ABSTRACT
This chapter describes simply some of the basic information which all governors need in order to manage their school's finances effectively, and to carry out their legal obligations. At the time of writing there is some concern that a hostile government might seek to remove charitable status from schools, possibly also to levy VAT on school fees. It is essential that governors understand the distinction between delegation and abdication. The administration of each budget will be given by the governors either to an individual such as the head teacher or bursar, or to a sub-committee. Setting fees for the complete school year opens up the possibility of spreading payment of fees over, say, ten months. Cash flow management is an important aspect of any commercial enterprise and a school is no different. The Charity Commission have summarised Governors' accounting obligations. The distinction between the types of funds might seem irrelevant to the average school.
