First, a simple, two-question quiz:
1. Your reaction to the title of this article is:
- Boredom – I have no interest in this.
- Fear – I was an English major.
- Curiosity – What is my role vis-à-vis the school audit?
- Relief – I don’t have to worry about finances – my CFO takes care of this.
2. Who’s responsible for the financial health and sustainability of the school?
- The Head
- The CFO
- The Board Treasurer
- The Board’s Finance Committee
The answer to #1 depends on you. The answer to #2, in our view, is “E – all of the above.” But the Head has a critical role, and few of us as Heads come into the job with any experience in this critical dimension of school leadership.
That is where SSL can help.
We offer help on two levels.
- At a core level, the Head needs to be a full partner in the myriad key financial decisions a school faces every year. What is the school’s strategy for tuition setting? For financial aid? For faculty and staff salaries and benefits? Are the school’s finances sustainable over a long period of time? Trustees cannot do this critical work without the ideas – indeed, the leadership – of the Head. We can help school leaders understand the dimensions of this vital work. For leaders who want to push further, we can also help you think about financial modeling and how to put your school in a broader context of peer schools.
- Second, if as a new (or veteran) Head you feel a need for some fundamentals, we can offer a tutorial of sorts to help you understand the purpose and functioning of operating statements, the balance sheet, and the audit. We can also help you become more comfortable with key issues relating to the endowment and the work of the Investment Committee.
Interested? Contact us here.