Transcript Inspirational School Leaders Group

What You Need to know about driving
your budget from the school
development plan
Presented by
Neil Charlton-Jones
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Workshop Objective
“To introduce the concept of driving your budget
from the school development plan and to
discuss practical ways on how this can be
applied in your school”
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Workshop Topics
• Why Plan Strategically
• 6 steps to strategic planning
• Pitfalls to strategic planning
• Outcomes of strategic planning
• Questions and answers
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Background
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Uncertainty in the future funding available
National formula
MFG funding level/Calculation
Delays in funding information
Changes to grants
Academy conversion
• Not all bad news….
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What does planning strategically mean?
Strategic planning is an organisation’s process of
defining its strategy, or direction, and making
decisions on allocating its resources to pursue this
strategy, including its resource and people.
Can it be done in times of uncertainty?
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Strategic Plan Templar
• Introduction
• Mission Statement and School Aims
• Financial Projections-Base Plan
• Assumptions within the Financial Projections
• Sensitivity Analysis-”What if Scenarios”
• Monitoring & Evaluation
• Conclusions and Summary
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What data is required to create a
strategic plan
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Actioned By? – Name or
title of staff member who is
responsible for delivering
this element of the action
plan
Monitoring Responsibility –
Name or title of staff member
who is responsible for
monitoring.
Evaluating
Responsibility
Individual or group responsible for
measuring impact (value for
money?).
Timescales Identifies when
the activity will
take place.
Section - The
main areas of
the School
Development
Plan (Action
points)
Costings - The
resources
requirement is
identified by term.
Objective /
Department Key objectives
or department
title
CFR / Cost
Centre / Ledger
Code / Income
Source Resources can
be allocated to
Ledger Code and
Cost Centre.
Activities –
Brief
description of
each activity.
Effect on Teaching and Learning –
Statement of the impact on
teaching and learning as a result of
this specific activity.
Priority –
Attach priority
order to
objectives.
Percentage Complete –
Enables the progress to be
monitored.
Success Criteria - This gives
a SMART statement in order
to measure the success of
each activity.
Links with ECM
Agenda – ECM
outcomes can be
tagged to each
activity.
Greater Collaboration
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School Improvement Partners
LA Finance Teams
School Leadership Teams
School Business Managers
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Building the remainder of the Financial
Projections
• Budget Allocations
(LA/Other)
• Other Grant Funding
• Capital Income
• Teaching Staff Costs
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Support Staff Costs
Other Staff Costs
Occupancy Costs
Curriculum Costs
SLA Costs Capital Costs
Ensuring Best Value
• Cost
• Quality
• Service & back up
• Speed of delivery
• Reliability
• Do goods meet the objectives
(fit for purpose)
• Warranties
• Sustainability
• Local Provider
• Support the Environment?
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Money Saving
Staffing accounts for approx 78% of spend
Schools spend £9.2bn on other areas including energy, catering and
back office.
The benefits of effective procurement practices include:
• Financial savings that can then be re-invested in your priorities
for driving up standards
• Ensuring that the goods or services purchased are fit for purpose
• Ensuring suppliers deliver (and continue to deliver) as agreed
Ensuring legal and financial obligations are complied with.
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Key areas identified for potential savings
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Energy
Administrative Supplies
Cleaning and Caretaking
Telephone and Broadband
Exam Fees
Shared services
Photocopiers
DfE Schools Procurement Resource 2012: Buying for your school
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Benchmarking
The benchmarking website is a useful tool for
schools to check their expenditure level against
peers and to challenge their planning assumptions.
It can be accessed at
https://www.education.gov.uk/sfb/login.aspx
Making Finances Fit - Strategy
Identify School Development/Improvement Plan
Resource Requirements
Examine all other costs, do they represent ‘best
value’? Is your starting point reliable?
Ensure that your planned expenditure matches your
projected income?
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Re-examine priorities; what are the short, medium
and longer term implications?
Start at the end and work backwards; what are the
options? downscale, defer, abolish
Option appraisal (opportunity costs, cost/benefit
analysis)
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Key Benefits in Strategic Planning
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Strategic decision making is closely linked to the budget cycle ensuring
that financial decisions have the greatest impact on educational
outcomes.
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Raises staff awareness and widens responsibility and ownership of the
school budget & improvement planning
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The budget is subject to consistent and regular monitoring and
evaluation of outcomes.
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Ensures that success or failure of investment is clearly identified.
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Ensures that key variables are identified as part of the planning process
Top 8 Mistakes in Strategic Planning
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Data Poor (and Time Rich)
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Over Programmed
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Failure to Engage
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Weak Link to the Financial Plan
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Fear of Prioritising
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Inadequate Use of Scenarios
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Poor Implementation
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Impatience
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Summary
 Always start annual budgeting from development plan agreed
priorities;
 Zero base v incrementalism; examine existing spending patterns;
 Plan for problems now; think two or three years ahead;
 Scenario Planning for different outcomes
 share budgeting with key people in your team
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And finally......
If you’re not sure where
you’re going you’ll
probably end up
somewhere else.
Thank You
Thank you – any questions?
Contact
[email protected]
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