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FOREWORD

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					FINANCE

MANUAL
(Updated 16/09/10)
FOREWORD



The school‟s Finance Manual has been held in its current format since August
2007, which followed a comprehensive review and update, as required, of its
internal financial responsibilities, rules and procedures, to ensure full compliance
with the requirements of the DfES Financial Management Standard in Schools
(FMSiS) and best practice.

Whilst the Finance Manual helped the school to achieve FMSiS accreditation, it is
vitally important that it is regularly reviewed and updated and, even more
important, that all appropriate staff and Governors are familiar with, and
strictly adhere, to its contents. This version of the Finance Manual is the third
time it has been updated since August 2007. Earlier versions of it should be
discarded to avoid any confusion.

Paper versions of this Finance Manual have been distributed to all members of the
Senior Leadership Team, Heads of Department, Learning Leaders, all other budget
holders, all Finance staff and other relevant members of the school‟s Support Staff
and Governors. Also, a copy of it is held in the Staff Room and further copies can
be obtained from the Finance Office. An electronic version of the Finance Manual
can be accessed through the school‟s Intranet.

Any queries or clarification required regarding its content should be directed, in the
first instance, to either the Finance Manager (Operations) or the Business &
Support Service Manager.

This latest version of the Finance Manual was approved by the Governing Body at
its meeting on 16 September 2010. It will continue to be reviewed and updated on
a regular basis to reflect best practice and legislative requirements.




Finance Manual                       Foreword                     Approved 16/09/10
                  Upton-By-Chester High School

                             FINANCE MANUAL


Foreword

Contents Page

1     Governance (Organisation of Responsibility & Accountability)

2     Financial Planning

3     Budget Monitoring

4     Purchasing & Leasing

5     Financial Controls

6     Official Income & Banking

7     Payroll & Personnel

8     Imprest Account (& Petty Cash)

9     Tax

10    Unofficial School Funds

11    Asset Management

12    Insurance & Risk Management

13    Security




Finance Manual                  Main Contents Page            Approved 20/05/10
CHAPTER 1 – GOVERNANCE (ORGANISATION
            RESPONSIBILITY & ACCOUNTABILITY)

1.1    Role of Governing Body

1.2    Frequency and Scheduling of Governor Meetings

1.3    General Committee Arrangements

1.4    Role of the Governors‟ Finance Committee

1.5    Chairman‟s Action

1.6    Role of the Headteacher

1.7    Roles of the Business & Support Service Manager, The Finance
       Manager and Finance Assistant

1.8    Role of Clerk to the Governing Body

1.9    Scheme of Financial Delegation

1.10   Business Ethics


Appendix 1 – Terms of Reference of Governors‟ Buildings Committee

Appendix 2 – Business & Support Service Manager – Principal Duties &
             Responsibilities

Appendix 3 – Finance Manager – Principal Duties & Responsibilities

Appendix 4 – Finance Assistant – Principal Duties & Responsibilities

Appendix 5 – Role of Clerk to the Governing Body

Appendix 6 – Scheme of Financial Delegation




Finance Manual                     Chapter 1                   Approved 16/09/10
CHAPTER 1 – GOVERNANCE (ORGANISATION
            RESPONSIBILITY & ACCOUNTABILITY)

1.1   Role of Governing Body

1.1.1 The Governing Body of Upton-By-Chester High School, supported by
      information and advice provided by the Headteacher, determines the
      strategic direction of the school. The school‟s Governors have
      collective responsibility for financial decisions that are made in the
      context of how the school is run and are answerable to parents and the
      wider community.

1.1.2 Whilst responsibility for the implementation of financial decisions
      remains with the school‟s Headteacher, the strategic direction is
      provided by the Governors.

1.1.3 The Statutory responsibilities of the Governing Body are defined within
      Section 21 of the Education Act 2002 (copy available in Governor
      Induction Pack).

1.1.4 The key financial responsibilities of the school‟s Governing Body
      include:-

         Setting financial priorities through the Strategic School
          Development Plan (SSDP), the medium-term financial plan and the
          annual budget.
         Deciding on how the school‟s delegated budget should be spent, in
          accordance with the school‟s SSDP and the statutory curriculum
          requirements laid down by the Government.
         Approving and monitoring the annual budget.
         Ensuring the budget is managed effectively.
         Ensuring the school meets all its statutory obligations, and through
          the Headteacher complies with the Local Authority‟s regulations /
          standing orders.
         Determining virement and expenditure thresholds.
         Evaluating the effectiveness of spending decisions.

