05. Budget calculation - Secondary

The roll will include all pupils in the school, including integrated Additional Support Needs (ASN) pupils and adults in mainstream classes expressed as student FTE.

Teaching staff entitlement
The application of the formula contained within the table below will provide the school with a staffing entitlement. This includes a ring fenced staff allocation for additional support needs.

Formulae:

School roll >299 - Teachers = 9.8505 + 0.056715 x roll
School roll 210-299 - Teachers = 15.3827 + 0.038507 x roll
School roll 1 - 210 - Teachers = 4.6168 + 0.089451 x roll

Teaching staff budget allocation
The annual teaching staffing budget entitlement will be calculated on roll information as follows:

The initial staffing entitlement budget is based on the September school roll census figure reported to the Scottish Executive in the previous year.
A new staffing entitlement budget is calculated in the autumn when the corresponding school roll census figure for the current year is known.
The revised staffing entitlement budget for the financial year is based on one-third of the initial figure plus two-thirds of the entitlement figure calculated in the autumn.
The corresponding information for Pre School will be based on the current January roll figure at the time the budgets are being calculated.

The monetary value of the staffing budget (including Employer’s Contributions for National Insurance and Superannuation) provided for all staff, will be based on the salaries of the actual staff in post during the month that the budgets are being calculated. If any basic grade post is vacant when the budgets are being calculated, this will be funded at the top point on the basic grade teaching scale.

The budget for Principal Teachers will be based on the basis of the information contained below. With respect to any acting promoted posts these will be funded at the level of the job-sized post. If any basic grade post is vacant when the budgets are being calculated, this will be funded at the top point on the basic grade teaching scale.

Posts out-with the DSM staffing formula
The teaching entitlement formula will be supplemented in exceptional circumstances by additional posts agreed by the ECS directorate. These posts will be reviewed annually as part of the budget setting process.

National Insurance and Pension Contributions
There is no adjustment to the budgets for Employer’s National Insurance and Superannuation Contributions at the end of the financial year. This rule applies to all devolved staff, including non-teaching.

These budgets are based on a percentage of the individual Basic Pay budgets. As at April 2006 this combined figure was on average 20.5% of Basic Pay.

Promoted Posts (Head Teachers and Depute Head Teachers)
The budget will provide for promoted posts in accordance with the table below.

ROLL	HT	DHT
1-100	1	1
101-200	1	1
201-300	1	1
301-370	1	2
371-556	1	2
557-600	1	2
601-742	1	3
743-900	1	3
901-928	1	4
929-1114	1	4
1115-1200	1	4
1201 +	1	5

Promoted Posts (Principal Teachers)
The allocation of Principal Teacher (PT) budgets is exemplified below.

School	School Roll	Teaching FTE including ASN unit	PT posts (at 1-8)	PT Support Posts (at 1-200)	Total FTE Entitlement
A	1,076	77.92	9.74	5.38	16.00
B	683	52.74	6.59	3.42	10.00
C	239	29.56	3.70	1.20	5.00

Total Teaching FTE includes all teaching staff on the school campus for whom the Head Teacher has operational management responsibility.

PT Posts (at 1-8). This calculation is based on the total teaching FTE divided by 8 to the second decimal point.

PT Support Posts (at 1-200). This calculation is based on the total school roll divided by 200 to the second decimal point.

The PT budget allocation is based on the total FTE entitlement, rounded up to the next whole number, times the scale point 5 on the job-sized PT salary scale. For those schools which have not completed their new management appointments the funding provided will be based on the number of new PTs appointed times scale point 5 on the job-sized PT salary scale. All remaining posts will be funded on an actual cost basis.

The above arrangements should be regarded as an interim arrangement as schools move towards new structures. There will be a review of the current arrangements in due course.

Further paragraph to be inserted covering issues relating to:

The relative impact of deprivation when sizing PT faculty posts
The transition from the current formula driven budget allocation to a model aligned to funding actual staff in post taking into account the impact of the original arrangements!!!!

