PLANS setting out how more than a third of schools in one area of Gwent can bring their budgets back into the black are being examined. 

During the 2023/24 financial year schools in Monmouthshire raided their shared reserve fund for £5.1 million leaving their combined balance in deficit, or overdrawn, by £905,000. 

Of the county’s 33 schools there are 13 in the red meaning they are in a deficit position as they have spent more than they received in funding. 

Monmouthshire County Council has said it has recognised schools have needed additional staff and resources to address provision for pupils with additional learning needs as well as tackle attendance and behaviour. 

Caerwent councillor Phil Murphy warned: “A substantial number of schools are in deficit and some of the comps have wiped out any surplus.” 

The Conservative raised the issue at the council’s governance and audit committee, which was considering the draft statement of accounts for the past financial year, and asked if the council has confidence in the recovery plans the 13 schools in deficit have had to produce. 

The schools were not identified in the report.

Head of finance Jonathan Davies said Cllr Murphy was right to refer to the schools deficit as “one of the key balance sheet risks” and said recent financial reports to the cabinet and scrutiny committees had highlighted that. 

He said: “The reason for these deficits are multifaceted and it’s very difficult to put your finger on one thing.” 

But he said the causes are being examined in work being done to look at the “robustness” of the plans submitted by the schools and will be subject to further reviews in the coming weeks and months. 

Mr Davies added: “All budget recovery plans were due back by the end of July and the process we are going through now is to look at the robustness of those and whether they are realistically able to bring them back into a balance position in an acceptable time frame.” 

The summary accompanying the draft statement of accounts states the intention is to help schools back to “a more sustainable budget plan over the medium term without impacting on educational standards.” 

As well as recognising the increased spending required to address the issues impacting schools the report notes “higher than budgeted pay awards have also impacted upon budgets”.