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Financial Procedures Manual ST BEDE’S RC HIGH SCHOOL St Bede’s RC High School FINANCIAL PROCEDURES MANUAL v1 (Incorporating the latest DCSF initiative The Financial Management Standard & Toolkit) INDEX SECTION 1 About the School a) Introduction b) Example Organisation Chart c) Local Authority Scheme of Financial Delegation SECTION 2 Financial Responsibilities and Financial Competencies a) Governing Body b) Example Finance Committee c) Example Personnel Committee d) Example Curriculum Committee e) Example Admissions Committee f) Example Premises Committee g) Headteacher h) Assistant Headteacher i) Business Manager j) School Office Support k) Site Manager SECTION 3 Accounting Systems and Controls a) Purchasing b) Payroll & Personnel c) Bank Accounts d) Insurance e) Income - Public Funds - Private Funds f) Petty Cash 2 g) Staff Expenses h) Audit Arrangements SECTION 4 Assets SECTION 5 Documentation and Security of Records SECTION 6 Budgeting Procedures SECTION 7 Cash Flow Management SECTION 8 Reporting Timetable and Format of Reports SECTION 9 Governing Body: Policy Decisions & Business Interests a) Key Financial Decisions of the Governing Body b) List of Governors c) Declaration of Business Interests d) Tendering Policy e) Lettings Policy f) Non-compliance Policy g) Leasing Policy h) Investment Policy i) Governors Financial Competencies j) Fraud Detection and Response SECTION 10 Risk Analysis and Risk Register SECTION 11 Computerised Systems 3 SECTION 12 List of External Advisors/Contacts SECTION 13 Glossary of Abbreviations and Financial Terms used in Schools SECTION 14 Guides to Setting up and Managing Relationships with External Organisations SECTION 15 The Cultural Imperative & Staff Development and Deployment SECTION 16 Templates SECTION 17 Benchmarking SECTION 18 Resource Documents SECTION 19 Resource guide SECTION 20 Editable toolkit resource documents SECTION 21 User Guide SECTION 22 Demonstration of how to use the Financial Procedure Manual SECTION 23 New DCSF Documents (annual changes) 4 Back to Index St Bede’s RC High School FINANCIAL PROCEDURES MANUAL SECTION 1 1a. INTRODUCTION The purpose of producing a Financial Procedures Manual is to define clearly and document responsibilities and procedures within the financial management of the school, whilst incorporating all the requirements of the latest DCSF initiative (Financial Management Standard and Toolkit). It is vital that all the financial procedures are clear and precise. The documentation recording the procedures is equally important as it informs those involved in the financial aspects of running the school what is expected of them, thus reducing the risk of procedures not being properly implemented. Included in this Financial Procedures Manual are abbreviations and terms used in schools which are familiar to all those involved or employed in education but may not necessarily be familiar to all those employed outside education e.g. Governors, parents etc. For a guide to these terms, please click here. In 2002, The Department for Children, Schools and Families (DCSF) conducted a pilot study of the audit and accountability framework in schools (www.opsi.gov.uk/acts/acts1998) with help across a section of 175 volunteer schools drawn from 11 Local Authority (LA) areas. The pilot study concluded that schools would benefit from help in evaluating the quality of their financial management and in training staff to become good financial managers. The DCSF formed the view that schools needed: a clear and consistent standard for financial management which they could aim to achieve a self evaluation tool to help schools identify their current strengths and weaknesses and prioritise action for improvement. Combined with an external evaluation tool to help those schools that wish to seek an external and independent assessment of whether or not they meet the financial management standard Click here to access the combined Self Assessment and external assessment Tool (G4) Click here to access the online Self Assessment Tool Click here to access Guidance on the process of self assessment (G5a) Click here to access Guidance on the process of external assessment (G5b) Click here to access Guidance on the evidence that maybe used to support assessment To view an examples of what authorities have used as assessment criteria select; Bradford, Hertfordshire; Oxfordshire or Staffordshire Click here for a Best Practice in self-evaluation: a survey of schools and Local Authorities Click here for the Best Practice in self-evaluation: further guidance (2006) a guide to the existing sources of advice on what constitutes good financial management guides to good practice in respect of aspects of financial management not covered by existing guidance A Financial Management Standard for Schools and the supporting toolkit have been drafted, which meets all these requirements. Click here to access Introduction to the DCSF Financial Management Standard. In addition the latest recommendations from the DCSF have been incorporated into the financial procedures manual. For a guide on the essential items required to achieve the Standard, click on this link. The DCSF has also produced a guide to further best practice in financial management for those schools that already meet the Financial Management Standard in Schools (FMSiS) and want to develop practice beyond that level, click here to view this guide. 5 Back to Index The Financial Management Standard itself is a simple statement of what a school that is managed well financially would look like. Good practice in a school which meets the Standard can be analysed under 5 headings: Leadership and Governance – good financial management requires clear and effective Leadership Click on links below to access guidance documents on Leadership and governance: Role of the Headteacher Role of the Governing Body Role of the Business Manager Governance and Accountability School Development Plan Whistle blowing \\ad-2003-10115\shared$\Policies\Whistle-blowing policy.doc Culture Management School Governance - Making It Better People Management – the staff who are responsible for financial management must be well trained and ably led Click on links below to access guidance documents on People Management: Staff Competencies Governing Body Competencies Governor and Staff Recruitment Policy and Strategy – resources are deployed carefully to ensure the school meets its objectives, achieves Best Value, and undertakes activities that it can afford Click on links below to access guidance documents on Policy and Strategy: Setting the Annual Budget Option Appraisal Finding the Right Solution: Guide to Option Appraisal Risk Management Insurance for Schools Achieving Value for Money Benchmarking 6 Back to Index Partnerships and Resources – the school uses its resources efficiently and effectively, and seeks to access additional resources through partnerships and other arrangements Click on links below to access guidance documents on Partnerships and Resources: Procurement Management Income Sources Staff Management and Deployment Managing Premises ICT Development Plans Managing Relationships with the LA and other Partners Processes – financial management includes effective processes for budgeting monitoring, control and reporting to ensure that financial plans are achieved, loss and waste are minimal, and that safeguards against fraudulent practice are robust. Click on links below to access guidance documents on Processes: Budget Monitoring and Reporting Internal Financial Controls Staff Competencies 7 Back to Index GUIDE TO USING THE FINANCIAL MANAGEMENT TOOLKIT The guide is a core document, linking all the components in the Toolkit. It shows what the school should be aiming for by repeating all the elements that are considered to be “essential” in the Financial Standard. In addition it recommends a range of “desirable” financial management practices that schools already meeting the Standard may wish to consider as they continue to improve their financial management performance. The guide explains how to get there by identifying the key activities and characteristics that are required to meet the Standard. The guide links the “essential” and “desirable” features of the Standard to Good Practice Summaries that in turn are linked to detailed supporting resources. The hyperlinks to the Toolkit are set out below: Click here to access the General Guide to the Toolkit Click here to access good Practice Summaries -The Financial Management Standard Click here to access good Practice Summaries -A Guide to Achieving the Standard Click here to access the guide to further best practices in financial management Effective financial management is essential for the school in order that it can: exercise proper control and stewardship over the significant amounts of public funding entrusted to it; make each penny and pound go that little bit further; allocate and deploy resources effectively to meet school priorities for development and improvement. By applying the Financial Management Standard, the school will be able to assess the soundness and effectiveness of its own financial management systems and identify what it needs to do to improve them. The Standard sets out “what” should be achieved rather than “how” it should be achieved, recognising that for many of the financial processes there will be a variety of ways in which the objectives can be met. The procedures set out in this manual explain how the school can most appropriately meet these objectives. There are also other benefits from producing such a document: it allows continuity and consistency in the absence of, or changes in, key financial personnel; it documents decisions of the Governing body; it reduces audit time on testing the systems, procedures and controls, if they are properly recorded; it satisfies the requirements of the LA that the school must clearly document the financial procedures as operated in their school; It allows an opportunity to consider whether existing systems at the school are the best way of meeting the schools financial control objectives and whether the procedures are, in fact, implemented in the way intended. 8 Back to Index FINANCIAL COMPETENCIES MATRIX A major part of the self evaluation process is for the relevant staff of the school to complete a School Staff Competencies Matrix. Click here to access a word template for School Staff Competencies Matrix The objective is for the school to identify any areas of financial management in which further developments and/or improvements can be made; in addition the process could highlight any potential areas for training or professional development. Each member of staff involved in the financial management of the school should complete the matrix individually at first, and then meet to form a consensus, identifying any areas of concern or weakness and forming strategies to address those issues. SELF ASSESSMENT AND EXTERNAL ASSESSMENT TOOLS Evidence for Self Assessment For each element of the Standard, this shows the evidence that the governors and senior managers of the school should expect to see to confirm compliance. It recognises that those undertaking the assessment will know from their own direct experience whether a number of the required components are in place. The self assessment will normally be completed by a number of governors and senior managers (separately at first, but ultimately together) so a consensus view can be arrived at. Evidence for External Assessment For each element of the Standard, this shows the evidence that an external assessor would expect to see to support compliance with the Standard. It recognises that those undertaking the assessment will not have a detailed personal knowledge of the operation of the school. As a result, the assessor will need to rely much more on “hard” evidence and this has been reflected in the document. Each person completing the Standard should fill in the applicable sections of the assessment document below on an individual basis and items that cannot be completed or are weak in completion should be identified and rectified. Click here to access the combined Self Assessment and External Assessment Tool Click here to access the Guide to Best Value in Schools ..\document\GOVERNOR\best value.doc 9 10 Back to Index 1b. Example Organisational Structure of Financial Responsibilities Governing Body Curriculum & Premises & Staffing Finance Committee Committee Headteacher Independent Review Officer Business Manager Finance Assistants 11 Back to Index 1c. LOCAL AUTHORITY SCHEME OF FINANCIAL DELEGATION ..\document\FINANCE\Scheme for Financing Schools updated July 2007.doc 12 Back to Index SECTION 2 FINANCIAL RESPONSIBILITIES This section looks in detail at the terms of reference for the Governors, committees and individuals with financial responsibilities. There is detailed information within the Financial Management Standard and Toolkit regarding the financial responsibilities of the key personnel within the school please follow the link below for further details. Financial Management Responsibility Matrix – suggests roles and responsibilities in relation to financial management for the governing body, Finance Committee, Headteacher and Business Manager/finance office Click here to access Staff Financial Management Competencies and click here to access template for Staff Competency Matrix Click here to access Governing Body Financial Management Competencies and click here to access template for Governor Competency Matrix Click here for Information for Prospective Governors Click here to access Guidance on Roles of the Governing Bodies and Headteachers Click here to access Governing Body Decision Planner (Word) ..