Financial Due Diligence

The PLT MAT will draw upon and commission staff with expertise and current knowledge to conduct a range of due diligence work to assess individual schools prior to their admission, including work on education/curriculum performance, financial projections, the status of the school’s property and assets, the position of the school’s LGPS funding, and the accuracy of pupil number projections. Based upon the results of this work, the financial sustainability of applicant schools will be assessed against a scorecard. This scorecard will examine 3-5 year financial projections, sensitivities around pupil numbers, ratios around salary spend on teaching staff, TAs and support staff, and forecast requirements for capital funding.

Those schools that meet the requirements of the due diligence test will be admitted to the Trust, while further work will be undertaken with those that do not meet the required standards. This work will focus on the development of an action plan to improve the financial status of the applicant school, to offset risks and to revise financial projections.

It is the intention that rather than reject from admission to the PLT MAT any maintained school on the grounds of its financial position, the Trust will support all schools in meeting the financial criteria required prior to becoming an academy within the PLT MAT.

Applicant schools will be welcome to join the MAT if agreement can be reached with their local governing body and headteacher to commit to delivering the action plan set out by the sponsor, to ensure that the school is financially sustainable.