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Posted by: John Brace | 24th September 2012

Wirral Council breaches expenditure limit by £741,000 and loses out on over £1 million of funding

English: Wallasey Town Hall, Wirral, England a...

Wallasey Town Hall, Wirral, England where the Schools Forum will be held. (Photo credit: Wikipedia)

In a report going to Tuesday’s School Forum (Agenda Item 13) Wirral Council admit they breached an expenditure limit by £741,000 in 2012/2013 (which relates to the Children and Young People’s Department, which has democratic accountability through the Cabinet Member for Children’s Services and Lifelong Learning, Labour Cllr Tony Smith (Upton)).

In addition to this £741,000 needed, a further £333,000 is needed for the “Private Finance Initiative Affordability Gap”, £32,000 needed for “Other” (which is probably a knock on effect of these other changes) and £71,000 extra needed for the Carbon Reduction Budget which brings the grand total required to £1.177 million.

This’ll (assuming the Schools Forum agrees to the change) be made by reducing the Schools Contingency Budget, the Early Years Contingency Budget and the Academy LACSEG central budget.

Basically when a school converts to become an Academy (as some have this year), the new Academy receives what it would before from the Local Authority (in this case Wirral), plus the local authority share of the grant Wirral Council receives from government (this covers the Academy’s costs of things they now have to pay for like assessing eligibility for free school meals, special educational need support services, certain staff costs etc).

However the transfer to the new Academies follows a long process that Wirral Council’s Children and Young People’s Department should have known about at the time of setting the 2012/2013 Schools Budget (earlier this year), which begs the question, why weren’t assumptions that certain schools would become academies factored into the Budget when it was set earlier this year (or is this too much crystal-ball gazing to expect of Wirral Council)?

This means the Indicative Schools Budget will be reduced by 18% to factor in Wirral Council’s overspending and faulty Budget assumptions. Certainly while one expects minor in-year budget adjustments to reflect unforeseen circumstances (usually using reserves set aside for this), these Academy changes have been “on the cards” for some time! If some of Wirral Council’s departments continue to overspend in this fashion (as they have for many years), eventually the cuts in 2013/2014 will have to be more severe, to make up for any 2012/2013 overspend. As we’re already halfway through the 2012/2013 Financial Year, some of that 2012/2013 Budget has already been spent.

P.S. And as if the above wasn’t bad enough Wirral Council lost out on ~£1.6 million of education funding (agenda item 4) because they gave the Department for Education the wrong numbers for Early Years learners, from the report this happened because “this was not identified at the time due to a breakdown in validation checks in Wirral” .


Responses

  1. John I despair at our inept & dare I say stupid council officers who by all accounts cant add up or get returns into the Department for Education either
    on time or accurately. Why is it always WBC who appear to be at fault, are their staff inept or what, when I was working you either got it right or you were sacked the same should apply to council officers & managers & I use the word *managers* in a sarcastic way as thy do not appear to know the meaning of word.

    • “Why is it always WBC who appear to be at fault, are their staff inept or what?”

      Well as pointed out in the report, no other council had seen as large a drop (I presume on a percentage scale) in Early Years numbers as Wirral Council reported, but to fair you always find that out after you submit the numbers.

      Judging by the report there seems to have been a reliance on the Department for Education to tell Wirral Council the numbers submitted were incorrect too!

      The truth is though that education funding is a complex formula, but there are certain things you have to get right so you get the right amount of money such as numbers of pupils in primary, secondary, Early Years etc. An error of a few hundred in such numbers the wrong way can affect your funding by a large amount.

      As to managers knowing, well I’m not totally familiar with the CYPD management structure and the person at the top has recently changed to Julia Hassall. Clearly managers seem to be irate that the DfE won’t accept different figures (and give them more money).

  2. […] “Executive Team” of Council Officers finding out on 4th October… course if the CYPD had submitted the correct figures to the Department for Education then Wirral Council would hav…. Oh well… 53.402022 -3.070415 Share […]

  3. […] I asked wasn’t this partly because Wirral Council lost out on £1.6 million of education funding this year because Wirral Council gave …? […]


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