Who is in control of education spending?

On Election Day, the DfE published the annual dataset for expenditure by local authorities on children services, including maintained schools. The figures, as they relate to schools, are generally meaningless on a year by year comparison basis as the DfE doesn’t remove the new academies from the previous years’ data when they were still maintained schools.

For children’s social services and youth Justice, the data does have meaning over several years because local authorities still administer these services. However, there are few indicators to link expenditure to demand. In areas such as ‘children taken into care’, where numbers of children have been increasing in some areas this fact isn’t clear from the presentation of the data.

Research by the Reform think tank using this data shows that 28% of local authority maintained secondary schools in England were in the red at the end of 2018-19, with an average deficit of £570,000.

Reform found that since 2010-11, the proportion of local authority-funded secondary schools with no cash reserves has almost doubled. However, this is not surprising since to become an academy a school must normally not have a deficit.

The proportion of primary schools in deficit is smaller at 8%, having increased by 2.1 percentage points over the same period. The study also found “drastic” variations between schools, with 36% of maintained secondary schools having an “excessive surplus” of cash in the bank – on average more than £390,000.

Generally, in 2018-19 the gap between the average surplus and the average deficit has doubled over the period since 2010-11. At the end of 2018-19 there was more than 30 secondary schools with deficits in excess of £1 million. Only six of these schools were in London, with the Boroughs of Croydon and Enfield each containing two such schools. There were no schools in either the East of England or the East Midlands with deficits in excess of £1 million. The West Midlands, on the other hand, had six such schools.

The largest deficit, of more than £3 was linked to a school in West London that has run deficits in excess of £400,000 in each of the last four years, according to the DfE financial monitoring site for schools https://schools-financial-benchmarking.service.gov.uk/school/detail?urn=102449&tab=Balance&unit=AbsoluteMoney&format=Charts#financialSummary Its revenue reserve per pupil were running at a staggering minus £4,614 per pupil at the end of 2018-19. Interestingly, an Ofsted monitoring visit report from October this year doesn’t mention the financial situation at all, so presumably there isn’t seen to be an issue with a deficit of this magnitude? The last full inspection report from October 2018 also fails to mention the financial situation, and any effect it might have on the school’s ability to perform its core function of teaching and learning.

The data on maintained school finances does seem to suggest that there might be a lack of accountability for financial stability and the methods of managing deficits. There seems little point in a National Funding Formula if some schools can drive a coach and horses through the outcomes and rack up large deficits.

What is probably revealed is that some schools need more funding to achieve their aims, and with devolved budgets and governance it isn’t clear who has to take overall responsibility in the present climate.

Urgent action needed

The following are extracts from a Section 8 monitoring report issued today by Ofsted. The school, a secondary school, is part of a multi-academy company and was declared inadequate in May last year by Ofsted. Somewhat surprisingly, Ofsted didn’t return until January 2018.  When they did, they found some good things within the school and some improvements, but to quote for the S8 report:

Although there have been undeniable improvements to safeguarding, behaviour and morale of staff, there are considerable weaknesses at the level of governance and the multi-academy company. These weaknesses have the potential to put the good work of school staff and the pace of improvement in jeopardy.

 However, following the review, the XXMAC and governing body have been slow to improve their effectiveness. It is understandable that directors’ decisions about senior leadership are sensitive, but other statutory duties of the governing body and the company have been neglected (my emphasis)

 Directors and governors have not taken enough responsibility for ensuring that leaders strategically map out the key priorities for iimproving the school. Nor have directors and governors demonstrated how they will evaluate improvements by their impact on pupils’ progress, attendance and behaviour. In short, it is not clear that directors and governors know how to judge what is working in the school and what is not. (my emphasis)

 In addition, XXMAC and governors have not done enough to maintain good levels of communication with parents or involve them more closely in the school’s drive for improvement. In this way, leaders at the highest level are not directly helping to restore the school’s reputation in the local community. 

 This haphazard approach is not helping pupils to achieve their full potential. 

 There is no clear strategy in the school improvement plan for reducing casual and persistent absence. Good attendance is not a high enough priority in the school. 

 However, the support commissioned by the XXMAC is not sufficient to build capacity and establish a common sense of purpose for the school. For example, important decisions about leaders’ roles and the priorities for the future are not being made on the basis of a thorough review of the school’s performance. Instead, decisions are being made on an ad hoc basis, relying upon the goodwill and integrity of current school leaders.

 So, where do we go from here? The previous Chief Inspector was right to argue for inspection of MATs and MACs. Who now takes responsibility for acting upon this damming report; The Regional School Commissioner; the Funding and Skills Council; Ofsted or the Secretary of State? The local authority cannot do so, but someone should be take action by Monday, especially as the school is also still in financial special measures and there were issues raised in the 2017 accounts about the management of financial matters.