1.1.5 More specific responsibilities of the school‟s Governing Body include:-

         Ensuring that there is a Finance Handbook containing information
          and a description of financial systems and procedures for all staff
          with financial management responsibility.
         Establishing formal procedures and a timetable for budget planning.
         Ensuring that only a balanced sound budget is approved.
         Ensuring that financial records are maintained that can provide
          auditors and inspectors with explanations they consider necessary.




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          Responding promptly to recommendations made by auditors or
           inspectors.
          Monitoring the budget and implement virements when appropriate.
          Ensuring that the school obtains best value for money when
           purchasing goods and services.
          Establishing a charging policy for the supply of goods and services.
          Establishing and maintaining a register of pecuniary interests of
           governors and staff who influence financial decisions. This should
           be open to examination by Governors, staff, parents and the Local
           Authority.
          Ensuring that financial duties of staff are clearly described to avoid
           potential conflicts.
          Ensuring, in conjunction with the Headteacher that:-
              o Salary payments are only made to school employees
              o Salary payments are made in accordance with appropriate
                  conditions of employment
              o Salary payments are only made for services provided to the
                  school
              o Appropriate statutory deductions are made (i.e. Tax and NI)
              o Payroll changes are accurately recorded and promptly
                  processed.
          Deciding, after careful consideration, whether or not to insure risks
           not covered by the Local Authority.
          Authorising the disposal or write-off of stock.

1.1.6 The Governing Body has established a range of committees and
      afforded appropriate limits of delegated powers to them and to the
      Headteacher to assist it in the effective discharge of its responsibilities.
      In addition to the Finance Committee, the Governing Body has
      established the following committees:-

          Buildings Committee
          Personnel Committee
          Curriculum Committee
          Policy Committee
          Upton Recreation Centre Joint Use Committee
          Sponsorship and Fund Raising Committee
          Annual Review of Objectives Committee
          Student Disciplinary Committee
          Staff Dismissal Committee
          Dismissal Appeal Committee

1.2    Frequency & Scheduling of Governor Meetings

1.2.1 The full Governing Body holds 6 scheduled meetings per year i.e. one
      every half-term. Meetings of the Governors‟ Finance Committee are
      scheduled to take place on a Termly basis in advance of the full
      Governing Body meetings in order that any matters arising from them
      can be taken forward promptly to all governors.


Finance Manual                   Chapter 1 – Page 2                Approved 16/09/10
1.2.2 Meetings of the Buildings Committee are held Termly (see Appendix 1
      for its Terms of Reference). The Personnel Committee meets at least
      annually, with all other committees meeting as and when required.

1.3   General Committee Arrangements

1.3.1 Membership – All committees shall consist of no fewer than three
      Governors plus the Headteacher or member of staff nominated by the
      Headteacher. Also, they may have as many co-opted non-voting
      members as the Governing Body shall appoint. Each committee may
      make recommendations for these appointments.

1.3.2 Quorum – The quorum of all Committees will be three Governors,
      except for staff appeals where the quorum is five.

1.3.3 Terms of Reference – All Governor committees will have formal
      Terms of Reference.

1.3.4 Minuting – All Governor meetings will be minuted to provide a vital
      record of matters discussed and decisions taken. Fundamental
      requirements of the minutes will be that they are accurate, promptly
      prepared and orientated towards the action that is required.

1.3.5 Reporting – The business of all Committees will be reported at the
      following full Governing Body meeting.

1.3.6 Review – The functions and membership of all committees will be
      reviewed annually at the first meeting of the Autumn Term.

