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Newshire School Closure
Background
 The local residents in Newshire have started a
campaign to try and stop the closure of local
schools.
 Councillors claim that their hands are tied and next
year there will have to be cuts in the education and
social sevices budgets.
School closure
Newbridge/
Oldbridge
Primary
• 1 form entry school
• 33-35 pupils a year
• School roll about 260 pupils
Newbridge/
Oldbridge
new dicision
• Expand to 1.5 forms of entry
• Maximum class size was reduced to 30 with 45 pupils in
each year group
• School roll for each school about 350 pupils
Blackbridge
Primary
• 2 form entry school
Possible Options
1. Newbridge will be closed
2. Oldbridge will be closed
3. Blackbridge will be closed
Forecast school numbers
Current
Capacity
Currently on roll
(2002 – 2003)
Estimated
(2003 – 2004 )
Newbridge
Primary
350
280
230
Oldbridge
Primary
350
255
230
Blackbridge
Primary
500
470
480
Existing staffing
Head
Deputy
Head
Assistant
teachers
Part-time
Staff
Newbridge
Primary
1
1
11
5
Oldbridge
Primary
1
1
11
6
Blackbridge
Primary
1
2
16
6
One head is on long term sick leave and being expected to seek early
retirement
Two of the deputy head have applied for posts outside the borough
With a relatively high number of teachers applying for posts elsewhere or
seeking early retirements there will be a need to recruite more staff after
any of the options are implemented
Possible organization for schools
Head
1 form entry
Deputy
Head
Assistant
teachers
Number of
pupils
1
1
7
250
1.5 form entry 1
2
9
350
2 form entry
2
15
500
1
Expenditure required on schools
 Necessary capital would be borrowed with total
charges of £100 p.a per £1000 borrowed
 Cost of providing additional classroom
accomodation( for 150 pupils – from 350 pupil
capacity to 500 pupil capacity
 Newbridge: £200,000
Oldbridge: £250,000
 Other expenditure
Newbridge Primary
Major refurbishment
£400,000
Oldbridge Primary
New heating system
£150,000
Blackbridge Primary
Roof and minor repairs
£80,000
Cost of relocation for pupils and staff
 Travel cost for pupil: £300 p.a per pupil
 Travel cost for teacher:
Travel costs for teachers
Close Newbridge Primary
£15,000
Close Oldbridge Primary
£18,000
Close Blackbridge Primary
£32,000
School budgets
Newbridge
Oldbridge
Blackbridge
Peripatetic teachers
9000
9900
14000
Supply teachers
8000
9000
18000
Ad. & manual staff
80000
75000
111000
Other
6000
7000
9000
Non-domestic rate
3000
3000
4000
Contents insurance
3000
3000
4000
Advertising
2000
2000
2000
Travel
1500
1000
1900
Mainternance contract
4000
4000
5000
Building insurance
2800
2900
3800
Educational supplies
18000
17900
20000
Gas/ electric
7000
7100
9100
Cleaning supplies
1100
1200
1900
Repairs
4500
3300
6500
Expendicture
Premises Expenses
Supplies & services
Direct costs
Question
Q1: Compare the cost of keeping all of the schools
open and the relevant costs and savings of closing
each school and discuss the problems of making a clear
recommendation on financial grounds. You should
include all workings and assumptions in your answer
and identify any other financial information you
require.
