The school balances tool has been updated to include three years data up to 31 March 2009. It covers all 150 local authorities in England and provides auditors and councils with key information about how effectively school balances are being managed.
In our 2004 Education Funding report we said that councils needed better information and to be more proactive in their monitoring and challenge of school expenditure. The continuing upward trend in net balances in almost one out of five councils means this should continue to be a priority.
Overall during 2008/9 net balances held by schools decreased in cash terms, and in percentage terms from £1.859 billion (7.1 per cent) to £1.715 billion (6.3 per cent) by the end of March 2009.
Although reductions have been achieved in real terms in 81 per cent of council areas in 2008/9, they have increased in 19 per cent. There are regional differences with Outer London and South East councils showing the largest increases. Appendix 1 gives the full details.
Appendix 1
Number of local authorities where their overall net school balance increased at 31 March 2009 compared to 31 March 2008.
| Region |
LA's in regions |
LA's net balances increased |
% LA's net balances increased |
|
Outer London
|
19
|
7
|
37%
|
|
South East
|
19
|
7
|
37%
|
|
East Of England
|
10
|
3
|
30%
|
|
East Midlands
|
9
|
2
|
22%
|
|
South West
|
16
|
3
|
19%
|
|
North West
|
22
|
4
|
18%
|
|
Yorks and the Humber
|
15
|
2
|
13%
|
|
West Midlands
|
14
|
1
|
7%
|
|
Inner London
|
14
|
0
|
0%
|
|
North East
|
12
|
0
|
0%
|
|
England
|
150
|
29
|
19%
|
The risk assessment tool supports the analysis of school balances by English council, at 31 March 2007, 2008 and 2009, by phase (primary, secondary and special).
An individual council may be selected to compare the position of balances (highlighting overall surpluses and deficits) in its schools with those in similar councils (updated to reflect the new comparator groups), within the region and in the country as a whole.
Full guidance on using the School Balances Tool 2009 can be found within the tool on the 'Notes' sheet.