1.4   Role of the Governors‟ Finance Committee

1.4.1 The specific terms of reference of the Governors‟ Finance Committee
      at Upton-By-Chester High School are:-

         To provide guidance and assistance to the Headteacher and the
          Governing Body in all matters relating to budgeting and finance.
         To consider and recommend the annual budget to the Governing
          Body, which is targeted at delivering the School Improvement Plan.
         To consider the impact of pupil number forecasts on the school‟s
          future funding.
         To monitor the income and expenditure of all official funds (i.e. fully
          delegated and earmarked funds) and report the financial situation to
          the Governing Body each term.
         To consider recommendations from other committees, which have
          financial implications and to provide advice to the Governing Body
          accordingly.
         To evaluate the effectiveness of financial decisions.
         To ensure the adequacy of the internal financial control framework
          within the school and to appraise any proposed changes to financial


Finance Manual                  Chapter 1 – Page 3                Approved 16/09/10
          systems, procedures and limits of delegated authority on behalf of
          the Governing Body.
         To ensure that the same high standards of stewardship afforded to
          the official funds are applied in relation to the school‟s unofficial
          funds (i.e. School Fund).
         To receive and appraise, on behalf of the Governing Body, the
          termly financial reports on transactions and balances within the
          School Fund and the end of year accounts and Auditor‟s certificate.
         To review annually the school‟s charging policy and the adequacy
          of the school‟s insurance and make recommendations to the
          Governing Body accordingly.

1.5   Chairman‟s Action

1.5.1 The Chair of Governors, or if unavailable, the Vice Chair (Chair of
      Finance Committee), has the power to discharge any of the Governing
      Body‟s functions in circumstances where any delay would be seriously
      detrimental to the school.

1.6   Role of the Headteacher

1.6.1 The Headteacher‟s role is to provide vision, leadership and direction for
      the school and ensure that it is managed and organised to meet its
      aims and targets, which are established by the Governing Body. The
      Headteacher has delegated responsibility for the following functions in
      relation to the finances of the school:-

         Leading and managing the creation of the SSDP, underpinned by
          widespread stakeholder consultation and sound resource planning,
          which identifies challenging but achievable targets for ensuring that
          pupils achieve high standards and make progress, increasing
          teacher effectiveness and securing school improvement.
         Ensuring that the relevant Local Authority regulations/standing
          orders or DfES requirements are implemented.
         Establishing sound internal financial controls.
         Ensuring the effective implementation of current financial systems
          and procedures described herein (even in the absence of key staff).
         Checking that the funds delegated by the Local Authority are
          correct.
         Compiling a draft budget for consideration by the Governors‟
          Finance Committee and for formal approval by the Governing Body.
         Consider and respond promptly to recommendations within the
          school‟s audit/inspection reports, and to advise Governors of results
          and remedial action to be implemented.
         Ensure the maintenance of an accurate and current asset register
          of all attractive and portable items.
         Ensure the adequacy of the school‟s insurance arrangements as
          part of the annual financial review.
         Implement school pay policy and appointment procedures.


Finance Manual                  Chapter 1 – Page 4               Approved 16/09/10
          Plan for effective monitoring, evaluating and reviewing of the SSDP
           to secure progress and school improvement.
          Think creatively and imaginatively to anticipate and solve problems
           and identify opportunities.
          Ensure that resourcing and staffing are dedicated to securing the
           highest standards of achievement for all pupils.
          Set appropriate priorities for expenditure, allocate funds and ensure
           effective administrative control.
          Manage and organise accommodation efficiently and effectively to
           ensure it meets needs of the curriculum and health & safety
           regulations.
          Manage, monitor and review the range, quality, quantity and usage
           of all available resources in order to improve pupils‟ achievements,
           ensure efficiency and secure value for money.

1.7    Roles of the Business & Support Service Manager, The Finance
       Manager & The Finance Assistant

1.7.1 The principal duties of the Business & Support Service Manager, The
      Finance Manager and the Finance Assistant are shown in Appendices
      2, 3 and 4 to this Chapter respectively.

1.8    Role of Clerk to the Governing Body

1.8.1 The role of the Clerk to the Governing Body is outlined within Appendix
      5.

1.9    Scheme of Financial Delegation

1.9.1 The principal limits of delegated financial authority applicable at Upton-
      By-Chester High School, as approved by the Governing Body, are set
      out within Appendix 6.

1.10   Business Ethics

1.10.1 It is important that the Governors and staff of Upton-By-Chester High
       School not only act impartially, but are also seen to act impartially. The
       Nolan Report in 1996 on standards in public life identified seven
       principles which should be applied. These are: selflessness, integrity,
       objectivity, accountability, openness, honesty and leadership.

