HOW good or bad will the schools financial position be at the end of the financial year?

On Monday afternoon, November 18, the Learning and Skills scrutiny committee will be briefed on the financial issues that schools could be facing in just a few months’ time.

The members will be told that nearly £2.4 million from Powys County Council’s (PCC)  reserves could be needed to plug the gap.

The report looks at the position from June earlier this year, through to September and forecasting how the finances should look on March 31, 2020, the end of the financial year.

In June the overall prediction was that £3.168 million would be needed from reserves.

The position at the end of September was £2.949 million.

And the hope for PCC is that the closing balance at the end of the year will be £2.366 million.

The report discusses the financial situation for primary, secondary and special schools.

On primary schools the report says: “The call on reserves is now budgeted at £1.088 million (end of September position).

“However he primary schools are currently having financial meetings to review all budget plans.”

According to the report the updated position for use of reserves at the end of the financial year could be £999,000.

On secondary schools the report says: “The sector is now projecting a £1.278 million call on reserves which is £395,000 less than the cabinet (June) position paper predicted.

“Meetings are being held with all secondary schools and the position is updated monthly once the schools have supplied their revised forecast positions.”

The same process is also taking place in the county’s special schools, they predict the need to use £78,000 of reserves from the September position.

This is £87,000 less than was predicted in June.

The report added: “Schools that are still in an unlicensed position have been issued a warning notice and were required to submit recovery plans by September 10.

“These have been reviewed by the authority and the schools and further work is being carried out with them on an individual basis using the team around the school approach.

“Secondary school are required to submit their forecast position each month in line with the requirement of the scheme for financing schools.”

Data in the report also shows that “School Service will be expected to have an overspend of £506,000.”

‘Schools Central’ will have an overspend of £11,000 and the report explains that this is: “due to the need to manage the service during a period of significant senior staffing transition.”

There is also an a forecast overspend for:

  • School Improvement – £39,000.
  • Schools Operational Costs – £205,000.
  • Pupil inclusion – £58,000.
  • Youth Services – £16,000.
  • Schools delegated other – £176,000.