\document\GOVERNOR\Full Governing Body\A - Decision Planner 16-05-06.doc Click here to visit the Governornet web site Click here for the Guide for School Governors on improving school performance 2006 13 Back to Index 2a. GOVERNORS’ RESPONSIBILITIES The Governing Body of the school has overall responsibility for all the financial aspects of the school. Click here to access the DCSF document „Help Schools Help Children – School Governor Recruitment Toolkit (2003)‟ Click here to access guide to the Role of the Governing Body and Its Committees Click here to access „Financial Guidance for Governors‟ Click here for the on extended school governor guidance toolkit or for further information specifically relating to sure starts programmes click here Further information for each type of school can be obtained from The DCSF Guide to the Law for School Governors at Governornet The Governing Body‟s financial responsibilities are: a. to ensure that any grant from the LA is only used for the purpose prescribed (see LA financial regulations); b. to satisfy the LA that the school‟s financial management and organisation are such as to enable it to fulfil its financial obligations; c. to provide such information as the Secretary of State may require; d. to appoint external auditors (if considered appropriate); e. to provide the LA with timely monthly and annual financial returns in the required format (Consistent Financial Reporting); Click here to access Guide to Budget Monitoring and Reporting f. to make judgements and estimates that are reasonable and prudent. g. to produce a Statement of Internal Control in accordance with the Financial Management Standard (please note that this is an internal school document only, but is still required for external assessment review). Click here to access Statement of Internal Control Guide ..\document\FINANCE\Control Assurance Statement.doc Click here to access Statement of Internal Control Template Click here to access the Governor Checklist 14 Back to Index 2b. TERMS OF REFERENCE ST BEDE’S RC HIGH SCHOOL GOVERNING BODY COMMITTEES Pupil Welfare & Achievement Committee Curriculum and Staffing Committee Premises and Finance Committee Pay Committee ..\document\GOVERNOR\Terms of Reference last reviewed December 2008.doc Click here to access the guide on Setting the Annual Budget Click here to access the guide on Internal Financial Controls Click here to access the DCSF guidance on Performance Management in Schools (via teachernet) Click here to access the guide on Managing Premises 15 Back to Index 2g. HEADTEACHER It is the resolution of the Governing Body that the Headteacher should act in the role of Chief Executive. Accordingly the Governing Body will expect the Headteacher to take responsibility for making proposals about the educational character and mission of the school, for the organisation, direction and management of the school and Leadership of the staff and for the determination of the school's academic and other activities. The Headteacher has a key role in all financial matters. The specific controls they exercise are detailed elsewhere in this manual. Together with the Business Manager and the appropriate Financial Consultants he will be aware of all financial transactions viz: a. all returns to the LA; b. authorising payroll amendments; c. authorising and countersigning certain order requisitions, passing authorised invoices for payment and signing cheques; d. income to be banked; e. responsible to the Governing Body for appointment of staff below the position of Assistant Headteacher subject to the approval of the Chairman of Governors; f. to implement the school personnel disciplinary procedures as appropriate. The values of the Headteacher‟s delegated powers are reviewed on an annual basis. Click on this link to access the guide on the Role of the Headteacher 16 Back to Index 2h. DEPUTY HEADTEACHER To authorise orders once they are raised in the absence of the Headteacher. To act as a cheque signatory on the school‟s bank account. 17 Back to Index 2i. BUSINESS MANAGER / FINANCE OFFICER a. Preparation of the annual budget of income and expenditure for the school in consultation with the Headteacher and Senior Leadership Team. Click here to access DCSF guidance on Setting the Annual Budget b. Keep and maintain all school accounts and prepare income and expenditure accounts and balance sheets. Click here to access DCSF guidance on Budget Monitoring and Reporting c. Monitor the annual budget and present regular management reports. d. Keep analyses of costs and other statistical records. e. Prepare financial statements for projects as required. f. Authorise suppliers‟ invoices for computer processing. g. Be responsible for the accuracy, completeness and validity of payroll returns and for the payment of all salaries and wages including PAYE, superannuation and non-statutory deductions. h. Maintain contact with statutory authorities and other organisations. i. Ensure all financial returns are submitted on due dates. j. To investigate and generate additional sources of income for the school. Click here to access DCSF guide to Income Sources k. To establish and review on a regular basis the school‟s Health and Safety Policy. l. Responsible for the reconciliation of School Funds. m. Responsible for the financial aspects of school trips. n. Responsible for monitoring and maintaining the income sources of the school. o. General financial and administrative tasks as directed by the Headteacher Click on this link to access the guide called „Looking for a Business Manager?‟ (via the tda website) Click on this link to access the DCSF guide to the Role of the Business Manager Click on this link to access example of Business Manager Job Description and click here to access template of Business Manager Job Description (General) and click here to access template of a Business Manager Job Description (Junior School) ..\document\Job Descriptions\Business Manager Job Description.doc Click here for information on the Business Manager Development Programme (impact and evaluation reports) 18 Back to Index 2j. EXAMPLE RESPONSIBILITIES - SCHOOL CLERKS SCHOOL CLERK 1 ..\document\Job Descriptions\Christine Fish.doc SCHOOL CLERK 2 H:\document\Job Descriptions\Gaynor Whipp.doc. SCHOOL CLERK 3 ..\document\Job Descriptions\Janet Eccles.doc SCHOOL CLERK 4 ..\document\Job Descriptions\Administrative Assistant (Attendance) Job Description.doc. SCHOOL CLERK 5 ..\document\Job Descriptions\Sport Admin Job Description.doc SCHOOL CLERK 6 ..\document\Job Descriptions\Facilties manager1.doc 19 Back to Index 2k. SITE MANAGER All planning matters will be assumed by the Headteacher and Senior Management Team but will be implemented by the Site Manager working under the full supervision of the Senior Management Team, who have delegated authority from the Premises Committee. The Headteacher will undertake with appointed consultants the preparation of out-line specifications for new premises, obtain tenders, planning permissions and liaise with the school‟s architects. 20 Back to Index SECTION 3 3a. PURCHASING ST BEDE‟S RC HIGH SCHOOL FINANCIAL PROCEDURES November 2008 BANK ACCOUNTS Lloyds TSB (Manchester) use Mill Hill Branch PROCEDURES FOR SETTING BUDGET Budget Preparation begins January/February. Bids for Capitation requested from Heads of Department. Curriculum, Staffing and Premises committee meet to discuss budget requirements for following financial year – submit details to Senior Management Team. Senior Management prepare budget and submit to Finance Committee. Finance Committee meet February/March to review budget and to recommend to submit to full Governing Body. March/April budget received from LA and compared to school model budget. LA notified of variations to spending pattern with regard to Local Bank Acount. USING BUDGET Non-employee costs paid monthly to Bank Account. Employee costs retained centrally, reconciled monthly from MIS printout. LOCAL BANK ACCOUNT PROCEDURES EXPENDITURE 1. Requistions received from department heads. 2. Orders input to computer by J Taylor, C Fish, H Noble 3. Orders authorised by D Callaghan or J Kellaway in accordance with guidelines and Finance Committees Terms of Reference. 4. Orders printed by J Taylor or C Fish. 5. Orders signed by D Callaghan or J Kellaway. 6. Orders sent to suppliers, 7. Goods received in school and checked by Heads of Department, J Taylor or C Fish. 21 8. Invoices received by J Taylor or C Fish and checked against order and delivery – Heads of Departments notified if significant change in cost. 9. Invoices input and authorised (both manually and by computer) by J Taylor and C Fish. 10. Cheques printed by J Taylor. 11. Cheques, Invoices and orders forwarded to D Callaghan, J Kellaway or J Eccles Signatories as follows 2 of 4 –J Kellaway, D Callaghan, J Eccles, (C Smith to be added). 12. Cheques, prepared for posting by J Taylor and slip is attached with invoice to order. 13. MIS printouts reconciled and period end closed down (approximately between 24th and 10th month deadline). Submitted on paper and via email. Authorised by D Callaghan. 14. Report for Governors forwarded to Finance Committee. CREDIT CARD PURCHASES With increasing use of the internet for online purchases in order to obtain best value and prompt service it has become necessary to have the use of a credit card. This is not in the school’s name but in the name of the business manager, Miss J Taylor who has liability for any expenditure. Funds must be checked before any items are ordered over the internet. They should be entered immediately as an order in MIS following the guidelines detailed above. A cheque to cover the cost of the statement should be raised when the statement is received and checked. The bursar is responsible for prompt payment of the statement in full and any charges that may be incurred. INCOME 1. J Taylor to issue invoices and forward to J Eccles. Invoices for use of Sports facilities issued by L Croak using booking pro. Payments for use of Fitness Suite recorded against bookings on Booking pro and received by staff on duty paid to G Whipp weekly with a copy of booking sheet for reconciliation. 2. Office to receive income/receipt income manually and prepare for bank. 3. G Spring to take to bank and G Whipp to input income into computer. IMPREST ACCOUNT Manual cheque raised for cash by J Taylor and signed by approved signatories. J Taylor collects cash from bank and keeps record in tin. Staff incur expenditure £50 maximum and submit receipts for reimbursement. Cash prepared and staff sign for on collection. Expenditure and reimbursements entered on computer. (www.DCSF.gov.uk/valueformoney - see resource document “School Finance Pack”) on all purchases of goods and services. Major purchases are checked by the Headteacher before the purchase is made, to ensure that the best possible value for money is achieved. Follow these links to the toolkit for further details on best value, value for money, procurement management, and purchasing. 22 Travelling expenses are paid to teachers where approved by the Headteacher. The mileage rate is approved by the Governors. Click here to access example of Best Value Statement ..\document\GOVERNOR\best value.doc Additional information on procurement can be found in the OGC procurement webpage 23 Back to Index 3b. PAYROLL & PERSONNEL The payroll is administered on behalf of the school by the Payroll Provider Capita HR Services. The Business Manager and Office Manager are responsible for notifying the Payroll Provider of any payroll amendments. All appointments, leavers and bank details are submitted on the relevant pro-forma. Changes to existing employee details are submitted by letter to the Payroll Provider. The payroll amendment forms have to be submitted to the Payroll Provider by the 4th of each month. All the staff at the school are paid monthly on the last day of each month or nearest Friday if weekend or Bank Holiday. All amendments to payroll are authorised by the Headteacher or Assistant Headteacher in their absence, who signs the input forms. Any amendment to the Headteacher‟s own salary is authorised by the Chair of Governors. All statutory changes to salary, i.e. annual pay awards etc. are automatically amended by the Payroll Provider after authorisation by the school. All major decisions relating to staff which requires amendments to payroll can be confirmed by reference to interview details, appointment letters etc. All minor amendments are authorised by the Headteacher. Any amendments to an individual‟s pay details are updated on the employee‟s own Personnel record by the Business Manager. The Personnel records are kept in the Headteacher‟s office. All voluntary deductions from salary are authorised by the individuals concerned via Personnel Services, who in turn notify the Payroll Department. Copies of all the amendment forms are kept by the school before submission to the Payroll Provider. Any discrepancies are resolved by the Business Manager by telephone and confirmed in writing. Periodically the Independent Review Officer performs random checks to ensure that the correct salary is being paid to each individual. On an annual basis the Headteacher completes and signs a salary statement for each member of the teaching staff, detailing the composition of their salary grade, i.e. points for qualifications, experience, additional responsibilities etc. The information returned to the school is reconciled on a monthly basis by the Business Manager. The Payroll Provider should produce the following information for the school: Print of payslips Payroll summary report (on-cost details) 24 Back to Index Statement of employee costs (employer and employee costs) Employee pay and costs report in ledger order When the printouts are received by the school, the Business Manager makes the following checks to ensure the accuracy of the payroll data: All amendments to payroll have been applied correctly Gross pay details match previous month's gross pay (Totals) Gross pay details match previous month's gross pay (Random checks on individuals) Payroll totals compared with budget Each month the Business Manager checks the names on the payroll to ensure that the list is accurate and up to date. The Business Manager initials the payroll print to confirm that the check has been performed. The Business Manager periodically reviews the gross pay of individual employees back to the latest strategic financial plan, to ensure that they are paid on the appropriate salary point. The School Office Support in charge of staff cover is also responsible for any supply cover required for absent teachers. Recruitment agencies invoice the school on a weekly basis for supply teachers. The School Office Support in charge of staff cover completes a weekly form showing hours worked by supply teachers. Supply teachers complete their own timesheets obtained from the agency. These are checked and agreed to the weekly supply teachers form, and signed by the School Office Support or Business Manager. A copy of the timesheet is kept with the weekly supply teachers form. The Business Manager checks these to the invoice when it is received, and attaches the timesheet to the invoice. In the event of the payroll data being destroyed, the Payroll Provider could reproduce payroll information from archived data. Payroll data is kept in a locked fireproof filing cabinet. All the year end returns are produced by the Payroll Provider on behalf of the school. i.e. Teachers' Pensions Agency return, Inland Revenue return, Local Government Pensions return, etc. The Payroll Provider sends the returns to the relevant agencies. The school has obtained dispensation from completing P11Ds from the Inland Revenue. 