Concern over schools' finances

Some schools in Newtown and Llanidloes sre in significant deficit financially, with six of the county’s high schools receiving warning notices during the last year because their finances are in such a poor state.

Out of these six, two are over £1million and another is over £720,000 in the red.

Warning notices were also sent to seven primary schools and one special school.

Councillors on the cabinet were told that due to coronavirus, schools have been given more time to submit their budgets plans for the 2020/21 financial year.

In the 2019/20 year the finances for the Secondary School sector in Powys have slipped to an overspend of £3.432 million.

But this is partially offset by the primary school sector which is £2.646 million within budget.

In the last years the finances of the sector have moved from a surplus of £78,000 to a deficit of £910,000.

But this position could have been even worse as  Finance portfolio holder, Councillor Aled Davies, told councillors that they had expected to have to use over £3 million from reserves to bring the budget back into balance.

Cllr Davies, said: “Schools are now collectively reporting an improved position which has reduced the need to draw so heavily on reserves.

“That stands at just under £1 million on their reserves, with £990,000 being used.

“This use of reserves sees school balances moving from a surplus position of £78,000  on April 1 2019 to a deficit of £910,000 at the end of the financial year.

“Most concern is the £3.4 million deficit balance for the secondary sector.”

School budgets have long been a concern for the authority and are seen as a major risk to the entire council’s finances.

In June 2019,  the cabinet had to approve deficit budgets for nearly a third of all schools in Powys with 27 of the 93 schools unable to produce a balanced budget.

Since then staff from the finance department have been working with schools that received warning notices, because of the debt they had run up.

Meetings have taken place with school management teams and governing bodies to discuss how to bring the budgets back under control.

The finance department have scrutinised the plans to bring deficits down and warning notices will not be withdrawn until they see delivery of those plans.

Secondary Schools Finances:

Brecon High School  – £1,618,678 deficit – warning notice
Gwernyfed High School – £280,513 surplus
Ysgol Maesydderwen (Ystradgynlais) – 309,720 deficit – warning notice
Crickhowell High School –  £1,002,764 deficit – warning notice
Ysgol Uwchradd Caereinion (Llannfair Caereinion) – £6,123 deficit
Llanfyllin High School – £87,784 deficit
Llanidloes High School – £62,745 deficit
Ysgol Bro Hyddgen – £162,071 deficit – warning notice
Newtown (inculding John Beddoes campus Presteigne)-  £396,501 surplus
Welshpool High School –  £728,216 deficit – warning notice
Ysgol Calon Cymru (Builth Wells and Llandrindod Wells) – £131,302 deficit, warning notice

Other schools that received warning notices:

Brynhafren County Primaru School  (Crew Green) – £144,431 deficit
Carreghofa County Primary School (Llanymynech) –  £17,895 now in surplus
Llandrindod Wells C P School Cefnllys – £24,811 now in surplus
Llanerfyl Church in Wales Foundation School – £14,098 deficit
Presteigne County Primary School – £25,042 now in surplus
Ysgol Gymaeg Dyffryn Y Glowyr (Cwm-Twrch) – £84,702 deficit
Ysgol-Y- Bannau  (Brecon) –  £17,735 now in surplus
Ysgol Cedewain Special School (Newtown)  £297,296 deficit

 

By Elgan Hearn, Local Democracy Reporting Service