Tag Archives: academies

National Funding Formula

Posted on by
1

I have been reminded that my last post didn’t explicitly mention the need for a new funding formula for schools. This has been such a long-running saga, started under the Labour government and not brought to a conclusion during the coalition that I confess it slipped my mind.  My apologies to the F40 Group of local authorities that have long campaigned for better funding for their parts of England.

I suppose one good thing to emerge from the coalition was that both the Pupil Premium and Universal Infant Free School Meals were funded at the same rate across the whole country and not pro-rata to authorities on their other funding levels for education. There are those that might argue that the funding wasn’t enough, but it was the same for all. However, that doesn’t obviate the need for a coherent plan for education funding that can be justified on a rational basis. Any reforms must accept the consequences of the raising of the learning leaving age to eighteen. In rural areas the continuation of the old transport rules that assumed staying in education post sixteen was an option need urgent reform.

During the election campaign I met sixth formers of all abilities in both further education and schools that had faced considerable challenges to be able to continue their education. With subsidies to rural bus services under renewed threat this is an unfair burden on young people living in the countryside. If we tried to take away the free travel enjoyed in London there would no doubt be a great outcry.

There is no doubt that what funding there is will increasingly be taken up by increased pay. In those parts of the country, notably London and the Home Counties, where recruitment is at its most challenging it won’t take long for teachers to recognise that the new pay freedoms mean they can ask for more in their pay packets and leave it up to school leaders and governing bodies to decide how to manage the consequences of saying ‘no’.

One outcome is likely to be larger classes, especially in the secondary sector. However, judging by the downward trend in pupil-teacher ratios seen in recent years the system should be able to handle some worsening in ratios and larger class sizes. But, that makes planning teacher supply just that bit more difficult, as trainee PE teachers are no doubt finding out to their cost this year.

Schools will have to look for ways to cut costs, and recruitment advertising is one obvious source of savings as we have shown with TeachVac. By providing a free service to secondary schools that now covers promoted posts as well as main scale vacancies we have created a platform that could save school many millions of pounds as well as providing them with more information about the state of the labour market. If you haven’t visited www.teachvac.co.uk they pay a visit and register. The site will shortly be extending to cover leadership vacancies directly input by schools and I will announce that development on this blog as I will our future plans for extending into the primary sector.

Oasis close an academy in Kent

Posted on by
2

Hextable Academy in Swanley is to close because of falling rolls. Just when you thought schools needed to expand the Oasis Academy chain has decided to close Hextable Academy in Swanley. The 11-18 school has just fewer than 500 students according to government figures, but could accommodate 1,000 pupils. Those parents and their offspring waiting to hear about 2015 admissions in a fortnight’s time will be especially annoyed, as will the pupils kept at the school to complete their examination courses if teachers decide to quit ahead of the closure. Having worked in a college during a period of run-down prior to closure I know from first experience how little fun such a situation can be for both staff and students. The Academy Trust has at least apparently offered to pay for the new uniform of pupil relocated to another school.

Questions will need to be asked about the future of the site. It would be short-sighted to lose the school from education use if pupil numbers will increase over the next few years. Indeed, one wonders whether it might have been possible to save the school by turning it into a 5-18 all-through school by adding a primary department.

Kent County Council, the local authority, is in something of a difficult situation. They retain the legal responsibility for ensuring an education for all children but have no control over admission numbers in academies and could not have vetoed the decision to shut this school. I hope they will send Oasis a bill for all the extra work required of officers in placing the pupils requiring a new school because of the closure. It would be unfair to expect the council taxpayers of the county to foot the bill either for finding new schools or for any extra travel costs resulting from pupils having to change schools.

Hopefully, the academy chain discussed this closure with both the Education Funding Agency and their Regional Commissioner and explored whether it was worth keeping the school open with additional grant funding until pupil numbers increased again.

