Developing the Trust: Recent Episodes
Tim Warneford
The Developing the Trust Podcast uses conversations with key people in the School's Academy Sector to join the dots and improve communication with the many different service providers in the sector. Hosted by Tim Warneford, funding expert and Associate Director of Surveyors to Education.
For this episode Tim Warneford is in Sittingbourne in Kent to speak to Phil Reynolds. Phil has spent over 20 years specialising in academy schools accountancy firstly at pecialist accountants Kreston Reeves and now with his own consultancy PLR Advisory We explore how specialist accountancy can assist schools determine a trust strategy and how upskilling in house SLTT through training and development can achieve operational wins.
For this episode Tim Warneford travels to Wiltshire to speak to Powerful Allies Chairman, James Robson, about the risks posed to academy schools for energy procurement in an un-regulated market place. On this episode we discuss: The raw deals schools are getting with energy contracts Opaque culture of energy procurement system Seems against schools interests Risks facing schools in unregulated market James Robson's path to the academy sector His background in aviation, airports then electricity and gas The industry being, surprisingly, unregulated The shock that academies have no recourse if things go wrong Going into the market with a transparent tender Working on better contracts than the local authority Local authorities no longer happy with procurement methodology But are reluctant to change supplier Introducing competitive tender means best value ESFA being strong about cost certainty Local authorities having no competitive tender or certainty of future price Volume purchases being attractive but not bespoke Academies cannot deal directly with supplier Energy is the second largest cost to school (after staffing) How schools/academies should challenge brokers who contact them Schools need to be more sceptical about brokers' offerings An apparent disconnect between the contract and the school How securing a fixed price energy contract for the duration IS possible How they are fixing rates for clients for several years Some schools getting a nasty shock with energy cost rises There are recourses for schools that have been overcharged schools will need help with this Schools likely to face more costs - cost certainty being essential School staff having been wrongly trusted or been misold by brokers
The hot topic of conversation across the sector is the recent update from the ESFA, revealing that the much awaited publication of the 2021-22 round of Condition Improvement Fund (CIF) awards, have been postponed until ‘mid-June’.
This episode looks at the impact of the delay, why CIF bids fail and how to ensure your CIF submission stands the best chance of success.
On this episode we explore:
The latest news on CIF
The announcement being not was anticipated.
The updates on gov.uk including the size of the CIF allocation (£502 Million)
A drop from last year’s double round of CIF of £620 Million
But up by 20% on previous years CIF pot of circa £440 million
The ESFA saying mid-June’ will still give lead-in time
Post Brexit issues
The knock on-effect of more projects will be delivered in term time
An increase in health and safety risks and for disruption for schools
Some trusts may defer projects until next year
Stiff competition between CIF eligible schools
Why CIF Bids fail
Tim’s recommended approach for a successful bid
How to make a bid stand out
Contact Tim:
07970 466 010
tim@warnefordconsulting.com
On this episode Tim talks to Harvey Sinclair, a technology entrepreneur and CEO of E Energy PLC about the fast-moving world of lighting and also electrified heating discussing how schools can save energy and indeed costs by changing their electrics.
On this episode we cover:
Harvey’s background in the industry
Schools struggling with capital investment
Efficiency upgrades always way down the list
Switching to LED to fund savings
Salix being attractive but fraught with problems
Offering a Salix advisory process
Need a high quality energy services provider with experience in schools
Most schools considered LED lighting but not gone through with it
Can be a partner for advising and auditing
Launched the new fund to support the 0% funding solution
Investing 5 million into their business model
Having a seamless data collection process
Collecting date in an unobtrusive way
Capturing data quickly and accurately
The number of pupils can roughly give an estimate of costs
Calculating by room by zoning buildings during operating hours
Installing over 70 calls in 8 weeks of summer holidays
Having the capacity to do 20-30 schools a month
The 3 year plan to fit 3000 schools
10% of the schools market
Looking into electrified heating as well as lighting
Being a specialised energy company
Will conduct a no win no fee survey that will turn into complete proposal for the school
Cost of delay is the biggest value driver of any energy project
They can be on site within a week
Then two weeks later a report will be finished
Having exclusive products specific to education market
A ten year warranty and within a week delivery
Tim Warneford is in Alton, Hampshire, with Steve Bolt, director of BCR Associates, a cost management consultancy that support clients – including academies - to increase efficiency, manage risk, ensure compliance and rationalise procurement costs. Tim and Steve are also working on a collaboration with Lloyds Bank education team to support academy trusts seeking to assist academy trust to optimise resources and maximise potential.
