Can I use ICFP metrics as KPIs?

The Academy Trust Handbook used to mandate Key Performance Indicators (KPIs) as an element of monthly management accounts; this was removed from the 2023 edition onwards. However, the KPIs were one of the more accessible ways for trustees to keep track of finances of the trust and so many trusts still incorporate KPIs in their monthly management accounts.

So, what might a trust choose to track in their KPIs?

Some trusts look at balance sheet figures such as the current ratio or their working capital, both of which look at the relationship between current assets and current liabilities.

Trusts also at total costs like the total income and total expenditure and in-year and cumulative balances.

However, metrics we use in integrated curriculum financial planning (ICFP) add additional levels of insight. When exploring the KPIs trustees should look at:

• How the metrics change and what affects those changes?
• What are the target metric levels for the trust.

Some trusts include the RAG rating of the metrics within the management accounts which can also be very helpful.

We would advise that trust executive staff discuss with trustees which key performance indicators they wish to see, but would also strongly advise that these contain some of the ICFP metrics.

For more information, or to book an ICFP.school demo, please do contact us at office@tsoeducation.co.uk.