The Business Advisor (Schools) will present a report, Document IU, which shows the position of revenue balances held by maintained schools at 31 March 2018. The report also provides information on schools’ reporting of surplus balances and a further update on the anticipated volume of conversions of maintained schools to academy status in Bradford and the likelihood of liabilities resulting from the conversion of schools holding deficit budgets.

Recommended –

The Schools Forum is asked to note the information provided.

(Andrew Redding – 01274 432678)

The Business Advisor (Schools) presented a report, Document IU, which showed the position of revenue balances held by maintained schools at 31 March 2018 and an analysis of changes in the position against March 2017. The report also provided information on schools’ reporting of surplus balances and a further update on the anticipated volume of conversions of maintained schools to academy status in bradford and the likelihood of liabilities resulting from the conversion of schools holding deficit budgets.

The Business Advisor reported that the vast majority of maintained schools have so far taken positive action in the management of their budgets. However, he explained that the impact of this action on school standards and on outcomes for children will not immediately obvious when looking at balances and may take some time to be seen. The financial position of school going forward also looks increasingly challenging. These statements were supported by Members, including the Vice Chair, who reinforced that the cut in the value of formula funding in real terms that has taken place, and will continue, will have an impact, and by the Member representing the Teacher Trades Unions, who stated that Unions are meeting with schools weekly to discuss consultations on staffing restructures.

An Academies Member requested that the HNB Steering Group more closely considers the position of balances held in the PRU sector against outcomes. Members discussed the position of balances held by maintained nursery schools. The Business Advisor explained that nursery schools hold monies on behalf of others and for wider purposes (one is a teaching school) and also that, given the current uncertainties on future funding, it may be prudent for these schools to hold a higher level of reserves.

Much of the discussion on balances centred on the position presented for Hanson School. Members expressed their concern, and asked for greater transparency from the Local Authority, in particular, on the action that is being taken to resolve the deficit. An Academies Member, understanding that the position of this school is complicated, expressed a view that there have been other schools in similar challenging circumstances that have managed their budgets.

The Chair summarised the discussion and the expressions of concern by requesting that written statements be provided by the Strategic Director, Children’s Services to the next Schools Forum meeting on Hanson School and the position of the BSF and also that a confidential briefing takes place with the Chair and Vice Chair in advance of this meeting so that there is better understanding of issues that may not be appropriate to discuss in a public meeting.

Resolved -

(1)  That the information provided in Document IU be noted.

(2)  That a statement is provided to the next Schools Forum meeting on the status of the resolution of the BSF contractual issue that is referred to in Document IU.

(3)  That the High Needs Block Steering Group is asked to consider in more detail the position of (and factors behind the change in) surplus balances held in the maintained PRU sector for report back to the Schools Forum.

(4)  That the Strategic Director, Children’s Services, presents a statement to the next Schools Forum meeting, which sets out the Authority’s plan for the resolution of the deficit position at Hanson School. That a briefing on this matter takes place with the Chair and Vice Chair of the Schools Forum in advance of the meeting.

Lead:             Business Advisor (Schools)