Chartered Teachers
A main-grade teacher can elect to become a Chartered Teacher by undertaking a series of GTC approved modules. In total there are 12 modules and the teacher receives an increment on the Chartered Teacher salary scale for every 2 modules completed. An increment should be paid from the first of the month following the date of the letter received by the authority confirming that the Teacher has passed the relevant modules. At that time the appropriate adjustment will be made to the school’s devolved budget.

Surplus Posts
Where the Head Teacher has identified surplus posts available for transfer and their continuation is due to the Authority’s inability to arrange a suitable transfer then the post would be expected to contribute to Supply Cover arrangements and/or Management Time/CCR arrangements.

No funding will be provided to the school directly for the surplus post(s). Instead the following arrangements will apply:

The school will receive the full Supply Cover allocation – that is element A which is funding equivalent to 2% of the teaching entitlement FTE plus element B which is the appropriate allocation of funding from the long term absence/maternity cover allocation.
The surplus Teacher’s basic pay costs will initially be charged to the school’s devolved budget.
During the course of the financial year expenditure equivalent to 75% of element A calculated above will be transferred from the Teacher’s basic pay (plus Employer’s on-costs) to the school’s Supply Cover budget headings.
If any expenditure relating to the surplus Teacher remains within the devolved Teacher’s basic pay budget, then it ought to be transferred to the appropriate centrally funded cost centre.

During the course of the financial year if an Area Education Manager has identified a suitable vacancy for the surplus post-holder then the remaining proportion of that budget will be transferred.

Ring fenced ASN staff allocation
For ASN Departments the core allowance is contained within the basic formula as set out below.

ROLL	POSTS
1-50	0.25
51-200	0.50*
201-400	1.0
401-600	1.5
601-1,000	2.0
1,001-1,200	2.5
1,201 +	3.0

* this is a maximum figure and will vary from 0.25 – 0.5 in proportion to the number on the roll between 51 and 200.

Gaelic Medium Education
Where a school offers Gaelic medium education, an additional staffing allowance will be negotiated based on the range of subjects offered through the medium of Gaelic.

Supply Cover Budgets

All Secondary schools will be responsible for containing their Supply Cover costs within their agreed budget. This budget may be supplemented during the course of the financial year by an allocation of government initiative funding.

Basis of budget allocation
The teachers’ Supply Cover budget is calculated on the following basis:

2% of the agreed devolved teaching quota (expressed in FTE).
A weighted allocation of the centrally held budget for maternity/paternity pay and long term sickness.
Supply Cover will be funded at the second top point on the teacher’s basic grade salary scale.

Additional budget allocations at financial year-end
Whilst all schools receive an increased budget allocation for long term absence and maternity/paternity cover, it is recognized that in certain circumstances exceptional expenditure may be incurred. Under those circumstances where a school has overspent its teachers’ Supply Cover budget (including Employers Contributions for National Insurance and Superannuation) by more than a pre-determined percentage the school will receive an allocation of supplementary funding. The percentage banding is:

All Secondary schools 20% overspent

The determination of this percentage overspend will be based on a direct comparison between the Supply Cover budget and related actual expenditure (including Employers Contributions for National Insurance and Superannuation) as contained in the financial ledger at the year end. It is essential that all Supply Cover expenditure relating to Government Initiatives has been matched by an appropriate allocation of funding. The level of any top-up funding will be calculated on the following basis:

Supply Cover budget at financial year-end £45,000
Supply Cover expenditure at financial year-end £59,000
Overspend per ledger £14,000
Overspend to be met by school ( 20% of budget ) £9,000
Level of top-up funding provided £5,000

Centrally funded Supply Cover
It is recognized that certain categories of teaching Supply Cover are funded centrally. A definitive list of the reasons for teachers’ Supply Cover, differentiating between those items to be funded from devolved budgets and those items to be funded centrally, is appended as Annex 4B.

