Agenda item

·       School Balances - 31/03/2021

·       School Grants – 2021/22

·       Update on ALN Finance Working Party

·       Immersion Education System towards 2032 and beyond

 

                       

i.        SCHOOL BALANCES FOR THE 2020/21 FINANCIAL YEAR

 

This section was submitted by the Schools Group Accountant.

The Welsh Government’s Announcement on School Balances in Wales was shared in full. It was noted that the total Balances in schools in Wales had increased by approximately £150 million in the first year of Covid. It was strongly believed that the main reason for this was that the schools had been closed for periods during the pandemic for a large proportion of the pupils.

It was explained that there was not a single school in Gwynedd in deficit at the end of the last financial year - but that £17 million of negative balances had accumulated throughout Wales in the last financial year. Attention was drawn to the fact that Gwynedd would be in seventh position of the 22 authorities in Wales with the highest balances if the negative balances were disregarded.

 

These were the points arising from the discussion:

-        It was noted that it was necessary to bear in mind that Gwynedd was the second highest of the balances per individual pupil and that it was necessary to consider this in any opinion of the balances. It was proposed that this was a result of the assistance provided by cover and supply teachers to support vulnerable pupils. There was concern about how they would manage the different ways schools would deal with these late grants with some wanting to carry over more balances than others.

-        There was concern that schools had been met with many late grants this year, and it was asked what was expected of the schools when receiving these. It was explained that the Government and Estyn had reported at an ADEW meeting that they recognised that the grants did create false balances. Assurance was given that this was anticipated and therefore it was likely that schools would not be penalised for these figures.

-        Attention was drawn to the fact that the balances had been relatively high before Covid and therefore this needed to be taken into account. It was noted that Education Budgets had been well protected during the pandemic and had not had to face cuts like the rest of the departments, and therefore something needed to be done to improve the balances. It was emphasised, however, that there was no need to completely disregard the impact of the pandemic.

-        There was concern that the financial situation would continue in the years to come and that the late grants contributed to this. It was acknowledged that the Government supported schools with additional expenditure resulting from Covid, but that the implications of this on future balances needed to be considered. There was concern that schools with these balances would be penalised and it would be necessary to justify upcoming expenditures to avoid this.

-        It was explained that there was permanent expenditure on staffing but that grants were not provided to cover this budget.

-        Staffing concerns continued. It was stated that only now were some of the long-term effects becoming apparent, with the main one being how vulnerable pupils were. It was noted in response to this that additional staff were needed to support the pupils, and that this budget would need to be secured for years to come.

-        Frustration was expressed at these late grants and a wish for this to be better planned in the future.

 

RESOLVED - To accept the updates and the report.

 

 

ii.       SCHOOL GRANTS 2021/22

 

Submitted, for information - a report by the Schools Group Accountant, summarising the school grants for 2021/22 announced to date.     

 

It was explained that almost £12 million worth of grants had been received since last summer, and now, extra grants had been submitted in addition to these. It was recognised that this had a major impact on schools' budgets but that it was not acceptable for schools to rely on the additional income from one year to the next. It was noted that a grant such as £3 million to the Primary sector was allocated annually, and should now be given in the settlement.

It was noted that over £1 million of grants had been shared for the benefit of additional learning needs. £385 thousand more was distributed from the foundation phase grant. £300 thousand was distributed from the 'winter of well-being' grant, which was a grant to encourage activities outside the school. A grant of more than £1.1 million was received for the accelerated learning programme from September to March this year, and there would be a further £1.2 million of accelerated learning grant.

 

It was emphasised that although these grants stipulated that they needed to be spent by 31 March, it was not expected for this to happen, and that instead, it was more important to justify reasonable spending. It was noted that Cyngor Gwynedd was taking this into full consideration. It was explained that there was a maintenance Revenue Grant to release resources from one year to the next to support expenditure planning for the future. This was reported to be worth £1.8 million.

 

The sum of £5.5 million was received from Cardiff, and an additional £1 million from GwE which was in addition to the funding given in the summer.

As a result of these additional balances, it was assumed that the balances would be higher this year than they were at this time last year.

It was emphasised that schools needed to consider that they would be using £3.5 million of last year's balances as part of their budgets this year.

It was explained that enormous costs resulted from an increase in the price of contractors and building materials, which meant that building repair and maintenance costs put a strain on settings.

 

RESOLVED - To accept the updates and the report.

 

 

iii.      ALN FINANCE WORKING GROUP UPDATE

 

Submitted by the Assistant Head of Special Needs.

 

          It was shared that the next step in the process was to consult with strategic groups to identify the best options for the budget. It was noted that this consultation would state whether the working group and the Forums agreed on the best allocation for the money. It was said that a consultation would begin with headteachers before Easter.

          It was explained that the implementation would begin in April or September 2023, depending on the outcome and completion of the consultation work.

 

RESOLVED - To accept the updates and the report.

 

 

iv.    IMMERSION EDUCATION SYSTEM

 

          Submitted by the Senior Manager - Schools.

 

          There was a reminder that they would be asking for a contribution from schools to support the work, ensuring that they would co-own the immersion education provision.

It was explained that things had not been able to move as quickly as they would have liked, and therefore they would not currently be asking for a contribution towards the work in 2022/23.

          It was noted that they did not expect to have a head and staff for the structure until September 2022 after having to re-advertise the position. It was said that the establishment of one of the settings had slipped to open in January 2023, rather than in September 2022.

          It was confirmed that the Education Department would be updated if any additional costs arose in the process. It was expected to receive a contribution from the schools from April 2023 onwards, which was a one-year delay on where they were now. It was mentioned that constant updates would be shared and that there would be a firm update by the autumn during the next financial year, whether it was a verbal update or an item on the Forum's agenda.

 

RESOLVED - To accept the updates and the report.