Agenda item

Melanie Ellis introduced the report (Agenda Item 11) which sought to provide details of the most recent financial forecast of the five schools which had operated throughout 2022/23 with licenced deficit budgets and schools that had informed West Berkshire Council they now expected to end the 2022/23 financial year with an unlicensed deficit balance on their main school budget. The report also provided an overview of the School Resource Management Advisers (SRMA) deployment scheme that three of the five licenced deficit schools took part in during the autumn term 2022/23.

Melanie Ellis reported that two of the five schools in deficit were expecting to end the year with a surplus; one was expecting to have a slightly improved deficit position than budgeted; and the other two were expecting to have a higher deficit than planned. The reasons behind each school’s position was detailed in the report. The Schools Accountancy Team would continue to work with all schools involved.

Melanie Ellis drew attention to section five of the report and highlighted that it was concerning that seven schools had submitted a P9 report that forecasted an unlicensed deficit on their Main School Budget at the end of the 2022/23 financial year. Further detail on this could be found in the report and Melanie Ellis reported that she would report on this again after year end when it would be known for certain how many more schools were facing a deficit.

Melanie Ellis drew attention to section six of the report on the SRMA deployment. Melanie Ellis reported that the SRMA was an independent expert with experience of managing resources in the education sector. It was being provided though the DfE and was free support for schools.

In 2021, two West Berkshire schools had participated in the SRMA scheme and a year later another school had taken part. The feedback was included in Appendix A to the report along with details of the schools that had taken part and recommendations made by the SRMA. Melanie Ellis reported that the SRMA process had now been added as a condition for a school having a deficit licensed.

Melanie Ellis explained that the table under 7.1 of the report summarised the forecasts, with nine schools forecasting a total deficit of £489k, and three schools forecasting a surplus of £77k. Monitoring would continue until year end, and a report on the final position will be produced.

RESOLVED that the Schools’ Forum noted the report.