25 Back to Index The Business Manager posts payroll information onto the accounting system coding appropriately between individual cost centres and ledger codes. The school has telephone support with their Payroll and Personnel provider and can therefore ask for payroll information as and when needed. In addition, a hard copy of the payroll data is sent to the school each month for them to check and retain. The Headteacher has responsibility for the appointment of teaching staff. The Headteacher provides for the approval of the Governing Body a list of increments and recommended levels; these are reviewed annually by the Governing Body and all scales and increments appraised on the advice of the Headteacher. The payroll bureau are advised accordingly of any decisions to amend salaries. The Headteacher is also responsible for non teaching staff appointments. All appointments are ratified by the Governing Body and the details are submitted to the Personnel provider and notified to the Payroll provider. Details of new appointments are passed to the Business Manager for input of staff data on to the SIMS Personnel Module. The Business Manager retains a copy of all forms and letters signed by the Headteacher regarding any appointment. Personnel records are retained at on a Personnel file for each individual member of staff in the Headteacher‟s Office. 26 Back to Index 3c. BANK DETAILS Guidance on bank accounts and cash holdings is given in the financial regulations as set out by the LA. Bank accounts in the school's name may only be opened after authorisation from the Finance Committee. The setting up of a direct debit or a standing order is subject to the same regulations as the signing of cheques. The School operates the bank accounts detailed below at: Public Funds The Bank: Lloyds TSB Address: Church Street Blackburn Account Type: Current Account Sort Code: 30-90-87 Account Name: BwD St Bede‟s RC High School Account Number: 2402156 The Bank: Address: Account Type: Sort Code: Account Name: Account Number: 27 Back to Index Cheques issued on the public fund accounts require two signatures from the following authorised signatories: NAME TITLE 1. Mr D J Callaghan Headteacher 2. Mr J Kellaway Headteacher 3. Mr M C Smith Assistant Headteacher 4. Mrs J Eccles Office Manager 5. 6. 28 Back to Index Private Funds The Bank: Lloyds TSB Address: Church Street Blackburn Account Type: Current Account Sort Code: 30-90-87 Account Name: St Bede‟s RC High School – Account Number: 2503742 Fund Account The Bank: Lloyds TSB Address: Mill Hill Blackburn Account Type: Classic Account Name: St Bede‟s RC High Governor‟s Account Number: 77-76-26 Fund 10149968 29 Back to Index Cheques issued on the private fund accounts require two signatures from the following authorised signatories: NAME TITLE 1. Mr D J Callaghan Headteacher 2. Miss J Taylor Business Manager 3. Mr M C Smith Assistant Headteacher 4. Mrs J Eccles Office Manager 5. 6. As required the School maintains separate records of public and non-public monies. All grants from the LA and DCSF are paid directly into the public funds bank account. The bank should advise the school on the best way of generating more bank interest on its substantial balances through secure investments e.g. with the treasury reserve office or money market office. The school should not enter into any agreement that does not guarantee complete integrity of funds. The school receives its bank interest gross (no tax deducted) and credited monthly directly into the current account. Financial regulations prohibit schools and schools to use overdraft facilities; this applies equally to all funds. The account is therefore not allowed to be overdrawn in any circumstances. If there are insufficient funds in the school‟s account to honour the payment of a cheque drawn against that account, the Headteacher must be notified immediately. The School receives at least monthly bank statements and often more regularly. The School has an agreement with the bank for the account to be administered free of charge without any bank charges. 30 Back to Index BANK RECONCILIATIONS The Business Manager performs the bank reconciliations on all the accounts upon receipt of the bank statements. The statements are reconciled against the bank balances on the accounts package. Usually the Headteacher or Independent Review Officer checks these reconciliations randomly and initials both the statement and the printed reconciliation sheet to prove checks have been made. Statements and reconciliations are filed in statement number order and are kept in the Finance Office. Click here to go to section 7 – Cash Flow Management 31 Back to Index 3d. INSURANCE The school has a comprehensive insurance policy administered by the Local Authority. The insurance provider is approved by the Premises Committee (for the premises element of cover) and cover provided is checked to ensure that the School is adequately insured. The Employer‟s Liability Insurance Certificate is displayed in the Reception area of the school. Click here for the DCSF Insurance guide for schools Click here to access DCSF summary of good practice on Insurance for schools 32 Back to Index 3e. INCOME PUBLIC FUNDS Introduction All schools seek to find ways of generating additional income. They seek government grants, business sponsorship and encourage volunteers to raise funds. Accessing such funds can, however, be an arduous and time-consuming task. This guide, taken from a previous version of the Toolkit, aims to provide a brief guide to sources of funding available and to identify where schools can go to seek further advice in this rapidly changing area. Click here to view the school funding review 2006/07 document Examples of the main sources of income into the school Public Funds bank account are as follows: Income from LA Grants from the DCSF Bank Interest Lettings Catering Vending Machines Departmental Income Private photocopying Examination Board Teacher Release Payments Examination Fees Photograph Commission Partnerships with other schools The National Lottery Insurance claims both premises and long-term staff absence Income from the LA Income from the LA is paid directly into the school‟s current account. The bulk of this will be in the form of the Dedicated School Grant, for more information on this please follow the link below to the Teachernet website reporting and accounting section Click here for the Reporting and Accounting 2006-07 and 2007-08 document 33 Back to Index Grants from the DCSF Accessing Central Capital monies from the LA Basic Need The Government allocates money to LAs for new pupil places where the school population is rising and to support the expansion of popular and successful schools. The allocations are based on information provided by each LA. For further information about your local situation contact your LA. Devolved Formula Capital These sums can be deferred or brought forward (with Diocesan) for up to three years to allow schools to plan larger projects. This grant is distributed as a lump sum per school plus a per pupil element, as follows: 2006/07 2007/08 Lump sum for all schools £17,000 £18,500 Amount per primary pupil £61.00 £63.00 Amount per secondary pupil £91.50 £94.50 Amount per SEN pupil £183.00 £189.00 You should contact your LA to seek approval to defer or bring forward entitlements of Devolved Formula Capital. 34 Back to Index School Type (VA) Schools Details of the main capital funding streams available to VA schools were provided in the Basic Need Guidance for 2003-04 sent to VA Schools on 30 July 2003. VA schools have to find 10% of any capital building costs. The funding for projects is only released if local School Organisation Committees agree the proposals by the deadline included in the Basic Need bidding guidance. There is also an LA Co-ordinated VA Programme (LCVAP). LAs must inform the DCSF by 1st April 2003 that they have allocated at least 75% of the total 2003/04 LCVAP funding. If this figure is not reached, the DCSF plans to claw back these monies and redistribute to other LAs. Further information is available in the Blue Book guidance: Funding for Premises-related work at School Type schools in England, which can be accessed at teachernet.gov.uk OR Click here to access the DCSF Blue Book for VA Schools (2003) Grants from the DCSF are paid directly into the Salford Diocese Building Fund Account who administer all expenditure and grant claims on the school‟s behalf. 35 Back to Index Other sources of income Listed below are examples of different sources of income within a school: Bank Interest Interest is credited to the school‟s public funds current and deposit accounts on a monthly basis, and to the public funds reserve account on a quarterly basis. Lettings The Headteacher has oversight and responsibility for school lettings although the daily administration is undertaken by the Sports College Administrator. Most lettings will be subject to fixed rates although preferential rates will be charged for youth groups; in all circumstances there will be an element for heating, lighting and care taking fees. Catering The school has in-house catering The school pays for the on-duty staff meals. The catering staff are employed by the governing body/school. Procedures are in place for the collection and banking of income. Food stocks become the property of the school on payment of outstanding invoices and the catering staff will carry out a partial stock check on a termly basis and a full check towards the end of the summer term to ensure that the levels are reasonable. Vending Machines The Business Manager has responsibility for the supervision of procedures relating to the snack and drinks machines. No rental is paid but a percentage of sales is paid to the school on a quarterly basis directly into the bank account. Departmental Income A number of departments within the school generate income from the sale of materials. Money collected is passed to the Business Manager, who signs the teacher‟s record book, as a receipt. The income is recorded by the Business Manager in the accounting system and credited back to the relevant department to offset the expense incurred on the materials. Private Photocopying Photocopying is sometimes undertaken for other schools and agencies. These are invoiced through the school invoicing procedures. 36 Back to Index Examination Board Teacher Release Payments Members of staff are released to attend meetings of examiners/moderators. The school is paid by cheque the current supply teacher rate by the examination board. Examination Fees Income is received from pupils, who wish to enter or re-sit external examinations. The Examinations Secretary collects the money and issues the pupils with a receipt, and then passes the money to the Business Manager. The Business Manager signs the Examination Secretary's receipt book as a receipt. The income is credited to an examination income code and not credited against the examination expenditure code. 37 Back to Index Photograph Commission School photographs are sold by the school on behalf of a photographer. All the income goes to the photographer who then pays the school a commission based on the level of sales which is then paid in to school fund. Partnerships with Other Schools An alternative to seeking new resources is to better use existing resources in close collaboration with other schools where there is a mutual benefit. Click here to access DCSF School Governance (Collaboration) Regulations and Click here to access The School Governance Constitution and Procedure Regulations For example, one school that helped with the preparation of the tool kit managed to lower its cost base and widen the curriculum available to its sixth formers by allowing its pupils to study certain „A‟ levels at a nearby school vice versa. The net effect was that each school had a leaner Personnel budget but both sets of pupils had a wider range of „A‟ level subject choices. Other options would be to: Share a specialist teacher between several schools Share a sports facility to fully utilise it Share a technology facility to fully utilise it Further guidance on setting up these partnership arrangements is available in the brief guide to setting up and managing relationships with outside organisations developed as part of this toolkit. Click here to link to the Guide to Setting Up and Managing Relationships with Outside Organisations Click here to access Guidance on the Federation of Schools Regulations 2003 38 Back to Index The National Lottery Prospective applicants should visit the National Lottery website, www.lotterygoodcauses.org.uk to seek the latest advice of programmes available to schools. Current programmes available to schools, with brief details, are listed below. Arts Council Lottery Tel: 020 7973 6517 www.artscouncil.org.uk/funding Schools could benefit from small-scale capital funding for arts, premises and equipment. Awards for All Tel: 0845 600 2040 www.awardsforall.org.uk This is a grants programme to help fund projects, which might increase participation in events or to extend educational opportunities more widely within the local community. Funding is not provided for running costs or capital projects. The New Opportunities Many schools will be aware of this particular fund that Fund supports out-of hours‟ projects. Tel: 0845 000 0120 www.nof.org.uk Email: educationnof.org.uk Sport England Tel: 020 7273 1500 www.sportengland.org This body acts as distributor for the Lottery Sports Fund in England. 