certificate of school business management...certificate of school business management workshop tutor...

Inspiring leaders to improve children’s lives

Certificate of School Business ManagementWorkshop tutor notes Managing school finances

Schools and academies

Professional development

Certificate of School Business Management Workshop tutor notes

Contents

Introduction 1

Session 1: Welcome and introduction to the workshop 3

Session 2: Segregation of duties 5

Session 3: Securing best value 8

Session 4: Budget planning for the school improvement plan 12

Session 5: Module assessment requirements 18

Certificate of School Business Management Workshop tutor notes1

Welcome to the tutor notes for the Managing school finances workshop. These notes provide you with guidance related to each session.

Purpose

This workshop is intended to:

− outline the module contents and assessment requirements, and clarify any emerging issues for participants

− explore the significance of the Managing school finances module contents for the professional practice of school business managers

− introduce key concepts and techniques in managing finance in schools

− enable participants to relate these concepts and techniques to their own school setting

Requirements

Participants need to find the following documents at their school and bring them to the workshop:

− school improvement plan (required for session 4)

− school annual budget (required for session 4)

Note that if participants are not involved in the planning process they need to have a conversation with the appropriate staff at their school so that they are aware of the structure of the budget and its relationship to the school improvement plan.

Prior to the workshop, participants have also been asked to conduct a preliminary investigation into the strategic planning for ICT at their school and the procurement of ICT equipment and infrastructure. This is in preparation for session 3.

Resources

− Flip-chart paper and pens

− Blu-tack

− PowerPoint presentation

− Post-it notes

Duration of workshop

3 hours (to include 15 minute tea/coffee break)

Introduction

Certificate of School Business Management Workshop tutor notes 2

Rationale for the workshop

With the introduction of new funding mechanisms which offer schools greater freedom to make their own decisions comes the responsibility to show that they are using sound financial procedures. School business managers are recognised as making a significant contribution to effective financial management in schools.

This workshop aims to explore the key issues in ensuring that:

− probity is maintained during the operation of financial procedures

− principles of value for money (VfM) and best value are applied during purchasing and budgeting processes

− a clear link between budget planning and school improvement planning is established


Purpose

The purpose of session 1 is to introduce participants to the Managing school finances module.

Key messages

− Financial management is a critical element of the SBM role.

− SBMs have a key responsibility in securing the efficient and effective management of school finances.

− The future of the school and its financial security can rest on its strategic decision-making and monitoring systems.

− The purpose of session 1 is to provide an overview of the four units making up the module.

Duration

15 minutes

Session 1: Welcome and introduction to the workshop


Tutor introduction

Tutors introduce themselves and then ask the group to be ready to provide the following information to as many people as possible within 5 minutes:

− Name

− School

− Position

− The first CD, tape or record they ever bought

− Tutor explains aspects of housekeeping.

Slides: 2, 3

Tutor input

Tutor explains aspects of housekeeping.

Tutor explains the purpose and rationale of this workshop.

Provide an upbeat and brisk overview of module contents.

Slides: 4, 5, 6, 7

See: Resource 1: Module overview

Time: 15 mins

00.00

ContentTimings


Purpose

The purpose of session 2 is to raise participants’ awareness of issues relating to probity.

Key messages

− The role of SBM can be quite vulnerable so it is important to ensure that all procedures are transparent and not open to abuse.

− Recognise that other members of staff must be made aware of their responsibilities to abide by agreed school financial procedures.

Links to online module content

Unit 1: The principles of school financial management

Duration

35 minutes

Session 2: Segregation of duties


Tutor introduction

Start session by asking participants to articulate what they understand by the term probity.

If group is reluctant to offer a view be prepared to explain probity in simple terms – Oxford English Dictionary definition being ‘openness and decency’. Ask participants to describe how this is evident in their own school.

Refer to PowerPoint notes (using information from module) regarding definition of probity, Nolan committee report on standards in public life (seven principles).

Lead group through: financial roles, responsibilities and accountability (see Resource 2).

Slides: 8, 9

See: Resource 2: Financial roles, responsibilities and accountability

Time: 5 mins

Activity 1: Financial systems in school

Ask group to work in pairs to discuss:

What are the strengths of the financial systems in your school?

