Issue - meetings

(a)       That the report be noted;

(b)       That the Finance Manager writes to the Minister for Education on behalf of the Committee asking him to consider changing the threshold for intervention from cash terms to percentage terms where surplus budgets were being held by schools.

The Finance Manager introduced a report on Flintshire school balances for the year ending March 2013.  She provided background information and advised that the balance for each school in Flintshire had been appended to the report.  An amended list of balances to include the percentage of balances carried forward was distributed to the Committee.

                           The Finance Manager reported that the general position for Flintshire schools identified a decrease of 5% in overall balances which equated to £114 per pupil in Flintshire compared to the Wales average of £154 per pupil.  Overall in Wales there had been an increase of 2.9% in school balances.   She gave an overview of the secondary school and primary school balances and advised that all schools with excess balances had been asked to submit detailed spending plans which were scrutinised and challenged by the Schools Accounting Team.  The Finance Manager advised that the Authority had two schools with a licensed deficit.  

                           Councillor Ian Dunbar commented on the need for Primary schools to retain funding for contingency plans.  He expressed concerns regarding the requirements set out in the School Funding (Wales) Regulations 2010 and Flintshire Scheme for Financing Schools relating to primary school balances  and the level of surplus that could be carried forward by schools.   

                           Mr. David Hytch referred to the role and responsibilities of Governing Bodies as employers and commented on the need for a financial strategy that would maintain sustainable staffing.

In response to a query from Councillor Nancy Matthews concerning how schools were allowed to set a deficit budget, the Finance Manager advised that further clarification would be provided to Members during the School Funding Formula Review workshop on the 5 December 2013.

During discussion concerns were expressed that the level of school balances should be based on the % of pupils attending the school and that some primary schools had higher pupil numbers than high schools but they were only allowed to hold balances of £50,000 compared to £100,000 for primary schools.   It was agreed that the Finance Manager would write to the Minister for Education on behalf of the Committee asking him to consider changing the threshold for intervention from cash terms to percentage terms where surplus budgets were held by schools.

RESOLVED

(a)       That the report be noted;

(b)       That the Finance Manager writes to the Minister for Education on behalf of the Committee asking him to consider changing the threshold for intervention from cash terms to percentage terms where surplus budgets were being held by schools.