EAST Riding schools have been accused of sitting on surplus cash topping £11m, undermining the council's quest for improved government funding.
The revelation comes after East Riding Council warned that the region's schools are facing crisis following the Government's latest funding announcement.
Schools Minister David Laws last week agreed to review cash for East Riding schools, which are to set to be the worst-funded out of 150 areas nationally.
But East Riding education leaders are warning that the council's case will not be helped by figures showing schools had a total of £11.7m in their balances at the end of March.
The East Riding Schools' Forum, whose members include heads, governors and unions, is urging schools not to hoard unspent funds.
Forum chairman Tony Knight said: "Schools need to realise funding is allocated for that year, for that set of pupils, and is not designed as a strategic reserve.
"Heads are exercising too much caution about the future.
"They are doing down those pupils if they don't spend it within the academic year and keep it in reserve."
Mr Knight warned that if schools were hoarding surplus cash, it could damage the East Riding's plea for fairer funding from central government.
He said: "We have nine schools in deficit but we have far more in surplus. The majority are hoarding money.
"The East Riding is making a strong case to the Government for improved funding. We hope it is successful but it does not help if schools have large sums sitting in their balances.
"If they are not spending the money allocated within a year, it is a stick for the Government to beat us with."
Mr Knight said there were certain circumstances when schools may need to keep funds set aside, such as for building work or repairs.
But he insisted schools should not be storing surplus funding.
The forum will now ask the council to consider clawing back excessive balances for redistribution among schools.
The council's scrutiny committee for children and young people will also look at the issue at its meeting in July.
Councillor Kerri Harold, scrutiny committee chairman, said: "We will be looking at the under-spend in every school.
"No school would be spending every penny. Any business, regardless of whether it's a school or not, will, in these times of austerity and unpredictability, have to budget carefully.
"But we want to be sure no school is holding onto money for the wrong reason."
Councillor Julie Abraham, East Riding Council portfolio-holder for education, said: "We are trying to make a case for £9m extra funding from the Government, yet our schools are sitting on £11m."This figure doesn't include academies and I would imagine academies have also got money put aside.
"It's not helpful when we are making a strong case for additional funding.
"We would not expect schools to have no money to carry forward into the next year because we expect them to be budgeting and planning ahead.
"They may be saving money for a specific project and that's fine, but the funds they are provided with should be spent in the year for the education of the children.
"There will be a story behind each school's figures and we cannot jump to conclusions.
"Repairs are commonly needed to roofs and boilers, so schools keep money back.
"The last thing we would want is having to shut a school because the boiler has broken down."
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