On this episode we cover:
The challenges of managing large estates, buildings and energy efficiency
BCR understand how a site consumes energy
They will audit and review their energy
To allow academies to help educate staff and pupils on energy consumption
Looking at what is going in the energy metres
Getting clamps sponsored so there’s no outlay for the school
Schools taking positive steps towards reducing energy consumption
Pupils then looking at global warming and climate change
DfE encouraging people to address carbon reduction
Lockdown reducing energy consumption worldwide
Schools being encouraged to invest in technology
Analysing data collected about a school’s energy management
Schools having three contract options for energy
Over 27 government levies and taxes in energy products
Making sure contracts allow schools to reduce energy without penalties
The commercial world having more flexibility than LEA schools
Gas prices at ten year low due to lockdown
Financial challenges always there for schools
Grants that are available to support capital outlay
Creative solutions such as renting roof space for cheaper electricity
‘Educating the educators’ to make savings
Operating leases versus power purchase agreements
Encouraging estates to reinvest back into income generating schemes
Schools adding carbon management into the curriculum
Pupils getting involved with carbon saving initiatives
Making schools as cost effective as possible
Suggest schools review their current contracts for electricity and a gas
A mid market review will enable schools to negotiate mid-contract and save cash
Tim’s revamped due diligence package
Academies can expect a 5-10% energy cost increase each year
Considering the above it is key for academies and schools to act on energy consumption now
Schools needing to have energy plans in place
Tim Warneford is once again out and about now lockdown is easing – travelling and recording with all social distancing in mind of course - to speak to Kevin Yardley at The Generations Multi Academy Trust. Kevin is director of income generation and his role is to ensure the estates facilities yield substantial revenue streams through optimising letting opportunities and via external partnerships.
On this episode we cover:
The impact of Covid 19
Being lucky that the trust is financially secure
But still being hit hard
Main priority being protecting customer base
Kevin’s background as a lawyer, criminal barrister and swimming coach!
Working in the London 2012 Olympics
Going as far as possible to deliver value for the client
Navigating the 2008 financial crisis
His son helping him get his current job
Generating school income to academic vision
The holistic benefits to the school and community
Organisational attitude being key to raising capital
Setting about a cultural change in conjunction with the teachers
Bringing in a new booking system
Opening the hall as a venue for large family events (including a wedding)
Bringing new community groups into the school
Looking at pop up restaurants and dinner clubs
Hosting South African swing band nights
Being part of a very inclusive decision making process
Consistently recruiting and retaining outstanding teachers
Upgrading to a 3G sports pitch leading to a lot of opportunities
Being proud to partner with Tottenham Hotspur
Being the premier site for Spurs’ women and girls team
The trustees demanding a very high quality of work
Measuring any risk in business plans
Engaging closely with County Sports Partnership and Sports England
Negotiating with SFE and Dept of Education
Primary purpose is always to deliver a fantastic educational service
Secondary purpose is to generate income
Using external consultant to support projects
Upgrading to LED energy efficient units
Having a CFO and Estates Manager meaning meticulous management
Taking time to building and maintain relationships with customers
Government funding announcements having a level of duplicity
Every child needing a fair funding structure
Wishing to leaving a physical legacy of improved facilities at each of the schools he works with, each school to be financially secure and increased community engagement in sport and other activities
The sporting quote that drives him
Delivering free school meals during the summer holidays
Being confident about working their way out of the Covid crisis
For this episode Tim Warneford is in Bedfordshire to speak to Jeremy Pilgrim from School Property Matters who are independent experts in pupil capacity and have worked with over 2500 schools so far.
On this episode we cover:
Working with over 2500+ schools
Staring with only LEAs then Academies then MATs
The government origins of MATs
Feeling academisation brought freedom and autonomy
Although some of this has been reined in with MATs
Pros and cons of MATs v LEAs
Whether MATs are getting the right side of support
Working out the pupil yield from new developments
The drivers for parents selecting schools
Early adopters to academies having done quite well
Are MATs getting the Section 106 funding they’re entitled to?