This episode, along with the Cuckoo Hall Academy Trust revelations chronicled in a previous post confirm my belief that the next government must sort out governance arrangements once and for all so that there is an overall body responsible for place planning and the effective use of resources across the school estate. I would like it to be the role of local authorities, but it doesn’t have to be if the government at Westminster decides otherwise. But, the present muddle cannot be allowed to last. Unstitching the grant payment for pupils that transfer to secondary schools that are not academies and operate on a different financial year will be just one more headache for officers to deal with.

One thing the DfE and EFA along with the regional commissioners must now do is set a timetable for academies and free school to notify the authorities each year if they are considering closure because of lack of numbers, or indeed for any other foreseeable reason.

Burying bad news: a dishonourable tradition

Posted on by
1

The DfE has continued the tradition of publishing bad news at a time when it presumably hopes many won’t be looking. However, in the current digital age the tradition of burying bad news on a Friday afternoon before a school holiday no longer really works. Thus, even though the adverse report by the Education Funding Agency on the Cuckoo Hall Academy Trust plus the Financial Notice to improve appeared on Friday 13th February on the EFA website (under respectively transparency data and correspondence for anyone having difficulty finding the details), they didn’t go un-noticed.

Cuckoo Hall Academy Trust was one of Gove’s flagship convertor schools and an early sponsor of ‘free schools’ in parts of Enfield, the North London borough.

Indeed, Gove visited the school and the head teacher was on the panel set up by Gove as Secretary of State to review teaching standards. As a result, the investigations of the goings-on at the Trust makes uncomfortable reading in what must been seen as a Tory flagship Trust.

As Cuckoo Hall has also been at the forefront of some of the school-led innovations in teacher training the findings regarding the approach to employing staff without current DBS checks has hopefully also been investigated by the NCTL to ensure that the same shortcomings haven’t been happening with respect to those taken onto teacher preparation courses and not shown as employees by the Trust.

The previous week to the Cuckoo Hall publication the EFA published the heavily redacted report on the Park View Academy Trust. There are now 10 reports on one part of the EFA website in a list first published in March 2014.  But, that isn’t the full list ofreviews, as there is another list covering investigations into financial management and governance at academies that was started at the same time, but that now contains 15 reports including some schools and trusts not on the other list.

Some schools have always broken the rules and these remain a small minority of academy trusts, but the risks remain high that governance arrangements and audit trails don’t always seem to be good enough. Too frequently the mis-use of credit cards appears in the reports and good leaders seem too often to succumb to a failure to manage basic operational procedures in the correct manner.

One solution would be to require all internal management auditing to be brought back into government with local authority teams auditing academies as well as maintained schools.  It might also help if there was a common accounting year for schools of all types as maintaining two different periods as the NAO has shown can also lead to a lack of understanding and poor control.

The other development should be to ensure all schools have a properly trained bursar with the power to refer any anxieties about compliance matters to an external regulator. Ofsted should be retained for teaching and learning compliance issues but financial and other matters needs a mechanism that will encourage the highest standards of public life across the board in education.

Labour backs Free Schools

Posted on by
1

Far more important than Labour’s reiterated pledge announced today to adhere to a watered down class size policy they first introduced in 1997 was the fact that at the same time they seemingly conceded that Labour now no longer universally opposes Free Schools as a concept; they just oppose them where they aren’t needed. Others will know whether this is a major concession or just a bit of real politick. Perhaps such schools might have been more acceptable if they had been branded as ‘voluntary academies’ to sit alongside converter and sponsored academies in the family of schools. After all, there has been a long tradition of voluntary schools in the state system and by no means are all of them faith schools.

Sadly, Labour seems to have ducked the issue of who will enforce class size controls. I assume it will be regional commissioners in academies, but will it still be local authorities in other schools and how will they be funded for such a duty?

The allowance of a year with an oversize class muddies the water since if on day one of the second year the school creates two classes but on day two reverts to one over-sized class for financial reasons will the clock start again providing another year of grace for the school? Realistically, as Labour understood in 1997, but doesn’t seem to now, if press reports are correct, an over-size class needs to be dealt with when it arises and either reduced in size or a dispensation granted because there is no other solution possible. There is also no pledge to extend the limit to the junior age pupils. They can still legally be taught in a class of any size.

