The importance of enterprise to academies

Katie Cardona in conversation with Adrian Smith

For schools converting to academies, the Government has made it clear that there should be no financial disadvantage or advantage to their newly found status. But, in reality, academies may find that certain fixed costs and diseconomies of scale eat into the additional funding they receive to buy the services previously provided free of charge by the local authority. These additional costs will include accountancy and audit, a potential for higher employer’s contributions for support staff and maternity leave provisions. Academies cannot run a deficit budget, so their need for extra funds is crucial to their financial survival.

Adrian Smith of Apsidea is an education consultant who advises and supports schools on converting to academy status. He agrees that the time is right to promote enterprise initiatives at academies. Adrian has seen a rise in the number of entrepreneurial, commercially-minded heads and in the appointment of experienced business and finance managers in schools. These individuals are well placed to spearhead an enterprise drive, but the time and effort needed to do this are often prohibitive. Adrian believes the answer lies in the parent body.

“Parent power” could be about to take on a whole new meaning. Headteachers should do all they can to know and understand the backgrounds, skills and talents of their parent body and use this skill base as the driving force for their additional fundraising. Equally, there is usually a broad range of commercial expertise among the governors that should be put to good use in fundraising.

All schools have facilities which, with some adaptation, could be used more widely. Some schools will have expertise that they can share and many will want to fulfil their potential within the community they serve. Academies have an additional impetus to open up their facilities as a means of securing additional funding, provided it does not distract from their core purpose. It is written into the governing documents for academies that there is an expectation that they will seek to raise additional income, but any trade or business for that purpose should be carried out by a subsidiary company. This may sound complicated and offputting, but Adrian says it is a straightforward process and academies should not let this restriction deter them from entrepreneurial activity.

Lettings?
Adrian has had mixed experiences with lettings. State schools have moved away from resident caretaking staff, so the letting of facilities means paying someone to be there to supervise the lettings. There are practical considerations too as lettings will want access to toilet facilities – even when letting the playing field for Saturday football. Sometimes, external toilets will be the answer. Some school caterers can be reluctant to allow their kitchen to be used by outsiders as they can only guarantee no contamination if they are the sole users.

Adrian believes these issues are not insurmountable and if investment can be found for adaptation and changes to school buildings, then lettings can be a lucrative business. He is currently working with a school that has excellent sports facilities that are let extensively and the resulting income covers the maintenance and replacement of the astroturf and swimming pool, therefore bringing benefit to the students during the school day.

Katie Cardona is a consultant with Reed Brand Communications and has a particular interest in schools’ enterprise. Katie can be contacted on katie@reed-bc.co.uk. Adrian Smith can be contacted at adrian@apsidea.co.uk.

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