COUNTY schools are holding millions of pounds in surplus balances that Herefordshire Council wants to get its hands on.

And the county's schools forum has been set the maths test to make it happen.

This exercise in long-term division has to account for academies that can't be bound to any "claw back" scheme that would see surplus balances boosting overall funding for schools.

Academies, though, can still expect a share.

Meeting today (Mon), the forum is expected to agree on putting "claw back" out to consultation.

In October, the forum was told by its own budget working group (BWG) that school balances had increased from £5.5 million at the end of 2012/13 to £6.3m at the end of 2013/14.

This confirmation was contrary to that expected given funding pressures and coming at a time when balances held by schools converting to academies had been subtracted from the total.

The BWG acknowledged that all schools had their own individual circumstances and rationales for the level of balances they were holding.

However, the BWG considered balances of up to 10 per cent of a schools revenue budget seemed a reasonable level to hold.

On the figures analysed, the BWG believed that a number of schools were holding "excessive" balances.

Members of Schools Forum, including academy representatives, are concerned about the growing balances held by the county's remaining council-run  schools.

The council had a claw back scheme in place that was removed in 2010 when related rules were relaxed by the Department for Education.

Under the Education Reform Act (1988) schools had the right - under the introduction of local management - to carry forward balances from one financial year to the next.

Those balances represent sums left over in a school's budget at the end of a financial year.

All councils are required to operate an effective balance control mechanism  to "claw back" excessive surpluses and re-distribute these to other schools.

Excessive balances  can be defined as these over five per cent of budget for a secondary school and eight per cent for primary and special schools - after accounting for spends on specific projects.

The BWG recommends that the forum should consult on the reintroduction of a balance "claw back"  based on greater than five per cent - or £50,000 - of the current year's budget share, greater than five per cent - or £30,000 - of current year budget plus top-up funding for special schools, and greater than eight per cent  - or £30,000 - of the current year's budget for primary schools.

If the related consultation exercise is approved today, a further report could come to the forum by March with a view to implementing claw back in 2015/16

If approved, any claw back would apply to school balances held at March 2016 in order to give schools a minimum 12 month notice.

Academy members on the forum can't vote on the issue and academies cannot be bound to to any scheme - but they can participate on agreement.

However, any claw back becomes part of the direct schools grant - through which schools are funded - should be distributed to all schools and academies.

A claw back scheme is not mandatory and there is no requirement for implementation.

Nor is there any claw back scheme specifically  for academies.

All academies are required to publish their annual accounts although not in the same format as for maintained schools.

 Nearly £3 million was wiped from Herefordshire Council’s fixed assets by just three schools converting to academies over the 2013-14 financial year.

The previous year the conversion  of six schools to academies saw more than £19 million was written out of the council’s balance sheet as fixed asset disposals.

With both foundation schools and academies, the ownership of the school land and  buildings is transferred from the council to the school by issuing a long-term lease at a  peppercorn rent.

The assets are removed from the balance sheet when the legal  agreement is completed.