To consider a report by County Councillor Myfanwy Alexander, Portfolio Holder for Education and the Welsh Language.
Minutes:
Cabinet was advised that as at the 31st March 2018 there were twenty three schools with cumulative deficit balances totalling £3.71m. This compared with thirty four schools with deficits as at the 31st March 2017 with cumulative deficits of £2.2m. The cumulative deficit of school budgets placed a significant risk on the Authority’s overall reserve. There had been a significant decrease in the level of cumulative reserves held, a deficit position of £0.434m. The reserves held at the 1st April 2017 totalled £0.485m, a reduction in the overall balance held by schools between the financial years of £0.919m. Finance, HR and Schools Service officers were working closely with all schools to review curriculum plans and drive down costs wherever possible to reduce deficits.
County Councillor DR Jones presented the findings of the Education Scrutiny Group and noted with concern that the situation continued to get worse despite Powys being amongst the highest funders of schools in Wales. Scrutiny was concerned that changes called for by Scrutiny and by the Wales Audit Office had not been implemented and that deficits from schools that had closed had been passed to the Council. Scrutiny was also concerned that too much faith was being put in the fair funding review which would not be ready until December 2018.
The Leader and Director of Education thanked Scrutiny for their work. The Director of Education explained that there was rigorous support and challenge to schools in deficit from HR, Finance and the Schools Service that was starting to pay dividends. He acknowledged that the review of the school funding formula would not create additional funding but it would address issues of equity and transparency which would help compliance work with schools in deficit. Finally he noted that in the months and years ahead decisions would be required on the organisation of schools in the county to secure greater resilience. Cabinet recognised that this was a corporate issue for the whole Council and noted that an additional £6m had been put into schools budgets.
The Portfolio Holder for Education and the Welsh Language referred to the huge costs of home to school transport and ALN which needed to be driven down. She stressed that fiscal probity should be top of the list of responsibilities for school governors and that passing a deficit budget should be unacceptable.
RESOLVED |
Reason for Decision |
1. That all planned budgets with a cumulative surplus at 31 March 2019 are approved |
To comply with the Authority’s scheme for the financing of schools |
2. That the clawback mechanism for 2017-18 to the schools named in Section 4 of the report should apply, pending reasons for the surplus being in excess of the position being submitted to cabinet |
To comply with the Authority’s scheme for the financing of schools |
3. That all schools that are potentially subject to clawback for 2018-19 as set out in Section 4 have their budgets re-assessed after spending plans have been submitted. |
To comply with the Authority’s scheme for the financing of schools |
4. That the proposed budgets for the following schools, who have planned cumulative deficit balances in 2018-19, are licensed:
Primary:
Llanfihangel Rhydithon CP Llangedwyn C in W
Special:
Brynllywarch Hall
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To comply with the Authority’s scheme for the financing of schools |
5. That the budgets for the following schools remain or are placed in an unlicensed position.
Primary Schools:
Brynhafren CP School Llanerfyl C in W Foundation School Llanfechain C in W Llansantffraid C in W Controlled School Pengloddfa CP School St Mary’s Roman Catholic Aided School Ysgol Bro Cynllaith
Secondary Schools
Brecon High School Builth Wells High School Crickhowell High School Ysgol Maesydderwen Llanidloes High School Ysgol Bro Hyddgen Welshpool High School Llandrindod Wells High School
Special Schools
Ysgol Cedewain
The Authority will continue to work closely with these schools to reduce the deficits over the next three years, with regular meetings support to ensure improved budget recovery plans. Schools and their governing bodies will be reminded of the need to comply with Notices of Concern, and the consequences of the withdrawal of delegation, which will be implemented for non-compliance within an agreed timeframe
Schools in deficit will have regular support, in addition to the financial surgeries that continue in the summer, autumn and spring terms. Action plans are being put in place following meetings with the Schools, and a RAG rate will be given to Schools in order for the Authority to ensure those Schools with an amber and Red RAG rating are scrutinised as failure to comply with the constitutional mechanism we have in place jeopardises the education provision for today’s and tomorrow’s children and young people.
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To comply with the Authority’s Scheme for the Financing of Schools |
6. Financial surgeries continue in the autumn and spring terms and schools are reminded of the possibility of claw back. |
To comply with the Authority’s scheme for the financing of schools |
7. Existing Loans are monitored. |
To comply with the Authority’s scheme for the financing of schools |
Supporting documents: