Financial benchmarking
Main text
Best practice
Further information
All Local Authority maintained schools are required to submit Consistent Financial Reporting (CFR) returns. CFR is the national framework for schools and LAs of income and expenditure items and balances. It was developed by the DCSF, in partnership with the Audit Commission and Ofsted. It is the main source of information on how schools spend their resources. It aims to meet the needs of all users of school financial information (school business managers, LAs, the Audit Commission, Ofsted and the DCSF).
The Schools Financial Benchmarking website is available to help schools in self management and improve efficiency through financial benchmarking. The Department, Ofsted and the Audit Commission worked together to improve on the previous website. There are over 20,000 school records available on the site to enable financial comparison and to help schools to challenge how they spend money. The website has been developed to include a wider range of information, as well as a larger number of schools.
The data currently available on the website is for the financial year 2008-2009.
Benchmarking the data provides evidence to identify significant differences in the way schools manage their resources. Through comparison with other schools' spending and patterns of service, schools can determine whether there is scope for doing things better: improving efficiency, reducing costs or identifying the potential scope for savings.
Financial benchmarking in schools is about more than just effectively managing the budget. It is about achieving best value, the Government policy designed to further continuous improvement in locally provided services, including education. Best value in schools means that resources should be applied to best effect. It means more that just picking the cheapest option.
Financial benchmarking can help schools to challenge the way they do things. Better use of finite resources can have a direct impact on educational outcomes, for example, in progressing towards targets. The role of head teachers, and school business managers is crucial. They can encourage other schools to use the Schools Financial Benchmarking website. They can also involve front-line managers and staff in seeking out and implementing change. With strong leadership and support, schools can achieve measurably good outcomes from benchmarking their expenditure.
For more information, visit the Schools Financial Benchmarking website, or see Section B in Version 4 of the School Finance Pack.
Last updated: 19 December 2009
Main text
Best practice
Further information
