SCHOOL FUNDS 2

Some head teachers believe that retaining surplus funds is important but what about schools that spend all their cash? Only five primary schools in Derby have retained a bare minimum amount of their annual budget this year. Between them, they have just £45,000 in reserve. A further 13 schools have retained up to 5% of their revenue income. They come under scrutiny by the city council when that figure exceeds 10%. While some schools have consciously set aside money year on year and accrued sums in the region of £100,000, Wilmorton Community Primary School, London Road, Alvaston, has just £9,000 in the bank.

Head teacher Simon Emsley is not complaining, because he and the school's governors have chosen to retain just between 1% and 2% of his annual £670,000 budget. While he can understand and accept other schools' decisions to be cautious and prepared for all eventualities, it is not something he could do himself. Mr Emsley believes strongly that money given to him by the Government via the city council to educate this year's pupils should be spent on this year's pupils. Mr Emsley is unwilling to comment on the financial circumstances of other schools but trusts fellow head teachers not to hoard money for the sake of it.

Other primary schools which have retained small balances include Dale Primary, Porter Road (£19,000), and St Joseph's Catholic Primary, Mill Hill Lane (£10,000). Among the city's secondary schools, which are scrutinised by the council if they retain more than 5% of their annual budget, just two have kept less than 1%.

They are Murray Park Community School, Mickleover (£14,500), and Woodlands Community School, Allestree (£15,000).

St Benedict Catholic School, Darley Abbey, has kept back one per cent (£48,000); Derby Moor Community School, Littleover, 1.3% (£54,000 ); and Noel-Baker Community School, Alvaston, 1.7% (£80,000).

Three secondary schools have more than 5% - Lees Brook Community, Chaddesden, 5.4% (£174,617); Bemrose Community School, Uttoxeter New Road, 6.3% (£161,243); and Chellaston School, 7.2% (£295,059).

Keith Howkins, city council education finance officer, said, "We have two city schools that are in deficit - Sinfin Community and Littleover Community - but most of the rest have retained very little. In our experience, it's generally primary schools which retain the most money, while secondary schools tend to spend up each year. The respective budgets of primary and secondary schools can make it look as if more schools in the secondary sector retain money, but the individual budgets are larger." For the first time, the city council is asking schools to account for the money they are saving, and will be able to claw it back if their reasons for doing so do not come up to scratch.

Head teachers are divided over whether they should be able to save the cash or be forced to spend it. The council has been under fire from the Government and other local education authorities for retaining too much cash centrally. This public scrutiny of school finances is the first proper opportunity to show that although it has retained some money centrally for agreed initiatives, if there is any spare money at all, it is in the schools. According to the council, hanging on to money to offset falling pupil numbers or to cover staff shortages is no longer an option if it is not done in a pre-determined way.

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