Assessing what schools need to expand
New buildings being attractive to parents
A haemorrhage of pupils when a school is seen as failing
Good schools also having to consider what expansion means
The academy better having improved in terms of expansion
A large percentage of trusts talking of expanding this year
Risk to this growth
Previous estimates of 1000 schools converting a year now reducing to 500-600
Schools now reluctant to convert
LEAs could convert their education departments into MATs
Disparate systems being hard to manage
Section 106 allocation; there is money available that hasn’t yet been invested in school stock
Brexit restricting labour pool
How to increase quality of homegrown talent for labour pool
Money needing to be poured into growing home grown talent
Capacity need to be at the forefront
Why would schools maintain buildings they don’t need?
This week Tim Warneford is in Stockton-on-Tees to speak to Graham Fitzgerald, general practice and audit director at Baldwin Accountants. As well as dealing with commercial organisations, Graham specialises in the education sector, providing audit and advisory services and working with over forty academy schools including an increasing number of multi academy trusts.
On this episode we cover:
How they entered the academy client market
Rapidly expanding through word of mouth recommendations
Applying passion and expertise to the sector
Charity accounting not being straightforward
Giving clients a lot of free support early on
Retaining clients through this
25% of their work being academy based now
Academies being different to commercial clients
People working in the sector finding it very rewarding
Enjoying making a difference to children’s education
Additional revenue schemes still being available for academies
Many schools being blighted by lack of resources
Other schools renting out their resources for cash
Been frustrated about how few academies do financial due diligence
How can suppliers partner to form collaborations to further help academies
Tim wanting to find a pilot to support as above
Previously been in the SFA’s in the best interest to convert, but are there lessons we can learn from this
If a school transfers and gets into deficit there can be a lot of issues
Do the SFA put money back into schools that are failing or into the larger MAT?
Being governed by accounting standards
Lack of clarity when pushing new projects through
Some academies and schools sitting on next to no reserves
Rewards for schools getting returns in on time
GAG pooling pros and cons
If academy trusts know what their funding is going to be they can play ahead
The change of policy and government being very frustrating
Most of the risks being outside of the hands of the clients
Hoping that his legacy is that they have made a difference, working with schools not against them
Tim Warneford is in London’s West End with Lara Harvard and Zoe Forbes from Ecosphere and Gareth Williams from Eden Sustainable talking about how schools and academy trusts can both save money and also be much greener by installing better energy systems and also their exclusive offer available to both academy trusts and state schools.
On this episode we cover:
Eden Sustainable working with academy trusts and state schools that offer free solar systems to save bills
Agreeing to buy power from the solar system available at much cheaper rate
The specifics needed from the school to do this
Schools not always buying well with energy
Clean, green energy being key in fight against climate change
Eden Sustainable giving schools a lump sum up front
Ecosphere rolling out a plan across Brighton and Hove schools
Rolling out large solar PV projects
Looking at schools in a holistic way; lighting, roof, all energy
Expecting to save schools up to £30,000 a year
Many schools in end of year deficit
Vital for schools to receive further funding
Eden Sustainable flexible when it comes to inflation rate of the PPA
Schools needing to understand their current rates and how they are metred
Giving talks to get the pupils on board too
Reducing CO2 emissions being a big win
Reducing school costs also being a big win
The Pickwell Foundation, supporting charities acting on climate change and people displacement
Eden Sustainable take care of all of the planning, building control, all upfront costs, installation, insurance and maintenance of the panels
Panels can last over 25 years
20-25 lease arrangements available
Can also help boost green flag credentials
A low risk-versus-reward balance for schools
Current major projects in the pipeline
How the climate change message is key for everyone
Eden Sustainable being happy for anyone to pick up the phone and have a chat
Tim Warneford is in Windsor to speak to Chris Rose, Director, Karadoo Finance, Donate My School, a company that launched in 2018 with the function of creating and running crowdfunding campaigns for schools.
On this episode we cover:
Finding the Independent schools sector unusual in operation
Launching into the state school sector
Quickly becoming apparent the was a need for what they do
Being a commercial business that loves seeing a positive impact the sereice has on schools
Being ‘just giving for schools’
Allowing schools to run different crowdfunding campaigns
Finding a cultural shift underway where schools are getting more comfortable asking parents for a donation
Rapidly finding that fundraising platform fees can be complex
Launching in response to a clear and apparent need for schools to have help
Staff in schools being stretched
Creating an effective formula for crowdfunding campaigns
The success of their first campaign - for laptops for a primary school
Having now raised hundreds of thousands of pounds for schools
Engaging the community with crowdfunding projects
The state education sector being ambitious through enrichment
Academies no longer being at the mercy or indeed generosity of the Local Authority
8500 schools having academised but 14000 not yet converted
believing that all schools needed to raise additional funds
Having around 25 campaigns ready to launch in the autum term
Being emotional about the heartwarming thank you videos they’ve received
On episode 10, Tim Warneford is in Alton, Hampshire, talking to Janice Finnimore, Schools Business Manager for Eggers Secondary School, about the challenges and lessons learned from being an early converter to a stand-alone academy and why Janice feels that being a stand-alone academy can offer a lot of benefit.
