Schools forum meeting to discuss budgets and balances

Shropshire Council's School Forum will meet on Thursday to discuss the county's maintained schools and their current budgets and finances.

In a report, which will go to the forum at the meeting, council officer Gwyneth Evans, said the overall balances held by the county's schools has reduced by 12 per cent.

A number of the schools have moved between surplus balances – having left over money – and deficit balances – a debt, or too little money.

She said: "The overall level of school balances held by maintained schools in Shropshire has reduced over the last financial year by £873,637 to a total balance of £6,277,004.

"During the financial year 2016-17, one all-through school and six primary schools transferred to academy status. This takes the total number of Shropshire maintained schools from 128 at March 2016, to 121 at March 2017."

She added that surplus balances have reduced by more than £1,200,000 – however deficit balances have also reduced.

Overall, the deficit balances held by schools has reduced by 43 per cent, following a reduction the previous year of 35 per cent.

She said: "Primary school deficit balances reduced overall by £177,740 (95 per cent) over the 2016-17 financial year.

"The number of primary schools in deficit remained at four, although one school’s deficit balance was as a result of outstanding Early Years funding which was not identified until after the closedown of accounts process.

"The school’s balance would have been recorded as a small surplus had the Early Years funding been accounted for correctly.

Ms Evans added that of the four schools with a deficit, one is because of the outstanding funding, while another has converted to an academy.

She said "appropriate action" is being taken to deal with the further two primary schools struggling with the deficit balances.

The number of secondary schools in deficit reduced from three at March 2016 to two at March 2017.

One moved from a deficit balance to a surplus while the two secondary schools remaining in deficit both reduced their deficits from the previous year, moving them closer to balancing the books.

The report added: "The local authority continues to require schools with deficit balances to report their financial position to the local authority on a termly basis. Termly monitoring meetings are held between the local authority’s School Funding Policy Officer and the schools.

" As and when necessary, headteachers, school business managers and chairs of governors/chairs of finance are called in to meetings with the Commissioner for Education Improvement and Efficiency."

The meeting, which will also discuss grants and control over balances, will be held on Thursday at 8.30am.

It will be held at Shrewsbury Training and Development Centre, in Monkmoor, Shrewsbury.