FR1

Section 5a

Application for Approval of Redundancy Costs for Essential Redundancies

KCC approval to meet the cost of redundancies will only be given where the redundancies are necessary due to budget constraints. Any other redundancy and early retirement (on redundancy grounds), the cost must be met by the school.

Definition of budget constraints

·  The school will go into deficit and remain in that position if there is no reduction in staffing cost.

·  Reserves are reduced to a level which would result in the school not being sustainable in financial terms. An in year deficit is not necessarily assessed as being a financial reason if this is caused by one off expenditure or if there is not a continuous trend of in year deficits.

To enable KCC to make an “in principle” decision, the school must meet the criteria stated in these guidelines. Please note the redundancy process has very clearly defined deadlines and if the requirements listed below are not adhered to then this could result in a delay in the process and the planned redundancy. In turn this could lead to the school incurring additional cost.

Please review your budget in line with Step 1 within Section 5 of the Financial Controls “Guidance for Schools in Financial Difficulty” which sets out KCC’s requirements. If it is determined that redundancies are still required due to budget constraints the Headteacher should then contact Schools Financial Services. The following documents will be required to be submitted/available for viewing on BPS.

1.  Application for Approval for Payment of Redundancy Costs in a Kent Maintained School (Section 5a, Form FR1) , all sections completed

2.  Governing Body minutes where the budget constraints and possible action have been discussed

3.  A 3 Year Budget Plan prior to any staff changes or any other savings, which clearly shows that the school is forecasting a deficit

4.  A 3 Year Budget Plan post management action showing a return to a balanced budget and ensuring that the school is in a sustainable position after the reductions are made (please use naming convention ‘SiFD Budget Forecast dd/mm/yy’ if using BPS)

5.  Salary Calculations (Employee scenario on BPS or equivalent)

Please note the Budget Planning Software will provide the data for 3, 4 and 5 by identifying pre and post action scenarios which show the deficit and the revised figures. For 2016/17 budget setting process BPS will not include the previous year’s outturn figures; however Schools Financial Services will refer to this data. Any queries please contact Schools Financial Services.

The Application for Approval for Payment Form FR1 along with all other documents listed should be e-mailed to Schools Financial Services at:

s and start the subject with the word Support.

Exceptions for the LA funding Redundancy/Early Retirement

The costs arising from redundancy/early retirement of school based staff may be funded centrally by the LA, in accordance with the relevant legislation. Exceptions to this are:

·  Where the school is making staffing reductions which the LA does not believe are necessary to either set a balanced budget or meet the conditions of a licensed deficit

·  If a school has decided to offer more generous terms than the authority’s policy, then it would be reasonable to charge the excess to the school

·  If a school is otherwise acting outside the LA’s policy

·  Where the school has excess surplus balances and no agreed plan to use these

·  Where the school has failed to make reasonable attempts to redeploy ‘at risk’ staff within the school

·  If the only cause of the revenue deficit is due to the school making a revenue contribution to capital. The only circumstances that this would be agreed would be if there was an outstanding capital loan and the amount contributed was equal to or less than the shortfall in the loan repayments

·  Where staffing reductions arise from a deficit caused by factors within the school’s control. This could be demonstrated by a school that has previously submitted a 3 Year Plan or monitoring which indicates management action is required in the next two years but makes decisions which contribute to the deficit. For example appointing permanent staff or authorising a building project

Any criteria listed above is in addition to and not contradictory to Personnel requirements or the guidance given by Schools Personnel Service (SPS). Personnel Service providers other than SPS must also adhere to the criteria.

Recovery of Funds

Please note that for the two financial years after the redundancy the LA will consider whether the financial circumstances of the school have improved or if staffing costs increased post redundancies. If it is shown that the cost could have been borne by the school then the funding will be reclaimed and returned to the centrally held budget to allow other schools to access this funding.

Personnel Services

Please be aware that if your school does not buy personnel services from Schools Personnel Services or any other recognised personnel provider, then we will need to verify your redundancy calculations before reimbursing the agreed funding. This will be a chargeable service incurred by the school. Please inform us as soon as possible if this service is required, as late notification could result in a delay in funding being advanced.

Early Retirement Pension Costs

If the Application for Approval of Payment of Redundancy Costs is successful then any associated Pension costs relating to Early Retirement will also be met by the LA.

