To reply please contact:
Bob Corrigan/Stephanie Renwick
Telephone: 0161 234 7055/7403
To: Headteachers of all schools Textphone: 0161
Fax: 0161 234 7402
Date: 27 April 2009
Circular no: 193
Alert status: RED
Title: Devolved Formula Capital Allocations to Schools (DFC) – 2009/10
Contact officers: Bob Corrigan or Stephanie Renwick
Devolved Formula Capital Allocations to Schools (DFC) - 2009/10
Attached is a schedule indicating the 2009/10 allocation of Devolved Formula Capital (DFC)
available to nursery, community and voluntary controlled schools, together with provisional
allocations of DFC for 2010/11, 2011/12 (existing Academies will receive separate notification of
These allocations reflect:
i) The arrangements indicated by the Department for Children, Schools & Families (DCSF)
on 10th October 2007, for calculating amounts of DFC to be allocated to schools. There
is now a standard rate of DFC for schools classified as modernised, which is half the rate
for an unmodernised school.
The standard and higher rate allocations are based on the school buildings survey data
initially collected by the DCSF from the authority in April 2007 and verified in July 2007.
Any school (including Academies) modernised since 1997/98, having had either all new
premises or 80% of the school on a floor area basis, new or renewed, has from 2008/09
moved on to the new standard rate of DFC.
ii) When DCSF classify schools/Academies as modernised they will remain on the new
standard rate of 50% of the un-modernised rate. Under the current rules it is not
anticipated that there will be a point when the school will revert to the higher rate.
iii) High schools becoming Academies from 1 September 2009 will receive 5/12ths of the
2009/10 allocation with 7/12ths being passed by the authority to the Academies.
iv) High schools becoming Academies from 1 September 2010 will receive 5/12ths of the
2010/11 DFC allocation with 7/12ths being passed by the authority to the Academies.
The authority will need to agree with any school that is to close during the year or is in the
process of having a new school building constructed, whether devolved formula capital is to be
provided. It may, for example, be appropriate to remedy defects to facilitate disposal of the site.
The authority has the discretion to re-allocate between schools, on a fair basis, any funding
released from closing schools, and it is the authority’s responsibility to manage in year
adjustments of this nature. If a school is moving out of the Local authority funded sector,
guidance will be sought from the DCSF as to the allocation of grant.
DCSF has prescribed the basis on which the amount of formula capital to be devolved to each
school will be calculated. This comprises of per pupil and lump sum elements, the value of
which reduces by 50% when a school moves from Un-modernised to Modernised status.
Devolved Formula Capital Allocation Formula
Un-modernised school (HIGHER RATE) Modernised school (STANDARD RATE)
Per Per Per Per Per Per Per Per
School Secondary Primary Special School Secondary Primary Special
Pupil Pupil School or Pupil Pupil School or
£ £ £ £ £ £ £ £
18,500 94.50 63.00 189.00 9,250 47.25 31.50 94.50
Pupil numbers (FTE) for the 2009/10 allocations have been derived from the annual school
census in January 2008. Details of each school’s allocation (nursery/community/voluntary
controlled) for 2009/10, together with indicative allocations for 2010/11 & 2011/12 are attached.
Schools will be allowed to accumulate their formula capital grant over a maximum of three years
to pay for more substantial projects than would otherwise be affordable. Exceptionally, if a
school wishes to accumulate DFC for more than three years to finance a specific large project, it
may do so. Schools are advised to consult with the authority (Head of School Organisation &
Development) on any such proposal.
The DCSF have advised that to improve schools earlier and to stimulate the local economy
schools have been allowed an advance of devolved formula capital of 40% from 2010/11 to
2009/10. The authority will ensure that the overall spend of DFC does not exceed the adjusted
total of DFC for 2009/10 but depending on the uptake it may still be possible for schools to
undertake work which requires a full drawdown of their 2010/11 DFC allocation.
Guidance has been previously been provided by DCSF on how devolved formula capital should
be used by schools. Following this guidance, priorities should take account of national policies
and align with their Local Authority’s Asset Management Plan. Schools have been notified
separately of the opportunity to link their DFC with Targeted Capital Funding provision to
increase the uptake of school meals and bids are currently being considered by the Department
for this funding. With improved pupil performance resulting not only from investment in
curriculum areas but also from social, recreational, staff areas and extended school provision,
consideration should therefore be given to investment in these areas.
