To be
presented by Kathy Wyn Bell (Group Accountant – Schools).
Report
to follow.
Minutes:
The verbal report was
submitted by the School Group Accountant. Members were guided through the
school balances tables from March 2017 to March 2026, drawing particular
attention to the following:-
· During 2021/22 there had been a significant
increase in school balances, during the COVID period, because of the additional
funding returned and the time when schools were closed for a period, leading to
a significant reduction in costs.
· That there was a decrease in the 2023/2024
balances, and reference was made to a grant received late in 2024 shown in the
2025 balance.
· Of the 94 schools in the county, 7 primary schools
and 3 secondary schools were in financial deficit.
· There was a significant reduction from 2025 to 2026
in the secondary sector in terms of finance.
· That schools were in the process of setting
budgets, and this would highlight the likely level of balances by the end of
March 2027.
· The level of balances was expected to decrease as
several schools were reducing their staff for September because of temporary
contracts not being extended.
· That the level of balances was approaching 5%,
which was a percentage seen as a reasonable level of balances for schools to
have.
· It was highlighted that school balances nationally
fell from £64.9m in 2025 to £11.3m in 2026 and, out of 1,444 schools
nationally, 497 schools were in financial deficit during 2026.
· That the county was facing a reduction in the
number of future pupils, which would lead to greater use of balances until
schools’ weigh-up and gauge how long they can maintain current levels in moving
forward.
· That balances questionnaires had been sent to
schools, with an expectation for any school with more than 5% of balances to
report to the authority on their intentions and what use they made of the
money.
· That the authority had the right, in certain cases,
to instruct schools how to use their balances and withdraw money if they were
not happy with how the money was being used. It was confirmed that since these
rights had come into force, the power has never had to be exercised within the
county.
· That the Departments of Finance and Education
intended to work in conjunction with schools to ensure the best possible use of
the funds available.
During the discussion, the
following observations were made:-
It was questioned whether
one school in debt fed into the figures and made the total balances look
smaller. In response, it was confirmed that the figures reported on the net
position and therefore schools in debt did affect these net figures.
Concern was expressed about
the trend and change in the county's demography and the need for schools to
respond to this pattern moving forward and in workforce planning was
emphasised. In response, it was noted that this was the third year in which the
number of births in Gwynedd had been under a thousand, and therefore there was
a clear pattern, and this raised concerns.
It was emphasised that
while finance has decreased since COVID, balances remained significantly higher
during the 2024-2026 period compared to the pre-COVID period. In response, it
was agreed that this was the case, but the level of balances was expected to
decrease significantly by the end of the current financial year.
It was expressed that it
was immoral for the county to carry so much in its balances, as the money had
been earmarked for the benefit of the pupils. In response, there was an
agreement with this sentiment, but it was noted that the reality of the
situation was that many schools were trying to manage budgets carefully, and
may be holding too much back, resulting in high balances. It was agreed that
the balances were too high, but it was confirmed that they were on the way
down.