Developing the Trust

For this episode Tim Warneford is in Sittingbourne in Kent to speak to Phil Reynolds. Phil has spent over 20 years specialising in academy schools accountancy firstly at pecialist accountants Kreston Reeves and now with his own consultancy PLR Advisory We explore how specialist accountancy can assist schools determine a trust strategy and how upskilling in house SLTT through training and development can achieve operational wins.

For this episode Tim Warneford travels to Wiltshire to speak to Powerful Allies Chairman, James Robson, about the risks posed to academy schools for energy procurement in an un-regulated market place. On this episode we discuss: The raw deals schools are getting with energy contracts Opaque culture of energy procurement system Seems against schools interests Risks facing schools in unregulated market James Robson's path to the academy sector His background in aviation, airports then electricity and gas The industry being, surprisingly, unregulated The shock that academies have no recourse if things go wrong Going into the market with a transparent tender Working on better contracts than the local authority Local authorities no longer happy with procurement methodology But are reluctant to change supplier Introducing competitive tender means best value ESFA being strong about cost certainty Local authorities having no competitive tender or certainty of future price Volume purchases being attractive but not bespoke Academies cannot deal directly with supplier Energy is the second largest cost to school (after staffing) How schools/academies should challenge brokers who contact them Schools need to be more sceptical about brokers' offerings An apparent disconnect between the contract and the school How securing a fixed price energy contract for the duration IS possible How they are fixing rates for clients for several years Some schools getting a nasty shock with energy cost rises There are recourses for schools that have been overcharged schools will need help with this Schools likely to face more costs - cost certainty being essential School staff having been wrongly trusted or been misold by brokers

The hot topic of conversation across the sector is the recent update from the ESFA, revealing that the much awaited publication of the 2021-22 round of Condition Improvement Fund (CIF) awards, have been postponed until 'mid-June'.

This episode looks at the impact of the delay, why CIF bids fail and how to ensure your CIF submission stands the best chance of success.

On this episode we explore:

The latest news on CIF

The announcement being not was anticipated.

The updates on gov.uk including the size of the CIF allocation (£502 Million)

A drop from last year's double round of CIF of £620 Million

But up by 20% on previous years CIF pot of circa £440 million

The ESFA saying mid-June' will still give lead-in time

Post Brexit issues

The knock on-effect of more projects will be delivered in term time

An increase in health and safety risks and for disruption for schools

Some trusts may defer projects until next year

Stiff competition between CIF eligible schools

Why CIF Bids fail

Tim's recommended approach for a successful bid

How to make a bid stand out

Contact Tim:

07970 466 010

[email protected]

On this episode Tim talks to Harvey Sinclair, a technology entrepreneur and CEO of E Energy PLC about the fast-moving world of lighting and also electrified heating discussing how schools can save energy and indeed costs by changing their electrics.

On this episode we cover:

Harvey's background in the industry

Schools struggling with capital investment

Efficiency upgrades always way down the list

Switching to LED to fund savings

Salix being attractive but fraught with problems

Offering a Salix advisory process

Need a high quality energy services provider with experience in schools

Most schools considered LED lighting but not gone through with it

Can be a partner for advising and auditing

Launched the new fund to support the 0% funding solution

Investing 5 million into their business model

Having a seamless data collection process

Collecting date in an unobtrusive way

Capturing data quickly and accurately

The number of pupils can roughly give an estimate of costs

Calculating by room by zoning buildings during operating hours

Installing over 70 calls in 8 weeks of summer holidays

Having the capacity to do 20-30 schools a month

The 3 year plan to fit 3000 schools

10% of the schools market

Looking into electrified heating as well as lighting

Being a specialised energy company

Will conduct a no win no fee survey that will turn into complete proposal for the school

Cost of delay is the biggest value driver of any energy project

They can be on site within a week

Then two weeks later a report will be finished

Having exclusive products specific to education market

A ten year warranty and within a week delivery

Tim Warneford is in Alton, Hampshire, with Steve Bolt, director of BCR Associates, a cost management consultancy that support clients – including academies - to increase efficiency, manage risk, ensure compliance and rationalise procurement costs. Tim and Steve are also working on a collaboration with Lloyds Bank education team to support academy trusts seeking to assist academy trust to optimise resources and maximise potential.

On this episode we cover:

The challenges of managing large estates, buildings and energy efficiency

BCR understand how a site consumes energy

They will audit and review their energy

To allow academies to help educate staff and pupils on energy consumption

Looking at what is going in the energy metres

Getting clamps sponsored so there's no outlay for the school

Schools taking positive steps towards reducing energy consumption

Pupils then looking at global warming and climate change

DfE encouraging people to address carbon reduction

Lockdown reducing energy consumption worldwide

Schools being encouraged to invest in technology

Analysing data collected about a school's energy management

Schools having three contract options for energy

Over 27 government levies and taxes in energy products

Making sure contracts allow schools to reduce energy without penalties

The commercial world having more flexibility than LEA schools

Gas prices at ten year low due to lockdown

Financial challenges always there for schools

Grants that are available to support capital outlay

Creative solutions such as renting roof space for cheaper electricity

'Educating the educators' to make savings

Operating leases versus power purchase agreements

Encouraging estates to reinvest back into income generating schemes

Schools adding carbon management into the curriculum

Pupils getting involved with carbon saving initiatives

Making schools as cost effective as possible

Suggest schools review their current contracts for electricity and a gas

A mid market review will enable schools to negotiate mid-contract and save cash

Tim's revamped due diligence package

Academies can expect a 5-10% energy cost increase each year

Considering the above it is key for academies and schools to act on energy consumption now

Schools needing to have energy plans in place

Tim Warneford is once again out and about now lockdown is easing – travelling and recording with all social distancing in mind of course - to speak to Kevin Yardley at The Generations Multi Academy Trust. Kevin is director of income generation and his role is to ensure the estates facilities yield substantial revenue streams through optimising letting opportunities and via external partnerships.

On this episode we cover:

The impact of Covid 19

Being lucky that the trust is financially secure

But still being hit hard

Main priority being protecting customer base

Kevin's background as a lawyer, criminal barrister and swimming coach!

Working in the London 2012 Olympics

Going as far as possible to deliver value for the client

Navigating the 2008 financial crisis

His son helping him get his current job

Generating school income to academic vision

The holistic benefits to the school and community

Organisational attitude being key to raising capital

Setting about a cultural change in conjunction with the teachers

Bringing in a new booking system

Opening the hall as a venue for large family events (including a wedding)

Bringing new community groups into the school

Looking at pop up restaurants and dinner clubs

Hosting South African swing band nights

Being part of a very inclusive decision making process

Consistently recruiting and retaining outstanding teachers

Upgrading to a 3G sports pitch leading to a lot of opportunities

Being proud to partner with Tottenham Hotspur

Being the premier site for Spurs' women and girls team

The trustees demanding a very high quality of work

Measuring any risk in business plans

Engaging closely with County Sports Partnership and Sports England

Negotiating with SFE and Dept of Education

Primary purpose is always to deliver a fantastic educational service

Secondary purpose is to generate income

Using external consultant to support projects

Upgrading to LED energy efficient units

Having a CFO and Estates Manager meaning meticulous management

Taking time to building and maintain relationships with customers

Government funding announcements having a level of duplicity

Every child needing a fair funding structure

Wishing to leaving a physical legacy of improved facilities at each of the schools he works with, each school to be financially secure and increased community engagement in sport and other activities

The sporting quote that drives him

Delivering free school meals during the summer holidays

Being confident about working their way out of the Covid crisis

For this episode Tim Warneford is in Bedfordshire to speak to Jeremy Pilgrim from School Property Matters who are independent experts in pupil capacity and have worked with over 2500 schools so far.