       Pecuniary Interests

1.10.2 One way of demonstrating that the school is applying these principles
       is through the annual formal declaration of pecuniary interests, which
       every Governor and member of staff has a legal duty to make under
       Section 117 of the Local Government Act 1972.

1.10.3 A pecuniary interest is any form of remuneration such as salaries,
       wages, fees, commission, agency fees and interest.


Finance Manual                   Chapter 1 – Page 5               Approved 16/09/10
1.10.4 Individuals are required to declare any interest that they, or any of their
       close family, may have with any local firms from which the school may
       wish to buy goods or services. Declaring such interests does not
       prevent the school from dealing with these firms, but provides a level of
       protection to Governors and staff against any imputation that they have
       secretly misused their position to gain personal advantage.

1.10.5 Individuals are required to complete a declaration regardless of
       whether they have the authority to purchase or not and must submit a
       “nil” return if they have no interests to declare.

1.10.6 The Finance Manager is responsible for maintaining the Pecuniary
       Interest Register and for co-ordinating its annual update. The Register
       is open for inspection by contacting either the Finance Manager or
       Business & Support Service Manager.

1.10.7 The Personnel & Office Manager will be responsible for ensuring that
       new staff joining the school complete a Pecuniary Interest declaration
       upon appointment as part of the induction process.

       Gifts and Hospitalities

1.10.8 Governors and staff should not accept gifts and hospitality except in
       very limited circumstances. Even then, the receipt of gifts and
       hospitality should be recorded in the Register of Gifts and Hospitality
       maintained by the Finance Manager. It is a criminal offence to accept
       money, gift or hospitality in return for special favours.

1.10.9 School staff often receive presents from children at the end of the
       school year or Christmas and these are usually of low value. Items
       such as these do not need to be recorded in the Register, nor do other
       items of low value such as calendars or diaries from suppliers.

        Governor Conflicts of Interest

1.10.10 The Clerk to the Governors will ensure that there is a standing item on
        all Governor meetings for Governors to declare any conflicts of
        interest. Where a Governor, or a close member of their family, may
        gain from a financial decision being made by the Governors, then the
        Governor must declare it as a potential conflict of interests. In the
        event of an interest being declared during the course of a meeting, the
        details are to be recorded in the minutes, and the governor(s)
        concerned should withdraw from the meeting for the items where the
        conflict exists.

Appendix 1 – Terms of Reference of Governors‟ Buildings Committee

Appendix 2 – Business & Support Service Manager – Principal Duties &
             Responsibilities


Finance Manual                   Chapter 1 – Page 6                Approved 16/09/10
Appendix 3 – Finance Manager – Principal Duties & Responsibilities

Appendix 4 – Finance Assistant – Principal Duties & Responsibilities

Appendix 5 – Role of Clerk to the Governing Body

Appendix 6 – Scheme of Financial Delegation




Finance Manual                 Chapter 1 – Page 7              Approved 16/09/10
                                                           Chapter 1 – Appendix 1


Governors‟ Buildings Committee Terms Of Reference

Purpose

To oversee the effective management and use of the school premises,
grounds and extended school facilities. Through effective monitoring of the
development of the facilities including: new building and maintenance
projects, and offering appropriate recommendations on accommodation,
caretaking, cleaning, decorating, maintenance, and utilities. Ensuring the
school complies with current Health & Safety legislation, including the
appropriate risk assessments.

Remit

1. To monitor the current use of the premises and to plan for future curricular
   needs so that effective learning can take place.

2. To monitor maintenance requirements on an annual basis and to act
   accordingly.

3. To make recommendations to the Finance Committee, to oversee
   premises-related funding bids.

4. To keep under review the lettings policy of the school and to evaluate the
   benefits to pupils and the community of such use of the premises.

5. To have regard to the Health & Safety of all who use the premises by
   regular review.

6. To establish and keep under review an Accessibility Plan.

7. To receive regular reports on inspections.

8. To monitor utilities for sustainability.




Finance Manual                Chapter 1 (App 1) – Page 1          Approved 20/05/10
                                                            Chapter 1 – Appendix 2


           PRINCIPAL FINANCIAL DUTIES / RESPONSIBILITIES
           OF THE BUSINESS & SUPPORT SERVICE MANAGER


Reports To: Headteacher

Line Manager To (Finance Only): Finance Manager

The Business & Support Service Manager has a strategic financial
management role within the school. Whilst there are other dimensions to the
post apart from finance, the principal financial responsibilities of this
postholder are as follows:-

1. Leading, developing, motivating and managing the performance of the
   Finance Manager, ensuring that they work efficiently and effectively and
   adhere to the prescribed financial regulations and procedures.

