Issue - meetings

That the school reserve levels as at 31 March 2021 be noted.

The Chief Officer (Education & Youth) presented the annual report on reserves held by Flintshire schools and the risks and internal processes associated with schools in deficit.  The report had also been considered by the Education, Youth and Culture Overview & Scrutiny Committee.

In comparison with the previous year, there was an increase in reserve levels across all sectors held at 31 March 2021, partly due to a number of additional grants awarded for issues caused by the emergency situation.  Grants awarded at a late stage had inflated balances at year-end and presented challenges for those managing school budgets.  There had been a reduction in the number of primary and secondary schools in a deficit position and the robust processes for monitoring school balances through the Protocol for Schools in Financial Difficulty continued to provide challenge and target support where needed.  There was regular engagement with Head Teachers on surplus balances which was an issue raised at national level.  In recognising the significant challenges during the ongoing pandemic, schools were not expected to complete the annual return on their planned use of school balances exceeding the limits specified this year.

In noting the Council’s additional investment in delegated schools budgets to manage the reduction in school budget deficits, Sally Ellis asked about the level of extra funding that was required to change the funding formula for schools.

It was clarified by the Chief Officer and Strategic Finance Manager that an additional £1m had been allocated to the secondary sector for 2021/22 which was recurring funding, as resources allowed.  The requirement for more school funding was identified as a cost pressure in Stage 2 of budget reports to Overview & Scrutiny and was dependent on the Council’s overall financial position following notification of the Provisional Settlement in December 2021.  Plans to address changes in the school funding formula would take some time to resolve.

As Leader of the Council and Cabinet Member for Education, Councillor Ian Roberts cited other factors contributing to schools’ deficit position.

The Chief Executive said that the Council’s strategy to include the additional uplift for schools responded to the Estyn inspection recommendation to effectively manage the reduction in school budget deficits and was dependent on the increased Settlement from WG.

The Chief Officer assured the Committee of the overall strategy for high-performing schools across Flintshire and to encourage parents to choose local schools.

The recommendation was moved and seconded by Councillors Martin White and Joe Johnson.

RESOLVED:

That the school reserve levels as at 31 March 2021 be noted.