What are the weaknesses of the financial systems in your school?

Slide: 10

Time: 5 mins

Tutor input

Invite feedback from each pair and, using the flip-chart, compile two lists which collate the identified strengths and weaknesses.

Time: 5 mins

00.15

ContentTimings


Activity 2: Segregation of duties

Introduce the concept of segregation of duties and introduce the text ‘segregation of duties’ (Resource 3).

Ask participants to read the text whilst considering the following question:

− What are the implications for establishing viable procedures for the segregation of duties in a variety of settings?

Participants then work in trios to discuss the principles behind the segregation of duties, and the challenges of implementing them in practice.

Functions that should be separated include the following:

− authorisation: the authorisation of a transaction, such as a purchase order or a payment

− execution: the placing of an order, receiving of goods and services, or charging and receipt of a fee

− custody: the holding of the goods or receipt of services

− recording: checking the invoice and completion of the accounting records

Slides: 11, 12, 13

See: Resource 3: Segregation of duties

Time: 15 mins

Tutor input

Take feedback from trios and as a whole group discuss main concerns and identify possible solutions.

Time: 5 mins


Purpose

The purpose of session 3 is to help participants understand the general principles of value for money and best value.

Key messages

− This is a critical element of the SBM role. Whether budgets are expanding or contracting, SBMs are responsible for monitoring budget expenditure and they should have a strategic overview of spending.

− Schools are encouraged to work in partnership; this affords opportunities to consider collective procurement procedures.

SBMs should be aware of financial standards such as Schools Financial Value Standard (SFVF) and comparison standards within Academies


Unit 4: Procurement and value for money

Duration

40 minutes

Session 3: Securing best value


Tutor input

Continue with the message of ensuring probity and link this to the SBM competency framework.

Slide: 14

First section

Managing self and personal skills (strand 3)

Maintain professional values and ethics

Slide: 15

Time: 5 mins

This strand states:

The SBM will ‘act with integrity, honesty, loyalty and fairness, always within the limits of professional competence to safeguard the assets, financial probity and reputation of the school.’

and

Second section

Providing direction (strand 3)

Ensure compliance with legal, regulatory, ethical and social requirements

Slide: 16

This strand states:

The SBM will ‘follow guidelines and instructions to ensure [he or she is] acting with probity and monitors compliance with legal, regulatory, ethical and social requirements across the school.’

Goods and services bought by schools are paid for with public funds. This means that schools not only need to maintain the integrity of public funds, but must also be seen to do so. Slide 17 shows the four distinct aspects that public services must consider when spending public money.

Slide: 17

Time: 3 mins

ContentTimings

00.50


Show National College video clips referring to VfM.

Time: 7 mins

Ask participants how they would define value for money. Flip-chart responses.

Time: 3 mins

Take participants through the 3Es and refer to slide 18.

Slide: 18

Time: 6 mins each

Activity 1: Worst buy?

Ask participants to work in pairs and consider the questions:

− What was your school’s best buy? And why?

− What was your school’s worst buy? And why?

− Take two or three examples from the group.

Slides: 19, 20

Tutor input

Best value includes the concepts of VfM but goes beyond that by taking into account the outcome value achieved over the life of the goods or services. Best value helps to develop a partnership process between key stakeholders that reviews and challenges the use of resources as a means of raising standards and continuously improving performance.

The 4Cs of the best value principle (slide 21).

Slide: 21

Time: 10 mins

ContentTimings


Background to best value: The notion of best value prior to implementation was enshrined within one key

consultation document: Modernising local government: Improving local services through best value (DETR, 1998). This set out four defining elements of best value.

The first was the duty to secure economic, efficient and effective services continuously (the 3Es).

The second required service reviews within which the authority must demonstrate that in the fulfilment of its duties under best value it has: compared its service provision with that of other private and public providers; consulted with local business and the community; considered competition in provision; and challenged the reasons for, and methods of, provision (the 4Cs).

The third defining element introduced a regime of audit and measurement of performance, with the broad expectation that, year-on-year, costs would reduce and quality would increase. Performance would be monitored locally through best value performance reviews (BVPRs), partly through adherence to locally and statutorily determined best value performance indicators (BVPIs), and disseminated annually through best value performance plans (BVPPs).