2. Drafting the annual school budget, assisted by the Finance Manager, for
   consideration and approval by the full Governing Body (via the Governors‟
   Finance Committee), with a focus on providing the necessary resources
   required to deliver the School Improvement Plan.

3. To cost and appraise options for potential significant school projects for
   consideration by the school‟s Headteacher / Governing Body.

4. Ensuring that the VB1A (original budget input form) is promptly submitted
   to the Local Authority (LA) following the Governing Body‟s approval of the
   budget.

5. Forecasting the levels of funding that the school is likely to receive over
   the following 2 to 3 years and modelling budgets accordingly to facilitate
   medium-term budget planning.

6. Providing professional accounting advice to the school‟s Headteacher /
   Governing Body.

7. Completing in-year monitoring of all budgets to provide assurance that
   income and expenditure levels are within acceptable tolerances or to
   swiftly identify any remedial action that needs to be taken in order to rectify
   the problem. This is done in liaison with individual budget holders, the
   Headteacher and the Governors‟ Finance Committee / Full Governing
   Body (as appropriate).

8. Preparing and presenting budget monitoring reports against all budgets,
   on at least a Termly basis, to the Governors‟ Finance Committee. These
   reports should:-

      Provide the right level of details for its target audience.
      Show actual and projected expenditure.
      Compare expenditure to budget and explain variances.


Finance Manual               Chapter 1 (App 2) – Page 1              Approved 20/05/10
                                                           Chapter 1 – Appendix 2


      Provide recommendations for consideration and approval for
       overcoming budget issues.

9. Monitoring the adequacy of reconciliations of all web reports, initialling and
   dating the reconciliations.

10. Identifying and implementing ways of reducing costs without compromising
    on the quality of services provided (i.e. ensuring the achievement of value
    for money) – use of Benchmarking.

11. Reviewing and approving on DCal transactions made through corporate
    Purchase Card(s) assigned to authorised staff within the school.

12. Checking and authorising orders and certifying invoices up to £50,000.

13. Ensuring that any leasing arrangements that the school is considering
    entering into are fully compliant with the Prudential Code for Capital
    Financing in Local Authorities.

14. Ensuring that the school has written descriptions of all of its financial
    systems and procedures, which are kept up-to-date, approved by the
    Governors‟ Finance Committee, and all appropriate staff are trained in
    their use.

15. Ensuring adherence to financial legislation and the LA‟s / school‟s financial
    policies and procedures. Keeping abreast of potential legislative and
    external policy changes, assessing their likely impact on the school, and
    plan accordingly.

16. Ensuring that adequate financial control is maintained in the absence of
    key staff through staff training and work shadowing.

17. Co-ordinating the regular review and updating of the school‟s Charging
    Policy

18. Completing ad-hoc spot checks of the Imprest account, School Fund and
    Purchase Card records and balances.

19. Identifying potential income sources for the school, evaluating them, and
    making recommendations to the Headteacher / Governing Body for
    consideration.

20. Assessing and authorising the write-off of bad debts up to £100 in value.

21. Assessing and authorising the working of additional hours by any Support
    Staff.

22. Reviewing and authorising pay adjustments and staff expense claims.




Finance Manual               Chapter 1 (App 2) – Page 2            Approved 20/05/10
                                                           Chapter 1 – Appendix 2


23. Assessing and authorising leave requests by Support Staff (e.g. annual
    leave, medical leave, time-off-in-lieu).

24. Acting as an additional holder to the school‟s Flexibility Imprest account.

25. Reviewing and authorising payments out of the Imprest account, including
    the certification of Imprest cheques.

26. Assessing and approving/rejecting requests for imprest expenditure above
    the general £60 transaction limit.

27. Reviewing, initialling and dating the monthly Imprest bank reconciliations.

28. Receiving, checking and signing the Imprest Returns as the Authorised
    Certifying Officer.

29. Overseeing the day-to-day operation of the School Fund ensuring the
    application of high standards of stewardship.