DCSF have identified the following objectives for the use of DFC:-
i) to fund small capital projects.
ii) to pay for more substantial projects through accumulation of DFC over periods of up to
three years (and exceptionally up to four years).
iii) as a contribution to a bigger project in partnership with the authority, which could also
include funding from other sources.
iv) an allowance for ICT provision has been included within DFC allocations. It is however
entirely up to schools to decide what proportion of their DFC grant should be spent on
ICT. Over the longer period however, schools are expected to balance investment
between the needs of the buildings and ICT.
i) schools’ devolved capital funding is to be used on priorities agreed locally and set out
within the Asset Management Plan.
ii) there should be agreement between schools and the authority on what schools’ devolved
formula capital should be used for. In general DCSF expects that devolved formula
capital will be spent on the highest priority items first, such as urgent Health and Safety
schemes and building refurbishment projects but consideration should be given to
investment in social recreational and staff areas and extended school provision.
Use of the Grant
Examples of the types of expenditure which devolved capital grant might cover include:-
i) health and safety works (major roof repairs, re-wiring, upgrading fire/security systems,
resurfacing play areas).
ii) refurbishment (which could include upgrading boiler plant).
iii) conversions (for example, general teaching areas to specialist use).
iv) security (improvements to or provision of lighting and fencing, CCTV).
The authority’s Asset Management Plan (AMP) has been and will be the key framework and
basis for identifying priorities..
Manchester Partnership Programme
The Manchester Partnership Programme was successfully developed to meet refurbishment
and improvement requirements that devolved capital allocations alone could not address. The
2008/09 year programme value of £5,441,660 was supported by top sliced DCSF funding
available to the Authority of £3,861,660, together with contributions by schools of devolved
capital or other funding available to them of £1,580,000. Schools will be advised in due course
about the bidding process and criteria for the 2009/10 Partnership Programme but schools will
be invited to consider bidding for projects to help transform education and support raising
standards in addition to bidding for building condition work.
Grant must not be used for general maintenance, redecoration, day to day repairs,
e.g. re-glazing. In this respect it is distinct from any element for routine repairs and
maintenance which may be included in delegated schools budgets. The grant must not be used
for the purchase of books, training materials/services, or for operating leases in respect of
equipment or facilities. It should not be used to hire temporary accommodation, unless the
provision relates to a large project which has a short term need to re-house classes. Devolved
formula capital should not be used to pay for the leasing of ICT equipment, but DCSF has
advised that this restriction is under consideration. Further advice will be given when available.
Management of Devolved Formula Capital
Schools have been advised to consult and discuss their proposals for utilising their devolved
capital funding with their Property Development Advisor, within the School Organisation and
It is essential that schools seek appropriate advice either from the Department or other
professional advisors in respect of capital projects for which schools are responsible.
The advice to seek professional input is made to ensure compliance with Building Regulations
and will be essential to ensure compliance with all relevant health and safety legislation. Please
note also, associated fees and other related costs must be considered as part of the total
project cost. It will also be vital to ensure, before embarking on a capital project, that there is no
potential for additional costs to arise.
Schools must also ensure that arrangements are in place to ensure that appropriate
financial procedures are followed. This will be especially relevant to tendering
arrangements. Documentation has been provided to schools in the past concerning Standing
Orders/Financial Regulations, Guidance Notes in Support of Procurement Schemes and
Schemes for Financing Schools.
If you require any further information regarding the above please contact the Property
Development Advisor for your school or, in regard to devolved capital allocations and queries,
Stephanie Renwick on 234 7403 or Bob Corrigan 234 7055.
School Organisation & Development
Guidance Notes for School Administrators
DFC 1 - Proposal Form and UF1 - Use of School Facilities Form
To take up your devolved formula capital you will need to complete the attached DFC 1 form
giving details of your proposed scheme, for consideration by the Authority against the AMP
criteria. UF1 form must also be submitted after updating to reflect the current level of
community use of school facilities. This will allow lettings and usage to be assessed and VAT
implications for the Council to be determined. Failure to do this will delay your scheme.
Please return all completed forms to School Organisation and Development.
The agreement of the Head of School Organisation & Development, Executive
Member for Children’s Services, Executive Member for Finance and Human
Resources and the City Treasurer will then be obtained, following which you will
be given confirmation that an order for work can be placed.
Orders must not be issued before this confirmation, to avoid the possible
serious consequences to the City Council’s VAT position.
The following key processes will then apply for the financial management of your devolved
formula capital scheme:-
You should set up 2 new cost centres within FMS 6 as follows (this may have already been
Devolved Capital Income and set up new ledger code CI 01
Devolved Capital Expenditure and attach ledger code CE 02
If you have any difficulties setting up cost centres and ledger code links please contact your
School Budget Liaison Officer.
Following agreement of a project and approval of expenditure, your devolved capital funding will
be transferred into your school bank account via financial director. For FMS6 purposes you
should treat this transfer as income using a cash book journal. The school will receive its
Devolved Capital funding for a project in one installment.
