Changing financial landscape
At the date of writing almost 500 schools have completed 2024 school-year data in the Financial Survey for Schools (FSS) with another 90 in progress. Don’t forget you can participate at anytime until we roll the FSS in April 2026 to gather 2025 school-year data.
The FSS shows the average non-government school reinvested two and half times depreciation in campus improvements in 2024, cash reserves reduced by 10%, debt was much the same but operating surpluses reduced by 14%. Overall, the sector was sound with an average 2.7 months in cash reserves and Debt/EBIDA of 2.9 times.
From our work with schools this year, given wage and building cost increases and staff shortages, 2025 may see a further reduction in operating surplus and increased debt.
🛠️ | FSS — a gateway to Financial Tools
Participation in the FSS is the gateway to many financial tools and services to help schools navigate this changing financial landscape by helping identify and pull the right levers to strengthen financial sustainability. The secret is doing this in a timely manner. So, participate in the FSS and seek help early if required.
I sincerely thank the hundreds of schools that have trusted us again this year and I also particularly thank the wonderful Somerset Education team for sharing their considerable skills to help our school clients.
🚀 | The future
2026 will see me resuming my PhD research focused on predicting and preventing financial stress for non-government schools. This research contributed to the development of the SKI Scenario Report which is now a financial tool available to FSS participants. This tool enables instant financial forecasting and risk assessment for changes in key variables like enrolments, staff, costs, building projects etc.
My mind is bursting with ideas, one being the School Financial Index (SFI) which will help schools to rate, triage and address potential financial stress — prevention being better than cure. Stay tuned!
🏖️ | Happy holidays! Year-end office times
Somerset Education offices will be closed from 5.00pm Friday, 12 December 2025 to 8.30am Monday, 12 January 2026. If you have any queries during this time, please call us on 1300 781 968 or email info@somerseteducation.net, and we will do our best to respond in a timely manner.
John and the Team.
🍎 Somerset Education | Simplicity | Integrity | Professionalism
John Somerset is a Chartered Accountant. He has extensive knowledge of the independent school sector and is past President of Independent Schools Queensland and a past board member of the Independent Schools Australia.
UPCOMING EVENTS:
Association Independent Schools of Western Australia: Financial Management of Independent Schools — Perth WA, 29 April 2026.
Independent Schools New Zealand: Financial Governance for Independent School Leaders — Wellington NZ, 11 June 2026.
Association of Heads of Independent Schools of Australia: Pre-conference financial workshop — Perth WA, 06 October 2026.
Somerset Education Training and Education: Webinars and Seminars — ‘Live’ and Videos-on-demand, John Somerset.
Somerset Education Customised Presentations: For School Boards and Business Managers — Ongoing, John Somerset.
Q | Any questions?
🍎 Somerset Education | For FSS, budgeting, reporting tools, or financial governance training contact us via email survey@somerseteducation.net; or telephone 1300 781 968 (International +61 7 3263 5300).
📊 Cole School Experts | For accounting, payroll and HR, cash and fee management contact us via email office@coleschoolexperts.com.au.
We look forward to your ongoing support, or if new to the survey, we warmly welcome you joining in.