30. Responsible for authorising all School Fund expenditure, generally acting
    as the first signatory and ensuring that expenditure is in accordance with
    the Fund‟s Constitution.

31. Investigating any identified anomalies within the School Fund to a
    satisfactory conclusion.

32. Ensuring that School Fund moneys are wisely invested to attract good
    rates of interest.

33. Reviewing, initialling and dating the monthly School Fund bank
    reconciliations.

34. Ensuring that the School Fund accounting records are independently
    audited, on an annual basis, and that the audited accounts and Termly
    reports are presented to the Governors‟ Finance Committee for its
    consideration and approval.

35. Checking and authorising the school‟s annual return to the Charity
    Commission, ensuring its submission within the permitted timescale.

36. Investigating any loss of school assets to a satisfactory conclusion.

37. Ensuring that the school‟s insurers are promptly notified of any accidents,
    losses and other incidents that may give rise to an insurance claim.

38. Ensuring that cash, cheques and cheque books and other items of
    controlled stationery are held securely at all times.




Finance Manual               Chapter 1 (App 2) – Page 3           Approved 20/05/10
                                                          Chapter 1 – Appendix 3


           PRINCIPAL FINANCIAL DUTIES / RESPONSIBILITIES
                     OF THE FINANCE MANAGER

Reports To: Business & Support Service Manager

Line Manager To: Finance Assistant

Principally, the Finance Manager is responsible for day-to-day operational
financial management. The main duties and responsibilities of this postholder
are as follows:-

1 Leading, developing, motivating and managing the performance of the
  Finance Assistant, ensuring that they work efficiently and effectively and
  adhere to the prescribed financial regulations and procedures.

2 Maintaining the Register of Pecuniary Interests for Governors and Staff
  and co-ordinating its annual update.

3 Maintaining the Register of Gifts and Hospitality for Governors and Staff.

4 Assisting the Business & Support Service Manager (B&SSM) in drafting
  the annual school budget for consideration and approval by the full
  Governing Body (via the Governors‟ Finance Committee), with a focus on
  providing the necessary resources required to deliver the School
  Improvement Plan.

5 Providing the Headteacher with copies of the monthly Budgetary Control
  Statement web reports, which are downloaded and exported into Excel
  from the IBS system, for the “whole-school” LMS budget (centre code
  1446000) and the aggregated school budget “AE16306” (which
  incorporate total departmental budgets too).

6 Producing monthly budgetary control statements, transaction listings and
  detailed commitment listings for all departmental budget holders and
  assisting budget holders with financial queries.

7 Reconciling all entries within the general transaction and employee
  transaction listing web reports to local records.

8 Investigating any anomalies detected during the web report reconciliation
  process to a satisfactory conclusion, reporting any significant anomalies
  immediately to the B&SSM or Headteacher.

9 Actioning journal transfers as required and as per the Scheme of Financial
  Delegation.

10 Identifying areas of potential or actual overspends or significant
   underspends to the B&SSM.




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                                                          Chapter 1 – Appendix 3


11 Assisting the B&SSM in undertaking financial benchmarking to highlight
   potential areas for investigation where the school may be able to achieve
   efficiency savings or improve its effectiveness.

12 Checking and authorising orders and certifying invoices up to £25,000 in
   value.

13 Co-ordinating the raising of call-off orders, in conjunction with budget
   holders, for suppliers who are used regularly by the school where it would
   be inappropriate and not cost effective to raise individual orders e.g. for
   processing exam boards related invoices. Formally notifying suppliers of
   the Purchase Order numbers they need to quote against call-off orders
   and providing them with a copy of the LA‟s terms of trade.

14 Verifying the employment status of individuals prior to making any creditor
   payments to them to ensure that they do not need to be paid via Payroll for
   statutory deduction purposes.

15 Using the corporate Purchase Card (P-Card) assigned to the postholder to
   make suitable purchases on behalf of the school in-line with the Purchase
   Card Scheme and the financial limitations imposed on the account. Acting
   as the Manager in reviewing and approving the P-Card expenditure of
   other P-Card holders within the school.