You should budget for the estimated cost of the devolved capital scheme and the income from
the payment of the devolved capital funding using the new cost centres. The actual income and
expenditure should then be recorded against the cost centres. Please note that both the
income and expenditure estimates and actual amounts recorded against the cost centres
should be net of VAT.
The VAT on the expenditure for the scheme can be claimed back in the same way as VAT
incurred on the general running expenses of the school. Therefore VAT can be ignored when
planning and budgeting for the costs of the scheme. The funding available will be equal to the
cost of the scheme, net of VAT.
On receipt of an invoice from the contractor and after the work has been satisfactorily
completed, the school shall:-
record the invoice on the FMS6 system posting the expenditure to the special works
expenditure code CE02;
pay the invoice direct to the contractor (including VAT) – Since HM Revenue &
Customs has exempted schools from the operation of the Construction Industry Tax
Scheme, schools can now make payment direct to contractors. Please ensure that the
payee details are edited correctly in FMS6.
Devolved Formula Capital Allocations
Allocations for Modernised & Un Modernised Community and Controlled Schools
Allocation Allocation Indicative Indicative
Type 09 10 10 11 11 12
£ £ £
BSF PHASE 1
Abraham Moss 132,278 132,278 132,278
Burnage 107,425 107,425 53,712
Cedar Mount Modernised 45,916 45,916 45,916
Levenshulme 107,803 107,803 53,901
Newall Green Modernised 51,303 51,303 51,303
BSF PHASE 1
Buglawton Hall Modernised 13,125 13,125 13,125
Meade Hill Modernised 13,408 13,408 13,408
Melland Modernised 22,291 22,291 22,291
Piper Hill Modernised 19,267 19,267 19,267
Southern Cross 31,163 31,163 31,163
BSF PHASE 2
Whalley Range 172,913 172,913 172,913
BSF PHASE 2
Ewing 34,187 34,187 34,187
Lancasterian 36,455 36,455 36,455
Grange 30,880 30,880 30,880
Brookway 5/12ths 24,994 0 0
Manchester Health Academy 7/12ths 34,991 0 0
North Manchester Girls 5/12ths 62,203 0 0
Creative and Media Academy 7/12ths 87,085 0 0
North Manchester Boys 5/12ths 40,193 0 0
Creative and Media Academy 7/12ths 56,270 0 0
Parklands 5/12ths 34,405 0 0
Business and Enterprise Academy 7/12ths 48,166 0 0
Plant Hill 93,722 93,722 93,722
Wright Robinson Modernised 92,646 92,646 92,646
Chorlton High Modernised 80,125 80,125 80,125
Parrs Wood Modernised 103,372 103,372 103,372
Collyhurst 22,469 22,469 22,469
Martenscroft Centre Modernised 10,573 10,573 10,573
Camberwell Park 34,943 34,943 34,943
Ashgate 27,478 27,478 27,478
The Birches 39,479 39,479 39,479
Rodney House 24,170 24,170 24,170
Booth Hall Hospital 19,823 19,823 19,823
North Ridge Modernised 17,188 17,188 17,188
Abbey Hey 44,078 44,078 44,078
Abbott 32,423 32,423 32,423
Acacias 41,054 41,054 20,527
All Saints' W Gorton 32,990 32,990 32,990
Alma Park 47,669 47,669 47,669
Ashbury Meadow Modernised 15,235 15,235 15,235
Aspinal 30,785 30,785 30,785
Baguley Hall 42,283 42,283 42,283
Barlow Hall 33,242 33,242 33,242
Beaver Road 59,702 59,702 59,702
Benchill Modernised 19,897 19,897 19,897
Birchfields 61,907 61,907 61,907
Bowker Vale 42,094 42,094 42,094
Briscoe Lane 36,896 36,896 36,896
Broadhurst 27,131 27,131 27,131
Broadoak 46,220 46,220 46,220
Brookburn 42,629 21,315 21,315
Button Lane 38,534 38,534 38,534
Cavendish 48,047 48,047 48,047
Chapel Street 47,354 47,354 47,354
Charlestown 38,881 38,881 38,881
Cheetwood 33,998 33,998 33,998
Chorlton Park 63,293 63,293 63,293
Claremont 49,244 49,244 49,244
Higher Openshaw 34,628 34,628 34,628
Crab Lane 38,030 38,030 38,030
Cravenwood 37,148 37,148 37,148
Crosslee Modernised 18,905 18,905 18,905
Crossacres 41,873 41,873 41,873
Crowcroft Park 33,557 33,557 33,557
Crumpsall Lane 47,543 47,543 47,543
Gorton Mount 44,834 44,834 44,834
Green End Modernised 19,897 19,897 19,897
Harpur Mount 41,999 41,999 41,999
Haveley Hey Modernised 20,905 20,905 20,905
Heald Place 47,732 47,732 47,732
Ladybarn 40,204 40,204 40,204
Lily Lane Inf 31,352 31,352 31,352