APPLICATION FOR APPROVAL FOR PAYMENT OF REDUNDANCY COSTS IN A KENT MAINTAINED SCHOOL

School Name: DfE No:
School Designation: Community/Foundation/Voluntary Aided/Voluntary Controlled
Headteacher Name:
Headteacher’s Email Address:
Contact e-mail address: Telephone Number:
Contact Name:
e.g. School Business Manager
Details of Personnel Provider:
Does School Financial Service have permission to liaise with your provider:
Consultation Start Date:
Have Schools Personnel Services been contacted:

KCC Approval to meet the costs of redundancies will only be given where the redundancies are necessary for financial reasons. Any other redundancies and associated early retirement costs must be met by the school. To enable KCC to make an 'in principle' decision, the documents below must accompany this application:

☐ / Redundancy / Restructuring Rational Pro Forma see below. Schools will need to evidence that the redundancy situation is due to budgetary constraints
☐ / Governing Body minutes where the budget constraints and possible action have been discussed
☐ / Salary details if not using BPS software
☐ / Last approved staffing structure and proposed staffing structure
☐ / Original 3 year plan prior to any staff changes or any other savings
☐ / Revised 3 year plan showing the savings to be achieved through redundancies or any other savings made (assuming KCC is paying the redundancy cost)
☐ / A copy of the KELSI School Funding Template in line with the last approved budget
☐ / A copy of the KELSI School Funding Template that shows revised future pupil numbers, based on local knowledge
☐ / By ticking this box you authorise Schools Financial Services to access BPS

This form with all of the above documents should be sent from the Headteacher’s e-mail address to: and start the subject with the word ‘Support’.

You will be notified of ‘in principle’ decision, to the Headteacher’s e-mail address within 20 school working days of SFS receiving all the completed supporting documents listed above.

Redundancy / Restructuring Rationale Pro Forma

Date restructure to be effective from:

Rationale for the need for staff reductions

Please outline below a brief summary to support the data provided, clearly showing the need to make staff reductions and the factors that have led to this situation.

Current Position:

Impact on Future Curriculum / Operational / Organisational Needs of the School:

Changes Proposed:

Savings Needed:

Please specify the total value of savings the school needs to achieve; this should agree with the Management Action data

Proposed staff reductions

Please outline below the numbers and categories of staff that it is proposed may be dismissed as redundant.

Proposed Date
of Redundancy/or change / Job Title / Number of posts / Hours / FTE
Teaching Staff
Support Staff
Temporary contracts to be ceased
Other non-staff savings

Other staff changes proposed

Please outline any other staff changes that are proposed – e.g. change in hours / grades / creation

of new role.

If new roles are proposed please attach job descriptions for these.

Budgetary information

Please provide details of the school budget position for the last year, the up to date figures for the current year and forecast for the forthcoming year in the table below. The figures should reflect the amount if no action is taken, if the school is forecasting a deficit please state amount: / Last year
April 2016 - March 2017 / Current year
April 2017 - March 2018 / Forthcoming year
April 2018 - March 2019
Teaching staff costs
(E01, E02, E26, E31)
Support staff costs
(inc Cleaning/Catering in-house E03, E04, E05, E06, E07)
Utilities
(E15, E16, E17)
Equipment/stationery
(E19, E20)
Other costs
(E08, E09, E10, E11, E12, E13, E14, E18, E21, E22, E23, E24, E25, E27, E28, E29, E30, E32)
Reserves c/fwd

Please attach relevant reports / forecasts to support budget situation outlined above.

Staffing information

Please provide details of the school staffing position at the start of each of the academic years by completing the table below.

September 2016
(staff / FTE / hrs) / September 2017
(staff / FTE / hrs) / September 2018
(staff / FTE / hrs)
Permanent teaching staff
Temporary teaching staff
Permanent support staff
Temporary support staff

Please attach a list of those staff and job titles likely to be affected by the restructure proposals

Pupil Numbers

Please provide details of the number on roll at the start of the last academic year, this academic year and the anticipated intake for the following years by completing the table below.

September 2016 / September 2017 / September 2018 / September 2019
Year R
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Post 16

Avoidance Measures

Please outline any steps taken to avoid a potential redundancy situation

Proposed criteria for redundancy selection

Please outline proposed selection method – e.g. audit / interview etc.

If an audit process is proposed please attach audits if available

Funding of Redundancies

If Maintained School – do you wish to seek approval from the Local Authority Funding of any redundancies? Y / N

Have you completed the Approval for Payment of Redundancy costs form Y / N

Please note:

The Local Authority will only fund redundancies where these are necessitated by budget constraints. Any Local Authority funding is subject to the school receiving early approval in principle and final approval of the actual redundancy and pension costs.

For an Academy the responsibility for the costs of a redundancy payment and pension costs will rest with the Academy

Additional Information

Will you be following the agreed redundancy process as set out in the KCC Procedure for Redundancy and Redeployment in schools?

Y / N

Will you be adopting the procedures for calculating the amount of any redundancy payment as set out in the KCC Procedure?

Y / N

Has an Equality Impact Assessment been undertaken?

Y / N

Redundancy Sub Committee

Please provide the names of the three Governors on the Redundancy Sub Committee Panel

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Reviewed June 2017