On this episode we cover:

Working with over 2500+ schools

Staring with only LEAs then Academies then MATs

The government origins of MATs

Feeling academisation brought freedom and autonomy

Although some of this has been reined in with MATs

Pros and cons of MATs v LEAs

Whether MATs are getting the right side of support

Working out the pupil yield from new developments

The drivers for parents selecting schools

Early adopters to academies having done quite well

Are MATs getting the Section 106 funding they're entitled to?

Assessing what schools need to expand

New buildings being attractive to parents

A haemorrhage of pupils when a school is seen as failing

Good schools also having to consider what expansion means

The academy better having improved in terms of expansion

A large percentage of trusts talking of expanding this year

Risk to this growth

Previous estimates of 1000 schools converting a year now reducing to 500-600

Schools now reluctant to convert

LEAs could convert their education departments into MATs

Disparate systems being hard to manage

Section 106 allocation; there is money available that hasn't yet been invested in school stock

Brexit restricting labour pool

How to increase quality of homegrown talent for labour pool

Money needing to be poured into growing home grown talent

Capacity need to be at the forefront

Why would schools maintain buildings they don't need?

This week Tim Warneford is in Stockton-on-Tees to speak to Graham Fitzgerald, general practice and audit director at Baldwin Accountants. As well as dealing with commercial organisations, Graham specialises in the education sector, providing audit and advisory services and working with over forty academy schools including an increasing number of multi academy trusts.

On this episode we cover:

How they entered the academy client market

Rapidly expanding through word of mouth recommendations

Applying passion and expertise to the sector

Charity accounting not being straightforward

Giving clients a lot of free support early on

Retaining clients through this

25% of their work being academy based now

Academies being different to commercial clients

People working in the sector finding it very rewarding

Enjoying making a difference to children's education

Additional revenue schemes still being available for academies

Many schools being blighted by lack of resources

Other schools renting out their resources for cash

Been frustrated about how few academies do financial due diligence

How can suppliers partner to form collaborations to further help academies

Tim wanting to find a pilot to support as above

Previously been in the SFA's in the best interest to convert, but are there lessons we can learn from this

If a school transfers and gets into deficit there can be a lot of issues

Do the SFA put money back into schools that are failing or into the larger MAT?

Being governed by accounting standards

Lack of clarity when pushing new projects through

Some academies and schools sitting on next to no reserves

Rewards for schools getting returns in on time

GAG pooling pros and cons

If academy trusts know what their funding is going to be they can play ahead

The change of policy and government being very frustrating

Most of the risks being outside of the hands of the clients

Hoping that his legacy is that they have made a difference, working with schools not against them

Tim Warneford is in London's West End with Lara Harvard and Zoe Forbes from Ecosphere and Gareth Williams from Eden Sustainable talking about how schools and academy trusts can both save money and also be much greener by installing better energy systems and also their exclusive offer available to both academy trusts and state schools.

On this episode we cover:

Eden Sustainable working with academy trusts and state schools that offer free solar systems to save bills

Agreeing to buy power from the solar system available at much cheaper rate

The specifics needed from the school to do this

Schools not always buying well with energy

Clean, green energy being key in fight against climate change

Eden Sustainable giving schools a lump sum up front

Ecosphere rolling out a plan across Brighton and Hove schools

Rolling out large solar PV projects

Looking at schools in a holistic way; lighting, roof, all energy

Expecting to save schools up to £30,000 a year

Many schools in end of year deficit

Vital for schools to receive further funding

Eden Sustainable flexible when it comes to inflation rate of the PPA

Schools needing to understand their current rates and how they are metred

Giving talks to get the pupils on board too

Reducing CO2 emissions being a big win

Reducing school costs also being a big win

The Pickwell Foundation, supporting charities acting on climate change and people displacement

Eden Sustainable take care of all of the planning, building control, all upfront costs, installation, insurance and maintenance of the panels

Panels can last over 25 years

20-25 lease arrangements available

Can also help boost green flag credentials

A low risk-versus-reward balance for schools

Current major projects in the pipeline

How the climate change message is key for everyone

Eden Sustainable being happy for anyone to pick up the phone and have a chat