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36 Part Three Managing the expansion of the Academies Programme<br />

Figure 11<br />

Main drivers of cost increases in converters<br />

The main drivers have been decisions to increase quality, capacity or usage, and differences between academy<br />

and local authority legal/compliance frameworks<br />

Reasons for cost increases, with percentage of base<br />

population ascribing their cost increase to that reason<br />

Areas of cost<br />

increase<br />

Accountancy/finance<br />

staff and services<br />

Base (number<br />

of academies<br />

reporting an<br />

increase in each<br />

cost category)<br />

Differences<br />

between<br />

academy<br />

and local<br />

authority legal/<br />

compliance<br />

framework<br />

(%)<br />

Deliberate<br />

decision to<br />

pay more for<br />

higher quality<br />

Deliberate<br />

decision to<br />

increase<br />

capacity or<br />

usage<br />

Less bulk<br />

purchasing<br />

power without<br />

local authority<br />

involvement<br />

Transitional<br />

costs (e.g.<br />

obligations<br />

under TUPE,<br />

transfer of<br />

software<br />

licences)<br />

(%)<br />

(%)<br />

(%)<br />

(%)<br />

189 56 24 33 3 15<br />

Insurance 127 48 6 3 39 4<br />

Other administrative/<br />

clerical staff and services<br />

Information<br />

Communications<br />

Technology<br />

Other educational<br />

consultancy<br />

Staff training/Continuing<br />

Professional Development<br />

94 38 10 51 3 11<br />

75 19 9 17 19 44<br />

72 33 25 17 12 7<br />

51 27 25 21 15 5<br />

Senior staff salaries 46 15 38 53 3 6<br />

NOTE<br />

1 Rows may not sum to 100 per cent, as some respondents did not state a reason for their cost increase, and others selected multiple reasons.<br />

Source: National Audit Office survey of 266 converters opening between September 2010 and June 2012

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