Tuesday 20 th November 2012

UNDERSTANDING SCHOOLFINANCES

Tuesday 20th November 2012

UNDERSTANDING SCHOOLFINANCES

• INTRODUCTION

Understanding School Finances

Nicholas MartenBusiness ManagerUWC Atlantic College

Nicholas Marten

• Bursar for 24 years• Experience in maintained and independent

sector / day and boarding• Worked with 9 heads!• Former governor of 4 schools• Former Chairman of ISBA

Understanding School Finances

• Finance – the main subjectWhat do we plan to achieve today?• How to read management accounts• Understanding cash flow• Build a vocabulary of terms

Finance

Finance – the main subject

Demystifying the accounts!

Management of finance in schools

• Key part of Bursar’s role• Involvement varies from school to school,

but:– Bursar must have grasp of subject– Head should be able to rely on Bursar in this

area BUT– Head must, however, have an understanding

of the topic!!!

Finance

• Schools as charities• Profit vs surplus• Loss vs deficit• Reserves

Finance

• Management Accounts– Budgetary control

• Monitoring– Monthly or termly

• Reliability• Circulation• Frequency

Finance

• Management Accounts..\IPD finance course - monitor figs.xlsx

Finance

• Budget setting– Timescale– Process

• Who?• When• How

Finances

• Benchmarking– Benchmarking 2011.xls

Finance

• Strategic Development– Planning– Financing– Monitoring– Review

Finance

• Financial Regulations– Purpose– Content - Financial regulations– Review

Finance – Cash flow

£0

£200,000

£400,000

£600,000

£800,000

£1,000,000

£1,200,000

£1,400,000

£1,600,000

£1,800,000

Sep-06

Oct-06 Nov-06

Dec-06

Jan-07 Feb-07

Mar-07

Apr-07 May-07

Jun-07 Jul-07 Aug-07

Fee receipts - 2011/2012

Cash flow

• ..\Oct 12 CASHFLOW xls2.xlsx

Debtors

• Possibly one of the biggest day to day problems facing schools – especially in current climate

• Apart from Health and Safety!

Health and Safety

• Health and Safety

Health and Safety

• Health and Safety – Slight digression – annual H&S awards

Health and Safety Awards

• 6th place

Health and Safety Awards

• 5th place

Health and Safety Awards

• 4th place

Health and Safety Awards

• 3rd place

• The Bursar who is indestructible!

Health and Safety Awards

• 2nd place

Health and Safety Awards

• Runner Up

Health and Safety Awards

• And the winner is…

Health and Safety Awards

• And the winner is…

Debtors

• Possibly one of the biggest day to day problems facing schools – especially in current climate

• Processes - ..\Debt chasing procedure.docx

• Alternatives

Finance

• Debtors– I am determined to stay out of debt, even if I

have to borrow money to do so!

Finance

• Debtors

Debtors

• Reporting to Governors– ..\Aged debtor schedule.xlsx

Finance

• Terms!– SORP– SOFA– Depreciation– Accruals– Balance Sheet– Revenue vs Capital– Cash flow

Finance

• Terms!– Fees in lieu of notice– Creditors / debtors

Finance

• Statutory Accounts ..\arcollege.pdf– Audit process

• External• Internal• Audit Committees

– Reconciliation– Banking relationships– Structure, Governance and Management– RISK

Finance

• Questions?