Welcome to the 2018 Academies Benchmark report.
The last 12 months has continued to see significant change in the sector. Following the General Election we have yet another new Education Secretary, Damien Hinds, a new Under Secretary of State for the School System, Lord Agnew, and new headteacher boards. Any change in strategic direction will mean more uncertainty for all schools with the current strategy of unlocking talent, fulfilling potential, and putting social mobility at the heart of education policy.
Our report continues to show worrying trends in the sector:
After the general election in 2017 we started to see more movement in the sector with schools being rebrokered and more financial deals being done, including loans, debt write-off and rebrokerage grants.
With a bigger focus in the sector now on Multi Academy Trusts (an increase of more than 25% of academies in a MAT) we have started our report this year with a section looking at MATs and some of the wider issues they face such as the organisation and funding of the central function.
We are also seeing a step change in the way some MATs are run with more of a focus on the business aspects of running a multi-million pound business responsible for significant amounts of public money. However, whilst the accountability framework is robust, we are sadly still seeing Trusts failing, in some cases due to poor financial governance. This cannot continue if the sector wants to retain its independence.
There are some big issues for the sector to address in 2018, and the continuing uncertainty over the national funding formula is increasing the risk of unsustainable deficits. Trusts will need to budget carefully to ensure they remain financially viable.
As the sector grows it will no doubt continue to lobby for fairer funding and a real terms increase in core funding to cover the pressure on salaries. The sector has done much to squeeze costs but this will never be enough to remove the inequality of reserves between Trusts. As the report shows, larger MATs are likely to be able to ride the storm more easily so we will continue to see Trust mergers and rebrokerage of academies to help those in the worst financial position.
Chair of the Kreston Academies Group
Partner and Head of Academies, Bishop Fleming
Posted by Pam Tuckett on September 19, 2018
The Education and Skills Funding Agency (ESFA) has written to accounting officers in academy trusts to remind them that their budgets must be used as Parliament intended, asking them to apply a degree of curiosity and scepticism […]
Posted by Press Release on May 3, 2018
Top 30 advisory firm, Bishop Fleming, the UK’s top auditor of Academy schools, is helping the sector develop its accounting skills in light of the current financial challenges in schools. The firm, which delivers audit, […]