Agenda item

The report of Hazel Ryan (Schools Strategic Financial Management Adviser) presents the position of revenue balances for Wiltshire maintained schools as at 31 March 2021 and identifies those in surplus and deficit.

Grant Davis (Schools Strategic Financial Support Manager) referred to the report which presented the position of revenue balances for Wiltshire maintained schools as at 31^st March 2021 and identified those schools in surplus and deficit.  Grant highlighted the following:

·         The number of LA maintained schools had decreased from 130 to 126 between 31 March 2020 and 31 March 2021.  Three special schools amalgamated to become one school and two schools converted to an academy;

·         The net surplus balances for the financial year 2020/21 were £11.67 million with 113 schools holding surplus balances of £14.39 million and 13 schools in deficit to a value of £2.72 million;

·         For special schools, we show any surplus or deficit balance as a % of place funding – however it should be noted that place funding is only part of the funding for special schools.  In special schools funding comprises place funding and top up funding on a roughly 50% place funding and 50% top up funding basis.  The reason for using place funding only is due to the variable nature of top up funding;

·         The DfE may ask local authorities to provide additional information where:

a)    the authority has 5% of schools that have had a surplus of 15% or more for the last 5 years and where the individual surplus is least £10,000 each year. Authorities will only be asked for more information if at least 3 schools meet the criteria.

b)    the authority has 2.5% of its schools in deficit by 2.5% or more for the last 4 years and where the individual annual deficit is at least £10,000.

·      The number of schools in deficit has decreased from 20 in 2019/20 to 13 in 2020/21, and the value of the deficits has decreased by £0.8 million from £3.52 million in 2019/20 to £2.72 million in 2020/2;

·      The number of schools in surplus has increased from 110 in 2019/20 to 113 in 2020/21 with the value of surpluses increasing by £4.43 million, from £9.96 million in 2019/20 to £14.39 million in 2020/21;

·         The appendices to the report highlight that the LA may trigger an investigation from the DfE due to the number of schools holding excess  revenue and deficit balances.  However, for a number of schools that were holding a surplus above 15% there were reasons for this, e.g. they would be undertaking a capital funded project in the year to be able to achieve works at the school and they would not appear on the surplus balance list in the next financial year;

·         The LA would continue to work with the schools in deficit to come up with a recovery plan; and

·         Due to the restrictions imposed, because of Covid 19, the 2020/21 financial year was not a normal operating year for schools. Schools were fully funded during this period and faced restrictions regarding occupancy and delivery of teaching which might explain in part the increase in the net revenue balances from 2019/20 to 2020/21 of £5.2 million.

Resolved:

That Schools Forum note the report.