A school based system which provides a full analysis of reasons for Supply Cover is made available to the relevant financial support officer at the end of each month. This information is used to process the necessary adjustments to the school’s Supply Cover expenditure.

Maternity/Paternity Cover/Long Term absences

The following accounting procedures should be adhered to when a member of the Teaching staff is absent either on maternity/paternity leave or long term illness:

Maternity Leave

During the first 6 weeks of maternity leave the Teacher receives 90% of normal pay from the Council with the remainder being topped up by Statutory Maternity Pay ( SMP ) provided by central government.
During the next 18 weeks of maternity leave the Teacher receives 50% of normal pay from the Council with the remainder being topped up by SMP provided by central government.
Thereafter the Teacher receives no pay from the Council and relies wholly on SMP

Where Supply Cover costs are incurred the difference between the individual’s budgeted employee costs and the actual salary paid to that individual should be transferred from Supply Cover expenditure to Permanent Teachers expenditure (including Employers Contributions for National Insurance and Superannuation).

Long Term absence

After 6 months absence a Teacher’s salary will normally be reduced to 50%
After 12 months absence a Teacher’s salary will normally be reduced to nil.

During the course of a long term absence, the same expenditure transfers as for maternity cover detailed above should be processed at the end of each month.

Seconded Posts

Seconded posts can be funded from 2 sources:-

Where an employee is seconded to, say the Executive, the normal practice is that the employee’s salary should continue to be charged to their normal work base and that these costs are recovered by invoicing the Executive. This invoice will be raised by the school’s financial support officer.
Where an employee is seconded to, say an ECS post funded by government initiative grant funding, the normal practice is that the salary costs of the person seconded will be charged to the appropriate cost centre containing the grant funding. The replacement costs will be charged to the cost centre containing the seconded person’s substantive budget.

Non Teaching Staffing Budgets

Method of allocation
Different staffing formulae will apply to different categories of staff. The budget at the start of each financial year will be based on the school roll census data from the previous September. This budget will be adjusted during the course of the financial year when the school roll census data for that year is available based on one-third of the original school roll and two-thirds of the revised roll. The staffing budgets ( including Employer’s Contributions for National Insurance and Superannuation ) will be based on the actual staff in post at the time that the budget is calculated. In addition the staffing budgets will be based on the contracted conditions of each individual in post, in particular in relation to holiday pay entitlements which vary with length of service.

Head Teachers will be allocated funding on the basis of the under-noted formulae entitlements. However they have the flexibility to vary the mix of designations in order to meet the particular support staff needs within the school.

General absence cover will be funded by the schools from other devolved budgets but in the case of long term sickness, each case will be considered on its own merits by the Area Education Manager.

The staffing entitlements for new schools constructed with funding provided by the Private Public Partnership ( PPP ) agreement vary in certain instances from the formulae out-lined below. The detail of staffing entitlements in those schools is contained within the separate chapter on PPP schools.

Administrative Assistants
Each Secondary School is entitled to a 1.00 FTE Administrative Assistant calculated on the basis of 52 weeks and 35 hours per week.

Clerical Assistants
Each Secondary school is entitled to a minimum of 0.7 FTE calculated on the basis of 41 weeks plus holidays and 35 hours per week. This will be increased to 1.0 FTE where the roll is between 151 and 175 and 1.2 FTE for rolls between 176 and 300. For schools with a roll in excess of 300, the entitlement will be the school roll x 6\1170.

Dining Assistants
Existing posts will only be retained until normal retirement or resignation of the existing post holder. Following such an event no replacement would be appointed unless the school in question is prepared to provide the necessary funding from within its own budgetary resources. Head Teachers should ensure that prior to any such decision being made that the necessary funds are available to meet the total costs of such an appointment

ICT Technicians
Each of the under-noted entitlements is based on 52 weeks and 35 hours per week.