16 Ensuring that detailed financial records, documentation and working
   papers are maintained, which provide adequate audit trails as well as a
   sound basis for technical analysis and decision-making.

17 Taking a pro-active role in seeking continuous improvement of the school‟s
   financial policies and procedures and making recommendations to the
   B&SSM to ensure compliance with legal requirements, LA
   policies/procedures, the Financial Management Standard in Schools and
   other recognised best financial practices.

18 Raising JBills/5AQ2 Forms, as required, to collect income due to the
   school from other parts of the LA.

19 Calculating and raising official invoices, via the IBS Debtors‟ system, to
   collect official income payable to the school from external parties.

20 Ensuring the correct treatment of VAT on creditor and debtor invoices.

21 Managing cashflow within the Imprest account to ensure the account does
   not go overdrawn or generate an excessive balance (i.e. exceeding the
   school‟s anticipated Imprest requirements over the following two months).

22 Submitting requests, as required, to the B&SSM / Headteacher to approve
   temporary or permanent variations to the level of Imprest held.




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                                                          Chapter 1 – Appendix 3


23 Preparing Imprest disbursements for authorisation by the B&SSM or
   Headteacher.

24 Reconciling the local Imprest records to the monthly bank statements,
   initialling and dating the reconciliations before forwarding them to the
   B&SSM for checking and countersigning.

25 Preparing the half-Termly Imprest returns for authorisation and submission
   to the LA.

26 Managing the day-to-day operation of the School Fund.

27 Processing School Fund Payment Requisition forms received, checking
   the appropriateness of the expenditure, supporting documentation and the
   funds available within the client account.

28 Preparing School Fund cheques for certification from 2 of the 4 authorised
   cheque signatories.

29 Managing the School Shop, which operates as part of the School Fund,
   ensuring that periodic stock checks are completed and documented.

30 Maintaining an appropriate petty cash float in relation to the Imprest
   account, ensuring the security of cash held at all times.

31 Ensuring that supporting documentation in relation to School Fund
   transactions is systematically filed for ease of retrieval and auditing
   purposes.

32 Completing monthly School Fund bank reconciliations, initialling and dating
   them, prior to their submission for checking to the B&SSM.

33 Producing regular budget monitoring reports for client account holders.

34 Monitoring the balances on client accounts within the School Fund and
   highlighting any actual / potential funding deficits to the B&SSM.

35 Producing and presenting interim Termly reports to the Governors‟
   Finance Committee on income and expenditure activity and balances
   within the School Fund.

36 Preparing the annual accounts and records for audit by the independent
   School Fund Auditor appointed by the Governing Body.

37 Presenting the audited accounts, comprising of an income and expenditure
   account, a balance sheet and the Auditor‟s Certificate to the Governors‟
   Finance Committee for its consideration, approval and minuting.

38 Significant involvement in the completion of statistical/financial returns
   (e.g. School Censuses) to the LEA / DfES etc.


Finance Manual               Chapter 1 (App 3) – Page 3            Approved 20/05/10
                                                          Chapter 1 – Appendix 3



39 Keeping up-to-date with changes in financial regulations and undertaking
   training to ensure that the best financial practices are being followed.

40. Administering the Staff Gratuity Scheme through the School Fund.

41. Organising hospitality, as required, on behalf of the school.




Finance Manual               Chapter 1 (App 3) – Page 4             Approved 20/05/10
                                                          Chapter 1 – Appendix 4


PRINCIPAL DUTIES / RESPONSIBILITIES OF THE FINANCE ASSISTANT

Reports To: Finance Manager

Line Manager To: No Line Management Responsibilities

The main duties / responsibilities of the Finance Assistant are as follows:-

1 Receiving and checking order requisition forms from budget holders for
  completeness and appropriateness and raising orders accordingly via IBS
  Procurement predominantly, but also via manual official orders (Form
  M434). (N.B. The Finance Assistant prepares orders, but has no authority
  under the school‟s Scheme of Financial Delegation to authorise them,
  which can be done by the Finance Manager (up to £25,000), the Business
  & Support Service Manager (up to £50,000) and the Headteacher (above
  £50,000)).

2 Raising call-off orders through IBS Procurement, as instructed by the
  Finance Manager / Business & Support Service Manager, with suppliers
  used regularly by the school, where it would be impractical / not cost
  effective to raise individual orders. Monitoring expenditure against
  individual call-off orders.

