Streamlining local authority reporting with Access Education Finance

While transitioning to a new system offers numerous advantages, one of the key challenges schools face is ensuring smooth local authority reporting. In this article, we explore this challenge in greater detail, and discuss the latest functionality available through Access Education Finance that enables smooth local authority reporting, no matter what LA you’re part of.

To learn about our latest customised reporting feature for local authorities, get in touch.

What is financial reporting for LAs and why is it important?

Financial reporting for Local Authorities (LAs) is the process of creating reports that summarise a school’s financial activities. It plays a crucial role in funding and overseeing schools within their jurisdiction, and ensures transparency, accountability and proper management of public funds.

Top reasons why financial reporting for LAs is important:

• Resource allocation: LA financial reports show how much money is allocated to education as a whole. This information is vital for determining the budget each school receives.
• Monitoring school finances: LA financial reports include breakdowns of income and expenditure for schools they maintain. This allows the LA to identify spending patterns, potential inefficiencies, and areas where schools might need additional support.
• Accountability to schools: Schools rely on the LA for funding, so financial reports ensure transparency in how those funds are generated and distributed. This fosters trust and allows schools to hold the LA accountable for their budgetary decisions.
• Informing school strategy: By understanding the LA's overall financial health, schools can make informed decisions about their own budgets and spending priorities. This might involve prioritising certain programs or seeking alternative funding sources.
• Public scrutiny: LA financial reports, which often include school spending details, are accessible to the public. This allows parents and residents to see how much is being spent on schools and hold both the LA and schools accountable for effective resource management.

Financial reporting creates a loop of information that connects LAs, schools, and the public. It ensures transparency, promotes responsible budgeting, and ultimately contributes to a better resourcing of schools.

The pain points of local authority reporting

Navigating local authority reporting can be a minefield for schools transitioning to new finance software.

Here's why:

Challenges with data submission:

• Formatting issues: Every LA seems to have its own unique data format and submission process. These formats can be highly specific, and even minor deviations can lead to rejection by the LA. Imagine the frustration of spending hours generating a report, only to have it kicked back because a single column isn't in the exact order the LA expects.
• Inflexible formats: These predefined formats often lack the flexibility schools need. They may not capture all the relevant data points used in the new finance software, forcing schools to squeeze information in or leave it out entirely. This can lead to inaccurate or incomplete reports.
• Manual processes: To bridge the gap between their new system and the LA's format, schools often resort to manual data reformatting. This is a time-consuming and error-prone process that diverts valuable resources away from core financial tasks.

Limitations of Traditional Systems:

• A lack of customisation: Many traditional finance software solutions don't offer the ability to customise reports for LA submission. Schools are stuck with the program's default reports, which may not align with the specific requirements of their local authority.
• Manual report creation: In some cases, schools are forced to rely on manual report creation, like copying data into notepads, to meet LA formatting demands. This is a tedious and error-prone approach that lacks the efficiency and accuracy of a modern software solution.
• Resistance to change: Local authorities can be hesitant to accept reports in non-standard formats, even if the data itself is accurate and complete. This creates unnecessary friction in the reporting process and can lead to delays in receiving vital funding.

The importance of efficient local authority reporting

For schools, efficient local authority reporting isn't just about ticking a box - it's the lifeblood of their financial health.

Firstly, timely and accurate reports are crucial for securing funding from the local authority. Delays or errors in reporting can lead to funding delays, creating a cash flow squeeze that can impact essential school operations.

Secondly, inaccurate reports can have serious repercussions. Over-reporting funding needs can lead to clawbacks, while under-reporting can result in missing out on vital resources.

And finally, smooth and efficient reporting fosters a positive and collaborative relationship between schools and local authorities. It demonstrates financial accountability and transparency, building trust that benefits both parties.

Meeting unique needs: A new approach to LA reporting

Initially, accommodating unique reporting needs for new customers meant disrupting our software roadmap. This resulted in delays for existing customers, as their desired features had to wait for the next development cycle. To address this recurring issue and meet the rising demand, Access Education Finance have implemented a new approach.

This approach involves centralising all report information. This readily available data allows the professional services team to step in and consult with new customers. The professional services team can then build reports tailored to each local authority's specific requirements. This streamlined process significantly reduces fulfillment times for customers.

Furthermore, as we develop these reports, we anticipate identifying clusters of opportunities based on the commonalities between different LAs' central finance systems. This will allow us to further optimise our services and potentially develop standardised solutions catering to specific LA system types.

Streamline your financial reporting today

Transitioning to a new finance software system can seem daunting, but it doesn't have to be. With our new LA reporting functionality, our software allows for a centralised data repository, easy data extraction capabilities, and robust reporting tools.

If you want to learn more, schedule a free consultation with our experts to discuss your specific needs and explore solutions that can transform your financial operations.