LGB Finance Training

LGB Finance training Gareth Bridges CFOO

The legal framework

• Sets the financial control and governance framework for academy Trust.

• Long list of ‘musts’ – compliance is compulsory • Annual self-assessment process with trustees

The legal framework • Sets out the reporting requirements in Trust’s annual statutory accounts.

• Technical treatment of transactions • Disclosures • Publishing

Statutory accounts • Annual statutory accounts published on Trust website • Signed by Trustees • Externally audited • Clean audit opinion • Going concern

Scheme of delegation • Details where responsibility lies for Trust governance functions - Finance remains a responsibility for Trustees.

- Trustees are legally responsible for the Trust, ensuring it has sufficient funds to meet its obligations - Finance committee receives financial reports detailing overall Trust financial performance and drill down to variances to budget at School level • LGB financial responsibility extends to ensuring value for money is being achieved

Value for money ‘A measure of quality that assesses the cost of the product or service against the quality and/or benefits of that product or service, taking into account subjective factors such as fitness for purpose, along with whole-of-life costs such as installation, training, maintenance and disposal, and wastage.’

Key factors: • Revenue maximisation • Assessing cost of delivery • Assessing quality • Capital investment

Revenue maximisation • Census is key – October census drives funding for following academic year - Watch numbers on roll - Positive promotion of School - Free School Meals • 1 additional child brings at least £3,123 • EHCP/GSP brings additional funds for high needs children • Grants & donations Trust central team support • Long term financial forecasts • Access to additional grants/resources – Covid funding, laptops & routers • Marketing and communications support

Assessing cost of delivery • Payroll accounts for 75% - 80% of total cost - Benchmark costs per pupil across academy sector and within Trust - Review of cost of delivery and sustainability • DfE – Integrated Curriculum Financial Planning model: Average class size Teacher to pupil ratio Teacher contact ratio

Grange 24.56 19.05 0.78

Benchmark 26 20 0.8

Primary School with 9 classes close to benchmarks. In theory: Increase average class size by 1.5 pupils brings in additional 13 pupils and income of £40,599 Increase pupil to teacher ratio reduces teaching staff headcount by 0.55 FTE saving £29,400.

Assessing quality

• Balancing cost v quality.

• Trust has over time been above benchmark for teaching costs, invested available funds in the classroom • Assessment of quality through KPI and Headteacher reports

Capital investment • Schools all having detailed condition survey this summer • Trust receives direct capital funding allocation from DfE annually – circa £1.2m • Trust Capital Investment policy priorities: 1. High condition need 2. Expansion need 3. Environmental improvement • Bids for funding from schools assessed against priorities by Executive team & Trustees

Central team value for money impact • Trust MOU – details what schools receive for the topslice – benefits greater than cost • Financial reporting and advice to Head from allocated Finance Officer • Financial transaction processing • Operation of payroll • HR advice and support • Centralised procurement • Marketing and communications – raising the profile of the School • Management of capital projects and bids • School improvement support • Attendance reporting support • Development of Trust wide CPD