Reports are coming in that a number of local authorities have started to receive a letter from the Dept for Children Schools and Families on the subject of unspent school spending.

In essence the letters remind local authority education finance directors of the agreement  introduced two years ago which states that schools must spend the vast majority of their budget each year, by the end of the financial year.   This agreement followed pressure from the National Union of Teachers on the subject.

The letter further suggests that the government will expect local authorities to take firm and clear action to recover all unspent money immediately after the end of the financial year next April.

Several local papers have started picking up on these letters.  Here is what the newspaper in Derbyshire said earlier this week…

“Until now, the council has been happy to allow surpluses to remain where schools have a plausible reason, such as building repairs or projects overlapping from one financial year to another.

“Head teachers have only been challenged if more than 8% of a primary school budget and 5% of a secondary school budget remains at the end of the financial year.

“But pressure from the Government, which has said it will take action if national totals have not fallen by 2011, has prompted the city council to put forward plans to claw back the cash at the end of this financial year.”  (This is Derbyshire, 23 November).

Our understanding is that the new letter removes the 2011 timeline and insists that the money left over, beyond the 5% and 8% limit, must be returned in April 2010 – not one year later as originally (informally) planned.

It also implies that the old system of offering a simple explanation for money held over (“we’re planning to replace the boiler next autumn”) are no longer going to be accepted at face value.

We’re looking into this and hope to have more information soon.  If you have any information on this topic please do write to II@schoolsare.us