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Schools in Caerphilly will be expected to justify any unspent funding, as a new report shows a collective deficit balance could be recorded this year.

The county borough council’s overall schools budget is currently forecast to be in a deficit of £1.6 million at the year’s end – down from a £1.8 million surplus in April.

Speaking at an education committee meeting, Cllr Teresa Heron asked what the council would do to support schools, given the budget outlook and preparations for a teachers’ pay rise.

Keri Cole, the director of education, said “a number of schools are projecting a deficit” but “most…can also explain how they’re going to recover that very quickly”.

However, “several schools are struggling to manage that” and “will have support” from a school improvement team.

Caerphilly Council uses a so-called “team around the school” system to support those schools struggling with their budgets – which are usually given several years to address any issues.

“It’s rare we can’t find a way forward but it would be fair to say these times are really hard, and probably the most pressure schools have been under,” Ms Cole said.

The committee heard there are also schools in the borough with “very high surpluses”.

“It’s a similar issue – we are holding schools to account for running out of money, [and] we should also be holding schools to account for not spending the money that they have,” Ms Cole said.

“And then we’ll need to look at [whether] they need that amount of money in the first place, because schools have different staffing profiles, different types of buildings,” she added.

Officers will be meeting with “two to three” schools to decide how their funding can be properly allocated, the committee heard.

“We’ve only gone for schools that are in a higher amount of surplus, because schools in a bit of surplus could see something come in next year, they could see numbers falling, so it could be quite prudent,” Ms Cole said.

“We don’t want schools spending recklessly just to bring their balance down either – it’s just as important to speak to those schools as [it is to speak to] schools in deficit.”