Effective budgeting and financial systems are essential for schools.
Accurate budgets for income and expenditure need to established based on actual and projected costs. Effective systems then need to be in place to ensure that actual income and expenses align with the budget.
In many schools, financial systems do not work well and the following problems are experienced:
- Schools do not know whether the income they have received to date is above or below what has been budgeted for.
- Schools do not know whether expenses being incurred are within budget or exceed this.
- Schools do not know whether there is a problem with parent’s paying fees and there is a downward trend until this is too late.
- Accurate, up-to-date data in a user-friendly format is not available for School Management Teams (SMTs) and School Governing Bodies (SGBs). This means that the SMT cannot effectively manage finances and the SGB can not provide financial oversight.
School Finance Tracker (SFT) addresses this by enabling income and expenses at the schools to be captured on a monthly basis and used to generate reports that provide a clear indication of the school’s financial status.
The SFT generate the following tables and graphs:
- Actual income against budgeted income
- Actual expenses against budgeted expenses
- Actual income, expenditure and margin
These reports can be produced on a monthly basis and shared with the School Management Team and the School Governing Body.
Clear tables and graphs in the SFT report enable school finances to be readily understood and problems picked up early and dealt with.
The SFT is a, therefore, a valuable tool in helping ensure that a school is financially sustainable and makes prudent use of the funding provided to it by parents, government and other parties.
The School Finance Tracker tool and a short course on its application are available. Contact us for more information.