monday 2 nd june 2014

SCHOOLFINANCE – KEY PRINCIPLES

Monday 2nd June 2014

SCHOOLFINANCE – KEY PRINCIPLES

• INTRODUCTION

SCHOOLFINANCE – KEY

PRINCIPLES Nicholas Grenfell-MartenDirector of College OperationsUWC 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

SCHOOLFINANCE – 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

SCHOOLFINANCE – KEY PRINCIPLES

• Schools as charities• Profit vs surplus• Loss vs deficit• Reserves

SCHOOLFINANCE – KEY PRINCIPLES

• Management Accounts– Budgetary control

• Monitoring– Monthly or termly

• Reliability• Circulation

Finance

• Management AccountsDep

Heads finance course - management accounts.xlsx

Finance – Cash flow

• Management accounts - section

Finance – Cash flow

£0

£500,000

£1,000,000

£1,500,000

£2,000,000

£2,500,000

September January April August

Cash flow

• CASHFLOW

SCHOOLFINANCE – KEY PRINCIPLES

• Balance Sheet– Assets

• Fixed• Current

– Liabilities– Debtors

SCHOOLFINANCE – KEY PRINCIPLES

• Balance Sheet

Balance Sheet exampleAtlantic College 2013 AccountsSOFA exampleDifficult balance sheet

SCHOOLFINANCE – KEY PRINCIPLES

• Debtors

SCHOOLFINANCE – KEY PRINCIPLES

• School accounting vocabulary– SORP– SOFA– Depreciation– Accruals– Revenue vs Capital– Cash flow

SCHOOLFINANCE – KEY PRINCIPLES

• More terms!– Fees in lieu of notice– Creditors / debtors– Reserves

Finance

• Questions?

Nicholas Grenfell-Martennjm@nicholasmarten.orgwww.nicholasmarten.org

Tel. 07770234946