High school warned over finances

Welshpool High School has been warned to balance its books by Powys County Council after it was revealed that it has a £728,216 deficit.

The school is one of six secondary schools in the county warned over the past year, with two other schools – Brecon and Crickhowell – showing a deficit of more than £1million.

Council cabinet members were told this week that due to Coronavirus, schools have been given more time to submit their budget 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 year, 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 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The finance department have scrutinised the plans to bring deficits down and warning notices will not be withdrawn until they see delivery of those plans.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 (Llanfair 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

By Elgan Hearn, Local Democracy Reporter