If ‘it is not clear that directors and governors know how to judge what is working in the school and what is not.’ Then such a situation must not be allowed to continue. Action this day please.

 

Another Oxford issue

Earlier this week the eyes of the country were on Oxford because of the story about issues with cancer treatments at the Churchill Hospital, the regional oncology centre. Locally, the Oxford Mail, the City’s daily newspaper, had at front page lead with concerns around one of the secondary schools in the city, St Gregory the Great.

Regular readers of this blog will recall a post about ‘a tale of two schools’ from last autumn. St Gregory the Great is a an all-through school under the auspices of a Roman Catholic Multi Academy Company, called the Dominic Barberi MAC. This is a group of Roman Catholic academies in Oxfordshire, of which St Gregory is the only secondary school. It might be described as the classic pyramid model of a MAT.

St Gregory the Great came into being when Oxfordshire remodelled the previous three tier system in the city into a conventional two-tier system in the late 1990s. A ecumenical upper school, St Augustine, was replaced, after heavy lobbying of the then School Organisation Committee by the Roman Catholic Church, with a Roman Catholic secondary school; St Gregory the Great.

For the first decade, the school lived an untroubled life, serving both Roman Catholics pupils and local children whose parents were willing to send them to the school. Problems started with the move towards academisation. The need for more primary provision in that part of Oxford meant a decision to create an all-through school with a new primary department. This resulted in a financial disaster when the school overestimated the funds it would receive from changing its age range. At the same time, absence rates in the secondary school were on the increase, and during a period of falling rolls, the school was not the top choice of schools within Oxford for many parents.

Eventually, in 2016, the government’s Funding Agency put the school in special measures and required a plan to eradicate the deficit. The head teacher was replaced. Eighteen months later the school was declared inadequate by Ofsted. Since then further problems have emerged. Many are of a longstanding nature.

In June 2014, I received the following response to a question at Oxfordshire’s Cabinet about attendance cross the county.

Supplementary:  Responding to a question on whether the Cabinet member would make representations to the school commissioner and Ofsted as to the very high non-attendance at St. Gregory the great school, Councillor Tilley replied that the School Improvement officer had been sent into the school to try and establish the underlying cause of the high absence rate.  She had further requested that an analysis of poor attendance be undertaken on a class by class and year by year basis. This has been successful in improving attendance in the past.  Should this not improve attendance, she would then consider contacting Ofsted?

Attendance fell in 2016-17 (Trust Annual Accounts, page 23) and remains a key issue for the school.

I want to see this school succeed, because it is needed for the pupils of East Oxford, whether Roman Catholics, pupils of other faiths or those of no faith.

However, it isn’t clear that the present system of governance is working. Who has the lead responsibility of turning around academies that are failing?

The regional School Commissioner – no obvious action on his part or interest from the Headteacher Board; the EFSC – since putting the school in special measures it hasn’t cured the ills of the Trust, just cut the deficit at the school and possibly imperilled the education of many pupils as a result?  Indeed the Trust accounts for 2017 point to procurement issues; lack of supporting receipts on credit card expenditure and a lack of timely bank reconciliations and insufficient evidence of review. (Trust Annual Accounts, page 32)

Ofsted – a second school in the Trust has now been declared inadequate, but Ofsted is powerless to act against the Trust as a whole. The Roman Catholic Church – the Church needs to prove it is concerned for the welfare and education of all pupils and is not trying to create a school only for Roman Catholic pupils with no concerns for the other pupils in the area leaving someone else to pick up the pieces. The recent removal of the head and deputy of the school over the Christmas holidays needs to be justified and an explanation as to the experience and expertise of their replacements to deal with the problems facing the school needs to be made clear.

The DfE has issued a statement to the media today saying that they are taking action, but it isn’t clear what they are doing or how they are operating, other than presumably some behind closed door discussions with the Academy Company and presumably the Diocese of Birmingham.

At the heart of this mess is the governance structure for academies and the ability of a Trust to act appropriately for the good of all. After all, only 37% of pupils and 30% of staff at St Gregory the Great are declared Roman Catholics according to the Trust annual accounts (page 21).

I declare an interest as a councillor in Oxfordshire, but one only has to look at the fortunes of the two secondary schools declared inadequate in 2017 by Ofsted for the issues to become glaringly apparent.

As the new Secretary of State was educated in a Roman Catholic school, he needs to tell his officials to sort out the problems at St Gregory the Great and across the school group. Otherwise, Oxford will have two national disaster stories about public service failures at the same time: not a record to be proud of for any government.