I welcome the acceptance that teachers need to be trained and the work that Chris Waterman is doing with SATTAG and the manifesto on teacher education should help make clear to all where the Parties stand on this issue during the general election. Every MP seeking re-election will have received a copy of the manifesto in the post and as a contributor I hope that they read it and make their position clear.

There are big risks for education in England after the election as any coalition propped up by Scottish Nationalist MPs wouldn’t have a majority on education issues in England since it seems unlikely many Scottish Nationalist MPs would want to hang around Westminster to vote or even speak in debates about schooling in England; not a topic they know much about anyway. In that respect, education in England could be the big loser of a hung parliament with the Secretary of State having to be mindful of what might be voted down in parliament. This is an issue that no doubt will be discussed further between now and the 7th May.

Schools rebuff call to use unqualified teachers

Posted on by
Reply

The DfE tables in the 2013 Teacher Workforce Survey that reveals the changes in pupil teacher ratios over time. The data also says something about the use of qualified and unqualified teachers by the different types of school. Despite the increase in pupil numbers, PTRs in the maintained primary sector appeared to have improved between 2012 and 2013. However, they worsened in primary academies. This may well be down to the mix of schools in the two groups and it is more instructive to note that PTRs across the whole primary sector remained unchanged for the second year in a row at 20.5 for teachers of all descriptions, despite schools adding to their cash reserves during this period.

In the secondary sector, where more schools are academies of one sort or another, PTRs for qualified teachers worsened from 15.5 to 15.7 after improving in the previous year. The overall PTR for the secondary sector is still 1.5 pupils per teacher better than in 2000, so the support for funding in schools during this parliament seems to have helped, at least with staffing levels.

The DfE also published data on the difference in the ratio between qualified teachers in schools and all teachers, qualified and unqualified. As the latter include Teach First and probably some School Direct trainees on the salaried route ‘unqualified’ isn’t the same as the former ‘instructor’ category. As this data is two recruitment rounds after Michael Gove freed academies to employ anyone as a teacher it is interesting to see what signs there have been of any change in the balance between qualified and unqualified teachers being employed.

In primary maintained schools the difference between qualified and all teachers remained at 0.4 of a pupil between 2012 and 2013. In primary academies it reduced from a gap of 0.8 to 0.7 of a pupil; so no dramatic swing towards unqualified teachers there. In the remaining maintained secondary schools the gap between qualified teachers and all teachers widened from 0.5 of a pupil to 0.6. In academies it also widened by 0.1 of a pupil from 0.7 to 0.8.

Among the different types of secondary academies, in free schools the ratio between qualified and all teachers widened from 1.3 to 2.3, a noticeable change in the ratio in a single year. However, in converter academies there was little change in difference between the PTR for all teachers and for just qualified teachers increasing by just 0.1 of a pupil.

In UTCs and Studio Schools serving the post-14 age-group the gap was largest of any group of schools, with a difference of 3.4 pupils per teacher between the all teacher PTR and the qualified teacher PTR. This was up from 1.7 in a year, possibly because of the number of these schools opening had increased.

Overall, there doesn’t seem to have been a large swing towards the use of unqualified teachers and much of the change may be down to the expansion of Teach First and School Direct between 2012 and 2103. Rejecting the unprincipled use of unqualified teachers is sensible. Whether, as a recruitment crisis develops, there will be enough qualified teachers to go around is another matter. As regular readers know, we are tracking that situation in secondary schools through TeachVac at http://www.teachvac.co.uk if you are interested. The February newsletter to be issued next week will reflect our latest finding.

No good with numbers

Posted on by
Reply

This blog has always contented that numeracy wasn’t Michael Gove’s strong point during his time as Secretary of State for Education. Today the National Audit Office seemed to affirm that view when it produced an adverse opinion on the financial handling of Mr Gove’s flagship academy schools policy. The NAO concluded that the DfE failed to meet Parliament’s accountability requirements on academy spending. The NAO said that ‘the inability of the Department for Education to prepare financial statements providing a true and fair view of financial activity by its group of bodies means that it is not meeting the accountability requirements of Parliament.’ Their analysis continued, ‘In particular, if the challenge posed by consolidating the accounts of so many bodies and the fact that so many have a different reporting period is to be surmounted, the department and Treasury need to work together to find a solution.’

