Agenda Item No


The Vale of Glamorgan Council


Cabinet Meeting : 4th January 2012


Report of the Cabinet Member for Education and Lifelong Learning


Scheme to Clawback Surplus School Balances


Purpose of the Report

1.             To seek Cabinet approval for the Scheme.


1.             That the Scheme to Clawback Surplus School Balances be approved and implemented with effect from 1st April 2012.

Reasons for the Recommendations

1.             To ensure the Council has an approved scheme.


2.             The School Funding (Wales) Regulations 2010 were implemented in September 2010 and empowers authorities to direct or clawback surplus balances in full or in part.

3.             The Council's Fair Funding Scheme for Financing Schools has, following consultation with the Schools Budget Forum, been updated to include provision of the new funding regulations.

Relevant Issues and Options

4.             Schedule 4, Paragraph 20 of the Funding Regulations states that:

·               The authority may direct the governing body as to how to spend a surplus in the school balance for a funding period, if:-

·               In the case of a primary school the surplus is £50,000 or more, and

·               In the case of a secondary or a special school the surplus is £100,000 or more;

·               The authority may, if the governing body do not comply with such a direction, require the governing body to pay all or part of that surplus to the authority to be applied as part of their schools budget for the funding period in question.

5.             The scheme to clawback surplus school balances is attached at Appendix A for information.  The clawback option will only be used if schools fail to use their surplus balance or fail to adhere to any direction from the authority to spend.

6.             The scheme sets out the challenges the authority will make and the requirement for schools to submit details of their plans with documentary evidence.

7.             The scheme also outlines how any funding clawed back can be used and the timescales involved.

Resource Implications (Financial and Employment)

8.             Individual schools may have all or part of their surplus balance clawed back.  Any amounts clawed back will be redirected to the overall schools' budget, it can not be used for any other purpose.

Legal Implications (to Include Human Rights Implications)

9.             The attached scheme complies with Welsh Government Funding (Wales) Regulations 2010.

Crime and Disorder Implications

10.        There are no Crime and Disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

11.        All Local Authority maintained schools are subject to the same regulations.

Corporate/Service Objectives

12.        The objectives of the scheme are consistent with the Council's priorities to exercise robust financial management and to explore all opportunities to improve efficiency and collaborative working.

Policy Framework and Budget

13.        This is a matter for Executive decision by the Cabinet.

Consultation (including Ward Member Consultation)

14.        Not applicable.

Relevant Scrutiny Committee

15.        Lifelong Learning.

Background Papers

School Funding (Wales) Regulations 2010

Fair Funding Scheme for Financing Schools

Contact Officer

Ian Teagle

Operational Manager, School Support

Officers Consulted

Paula Ham, Head of Strategic Planning & Performance

Clive Teague, Head of Financial Services

Peter Evans, Director of Legal Services

Responsible Officer:

Bryan Jeffreys

Director of Learning and Development