Issue - meetings

5.1)  Main Issues reported are:

·  End of 2018/19 there was a net surplus of £22.8m in the maintained schools and extended schools budget; a reduction of £2.6m on the previous year.

·   Schools surplus is now down from £18m to £16m.  Within the net surplus some schools have a surplus above the 15% threshold.  Balances still above 15% after three years can be clawed back.  There are five schools in this situation and they have been asked to complete an application to explain why the surplus is so high. 

·  Schools with a deficit balance of £10k+ have to complete a deficit action plan detailing how the school will recover the deficit within three years.

5.2)  Finance colleagues provide support and challenge to schools at risk and work with them to look at where the risks are and what actions can be taken to get back on track.  Internally, contact is made with counterparts in other local authorities to source best practice.

5.3)  Two schools have a deficit of over £1m and Finance are working very closely with them to provide high support and challenge.

5.4)  The interest on the surplus is absorbed by the Council to assist with cash flow issues on a day to day basis.

5.5)  Initial budget reviews suggest schools will be utilizing their reserves in future years and there is concern that at some point the deficits could impact on overall Council reserves.

5.6)  Future funding is uncertain at the moment so it is difficult to plan a three year funding budget.

5.7)  Some primary schools have taken in a third less children than last year which has an impact on funding.  The ESFA has offered to provide a management advisor to work with schools.

5.8)  Extended services:  The overall surplus balance stands at £6.3m and comes mainly from extended school facilities, clusters and AIPs.  Surplus funds for AIPs are currently being reviewed and can be subjected to claw back.