Much of the problem stems around the fact that academies have the same financial year as their academic year but the department reports on a government financial year to end of March so don’t know the absolute state of finances at the end of the financial year in academy trusts, but must make some assumptions. This isn’t a new problem for government since universities have had academic years as their financial years for a long time and the department could no doubt have learnt from that experience. But, as universities are now in the business department and not the DfE, perhaps they didn’t think to ask for advice in the headlong rush to get the 2010 Academies Act on to the statute book.

A Secretary of State interested in the finances of the department might have seen this issue coming. His hedge fund managers and others on the department’s board must also answer as to why they either hadn’t noticed or weren’t bothered by the reporting arrangements for academy trusts’ use of public money. As the following extract from the department’s consolidated accounts shows, there was in fact an awareness of the issue.

Followings discussion with Ministers, the Group has chosen not to compel ATs to adopt its 31 March financial year end, both to avoid misalignment of ATs’ financial and academic years, and on the principle of giving ATs as much operational independence as reasonably possible. This allows synchronisation of both their business and financial decision making: alignment of an AT financial year to the academic year enables the accounts to be more useful at a local level, as factors such as budgeting, recruiting and funding are usually based on the academic year.

This decision makes operational sense for ATs but it means that the Group accounts now have to be constructed through the application of a number of significant and material adjustments. This is to cope with problems that arise from having different financial year ends within the Group, and from ATs and the rest of the Group preparing financial statements using different accounting standards. As the number of Academies increase, there is a growing risk that this will give rise to material error or uncertainty within the financial statements. This risk has been realised for both the Group’s 2012-13 and 2013-14 accounts, as set out in the C&AG’s audit certificates and reports, which issued a qualified audit opinion for 2012-13 and an adverse audit opinion for 2013-14.

One wonders what those schools that are not academies make of this justification since their budgeting and funding would also be more usefully based upon an academic year as is most of their recruitment. The operation of two different sets of reporting years is surely not a long-term solution for a government that claims to want to reduce costs. A process of harmonization should be high on the agenda of the department after the general election.

Finally, buried in the depth of the report, is the fact that spending on international air travel has increased from £30,000 in 2010-11 to £234,000 in 2013-14. Even more worrying is the associated comment that ‘reasons for this are being investigated.’ This seems to be another area where financial controls don’t allow for immediate explanations.

Prediction comes true

Posted on by
1

In December I wrote on this blog in a post headed crocodile tears that: ‘One must assume that since the majority of academies are secondary schools the overall figure for school balances might be in excess of £4 billion and possibly even higher across the system.

’ According to figures obtained from the DfE and printed in the Guardian today schools are carrying balances of more than £4 billion and, as I predicted, academies had more than £2.4 billion in reserves at the end of March 2014, although one must be slightly careful as that isn’t the end of their financial year as it is for other state funded schools.
Although schooling is big business, with millions of pupils and more than half a million teachers, this is still a sum across all schools equal to half the level of investment it is suggested that the NHS needs in England between now and 2020. The question must therefore be, is this level of reserves necessary at the school level and, if not, what can be done about the situation?
Guidelines suggest reserves of 5% for secondary schools; 8% for primary schools and I would suggest perhaps 10% for the smallest rural primary schools. However, the Minister in his answer to Frank Dobson’s question referred to schools holding one month’s expenditure as the test of solvency. That equates to just over 8% of annual revenue, so probably a bit high for a large secondary school since academy financial years mirror the school year so salaries are secure for the whole of an academic year.
Today Children’s Services Weekly has reported that Cambridgeshire faced a large increase in home to school transport costs due to more staying on after sixteen and increased SEN transport costs. This highlights the dilemma facing our education system: putting the funding where it is most useful. Certainly sitting idle in schools bank accounts because there might be a rainy day at some point in the future, is a waste of public money. As regular readers of this blog know, I dislike revenue spending being saved and turned into building projects for future pupils. The money is, in my opinion, for the education of the present generation not for their younger brothers and sisters.
Personally, I think the government should now publish the revenue balances of all academies in the same manner as they do for other publicly funded schools. They should also measure overheads paid to academy trusts compared with local authority charges for similar services and those bought directly from the private sector. Protecting the education budget is one thing, but obtaining value for money is another and equally important duty.
As regular readers know TeachVac launches today. It was originally an idea to collect data about the labour market but now, like the disruptive retailers, it has been shown to offer significant saving while providing the level of management information any large organisation should possess about the turnover of its workforce. If you haven’t been to http://www.teachvac.co.uk do pay a visit and view the demo videos on both the schools and teachers sections of the web site.

