Clare Skinner explores why improving public finance transparency in schools and multi-academy trusts is essential to strengthening accountability, rebuilding trust and ensuring funding decisions remain firmly focused on pupils
The focus on finance in schools and MATs usually only follows the narrative of teacher’s pay and disagreement with Unions, what the education sector will receive in any government Budget (although this is rarely a headline announcement) and the increasing demand for woefully lacking SEND provision in the sector. Whilst these are all important, we don’t tend to hear about success stories, rather items such as academies recently being chastised for holding reserves at “too high a level” and then there are the bad news stories of fraudulent activity costing thousands in schools.
Are Funding Levels Reflecting the Reality of Schools Today?
Transparency may need to start at a higher level, could it be said that, if schools only had to provide an education, funding levels today would be adequate. I wonder if we were to add in all the extra things that schools are expected to do, even compared with 20 years ago, has the funding increased to reflect the additional services that schools currently undertake?
It could be said that there is a two-tier system of transparency in the education sector when it comes to how we use our funding. Whilst academies undergo annual financial audits, maintained schools may not see an auditor for years in a row. This could be the first place to start and should certainly be considered given the declining state of some local authorities when it comes to financial management, which results in cut backs and removal of services, seemingly that schools then have to pick up.
Public Reporting: Available but Accessible?
Public reporting is available; school websites have to report on the use of certain grants depending on the age range, trusts report their financial statement and management letters, and executive pay is reported for all establishments. But is it easy to find or do you have to trawl through every page of a school website to locate the data? Maybe a first step would be for government direction on how to label and structure school websites so that financial data can’t be “hidden” through many sub-pages and links – maybe via a single page that covers all financial reporting.
When you do find the data, how easy is it to understand? The language of schools, and its finances are filled with a ridiculous amount of jargon. Schools and Trusts make better use of infographics and pie charts to make financial information truly visible and accessible to all. This would not only be required for external stakeholders but also our staff, our governors, our trustees. How many of our teaching colleagues really understand school funding, how budgets are set, the rules and regulations around procurement that we must follow, why we hold reserves for longer term capital planning, the ICFP metrics that we are asked to aim for? If schools explain the “why” as well as the “what” funds are spent on (not a short conversation I appreciate!) it will make things clearer for all stakeholders.
But this needs to developed as part of the fundamental training for headteachers, governors and trustees and not just seen as an SBP function, we can’t do it alone and sometimes do not hold senior enough positions for our messaging to get through but common understanding of financial pressures, as well as reasons behind process and procedure must be increased.
This goes down to students and parents as well. The expectations of schools to deliver numerous services that are no longer provided by the local authority is extremely challenging, and so are the demands of parents and children in our care.
Transparency as a Commitment to the Public Purse
Schools could make use of DfE data such as Financial Benchmarking & Insights Tool to communicate how well they are performing in certain areas of spending and investment compared to other (anonymised) settings and really celebrate their financial successes.
Schools need to clearly set expectations with children and families as to what funds can and cannot be spent on as well; some things are just not possible or within our remit, no matter how much we would like to help.
At the heart of school finance lies the child and our responsibility and duty to ensure that they receive the best education that they can. There will always be competing priorities from different stakeholders, but if we ensure that financial reporting is accessible and transparent, and that decision-making processes are clearly documented with the engagement of relevant stakeholders, we can always rest easy that we have taken our responsibility to the public purse seriously and appropriately.
Not a difficult task when we have all signed up to the 7 Principles of Public life by undertaking a role in this sector, surely?