Devolved Formula Capital (DFC) Grant is Capital Funding for each school is calculated by the Department of Education formula.
DFC provides schools capital funding to allow Schools to prioritise the needs of its buildings, grounds and provides investment in capital equipment including ICT.
DFC Yearly Allocation
For Community, Foundation and Voluntary Controlled schools the allocation formula for years 2021- 2022 is shown below:
| ||Per non-boarding Pupil||Per boarding Pupil||Lump sum per school|
|Nursery and Primary||£11.25||£33.75||£4,000|
|Special and PRU||£33.75||£33.75||£4,000|
The pupil numbers used are taken from the previous year's School Census or the Individualised Learner Record (ILR).
Each school has three years to spend each year's allocation, and the allocation must be spent by the 31st of March of the third year.
Schools can only draw down Devolved Formula Capital (DFC) grant allocations up to and including the current financial year allocation.
Use the links below (all Excel Spreadsheets) to review each years' allocations at the time of the release, not taking into consideration monies spent by schools during each year:
All DFC capital expenditure amount must exceed £2,000 per project.
DFC can be used for capital expenditure where capital expenditure is defined as “the Funding" spent by a school on creation or enhancement or maintaining fixed assets, such as buildings (within the school estate), and (fixed) equipment.
The main categories that DFC can be used for are:
Structural improvements to buildings, including fixtures and fittings.
Capital equipment, including ICT (ICT equipment can be grouped together to meet the minimum £2,000.00)
Long-term improvement to the School Estate, including Capital Improvements /repairs/refurbishment which require larger outlays of time, effort and expense. for example, major repairs, replacements and upgrades.
Capital Improvements are investments made to increase the value of your school (assets) and directly benefit the school or education of pupils. Capital Improvement is performed to boost an asset's condition beyond its original or current state
Schools undertake capital improvements when they wish to
increase an asset's useful function or capacity,
perform a required extension of “useful life,"
enhance the quality of services,
reduce future operating costs,
upgrade essential parts of the asset.
The DFC Grant must not be used for: -
Routine repairs, redecoration or maintenance included in delegated schools' budgets; These are classed as expenses for routine actions that keep your school (assets) in their original condition; these fall under 'repairs and maintenance' in your operational budget.
The purchase of small value i.e., books, training materials and services.
Operating Leases in respect of equipment, ICT (including websites and warranties) or facilities (NOTE: finance leases may be capital but the cost counts as borrowing for which approval must be obtained from the Secretary of State and which is seldom given)
The hire of temporary accommodation, unless this can be legitimately capitalized as part of Building costs, e.g. where it is part of a larger project which has a short-term requirement to re-house classes.
Any expenditure below the minimum capital spend of £2,000
Accessing the Grant
It should be noted that it remains the Schools responsibility to seek and appoint appropriate professional advice when developing and implementing their proposals. This is to ensure compliance with all relevant Health & Safety, Building Regulations and Planning legislation.
DFC1 Notification of Proposed Expenditure
Schools should download and complete the DFC1 Notification of Proposed Expenditure to apply for their DFC. The DFC1 Project Notification Form confirms to the Local Authority:
- Proposed scheme(s)
- Proposed costs
- Proposed project programme dates
- When the grant will be spent
Please allow a minimum of two months for the review and release of the DFC Grant following issue of your completed DFC1 Notification of Proposed Expenditure.
DFC3 Year End Return Form
Schools should maintain proper records of Project works; programme plans and expenditure as this is required to be reconciled against their DFC Grant.
The financial year runs from 1 April – 31 March. Each year schools will be required to download and complete a DFC3 Year End Return Form (formerly known as the Form FCG3).
The DFC3 Year End Return Form includes:
Any DFC brought forward balances and unspent grant,
the current year's DFC allocation,
the DFC Grant approved and received,
the amount of the DFC Grant expended,
the amount of the unspent DFC Grant held at the year-end,
the balance of DFC Grant to be carried forward
For bank account schools, you can use the DFC3 Letter.
All completed forms should be emailed to firstname.lastname@example.org
Schools should keep records of all DFC allocations and expenditure. Including DFC from previous years brought forward and any unspent grant that has been already transferred to the school and expenditure.
Schools must be aware of their current grant balances to enable them to report accurately on the DFC3 Year End Return Form of the actual total expenditure at the end of the year to comply with the County Council's annual closure of accounts timetable.