39 Back to Index PRIVATE FUNDS Click here to access the HM Revenue Guide on Gift Aid Examples of the main sources of income into the school Private Funds bank account are as follows: Bank Interest Sale of Uniform Musical events School trips/holidays Donations Fund Raising Sponsorship Fund Transfers Bank Interest Interest is credited to the School Fund bank account on a monthly basis. Sale of Uniform Sale of uniform is limited to that of specialist sportswear. During term they are on sale in the PE department. Payment is made on issue of the sportswear and a receipt is given to the pupil or parent. The Sports College Administrator collects and counts the money. The cash and/or cheques, together with a copy of the receipts issued, are passed to the School Office Support. The stock levels are monitored by the PE Staff. Musical Events Musical concerts generate income on sales of tickets. The Head of Department/Teaching Staff s pass the ticket receipts and cash/cheques to the School Office Support who counts and records the money. School Trips/Holidays Money is collected from pupils for holidays and substantial trips. Each trip/holiday has a teacher in charge that is responsible for organising the trip and collecting the money from the pupils. For each trip/holiday the school has a payments card system where all the payments received are entered on the individual pupil record. All monies from pupils are sent directly to the Business Manager, who counts the money and signs a receipt register or income log as evidence of receipt of funds. Any profit generated from a trip is retained and used to subsidise the next trip. Most of the trips do not generate a profit due to the financial appraisal of the trip completed by the teacher in charge. All income and expenditure relating to trips is entered on the accounting system by the Business Manager. 40 School fund/trips cheques are raised by the Business Manager, and signed by any two of the cheque signatories. The Business Manager then authorises the school fund/trips voucher Donations The school occasionally receives donations from various organisations namely, such as the Rotary Club and Blackburn Lions. Fund Raising Today‟s school fundraisers need a sophisticated understanding not only of fundraising techniques, but also of the regimes of financial and other accountability for non-statutory funds, including the obligations as well as the benefits of charitable status. A School‟s voluntary funds will come from several main sources. A certain amount of information is available about all of these from published sources: General – Complete Guide to Fundraising – A useful introduction for newcomers to fundraising offering a general introduction to strategic planning and income-generating techniques, published by the Directory of Social Change (DSC). General – The Schools Funding Guide, published by DSC gives an overview of good practice, strategic planning and the most likely trust, company and governmental funds. Companies – the giving policies and contact details of major corporate donors are listed in The Guide to Company Giving, published annually by the DSC and also available on CD-ROM. Charitable trusts and School Types – The DSC publishes a number of guides to grant making trusts, including a three-volume Guides to the Major Trusts the Directory of Grant Making Trusts (CAF) and local trust guides. All are available on CD-ROM. The DSC classifies trusts by geography and by charitable purposes. It contains details of the size and types of grants given, as well as details on how and when to apply. Some public libraries will also give details of local trusts. Click here to access Key Requirements under Charity Law Applicable to Schools Voluntary Funds Governmental and Lottery funding – DSC also publishes guides to grants from central government, European funding and the National Lottery. Sponsorship Schools tend to find success with sponsorship from local businesses or an existing school contractor, depending on the type of event / activity concerned. The following are examples of sponsorship projects that could receive support: Sports, including events and kit clothing Prize giving events School minibus Publicity related events / projects Computer equipment Other school events / projects that might form a natural link with a local business School open day or community event As the examples show, the benefits from sponsorship are not just additional income but access to additional assets, which can be equally valuable to the school. The key to successfully finding sponsorship is to identify organisations/individuals who will obtain a genuine benefit from being associated with the event or asset to be sponsored and then make an approach that highlights the benefits the sponsor could expect to receive. 41 PUBLIC AND PRIVATE FUNDS General Every member of staff/pupil collecting money always issues the pupil/parent a receipt for the money. Each member of staff has a receipts and payments book, showing details of how much has been collected, payments issued, etc for each activity they are organising. The money collected is passed to the Business Manager. The book is then signed as evidence of receipt of cash, record the receipt in the relevant accounting records, and place the cash/cheques in the fireproof safe. All payments issued are also recorded in the teacher's book. Banking is carried out several times per week, usually by the Site Manager, although it is a finance assistant who completes the deposit slip which is then reconciled against the receipts book. Accountability An essential part of any arrangement to generate additional income or sponsorship etc is that: Proper control is exercised over the income or assets The principles of value for money or best value are applied to the use of the income and the use or acquisition of assets In the spirit of openness and accountability, information is provided to sponsors, partners and others involved in income generation to give assurance that funds and assets have been used in a proper manner Debtor Write Offs Very few debtor invoices are raised by the school. Debtor invoices may be raised by the school, mainly for lettings, but can also be for equipment purchased whereby reimbursement will come from PTA, for example. Where a write off may occur; approval may be sought from the Headteacher for values under £100, and the Governing Body for values greater than this. 42 Back to Index 3f. PETTY CASH The balance of petty cash is currently £1500 The Business Manager is responsible for administering the petty cash system. The cash is kept in a cash box with the Office Manager during the day and locked in the School safe overnight. All claims are only reimbursed on production of a valid receipt attached to an authorised petty cash voucher. The limit for an individual claim is £50, unless prior authorisation is sanctioned by the Headteacher. Petty cash can only be claimed if authorised by the relevant budget holder. The Office Manager enters the details of the claim onto a petty cash along with the claimant‟s name and the analysis of the expenditure. The claimant signs the petty cash slip as receipt for the money. The Business Manager enters the details of each transaction into the accounts system and signs the petty cash book as authorisation. As and when required the Business Manager raises a cheque to reimburse the float up to the original balance of £1000. The petty cash book and cheque are passed to the cheque signatories, as proof of the amount to be reimbursed. The balance in the cash float is regularly checked to the petty cash balance on the accounts package by the Business Manager. 43 Back to Index 3g Staff Expenses Staff expense claims are submitted on a travel and subsistence claim form; these are then processed by the Business Manager/Office Manager and forwarded to the LA for payment through payroll. Expense claims are paid at the same rate as the LA rates. 44 Back to Index 3h Audit Arrangements Audit Timetable Audit Type Audit Dates Previous audit(s) Next audit(s) Local Authority Internal Audit Autumn 2004 Autumn 2009 External Audit (if applicable) Financial Management Standard External Assessment Spring 2006 Autumn 2009 ..\document\FINANCE\audit 04.doc ..\document\FINANCE\StBedes FMSIS external assessment.xls 45 Back to Index SECTION 4 ASSETS Acquisition of Assets Acquisitions of assets are subject to the same authorisation procedures as other purchases (see section 3a). Disposal of Assets All disposals of material assets, by sale or write off, require authorisation by the Headteacher and/or Governing Body. The date of disposal, area removed to and quantity disposed is recorded in the assets register by the School Office Support, and the Headteacher signs against the date. Recording of Assets In accordance with the agreed limits set by the governing body, all purchases of non-consumable assets or groups of assets over £500 (other than computer equipment) are recorded on inventory lists maintained electronically by the Business Manager. In addition, all electrical equipment is recorded (as these items need periodic PAT testing). The school inventory details the item reference number, description, model, serial number, date of purchase; purchase price, location and disposal details. An initialled and dated hard copy is held by the Business Manager. Asset Checks The Business Manager carries out spot checks of the whole school inventory against actual physical assets and investigates any discrepancies found. A complete inventory check is also made annually against both the electronic and hard copy inventories, and updated if necessary. Security Marking The Business Manager notifies the School Office Support of the purchase of any new assets. The School Office Support ensures that equipment is marked with the School Postcode. Insurance Consideration should be given to the adequacy of the insurance cover when purchasing assets of significant value. (See Section 3d - Insurance) Click here for the Asset Management Plans Framework 46 Back to Index SECTION 5 DOCUMENTATION AND SECURITY OF RECORDS This section lists the main accounting records maintained by the school and how they are kept secure, and shows how and where documents are filed. Data stored on the school network is highly confidential bother in respect of pupil records which are maintained using the SIMS administration system and the school‟s finances. No individual should have free access to all levels of the school‟s financial data enabling them to complete all elements of a financial transaction. The school has appointed a Network Manager, although the Network Manager only has managerial access, this technically allows access to all aspects of the programme since passwords can be overwritten. The Systems Manager does not have access to the cheque books and is not a cheque signatory; he could not therefore complete a full transaction. 1. ACCOUNTING RECORDS The school maintains computerised accounting records. The accounts package is password protected so that only the Headteacher, Business Manager and the Systems Manager have access. The School financial management system may use the following options: Orders & Commitments Accounts Payable (Purchase Ledger) General Ledger Budget Planning/Creation – Budget Maintenance Petty Cash Book Accounts Receivable (Sales Ledger) The following computer/manual records are also maintained: Cash Receipts Book - School Fund A/C Payments Book - School Fund A/C All manual records are kept in the Business Manager‟s room. All rooms containing computers (see section 9) are alarmed and locked overnight. Back Up and Office Security Back up for all financial records and pupils records, which are maintained on the system, takes place on a daily basis by an IT Technician. Manual records of the school‟s accounts are also retained in the school in a secure cabinet. 47 Back to Index The Business Manager is responsible for opening all school mail addressed to the Headteacher, all other post is opened by the Secretary, unless marked personal. All cash, cheques or credit advices received by post are passed immediately to the Business Manager. All cheque books, cheque stationery, replacements and official school order forms are stored in a locked cabinet by the Business Manager with access allowed only to the Business Manager. The keys are held only by the Headteacher. At the end of each financial year the Business Manager is responsible for the settlement of all outstanding accounts and the timely closure of the financial years‟ accounting system, in readiness for the Headteacher to prepare the annual accounts statements as set out below: a) income and expenditure accounts for the year b) a balance sheet as at 31 March c) notes to the accounts School records of account must be kept available for LA Officials or appointees of the National Audit Office. 48 Back to Index DOCUMENT FILING Internal requisition forms Copy Orders (1) Delivery Notes Purchase and Non order Invoices Supplier Statements Payroll Records Bank Statements Bank Reconciliations Expense claim forms Payroll amendment forms Petty cash receipts Sales Invoices Cheque Run Reports Disposal of Documents All documents of a sensitive or confidential nature should be retained for the agreed number of years a minimum of 6, after which they are securely destroyed. 