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1 February 2019Press Releases
James Cowper Kreston are pleased to announce the release of the Kreston Academies Benchmark report. Now in its eighth year the report is the largest independent survey of the financial health of the academy sector, surveying 350 Trusts, representing nearly 1000 schools.
For 2019 the report puts a spotlight on the state of deficit for academy schools with 85% of schools showing a deficit when depreciation is included. While the size of deficits has decreased overall the report advises that it will be difficult to reduce future spending any further. There is the significant risk that, without change, Trusts will run out of funds in the next 5 to 6 years.
80% of responders noted two risks to their schools which were top of their risk registers:
The report mentions how these, along with other financial constraints, detract from the improvement of ‘educational and pastoral outcomes which many would think should be the primary focus.’
Of course, the report doesn’t focus only on the negatives surrounding the sector; it discusses the improvement in governance and financial management as the academy sector matures. With more schools joining existing MATs than ever before the report links this with overall growth in the last 12 months.
Darren O’Connor, Partner and Head of Academies at James Cowper Kreston said: “The Benchmark Report is an invaluable resource for the academy sector. Providing an in depth analysis it allows us to understand the health of academies and the wider sector as a whole ensuring that we, as accountants, are well informed when working to assist these schools.”
The 2019 report is available to download on the James Cowper Kreston website. Click here to download your copy now.