Cate Hart BA(Hons) Ty Du - SBM Consultancy (hart.31@btinternet.com) Sweating your assets Cate Hart BA(Hons) Ty Du - SBM Consultancy (hart.31@btinternet.com)

Generating income from your buildings – fixed overheads

Short case study 2009 – income from lettings - £25k 2009 – cost of keeping school open 7 days for staff and lettings - £30k Something is terribly wrong

What’s the matter? Original site staff were “in charge” of lettings and didn’t want to do them. Site open 7 days per week, but for the odd teacher in evenings and occasional letting Cash in hand taken from some lessees for ad hoc lettings

Take action Opportunity to re-arrange site staff shifts (include non sociable pay in calculations) Appoint lettings manager Market the building; local clubs, filming sets, churches, weekend schools, drama clubs, sports etc. Write a policy; who, when, how much, where, monitoring, insurance. Consult staff – their classrooms will be used, offer redecoration out of profits! Previous school hosted Love Actually, Prime Suspect.

Benefits to school Film makers generally like to involve students as extras, or help with filming. (Love Actually, Prime Suspect were filmed at a school I worked in) Make over or decorating for areas they use Drama schools may offer free places to school’s students Offers of GCSEs in other languages such as Persian Income from fixed assets which are fixed overheads

Open 7 days per week Use a booking system Enter schools events first, they should take priority Arrange new site staff shifts

Policy Aims and objectives – to enhance the community use and promote the school while generating income. Subject to Section 27 of the Education Act 2002, http://www.legislation.gov.uk/ukpga/2002/32/section/27stating prohibited uses Application form for potential lessees It should be stated that governors have the right to refuse an application Write (or find using Google) contract which includes; length of contract, cost, rooms and areas, equipment to be provided, alcohol licensing, who is in charge, H&S, (IT, copiers, sports equipment) monitoring for damage, cleaning, insurance, review period, ending contract notice etc. etc.. Conditions of use Governors should agree who can use the school, no political use, other than as polling station, radical action groups should be avoided.

Finance Write budget including salaries, energy, cleaning, insurance, incidentals. Table of charges for rooms, halls, sports halls, commercial and charity – publish on web site Ensure invoices are raised for ALL lettings and receipts issued Insist on standing orders for long term lets Plan your profit spend – incentives for staff who are not sure about use of room, decorating, resources. VAT – check which lettings attract VAT http://www.academyvat.co.uk/vat-rules-for-academy-schools/lettings-and-property.htm

Insurance Check the lessees insurance policy for Public Liability – keep copy on file If no insurance, add 10% to fee and take out a lettings insurance policy Give copy of your policy to lessees.

Health and Safety Copy of school’s policy to lessee Fire evacuation process for school – lessee to carry out fire drill and paper audit trail kept. Security processes – Can cause tension if more than one organisation is on site at same time.

Equipment use Extra cost? Using network, charging for copiers, where can they store equipment,

Computers, copiers, phones etc Your IT manager should be involved Equipment brought into school should be PAT tested Set codes for copier charges Can phone lines be split with separate billing? Extra cost for use of sports equipment Write inventory and do checks on regular basis

Other income Solar panels – your own or letting the roof, benefits vary according to contract Mobile masts – can be controversial Helicopter landing area for VIPs Microsoft qualifications – buy in a number of certificated places, use some for own staff and sell rest to the community Saturday markets Car parking at weekends

Staff Overstaffed in some areas? Can you sell supply staff to neighbouring school? Use of admin staff across schools Cleaners in more than one school Coordinating lettings for other schools

Main points to consider All lettings must have positive impact on the school No disruption to school life Improvement of environment – not damage to it Extra curricular benefits where ever possible Keep reviewing and report to governors

Any Questions?