Agenda item

Claire White introduced the report which presented the school balances at year end for 2015/16.

School revenue balances had decreased over the last year. This was by £791k or 20%, the greatest reductions being in primary and secondary schools. The overall level of balances did however remain high in special schools and PRUs.

In addition to £3.2m being held in revenue balances, £169k was held in before and after school club funds and over £1.1m in capital balances. Of the revenue balances, £588k was unspent pupil premium grant.

The eight Schools closing the year in deficit had been asked to provide an explanation and what actions they were taking, and the responses were included in the appendix. . Although the number of schools closing the year in deficit had decreased (from nine to eight), for two schools with unexpected deficits at year end the amounts were significant and were of concern. Most of the schools with an unexpected deficit had set a budget with little or no contingency.

Other than John O’Gaunt, the schools that actually set a deficit budget in 2015/16 all closed in surplus, reflecting the hard work by all involved to achieve this.

There were a few schools that closed 2014/15 in deficit, set a balanced budget for 2015/16, but closed the year in deficit again. The scheme for financing schools had now been amended to require all schools closing in deficit to be subject to the same scrutiny as schools setting a deficit budget, even if they had set a balanced budget.

Although the Schools’ Forum agreed to remove the claw back scheme for schools with excess surplus balances, it was agreed that information on high surplus balances would still be looked at.

Overall, balances were reducing, though there were still some schools with significant surpluses. A further report on school budgets for 2016/17 would be brought to Schools Forum in July 2016.

Catie Colston noted that it was useful to see a narrative from the schools who had closed the year in deficit, also from The Castle school.  She suggested that a narrative from all schools in excess surplus would be useful.

Claire White commented that it was interesting to see the disparity between forecasted surpluses a month 9 of 2015/16 and the year end outturn. Bruce Steiner commented that it was concerning that some forecasts were out by 500%.

Catie Colston enquired how the schools balances linked with underspending on Pupil Premium Grant. Reverend Mark Bennet explained that it may be a timing issue if schools received the grant late in the accounting period. Claire White disputed this, explaining that although the grant was received quarterly the allocations were known the previous June.

Paul Dick left the meeting at 18.30pm.

Keith Watts, referring to Catie Colston’s suggestion, noted that the Schools Forum had previously decided that it would not require all schools to provide a commentary. He further added that it was a concern that schools did not know what balance they would have and spend surpluses wisely. Claire White explained that the Schools Forum had decided not to clawback surplus balances but would maintain a level of scrutiny.

Reverend Mark Bennet left the meeting at 18.35pm.

Graham Spellman expressed the view that schools who cited poor financial management over a two to three year period would be cause for concern. Claire White offered assurance that in all schools who claimed this reason, the issues had been resolved.

RESOLVED that the report be noted and all schools with excess surplus balances be requested to provide an explanatory comment.