Keeping Your Head Above Water

(when all around you appear to be sinking!)

Nigel Blackburn & Debbie Coslett

B&C Consultancy Ltd

Keeping Your Head Above Water

This presentation focuses on how to gain a full understanding of how to lead school financial

management in a time of fiscal decline

1. How to use financial resources efficiently and effectively to achieve the school’s goals and in a way that maximises performance and secures value for money

2. Considering both strategic financial planning and operational budget management

3. How to be entrepreneurial in seeking sources of finance to widen the resource base of the school

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Lord Nash…the future

“Given the state of the public finances we have inherited, this government has done pretty well to

protect the schools budget, but I’m afraid that whichever party wins the next election there will be

further cuts in the public sector.”

“Education in schools has operated in a relatively benign financial climate for a long time. But a new generation of school leaders is going to have to emerge to cut their cloth to drive efficiencies…”

(October 2014)

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Budget cuts

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The Golden RuleAlways remember:

• The allocation of resources should promote the aims and values of the school;

• Resources should be targeted on improving standards and the quality of provision;

• Resources are used to support the varied educational needs of all pupils.

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Task 1

• What are the key financial challenges– Nationally?– For your school?

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Current financial challenges• Flat cash settlement currently

• Central funding does not cover additional pension contributions/NI contributions/national pay rise

• Fiscal reduction going forward

• Chancellor of Exchequer – billions to be saved from education

• Falling rolls at secondary level in some areas

• Increasing primary rolls and no additional space

• Focus on ‘closing the gap’

• Revised STPCD and individual school pay policies

• Revised appraisal and capability frameworks

• Cost effective curriculum v performance tables

• Life without levels

• Academy Trusts and chains….

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Task 2

• What strategies do you employ to face these challenges?

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Successful Leaders meet the challenge by…

1. …spending time scanning the horizon, anticipating change, and preparing for unknown eventualities

2. …taking nothing for granted, and building capacity for flexible and adaptive responses

3. …building capacity on the basis of having a clear appreciation of the impact of individual spending decisions on their wider situation

4. … planning ahead as far as possible, even though they are currently finding it hard to plan on the basis of a secure three-year budget

5. …ensuring staff development assumes a greater importance in equipping people to cope with change and uncertainty.

6. …crucially building trust and confidence at all levels.B&C Consultancy Ltd

Task 3 Pupil Premium

• Do you know where the attainment gaps are in your school?

• Do all your staff know who your Pupil Premium pupils are?

https://www.keytosuccess.education.gov.uk/schools/

• Have you accessed the evidence of what works to accelerate disadvantaged pupil progress?

http://educationendowmentfoundation.org.uk/toolkit/

• How are you planning and targeting your activities for Pupil Premium pupils?

http://www.ofsted.gov.uk/resources/pupil-premium-analysis-and-challenge-tools-for-schools

• How do you know your activities are having an impact?

http://educationendowmentfoundation.org.uk/library/diy-evaluation-guide

• What evidence are you gathering to share with Ofsted? B&C Consultancy Ltd

Successful Leaders meet the challenge by…

1. … having clarity of values and core purpose driving priorities for using the pupil premium.

2. … projecting a strong expectation that they expect everyone – staff, pupils and parents – to be the best they can be.

3. …being highly focused and carefully targeting support to to people in meeting those expectations - providing the right amount at the right time.

4. … proactively monitoring against outcomes the most effective use of the pupil premium

5. …demonstrating astute use of internal and external evidence to guide decision-making.

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Facing the challenges of efficiency, innovation & entrepreneurialism

• Schools need to make significant savings througho collaborative approaches to procurement o by challenging and questioning existing or new contracts

against the value for money for all the services provided

• Schools should indicate that they are looking for immediate efficiencies in procurement and resource use to maximise the available budget

• Schools should make savings from, or cutting, non-essential expenditure

• Leaders should recognise the need for strategic approaches to income generation which ensure that investment in time and energy is directly linked to existing priorities in the school improvement plan.

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Task 4

• What entrepreneurial strategies do you use?

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Successful Leaders meet the challenge by…

1. …understanding that being entrepreneurial or innovative is not just about attracting new funds; it is about ensuring value for money and cost-effectiveness within existing known budgets

2. …encouraging strategies for generating additional funding to be targeted against agreed priorities in the school improvement plan

3. …utilising governor experience and networks, building capacity for increasing value for money and securing additional funding

4. …recognising that securing value for money, alongside academic standards, is becoming increasingly important

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Best Value…aka…Value for Money

• All schools and academy trusts should be working to make savings, spending their funds prudently and looking to maximise their resources to invest in teaching and learning

• Improving efficiency in schools is essential.  All schools should be using their resources in the best way possible to provide a high quality teaching and learning environment for all their pupils

 • Schools and academy trusts have autonomy over the use of their

budgets and so it is for heads, governors and trust directors to determine at school/trust level how to secure better value for money

There are significant variations in efficiency between similar schools and academy trusts, and so it is important for schools to review their current expenditure, benchmark it against other schools/trusts

and think about how to make improvements. B&C Consultancy Ltd

The 3Rs

•The 3Rs…–Resilience –Relentless –Reflection

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The Golden RuleAlways remember:

• The allocation of resources should promote the

aims and values of the school;

• Resources should be targeted on improving

standards and the quality of provision;

• Resources are used to support the varied

educational needs of all pupils.

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Nigel Blackburn & Debbie Coslettenquiries@bandcconsult.co.uk

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