The cost of keeping all of
the schools open
£ 506,400
Newbridge
Primary
Expenditure
Peripatetic teachers
Supply teachers
Administrative and
manual staff
Other
Premises Expenses
Non-domestic rate
Contents insurance
Supplies and services
Advertising
Travel
Maintenance contracts
Building insurance
Direct costs
Educational supplies
Gas / electric
Cleaning supplies
Repairs
Total
Oldbridge
Primary
Blackbridge
Primary
Total
9,000
8,000
9,900
9,000
14,000
18,000
32,900
35,000
80,000
75,000
111,000
266,000
6,000
7,000
9,000
22,000
3,000
3,000
3,000
3,000
4,000
4,000
10,000
10,000
2,000
1,500
4,000
2,800
2,000
1,000
4,000
2,900
2,000
1,900
5,000
3,800
6,000
4,400
13,000
9,500
18,000
7,000
1,100
4,500
149,900
17,900
7,100
1,200
3,300
146,300
20,000
9,100
1,900
6,500
210,200
55,900
23,200
4,200
14,300
506,400
Newbridge Primary will be closed
Total cost of keeping all of the schools open 506,400
Total cost of Newbridge closed
Savings
503,500
2,900
Oldbridge
Primary
Expenditure
Peripatetic teachers
Supply teachers
Administrative and manual staff
Other
Premises Expenses
Non-domestic rate
Contents insurance
Supplies and services
Advertising
Travel
Maintenance contracts
Building insurance
Direct costs
Educational supplies
Gas / electric
Cleaning supplies
Repairs
Interest
Travel costs for teachers
Travel costs for pupils of closed school
Total
Blackbridge
Primary
Incremental
cost/Savings
Total
9,900
9,000
75,000
7,000
14,000
18,000
111,000
9,000
(9,000)
(8,000)
(80,000)
(6,000)
23,900
27,000
186,000
16,000
3,000
3,000
4,000
4,000
(3,000)
(3,000)
7,000
7,000
2,000
1,000
4,000
2,900
2,000
1,900
5,000
3,800
(2,000)
(1,500)
(4,000)
(2,800)
4,000
2,900
9,000
6,700
17,900
7,100
1,200
3,300
20,000
9,100
1,900
6,500
146,300
210,200
(18,000)
(7,000)
(1,100)
(4,500)
48,000
15,000
84,000
(2,900)
37,900
16,200
3,100
9,800
48,000
15,000
84,000
503,500
Oldbridge Primary will be closed
Total cost of keeping all of the schools open 506,400
Total cost of / Oldbridge closed
Savings
522,600
(16,200)
Newbridge Blackbridge
Primary
Primary
Expenditure
Peripatetic teachers
Supply teachers
Administrative and manual staff
Other
Premises Expenses
Non-domestic rate
Contents insurance
Supplies and services
Advertising
Travel
Maintenance contracts
Building insurance
Direct costs
Educational supplies
Gas / electric
Cleaning supplies
Repairs
Interest
Travel costs for teachers
Travel costs for pupils of closed school
Total
Incremental/s
Total
avings cost
9,000
8,000
80,000
6,000
14,000
18,000
111,000
9,000
(9,900)
(9,000)
(75,000)
(7,000)
23,000
26,000
191,000
15,000
3,000
3,000
4,000
4,000
(3,000)
(3,000)
7,000
7,000
2,000
1,500
4,000
2,800
2,000
1,900
5,000
3,800
(2,000)
(1,000)
(4,000)
(2,900)
4,000
3,400
9,000
6,600
18,000
7,000
1,100
4,500
20,000
9,100
1,900
6,500
149,900
210,200
(17,900)
(7,100)
(1,200)
(3,300)
68,000
18,000
76,500
16,200
38,000
16,100
3,000
11,000
68,000
18,000
76,500
522,600
Blackbridge Primary will be closed
Total cost of keeping all of the schools open 506,400
Total cost of / Oldbridge closed
Savings
569,200
(62,800)
Newbridg
e Primary
Expenditure
Peripatetic teachers
Supply teachers
Administrative and manual staff
Other
Premises Expenses
Non-domestic rate
Contents insurance
Supplies and services
Advertising
Travel
Maintenance contracts
Building insurance
Direct costs
Educational supplies
Gas / electric
Cleaning supplies
Repairs
interest
Travel costs for teachers
Travel costs for pupils of closed school
Total
Oldbridge
Primary
Incremental
/
Savings cost
Total
9,000
8,000
80,000
6,000
9,900
9,000
75,000
7,000
(14,000)
(18,000)
(111,000)
(9,000)
18,900
17,000
155,000
13,000
3,000
3,000
3,000
3,000
(4,000)
(4,000)
6,000
6,000
2,000
1,500
4,000
2,800
2,000
1,000
4,000
2,900
(2,000)
(1,900)
(5,000)
(3,800)
4,000
2,500
8,000
5,700
18,000
7,000
1,100
4,500
17,900
7,100
1,200
3,300
149,900
146,300
(20,000)
(9,100)
(1,900)
(6,500)
100,000
32,000
141,000
62,800
35,900
14,100
2,300
7,800
100,000
32,000
141,000
569,200
Problem of making a clear recommendation on
financial is Comparing Cost of closing each school
to find out a choice of using lowest cost
Q2: Discuss the importance of non-financial information to
decision making in the public sector generally and to the
decision to close schools.
 Since decisions reached in the public sector entail
balancing differing interests and reaching a consensus. So
users in the public sector are especially interested in nonfinancial information, as it reflects the results and the
effects of policy.
 The reliability and relevance of this information are high.