Lily Lane Jnr 31,793 31,793 31,793
Manley Park 48,173 48,173 48,173
Mauldeth Road 40,267 40,267 40,267
Medlock Modernised 22,386 22,386 22,386
Moston Fields 38,345 38,345 38,345
Moston Lane 41,495 41,495 41,495
New Moston 45,118 45,118 45,118
Newall Green 52,457 52,457 52,457
Park View 35,258 17,629 17,629
Northenden 33,683 33,683 33,683
Old Hall Drive 40,487 40,487 40,487
Old Moat 39,227 39,227 19,614
Oswald Road 46,283 46,283 46,283
Peel Hall 31,793 31,793 31,793
Pike Fold 31,982 31,982 15,991
Plymouth Grove 39,794 39,794 39,794
Rackhouse 31,856 31,856 31,856
Ravensbury Modernised 19,755 19,755 19,755
Ringway 30,911 30,911 30,911
Rolls Crescent Modernised 17,944 17,944 17,944
St. Thomas' 33,935 16,968 16,968
Sandilands 41,684 41,684 41,684
Seymour Road 39,196 39,196 39,196
Stanley Grove 48,677 48,677 48,677
Temple Modernised 25,142 25,142 25,142
Varna Street 32,612 32,612 16,306
Victoria Avenue 37,085 37,085 37,085
Webster 32,927 32,927 32,927
Wilbraham 45,464 45,464 45,464
Willows 41,243 41,243 41,243
Voluntary Controlled Primary
Armitage C.E. 29,777 29,777 29,777
Chorlton C.E. 33,305 33,305 33,305
Holy Trinity C.E. 32,455 32,455 32,455
St Barnabas C.E. 31,604 31,604 31,604
St. Agnes' C.E. Modernised 16,747 16,747 16,747
St. Augustine's C.E. 28,580 28,580 28,580
St. Chrysostom's C.E. 33,683 33,683 33,683
St. Clement's C.E. 32,990 32,990 32,990
St. James' C.E. Gorton 32,549 32,549 32,549
St. John's C.E. Longsight 41,873 41,873 41,873
St. Luke's C.E. 33,683 33,683 33,683
St. Margaret's C.E. 41,558 41,558 41,558
Cheetham C.E. 49,559 49,559 49,559
St. Mary's C.E. Hulme 32,801 32,801 32,801
St. Paul's C.E. Modernised 20,496 20,496 20,496
St. Wilfrid's C.E. N Heath 33,053 33,053 33,053
DEVOLVED FORMULA CAPITAL (DFC1)
Proposal for Devolved Formula Capital
This form is to be submitted by schools proposing to undertake any building/construction or ICT
It is important that all parts of the form are completed and the information requested supplied to
assist in the consideration of the project, and to enable the department to monitor projects, note,
record and update the Asset Management Plan accordingly.
Name of School
School Contact for the Project
Title of Project
1. Project Description
Please provide a brief description of the proposal. This should be in sufficient detail to
identify the extent of the works with the location identified separately and submitted on a
plan of the school.
Estimated value of the work:
Amount of Devolved Capital Required:
Cost of professional fees:
Proposed start date:
Duration of the work (in weeks): Date for completion:
Please provide a clear breakdown of the sources of funding for the project and the amounts
3. Link to Strategic Plans
Please indicate how, and to which, the project contributes to the objectives set out within a
strategic departmental or the School Improvement Plan.
Please provide details of any consultant/professional property advisor appointed for the
project, ie their name, address and service to be provided.
5. Project Information (please tick) Yes No
Does the project require planning approval?
Does the work require Building Regulations approval?
Does the project fall within the scope of the Construction, Design and
Management Regulations (CDM Regs.)?
Have you determined the likely-hood of asbestos containing materials
within the working area?
Have the requirements of the Disability Discrimination Act legislation
(DDA) and the City Council’s Design for Access criteria been
Please indicate procurement route, method of obtaining tenders, or other method (refer
Standing Orders, Financial Regulations).
7. Accommodation Changes (please tick) Yes No
Do the proposals change the use of any room or space. If “yes”
please provide details below (refer to Asset Management Plan for
Please indicate if the proposals have an impact on the capacity of the school.
Please state the existing numbers on roll and the school’s standard number.
Signed (on behalf of the school)
Please send the completed form to:
School Organisation & Development
fao: (your Property Development Advisor)