Teachernet, Devolved Formula Capital

Name of programme/fund: Devolved Formula Capital Programme(DFC)
Guidance applicable to financial years: 2008-09, 2009-10 and 2010-11.
Total funding available 2008-2011: £2842 million (£990m in 2008-09, then indicatively £983m in 2009-10 and £959m in 2010-11).
Summary of purpose: To provide each school with its own capital money to address its own priorities.
Specific priorities for use of funding: New buildings and other facilities, including ICT, or capital repairs/refurbishment in accordance with priorities set by each school and in line with the local asset management plan. VA schools cannot spend the grant on playing fields or buildings on those fields.
Eligibility:
— VA, VC, Community and Foundation Primary and Nursery Schools
— VA, VC, Community and Foundation Middle Schools
— VA, VC, Community and Foundation Secondary and Upper Schools
— Academies, City Technology Colleges, Pupil Referral Units, Maintained boarding and hospital schools
— Maintained and non-maintained special schools
Method of payment: Capital grant. Academies, CTCs and Non-maintained Special Schools are paid on a quarterly basis directly by the Department. VA schools are paid twice-yearly, early in May and July. Maintained non-VA schools are paid through the Standards Fund via LAs. Academy payment arrangements: see letter.
Allocated by: Formula.
Formula for allocation (if applicable): See table.
Application process (if applicable): DFC payments technical note: see technical note.
Allowed flexibilities: Schools may set aside their allocations for up to three years to support a larger future project. It can be pooled with other schools, or with other LA funding following agreement between LA and school. VA schools may pool their funding with other VA schools through their diocese.
Additional monitoring and audit requirements: VA schools are asked at the end of each year to account for the expenditure.
Frequently asked questions (and answers):
Q — Why has it increase/decreased since 2007-08?
A — Changes result from increases or decreases in pupil numbers, and from the new methodology which classifies schools as modernised or unmodernised. It is fairer that unmodernised schools get more than modernised schools.
Q — My school is counted as 'modernised' — will we qualify again for the higher rate?
A — No. The government is making a massive investment to bring schools up-to-date. Once buildings are modernised, the school and local authority/diocese are expected to use their revenue and capital resources to maintain its property. The standard rate of DFC gives a school a fair allocation for ICT and important projects.
Q — My school became an Academy in September 2007 — how will I be paid?
A — For financial year 2008-09 only, the LA should transfer the amount of DFC to which the predecessor school would have been entitled. Arrangements are being put in place to pay Academies directly for 2009-10. Transitional 2008-09 arrangements are being notified separately.
Q — Can Devolved Formula capital funding be used for the purchase of school computer equipment?
A — Yes. But note that local authorities and schools have differing limits above which they capitalise expenditure, and central government does not intervene in this area. Schools should make the best use of the DFC and Harnessing Technology grant funding available to them to ensure that pupils have access to suitable ICT facilities.
Q — Why are Devolved Formula Capital allocations only provisional beyond 2008-09?
A — Because the DCSF aims to make final allocations for each year using the most recent pupil data. The formula set out above enables you to make an estimate of the Devolved Formula Capital your school will receive in future years, based on your expectations of pupil numbers and the current status of the school, i.e. whether it is deemed modernised or not. The Department aims to finalise 2009-10 and LA-level allocations as soon as possible once the January 2008 PLASC pupil numbers are available; 2010-11 allocations will be finalised using January 2009 PLASC data; it also plans to revise the 2010-11 allocations to take account of newly-modernised schools. The DCSF cannot yet announce further allocations beyond 2010-11, as this is a matter for future spending reviews.
Q — Does the school have to use its DFC for urgent / priority works?
A — It is reasonable for the local authority to expect a school to contribute DFC to projects. This should be agreed locally and set out in the asset management plan.
Contact details for queries not covered by the guidance: We anticipate most queries will be answered through the following routes.
— VA schools may wish to contact their diocese (where appropriate) for further advice, or the Department's VA Capital Team.
— Academies, CTCs and Non-maintained special schools should contact their DCSF team.
— All non-VA maintained schools should initially contact their LA.
If your query remains unanswered contact:
Schools Capital Enquiry Service
Telephone — 01325 391716
Email — schools.capital@dcsf.gsi.gov.uk
Website where more detailed guidance can be found: N/A.