Internal Audit reveals the level of financial deficit at Newtown High School
An internal Audit investigation has highlighted the financial issues at a Powys secondary school that has just come out of an Estyn review category
At a meeting of Powys County Council’s Governance and Audit committee on Wednesday, January 14, councillors and independent lay members will receive the findings of the report by internal auditors SWAP into Newtown High School which also includes the John Beddoes campus in Presteigne.
The report comes to the committee six months after it was completed in July last year.
SWAP said: “The review identified significant gaps, weaknesses, or instances of non-compliance.
“The system of governance, risk management and control require improvement to effectively manage risks to the achievement of objectives in the area audited.”
According to the report the number one priority for the school to tackle is its struggling finances.
The report said: “The main area for concern at the school is the management of the budget.
“The school are operating with an unlicensed budget and there is currently no formalised deficit recovery plan in place.
“The school’s budget is forecast a cumulative deficit balance of £740,000 by the end of 2025/2026, rising to £1.068 million by the end of 2026/2027 and predicted to be £1.73 million by the end of 2027/2028.”
These figures form part of a gloomy financial outlook for Powys schools which would see them cumulatively in deficits of £2.7 million by the end of March, a deficit of £4.4 million by the end of March 2027 and a deficit of £6.7 million by the end of March 2028.
SWAP say that an “action” has been agreed that the: “school will comply with the regulations stipulated on the Scheme of Financing for Schools and produce and deliver an approved balanced budget and recovery plan.”
They add that the “temporary headteachers” at the time were: “working extremely well with the local authority and it is recognised how much they have already done.”
Last month the council’s Cabinet Member for Education, former Council Leader Cllr James Gibson-Watt (Liberal Democrat – Glasbury) welcomed the news that education watchdog Estyn had removed the school from list of schools requiring review.
Estyn review is the watchdog’s “lightest touch” follow up category as it is not statutory.
In 2021 the school was removed from the list of schools in special measures having been in that category for several years.
Just before Christmas the school confirmed that Natalie Havard had been appointed as it’s headteacher.
