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© Julie Cordiner https://schoolfinancialsuccess.com
Julie CordinerEducation Funding Specialist
Finance UpdateFinancial leadership in uncertain times
© Julie Cordiner https://schoolfinancialsuccess.com
• CIPFA accountant with 35 years experience in education
• Former Assistant Director of Education 2005-2015
• 8 years as member of DfE school funding advisory group
• Education Funding Specialist, helping schools & academies in financial difficulty and supporting LAs with education budget strategy and reviews
• Co-founder of School Financial Success, blogger and author of school funding guides
© Julie Cordiner https://schoolfinancialsuccess.com
What we’ll cover
• Hot topics
• Preparing for 2019/20 and beyond
• Financial leadership -asserting control in a time of uncertainty
© Julie Cordiner https://schoolfinancialsuccess.com
Hot topics
© Julie Cordiner https://schoolfinancialsuccess.com
School funding crisis
© Julie Cordiner https://schoolfinancialsuccess.com
Getting the basics right
All the things you do for children
Can be overshadowed by problems on the business side
© Julie Cordiner https://schoolfinancialsuccess.com
Common issues in FNTIs
Late submission of accounts
Third party, novel, contentious and
repercussive transactions
Inadequate financial control
Poor governance/ risk management
Lack of transparency
© Julie Cordiner https://schoolfinancialsuccess.com
High profile issues• Executive pay• Pay grants – distribution
mechanism and uncertainty post 2020
• Is DfE making a good case for education in Spending Review?
• Brexit – EU funded projects, contracts, potential impact of earnings threshold on teacher recruitment
• Ofsted inspection of MATs and focus on finance?• Pressure on MATs to grow – impact on SATs?• Parental challenge on SEND - litigation
© Julie Cordiner https://schoolfinancialsuccess.com
Reasons to be cheerful• £830m for TPS contributions increase in
2019/20• #LittleExtras £400m capital boost in
2018/19 (DFC)• £350m extra high needs funding • Opportunity North East: £24m• NE to pilot new teacher recruitment
and retention strategy• Online tool – agency & recruitment• DfE improving IT systems (£560m!)• Support for RI schools (dependent on
budget settlement)
© Julie Cordiner https://schoolfinancialsuccess.com
Preparing for 2019/20 and beyond
© Julie Cordiner https://schoolfinancialsuccess.com
Formula issues to watch out for
• LA formula decisions – values, protection and capping
• Growth factor in the NFF• Impact of new schools – pressure
on formula pot• The mysterious disappearance of
falling rolls funding• Primary low prior attainment
factor turbulence • High needs transfers• Schools Forum meetings
© Julie Cordiner https://schoolfinancialsuccess.com
The real problem:
The NFF is a fairer distribution
of not enough money
© Julie Cordiner https://schoolfinancialsuccess.com
High Needs NFF – an unfair distribution of not enough money
9%
45%23%
5%
5%
4%3%
3% 3%
2019/20 High Needs NFF distribution
Basic entitlement (special)
Historic spend
Population
FSM
IDACI
Children in bad health
Disability
KS2 low attainment
KS4 low attainment
© Julie Cordiner https://schoolfinancialsuccess.com
High Needs tensions
• Increase in EHCPs• More pupils educated in
specialist provision• Higher exclusions• Rise in LA High Needs deficits
• LA High Needs reviews • Education Committee
inquiry• Extra £350m allocated
2018/19 and 2019/20• Impact on your budget
© Julie Cordiner https://schoolfinancialsuccess.com
Impact of LA High Needs reviews?
• Organisational changes – mix of provision• Potential approaches to achieve savings:
• expectation that mainstream schools will take/keep more pupils with SEND and vulnerable learners (VL)
• higher thresholds across all parts of the system• challenge on exclusions/expected to provide or commission
earlier intervention• reviews of top-up funding/banding approaches• some LA services could be reduced or disappear• stronger challenge by LA on how schools spend their notional
SEN budget before paying top ups• Opportunity to expand provision – SEND capital plan
© Julie Cordiner https://schoolfinancialsuccess.com
The view from 2020/21 onwards
• April 2020 – new Spending Review period
• When will Hard NFF be introduced?
• Inflation and contractual issues?• Data changes• Tension between high-stakes
accountability and insufficient funding
• Impact of uncertainty – decision-making paralysis
© Julie Cordiner https://schoolfinancialsuccess.com
The financial leadership toolkit
© Julie Cordiner https://schoolfinancialsuccess.com
A strategic approach
• Your vision and priorities• Anticipating funding changes • To grow, change or
consolidate - risks?• Understand how costs
change with pupil numbers• Deployment of staff• Linking the budget with
development plans• Income generation strategy
© Julie Cordiner https://schoolfinancialsuccess.com
Financial leadership tips
• Focus on what you can control• Try not to worry about what you can’t control• Manage expectations• Awareness raising on finance – SLT and governors• Encourage debate and creative thinking• Avoid knee-jerk responses• Keep informed
© Julie Cordiner https://schoolfinancialsuccess.com
Strategic financial planning
• Multi-year allocations – the missing piece of the jigsaw
• Scenario planning: the benefits Managing expectations,
relieving pressure on you Stimulate a debate and spark
creative solutions Having a plan in place – seize
opportunities for quick wins and early savings
© Julie Cordiner https://schoolfinancialsuccess.com
Forecasting your funding
• Funding: average £ per pupil
• Estimated rolls• Best, middle and worst-
case options for percentage changes across 3 years
• Combine then choose three scenarios
• Add in other funding sources – nursery, post-16, Pupil Premium, SEN funding, other grants
Rolls
Best Middle Worst
£per
pupil
Best 1 2 3
Middle 4 5 6
Worst 7 8 9
• Test out your assumptions• Feed into budget planning
software• Identify savings needed
© Julie Cordiner https://schoolfinancialsuccess.com
Free information – our blog and newsletter
Coming soon: Online courses – what topics would you like to see?Email me at schoolfinancialsuccess@outlook.com
© Julie Cordiner https://schoolfinancialsuccess.com
Questions?
© Julie Cordiner https://schoolfinancialsuccess.com
Julie CordinerEducation Funding Specialist
Finance UpdateFinancial leadership in uncertain times
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