SCHOOL FINANCE – KEY PRINCIPLES Monday 2 nd June 2014

SCHOOL FINANCE – KEY PRINCIPLES INTRODUCTION

SCHOOL FINANCE – KEY PRINCIPLES Nicholas Grenfell-Marten Director of College Operations UWC Atlantic College

Nicholas Grenfell-Marten Bursar for 26 years Experience in maintained and independent sector / day and boarding Worked with 9 heads – and I’ve lost count of the deputies! Former Chairman of ISBA

SCHOOL FINANCE – KEY PRINCIPLES What do we plan to achieve today? –How to read management accounts –Understanding cash flow –Reading a balance sheet –Looking for the problems –Vocabulary of terms

SCHOOL FINANCE – KEY PRINCIPLES Schools as charities Profit vs surplus Loss vs deficit Reserves

SCHOOL FINANCE – KEY PRINCIPLES Management Accounts –Budgetary control Monitoring –Monthly or termly Reliability Circulation

Finance Management Accounts Dep Heads finance course - management accounts.xlsx

Finance – Cash flow Management accounts - section

Finance – Cash flow September January April August

Cash flow CASHFLOW

SCHOOL FINANCE – KEY PRINCIPLES Balance Sheet –Assets Fixed Current –Liabilities –Debtors

SCHOOL FINANCE – KEY PRINCIPLES Balance Sheet Balance Sheet example Atlantic College 2013 Accounts SOFA example Difficult balance sheet

SCHOOL FINANCE – KEY PRINCIPLES Debtors

SCHOOL FINANCE – KEY PRINCIPLES School accounting vocabulary –SORP –SOFA –Depreciation –Accruals –Revenue vs Capital –Cash flow

SCHOOL FINANCE – KEY PRINCIPLES More terms! –Fees in lieu of notice –Creditors / debtors –Reserves

Finance Questions?

Nicholas Grenfell-Marten Tel