On this episode we cover:
The challenges of being part of an early converter to an academy
The lessons learnt from decisions made
Exploring the freedoms of converting to an academy
Additional funding initially being available
Benefiting from economies of scale in the local authority
Now feeling more confident about challenging services they buy into
Working on the maintained side and academy side
Learning a lot of things the hard way
But making some wise decisions
Juggling many plates now with the school being a business
Business managers most often being women
Being a close knit community doing lots of networking
Emerging of the security of the local authority umbrella
Engaging an independent health and safety manager
Engaging an independent fire risk assessor
Worrying findings in fire safety (that were not in consideration of the LEA)
Condition Improvement Funding (CIF)
Enjoying freedoms such as being flexible on the curriculum and changing the timings of the school day
Constraints, however, with the depth of the audits they are now exposed to
Audits going from once every three years to themed audits
Responsible officer visits and thorough checks on finances once a term
Having had successes with CIF funding
However a frustration being needing inject a contribution
Business managers allocating a lot of time to bid writing
Being very comfortable being a stand alone academy
Not aspiring to expand in the short-term
Having to make some very tough budget decisions
Reducing staffing through natural wastage
Such cuts impacting on staff morale and wellbeing
Seeing MATs as mini-local authorities
Newest acquisition being an astro-turf pitch
Raising around £25,000 year from letting a trampoline group use the sports hall
Very much seeing themselves as a community school
The local cadets using the hard courts free of charge
Launching a crowd-funding page for drama studio refurbishment
Funding a brand new refectory
The biggest obstacles in schools being lack of funding
The DFE feeling they are putting more money into schools but this is not the case in reality
Being very proud of the successful CIF bids
Appreciating the economy of scale that a MAT can provide but that MATs will be careful about which schools come on board
For this episode Tim Warneford travels to Bristol, to speak to one of the most successful academy sector firms of solicitors, VWV and to Jaime Hobday and Robin Rajanah about their experience in supporting academies and also their vision for the future of the sector.
On this episode we cover:
How they both became involved in education
The strengths and weaknesses of LEA schools versus academy schools
Academies having to learn on the job and quite quickly
Managing one school being very different to multiple
Academy staff becoming more savvy
Universities starting from a higher and more significant estate portfolio
Being politically easier to dispose of land in higher or further education than for schools and academies
The continually frustration of academy with having to apply for consent to dispose of land
Successes over the last ten years
The early converters being in the dark about how to convert
Academies working for schools that need improvement
Schools in academies awareness of property issues and opportunities growing
Skills within these schools grown significantly
Where education has been successfully cascaded down in academies
Hosting events to create opportunities to get people to talk about their experiences
Often inking clients and contacts together at the firm
Being a good amount of humility in the sector with learning new skills
Close to 80% of secondary schools having transferred to academies
Researching schools to assess their needs
How regional school commissioners prefer schools to be in larger MATs – four schools upwards – particularly with primaries
Inconsistency across LEAs about the conversion process
The challenges and benefits of land disposal
Secondary schools in Bedfordshire selling off farms
Advising schools to talk to the EFSA as soon as they can
Land disposal helping with the housing shortage
Frustrations about the speed at which re-brokerages and sponsored conversions have to be completed
Lack of time meaning less time for due diligence
Assessing the finances and deficit position key to first step
How schools need to be educated in what the risks and liabilities look like
Conferences being a good way of doing this
Regular communication with other organisations – such as Lloyds – helping with sector knowledge
A large part of their service being about doing the things needed before they need them
The DFE using conversion to formalise processes
Holding a kick off meeting with new conversion clients
Making legal concepts easier to understand
Poor condition surveys
Jaime’s passion for governance, finding out their ethos and helping them really understand their vision
Robin’s wish to help academy trusts make the most of their estate
The more fit for purpose the estate and facilities, the better the opportunities for the children
For this episode Tim Warneford speaks online via Skype to Julie Cordiner, Independent Education Funding Consultant about her work in education finance for schools and academies, the successes and the struggles of the schools academies sector and her passion for education.
