Financing Educational Services
ESIS operates on a cost recovery basis so that all expenditure is sourced through the selling of services. Costs to ESIS are charged at market rates and therefore charges to schools and the LEAs reflect the full and true cost of the service. As a service governed and operated by LEAs, ESIS cannot generate profit. Given that ESIS effectively operates in the market place, a working balance and contingency are built into the budget each year to allow for changes in the demand for services.
Expenditure
The largest element of expenditure is on staffing, which includes all advisery staff, their secretarial support, the support staff who administer GEST on behalf of the LEAs and finance staff. All accommodation and servicing costs are borne by ESIS along with the costs of purchasing equipment and materials. Other major items of expenditure relate to IT maintenance services, personnel, legal, payroll and financial services, including audit costs, and funding of staff professional development.
- services to schools through annual service level agreements or direct purchasing;
- services to each of the four LEAs as detailed in an agreement negotiated annually;
- GEST management and administration;
- the Welsh Language grant (Section 21) to support the network of the Athrawon Bro;
- specific projects e.g. NOF training, Sure Start Partnerships, European projects, Performance Management, DELLS commissioned work;
- publications;
- inspection contracts awarded by Estyn.