49 Back to Index SECTION 6 BUDGETING PROCEDURES (OVERVIEW) STEP 1: COLLATION OF STEP 8: INFORMATION STEP 2: REVISED HEADTEACHER BUDGETS & BUSINESS APPROVED BY MANAGER FINANCE PREPARE COMMITTEE BUDGET STEP 7: STEP 3 BUDGET SCHOOL PREPARATION REGULARLY BUDGET OF DRAFT REVIEWED BY BUDGET HEAD & BUSINESS MANAGER STEP 6: STEP 4 BUDGET DRAFT BUDGET PRESENTED TO STEP 5 PRESENTED TO FULL FINANCE GOVERNING FINANCE COMMITTEE FOR BODY COMMITTEE DISCUSSION APPROVE BUDGET 50 Back to Index BUDGETING The process for formulating the School's draft budget commences around December/January each year, for the following financial year. The school prepares the budget well in advance of notification from the LA of the indicative delegated budget share. Further information can be found on Reporting and Accounting 2006-07 and 2008-08 and www.audit- commission.gov.uk/reports - “Getting the Best from Your Budget”. The draft budget is prepared by the Business Manager and the Headteacher. The school produces a multiple year estimated budget which the Business Manager uses to enter the next financial year‟s budget figures into the accounts package. This involves taking into account future trends in the school and community ie falling rolls and new activities being made available (extended school activities) Click here to view the guide on multi – year budgets Click here for Guidance on dealing with falling rolls Click her for information regarding per pupil funding There are a number of sources of financial information available to the Business Manager when preparing the draft budget, namely the School Development Plan and the previous year's actual expenditure. (Click here to access example of School Development / Improvement Plan). The school development plan should drive the budgeting process and a clear link between the two plans should be demonstrated over a minimum of three years. For information on the linking of the School Development Plan and Budget click here and for further guidance on multi-year budgets see the resource document: Setting the annual and multi-year budgets Click here for a guide on budget monitoring Click to view a Budget monitoring summary - pro forma Click for guidance on 3 year forecasting Click to view a 3 year forecasting tool The Business Manager produces the draft budget after examining the financial information available to them (see above) and the financial implications of any additional information available, i.e. curriculum plan and management needs. Whilst assisting in the preparation of the budget the Headteacher considers not just the short term financial plans but also considers the medium and longer term implications. The Headteacher allocates departmental budgets on the basis of a formula, which takes into account the number of pupils taught per period, weighted for certain ages. Each individual subject is also weighted depending on the degree of practical work involved in the subject, due to the additional cost of materials. The Business Manager produces the budget after firstly identifying the Personnel costs, secondly identifying all other costs i.e. fuel, transport, exam fees, etc, thirdly identifying all the capitation/curriculum costs (calculated on a formula basis by the Headteacher). All these allocations are influenced by the School Development. The Business Manager also scrutinises the Section 52 Statement (proposed Education spending plans published by the LA) to ensure that the funding relating to the school is accurate. The Business Manager presents the draft budget to the Finance Committee for approval. The Finance Committee has been delegated the responsibility for approving the annual budget by the 51 Back to Index full board of Governors. The Business Manager also reports verbally on the proposed budget, at the Finance Committee meeting. When the Finance Committee is completely satisfied with the figures presented at the meeting, it agrees the budget before the figures are presented to the full board of governors for final approval. The approved budget is presented to the Full Board of Governors at their next meeting, with any additional information reported verbally by the Chairman of the Finance Committee. The Governors once again have an opportunity to ask relevant questions on the figures presented to them before they finally approve it. (Full Board of Governors meetings are usually arranged shortly after the Finance Committee approve the budget). When the Governors are satisfied with the budget presented to them, the Business Manager submits the required forms to the LA. When the budget has been fixed for the financial year, the Headteacher has the authority to spend within the agreed budget. When the Headteacher wants to spend from the reserves fund he is required to obtain the approval of the Finance Committee. Departmental Heads are given their capitation allowance for the financial year; they have total discretion on when they can spend their allocation. The Administrator allocates the budget to them on a departmental basis rather than allocating to the various budget headings i.e. books, equipment, stationery and materials etc. The Administration Officer produces a report as and when requested, for Departmental Heads to allow them to monitor actual expenditure and commitments to-date (see section 8). All Departmental Heads are required to ensure that all purchases from their budget achieve the best possible value for money. Revising the budget is often necessary due to the funding arrangements. When the budget has to be revised, the Headteacher and Business Manager revise the budget forecasts after approval has been granted by the Finance Committee and Full Board of Governors. All virement from one budget heading to another has to be approved by the Finance Committee. Budgets are continually monitored against outturn by the Business Manager on a monthly basis, and also reported to the LA on a quarterly basis (Income and Expenditure Statement). The Headteacher is fully briefed by the Business Manager prior to all Finance Committee meetings. The Business Manager produces a termly variance report for the Finance Committee produced on the accounting system. (See section 8). Under the terms and conditions of the financial regulations, the Governors are not allowed to present a cumulative deficit budget, unless agreed with the LA. Click here to access the school funding review Click here for guidance on funding repairs and new builds Click here for investigating the effective use of resources in secondary schools For information on capital investment see here 52 53 Back to Index SECTION 7 CASH FLOW MANAGEMENT 1. The aim of the Budgeted Cash Flow section of this pro forma is to summarise the school‟s profiled budget to demonstrate that the expenditure profile can be afforded from the school‟s expected income. Click here to access guide to suggested Cash Flow Statement Pro Forma Click here to access template of Cash Flow Pro Forma 2. The headings included are illustrative only and can be changed to match the main headings in your own budget (e.g. you may not have a specific capital project or sufficient SEN activity to warrant a separate line but may want to distinguish between academic and administrative supplies and services). 3. The Actual Cash Flow section should be completed each month after the bank reconciliation as part of the month end close down procedures. The balance carried forward should be able to be reconciled to the amount in the bank account. 4. As a matter of discipline, the form should be initialled by the person who completes it each month and should be promptly reviewed by someone more senior who also initials the form. 5. The line for committed expenditure (where the school has received the goods or services, or the invoice for them, but not actually made payment at the end of the month) is included for comparison with the month end cash balance and the forecast position for the next month. Items which are already committed are likely to require payment fairly soon and will thus have an impact on cash flow. 54 Back to Index SECTION 8 REPORTING TIMETABLE AND FORMAT OF REPORTS Each LA will specify their reporting timetable and the required format for each report. TIMETABLE FOR SUBMISSION OF RETURNS & DATES OF PAYMENTS 2009/10 PERIOD LAST DATE FOR PAYMENT VAT PAPER WORK TO PAYMENT DATE SUBMISSION OF REPORTS MONTH REIMBURSEMENT CAPITA PAYMENTS TO SCHOOL FROM PREVIOUS WILL BE PAID BY NO LATER THAN MONTH FOR 10am BANK ACCOUNT ( By School ) 1 Thurs 23rd Apr 09 April Tue 12th May 09 Fri 17th Apr 09 March 09 and April 2 Thurs 7th May 09 May 09 Tue 12th May 09 Fri 15th May 09 3 Mon 8th Jun 09 June May Thurs 11th June 09 Tue 16th Jun 09 4 Thurs 9th Jul 09 July June Tues14th July 09 Fri 17th Jul 09 5 Thurs 6th Aug 09 August July Tues 11th Aug 09 Fri 14th Aug 09 6 Mon 7th Sept 09 September August Thurs 10th Sept 09 Tue 15th Sept 09 7 Thurs 8th Oct 09 October September Tues 13th Oct 09 Fri 16th Oct 09 8 Mon 9th Nov 09 November October Thurs 12th Nov 09 Tue 17th Nov 09 9 Mon 7th Dec 09 December November Thurs 10th Dec 09 Tue 15th Dec 09 10 Thurs 7th Jan 10 January December Tues 12th Jan 10 Fri 15th Jan 10 11 Mon 8th Feb 10 February January Thurs 11th Feb 10 Tue 16th Feb 10 12 Mon 8th March 10 March February Thurs 11th Mar 10 Tue 16th Mar 10 55 INITIAL CASH FLOW STATEMENT 2009/2010 SCHOOL NAME : 115 ST.BEDES RC HIGH £ FUNDING ALLOCATED TO DATE FINAL SCHOOL BUDGET SHARE (A) 4,311,547 SCHOOL STANDARDS GRANT (B) 141,921 SCHOOL STANDARDS GRANT - Personalisation (C) 64,469 SCHOOL DEVELOPMENT GRANT (D) 380,072 EMAG (E) 0 TOTAL ALLOCATIONS (F) 4,898,009 ESTIMATED CASH REQUIREMENTS £ Primary, Secondary & Special 15 % of ( A + D ) (G) 703,743 100% of ( B ) 141,921 TOTAL ESTIMATED CASH REQUIREMENT 2009/2010 845,664 £ PROPOSED MONTHLY PAYMENTS APRIL = 12.5 % of ( G ) 87,968 MAY = 8.25 % of ( G ) plus ( B ) 199,980 JUNE = 8.25 % of ( G ) 58,059 JULY = 8.25 % of ( G ) 58,059 AUGUST = 8.25 % of ( G ) 58,059 SEPTEMBER = 8.25 % of ( G ) 58,059 OCTOBER = 8.25 % of ( G ) 58,059 NOVEMBER = 8.25 % of ( G ) 58,059 DECEMBER = 8.25 % of ( G ) 58,059 JANUARY = 8.25 % of ( G ) 58,059 FEBRUARY = 8.25 % of ( G ) 58,059 MARCH = 5.00 % of ( G ) 35,187 TOTAL ESTIMATED CASH REQUIREMENT 2009/2010 845,664 Prepared by Children's Services Finance Team April 2009 56 Back to Index A GUIDE TO PREPARING BUDGET MONITORING REPORTS (DCSF FINANCIAL MANAGEMENT TOOLKIT FOR SCHOOLS) Introduction In part good financial management in schools is about keeping track of where the money is coming from and where it has gone. Effective budget monitoring reports during the year provide meaningful information about spending patterns and make forecasts of likely under or overspending at the year-end. The guidance contained here follows on from the guidance in the previous section (Budgeting). This section contains examples of reports prepared by the school using information held on the school‟s accounting system. Why Monitor the Budget? It is essential to closely monitor the budget because: a. The school may realise extra funding during the year leading to a larger surplus than expected, in which case the school may wish to meet some requests for additional funding that had previously been put on hold; b. Unexpected expenditure may occur, e.g. building works in the summer may overrun budget, or additional members of staff may be required; c. There may be a shortfall in expected income, such as lettings or bank interest. d. The number of pupils arriving in September may be more or less than estimations from the January PLASC return. This will this result in claw back by the LA or additional funds from both LA Resources and LSC funds; e. Initial assumptions in preparing the Annual Budget could be wrong. 57 Back to Index Budget Monitoring Reports The school uses a computer software accounting package for recording all financial transactions and then monitoring expenditure against predictions. a. A Financial Summary Report – Income and expenditure is summarised across appropriate headings to allow Senior Officers and Finance Committee Members to scrutinise all budget headings recorded on the school accounting system. The presentation of this report is to aid a manageable financial overview for governors and the Headteacher, as set out in the Audit Commission/OfSTED paper „Keeping Your Balance‟ (revised in 2002) www.audit-commission.gov.uk/reports b. A Cost Centre Transaction Report – Details of all transactions are given against a particular cost centre heading. This report enables budget holders to control spending against their budget. The frequency of issuing monitoring reports to the Headteacher and Finance Committee Members is detailed below. The frequency of reporting described meets the minimum required reporting frequencies of once a month and once a term to the Finance Committee. Once set up, the accounting system monitoring reports can be produced quickly at any point during the year. This level of systemisation is essential to ensure financial support staff resources are used cost effectively. Click here to access guide to Budget Monitoring and Reporting A Detailed Look at the Monitoring Reports Click here to access Financial Summary Report Click here to access a Financial Summary template This report is divided into columns, which are: a. Original Budget – Is the same as the set and approved Annual Budget, for clarity, it is assumed no changes have been made. b. Current Budget – Approved revisions and virements are included in this column. c. Actual to date – Amounts invoiced. d. Budget Remaining – This column shows the current budget allocation less the commitments and actual spent figures e. End of Year Projection – This shows the difference between the original planned expenditure and the revised forecast in the light of current information known. This particular column is manually entered by school staff. It is essential that the year-end forecast is arrived at in consultation with the staff responsible for managing each budget, as they will have the best knowledge about future demands on or plans for their budget. It is also good practice as a part of this process to compare the percentage spent to a profile of what was expected to be spent at that point in the year. 58 Back to Index The information set out in the monitoring report allows the governors to see at a glance if the books are balancing. Regular checks should ensure there are no unwelcome surprises and that they have a good idea of how much money is available to spend on school priorities. Cost Centre Transaction Report This report shows the total budget allocated for the cost centre the commitments for the cost centre the actual spent to date for the cost centre the balance remaining the percentage of budget spent a complete transaction listing for the cost centre 59 Back to Index Using the Reports The reasons for the variations from budget are not clear from the budget monitoring reports so it is good practice to cover the numerical summaries with a brief narrative report explaining the reasons for variations. A part of this process will be to compare expected income and expenditure with the profile discussed above and to investigate variations. How to Create Budget Monitoring Reports The Financial Summary Report is set up as a User Defined Report on the accounting system. The Cost Centre Transaction Reports can be printed directly from the accounting system. Essential Characteristics of Good Financial Management Regular monitoring of income and expenditure against the agreed budget is central to effective financial management. It allows governors, the Business Manager and staff to maintain financial control by reviewing the current position and taking any remedial action necessary. But budgets are not set in stone. The original budget may need regular updating, following consultation with governors, to take account of in-year developments. In practical terms, budget monitoring involves producing monthly monitoring reports and drafting proposed plans of action to tackle any significant variances. This process is carried out at all levels to include any devolved budget elements. Expenditure on individual initiatives is also tracked to enable monitoring of the School Development Plan. Budget monitoring becomes an important guide when setting the budget for the following year. REPORTS PRODUCED BY THE SCHOOL LA REPORTS Formal Budget Plan: produced annually and is presented to the LA at commencement of the financial year Formal Monthly Return: generally produced at each month end and submitted no later than the end of the first week of the following month following the period end. Annual Accounts: submitted as soon as possible after the year end. Annual Audited Private Fund Accounts: not required for VA Schools. 