On this episode we cover:
How education was her own route out of poverty
Education being her passion
Opportunities for children they wouldn’t otherwise have
Working in education for 30 years
Being drawn into special needs
Returning to the finance side
School leaders starting off as teachers or admin
Being very little specific training in financial management side
Being on a mission to raise the profile in financial leadership
Drawing together fragmented information and making it easier to access
Tim working in social housing
Seeing the link between environment and output
Some schools not providing the optimal learning environment
School leaders being thrown into a massive responsibilities
Not being able to be an expert in everything
Knowing where to find the right people with those specialisms
Seeing a lot of school business managers struggling
Where Julie sees the successes the academy system has brought
Julie’s experience being mixed across LEA and academies
Academies having been successful when they have a strategic grip on their distinct things
DFEA being a bit misleading about the extent on the freedoms of academies
Where freedoms have been used they have been innovative
Academies being open about collaborating
Seeing some great MAT examples with special needs and disadvantages pupils
The choice of centralisation versus local autonomy
Some MATs doing aggregated procurement well
Some MATs having a good pool of school improvement specialists
The plight of the primary school that doesn’t want to be in a MAT
The difficulty of smaller primaries struggling with the emphasis on amount per pupil
The national funding formula brought the funding down
How it’s not only academies that can collaborate
Some LEA school collaborating with education partnerships
Schools engaging the community and using out of hours for revenue streams
Schools developing an income generating strategy
How understanding the community is very important
Where Julie sees the negative aspect of academy system:
DFE’s willingness to recognise the sector needs more money
2015-17 particular drain on resources
A huge brake on any responsiveness to changes in need
For the third year running there’s an increase in children with additional needs
The level of funding and the distribution of it just not doing the job
Frustration that academies is seen as the answer to everything
Schools are schools – not much difference between academies and LEA schools on a day to day basis
The government pitting one set of schools against another
Some LEA schools and academies working well together
‘Appalling waste’ in the DFE
The UK Statistics Authority wading in
‘Most academies living hand to mouth and can’t provide the basics’
Condition improvement funding being almost means tested
The majority of schools being in some sort of deficit
The poorer schools being continually punished
Schools being pushed into larger trusts for DFE convenience
The bigger trust getting school condition allocations not being subjected to an SRMA visit
The pressure on small trusts being pushed into larger ones by the DFE
Lord Agnew having a skewed view of waste in schools
Being far better to give schools the skills to do their own SRMA
How building capacity is the way to go
Tim talking to the ISBL about owing a duty of debt to the 14,000 schools yet to academise
Julie not accepting that all 14,000 LEA schools will eventually become academies
Lots of schools doing very well without become an academy
Needing greater understanding about serving all types of schools
Julie suggesting a forum where school leaders could share their biggest concerns
More joint approaches needed
Suppliers and professionals needing to get together and collect best-practice case-studies
Julie’s aim to help schools and academies understand what effective financial leadership means; being about achieving sustainable budgets, equipping governors to challenge and support better, wanting to try to make DFE see that they need to trust in the sector more, believe it when the sector say they need funding and top interfering at the operation level and instead focus on giving a strategic framework with core funding predictions
Julie’s book - Forecasting Your Schools Funding
The sector just wishing to be heard
DFE operating on a very minimal capacity
As yet being no spending settlement
The sector being in a funding crisis
On this episode Tim Warneford is in Bath where he is talking to Joanne Burton and Ciaira Campfield from solicitors, Stone King, a law firm that has supported over 400 schools nationally who have converted to academy status.
