what you need to know about driving your budget from the school development plan 1 presented by neil...
TRANSCRIPT
What You Need to know about driving your budget from the school development plan
1Presented byNeil Charlton-Jones
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Workshop Objective
“To introduce the concept of driving your budget from the school development plan and to discuss practical ways on how this can be
applied in your school”
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•Why Plan Strategically
•6 steps to strategic planning
•Pitfalls to strategic planning
•Outcomes of strategic planning
•Questions and answers
Workshop Topics
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Background
• Uncertainty in the future funding available• National formula• MFG funding level/Calculation• Delays in funding information• Changes to grants• Academy conversion
• Not all bad news….
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What does planning strategically mean?
Strategic planning is an organisation’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its resource and people.
Can it be done in times of uncertainty?
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Strategic Plan Templar • Introduction• Mission Statement and School Aims• Financial Projections-Base Plan• Assumptions within the Financial Projections• Sensitivity Analysis-”What if Scenarios”• Monitoring & Evaluation• Conclusions and Summary
What data is required to create a strategic plan
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Section - The main areas of
the School Development Plan (Action
points)
Objective / Department -
Key objectives or department
title
Actioned By? – Name or title of staff member who is responsible for delivering this element of the action plan
Monitoring Responsibility – Name or title of staff member who is responsible for monitoring.
Evaluating Responsibility - Individual or group responsible for measuring impact (value for money?).
Timescales - Identifies when the activity will
take place.
Costings - The resources
requirement is identified by term.
CFR / Cost Centre / Ledger Code / Income
Source - Resources can be allocated to
Ledger Code and Cost Centre.
Links with ECM Agenda – ECM
outcomes can be tagged to each
activity.
Success Criteria - This gives a SMART statement in order to measure the success of
each activity.
Effect on Teaching and Learning – Statement of the impact on
teaching and learning as a result of this specific activity.
Priority – Attach priority
order to objectives.
Percentage Complete –Enables the progress to be
monitored.
Activities – Brief
description of each activity.
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• School Improvement Partners• LA Finance Teams• School Leadership Teams• School Business Managers
Greater Collaboration
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Building the remainder of the Financial Projections
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Ensuring Best Value
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Money Saving Staffing accounts for approx 78% of spendSchools spend £9.2bn on other areas including energy, catering and back office. The benefits of effective procurement practices include: •Financial savings that can then be re-invested in your priorities for driving up standards •Ensuring that the goods or services purchased are fit for purpose •Ensuring suppliers deliver (and continue to deliver) as agreed Ensuring legal and financial obligations are complied with.
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• Energy• Administrative Supplies • Cleaning and Caretaking • Telephone and Broadband • Exam Fees • Shared services • Photocopiers
DfE Schools Procurement Resource 2012: Buying for your school
Key areas identified for potential savings
The benchmarking website is a useful tool forschools to check their expenditure level against
peers and to challenge their planning assumptions.
It can be accessed athttps://www.education.gov.uk/sfb/login.aspx
Benchmarking
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Making Finances Fit - Strategy
Examine all other costs, do they represent ‘best value’? Is your starting point reliable?
Ensure that your planned expenditure matches your projected income?
Identify School Development/Improvement Plan Resource Requirements
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Start at the end and work backwards; what are the options? downscale, defer, abolish
Re-examine priorities; what are the short, medium and longer term implications?
Option appraisal (opportunity costs, cost/benefit analysis)
Key Benefits in Strategic Planning• Strategic decision making is closely linked to the budget cycle ensuring
that financial decisions have the greatest impact on educational outcomes.
• Raises staff awareness and widens responsibility and ownership of the school budget & improvement planning
• The budget is subject to consistent and regular monitoring and evaluation of outcomes.
• Ensures that success or failure of investment is clearly identified.
• Ensures that key variables are identified as part of the planning process
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Top 8 Mistakes in Strategic Planning• Data Poor (and Time Rich)• Over Programmed • Failure to Engage • Weak Link to the Financial Plan• Fear of Prioritising • Inadequate Use of Scenarios• Poor Implementation • Impatience
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Summary Always start annual budgeting from development plan agreed
priorities; Zero base v incrementalism; examine existing spending patterns; Plan for problems now; think two or three years ahead; Scenario Planning for different outcomes share budgeting with key people in your team
If you’re not sure where you’re going you’ll probably end up somewhere else.
And finally......