60 Back to Index FINANCE COMMITTEE REPORTS All members of the Finance Committee receive a copy of the Financial Summary Report on a termly basis and a copy of the Estimated Outturn Report. The above report produced by the Business Manager on the accounts system, shows details of the original budget, current budget, difference between original and current budget, budget to date, actual to date, commitments, actual plus commitments, variance and the budget remaining. FULL GOVERNING BODY REPORTS All Governors receive a copy of the Financial Summary Report. The reports (last year attached overleaf) are produced by the Business Manager on the accounts system. The Business Manager also reports verbally on the financial position of the School to the Governors at each meeting. For more detailed information on how to prepare the financial summaries and the principles that need to be included in these statements see Guide to the Financial Summaries to be included in the Annual Governors Report and Financial Summary template 61 Back to Index HEADTEACHER REPORTS The Headteacher receives a copy of the Financial Summary Report given to the Finance Committee. The Headteacher also receives a budget monitoring report on a monthly basis. In addition to the reports produced for the Headteacher, he meets with the Business Manager as and when required to discuss any financial issues. BUDGET HOLDERS REPORTS All the budget holders receive a Cost Centre Transaction Listing, as and when required, showing budget allocation, expenditure to date, commitments, balance remaining and percentage spent. The report also lists all transactions relating to a particular department, i.e. outstanding orders, purchase invoices, petty cash reimbursements, income, etc. 62 Back to Index SECTION 9 GOVERNING BODY: POLICY DECISIONS & BUSINESS INTERESTS a) KEY FINANCIAL DECISIONS OF THE GOVERNING BODY AND COMMITTEES b) LIST OF GOVERNORS c) DECLARATION OF GOVERNORS BUSINESS INTERESTS d) TENDERING POLICY e) LETTINGS POLICY f) NON-COMPLIANCE POLICY g) LEASING POLICY h) INVESTMENT POLICY i) GOVERNING BODY FINANCIAL COMPETENCIES MATRIX j) FRAUD DETECTION AND RESPONSE 63 Back to Index 9a. KEY FINANCIAL DECISIONS OF THE GOVERNING BODY AND COMMITTEES Minutes of the full Board of Governors and the various committee meetings are kept in the Business Manager‟s Office. These minutes make reference to decisions made by the Governors, and include those that have financial implications. ..\document\GOVERNOR\Full Governing Body ..\document\GOVERNOR\Finance & Premises Committee Minutes ..\document\GOVERNOR\Curriculum & Staffing Committee ..\document\GOVERNOR\Admissions Committee Minutes ..\document\GOVERNOR\Premises Committee Minutes ..\document\GOVERNOR\Pay Committee ..\document\GOVERNOR\Pupil Welfare and Achievement Committee ..\document\GOVERNOR\Staffing Committee Minutes Ratified minutes of the full Board of Governors and the various committee meetings which are public are available for viewing by non-governors. Any confidential matters that have been discussed are not included in the public copies. These minutes are kept in the Headteacher‟s Office. The minutes make reference to decisions made by the Governors, and include those that have financial implications. Click here for a guide on taking minutes at meetings 64 Back to Index 9b. LIST OF GOVERNORS Included in this section is a complete list of Governors. Mr C T Beresford CHAIR OF GOVERNORS Mr C Porter VICE CHAIR OF GOVERNORS Rev Fr K Griffin FOUNDATION GOVERNORS Rev Fr M Lavin Rev Fr A Dutton Mr K Fox Mrs E Arnold Mr P Crewe Mrs J Mottram Mrs M Hargreaves 1 vacancy Mrs N Ray PARENT GOVERNORS Dr M Horne Mr D Yates Mrs S Blackwell Mrs A Ormisher TEACHER GOVERNORS Mrs D Mason STAFF GOVERNOR 2 vacancies LA GOVERNORS Mr D J Callaghan HEADTEACHER Miss J Taylor CLERK TO GOVERNORS 65 Back to Index Governors Responsibilities / Committee Membership ..\document\GOVERNOR\Governors Committees Sept 2008.doc 66 Back to Index 9c. DECLARATION OF GOVERNORS INTERESTS In order that Governors should not be precluded from acting as school suppliers to avoid any potential conflict of interest between the school and their respective businesses, they are to provide details of their business interests to the Clerk of the Governing Body. The Clerk will ensure that each Governor has entered his or her respective interest by supplying a brief description in a manual register signing and dating the entry. The Clerk will counter sign. The register will be retained in the Finance Office for inspection by any interested parties. The Clerk will produce the register at all full governing body meetings to ensure that its accuracy is maintained. It is recommended that teaching staff and administrative staff also be encouraged to declare business interest where there is a potential conflict or where their knowledge of the school‟s functions may place them in a position of vulnerability. 67 Back to Index 9d. TENDERING POLICY The school has adopted a tendering policy for items or work of a significant value, which carefully analyses and compares all possible options to ensure that best possible value for money is obtained. This policy assumes the use, in appropriate cases, of outside consultants to draw up the specification, receive tenders, and make recommendations to the school. Goods purchased up to the value of £3,000 are at the discretion of the budget holder who should ensure best value is achieved. Goods and services with a value of between £3,000 and £35,000 are subject to a minimum of three competitive quotations in writing. Goods and services with a value of £35,000 and over (or at the discretion of the Governors) are subject to the full tendering procedure. Recurring contracts should be reviewed to ensure Best Value is achieved. FULL TENDERING PROCEDURE Invitation to Tender Specification identifying the work to be performed will be drawn up by the Headteacher and Business Manager in conjunction with the Governors and any other appropriate bodies; or in conjunction with the delegated person eg. IT Manager. Specification The specification should include: Technical details Health and Safety considerations Insurance requirements Contract The School will also draw up the contract terms and conditions against which the tenders are to be prepared. The consultants will be required to provide reasons for the particular contract proposed. 68 Back to Index Form of Tender The form of tender should include: The total contract price A breakdown of the price to specific elements of the works Time Scale A time scale for the completion of the works will also be required. Selection of Companies invited to Tender The appropriate Committee will draw up a list of the organisations invited to tender. The list will be reviewed and agreed by the Headteacher, who will check Governors' interests in any of the organisations. The Chairman of the appropriate Committee will send out invitations to tender. Receipt of Tenders Tender documents will be sent to the Chairman of the appropriate Committee. All tender documents should be opened on the same day by more than one person, including the Chair of the appropriate Committee. The name of the tenderer and the contract price should be recorded. Tender Evaluation The tenders will be evaluated on the following criteria: Compliance with technical and contractual requirements Price / Value for Money Appropriate qualifications of the organisation Knowledge of quality of work and reliability Previous experience of similar work Previous experience of working with the School Time scale involved The relevant Committee will decide or recommend (as appropriate) to the Governing Body the tender to be accepted. Where it is recommended that the lowest tender is not accepted, the rationale behind the decision should be documented. All the companies who have submitted a tender document will be informed of the result of the tender. No work may commence until formal letters of approval are issued. Click here for Guidance on funding repairs and new builds 69 Back to Index Emergency Decisions If an urgent decision is necessary and it is not practicable to call a meeting of the appropriate Committee, then a decision may be taken by either the Chairman of Governors or Chairman of the relevant Committee which will be reported to the next meeting of that Committee. Emergencies include urgent matters of Health and Safety, and matters which affect the normal operation of the School. 70 Back to Index 9e. LETTINGS POLICY Control over the use of accommodation and facilities at the school rests with the Governing Body. The Governing Body have delegated the responsibility for the letting of the school building to the Business Manager and Site Manager. The Business Manager is responsible for approving or declining applications, subject to any directions given by the Governing Body and will issue a regular report on the use of premises outside normal school hours. Self-governing schools are prohibited from levying charges below the economic cost of the letting. These charges are based on average costs of heating, lighting, cleaning, wear and tear and Site Manager‟s services. Notwithstanding the above it is recommended that charges for lettings should mirror those levied by the LA. The Governing Body reserves the right to amend their lettings charges at any time they should see fit. The decision of the Governing Body shall be deemed final in this matter. Although the school is not allowed to subsidise lettings, registered organisations which are recognised as educational/cultural and which undertake a regular programme of approved activities may be eligible for preferential rates at the discretion of the Headteacher. School functions and events organised by the Governing Body or Parent Teacher Association are exempt from all charges as they fall outside the scope of letting arrangements. Lettings will be accepted only upon condition that making the premises available to outside organisations would be suitable and does not affect the day to day use of the school facilities by its staff and pupils. In accordance with the Local Government Miscellaneous Provisions Act 1982 a licence is required for events involving Public Entertainment. However, if the activity is limited to teachers, pupils of the school, than a licence is not deemed to be required. Tickets may be sold, in advance through the school only and there should be no advertising, other than inside the school premises, nor should tickets be available at any Entertainment or Theatre Agency, nor should tickets be sold at the door at the time of the event. The restriction on advertising detailed above does not prevent letters or handbills being forwarded to parents and guests via the pupils. Donations are usually asked for at such events. Booking Procedures Application for the hire of the premises should be made to the Sports College Administrator/Business Manager on the relevant form, giving as much notice as possible. Subject to approval a provisional acceptance form will be offered along with the Governors‟ Conditions of Use and Indemnity Form. Use of the facilities will only be allowed if acceptance is confirmed in writing and conditions of use and indemnity forms are returned along with payment in advance from occasional users. Priority will be given to regular hirers with ten or more bookings each term. Hire of all facilities will be paid for within 30 days of issue of invoice by the hirer or for use of the fitness facilities at time of use. Organisations will be required to pay for each occasion booked, unless the booking is cancelled by the school. 71 Back to Index Non-Payment The Business Manager regularly reviews the outstanding invoices file to ensure that the school has no long-term debtors. Reminders are sent out for all outstanding amounts 14 days after the date of the invoice. The Secretary informs the Headteacher of the current position regarding lettings on a regular basis. The Business Manager has the authority to cancel the booking of any organisation that has outstanding invoices owning to the school. Health and Safety / Fire Safety Regulations In accordance with the school‟s Health and Safety Policy and School Fire Safety Regulations the Site Manager will explain the above procedures to the representative in operational control of the organisation. This advice will specifically relate to: o Emergency evacuation procedures o Fire alarm points and fire fighting equipment o Assembly points and roll call of personnel o Location of telephone and how to summon the Fire Brigade and emergency services A written copy of the fire evacuation procedures will be issued to hirers. The school will retain income derived form lettings, and costs to the school of lettings will be met from this income. All persons hiring the school premises will be expected to conform to the relevant Health and Safety regulations. The school‟s Lettings policy is reviewed on an annual basis. 