Capital grants in education - update

Pam Tuckett, Head of Education at Bishop Fleming, outlines crucial points for Multi-Academy Trusts (MATs) regarding capital grants.

There are some important points to note on capital grants:

1. MATs receiving SCA (School Condition Allocation), you need to check your CDC2 reports (Condition Data Collection 2). They feed the SCA calculations so if they are wrong they will impact on your capital funding going forwards.

Make sure you challenge them before it is too late. Tranches 1 to 4 should be complete and available on the portal, tranches 5 to 8 are underway.

2. Trusts bidding for CIF (deadline 12 noon 14 December 2023) there are some key points to note:

• RAAC funding – Trusts do not need to bid for any refurbishment projects through CIF, it will be funded separately.
• For some, RAAC will also have a wider impact on revenue and the DfE has stated that academy trusts with RAAC who need additional help with revenue costs, like transport to locations or temporarily renting a local hall or office, should contact their ESFA caseworker. The DfE guidance states that its expectation is that all reasonable costs will be approved.
• In some schools, RAAC has impacted on catering arrangements with school catering income falling in some schools and having a knock-on effect on the affordability of catering contracts. Also leisure outsourcing has been constrained, leading to a reduction of valuable income for schools. Advice is speak to your DfE caseworker to see what you can recover to support additional costs and lost income, but you also take all suitable and practical steps to minimise loss.
• Trusts should consider energy efficient and environmentally sustainable options when replacing components in and around buildings. All applications will need to demonstrate that these factors have been taken into consideration through a net zero transition plan/sustainable estate strategy.
• Loans are still available for CIF bids for 2-10 years, but must be less than 3% of GAG.
• The Budget Forecast Return must show reserves of at least 3% of GAG as at 31 August 2023.
• The current ratio (ratio of current assets to current liabilities) must be at least 1:1.
• The scoring is very specific and will be affected by the amount of self funding, with the maximum 6 points for 30% or over contribution. Points are also deducted for late filing of certain documents or a qualified audit opinion.
• Urgent capital support is also still available.

If you have any queries on capital grants and any of the above please contact your usual Bishop Fleming advisor.