Issue - meetings

That the level of school reserves as at 31 March 2022 be noted.

The Strategic Finance Manager (Schools) presented the annual report on reserves held by Flintshire schools and the risks and internal processes associated with schools in deficit.

In comparison with the previous year, there was a significant increase in reserve levels across all sectors as at 31 March 2022 (as replicated across Wales), coinciding with a number of additional Welsh Government (WG) grants awarded in recognition of the impact of the pandemic on learners.  Although welcomed, a number of grants awarded at a late stage had inflated school reserves at year end.  Trend analysis illustrated the shift to reserves increasing from 2020 which was mainly attributed to significant amounts of WG grant funding during the pandemic.  It was important to recognise that whilst overall reserve levels were a snapshot at that time and subject to fluctuation, there was background context for each individual school to achieve the right balance in ensuring levels of reserves were not excessive but adequate reserves with a clear purpose.  An overview was given of the process in monitoring school reserve levels along with a summary of responses from schools on balances in excess of 5% of the school budget recommendation.

In response to questions from Allan Rainford, the Strategic Finance Manager provided clarification on criteria linked to grant funding and the ongoing review of the funding formula.

As requested by Councillor Andrew Parkhurst, the protocol for schools in financial difficulty would be circulated to the Committee to show the stages involved in applying for a licensed deficit.  He was also advised of support for schools in managing budgets and cost projections including energy on which the impact for next year was not yet known.

In thanking the Strategic Finance Manager for her detailed report, Councillor Ian Roberts referred to the complex funding formula and the impact of projected increases in the number of secondary school pupils coinciding with a reduction at primary level.  He spoke about the priority to maintain a broad balanced curriculum and welcomed financial contributions from WG towards school budgets as a result of the pandemic.

In welcoming the improved reserves position, the Chair asked about the process for dealing with schools with higher levels of reserves.  The Strategic Finance Manager gave assurance that whilst high quality information was provided by schools, there was robust challenge where necessary.  She highlighted the need to allow time for schools to utilise the WG funding to support recovery from the pandemic.

The recommendation was moved and seconded by Rev Brian Harvey and Councillor Andrew Parkhurst.

RESOLVED:

That the level of school reserves as at 31 March 2022 be noted.