Funding of academies and free schools

Posted on by
1

I was intending to keep the 200th post on this blog for a reflective piece looking back over the first 199 posts. As a result of a Statistical Release issued today by the DfE that blog can wait. The DfE published data about academies and free school and their expenditure during 2012-13 at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/360139/SFR24_2014_Main_Text.pdf

There is a major anomaly on the front page where some headline statistics are presented. Nowhere does it say that the figures used are derived only from those relating Single Academy Trust information and thus seemingly don’t include data from schools in Multi Academy Trusts. Yet that is the message in a footnote on the un-numbered table in the spreadsheet of detailed tables associated with the release where on the index page it says of the National Median data ‘National median income and expenditure for academies with certain characteristics’. If it is the case that the data only applies to schools in SATs then the headline page should be revised to make clear that the data does not cover all schools with the title academy or free school but only those not part of MATs as it indeed does on page 2: but who will read the small print?

I haven’t had time to work out whether or not the addition of MATs would alter the figures and I haven’t yet considered in detail whether the median figure is the best of the available measures of central tendency to use with this data. Representing the data in graph form using candlestick graphs that allowed the number and range of outliers – both low and high – might have provided a more interesting picture of the range of expenditure.

Comparing two years of data when the sector is growing probably isn’t helpful either as if the balance between schools in and around London and the rest of the country was changing that would skew the income side of the picture and might account for some or the entire decline in income between the two years.

One point that did stand out was the relatively high figures studio schools and University Technical Colleges spent in teaching staff costs. As these schools were mostly in their first year of existence, teaching costs in excess of £6,000 per pupil may be acceptable. Should they fail to recruit sufficient pupils in the future, and a previous post has expressed some anxiety about their numbers and attendance patterns, then whether this is money well spent may be a subject for discussion in the future. Certainly in comparison with the three City Technology Colleges their staffing costs look very high.

It is also interesting to note that although the median figure for primary academies expenditure in 2012-13 was above their income, presumably meaning that they had to draw on reserves, the secondary academies in the median group didn’t spend all their income and put away £48 per pupil into reserves. At this stage of their existence it is too early to tell whether that is both sufficient for depreciation and other unforeseen expenditure or too much. It would have been helpful to see this figure against the school reserves to identify what has happened since these schools changed status.

Finally, as academies and free schools use a different financial year to other state-funded schools it is difficult to make any comparisons between these and other schools.

‘£56k’s being spent to give children a sandwich’

Posted on by
3

The headline in today’s Guardian above an almost universally negative article about the Free School Meals initiative is indicative of the feelings of many educationalists about the policy: frustration at the funding, unhappiness at a lack of consultation, and too often an apparent unwillingness to look beyond the obvious tried and tested solution.

Firstly the money issue. Schools in Oxfordshire charge £2.00 at present for a meal, but will receive £2.30 per meal taken from September, so there should be a greater contribution towards serving costs than at present. As to a small chain of academies having to employ a catering supervisor, as mentioned in the Guardian article, this really demonstrates the dis-economies of scale of small academy chains. In 1974, the debate about local government re-organisation centred on whether an authority with 250,000 citizens was large enough to manage a school system. In the market-based world of the past quarter century this sort of debate about size and efficiency has been thrown out along with the bath water. No doubt the failure of an academy chain today, the first such failure, will be seen as partly due to economic rather than educational reasons, especially as it had no geographical integrity to the group of schools it oversaw. Perhaps this might re-open the debate about size and effectiveness of schooling.