School Roll FTE entitlement

Up to 399 0.50
400 and over 1.00

Laboratory Technicians
Each of the under-noted entitlements is based on 52 weeks and 35 hours per week.

School Roll	FTE Entitlement
Up to 200	0.50
201 to 300	0.75
301 to 400	1.00
401 to 600	1.25
601 to 650	1.50
651 to 700	1.75
701 to 800	2.00
801 to 900	2.25
901 to 1,000	2.50
1,001 to 1,050	2.75
1,051 and over	3.00

Librarians
This is only applicable to a school with a roll in excess of 300 pupils and 1.00 FTE will be funded at actual cost depending on whether a Chartered Librarian is available or a Qualified Librarian has been employed.
The exceptions to this formula are:

Glenurquhart High School which will be funded for 0.5 FTE.
Gairloch High School and Ullapool High School both of whom house community Libraries. Funding entitlements are included within the Service Level Agreement drawn up in conjunction with the Integrated Library Service.

Janitorial staff
All Secondary schools will receive a minimum of 1 FTE calculated on the basis of 52 weeks appointment for 37 hours per week. Some janitorial contracts contain an historical element of contractual overtime.

This entitlement to contractual overtime is not transferable to successive post-holders when, for example, retirement or resignation occurs.

The entitlement will increase to 2 FTE for schools with a roll in excess of 250 and the above conditions will apply. The Council has recognised that Secondary schools with extensive community use will be entitled to a third janitor with elements of this provision shared with Primary schools as agreed with the Area Education Manager.

Janitorial overtime will be devolved from 1st April 2007 subject to consultation with stake-holders and also the approval of the ECS Committee.

Long term absences
General absence cover will be funded by the schools from other devolved budgets but in the case of long term sickness, each case will be considered on its own merits by the Area Education Manager.

Scribes and invigilators
All costs relating to scribes and invigilators for the SQA diet of exams in the summer term must be recovered directly from the SQA. It is the responsibility of the respective schools to ensure that the recovery of these costs is carried out. Under no circumstances will these costs be borne by the Highland Council

For scribes and invigilators used for any other examinations the relevant costs should be charged to the school’s devolved budget. There are no exceptions to this rule.

Non Staffing Budgets

Electricity
The budget allocation is based on the most recent consumption figures and the estimated unit cost for the subsequent year, both provided by Property and Architectural Services.

Electricity bills are processed centrally as part of the Council’s central billing policy. However in order to ensure that this budget is controlled satisfactorily details of the electricity charges to individual schools will in future be sent electronically to Head Teachers. In addition consumption details over a period of time can be supplied on request by the ECS Finance Unit

The Council has an Energy Management Group to oversee a reduction in Energy consumption across all sites. A combination of changing existing practices by individuals and investment in buildings will help achieve this objective.

Gas
The budget allocation is based on the most recent consumption figures and the estimated unit cost for the subsequent year, both provided by Property and Architectural Services

This budget heading covers both mains gas and all bottled gas except oxyacetylene for technical departments which should be funded from the school’s Capitation budget

Gas bills are processed centrally as part of the Council’s central billing policy. However in order to ensure that this budget is controlled satisfactorily details of gas charges to individual schools will be sent electronically to Head Teachers. In addition consumption details over a period of time can be supplied on request by the ECS Finance Unit.

Oil
The budget allocation is based on the most recent consumption figures and the estimated unit cost for the subsequent year, both provided by Property and Architectural Services

Oil bills are processed centrally as part of the Council’s central billing policy. However in order to ensure that this budget is controlled satisfactorily details of oil charges to individual schools will be sent electronically to Head Teachers. In addition consumption details over a period of time can be supplied on request by the ECS Finance Unit.

Water
All Water charges, measured and un-measured, are charged to schools’ devolved budgets. The budget allocation is based on the most recent consumption figures and the estimated unit cost for the subsequent year, both provided by Scottish Water.

