme of sought by the LEA. Delegation. School surpluses and deficits That Education Finance and Schools address the difficulties in identifying whether a school budget is in surplus or deficit. That the proposal to request schools to Schools have been required to explain "justify surpluses over 5%" be applied by surplus over 5% as at 31 March 2000. A full Education Finance. report has been presented to the Scrutiny Committee. That the following options need to be The Funding Regulations do not allow annual considered - funding to be revised on the basis of   The Formula requires annual revision  balances. The LEA is undertaking a full review of the funding formula in the light of based on unjustified surpluses / deficits  national developments. The review will greater than 5%.  commence this summer, with   Individual action in greater than 5%  recommendations implemented over the next cases also needs to be taken. Liaison on  2-3 financial years. this issue with Department for Education & Employment (Dfee), Association of London Government (ALG) and Local

Government Association (LGA) is called for; because we are hardly the only people with problems of this kind.   Authority should restore psychological balance by considering taking back powers in the case of a ‘surplus’ school, which is increasing its surpluses instead of diminishing them. Schools level LRM4 implementation and financial expertise Education Finance in its submission assured us that "the benefits that will flow from the system are significant". Headteachers and Governors have indicated to us that they have not found this to be the case. That clarification be given on how current is the LRM version introduced in our schools and whether there are any implications for training and support. We recommend that the LEA begin now to plan for update or replacement of the finance package in schools. This must include plans to provide initial training and also training for employees new to post. It must ensure that there is adequate support available. It must also examine the desirability or otherwise of using the same software as other Business Units throughout Lambeth council.

The LRM4 package used in schools is supported by the supplier, CAPITA. Along with many other LEA’s, the authority is developing a package to offer schools upgrade to LRM6. A pilot of 4 schools is commencing in April. The package will include training and installation. Ongoing support will be available through the Services to Schools arrangements. The SIMS package is specifically designed for use in schools, and is widely used in schools across the country. The system requirements of the LEA are different.

LONDON BOROUGH OF LAMBETH LEA ACTION PLAN INTRODUCTION BY THE EXECUTIVE DIRECTOR OF EDUCATION AND THE EXECUTIVE MEMBER FOR LEARNING AND SUPPORT

1. The attached action plan has been produced in response to the Ofsted/Audit Commission report on Lambeth LEA that was published in December 2000.

Coverage of the action plan 2. The action plan refers to the key issues and recommendations as highlighted in the Ofsted/Audit Commission report and sets out our proposals for addressing these areas. However, this by no means reflects the total of our response to the inspection report. Additional activities and priorities are being incorporated within the EDP review which is in the process of being finalised for year 3 of the 1999-2002 plan.

Monitoring and evaluation arrangements 3. Head teachers will have an important role in monitoring the implementation of the plan and evaluating its impact. Precise arrangements for each activity are set out within the plan, but the overall monitoring and evaluation will be done in three main ways. a. Through qualitative feedback from the Executive of Head Teachers’ Council at termly meetings with the education directorate management team; and through quantitative feedback from all head teachers derived from a school survey which will be carried out annually. b. Through quarterly reports to elected Members at Policy Committee on progress in implementing the plan and performance against the success criteria. c. Through detailed examination of particular strands of the plan by the Departmental Management Team to evaluate their impact and consider further actions as necessary.

LAMBETH ACTION PLAN: FINAL

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The next steps 4. Within the plan are many success criteria that will indicate how far the LEA is making progress along the next stage of the route. Six key outcomes are as follows. a. Achievement of Investors in People by December 2002. b. Launch of the ICT Strategy in April 2001. c. Number of schools in deficit to be reduced. d. School survey in Summer 2001 demonstrates continuing increase in school satisfaction across the range of LEA services including our methods for consultation. e. Establishment of new high quality secondary and post 16 provision in the borough. f. Further improvements in the proportion of statements of SEN processed within 18 weeks, including valid exceptions. 5. This remains a very challenging agenda. We are, however, confident that by working in partnership with all our stakeholders we can meet the challenge of continuing to raise standards for all pupils in Lambeth.

 MICHAEL PETERS TY GODDARD  EXECUTIVE DIRECTOR OF EDUCATION EXECUTIVE MEMBER FOR LEARNING AND SUPPORT

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Activity/ Recommendation Action Lead Officer A1) In order to develop a stronger focus on schools as customers: Improve communication Review models of business unit operation (Council and joint planning - internal •  To reduce the number of business units  wide and centralise at directorate level much  strategy) of the financial processing and checking functions whilst retaining the benefits of  DMT/ devolved responsibility.  Philippa •  To place more emphasis on robust  Robinson business planning and performance management. Investors in People Accreditation Jacinta Investing in staff training and development to Gasson - improve the delivery of excellent services to Mulcahy meet the needs of service users. Review cross-directorate working groups and Alison use of team meeting to ensure they have a Critchley clear purpose and ensure better information sharing. Introduce a staff newsletter Set up an editorial board. Jake Sumner First edition published, twice termly thereafter Develop internet/intranet site All relevant material on site and systems to Jake ensure that it is kept up to date. Sumner All forms for members of the public on Jake intranet for completion on line. Sumner Improve communication and Continue to reduce the number of requests Feyisa joint planning with schools for information from schools. Demie /Alison Critchley Implementation of recommendations from Elaine Year one of the customer care best value Peers review.

Improve communication and joint planning with schools

LAMBETH ACTION PLAN: FINAL

Time Monitoring Success Criteria/ Evaluation Resources Scale Targets Education Business unit changes Progress reports £50k to Financei a m cc pl o e u m nt e in nt g e   d p . r   o   c N e e d w ures in f d r i o re m c   t e o d r u at c e a , t   i Ii o P n support place and operational. assessors, and Investors in April 2001 external People. Achievement of Investors assessment team. in People by target date.  Officer time Feedback through  being met from Increased job satisfaction Champions.  existing December Diagnostic  for staff.  resources 2002 Assessment  Report to DMT. April/May 2001  Positive feedback received from the March Michael Peters  Education Champions. 2001 ongoing Staff report feeling better informed. March 01 Alison  Achievement of e- April Critchley  government objectives onwards by 2005. Dec 01 Alison Critchley April 02 Alison Critchley Termly Michael Peters Schools not asked for Positive feedback Officer time same information twice. from school being met from survey. existing resources. Feb 2001 DMT % of letters answered Via the quarterly Direct costs of onwards within 10 days increased Corporate RESPOND to 95%. Performance computer Digest to software and % of telephones Members. licence answered within 15 seconds increase to 95%.

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Activity/ Recommendation Action Lead Time Monitoring Success Criteria/ Evaluation Resources Officer Scale Targets Develop ways of consulting with schools and Michael Feb 2001 Alison Headteachers’ and Feedback from Costs to be met involving them in the Best Value Review Peters Critchley Governors engaged at Headteachers’ from existing Process. an earlier stage in the Council and resources. consultation process. Governors Forum Review and define the purpose and Michael March Alison Increased attendance at Feedback from membership of school working groups to Peters 2001 Critchley meetings. Headteachers’ ensure there is no duplication or overburden onwards Council and on schools. Governors Forum Implementation of ICT Strategy Chris April 2001 Michael Peters Launch of the strategy Feedback from Davies April 2001. school survey A2) In order to ensure services provided by external contractors meet the needs of the schools: Involve school Agree individual contracts between Team Sue Farr 1 Nitin Clear contractual Termly through Corporate representatives in Lambeth and schools where services are September Parshotam arrangements with monitoring reports investment in negotiating with Team purchased from delegated budgets, in 2001 prompt payment of new contracting Lambeth to clarify annual consultation with schools through the Planning invoices for agreed team. charges and increase the in Partnership Group and Resources services. 95% paid transparency of invoices to Committee of Headteachers’ Council. within contractual period schools. <5% disputed. Ensure the shortcomings of To strengthen the corporate contract Ged 1 Faith Corporate contracts Elected Members the Team Lambeth contract management capab eptember represent good value for are not repeated in future ility of the Council.Curran 2 S 001 Boardman money in meeting contractual arrangements. customer needs. Undertake Year 2 Best Value Reviews of Education For Best Value Reviews completed Reporting to Costs to be met Team Lambeth services, including education catering – completion Steering Group without adverse audit members. from existing catering, transport and cleaning and building Sue Farr. by comments. resources maintenance. Implement recommendations. Transport September – Sandra 2001 Morrison

