£900,000 deficit at Mid Wales schools

Powys County Council's cabinet was told that two schools accounted for more than £500,000 of the deficit.

But there was an increase in the reserves to £3.6 million, a £1 million increase on what was forecast.

The number of schools setting unlicensed budgets has fallen from 10 in 2014/2015 to six in 2015/2016.

Initial findings of a review of secondary education in Mid Wales will be considered by Powys County Council in September.

The report by consultancy firm Sbectrwm will include a range of options for consideration, including potentially closing some schools. It will be presented to the authority's cabinet on September 29.

Following the decision by the cabinet on which options to pursue, talks will take place with headteachers, governors and local members of any affected schools.

Business cases will then be considered by the School Organisation Review Panel and draft recommendations will be proposed.

The governing bodies of the affected schools will then be invited to a meeting to give additional evidence before the portfolio holder for education presents a report to cabinet.

At a cabinet meeting on Tuesday, councillors were given an update on progress on the review.

They were reminded that a review of secondary education had started with a particular focus on Welsh-medium/dual-stream education.

Specialists from Sbectrum Consultancy have been commissioned to carry out the review with the aims of determining the need for a Welsh medium Category 2 secondary school or schools in North Powys and to make recommendations about the future configuration of secondary education in North Powys.

Sbectrum has recently completed a round of meetings with six schools and their communities, comments from which will inform the report.

A licensed deficit for primary schools would be a maximum of £50,000, £100,000 for special schools and £150,000 for secondary schools.

The authority's cabinet was told that 27 schools have surpluses in excess of the limits set and they are liable for claw back. It means Powys County Council can direct spending or claim back monies where surplus budgets exceed £50,000 for primary schools and £100,000 for special and secondary schools.

These schools will have to put in a business plan to explain their planned use of the reserves.

Councillor Arwel Jones, the authority's portfolio holder for education, and Councillor Wynne Jones, cabinet member for finance, said that 84 of the county's schools have planned surplus budgets with 15 proposing deficits for 2015/16.

Of these 15, eight schools which includes Hay on Wye County Primary, Llanelwedd Church in Wales, Llangedwyn Church in Wales, Llansantffraid Church in Wales, Rhayader Church in Wales, St Mary's Catholic, Ysgol Glantwymyn and Builth Wells High School, are all projected to return to surplus over the following two years.

Welshpool High School is planning to return to a surplus over five years which is allowable under exceptional circumstances.

But six schools do not meet the rules to have their budgets licensed as their projected balances at March 31 next year exceed the allowable limit.

These schools include Churchstoke County Primary School, Llanbister County Primary School, Llangattock Church in Wales School, Ysgol Dolafon, Llanidloes High School and Ysgol Cedewain Special School.

The headteacher and chairman of governors of these schools will be issued with a letter of concern stating that the budget plan is not in compliance with the scheme, requiring them to take urgent action to remedy the financial position.

Each of them could be called in to scrutiny and they will be advised accordingly.