Some schools in Newtown with savings in the bank could be punished for their prudence and be forced to pay the money back to the council.
At Friday’s Learning and Skills Scrutiny Committee, Powys County Council members will be looking at the finances of the county’s schools.
While 28 schools are facing budget deficits, 65 are in the black many of those could be paying back the money they have saved for a rainy day or will be assessed whether they need to do so.
The scheme says that primary schools need to have more than £50,000 surplus and secondary schools more than £100,000.
This money would then go back into the general education funding pot.
In total the extra money being held in these schools totals £2,262 million this year which is only slightly down from the £2,267 million last year (2018/19)
But there are nine less schools with surpluses.
The report states: “Governing bodies holding planned cumulative surplus balances in excess of that detailed in the scheme are liable for claw back. There are 16 schools that meet the criteria.
“These schools will be written to asking for details as to why this occurred and the planned use so that a claw back decision can be made at the end of the summer term.”
Of the 65 school – 14 are already subject to paying money back.
Some schools are in both lists having to explain why they have money behind them and already paying money back.
The report add: “These schools will be written to and asked to provide an explanation as to the reasons for the surplus being in excess of the acceptable levels set out by the scheme for financing schools.
Following the discussion at the scrutiny meeting the finance report will go in front of the Cabinet for a decision on June 18.
Comments from the scrutiny will form part of the advice given to the cabinet.
Need to explain their surplus:
Builth Wells
Buttington Trewern
Guilsfield
Knighton
Llanfair Caereinion
Llanidloes
Montgomery
Mount St CP Junior (Brecon)
Treowen (Newtown)
Welshpool Church in Wales Primary School
Ysgo Bro Tawe (Ystradgynlais)
Ysgol Dafydd Llwyd (Newtown)
Ysgol y Cribarth (Abercrave)
Gwernyfed High School
Newtown High School
Ysgol Penmaes (Brecon).
Already Subject to clawback:
Builth Wells
Guilsfield
Hafren CP Junior (Newtown)
Knighton
Llandinam
Llanfair Caereinion
Llanidloes CP
Montgomery
Mount St CP Junior (Brecon)
Priory Church in Wales School (Brecon)
Sennybridge
Ysgol Bro Tawe (Ystradgynlais)
Ysgol Golwg y Cwm (Ystradgynlais)
Gwernyfed High School
