DFC

Devolved Formula Capital – DFC

Voluntary AIDED Schools

  • DFC funds the smaller capital works for all schools
  • Each school is given a sum calculated with reference to the number on roll early in the funding year (1 April to 31 March)
  • For almost all VA schools, the grant comes to the Diocese and is held in individual CBF deposit accounts

Practicalities and administration – reminders and changes

  • VAT may not be reclaimed on DFC projects. Suppliers will usually quote a VAT-exclusive amount: if they say £2,000, the actual cost is £2,400
  • DFC will only actually pay up to 90% of project costs, so for the £2,400 project, the governors (typically the school itself) will have to find £240
  • Project value must be at least £2,000
  • Typically, the school will ask the Diocesan Board of Education (DBE) to raise purchase orders for the project, the supplier invoices – addressed to the Governors – are sent to DBE for payment:
    • Fao Bridget Starling
    • Lincoln Diocesan Board of Education, 103 Newport, Lincoln, LN1 3EE
  • DBE will settle the invoice (so long as you confirm your approval) in full. 90% of the cost will then be drawn from the school’s CBF deposit account and the remaining 10% requested from the Governors.

In March 2015 the way the DFC is regulated was changed.

  • If your DFC is held by DBE, your school will not be required to make a year end declaration
  • DBE must still make that declaration on a summary form
  • A sample of declarations will be selected by the Education Funding Agency for detailed audit.

The three year rule and clustering

  • If not spent within 3 years, the DFC will be clawed back: ie, at 31 March the school should hold at most the last 2 years’ DFC grant
  • We can share surplus DFC around the Diocese to help avoid losing it to claw-back.
    • When these rules were introduced, VA schools in the Diocese of Lincoln agreed to these clustering arrangements
    • DFC grants are very much smaller than used to be the case so the problem of surplus has almost disappeared but it can still be very helpful
  • DFC can be used to supplement an LCVAP project, but not to pay the 10% Governors’ contribution

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