The fourth defining element of best value outlined the consequences of poor performance: government intervention in cases of best value failure, and reward in cases of success.

Activity 2: Best value in ICT

Many schools have invested an enormous amount of money in improving their ICT equipment and infrastructure. Ask participants to work with someone different and to reflect on the ICT procurement process in their respective schools and identify how their school can demonstrate the principles of best value. In preparing for the workshop, participants were asked to conduct a preliminary investigation into the strategic planning for ICT at their school and the procurement of ICT equipment and infrastructure.

Slide: 22

Tea/coffee break

Time: 15 mins

ContentTimings

01.30


Purpose

The purpose of session 4 is to help participants understand the link between the budget-planning cycle and creating and implementing the school improvement plan.

Key messages

− The SBM has a key role in providing financial information which will contribute to decision-making for the school improvement plan.

− The SBM has an overview of school spending and should be able to identify significant trends or factors that need to be taken into account when discussing the affordability of the school improvement plan.

− The SBM also carries responsibility for monitoring proposed and actual expenditure linked to the school improvement plan.


Unit 2: Planning and setting the budget

Duration

60 minutes

Session 4: Budget planning for the school improvement plan


Tutor input

It is important to stress that confidentiality must be maintained as participants are asked to share or discuss key school documents.

Slide: 23

Make links to the SBM framework:

− Providing direction (strand 2)

− Plan school improvement

Slide: 24

This strand states:

The SBM ‘contributes to the strategic school improvement plan, considers resource allocation and leads some sections of its implementation.’

− Effective use of resources (strand 1)

− Manage financial resources

Slide: 25

This strand states:

The SBM ‘manages budgets and maintains accurate financial information to assist effective monitoring to achieve the school’s educational goals and priorities maximising income through lettings and extended services provision.’

Refer to Resource 4 in the workshop resources which shows ‘The functions and objectives of sound financial management’ (taken from the module). Spend 2 minutes commenting on this structure but do not discuss in great depth. Explain that this session is going to look at the financial planning strand of the model.

Make use of the module material to offer a fairly simple overview of how the school budget supports school improvement planning.

See: Resource 4: The functions and objectives of sound financial management

Time: 10 mins

ContentTimings

01.45


Detailed notes related to slides

Slide: 26

Why budgets are necessary

In schools, the budget is the financial dimension of the school improvement plan. This means that the budget is really a plan that informs and empowers spending decisions and facilitates the achievement of the school’s educational aims.

The school improvement plan considers the school’s mission, aims and educational objectives and how these can be achieved over a three- to five-year period. The budget informs decisions within that plan, about whether or not the school can afford to finance its wishes, usually by defining and quantifying financial resources.

Slide 26 shows the two aspects that the school budget supports:

Day-to-day operations

Development needs

Basic services and resources that the school requires:

Rates, water and energy, grounds maintenance, cleaning, catering, administration services, sufficient staff to teach standard class sizes etc

Services and resources required to support the school’s goals and priorities as laid out in the school improvement plan:

Specialist/extra staff, new resources or equipment to meet changing curriculum needs etc

Savings can be made to these services to ensure efficiency, but the school cannot function without them. The in-year budget must be able to cover these costs.

Funding remaining after day-to-day operations have been allocated will be used to meet the development needs. Prioritisation will probably be required as rarely does a budget meet all the aspirations of the school.


Show video clips from the National College showing how SBMs have been involved in ensuring budget plans are linked to school priorities within the school improvement plan.

Time: 5 mins

Activity 1: How the budget-planning and improvement planning cycles are linked

Divide the group into trios.

Ask participants to share with each other their understanding of how their school budget and planning cycle operate. At this point, ask participants to give a high-level view. Ask participants to draw a timeline on a flip-chart and, using stickies, indicate on the timeline when different types of information for both processes become available and/or are considered. Start the timeline at the beginning of the autumn term.

(Tutor should try to ensure that each trio includes at least one person who is involved in their school’s financial planning processes.)

Slide: 27

Time: 15 mins

Tutor input

Take feedback from the groups and note down some of the key elements that have been identified. This leads on to activity 2.

