Project course: developing a financial model of a school

Abstract

A lot of private schools deny admissions to the disadvantaged section of the society even when there is a provision of 25% reservation for them in such schools by the RTE Act mandate. The denial is on the grounds of financial infeasibility. This report explores the validity of this claim by developing a financial model of a typical school and then determining the feasibility of RTE implementation. A number of sources such as school visits, expert interviews, interaction with parents, students and teachers, surveys as well as secondary sources of information have been used to gather data about the various revenue/cost drivers as well as their contribution in the overall income/spend of schools. A model has then been created for low, medium and high income schools as well as chain schools after making reasonable assumptions. The model helps conclude that RTE implementation is not feasible for low level private schools. However, if worked around efficiently - there’s scope for its implementation in mid and high level schools, as well as chain schools.