Agenda item

Report ED13097

The Sub-Committee considered a report setting out all revenue and capital balances held by Primary, Secondary and Special Maintained Schools as at 31^st March 2013, and providing a comparison to the balances held at the same time in the previous year.

In considering spending by Primary, Secondary and Special Maintained Schools in 2012/13, Councillor Julian Grainger noted that small schools were required to keep a higher proportion of reserves as their budgets were smaller than larger schools, and that the proportion of funds held in reserve by small schools should not necessarily be a cause for concern.  Small schools were in receipt of the small schools allowance and had benefitted from the minimum funding guarantee in recent years, but the Head of Schools Finance Support confirmed that work continued to be undertaken with small schools to ensure their future viability, including a suitable level of reserves. 

The Chairman was concerned to note that the management action to reduce balances with detailed costings by some schools included revenue items, which should not normally be funded from the reserves.  It was important for schools to be able to secure value for money when investing in high cost items and building projects.  There was also a need to ensure that ongoing IT investment was sustainable as part of a schools revenue budget, and the Head of Schools Finance Support confirmed that schools were encouraged to look at IT replacement solutions as part of long term budget setting.

In response to a question from a Member, the Head of Schools Finance Support confirmed that the deficit at Clare House Primary School was historic and had been built up under the previous Head Teacher.  A Notice of Concern had been issued to the school in 2012/13 and the Local Authority was now working with the school to deliver its Deficit Recovery Programme, which would support the school in recovering its deficit over 3-5 years.  The expansion of the school to two forms of entry would support the future financial stability of the school.  The Portfolio Holder for Education noted that the school was seeking to become part of ‘Family Langley’ a collaborative group of academy schools which included Unicorn Primary School and Langley Park Boys and Girls Schools.

With regards to conversion to academy status, the Head of Schools Finance Support advised Members that convertor academies retained any budget surplus or deficit and would be responsible to the Education Funding Agency to recover any deficit within one year.  Schools which concerted as sponsored academies did not retain any budget deficit which would become the responsibility of the Local Authority and was paid from the Dedicated Schools Grant.  The Assistant Director: Education confirmed that schools with a significant budget deficit were not able to convert as standalone academies and would need to seek sponsorship.

Following consideration of the revenue and capital balances held by Primary, Secondary and Special Maintained Schools, Members requested that Clare House, St Peter and St Paul’s and Chelsfield Primary Schools be included in the Schedule of Members’ visits for the 2013/14 academic year.  Members also requested that the level of committed and uncommitted revenue and capital balances for Local Authority maintained schools be reported against the number of schools the levels represented as well as the size of each school. 

RESOLVED that the financial position of Primary, Secondary and Special Maintained Schools at the end of the 2012/13 financial year be noted.