Make the Most of your Money

Schools face challenging financial circumstances. Funding growth has already slowed, after real terms increases of 56% between 1997/98 and 2007/08.  Recent forecasts for public expenditure beyond 2010/11 clearly indicate that there will be tighter funding. Those with financial responsibilities in all public services, therefore, have to consider how resources can be put to best use.

Kel's bio can be seen here

The principle of value for money is straightforward, although measuring it is complex. The widely accepted definition of value for money refers to three elements described as the “three E’S”: economy; efficiency; and effectiveness.

Economy is the idea of using fewer resources to achieve the same quality of service.  However, when we economise, it is important to remember that while reducing costs may be efficient, we need to ask whether the service is still as effective (or more effective) than it was before.

Effectiveness is the measure of how well the goals of any project have been achieved, whilst efficiency is a measure of how much it cost to achieve these goals.  Remember that cost doesn’t only include money - costs might be expressed in many ways, for example:

·Money

·Effort to make and maintain the project

·Time spent

·Use of other resources, e.g. rooms, school minibus, staff  member

·The cost of not being able to do something else because these resources are being used on the project

How can schools address these key areas an d meet the demands of value for money?

The Audit commission have identified six areas where a school can challenge itself to improve:

·Considering the financial implications of its plans;

·Reviewing its financial surplus (or deficit);

·Ensuring that the goods and services it buys represent value for money;

·Using the school workforce to the best effect;

·Collaborating with other local schools; and

·Using data and information to support better decision making.

About the author

After graduating from Durham University in 2001 with an honours degree in Education, Tom worked in a range of primary school settings for over 8 years; the latter of which he spent on the senior leadership team as Year 3 teacher, acting assistant head and leader of assessment and PE. He now manages the business end of GAL Education which includes marketing, school liaison, project management and much, much more!

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