£9m underspent as schools stash cash

Reporter: Lobby Correspondent
Date online: 08 January 2010

38 Oldham schools not using enough of their budgets

SCHOOLS across Oldham have hoarded almost £9 million away in their bank accounts — money ministers say should have been spent on children’s education.

Official figures released yesterday show 12 secondary schools have failed to spend £2.47 million and 89 primary schools across the area failed to spend a £6.42 million as of the end of the 2008/09 financial year.

Many schools argue left over surplus is often already allocated for forthcoming projects. The figures from the Department for Children, Schools and Families show of the combined £8.9 million surplus, £4.25 million has been allocated.

The DCSF rules allow secondary schools to save 5 per cent of their annual cash handout from their local education authority. Primary schools are permitted to save up to 8 per cent.

Local authorities have powers to claw back the excessive surpluses where the extra cash has not been committed.

In Oldham, there are four secondaries and 34 primaries above the threshold. If the council wanted to claim back the excess cash from the schools they would lose a combined £1.47 million.

Councillor Kay Knox, cabinet member for children, young people and families said: “School surpluses in themselves are not necessarily inappropriate.

“It is important that schools are able to carry forward some of their funds into the following year to enable them to plan ahead and budget for large projects, and ensure a contingency to cover the costs of anything which might come up during the school year which was unforeseen.

“The fact that many schools plan for building projects over the summer break, when children are not on the premises, can mean that balances are higher at the financial year end in March because of planned carry forwards.

“Of more concern are those schools where unplanned carry forwards occur at the end of the year.

“The School Forum, the body with responsibility for allocating school funding locally, monitors surplus school balances closely.

“It has an agreed policy that enables it to remove surplus funds if they are over a certain percentage of their total individual school budget and if there are no specific plans for how the money would be used.

“In primary and special schools this amount is 8 per cent and in secondaries 5 per cent.”

Nationally the amount of surplus has fallen for the first time since 2002. Latest figures for 2008/09 show a £118 million reduction on the amount of cash hoarded compared with last year.

Schools minister Vernon Coaker said despite the reduction, balances are still too high and schools and local authorities must ensure excessive balances are used to improve standards for all pupils.

He said: “Last year we made it clear that we expect schools and local authorities to work to reduce the level of balances by the end of 2010-11.

“If we do not see a substantial reduction of total revenue balances and in particular the excessive balances held by individual schools, the Government will consider further action from 2011-12 to bring the total down to ensure the funding is being spent on improving outcomes for children and young people.”

Schools with too much in the bank (by percentage).

Primaries are allowed 8 per cent and secondaries 5 per cent

PRIMARIES

Bare Trees 10.7

Beal Vale 9.1

Broadfield 12.5

Chadderton Hall 11.2

Coppice 8.1

Delph 9.8

Diggle 8.4

Glodwick 10.3

Greenacres 9.3

Greenfield 12.1

Greenhill 10.9

Higher Failsworth 10.9

Hodge Clough 9.1

Holy Rosary RC 9.6

Knowsley 9.4

Limehurst 12.7

Littlemoor 10.7

Lyndhurst 10.5

Our Lady’s RC 8.0

Royton Hall 16.2

Rushcroft 9.1

St Chad’s 10.9

St Edward’s RC 10.5

St Hugh’s CofE 9.2

St John’s CofE 10.7

St Matthew’s 8.4

St Patrick’s RC 8.7

St Stephen 9.8

St Thomas 7.9

The Parish Church 9.9

Spring Brook 8.4

Thornham St James 13.5

Thorp 12.5

Werneth Infant 15.1

Werneth Junior 50.4

Westwood 9.4

Werneth 18.6




SECONDARIES

Grange 14.2

Royton and Crompton 5.1

St Augustine 5.6