Agenda item

Action

Claire White presented the report on the end of year school balances as at 31^st March 2015. Overall, the level of balances held by schools has gone up, which given the current pressures school budgets are facing is a surprise and it will be interesting to compare this to the national picture. The balances held by the PRUs have gone up significantly, whilst secondary school balances have significantly reduced. Special schools are still holding high balances. Ian Pearson stated that the School Forum decision in March to change the top up rates for PRUs from the high needs block should reduce the balances these schools are currently holding.

Only one of the three schools planning a deficit budget in 2014/15 actually closed in deficit, though eight schools closed with an unplanned deficit. These eight schools have worked with accountancy and set balanced budgets in 2015/16. The four schools that were in this position last year all managed to close with a surplus this year.

Three schools closed with an excess surplus balance (greater than 8% in primary schools or 5% in secondary schools). This is the same small number as last year (none of whom have an excess this year). The forum members were asked to consider the explanations set out by each of the three schools in their balance control return and decide whether they were acceptable or whether further explanation is needed. Members agreed that the excess balances at both Englefield (£3,338) and Lambourn (£2,162) were small and had reasonable explanations, and no further action was required. However the Inkpen excess surplus of £15k needed further explanation, particularly as the school appeared to have no reason for continuing to hold over 8% (£30k) in contingency. It was also noted that this school had previously had an excess surplus, albeit when there was a different head teacher and school business manager in post. Ian Pearson reminded members that Academies have no claw back scheme, and that this is a small school subject to volatile funding. But he agreed that the school needed to explain their position in relation to their three year budget.

DECISION: Inkpen be invited to the next Heads Funding Group to explain and justify their excess surplus. Heads funding Group to make a recommendation to the next Schools Forum on whether to claw back the excess.

ACTION: Inkpen to be informed and invited to next HFG

C. White