On the basis that there is now a procedure for dealing with extraordinary charges (outlined below) Head Teachers must not unilaterally withhold payment of Scottish Water bills.

Water bills are processed centrally as part of the Council’s central billing policy. However in order to ensure that this budget is controlled satisfactorily details of water charges to individual schools will be sent electronically to Head Teachers. In addition consumption details over a period of time can be supplied on request by the ECS Finance Unit.

Extraordinary expenditure
It is possible that from time to time school reports will high-light instances of schools suffering extraordinary expenditure on utility charges, for example unusually high metered water or electricity charges. In order to formalise how such occurrences are dealt with the following procedure should be followed:-

The standard form for notification of extraordinary charges (appended as Annex 4A - Word document) should be completed
This document should be submitted to the Principal Accountant who will be responsible for progressing matters with the ECS Resources Manager
The Principal Accountant is responsible for monitoring progress with the investigation and reporting back to the Head Teacher concerned within 30 days of notification via a formal school financial report
Under no circumstances should a Head Teacher unilaterally decide to withhold payment in respect of a Scottish Water invoice

If the above investigation proves conclusively that a school has suffered excess utility charges as a result of factors out-with its immediate control then the following financial arrangements will apply:-

20% over-spent – budget top-up

It should be noted that the above arrangements do not apply to periodic price increases applied by the utility companies.

Building Cleaning
The budget allocation for this service is based on the current contract price applied to the floor area to be cleaned and the frequency of cleans. Although the major elements of the contract are fixed centrally Head Teachers have the ability to negotiate minor changes.

If the Head Teacher elects to apply additional cleans this will require to be funded from existing devolved budgets since no extra funding will be made available.

The Head Teacher, or his/her nominee, should report any service inadequacies to the Cleaning Manager who will investigate the complaint and take the appropriate action.

Property Repairs and Maintenance
The chapter on Property matters details the respective landlord and tenant responsibilities in relation to property repairs and maintenance.

The school will be responsible for day to day repairs to the property which must have first call on this budget allocation. However, where resources permit schools may allocate funding to small scale internal improvements, internal decoration, curtains, floor coverings etc.

The budget allocation will be based on a formula which comprises the following elements:-

The age and condition of the school building
Floor area
School pupil roll

For new schools, or schools which have major extensions, the repairs and maintenance budget will be restricted to 50% of the above figure for the first 5 years of operation.

Each school will have a designated representative from Property and Architectural Services who should be consulted by schools in relation to appropriate works funded from the devolved budget. The age and condition of properties will be allowed for separately in the Council’s planned maintenance programme.

Property and Architectural Services will supply the names of suitable contractors and make these names available on the Council’s Intranet system (Link to be inserted). If a school elects to use other contractors the Head Teacher will be required to arrange for checks of the above nature prior to the placing of any works order

The Council, through its Health and Safety Unit and Property and Architectural Services, will offer advice on any Health and Safety implications or other relevant regulations. Head Teachers are obliged to consult these agencies as appropriate in advance of the commencement of any work where issues of this nature arise. The Council' Policy on control of Asbestos can be accessed from this link

Capitation
The Capitation budget allowance is a general budget covering the following specific budget headings:-

Description	Expenditure Code
Medical Examinations (Staff)	AE1006
Waste disposal/Skip Hire	BH1004
Pest control expenses	BH1007
Cleaning materials	BH1001
Education travel	CC1000
Equipment purchase	DA1000
Science Equipment	DA1550
PE equipment	DA1601
Equipment repairs	DA2040
Medical Supplies	DA4014
Toiletries	DA4020
Classroom Supplies	DA4550
Arts & craft supplies	DA4551
Woodwork/metalwork supplies	DA4552
PE supplies	DA4553
Musical supplies	DA4554
Scientific Supplies	DA4555
Home Economic supplies	DA 4556
Furnishings	DA5000
Office furniture	DA5010
Classroom furnishings	DA5020
Meals & hospitality	DB3010
Stationery	DD2000
Reference Materials	DD2001
Photocopy-leas charge	DD3000
Photocopy-number of copies	DD3001
Text books	DD4001
Computer supplies	DF1001
Computer discs	DF1004
Computer maintenance	DF3000
ICT charges (Fujitsu)	DF4001
TV Licences	DF6001
Postages	DF7000
Landline telephones	DF9000
Telephone - staff	DF9060
Subsistence	DG4000
Subscriptions to Orgs	DH3100
Advertising General	DK1000

