Agenda item

RESOLVED:

1.    That Forum noted the reports.

2.    That Forum agreed a control of 10% of budget on uncommitted balances brought forward for maintained schools.

(Beth Baines)

BB introduced the item and highlighted the following points:

Schools Balances Report

·         Individual schools balances for WNC totalled £9.9m at end of 2020/21 (£7.9m 2019/20) across 73 maintained schools.  £4.5m was committed and £4.5m uncommitted.

·         4 schools were in deficit at the end of 2021/22 (also 4 in 2019/20) with a total deficit value of £180k (£80k in 2019/20)

·         Schools Forum decides on maintained school balance control mechanism.  Previous NCC policy was that excess uncommitted balances above 8% would be clawed back.  Proposed that this continues but with an increase to 10% due to Covid and grant funding provided towards the end of 2020/2.  A vote would be needed for this.  JL as the sole maintained schools representative agreed to the increase.

·         Overall maintained schools balances have increased between the end of 2019/20 and 2020-21 by £2m.  Increases in committed revenue of £1.7m and uncommitted revenue of £0.5m with decreases in capital of £0.01m and community focussed grant.

·         Academies report year end position and reserves at year end through their statement of accounts.

·         Academy balances information currently being worked on.  The 21 academies in WNC reported an unrestricted balance of £3.78m. 13 increased unrestricted reserves balances between 2019/20 and 2020/21, one remained the same and 7 decreased.  All except one were within £50k, so not large compared with their budgets.

·         There are 24 academy trusts which cover 326 academies.  Not all of these are in WNC so difficult to compare.  Unrestricted reserves total £40.5m and only two decreased between 2019/20 and 2020/21.

·         4 maintained schools (6%) were in deficit at the end of 2020/21.  The total value increased by £0.1m to £0.18m.  The Authority is working with schools on financial recovery plans.

·         Of 184 schools in WNC, 111 (60%) are academies and 73 are maintained schools.

DSG Outturn

·         There was an overspend of £3.66m which was 0.5% and an unfavourable movement of £40k from the position reported in March 2021.

·         The deficit will be financed by £2.734m planned contribution from the 2020-21 DSG budget and growth fund recoupment refund from 2017-18 and the remaining £32m from 2021-22 High Needs budgets of WNC and NNC.

·         The net position at the end of 2020-21 is an overall DSG surplus of £6.1m.  There is therefore no requirement from the DfE for a deficit recovery plan.

·         Addressing high needs pressures remains the highest priority within the DSG.

·         JL asked whether the long-standing school support and effectiveness budget could be spent in a positive way in the next year to support schools.  This was noted by BB.

·         PF had received complimentary reports from a school Bursar about the support received from the schools financial advisers.

·         In respect of the annual deficit, PF questioned what plans were in place to ensure this did not run out.  BB advised that this would be addressed at the next meeting.

·         CH emphasised that management of budgets and high needs placements was a high priority.  RH suggested that Early Years providers could give an idea of high needs placement numbers, which CH welcomed.

RESOLVED:

1.    That Schools Forum noted the reports.

2.    That Schools Forum agreed a control of 10% of budget on uncommitted balances brought forward for maintained schools.