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Activity/ Recommendation Action Lead Time Monitoring Success Criteria/ Evaluation Resources ’ OfficerScaleTargets B1) To develop confidence of the schools in the LEA s finance capability, as a matter of urgency: Clarify the role of the To produce a brief paper on the role and Philippa 31 May John Martin Schools understand role Termly report to Additional £40k financial monitoring team structure of the financial monitoring team for Robinson 2001 and responsibilities of DMT on schools allocated to discussion at Headteachers’ Council and financial monitoring delegated budgets Education circulation to schools via the bulletin and team, with 90% providing Finance to governors newsletter. Each school has a monitoring information by address financial named contact within monitoring team. due date. weaknesses Complete the review of the Agree revised structure and recruit to senior John 1 Michael Staff turnover in key Feedback from  identified in finance team and improve posts by 1 September. Develop strategy for Martin/ September Peters/DMT senior posts <40%. schools through  Ofsted report. the retention of key staff succession planning through staff training and Mary White 2001 Routine feedback from Headteachers’ development schools on quality and Council and other continuity of finance staff. groups. Ensure that procedures for Monitoring requirements developed in Philippa Monitoring John Martin 90% of schools provide Termly report to obtaining management discussion with schools through Robinson 1 April monitoring information by DMT on schools information on school Headteachers’ Council. 2001 due date. delegated budgets and expenditure are budgets. secure, accurate and agreed  A programme of meetings to be developed Philippa Meeting 31 John Martin 90% of schools provide Termly report to by schools  with school Senior Administrative Officers. Robinson July 2001 monitoring information by DMT on schools due date. delegated budgets. Feedback on value of Termly report to comparison. More DMT on school’s effective challenging of financial spending profile, monitoring. particularly for schools in Feedback from deficit. school survey June 2001

Use monitoring information Provide cost comparison data to SIMG and Philippa 30 Sept John Martin to provide feedback and individual schools on an annual basis as part Robinson 2001 comparative information for of school profile produced by Research and schools Information Unit.

B2) To improve financial management in schools Ensure that schools return •  Consult with Senior Administrative  Philippa 1 May the financial information  Officers and headteachers on difficulties  Robinson 2001 sought by the LEA  and issues on providing school returns. •  Establish and implement procedures for follow up of non submission of financial information.

LAMBETH ACTION PLAN: FINAL

John Martin

90% of schools provide Termly report to Additional £40k monitoring information by DMT on schools allocated to due date. financial Education monitoring. Finance to address financial weaknesses identified in Ofsted report.

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Activity/ Recommendation Action Lead Time Monitoring Success Criteria/ Evaluation Resources Officer Scale Targets Ensure that Transfer budget responsibility for schools that Tim On going John Martin Less than 10 schools in Quarterly report to headteacher and remain in budget deficit, with EAZ support.Coulsondeficit at March 2002.D f MT c   h o o n o   l n s u  in mber governors understand o de   f s icit . they are accountable to the LEA for the proper management of resources Include financial Develop a comprehensive training package on Mary September Michael Peters Headteachers and Quarterly report to Costs and financial management for headteachers and officers time to management as a deputy heads. Ensure that financial  White/ 2001 deputies are competent DMT on number  be met by criterion in the management is included in induction training. J M o a h rt n in in fi h n in a   ncia e l  ar m s a . nagement,o d f e   f s i c ci h t. ools in existing appointment and wit 3 y  resources competency of Incorporate financial management capability in Headteachers discharge headteachers person specification and job description in September their financial consultation with, school Governors, Trade 2003 management Unions and other relevant parties. responsibilities effectively. Reduction in proportion of schools in deficit. Train governors to Develop training packages for school Pat Petch Chris Ashton Less than 10 schools in Quarterly report to understand their governors at individual governing body level to and John Michael Peters deficit at March 2002. DMT on number responsibility for budgetary enable customisation to needs of particular Martin of schools in management and control school. Reduction in the number deficit. •  Trial training package  Feb 01 of schools with surplus •  Make amendments and finalise package  Summer exceeding 5%. •  Launch package  Autumn 01 B3) Replicate the school improvement and development division practice or targeted challenge and support and extend this to cover school financial management. Involve the financial •  Develop a set of criteria which will identify  John Summer Chris Ashton Less than 10 schools in Quarterly report to Officers time to monitoring team and SIDD  schools causing concern.  Martin 01 Michael Peters deficit at March 2002. DMT on the be met from in identifying and number of schools existing challenging all schools with •  School Improvement Management Group  Chris Autumn 01 Reduction in the number in deficit. resources. deficit budgets, poor quality  to include a review of schools where  Ashton of schools with surplus financial information and  financial issues are causing concern.  exceeding 5%. large surpluses. Reformat the financial Develop subscription package at two levels to John March Michael Peters More effective use of Feedback from advise SLA offered, as a offer to schools. Martin 2001 financial support service Headteachers and basic service with additional by schools. Governors. higher level support options B4) In order to ensure that the urgent recommendations regarding school finances of both the first inspection and those made in this report are acted upon:

