Better buying


Ready for a step change in buying?


Finance Director Hayley Dunn shares her advice for implementing an effective school buying strategy to help keep costs down


rising costs, de cit budget(s), apprenticeship levy, stagnant income, pressure from increasing employee costs, procurement, and numerous options when it comes to suppliers. In January 2017, the DfE produced a


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document called the Schools’ Buying Strategy. The premise is that it will help schools save over £1bn a year on £10bn of non-staf ng costs by 2019-20. The strategy focuses on three core areas: skills and relationships, access to best value, and smart consumers. Vital tools, guidance and support are


already available for schools. These include: Ef ciency matrix tool – based on pupil attainment and income. Top 10 planning checklist – information that school leaders and governors should be aware of in ful lling their part in good  nancial management: staff pay as a percentage of total expenditure; average teacher cost; pupil-to-teacher ratios; class sizes; teacher contact ratios; proportion of budget spent on the leadership team; three- to  ve-year budget projections; spend per pupil for non-pay expenditure lines compared to similar schools; school improvement plan priorities and relative cost of options; list of contracts with costs and renewal dates. Guidance on best practice.


SMARTER BUYING


Consider the best options for buying – is purchasing outright better than leasing or hiring? Use long-term curriculum plans to explore opportunities to save money, to assist the admin team in planning, and to generate ideas for grant applications. Ensure that you have stringent procurement processes in place. Get all proposed contracts reviewed by a suitable commercial legal expert before signing. Accurate and regular contract


54 AUTUMN 2017 FundEd


management is essential. Software products are available to help do this. Keep a track of the essential details of contracts, licences and subscriptions. Details should include length of contract, notice periods, end date, cost, who is responsible, and outline of service. Remember that after-sales contract management is important, too. If you aren’t getting what was outlined in the agreement then highlight your concerns and take appropriate action.


here are many issues that schools face when it comes to buying strategy and managing  nances. These include:


SUBSCRIBER EXCLUSIVE!


FundEd subscribers can read Hayley’s full article online, which includes five ways to improve your buying power. Go to funded.org.uk and log in.


Case studies. National deals – available for energy supply, risk protection arrangement (RPA), MFDs, ICT for Education and Microsoft licences. Salix loan scheme for purchasing energy- ef cient systems. Benchmarking Report Card. Financial health checks structure.


Hayley Dunn has taken on a new role


as Finance Director at Codsall MAT. She is a Fellow of the NASBM, avid Twitter user:


@ShropshireSBM, and blogs at


ShropshireSBM.org


Key initiatives for the future The DfE plans to develop the service further through peer-to-peer support, a regional advice service and access to better deals. There has been a recent advertisement for


a new position within the DfE that will help to support and encourage new school business management groups. It is also planning to: create a Network


Leaders’ Forum; provide assistance with complex buying (through initiating a pilot school buying hub); and expand the support for better deals for schools by launching a pilot scheme for purchasing tools.


Network, network, network! Attend workshops, attend conferences, join a local group (if there isn’t one, consider setting one up!), connect with co-workers, join an association, subscribe to online forums and embrace social media. If you are looking for a local SBM Group, then


NASBM has a handy list online at nasbm.co.uk. When you attend conferences, take a stash of


business cards with you, swap them with other professionals and expand your network.


For further information... gov.uk/government/publications/schools-


buying-strategy gov.uk/government/collections/schools- 


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