Issue - meetings

11.05am

a)      Councillor John Howson to present a report on school revenues reserves (ESC6);

b)      Frances Craven, Deputy Director – Education and Early Intervention, and Sue Bainbridge, Schools & Learning Manager, to provide further details relating to the report by Councillor Howson.

The Committee received an amended report on the School Revenue Reserve Balances circulated immediately prior to the meeting.

Councillor Howson commented that school finances were moving away from Local Government and into the hands of the schools themselves.  Committee heard that this was having a major impact on schools and ancillary services.  It was noted that academies schools * are now allowed to put money into funding for capital projects, meaning that monies for today’s children is being used on spending for tomorrows children.

It was queried how schools can have more than 10% of their budgets held in reserve, in an authority where over a number of years there had been complaint of underfunding from central government.  It was suggested that a key question for Committee was whether they were  satisfied that schools have sufficient processes in place to ensure that public money is used to provide the best education, and to ensure that swift action can be taken if this is not taking place.  Concern was raised that by saving for tomorrow, schools may be depriving educational outcomes now.  Councillor Waine questioned whether there may be a correlation between the figures of achievement and reserves.

Frances Craven, Deputy Director for Education & Early Intervention confirmed that this was a complex issue as shown by the paper.  Challenge meetings were looking at budgets in terms of improvement; a deficit had been agreed with one school.  With regards to collecting details of reserve balance from Academies, their co-operation would be needed, and this was not the responsibility for the Local Authority.

It appeared that the national picture had been reflected locally with regards to this issue, and there was no correlation of figures in relation to revenue balances and performance of the school.  However, Committee heard that if the budget of the school was not being managed effectively, there was a possibility that neither was the school.

The Committee discussed the use of excessive balances for the improvement of education at the present time, in particular to be able to assist both less able, as well as more able children.  The need to keep sensible balances was acknowledged, and it was discussed whether larger balances should be used.  Encouraging governors to suggest, probe and inspect at grass-roots level was also discussed. 

The Committee considered the changing relationship that needed to be adjusted to; local authorities were no longer in charge of schools, and the public needed to also realise that.  The authority had limited responsibilities now, and did not appoint staff within schools, Head Teachers or inspect school buildings, yet it was recognised that children still needed to be educated, and that this was still a local authority responsibility.

* amendment agreed at the Meeting on 14^th November 2013