How can ICFP help with assessing central trust costs?

Unlike other ICFP tools, ICFP.school redistributes the central trust costs to schools so it is possible to assess the efficiency of the both the school and the Multi-Academy Trust as an organisation.

This means there should be at least a balance between trust and non-trust schools as, for trust schools, any contribution made by schools to the central trust should be balanced by a reduction at school level. For instance, taking one of the areas that most trusts include as part of their central services, if there is a central finance function in the trust then this should lead to a reduction in school level finance posts and a saving that matches the increased central spend. Ideally, in really well-run trusts, the total spend on finance staff across the trust would be reduced and represents a saving. In these well-run trusts the overall savings then become available for other spends to support pupils.

Finding ways of assessing the efficiency of the central function itself, outside of the whole trust, is a real challenge as the services provided by the central function can vary so significantly. Some trusts, for instance, offer a very limited service on a low central charge whilst others offer a full range of services on a much higher charge.

This reapportionment of central cspends functionality of ICFP.school responds to the accusation that is often made that the central charge is a drain to individual school’s budgets. The apportionment of those central staffing costs to the schools allows the school to understand the impact of the central trust on its ability to function efficiently.

We often see headlines, or hear from individual schools, about how the trust central charge is an additional cost. Unless the trust is poorly led and managed* then this should never be the case. The central charge should allow the school to make attendant savings which balances out the charge.

ICFP.school, particularly when a trust is using the Organisation View’ function, will help MATs understand their central efficiency.

*It should be noted that when trusts are initially set up, or change their structures, then it may take time to rebalance the total costs. In these circumstances, for a short period, the total cost of the school and central services may be greater than the both the initial cost to the school and the re-balanced cost for the whole trust. If this situation becomes permanent then this is when trust’s face issues.