Issue - meetings

(a)       That the report be noted; and

(b)       That a letter be sent on behalf of the Committee to the Minister to request that the limit for surplus balances for schools be set at 5% of balances rather than a fixed amount.

The Chairman introduced Lucy Morris, Finance Manager, and invited her to report to Members on the year end balances of Flintshire Schools and outline the action being taken by Officers to ensure that balances are maintained at an acceptable level. 

The individual balances for Flintshire schools at the end of March 2012 were identified in the appendix to the report. The Finance Manager reported on the position for Flintshire schools which showed a decrease of £289k in overall balances.  She also referred to a decrease of £318k in Secondary School balances, an increase in Primary School balances of £121k and an increase in Specialist school balances of £7k.

The Finance Manager advised that the Scheme for Financing Schools (section 4 – Treatment of Surpluses and Deficits) had been revised in May 2012 following extensive consultation to ensure a robust approach to dealing with this matter.  She referred to the scrutiny of surplus school balances and the issue of licensed deficits and commented on the guidance set out in the  School Funding ( Wales) Regulations 2010 and the action which should be taken by the Local Authority to address excess school balances. 

During discussion concerns were expressed around the fixed limits set out in the Regulations for primary and secondary surplus balances and it was suggested and agreed that a letter be sent on behalf of the Committee to the Minister to request that the limit for surplus balances for schools be set at 5% of balances rather than a fixed amount.

In response to the further questions and concerns raised by Members the Finance Manager advised that School Fund Accounts were  held separately from the schools delegated budget.  She explained that the Authority was currently revising regulations for School Fund Accounts to assist schools in managing their private school funds and a report was to  be submitted to the Audit Committee shortly to  seek regulation of School Fund Accounts.

RESOLVED:

(a)       That the report be noted; and

(b)       That a letter be sent on behalf of the Committee to the Minister to request that the limit for surplus balances for schools be set at 5% of balances rather than a fixed amount.