1. The Ferrers Specialist Arts College
RESOURCE MANAGEMENT
Alison Mayne Tracy Watson
NQT & Training Co-ordinator Business Manager
The Ferrers Specialist Arts College
February 2012

2. Activity 1 - Starter
Think about your own experience of budget management or think about what you know about how the budget is managed in your own school.
Discuss with a colleague from a different phase to yourself.
What are the similarities and differences?

3. Budgets Task: Working in pairs, consider:
How much is the total budget for a typical Primary and Secondary School?
What do you think are the top three costs for a School?
What percentage of the budget do you think these costs might account for?
We will discuss this during feedback.

4. Secondary School Budget
Our College budget is:
£5,238,450
Staff costs are:
£4,366,770
(84%)
Non-staff costs are:
£871,680
(16%)
Can you add on to this what the two biggest non staff costs are so that they have an answer to the previous task
Site costs such as:
Utilities £100K
Cleaning £83k
Repairs and Maintenance £120K
Insurance £36K
Student capitation £192K
Exam costs £145K
External SLA’s £35K

5. Primary School Budget Sample Primary budget: £1,628,521
Staff costs are:
£1,233,524
(76%)
Non-staff costs are:
£394,997
(24%)
This is a budget for a Primary School with 460 students. Its single largest non-staffing cost is Catering buy-back from the Local Authority of £63,000.

6. Departmental Capitation
Usually calculated on a weighted per pupil head basis
Allocated on a 5/12th, 7/12th basis
Difficulties in balancing spending within the financial year, as opposed to the academic year
Carry forward

7. Activity 2 - Scenario You are responsible for a faculty budget.
How would you identify what
to spend it on?
What would you do if you
have more spend than budget?
How would you prioritise?
In pairs

8. Why …?
… is it better not to spend all your budget when you don’t need to?
… might it not be a good idea to buy ICT packages?

9. Best Value / Value for Money?
Benchmarking
Best Value :The Audit commission says that Value for money is a “production process that is both effective and efficient”. FMSIS stated that Best value goes a step further than value for money by developing principles that question and review the school work:
Why are we doing this? Is there a different more effective way to achieve the desired outcome?
What is it we need to achieve ? What investigation has been carried out to identify what is required? Can we evidence this?
Is current methodology the most economical, efficient and effective way to go?
What is best for our stakeholders?
Do we have competitive procedures – are there any better alternatives
Could other organisations carryout the task more effectively or efficiently than ourselves?
Best value provides a framework for the planning, delivery and continuous improvement of local authority services. The overriding purpose is to establish a culture of good management in local government for the delivery of efficient, effective and economic services that meet the users’ needs.
Under best value, each local authority has a duty to "make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness". This improvement involves consideration of costs, making the most of money spent, and making sure that services meet the needs of communities and authorities' priorities
Do you know the difference?

10. Whole School Priorities
Task:
In pairs, rank the list in order of importance against school targets
You can explain your decisions during feedback.

11. Statutory Requirements
Financial Regulations
Timelines
SFVS (FMSIS)
Financial Regulations – NCC has a set of Financial regulation that drive every Financial policy procedure and key controls in schools. They are written by Department for Education and tweaked to Local Authority on behalf of schools and address:
Financial planning – Explains how to format a budget (cash flows, pressures, demographics) medium term planning, resources allocation, Capital programmes ( improvements made on assets buildings or IT) and maintenance of reserves. It is illegal for the council to budget for a deficit and if you think that you school is going to be in deficit contact your school financial advisor as soon as possible.
Financial Management – Budgetary Control, Scheme of virements, treatment of year-end balances, accounting policies( debtor/creditors, fixed assets, depreciation, repaying borrowings, deferred charges, financial relationships with companies, government grants, lease and pensions), accounting records and returns ( how are you going to retain or secure financial documents) and annual statement of accounts ( that link to CFR).
Risk Management and Control of Resources – All businesses have risk it is how you deal with Risk that matters. We can transfer risk, prevent risk, put in measure to treat risk and tolerate risk. Internal/External Audit ( as per the Local Government Act 1972), Prevention of Fraud and Corruption, Assets, Treasury Management (Impress or Petty cash account)and Workforce.
Financial Systems and Procedures – For Income and Expenditure (segregation of duties, limits of expenditure), Taxation, Trading account (proof of best value) and Property Matter
External arrangements – Partnerships (roles and responsibilities), External Funding, Work for other organisations (risk management)
SFVS – The new FMSIS which safeguards public money and providing best value The new School Financial Value Standard will be a self evaluation tool that explains the formal responsibilities within school, lies with the governing body. Governance

12. Monitoring, Evaluation of budget and Outturn
Monitoring – Does the SDP reflect the budget and vice versa? Have the governors and staff complied to all of statutory regulation? Has the procurement process been managed appropriately? Have Curriculum Managers met there expenditure target to raise standards in teaching and learning? Have governors checked the ordering booklets and procedures? Can there be any virement of unspent budgets?
The SBM should continuously monitor the budget income and expenditure throughout the year.
Governors should be given proof of a bank reconciliation at the finance committee. This keeps the accounting system, open and transparent accounting whilst giving them opportunity to ask any timely, valid questions which can be minuted as per the SFVS.
Evaluation
1. Measuring outputs and outcomes -Did you achieve what you wanted? Was it money well spent? What was the alternative? Are we in surplus or deficit?
2. Measuring budgetary processes – Who was involved in the process and did they make a positive contribution? Was the relevant data and information collected? Did timeframes allow full analysis of issues? Was the process understood and adequately communicated?
Outturn - Is the prediction of what you think you may acquire in income or spend in expenditure for the year.
It can be calculated using the 12th. If for example you are in June so month 3 and you know so far you have spend £300 /3=£ *9= =£
BE careful of this sum when making calculations. Be mindful of due dates on bills some come monthly/quarterly/annually. Teaching staff salary due to the increments allocated in September. A service you don’t received in some months like catering.

13. And finally …
What do you want to do next?