On this episode we cover:
Partner in Commercial Property Team
Partner in Education Team
Stone King being one of the leading firms in a niche sector
Working on academy brokerage, academy conversions and more
Joanna starting in July 2010 when the academies act coming into being
Joanna travelling aboard building schools for charity
Previously working
Ciara starting in a large international law firm
Wanting to work at a law firm that had its heart and soul in education
Stone King living and breathing education and charity
Not entering in the politics of academisation as lawyers
Seeing some schools go from strength to strength under the MAT system
Seeing success in the way some MATs are sharing best practice
Increased emphasis on good estate management for schools
Surveyors and funding experts seeing so many schools transfer without due diligence and appreciation of what things will be like under a market environment
All schools needing to make best of existing resources
How the 14000 schools yet to academise can benefit from others experience
Concerns about the funding the sector gets
Very difficult for academies to set a budget
Undertaking rebrokerage for clients – working out where they can add value
MATs not having the funds to pay huge professional service fees
Collaboration being the key to success of the sector
MATs been historically more insular, now collaborating more
Head teachers making emotional decisions about the school
The importance of getting specialists together early for efficiency and to highlight risks
Public procurement and advising clients over commercial contracts
Working with retainer clients on a day to day basis
Often being the first port of call
Collaborating with Beth Cullen, Commercial Director of the Institute of School Business Leadership
Potentially serious liabilities of clients – such as asbestos
Focusing on estates management support at a very early stage
Not all estates having an ‘estates team’
Schools often working on reactive maintenance
Stone King treating themselves as an in-house lawyer for their clients
Brand new ideas and innovative thought coming into the sector
The importance of mitigating risk with planning
A move towards selling off land for landing and more facilities
Using Section 106 money to help schools
The ESFA being more open to discussion than previously
CIF being cut by £81m in 2019-08-10
The frustration of regulations slowing the speed of planning and selling off land
The risk not being as high for an academy conversion than a rebrokerage
Government policy being difficult to predict
Current government wanting more schools to academise
A recognition that more funding is needed in the sector
Increase in FE and Academy Sector sharing best practice
Negative stories about academies in the press causing fear in the sector
Many academy success stories
The importance of feeding into the ESFA process
Stone King’s forum for MAT clients
The sector being constantly evolving
On this episode of Developing the Trust, joining the dots in the academy sector, Tim Warneford is in Ampthill in Bedfordshire to speak to Darren Rice, Health and safety consultant from MAC consulting.
On this episode we cover:
What brought Darren to the academy sector
Darren’s previous experience in the public sector
Working as a building surveyor, maintaining schools for the LEA
The different between providing services to LEAs v MATs
How MATs transfer risks with them
Whether the LEA manages risk better than MATs
Schools not having to think about compliance and legal issues under a LEA
Contractors providing maintenance under LEAs
Admin staff promoted to facility managers without always having the experience
Helping support to staff to become property managers or building managers
Whether there is a gap between due diligence and schools transferring to MATs
People from education backgrounds struggling to adapt to facilities management
Providing health and safety management to transfer to a business model
Cases where LEAs have not addresses issues such as asbestos
Schools being previously unaware of the cost of managing such issues
Undertaking studies to address maintenance or facilities priorities
Several schools that went self-funding but had to return to the LEA due to financial difficulties
Working with solicitors to enable schools to understand what they are going into
Key to have an organisation of property building professionals to support schools
Understanding that maintaining a building can be challenging and expensive
The frustrations of auditing functioning trusts with different health and safety systems
The benefits of centralising and standardising
New property managers not fully understanding the role
Trusts learning to run a business and bring in business minded people
Schools having to be run life a business
Unsuccessful CIF bids leaving schools vulnerable
ESFA changing CIF weighting and seeking contributions from trusts
For trusts that are struggling the concern that they will be more vulnerable
Schools struggling to balance resources between teaching and statutory compliance
In LEAs the building always coming second
Some smaller schools losing out to secondary schools
Schools with serious compliance needs but no resources faced discrimination
Primary schools feeling more comfortable with LEAs
Secondary schools converting leaving less cross subsidies
Pupils possibly having to travel to go to school
Darren wanting forward-thinking schools to come to them to ask questions
Schools sometimes wanting to brush risks under the carpet rather than bring in the professionals
The importance of talking to other schools who have already converted and finding out what lessons have been learnt
The need for more business-savvy staffing
The impact Darren would like to have on the sector
The importance of sharing knowledge and information to benefit the schools
On this episode of Developing the Trust, the podcast dedicated to the schools academy sector, Tim Warneford is in a school in Batley to speak to Tracy Jackson, finance business consultant, about her experience of many conversions.
On this episode we cover:
What brought Tracy into the academy sector
Starting as a trainee accounting technician
Working in the internal audit department with schools and education
Moving to a local high school as bursar (when 8 months pregnant with twins!)
