Agenda item

To consider a confidential report by the Head of Internal Audit (copy enclosed) which provides details of Ysgol Mair’s Financial Recovery Plan.

   

 

A confidential report by the Head of Internal Audit (HIA), which provided details of Ysgol Mair’s Financial Recovery Plan (FRP), had been circulated previously.

 

Members were informed that due to a pending Estyn Inspection at Ysgol Mair the Head Teacher was unable to attend the meeting.  The school was represented by Ms Gilll Greenland, Chair of the Governing Body, and the Chair of the Committee thanked Ms Greenland for attending the meeting.

 

The HIA introduced the report and explained that the Internal Audit report in August had highlighted a financial deficit at Ysgol Mair, and that the School needed to develop a robust FRP.  The HIA confirmed that subject to the implementation of the FRP, Appendix A, the Action Plan within the Audit Report had been progressed.  It was explained that as the proposed FRP involved a significant level of change and meetings had been held with Strategic HR to discuss processes and with Education inform them of proposed actions.

 

Ms G. Greenland provided background details pertaining to the school which included:-

 

-               At no point had the school previously been in deficit.

-               In 2015 the school had been £11k in credit.

-               Surprisingly a £42k deficit had been identified.

-               Problems had emanated following the resignation of the Financial Advisor.

-               The Deputy Head had been assigned to assist a school in Flintshire.

-               The Diocese had agreed to advertise the post of Head teacher.

-               There would be no Deputy Head teacher.

-               The school was located in a deprived area, with some pupils having challenging behaviour.      

-               There had been Union involvement and help provided by HR.

-               An invitation had been received to visit a school in Mochdre which operated without a Deputy Head teacher.

-               Assistance and advice had been received from the School Funding Manager.

        

The Chair congratulated the school on having addressed other issues of concern identified but stressed the need to address the implementation of the FRP.

 

Councillor P.C. Duffy questioned why the financial problems now being experienced had not been identified at an earlier stage, particularly by the School’s Governing Body.  Councillor Duffy explained that he understood that the appropriate policies and procedures had already been implemented previously to prevent such anomalies.  Ms Greenland felt that the main problems had emanated from the School’s Financial Advisor having vacated the post.  The Chair expressed concern that another school which had experienced similar difficulties had not had a Financial Advisor.  He felt this was an issue which should be examined County wide and highlighted need for the provision of robust financial advice and guidance.  The HIA outlined the changes which had now been implemented to the process and emphasised the importance of the role of Finance Managers.

 

Councillor S.A. Davies explained that the nursery provision at the school was not a statutory requirement, and suggested that a substantial saving could be achieved by not providing this facility.  He felt that enhanced advice and information on the financial management of the school was required and would be beneficial.

 

Mr P. Whitham made reference to previous problems which had emanated from the absence of appropriate financial management arrangements, and highlighted the need to examine possible recurring themes and trends.  He stressed the need for assurances that financial arrangements and appropriate mechanisms were in place to avoid any future reoccurrences.  Councillor J. Thompson-Hill outlined the role of Finance Cluster Managers whose remit included flagging up potential problems to the respective Governing Bodies.  Ms Greenland explained that Ysgol Mair was not part of the Rhyl Finance Cluster and it was suggested that this may have contributed to the anomalies experienced.  

 

The Chair emphasised the need to address the issue of Monitoring Ysgol Mair which would involve discussions with HR, in respect of staffing matters with regard to the FRP, and the setting of timescales with a view to reporting back at the commencement of the academic year.  The HIA reminded Members that the FRP was a two year Plan.  Details for monitoring the FRP by the 151 Officer and the Education Planning and Resources Manager were outlined by the officers.  The HLHRDS outlined the remit and monitoring roles undertaken by the School Standards Monitoring Group and the School Budget Forum.

 

The Committee considered the monitoring process and agreed that the School Funding Manager, Education Planning and Resources Manager and Head teacher be requested to attend the September, 2016 meeting of the Committee to provide a progress report in respect of the implementation of the FRP. 

 

With regard to the monitoring mechanisms it was agreed that the Internal Audit process for school finances be re-examined, and the HIA circulate copies to Members of the Committee.  It was agreed that Members views could be presented to the March, 2016 meeting of the Committee and the matter referred to the Scrutiny Chairs and Vice Chairs Group for deliberation.

 

In response to concerns expressed by the Committee regarding the perceived lack involvement and support from the Diocese, it was agreed that the HLHRDS write to the Diocese highlighting the following issues and concerns raised by Members of the Committee:-

 

·                     The Committee having received a report about a FRP in respect of one of their schools.

·                     To question the extent as to which the Diocese provides support and advice to schools and assists with financial issues.

·                     Request for an update in respect of the advertisement for a post within the school.

·                     The provision of details of any other issues of concerns which they might be aware of, in respect of Ysgol Mair or any other Diocese schools in the County. 

 

Following further discussion, it was:-

 

RESOLVED – that:-

 

(a)          the Corporate Governance Committee receive and note the contents of the report.

(b)          the School Funding Manager, Education Planning and Resources Manager and Head teacher be requested to attend the September, 2016 meeting of the Committee to provide a progress report on the implementation of the FRP

(c)          the Internal Audit process for school finances be re-examined, and the HIA circulate copies to Members of the Committee.

(d)          Members views be presented to the March, 2016 meeting of the Committee and the matter referred to the Scrutiny Chairs and Vice Chairs Group for deliberation.

(e)          the HLHRDS write to the Diocese highlighting the issues and concerns raised by Members of the Committee.

       (GW, IB, RW to Action)

 

At this point the meeting resumed to PART I