To consider a report by County Councillor Myfanwy Alexander, Portfolio Holder for Education and County Councillor Aled Davies, Portfolio Holder for Finance.
Minutes:
The Leader welcomed Ian Budd, the Director of Education to the meeting.
Cabinet was advised that as at the 31st March 2017 there were thirty four schools with cumulative deficit balances totalling £2.48m, compared with eighteen as at the 31st March 2016 with deficits of £0.94m. The level of reserves held by schools had reduced to £0.5m from £2.9m the year before.
The Portfolio Holder for Education explained that the size of a school or the medium of delivery were not crucial factors in setting a balanced budget and noted that those schools that had set balanced budgets had done so by addressing staffing issues which made up 85% of budgets. She encouraged schools to work with the Council. She also noted that there needed to be a broader look at whether the footprint of schools in the county was correctly configured, whether they were properly resourced and whether there were enough corporate support for schools. She advised that the fair funding formula was being reviewed with a view to bring a report back to Cabinet in October
The Portfolio Holder for Finance highlighted the Section 151 Officer’s comments that the schools’ budget deficit was a significant financial risk for the Council. He welcomed the Joint Education Scrutiny Group’s work looking at the financial viability of schools.
County Councillor David Meredith, speaking as the Chair of Brecon High School Governors was critical of the support offered to the school by the Council.
Members asked about the arrangements for the clawback of surplus budgets and were advised that schools were required to submit plans for how they would be utilised for consideration by the Portfolio Holder for Education. Members also asked about the actions open to the Council and were advised that there were different levels of intervention with the removal of delegation being the last resort.
The Section 151 Officer stressed the financial risk to the Council and confirmed that there was corporate ownership of the issue.
RESOLVED |
Reason for Decision |
1. That all planned budgets with a cumulative surplus at 31 March 2018 are approved |
To comply with the Authority’s scheme for the financing of schools |
2. That the Portfolio Holder for Education has the delegated decision on whether to apply clawback to the schools named in paragraph 4.3 of the report, pending reasons for the surplus being in excess of the position submitted to cabinet in July 2016. |
To comply with the Authority’s scheme for the financing of schools |
3. That all schools that are potentially subject to clawback for 2017/18 as set out in paragraph 4.4 have their budgets re-assessed after spending plans have been submitted by the 29th September 2017 and a further report brought back to Cabinet during the Autumn Term 2017. |
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 2017/18 are licensed: Primary Schools Abermule CP School Berriew C P School Clyro C in W Controlled School Franksbridge C P School Leighton C P School Llanbister C P School Llandrindod Wells C P School Cefnllys Llanfechain C in W School Llanfyllin C P School Llangedwyn C in W Voluntary Controlled School LlanrhaeadrYm Mochnant C P School Llansantffraid C in W Aided School YsgolDolafon YsgolDyffryn Trannon YsgolGymaeg Dyffryn Y Glowyr YsgolMeifod
Secondary Schools Ysgol Bro Hyddgen
|
To comply with the Authority’s scheme for the financing of schools |
5. That the budget for Brecon High School remains in an unlicensed position. Following the meeting with the governing body a report is submitted to cabinet to recommend the level of intervention proposed. |
To comply with the Authority’s scheme for the financing of schools |
6. That the budget for Ysgol Maesydderwen remains in an unlicensed position and that the school and Governing Body works with the Authority to further review the budget position. |
To comply with the Authority’s scheme for the financing of schools |
7. That the budget for Llanidloes High Schools and Ysgol Cedewain remain in an unlicensed position. |
To comply with the Authority’s scheme for the financing of schools |
8. That the budgets for Bronllys C P School, Brynhafren C P School, Llanfihangel Rhydithon C P School, Talgarth C P School and Ysgol Maesydre are not licensed. |
To comply with the Authority’s scheme for the financing of schools |
9. The Schools named below with planned cumulative three year consecutive deficit balances, including the current year are not licensed and a notice of concern be issued to each Governing Body and that the Governing Bodies of these schools be required to submit a recovery plan to the authority by the 29th September 2017. Primary Schools Irfon Valley C P School Llangynidr C P School
High Schools Builth Wells High School Crickhowell High School Llanfyllin High School Welshpool High School Llandrindod High School
Special Schools Brynllywarch Hall Residential School
|
To comply with the Authority’s scheme for the financing of schools |
10.That the budget for Llangors C in W School is not licensed and a notice of concern be issued to the Governing Body to submit an approved budget plan by 21st July 2017.
|
To comply with the Authority’s scheme for the financing of schools |
11.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 |
12.Existing Loans are monitored. |
To comply with the Authority’s scheme for the financing of schools |
Supporting documents: