A total of 81 schools are now running a cumulative budget surplus of nearly £7 million, Powys County Council has said.

The council says the impact of the Covid19 pandemic and and "significant" Welsh Government funding as resulted in the surplus balances, ahead of a budget report set to be considered by cabinet on Tuesday, July 13.

Four schools who were previously subject to a financial "warning notice" due to their poor budget positions have now seen those notices removed, at Welshpool High School, Machynlleth's Ysgol Bro Hyddgen, Crickhowell High School and Ysgol Gymraeg Y Dyffryn Y Glowyr in Ystradgynlais.

However warning notices are still in place for Ysgol Calon Cymru and Ysgol Maesydderwen while the warning notices for Brecon High School and Ysgol Cedewain will be reviewed in the Autumn term.

The report also says there are 14 schools in a deficit balance position with a combined cumulative deficit of £3.7m, but the council says this compares "favourably" with the end of March 2020, where there were 23 schools with a combined deficit of £4.9m.

Cllr Phyl Davies, Cabinet Member for Education and Property, said schools with surplas balances would use the money to provide support to pupils impacted by the pandemic.

"The extraordinary circumstances of the last financial year and the significant amount of Welsh Government funding received during March 2021 has resulted in more schools having significant surpluses," he said.

"Normally, we would be requesting spend plans from those schools that have significant balances. However, due to the continued uncertainty around of impact of COVID-19, this will not be implemented.

"Schools are planning to utilise these surpluses over the next academic year and beyond to provide appropriate support to learners impacted by COVID-19."

Cabinet will also be informed that of the budgets submitted by schools for the new financial year and their indicative budgets, 80 schools were budgeting to be in a cumulative surplus position at the end of March 2022.

However, there are 11 schools that are budgeting to be in a cumulative deficit position at the end of March 2022. Four of these schools meet the criteria within the Scheme for Financing Schools to be a licensed deficit while seven schools did not meet the criteria and are unlicensed according to the scheme.

Cllr Aled Davies, Deputy Leader and Cabinet Member for Finance, said: "Cumulative balances remain a concern and a significant risk to the council but our schools are working well with officers to bring in-year budgets into balance and halt the growth of cumulative deficits.

"The current and projected financial position of our schools continues to be a challenge so it is essential that all governing bodies work with the council to take action to provide a curriculum that can be delivered within the funding provided."