FEATURE FOCUS: SCHOOL FINANCE
control, a rigorous assessment of finance and budgeting systems is always worthwhile, no matter what its size. Legacy software presents a risk if it is not
updated and compatible with the latest version of Windows, while spreadsheets are time-consuming to update and are liable to errors. Not only that but staff members often develop their own ways of reporting over the years, so financial reporting lacks consistency. More worryingly still, there can be security
issues if personal details, such as staff salaries and NI numbers, are stored on spreadsheets. Despite being password protected, security can be compromised if these documents are hacked or fall into unscrupulous hands. School leaders therefore need to consider
It is always heartening to see schools, like the
Catholic High School, report such positive results with a system that informs financial forecasting and decision making. At the same time, we should not forget that
many school leaders and finance teams across the country are still grappling with outdated software and spreadsheets, despite being responsible for budgets reaching into the millions of pounds. Unless they have experienced anything
different elsewhere, they may simply accept that it takes hours (or days) to collate figures for a governors’ meeting or design a curriculum in line with current resources and pupil needs. Or perhaps it is simply easier to follow the
same lesson-and-break structure that has been in place for decades, rather than testing different scenarios such as shorter but more intense classes, or running lessons early in the morning or on Saturdays. Major structural change, like becoming an
academy or joining a MAT, often forces the review – and transformation – of existing budgeting and financial planning systems. With greater financial freedom, these
academies need a platform that provides complete visibility of live financial data to avoid overspending and make the most of their funding. It means the leadership team can test the financial impact of different scenarios, such as whether to recruit a part-time or full-time staff member. Rapid ‘what-if?’ scenario planning gives them the confidence to try something new, from introducing Japanese lessons to generating revenue by hiring out the grounds for weddings. Just as academisation is an opportunity for
school leaders to innovate and shape the curriculum, perhaps becoming an arts or technology specialist, so too is it a chance to overhaul outdated back office systems and practices. Perhaps because of funding pressures, or the
fact that they operate more like businesses, MATs are increasingly moving towards shared services. A central team, responsible for procurement,
can leverage its buying power far better than smaller ones purchasing for a single academy. They also benefit from economies of scale when it comes to estate management, marketing, payroll, HR and, of course, finance. As I mentioned previously, this is not a cost-
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cutting exercise but a way of maximising available resources and helping everyone work as efficiently and productively as possible. When MATs get bigger, they cannot manage complex budgets and be financially compliant without the right tools. It is no coincidence that the government is now moving towards automated financial reporting for academies. By transferring data directly from their financial
system to that of the ESFA, they are saving time and ensuring consistent data recording. This, as the DfE points out, will ‘provide richer and more accurate financial benchmarking information allowing academies to compare their finances with other similar academies with greater confidence.’ A shared financial platform not only promotes
compliance and efficiency, it also supports communication across multiple academy sites within a trust. Rather than chasing up HR for the latest sickness absence figures, for example, they can view them via a shared dashboard even if a trust comprises 70 academies. Something as simple as a ‘noticeboard’ on the dashboard brings schools together by encouraging them to share news and best practice, without sending endless emails. Where a school remains under local authority
whether the money saved by continuing to use spreadsheets is worth the number of hours required to manage them, not to mention areas of over-spend such as supply teachers. However, it should go without saying that investing in systems to protect against a GDPR breach, and assist with compliant financial reporting, represents good value for money. Every school, academy and MAT has its own
financial planning challenges to contend with. Alongside the standard budget forecasting and reporting obligations, the finance director of a MAT is responsible for millions of pounds and must oversee complex procurement and staffing processes. A rural school with just a handful of pupils may
have a smaller budget – but without a dedicated finance team, and investment in the right technology, effective planning and monitoring is a struggle. Where responsibility falls to the office manager and headteacher, they need a system that is easy to use, and is accessible from any authorised device, especially if they only log in a couple of times a week. This is particularly useful for those time-pressed headteachers who are catching up at the weekend. Using live financial data to model different
scenarios is a powerful way to get the most value from funding whatever decisions the government makes in the future. Whether or not they are maintained, plan to become an academy or join a MAT, every school should be looking to future- proof its financial operations so that senior leaders are in a position to make decisions that ultimately benefit pupils and staff.
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