Schools funding inquiry to take at least four months

Oct 15 2007 by David Higgerson, Liverpool Daily Post

A CITY council investigation of finances at schools believed to be putting too much cash into savings accounts is expected to take at least four months.

Liverpool City Council is also planning to bring in agency staff to cover the workloads of officers being seconded to go into 44 city schools and find out why so much money is being tucked away.

The Daily Post revealed last month that 16 schools in Liverpool were to be investigated for having too much money – 5% of the annual budget in the case of high schools, 8% in the case of primary schools – in savings accounts.

Headteachers have now been told the number of schools falling foul of the percentage regulation – and who have been unable to give a good reason why – has now risen to 44.

As a result, the council now expects the investigation to take longer – and will not know the results until next year.

Officers expect to spend up to half a day in schools talking to senior staff, and have told schools to expect constant telephone and email contact with investigation staff after that.

Gateacre Comprehensive is believed to have the highest level of savings, with £1m in the bank, and is one of the schools being investigated.

The city council has the power to demand "excessive" balances back, and has already asked three schools – St Julie's in Woolton, Broughton Hall in West Derby and Hope special school, in Netherley – for a total of £200,000 back.

If the 44 schools in the list this year cannot justify why they have so much money to one side, and cannot demonstrate how or when they intend to spend, they too could have it taken back. It would then be distributed to other schools.

The Daily Post first revealed the council’s intention to crack down on excessive saving a year ago – when it was thought schools across the city had a combined £15m saved away. That figure is now thought to be nearer £20m.

Executive member for children's services Cllr Paul Clein said: "We accept schools need to put some money to one side to cover certain things, but above a certain point, and if there is no reason for it, it can become excessive."

A spokesman for the Department for Children, Schools and Families said: "Schools may accrue surplus revenue balances from one year to the next in support of strategic, long term, financial planning. However, excessive balances which have no clear purpose are denying educational benefits to today's pupils.”

The Government believes there are at least 60 schools across Merseyside and Cheshire holding back cash.

davidhiggerson