KPIs are no longer mandatory for academies
The requirement for academy trusts to select key financial performance indicators has been removed from the Academy Trust Handbook 2023, and the DfE has confirmed that they're no longer mandatory.
There's no requirement for maintained schools to set financial KPIs.
Why KPIs can be useful
Setting financial KPIs can be an effective way to make sure you're:
- Aligning your budget with your priorities
- Using your resources effectively
Examples of KPIs you could use are:
- Spending on particular areas as a percentage of total expenditure (e.g. on teaching staff, supply staff, premises, teaching resources and/or energy)
- In-year balance as a percentage of total income
- Revenue reserves as a percentage of total income
- Average teacher cost
Remember that everything your trust or school spends is about improving outcomes for pupils. KPIs can help you