This error indicates that your school is listed as having a governance of CTC or non-maintained and that funded hours have been entered for a student.
If this is the wrong governance for the school this can be amended via Admin > Config > Core Set Up > School and edit.
Alternatively if this is correct the funded hours on the pupil profile should be removed as they are not required for the census. To do this please search the pupil name in the top right hand search bar, go to the extended tab of the profile and underneath the school information heading delete the funded hours and save at the bottom.