An introduction to Financial Benchmarking for Governors of Croydon schools Presented by John Fennell Thursday 6 November 2008

What will you be able to do after attending this activity? Understand what financial benchmarking is Understand how it can help schools in developing their WSDP and budget Understand how the national financial benchmarking website works Be able to use the national financial benchmarking website

What is Financial Benchmarking? The process of looking at financial data from other similar schools in order for you to make comparisons with them. You may wish to do this because - you have a particular idea that you want to test - you just wish to compare with others to see where you are different

Guidance from DCSF

Where do I find the website? Guidance on the DCSF VFM website The Benchmarking website

Benchmarking your expenditure will help you to: Focus on planning and managing your budget; Identify areas for improvement; Set targets for improvement; Achieve value for money – quality vs cost; Improve the effectiveness of your expenditure to improve performance; and Deliver educational services to a defined standard.

Benchmarking is not used solely to focus on reducing costs, but to also improve the quality and impact of your school’s services. It is now mandatory for schools to achieve the Financial Management Standard in Schools (FMSiS). Benchmarking is a key part of meeting the FMSiS and the benchmarking website (amongst others) is one way to fulfil that. See example – this must reviewed and minuted. Ofsted has now included the achievement of the Standard in the Self Evaluation Form (SEF). The 4 C’s sit nicely with benchmarking

Compare Compete Consult Challenge

Care should be taken when interpreting comparative income and expenditure data. Objective information of this sort describes the position of a school relative to other schools; it does not explain why a school is in this position, or provide a view on whether it should be in this position. There may be very good reasons for a school to have high or low figures. What is important is that school managers - governors, head teachers and other senior staff - review the differences and question the reasons for them. For example, does the position of the school reflect special circumstances or decisions on allocating resources?

Getting Started

Financial Benchmarking Website This uses the CFR end of year returns, currently 2007/08 (very recently added), and also school census data to enable schools to compare with similar schools.

Consistent Financial Reporting CFR System of income and expenditure headings for revenue and capital including balances Used to send end of year position to DCSF and then into benchmarking site Used to structure budgets and returns to LA Information from Value for Money Unit Find the link on Finance Matters and look up the CFR area.

Concluding Section

What support is there? Initially the Local authority: i.e. CYPL Finance or FAX Website Finance Matters on Croydon EdNet (LGfL) Website Finance Matters on Croydon EdNet (LGfL) If you require your user name and password please us at: If you require technical assistance please Or call the VfM Helpline: Tel:

Onto the Benchmarking Tool The Benchmarking website