school finance – key principles monday 2 nd june 2014
TRANSCRIPT
SCHOOLFINANCE – KEY PRINCIPLES
Monday 2nd June 2014
SCHOOLFINANCE – KEY PRINCIPLES
• INTRODUCTION
SCHOOLFINANCE – KEY
PRINCIPLES
Nicholas Grenfell-Marten
Director of College
Operations
UWC 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 example
Atlantic College 2013 Accounts
SOFA example
Difficult 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?