Recognising her area of strength was finance but learning about managing premises, health and safety, HR and more
Outsourcing work and buying in expertise
Being part of many academy conversion processes
How the ideal time to get to schools is before they transfer
Helping schools better prepare to academise
Due diligence should start the moment the school decides to convert
Tracy supporting a number of schools with due diligence process – starting in 2011 when there was little blueprint
Setting up her own business to support trust
Finding is frustrating that she’s often brought in after conversion
Schools being unaware of some of the liabilities for which they become responsible
Money being wasted by due diligence being repeated
‘Failing schools’ being rebrokered
Unfair incentives for schools being rebrokered
Seeing so many SPN’s struggle with the financial compliance and policies
Primary schools understandably less keen on joining a trust
Local schools becoming direct competition to each other
Tracy being a trustee of an academy trust
The importance of having trustees who have a connection to the school
The professional development opportunities for staff from working with other schools in a MAT
Some of the successes identified in academy conversions
How the education sector has become far more business like
Accountability being a good thing, buying power increasing
The bigger trusts now being very savvy to the systems
Negotiating contracts, collective buying power, pooling resources and staff
UTCs experiencing financial difficulties as they set themselves up
SRMAs need to help identify potential savings but focusing on those in deficit
Schools being asked to publish 14 days once received financial measures to improve
Three-year deficit budgets
Primary schools needing incentives to convert
The uncertainty and unknown about taking on a free school
Special Education Needs needing more attention
ISBL needing to listen to people who are supporting the sector
CIF changing the rules by increasing the weighting of schools value for money being almost means testing – almost discriminating against some schools
Tracy feeling that there will be a revisit of the academy system, in particular the geographical spread
Rebrokering schools to make them more local
LEA budgets being cut impacting on schools
Feeling there is a real desire from the sector just to make things better and to deliver a first class education service
This week Tim is in central London to talk to Ian Buss, Former Lloyds Banking Group Head of Education and now Director of Education Banking Consultancy about the success of Lloyds in their supports of MATS and academies and Ian’s aims to help further maximise MATs and academies funding.
On this episode we cover:
How the sector can work together better
How the constantly changing sector needs support
Lloyds popularity in the industry
Ian’s task of setting up the education team
How schools want to be with someone who understands them
Michael Gove’s academy growth from 2010
Investment of CPD and training in the team
Banks being relatively similar on pricing
An academy being able to speak to a relationship manager
Supporting the academy as best as possible so the academy can concentrate on pupils
How no two academy trusts are the same
Constant challenges from the ESFA and Department of Education
Lloyds looking after around 70% of academies
Ian’s own change in career – going it alone
Lloyds moving towards a more local banking structure
Wanting to work directly with MATs with his own business
Opportunity for MATs to earn significantly higher amounts of interest on GAG funding
How the sector can achieve £10-20 million per year in efficiencies and banking interest
How MATs grew slowly from single academy trusts
MATs and academies struggling to take advantage of the opportunities
Lloyds being successful because the relationship managers knew the sector inside out
The sector’s natural aversion to risk
Only wanting to work with an academy when can help them generate significant return
How the ideal time for schools to consult a bank is when they’re considering converting
Leaving the education sector in a more financially healthy and knowledgeable state
So much academies can do to get greater efficiency on finances and greater returns
Aiming to help academies and MATS maximise limited funding so they can plough this into catering for the children’s needs
This week Tim travels to Daventry to speak to Tom Kerr, sales director of Langley Waterproof Systems, a company that assess and supply roofs to many public bodies in social housing, MoD and indeed in education including schools.
On this episode we cover:
Langley being suppliers and designers of high performance waterproofing systems
Working with clients throughout the UK including many public bodies –social housing, MoD and education
Taking on an asset management function – having a look at stock, fitting new roofs
What we can learn from social housing and social value
Working with contractors small and large
CIF funding on a needs basis in education
SFA’s output specification and how this has been interpreted by the industry
CDM regulations
Fluctuating BBA’s
Offering three main systems for reinforced bituline membranes
Value for money being marked up from 25 to 30%
The school’s contribution not making any difference for value for money
Clarion, in social housing, spending £15 billion over 20 years, £700m per annum
Issues regarding training young people
Addressing skills gaps in the construction industry
Recruitment issues as a result of Brexit
The construction industry facing a huge shortage of labour
An ageing workforce
Attracting more women into construction
The issues with schools creating their own tenders
10s of millions of pounds of funding that could potential help
HACT (Housing Associations Charities Trust)
Opportunities
The need for apprenticeships
The need to digitise everything in construction
Schools condition Data Collection Programme and formulaic funding
Encouraging everyone to think of the buildings as an asset
Concerns about the methodology of the capture of this data
Every single school having to commission their own condition survey
Schools not having the option to close down
The need for a better dialogue with the SFA
How collaboration and open dialogue with manufacturers, designers, suppliers and contractors is the key to find out what is best practice and what might give better value for money
1300 fires average in school every year
This week Tim travels to Woodford to the offices of Chris James, a Senior Accountant at Alan Patient & Co a London firm providing accountancy services to schools across the UK.
