Agenda item

The Schools Forum will receive a report which presents the position of revenue balances of Wiltshire maintained schools as at 31st March 2015 and identifies those that are in deficit.

Schools Forum members are invited to comment on this report.

Jane Ralph, School Support Accountant, was in attendance to present the report.

The report presented the position of revenue balances of Wiltshire Council maintained schools as of 31st March 2015, and identified those which were in deficit. The analysis of the net revenue balances excluded schools that converted to academy status during the financial year but included those that converted post 31^st March 2015.

The Schools Forum last considered a report on schools’ balances and deficits in November 2014. In that report the value of surpluses was £9.943 million and 15 schools were in deficit with a total value of £1.314 million.

Significant underlying trends were referenced, and note was made to the table in paragraph 5 which displayed the deficit balances. It was noted that the deficit balance for Primary Schools and Secondary Schools had increased over the 2014/15 year.

When considering individual revenue balances it was explained that the underlying factors and causes generating or reducing balances should be taken into consideration. This included the pupil premium which did not have to be spent during the year. Some, or all, of the pupil premium could be carried forward to future financial years.

Appendix 1 provided a breakdown of the balances for the 2014/15 year. There were 24 Primary Schools and 2 Special Schools with balances above the limit. A total of 128 Primary Schools, 4 Secondary Schools, and 2 Special Schools had reasonable balances. There were 13 Primary Schools and 5 Secondary Schools with deficit balances.

Appendix 2 provided an analysis of schools that have had revenue balances in excess of 15% of their total School Budget Share (excluding Pupil Premium funding) for the last 5 years. It was noted that this would not trigger a DfE investigation.

Appendix 3 contained an analysis of schools that had revenue balances in excess of 5% and 8%, for secondary and primary/special schools respectively, within the last 5 years.

Appendix 4 provided an analysis of schools that had been in a deficit position over the last four years (2011/12 to 2014/15). It was noted that three schools had been in a deficit of 2.5%, or more, for each of the last 4 years. This equated to 1.69% of Wiltshire’s Local Authority schools, as at 31^st March 2015. As this was below the 2.5% threshold set by the DfE it was explained that it would not trigger an enquiry.

In answer to a question it was explained that converted academies required reimbursement. Reference was made to paragraph 17 of the report. This stated that for converter academies the local authority was reimbursed the value of the deficit, with the money being recovered through the abatement of the academy’s General Annual Grant. In the case of sponsored academies, the deficit remained with the local authority to be funded from the core budget.

A question was asked regarding the schools which had experienced the biggest growth in their deficits. One of the schools was being dealt with by Michael Hudson, Associate Director of Finance, to look at options. The other school was looking at becoming an academy.

Resolved

To note the Schools Revenue Surplus and Deficit Balances Report 2014/15