Time: 5 mins

Activity 2: Factors affecting budget decisions

Ask the same trios to identify some of the factors that are likely to affect budgetary decisions.

Slide: 28

Time: 5 mins

ContentTimings


Detailed notes related to slides

Slide: 29

As a school business manager, it is important to identify the factors that are most likely to affect budgetary decisions and make sure the information obtained is as reliable and accurate as possible.

Factors to consider in the budgetary planning process are closely linked to information gathered for the school improvement plan.

1. Review of past performance: by reviewing past performance against previous budgets, the school can gain a good idea of its cost base, the accuracy of cost estimates, areas where underspends and overspends have occurred, lessons learned from procurement and contract management, and areas where better use could be made of resources.

2. Pupil number forecasts: forecasting pupil numbers as accurately as possible is very important as it has a direct impact on funding, as well as having implications for staffing, curriculum delivery and accommodation. The school should ensure that it utilises all available sources of information, such as census information, local authority information and data, local feeder schools’ information, historic trends and admission policies of its own and neighbouring schools. It is advisable to consider different pupil number scenarios to ensure that baseline funding will be sufficient to meet needs.

3. Curriculum requirements: each school must determine a method for its delivery in terms of resources, staffing and accommodation requirements. A review and comparison of exam or assessment results with projected results during the autumn term provides an indication of which areas of the curriculum may require a change or further financial input.

4. Staffing requirements: identification of changes to the curriculum and projected pupil numbers are used to link the curriculum planning to staff planning. It is important that the staff plan is fully costed, taking into account scale progression, pay rises and projected rises in on-costs. The staffing budget is by far the most significant ongoing cost. The planning stage should reflect possible variations in staffing levels and the effects on the budget.

5. Other resource requirements: all other basic costs, such as heating, lighting, insurance, maintenance of premises, equipment replacement, educational supplies, accommodation strategy and any capital development work, need to be identified.


Activity 3 requires participants to do some preparatory work before attending the workshop. If they are not involved in the planning process they need to have a conversation with the appropriate staff in their school so that they are aware of the structure of the budget and its relationship to the school improvement plan.

Activity 3: Linking expenditure to the school improvement plan

Working individually, ask participants to study their school improvement plan, identifying where reference has been made to financial implications and tracking them within the school budget.

In trios, participants:

− discuss with their trio colleagues how school expenditure decisions are reached in their schools

− discuss whether measures for ensuring VfM and best value have been included within the plan

− decide what measures the school could introduce to identify the impact of spending

Slide: 30

Time: 15 mins

Tutor input

Ask participants to comment upon the key learning they have taken from the session.

Time: 5 mins

ContentTimings


Purpose

The purpose of session 5 is to ensure participants fully understand the module assessment requirements

Duration

15 minutes

Session 5: Module assessment requirements


Tutor introduction

Refer to Resource 5 for information.

Tutor recaps assessment process for the module and explains requirements to complete:

− an assessment task for each of the four units

− a summary of learning covering the whole module

− an online test

Slide: 31

See: Resource 5: Module assessment requirements

Time: 15 mins

Tutor answers any questions.

Thank participants for their attendance.

Session closes

ContentTimings

02.45

03.00

We care about the environmentWe are always looking for ways to minimise our environmental impact. We only print where necessary, which is why you will find most of our materials online. When we do print we use environmentally friendly paper. PB

1058

/CSB

M/t

utor

FIN

AN

CE/0

712

©2012 National College for School Leadership – All rights reserved. No part of this document may be reproduced without prior permission from the National College. To reuse this material, please contact the Membership Team at the National College or email [email protected].

The National College exists to develop and support great leaders of schools and children’s centres – whatever their context or phase.

• Enablingleaderstoworktogether to lead improvement

• Helpingtoidentifyanddevelop the next generation of leaders

• Improvingthequalityofleadership so that every child has the best opportunity to succeed

Membership of the National College gives access to unrivalled development and networking opportunities, professional support and leadership resources.

Triumph RoadNottinghamNG81DHT 0845 609 0009F 0115 872 2001E [email protected] www.education.gov.uk/nationalcollege

An executive agency of the Department for Education

certificate of school business management...certificate of school business management workshop tutor...

Documents