Ten things for Leaders and SBMs to consider at the end of the financial year
As school leaders and school business managers reach the end of the financial year, there are several important considerations they should keep in mind. Here are Opogo’s Top 10 Tips for School Leaders and SBMS.
Budget Review: Conduct a thorough review of the current year’s budget
to assess spending patterns, identify any areas of overspending or underspending, and determine if any adjustments are necessary. Review key areas such as staffing structure, leadership team size, spend on subject areas of concern/need.
Financial Reporting: Ensure all financial reports are accurate and up-to-date.
This includes preparing financial statements such as income statements, balance sheets, and cash flow statements to provide a comprehensive overview of the school’s financial health. Produce reports that are understandable of key stakeholders such as governors, leaders and an executive summary for staff.
Compliance: Ensure compliance with all relevant financial regulations and guidelines.
This may include adherence to government funding requirements, tax regulations, and auditing standards. Ensure this compliance check is externally verified where necessary.
Grant Management: Any necessary reporting should be completed.
If the school has received grants or funding from external sources, ensure that all grant requirements have been met and that any necessary reporting has been completed.
Strategic Planning: Create your school improvement plan BEFORE you create your financial plan.
Use the financial year-end as an opportunity to align financial planning with the school’s broader strategic goals… Be ambitious first. Evaluate the effectiveness of current spending priorities and consider adjustments that may be needed to better support the school’s mission and objectives.
Forecasting: Begin planning for the upcoming financial year by developing a budget and financial forecast.
This should take into account anticipated changes in enrollment, staffing levels, programmatic needs, and any external factors that may impact the school’s finances. Work on the known expenditures and income streams. This will allow for conservative but realistic 3-5 year forecasting.
Capital Expenditures: Review any planned capital expenditures or major purchases
to ensure they align with the school’s strategic priorities and budget constraints. Consider whether any purchases can be deferred to the next financial year if necessary.
Staff Training and Development: Allocate resources for staff training and development initiatives
to ensure that personnel are equipped with the necessary skills and knowledge to effectively manage the school’s finances and support its educational mission.
Risk Management: Assess and mitigate any financial risks facing the school
such as fluctuations in enrollment, changes in funding levels, or unexpected expenses. Develop contingency plans to address potential challenges and ensure financial resilience.
Communication: Communicate financial performance and plans with relevant stakeholders
including school staff, governing bodies, parents, and community members. Transparency and open communication can help build trust and support for the school’s financial management practices.
By considering these key areas, school leaders and business managers can effectively navigate the end of the financial year and lay the groundwork for financial success in the year ahead.
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