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Activity/ Recommendation Action Lead Time Monitoring Success Criteria/ Evaluation Officer Scale Targets Once the improvements •  Request for the review to be included in  Alison Feb 01 Best Value Review completed with Report to sought have been secured,  the council’s Best Value programme.  Critchley Steering Group no adverse audit members. complete by 2003, a comments by target date. rigorous Best Value review •  Scope the review in Autumn 2002 and  By end of the school financial  carry-out review and implement  2003 monitoring and support  recommendations in 2003. functions in preparation for the subsequent external inspection of the review

Resources Officers time to be met from existing resources.

Resources £200,000

Activity/ Recommendation Action Lead Time Monitoring Success Criteria/ Evaluation Officer Scale Tar ets Recommendation E1: In order to ensure that secondary review plans are translated into appropriate action: Ensure that a clear timetable for the process is established and adhered   to. Secondary School places: Select bidder for PFI school. Phyllis June 2001 Michael Peters New school opens Project plan Replacement for Lilian Dunipace according to plan in agreed with Baylis School PFI close.PhyllisSeptember September 2002.pre d f   erred bidder Dunipace 2001  an progress Construction of school begins on site.PhyllisOctober E pu a p c i h ls     y a e c a h r  i 2 ev 0 e %  5 +  + o   f highers m t o a n g i e tored at each Dunipace 2001  grade GCSEs . Ensure the school provides high quality Phyllis 2001-2006 education during the transitional stage 2001- Dunipace 2006 when the new site will be full. Secondary school places: Obtain agreement of governors/headteachers Phyllis July 2001 Michael Peters Procurement and project If agreement to £190,000 Refurbishment of all other for refurbishment of sites to address Dunipace plans for relevant proceed, detailed secondary schools requirements for secondary places. schools agreed by programmes and If agreement Project teams established. Phyllis September  governors and staff. project plans will Dunipace 2001  be drawn up. High quality provision to Detailed project plan and programme of Phyllis January  contribu works.Dunipace2002 standard t s e     i t n o     s ra e i c si o n n g dary schools. Possible establishment of Work with DfEE to identify potential project Phyllis March Michael Peters DfEE approve plan for New school will be Resources for a City Academy in sponsor. Dunipace 2001 /DfEE City Academy in evaluated by DfEE project manager, Lambeth Clarify respective responsibilities of LEA, Phyllis April 2001  September 2001, and and Ofsted. capital and start DfEE, and sponsor in establishment of City Dunipace  Academy opens on time up costs and Academy. and in budget in revenue funding Identify site and resolve any legal and Phyllis Sept 2001  September 2003. Year 7 to be provided planning issues. Dunipace  full from opening. direct by DfEE. Liaison with management committee, DfEE Phyllis Ongoing project sponsors etc. to ensure new provision Dunipace is consistent with needs of local people and contributes to overall improvement in standards in Lambeth. LAMBETH ACTION PLAN: FINAL

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