72 Back to Index 9f. NON-COMPLIANCE POLICY In the unlikely event of a serious breach of agreed policy by any member of the School, the Governors would take the appropriate action necessary. Depending on materiality the Governors would also immediately notify the LA and request that the internal audit section investigate. 73 Back to Index 9g. LEASING POLICY Operating lease agreements can only be entered into on behalf of the School after full consultation, consideration and approval of the Finance Committee who have the responsibility delegated to them by the full Board of Governors. There are basically two types of leasing, a finance lease and an operating lease. The finance lease is the same as borrowing and cannot be entered into by the school; an operating lease is similar to a rental agreement and could be entered into by the school, although the school should still check the legal position of any lease that it is considering. The school needs to be aware of the type of any form of lease that it may be considering entering into before signing an agreement (if in doubt the Business Manager should seek professional advice). Borrowing Schools may not borrow money from any source, charge any asset or security, nor enter into a deferred purchase agreement unless previously cleared by LA internal audit and in the interests of best value. 74 Back to Index 9h. INVESTMENT POLICY It is the responsibility of the School Management to generate as much bank interest as possible from any cash balances that the school may have. Investments though must guarantee complete integrity of funds and be consistent with the ethos, and aims and objectives of the School. 75 Back to Index 9i. GOVERNING BODY FINANCIAL COMPETENCIES MATRIX A major part of the self evaluation process is for the members of the governing body responsible for financial aspects of the school to complete a Financial Competencies Matrix. Click here to access guide to Governing Body Financial Management Competencies The objective is for the school to identify which members of the governing body have responsibility for areas of financial management, to identify the skill/knowledge base of those staff to ensure that collectively they have skills in all the required elements of the financial standard. This process could also highlight any potential areas for training or professional development required for governors, and should ensure that the financial responsibility of the governing body is shared between a number of governors and does not place heavy reliance on one or two particular governors. Each governor with financial responsibility of the school should complete the matrix individually at first, and then meet to form a consensus, identifying any areas of concern or weakness and forming strategies to address those issues. 76 Back to Index 9j. FRAUD DETECTION AND RESPONSE Fraud within Schools is generally a rare occurrence, however a number of recent high profile cases have raised the awareness of fraud detection and response. The governing body has a duty to ensure that adequate financial controls and procedures are in place within the school (See section 3), so as to reduce the ability of any individual or group of individuals to be able to commit fraud. The controls and procedures adopted in Section 3 should be able to detect malpractice at an early stage, and be able to identify any system weaknesses. There are a number of warning signs which should alert responsible officers to the possible symptoms or incompetent financial management which are shown in the hyperlinked document below. Click here to access the Fraud Detection and Response Guide. Click here to access guidance on Whistle blowing S:\Policies\Whistle-blowing policy.doc If a fraud is detected there are a few basic rules which need to be followed: Report the matter to the Headteacher and Chair of the Governing Body Report the matter to the LA and the schools auditors Records proving the fraud should be secured Any losses should be identified A decision should be taken as to whether to involve the police Further information is available in the Fraud detection and Response guide above. 77 Back to Index SECTION 10 RISK ANALYSIS AND RISK REGISTER Compiling and Using a “PESTLE” Analysis A PESTLE analysis is a tool that acts as a prompt to the staff and governors in the analysis of the developments in the school‟s environment that could affect its risk profile. It may help to carry out a more comprehensive analysis. The initials stand for: Political e.g. a new government initiative creates the risk that the school may fail to deliver the policy or divert away from local priorities. Economical e.g. central or local government funding decisions may affect school finances, closure of local industry may affect fund raising plans etc. Social e.g. demographic changes may affect likely pupil rolls or the nature of pupils needs e.g. pupils with English as a second language etc. Technological e.g. new computer viruses may affect school operations, disturbing images on the internet may affect ICT security measures etc. Legislative e.g. new legislation may create risks of non-compliance with the law, create new administrative burdens etc. Environmental e.g. a new road layout near the school may create new dangers for pupils etc. Before the Meeting: Ask people to think about the external factors that may affect the School‟s risk profile so they are prepared for the joint meeting Ensure staff and governors with the best knowledge of external developments attend the meeting to discuss the School‟s risk profile During the Meeting: Use a brainstorming technique whereby for a limited time (say three minutes) people offer developments under each “PESTLE” heading Make the results of the brainstorm visible e.g. write on a flip chart, use post it notes on a wall so people can build on the ideas of others. Limiting the time helps to keep energy levels high Use the pro forma attached to record the factors from the brainstorm that you want to discuss further (1st Column on the pro forma) Be sure to focus on why each development affects the School‟s risk exposure (2nd Column on the pro forma) Be sure to discuss and agree what new responses to new or developing risks are necessary (3rd Column of the pro forma) Ensure responsibility to amend the risk register and implement risk response plans is clearly allocated and a timescale is specified Set a date for a report to the Governing Body (or appropriate Committee) on the actions taken to address new risks identified 78 Back to Index After the Meeting: Circulate minutes, most notably the agreed actions Ensure that someone (e.g. the Head, a Deputy Head or the Business Manager) has responsibility for following up to check that agreed actions are implemented Report to the Governing Body (or appropriate Committee) on the actions taking to address new risks identified as agreed SUGGESTED “PESTLE” PRO FORMA The Development Possible impact on School Risk Action Necessary (By Who, By Profile (Probability/Impact) When) Political Economic Social Technological Legislative Environmental 79 Back to Index Compiling a Risk Register Governing Bodies are responsible for seeing that health and safety precautions are maintained in their school. When compiling a risk register the following considerations are necessary to devise a risk response plan Is there a danger? How likely is it to happen? How serious would it be? How could we prevent or mitigate the risk? What are the priorities? What action should be taken and by whom? Monitor the results regularly. Is the risk still acceptable? Click here to access a summary of good practice to Risk Management The financial toolkit consists of a guide to the Development and Review of a Risk Register , an example of a school's risk management policy, and A Brief Guide to the Development and Review of a Risk Register Click here for further information on risk management from the DCSF 80 Back to Index SECTION 11 COMPUTERISED SYSTEMS This section details the hardware and software employed in running the computerised systems, and the organisations that provide the necessary support. Example Register Hardware The administration department has 10 computers and 7 printers, as listed below: Details of the hardware: LOCATION ITEM PURCHASE DATE Main Office 5 PC‟s 1 Server, 2 printers See asset register Business Manager‟s Office 1 PC, 1 printer See asset register Headteacher‟s Office 1 PC, 1 printer See asset register Learning Support 1 PC, 1 printer See asset register Sports College Administrator 1 PC, 1 printer See asset register PE Reception 1 PC, 1 printer See asset register Main Reception 1 PC See asset register The school has over 500 items of computer equipment all with varying levels of network capabilities and administration access these are listed in a separate asset register hyperlinked below. S:\A1 St-bedes Asset Reg Support Support for the computer hardware and software in the school is covered by a maintenance contract with: Hardware Support supplied by: In school technicians with specialist support when required. Software support supplied by: The Westfield Centre and LA IT Support Network The school operates a Microsoft Server 2003 network. Software The school runs the following programmes: Windows XP Dance EJ Windows Server 2003 Boardworks Microsoft Office 2000/2003 Micro Librarian Booking Pro Testbase Photoshop Elements Activ Studio 3 AB Monitor Online Exam Software – Promiser P Counter Sibelius 4 Various other packages both purchased and free are used in departments 81 The School uses the following school management systems: Capita SIMS System 82 Back to Index Systems Manager The systems manager is Miss S Barrett, Mr P Loynd, Miss J Taylor Security All PC‟s are marked with postcode and contained in locked rooms. All use of the networks both admin and curriculum are password protected and each member of staff has suitable access rights. Monitoring software is used to supervise the use of computers by pupils. Backup Procedures Tape backup made everyday as part of a two weekly cycle by an IT technician which are stored in a fire proof safe and one copy taken off-site by the IT Technician each day. 83 Back to Index SECTION 12 LIST OF EXTERNAL ADVISORS/CONTACTS Please enter contacts details as appropriate. EXTERNAL ADVISORS: Name: Salford Diocesan Schools Commission Address: 5 Gerald Road Pendleton Salford M6 6DL Tel No: 0161 736 1421 Fax No: 0161 745 9708 Email: Contact Name: AUDITORS/ACCOUNTANTS: Name: Mrs A Taylor Address: Blackburn with Darwen Internal Audit Department F Floor, Tower Block Town Hall Blackburn Tel No: 01254 585760 Fax No: Email: Contact Name: BANKS: Name: Lloyds TSB Address: Church Street Blackburn Tel No: 0845 072 5555 Fax No: 0161 236 9452 Email: Contact Name: Mrs Janet Greenhalgh# + LOCAL CHILDREN’S SERVICES FINANCE DEPARTMENT: Name: Children‟s Services Finance Address: Floor West 4, The Exchange Building Ainsworth Street Blackburn Tel No: 01254 666406 Fax No: Email: Contact Name: Mr Abrar Hussain 84 Back to Index INSURANCE: Name: Zurich Insurance PLC Address: The Zurich Centre 3000 Parkway Whiteley Fareham Hampshire PO15 7JZ Tel No: 01254 585870 Fax No: Email: Contact Name: Mrs Linda Clarke PAYROLL: Name: Capita HR & Payroll Services Address: Castleway House Preston New Road Blackburn Tel No: 01254 273133 Fax No: Email: Contact Name: Ms Janet Henderson PERSONNEL: Name: Capita HR & Payroll Services Address: Castleway House Preston New Road Blackburn Tel No: 01254 273108 Fax No: Email: Contact Name: SOLICITOR: Name: Blackburn with Darwen Legal Services Address: Town Hall Blackburn Tel No: 01254 585253 Fax No: Email: Contact Name: Mr Paul Mendeika 85 Back to Index SECTION 13 GLOSSARY OF ABBREVIATIONS AND FINANCIAL TERMS USED IN SCHOOLS Included in this section of the Financial Procedures Manual is a list of a abbreviations and terms used in schools which are familiar to all those involved or employed in education but may not necessarily be familiar to all those employed outside education e.g. Governors, parents etc Click here to access the glossary of terms 86 Back to Index SECTION 14 A GUIDE TO SETTING UP AND MANAGING RELATIONSHIPS WITH EXTERNAL ORGANISATIONS This section includes the key elements of relationship between the school and an external organisation. The Audit commission published a report that considers the vital links between school performance and the communities schools serve. It offers examples of good practice, for instance, where partnership working has been successful and provides a self-assessment questionnaire. It is intended primarily for officers and elected members in councils and their partner organisations and for senior managers and governors in schools. Click here to view the report via the Audit Commission Website The way a relationship is set up between the school and an external organisation can have a major impact on the benefit and satisfaction that both parties derive from it, as well as managing risk. The key elements of the relation from the summary are amplified below in the form of a checklist of items that need to be considered when setting up a relationship with an outside organisation. The list is extensive and not all the items will be relevant to every case so a degree of common sense has to be applied. The scale of the relationship also has to be taken into account, as it is unreasonable to expect the degree of formality that exists in that with the LA to be replicated in dealings with the PTA or small local sponsors. Nevertheless, by whatever means, the inputs, responsibilities and expected outcomes need to be clear in every case. The checklist refers to an “activity” resulting from the relationship, but this should be interpreted very broadly. The “activity” could be anything from the purchase of items of equipment by a PTA to the provision of part time mentors from within the staff of a commercial organisation. A checklist of items to be considered when setting up and managing a relationship with an external organisation is included below. All the following are subject to an agreement in writing which specifies the inputs, responsibilities and expected outcomes. Timing When does the agreement take effect? When does the agreement terminate Resources to be provided by each party Staff (including arrangements for salaries, allowances, pensions, bonuses and holiday pay, as appropriate) Premises Equipment Finance Responsibilities For day to day management of the activity For recruiting staff (or replacing staff if this is necessary) Maintenance and repair of premises Maintenance and replacement of equipment Insurance cover for staff or assets Location Where the activity will take place How much space will be devoted to it? 87 Back to Index Outcomes Defined as closely as possible in terms of quantity and quality but depends on the nature of the activity Timescale over which the outcomes will be achieved Premature termination The conditions that would enable the parties to the activity to terminate the agreement prematurely The way in which the costs of premature termination would be met Any compensation that would be due as a result of premature termination Capable of delivery by the School Should be within the legal capabilities of the school (if in doubt always consult the LA‟s Legal Service) The school should have a realistic possibility of achieving the agreed outcomes Approved by the Governing Body in advance of commitment to the activity Adequate information was provided to the governing body for their consideration The activity was given due consideration Formal approval has been given and minuted Specific management arrangements for the activity, including provision of management information to the other parties involved, covering use funds or other resources and involved, include progress towards the agreed outcomes Establishment of overall management arrangements (one party to take full responsibility, joint committee etc) Information to be provided to all parties Use of resources Progress towards outcomes Frequency of reporting Promptness of reporting Appropriate management and monitoring arrangements within the school Responsibility clearly allocated within the management structure of the school Regular reporting to the governing body or appropriate committee Audit arrangements as necessary Arrange for coverage by internal audit Arrange for audit certification of returns to the other parties to the activity Provide information required by the auditors of the other parties to the activity Arrangements at the conclusion of the agreement Who will own any assets? Who will meet any redundancy costs of staff no longer required? Click here to view the (EIP) partnership website 88 Back to Index SECTION 15 THE CULTURAL IMPERATIVE & STAFF DEVELOPMENT AND DEPLOYMENT Sustained improvement in our school has become a political imperative as well as an educational objective. This is most likely to be achieved in schools where there is a culture that encourages everyone to give their best both individually and collectively. The challenge for school leaders (governors, the, and senior management staff- click here to view an independent study on school leadership) is to foster such a culture, as this is one key to achieving the desired improvement. Within the financial toolkit there is the guide to Culture Management supported by the School Culture Questionnaire, School Culture Analysis, and Culture Unblocking Strategies to support effective culture management: The tda Performance Management Planning statement can be found here Information on the Certificate and Diploma of School Business Management can be found here The management and deployment of staff is critical to school improvement and effective financial management since: The government agenda for change, revision, standards and skills in the curriculum of schools, impacts heavily on staffing deployment and utilisation as the role of the teacher and support staff evolves In the current agenda of change staffing is, in the context of other cost centres such as ICT, Administration and Premises, very significant. How staff are used and what they achieve drives “whole school improvement” and is financially highly significant Effective staff utilisation impacts upon staff morale and effective curriculum delivery i.e. it impacts on school outcomes Staffing is the cost centre in a school that, by its nature, prompts managers to respond to change rather than manage it, i.e. resignation, promotion, maternity and sickness. All of these have financial consequences Whether a school is in deficit or has surplus funds to invest or is managing staff shortages it needs a clear policy on, and procedures for, staff utilisation/deployment to ensure transparent, efficient and effective decision making A school as a pupil centred organisation must focus on staff and staff utilisation and deployment in the context of its core purpose Staffing, as the biggest cost centre, incorporates a greater risk to financial control Source: DCSF R40 Document Click here to access the logical chain: continuing professional development in effective schools (2006) Click here to view the document relating to the salary sacrifice option for teachers Click here to access a Staff Management and Deployment Self Evaluation Checklist Click here for Remodelling the school workforce Click here for information on school teachers pay and conditions 2007 The impact of school leadership on pupil outcomes 89 Back to Index SECTION 16 – TEMPLATES The following templates can be downloaded and adopted for school use: TEMPLATE REFERENCE 1)Example Business Manager Job Description Go to Section 2i 2) Example Business Manager Job Description for a Junior School Statement of Internal Control Checklist (2005) template Go to Section 2 Culture Management - Questionnaire (2005) Template Go to Section 15 Culture Management - Data Analysis Spreadsheet (2005) Template Go to Section 15 Culture Management - Unblocking Strategies (2004) Template Go to Section 15 Cash Flow Statement Pro-Forma Template Go to Section 7 Risk Register Template Go to Section 10 Risk Response Plan Template Go to Section 10 Financial Summary Template Go to Section 8 Staff Management and Deployment Self Evaluation Checklist Go to Section 15 90 Back to Index SECTION 17 – Benchmarking It is vital that your school makes the best possible use of its limited resources. There is a greater need than ever to demonstrate best value to parents, auditors and regulators, and the need to ensure internally that resources are used effectively, is prompting schools to compare finances through benchmarking. Benchmarking should be part of the schools‟ strategic financial planning to allocate resources to maximise pupil performance. By using it to focus on improvement it becomes a powerful to highlight opportunities for change. The benefits of benchmarking your schools expenditure are: Focus on planning and managing your budget; Identify areas for improvement; Set targets for improvement; Achieve best value; Improve the effectiveness of your spending to improve performance; Deliver educational services to a defined service; The benchmarking website within teachernet www.teachernet.gov.uk - (follow link to financial benchmarking and then to Benchmarking option, enter username and password and your school data will be already populated on the relevant site) - breaks down your schools expenditure over 5 key areas; personnel, educational supplies, premises costs, occupation costs, and other supplies & services. A key part of the benchmarking website is the section which allows you to select comparison criteria to enable comparison to similar schools. These criteria work in combination. There are many thousands of combinations possible, some of which may not find sufficient matches in the database. Equally too few criteria will find too many matches. To avoid fruitless searches the site uses a prioritising process. Source: DCSF R35 Document Click here to access the Value for Money website. This gives a background on the Consistent Financial Reporting Framework and also some guidance on how to treat the Standards Funds Grants in CFR. This site also links to the CFR Framework, Amendment Summary 2005/06, School Finance Pack, Standards Fund Guidance, CFR Framework Table 2006/07 and New CFR 2006/07 Codes Guidance Notes. Click here to access the Making Financial Benchmarking Work for Your School guide Click here to access guide to Benchmarking Click here to access the Guidance on Making Financial benchmarking work for your school 91 Back to Index SECTION 18 – RESOURCE DOCUMENTS To access Resource Documents click on relevant link below: Guidance on School Companies The Role of the Local Authority in School Education Connecting Schools, Networking People - ICT Guide Five Year Strategy for Children and Learners Financial Risk and Control Checklist - Primary School Financial Risk and Control Checklist - Secondary School Standards for Financial Management at Holland Park School (2003) How well are they doing? – Ofsted publication on extended schools and sure starts Disability Discrimination information 92 Back to Index SECTION 19 ONLINE SUPPORT DOCUMENTATION The resource documents in the table below are all available online: DOCUMENT NAME CLICK ON LINK BELOW TO ACCESS DOCUMENT Keeping Your Balance (2000) Keeping Your Balance Audit Commission Schools Standards and Framework School Standards and Framework Act 1998 HMSO School Finance Pack (2003) School Finance Pack DCSF Worth the Risk? (2001) Worth the Risk? Audit Commission Area Guidelines for schools Area Guidelines for schools DCSF R24 Getting the Best From Your Budget Audit-commission site Audit Commission Education Act 2002 Education Act (2002) HMSO Remodelling the school workforce Workforce Remodelling OFSTED Freedom of Information Act – guide for Freedom of Information Act – guide for maintained schools maintained schools DCSF Model Pay Policy Model Pay Policy DCSF Pay Calculator Pay Calculator DCSF School views of LA (2007) Schools Views of LA 2007 Audit Commission Framework for inspecting schools Framework for Inspecting Schools OFSTED A New relationship with schools A New Relationship With Schools DCSF New Relationship with Schools: Next Steps A New Relationship With School: Next Step DCSF Governing the school of the future Governing The School of the Future DCSF R74 Late payment of commercial debts Late Payment of Commercial Debts (Interest) Act 1998 HMSO Managing school resources Self Evaluation Managing School Resources Self Evaluation Tool - Audit Commission 93 Back to Index DOCUMENT NAME CLICK ON LINK BELOW TO ACCESS DOCUMENT Parents’ Satisfaction with Schools, 2006 Parents' satisfaction with schools OFSTED Embedding ICT in Schools, 2005 Embedding ICT in Schools OFSTED General Code of Conduct and Registration Registration of interest for Senior Staff of interest for Senior Staff (2005) OFSTED Extended Schools prospectus and support Extended Schools Prospectus & Support Pack pack (Published 2006) DCSF/NRT EU and other procurement rules (published EU and other procurement rules 2006) OGC Extended Schools – Toolkit for Governors Extended Schools Toolkit for Governors (published 2006) DCSF Education Procurement Centre Education Procurement Centre DCSF Clerk to the Governing Body-overview Clerk to the Governing Body - overview DCSF School Funding Settlement 2008-2011 School Funding Settlement 2008-11 DCSF Guidance on the Extended Schools Initiative Guidance on Extended Schools & Provision of and the provision of pre-school pre-school Charity Commission 94 Back to Index DOCUMENT NAME CLICK ON LINK BELOW TO ACCESS DOCUMENT Guidance on the Roles Of Governing Bodies Governing body decision planner and Headteachers (2000) DCSF School Funding Legal Framework School funding legal framework DCSF School Finance CFR Pack CFR framework DCSF Setting up parent councils – case studies – Setting up parent councils research report 2006 DCSF Energy efficiency advice available from the Energy Advice from the carbon trust Carbon Trust DCSF Guidance on Procuring School Meals Procuring School Meals Teachernet Extended Schools Extended School tda Schools Private Finance Initative Schools Private Finance Initative Teachernet Analytics to help with efficiency and Analytics to help with efficiency and performance performance DCSF Schemes for Financing Schools: Directed Schemes for Financing Schools 2006 revisions DCSF guidance, October 2006 DCSF For a list of the new documents created for New documents for 2008 2008 and any amendments to the 2007 resource documents see opposite 95 Back to Index SECTION 20 - Editable Resource Documents (double click icon to view/edit form) R3a – Governing body decision planner resource document R3a R11 – Financial Management Competencies Matrix for school staff (2005) Resource document r11 (word version) R12a – Example Business Manager Job Description (2003) resource document 12a R15a –Statement of Internal Control Template R15A.doc R15b – Governor Checklist (2005) Resource Document 15b R18a – Culture Management – Questionnaire (2005) resource document 18a R18b – Culture Management – Data Analysis Spreadsheet (2005) resource document 18b 96 Back to Index Editable Resource Documents – double click icon to view/edit form R18c – Culture Management – Unblocking Strategies (2004) resource document 18c R20 – Financial Management Competencies Matrix for School Governors (2005) Resource Document r20 (word version) R23a – A Suggested Cash Flow Statement Pro-Forma (2005) resource document 23a R30a – Risk Register resource documents 30a R30b – Risk Response Plan resource document 30b R33a – Financial Summary Resource document 33a 97 Back to Index Editable Resource Documents – double click icon to view/edit form R40a – A Staff Management and Deployment Self Evaluation Checklist (2005) resource document 40a R118 – Business Manager – Job Description and Person Specification for a Junior School Resource document 118 98