Guidance: ESFA: college financial planning handbook and financial plan

College financial planning handbook

The college financial planning handbook sets out ESFA’s financial planning framework for sixth-form and further education colleges. Colleges must refer to this document when preparing the Integrated Financial Model for Colleges.

Integrated Financial Model for Colleges

ESFA has issued a new financial model that replaces the financial plan and cash flow templates previously used. The information submitted in the Integrated Financial Model must give a realistic view of financial performance and reflect the cost of implementing the college’s strategy.

We have published an unprotected version to allow colleges to easily see how the model works.

Supporting commentary

Colleges must also prepare a supporting commentary, which sets out:

• a summary of the corporation’s strategic objectives
• a description of how the IFM is consistent with the corporation’s strategic objectives
• explanations for significant year-on-year movements in the statement of comprehensive income and balance sheet
• explanations for significant variances between the estimated outturn for the current year and the original budget
• a summary of how risks to cash flow insolvency have been managed and mitigated
• the contribution made by all areas of material activity, including corporation subsidiaries and joint ventures, where applicable
• how the corporation plans to service its debt and finance its capital projects
• sufficient and relevant evidence to support any request to moderate a financial health autograde of ‘inadequate’

Submission arrangements