On this episode Chris James talks:
The first academy they worked with
How the above panned out
Schools’ experience prior to academising
'Good housekeeping’ prior to academisation
The higher level of accountancy scrutiny after academisation
Investing in higher accountancy systems to address the above
The benefit of increase financial clarity in helping make decisions
Ensuring the children get the best education possible
The skill-level of site managers required to operate investments
Whether accountants need to be involved earlier in the process
The key times to prepare schools for the conversion process
The important of the due diligence stage
Advising schools’ liabilities at as early a stage as possible
Finding ways in which everyone can work collaboratively so that schools have a better service at the front end
What successes they have noted with schools going from public sector to private
How conversions work best when schools go to them at an earlier stage
The potential confusion of schools at their first audit
How investing in decent systems and skills leads to better audits
How audits can be helpful to identify ways forward
How larger MATs and secondary levels with directors of finance grasp the changes quicker
Supporting smaller primaries that don’t have the resources for directors of finance
Lloyds Bank dominating the sector by providing single points of contact
How they started in the commercial sector
The brand new element of compliance and reporting academisation brings schools
Teachers being asked to be accounting officers
Important to show understanding in terms of what they’re going through
The importance of supporting and reassuring schools
How many schools have converted at risk
Supporting schools in cutting costs and setting up new revenue streams
Hammering it home that ‘they are a business now’
How the revenue from the business is reinvested into education
Finding themselves advising more on the above options
Obtaining value for money being paramount
Results from the Improvement Fund
Value for money raising from 15 to 25%
The impact the above has on schools
50% of academised schools in year deficit
The potentially bleak future for schools that cannot support themselves
Small trusts or stand alone schools being encouraged to join larger ones
Potential future funding streams to help schools stay in small MATs – trying to maximise income, allowing more uses of their facilities, trying to minimise their costs
The benefits of working with professionals early on in academisation process
How schools should approach professional services before they convert to put them in a far stronger position
How all parties involved would better prepare schools with if they provided a more unified wraparound service
The aim to help as many schools as possible to make sure that they have the financial reporting and information that they are compliant and can also make the best decisions so they know they can provide the best education for the children
Passing on skills to the trustees so that they can be better equipped to cope with academisation
This week Tim travels to Coventry to speak to Bethan Cullen, Commercial Director of the Institute of School Business Leadership - the first port of call for academy schools looking for best practice.
On this episode Bethan talks about:
Being inspired by her primary teacher mother - running a budget and a school without the resources
Joining what was the National Association of School Business Management nine years ago
Schools now being their own professional entity
With core business strengths
How she thinks things have developed
The National College driving through efficiency in schools
Estelle Morris helping to develop core resources in schools
Helping head teachers to drive through better resource management
How education cannot stand still as a profession
Schools having to collaborate more
Schools having to develop further skills
Needing to be at the forefront of education
How the first 100 days after academy conversion are key
Schools needing to do due diligence before becoming an academy
Needing the right players to negotiate arrangements
Speaking to the local authority about the state of a building before conversion
The challenges schools go through in transition
Developing clear guidance of the processes for schools
How schools needs to build in time to benchmark buying in professional services
Looking at how the money is spent
Looking at what abilities are already in the organisation or the group
How some schools might be transferring with a legacy of problems
Issues with school buildings such as asbestos
Trying to make sure that every school stands the best chance of survival
Academisation being a difficult minefield for smaller schools to navigate
CPD being critical as can going to a network, having training, reading quality assured guidance
Trying to demystify what schools need to unwrap
The key moment being prior to academisation
Schools increasing need to specialise
Schools bringing increasing revenue streams from out of hours
ISBL’s member magazine writing a lot about the subject
How the term ‘income generation’ can put schools off
Primary schools having less available resources to manage such activities
No evidence to show educational standard is higher in academies
Evidence however that the high performing schools are more attractive
Environment in schools affecting performance
Organisations collaborating through aggregation
The greatest impact Bethan would personally like to bring
Setting the benchmark for good practise
Wanting school business leadership to be seen as a career
How the school sector can collaborate with professional services to ensure a smooth transition to academisation
How ISBL can help facilitate between all different partners
Welcome to the Developing the Trust Podcast, the podcast on which we open up the lines of communication between key players in the School's Academy Sector. On this introductory episode host Tim Warneford, academy school funding consultant, explains what we can expect from the podcast and talks about some of the exciting episodes we have in store.