Finally, on the money issue, many local primary schools once again under spent their budgets in 2013-14 despite locally submitting budgets showing that they would draw down several million pounds of reserves. It is in my view entirely appropriate to use some of this cash to introduce the free school meals policy.

Where there has been a failure is probably over the discussions between politicians and teachers’ leaders, especially the leaders of the heads associations and the governors. Confrontational politics makes for interesting times, but can inhibit the smooth operation of government. I don’t advocate a return to the days when a small cabal sat around a table and decided everything, but under the present approach a policy that needed to win the schools’ hearts and minds didn’t even attempt to do so; sadly, the leaders of my Party don’t seem to have fully understood that basic tenant of leadership.

The policy of free meals does have real benefits, they may not all be directly educational, but with the growth of zero hours contracts they will ensure no child loses out on lunch because of the form filling required of parents; and mothers, since it is they that usually either find the money or buy the packed lunch in many households, will see an extra £400 or so in their purses from September onwards.

I would like to see more of the ‘can do’, but after six years of economic hardship I suppose the present attitude is only to be expected. And to the head juggling building work, child protection issues, teaching  and learning, and the introduction of free school meals: that’s the reality of leadership.

Academies: the DfE charm offensive starts here

Posted on by
1

Now it may be entirely coincidental, but over the past couple of weeks there has been discussion on the internet about the powers of academies, and specifically about their control of the assets in the Trust deed, and then yesterday the DfE have published a paper entitled Academies; a myth buster. https://www.gov.uk/government/publications/academies-a-myth-buster Hopefully, this document will survive in the public domain longer than the last DfE publication reviewed on this blog.

The DfE document addresses the land point as follows:

When a community school becomes an academy, the new academy trust takes on the legal title to the land from the council, doesn’t it?

Wrong. When a community school becomes an academy, legal title is not transferred from the council to the academy trust. The freehold is retained by the council and a lease is granted to the trust.

Note, that the DfE only mentions community schools. My understanding is that if a school is a Foundation School the situation over the title to the land may be different. Indeed, there have been suggestions that some schools have looked into a two stage process of becoming a Foundation School, and then becoming an academy specifically because of the land issue. If there is a loophole with regard to ownership of the land and buildings that must remain public assets, then it should be closed forthwith.

There is another part of the document that reads rather clumsily in the present world of Commissioners and the central control of all schools from Westminster.

There isn’t much financial accountability around academies though, is there?

Wrong: the financial accountability systems in place for academies are more rigorous than those for local authority-run schools and they mean that not only do any problems get uncovered but also that there can be swift resolution of any issues. The spotlight of this accountability system demonstrates that academies cannot hide from their responsibilities and are held to account for their actions. There have been almost 200 detected cases of fraud in council-run schools.

By locally-authority run schools the DfE author presumably means community and voluntary schools. But, to describe then as locally-authority run is an insult to reality. Perhaps that’s why they are later called council-run schools, a quaintly archaic term. Interestingly, although in 200 of these schools, that set and control their own budgets, there have been cases of fraud over an undefined period of time the document doesn’t say how many cases of fraud, if any, there have been in academies during the same period, thus perhaps creating a new myth that academies don’t have any cases of detected fraud.

Finally, the DfE is categorical about profit answering that:

Oh right – but academy trusts are private companies and can make a profit.

That’s not true either: all academy trusts are charitable trusts and they cannot make a profit.

But, the DfE doesn’t say anything about either academies accumulating surpluses or the need for arm’s length contracting, especially where the academy is part of a chain that may encourage individual schools towards particular contractors.

One myth that isn’t addressed in the DfE document is that councils cannot force academies to help when pupil numbers in an area increase and the academy has spare places. Perhaps because academies can behave in that way, so it isn’t a myth, even if it could cost the council thousands of pounds in extra transport charges finding other schools for the pupils further away from the academy with spare places.