Agenda item

To consider a verbal report on School Financial Management.

A verbal report on schools financial management arrangements was provided by the Head of Internal Audit (HIA), Education Planning & Resources Manager (EPRM) and School Funding Manager (SFM).

The HIA referred to discussions at the previous meeting relating to the Financial Recovery Plan for Ysgol Mair, Rhyl, and concerns and questions raised by Members regarding Schools Financial Management arrangements and processes, and the role of the Schools Business and Finance Managers.  The Chair expressed concern that schools which had experienced financial difficulties had not had a Schools Financial Advisor, and clarification had been sought on the provision of financial advice and guidance available for schools and details of the processes in place to provide assistance.

The Education Planning and Resources Manager (EPRM) outlined the Structure for Denbighshire Schools, which had a Business and Finance Manager in each of the Secondary Schools who then provide support to their respective feeder schools in their cluster.  He made reference to the WLGA and explained that the process adopted in Denbighshire had been held as a good practice example, and had been viewed as a model for Wales in terms of the procedures and processes adopted.  Reference was made to the future challenges being faced by schools who were experiencing increasing financial pressures.  It was confirmed that the SFM would regularly visit schools in difficulty to provide support and advice, and the support and help from the cluster would assist in addressing problems.  Mr P. Whitham explained that it had been noted that Ysgol Mair, Rhyl had not been part of the Rhyl Cluster.

In response to concern raised by Councillor S.A. Davies regarding the changes in projections, the SFM provided confirmation that projections could change at very short notice for many reasons and he highlighted the difficulties faced in predicting future financial out-turns.  Councillor Davies also suggested that the Diocese be approached with a view to seeking an increase in the level of support and financial assistance for their respective schools.

The Corporate Director: Communities Schools referred to the Statutory Provisions which schools were required to meet which contributed to the difficulties faced when predicting projections, particular reference being made to teacher to pupil ratios, health and safety issues and admission figures. 

The CA informed Members that figures pertaining to demography had been incorporated in the process, and he provided details of the implications of the impact of the Teachers’ Pension Fund on the school budget. 

In response to concerns raised by Councillor P.C. Duffy regarding the level of support provided to Ysgol Mair, the CDC explained that had the officers had been invited to attend the previous meeting a more detailed and rounded prospective of the circumstances could have been provided.  She confirmed that assistance and support, provided by a very proactive and dedicated team, was available for all schools, and that no complaints had been received regarding the level or quality of assistance and support provided.  Members supported the view expressed by the Chair that in the event of any similar cases being brought before the Committee for consideration, the respective officers would be invited to attend.  The EPRM confirmed that support and assistance had been available for Ysgol Mair, and he provided details of the issues and problems which had been experienced at school.

In reply to questions from Members regarding the mechanisms implemented to improve the projections process, the CA explained that although the proposal was to honour protection for School Delegated Budgets it was anticipated that the number of schools experiencing difficulties could increase due to inflationary pressures and the reduction in school balances over recent years which has reduced the level of flexibility.

During the ensuing discussion the Chair confirmed that an update report in respect of Ysgol Mair would be presented to the Committee in September, 2016, and it was agreed that the respective officers be invited to attend.

RESOLVED – that the Corporate Governance Committee agrees that:-

(a)          the report be received and noted.

(b)          officers be invited to attend the September, 2016 meeting of the Committee for consideration of the update report in respect of Ysgol Mair, Rhyl, and

(c)          in the event of any similar cases being brought before the Committee for consideration, the respective officers would be invited to attend

        (IL, CJ, IB to Action)