Issue - meetings

(a)       That the schools reserve balances as at the 31 March, 2020, be noted;

(b)       That the changes to the Protocol for Schools in Financial Difficulty be noted; and

(c)        Should the Council receive additional funding as part of the Local Government settlement, over and above the minimum requirement, the Committee support in-year revenue being provided to support schools in deficit.

            The Chief Officer (Education & Youth) introduced the school reserve balances for the year ending March 2020 and the protocol for schools in financial difficulty.  There continued to be pressure on school budgets demonstrated by the reducing school reserves.  The analysis of reserve balances for each school in Flintshire at the end of March 2020 was shown at Appendix 1 of the report.

            Secondary school budgets continued to be under significant pressure with a number of factors contributing to the current financial position as detailed in section 1.02 of the report.  In previous years, primary balances had held up well despite the continuing pressure of austerity measures and this had offset the worsening position of secondary schools.  Primary pupil numbers were forecast to reduce and this would create challenges for Primary Headteachers in managing their budgets in future years.

            In response to the worsening financial position of some secondary schools, the Education & Youth Portfolio developed a Protocol for Schools in Financial Difficulty which was finalised and issued to schools in October 2019 and provided a framework for schools to apply to the Authority for a licenced deficit.  The Protocol also provided a framework for the Council to give an appropriate level of challenge and support to help schools in financial difficulty set a balanced budget.  Flintshire Internal Audit Service conducted an advisory review of the Protocol in March, 2020 and there would be a full internal audit conducted of the Licenced deficit process in 2020/21.  The recommendations of the advisory review were detailed in section 1.06 of the report and work was ongoing to address the recommendations, as shown in Appendix 2 of the report.

            Councillor Dave Mackie commented on the size of schools being a large factor towards them being in deficit and referred to the smaller schools who seemed to be facing the largest issues on school balances.  He said that some schools had managed their budgets successfully and suggested that schools who were facing challenges liaise with each other in order to find solutions.  His main concern was around small schools and the opportunity for the Council to take action to assist in reducing their deficits as part of the budget setting process and looking at wider solutions to assist in the future.

            Councillor Ian Roberts, Leader of the Council and Cabinet Member for Education, thanked Councillor Mackie for his comments and commented on the challenges for smaller schools who still had to provide the curriculum and pastoral support.  He assured the Committee that all options were being considered to support schools in deficit with proposals coming forward soon to address some of the issues which included structural issues which needed to be addressed.  He also assured the Committee that along with the Chief Executive and the Chief Officer there had been robust challenge of those schools in deficit to better understand the challenges.  

            In response to concerns around licensed deficits, the Chief Officer that all schools had a responsibility to provide learners with access to a broad  ...  view the full minutes text for item 14