Budgets will be initially allocated to the Text Books expenditure code (DD4001) and may thereafter be allocated to the appropriate budget heading. It is imperative that the actual expenditure is recoded against the appropriate expenditure code.

The budget allocation is based on an agreed amount for each school plus an allowance per pupil. The budget will be based on the school roll census figures from the previous September. The roll will include all pupils in the school. The Secondary School sector allocation as at April 2006 is based on the following:

School allowance £8,016.84
Per pupil allowance £98.49
Secondary SEN allowance £306.11
Per pupil allowance £101.57

Exam Fees
SQA examination fees will be funded on an actual expenditure basis. The justification for this being that no school should benefit from or be penalised for the number of pupils being submitted for SQA examinations.

Vehicle Provision and Maintenance
Any school wishing to operate their own vehicle must enter into a Service Level Agreement (SLA) with TEC Services.

SLA’s are instigated by the prospective hirer (the school) completing a New Vehicle Requisition (NVR) form. This form can be obtained from Fleet & Maintenance Management, TEC Services.

All vehicles, either leased or purchased, remain the property of Highland Council.

When the necessary forms are completed and the vehicle provided, then the school is responsible for all charges levied against the vehicle, as per the SLA. This includes purchase price, or lease charges, maintenance costs, insurance and running costs (including petrol/derv), for the entire time the vehicle is in the possession of the school. These charges will be levied by Fleet Management to the school, and will be charged to the financial code, provided by the school to TEC Services.

Fujitsu hardware and software
When a school acquires hardware/software from Fujitsu the following budget deductions are processed and will remain in place in perpetuity:

Service provided in Quarter 1 of financial year – budget deduction in year is 75% of annual figure
Service provided in Quarter 2 of financial year – budget deduction in year is 50% of annual figure
Service provided in Quarter 3 of financial year – budget deduction in year is 25% of annual figure
Service provided in Quarter 4 of financial year – budget deduction in year is nil.

In the following financial year the remaining proportion of the budget will be deducted thereby completing the 100% budget deduction.

Refuse Collection
Refuse Collection budgets will be devolved with effect from April 2007, subject to ECS Committee approval. This is to encourage Head Teachers to re-cycle more of the waste material generated in the school and to minimize the waste deposited in the refuse collection bins.

Budgets will be allocated on the basis of the school roll and it will be for Head Teachers in conjunction with their local TEC Services contact to agree the appropriate capacity of the bins allocated to the school.

As a result of the above change it is essential that kitchens take responsibility for their own re-cycling and waste disposal arrangements.

Rates
Rates budgets and related expenditure will be devolved with effect from April 2007, subject to ECS Committee approval. The budget allocated will equate to the actual Rates charge for the year ahead. As a result no school should gain or suffer loss as a result of this change.

Insurances
Insurance budgets will be devolved from April 2007 subject to ECS Committee approval. This includes Property, Employer’s Liability and where appropriate Vehicle Insurances.
The budget allocated will equate to the actual Insurance premiums for the year ahead. As a result no school should gain or suffer loss as a result of this change.

Grounds Maintenance
Grounds Maintenance budgets will be devolved from April 2007 subject to ECS Committee approval. These budgets will be based on a Service Level Agreement agreed with TEC Services. The opportunity will also be taken to clarify under what circumstances Head Teachers can opt out of any agreement with TEC Services. The DSM Manual will be updated when there is progress with both of the above issues.