Yorkshire based BHP Chartered Accountants has worked with Kreston International, an association of independent accountancy firms, to produce a report on the financial performance of Academy schools in 2014.
The report considers the results of around 300 Academy trusts throughout the UK.
It reveals that many Academies are in a stronger financial position than last year, and are reserving funds for future expansion and also to help cover an expected fall in funding per pupil.
The results of this annual benchmarking survey of Academy Schools are published at a time when the political parties are announcing their plans for education, ahead of May’s General Election.
According to Philip Allsop, the partner leading BHP’s Academies team, “a crucial trend is for the creation of Multi-Academy-Trusts (MATs), enabling neighbouring schools to reduce their overheads by sharing common costs. That certainly fits with the greater efficiencies that politicians want to see.
“But every school is different, whether by location or by age-group of pupils. Our benchmarking report provides vital information to the Headteachers and Governors of all Academies, each of whom will draw different messages from its content”, said Mr Allsop.
Nonetheless, there are messages in the BHP report for both Academies and politicians.
“Not all Academies are the same, but the survey shows some interesting trends. Many Academies have significant and increasing cash balances, but their pension deficits from splitting away from local government have also continued to rise”, said Mr Allsop.
“Furthermore the rates of pension and national insurance contributions will significantly increase the staffing costs during the next 18 months and this will mean that a large number of Academies need to make some tough decisions”.
