Last week, the chancellor delivered his 2018 Budget in which he announced an extra £400 million capital funding for education in schools this year, effective immediately.
This money will amount to a pay out of roughly £10,000 per primary school, and £50,000 per secondary school.
However, the “little extras” cash injection cannot be used for revenue outlay, such as staff salaries, and can only be spent on capital projects, for example purchasing sports and technology equipment, or building maintenance.
Every year, the Budget sparks conversations and debates across industries, and this year has been no different. Whilst many of those in the education sector argue that this capital investment is not enough, Jonathan Simons, Education policy commentator and former government adviser, suggests that any extra funding into schools is a ‘good announcement’.
Funding of UK schools and education continues to be a hot topic, both across the teaching profession and in Whitehall.
Whatever your opinion, managing and tracking school expenditure, therefore, is essential for clarity and concise, accurate reporting within the education sector. It helps the Department for Education understand where the demands on schools’ budgets lie and gives them accurate reports when presenting evidence to the Treasury for consideration when determining future budgets.
How PS Financials can help the education sector
PS Financials’ accounting software is set up so that transactions can be tagged with a range of dynamic data, which has additional fixed, static information associated to it. This provides a clear financial overview and PS Financials’ unified ledger system connects every piece of data, so drilling down and analysis can be completed in just a few clicks.
We expect that the arguably modest equipment funding monies from this 2018 Budget will be included in each academies’ GAG funding remittance advice as an additional funding line, handled within PS Financials under the nominal code called ‘Other GAG’, which is designed to recognise non-standard funding streams.
From a multi-academy trust perspective, the unified ledger allows a complete view of accounts across the trust, with easy access to accounts produced at a local level. This means that finance managers can view data from all the schools across a MAT from one centralised location to develop report and present this information to trustees.
To find out more about PS Financials for education, get in touch on +44 (0) 1733 367 330 or email or book a demo here.