3 Receipting purchase orders in IBS upon receipt of the associated delivery
  notes. Checking delivery note contents to original orders for all orders.

4 Responding to day-to-day purchasing and general finance-related queries
  from budget holders and other staff.

5 Liaising with suppliers on behalf of budget holders, as required, regarding
  potential purchases, deliveries, invoices and statements and responding to
  supplier queries etc.

6 Promptly processing any “quick” invoices received (i.e. invoices relating to
  orders not raised through the IBS, but which can be paid through the Quick
  Invoicing application).

7 Promptly forwarding, to Purchasing & Exchequer Services, any “direct”
  invoices received (i.e. invoices relating to any orders not raised through
  IBS that cannot be processed via the Quick Invoicing application).

8 Taking appropriate actions to clear all incoming transactions within
  MarkView to ensure that the school‟s creditors are paid in accordance with
  the agreed terms of trade. Getting budget holders to verify their receipt of
  invoiced goods by signing copy invoices where signed delivery notes have
  not been forthcoming.

9 Systematically filing order requisitions and associated delivery notes /
  signed copy invoices for ease of retrieval and for web report reconciliation
  purposes.


Finance Manual               Chapter 1 (App 4) – Page 1           Approved 20/05/10
                                                         Chapter 1 – Appendix 4



10 Systematically filing the original invoices processed through the Quick
   Invoicing Application for HM Revenue & Customs purposes.

11 Preparing all income (official and School Fund) for banking on a daily
   basis, ensuring that it is held securely prior to banking.

12 Taking half-Termly meter readings of the school‟s photocopiers and then
   calculating and preparing the internal recharges via expenditure journal.

13 Maintaining the school‟s Free School Meals (FSM) register (and liaison
   with Aspens (Catering Contractor) over pupil entitlements to free school
   meals). Updating SIMS database with FSM details.

14 Assisting with Student Reception / school uniform queries (as required).




Finance Manual              Chapter 1 (App 4) – Page 1          Approved 20/05/10
                                                         Chapter 1 – Appendix 5


Role of Clerk to the Governing Body

The Clerk is responsible for providing a comprehensive confidential support
service to the Governing Body, which includes:-

      Preparing agenda and support papers prior to meetings of the
       Governing Body and its committees;

      Producing and issuing accurate minutes and other documentation;

      Providing procedural and legal advice to the Governing Body in relation
       to Education Department For Education Regulations and Local
       Authority policy documents thereby ensuring compliance at all times;

      Maintaining a database of all Governing Body members and their term
       of office and ensuring that the School Governance Team is notified of
       all changes;

      Maintaining records of Governing Body correspondence, Policy
       documents and current terms of reference and membership of
       committees and working parties; and

      Co-ordinating and administering the election of new Parent and
       Teacher governors.




Finance Manual              Chapter 1 (App 5) – Page 1          Approved 20/05/10
                                                             Chapter 1 – Appendix 6




  Scheme Of Financial Delegation (Limits of Authority)


              Buying     Certifying    Viring     Journal       Sign    Sign              Bad
                         Expend.       Budget     Approval      Imprest School            Debt
                                                                Cheques Fund              Write-
                                                                        Cheques           Off
Gov Body      No limit   N/A           No Limit   N/A           No      No                No
                                                                                          Limit
COG           No limit   N/A           No Limit   N/A           No           No           No
(under                                                                                    Limit
Chair‟s
Action)
Finance       £50,000    N/A           £50,000    N/A           No           No           £5,000
Committee
COF /         £50,000    N/A           £50,000    N/A           No           No           £5,000
Vice COG
Head          £30,000    £250,000      £20,000    No limit      Yes          Yes          £1,000
Dep           N/A        N/A           N/A        N/A           No           Yes          N/A
Heads
Business      N/A        £50,000       £10,000    £100,000      Yes          Yes          £100
Manager
Finance       N/A        £25,000       N/A        £10,000       No           No           N/A
Manager
Dept Budget   Up to the N/A            N/A        N/A           No           No           N/A
Holders       value of
              their
              annual
              budget




  Finance Manual               Chapter 1 (App 6) – Page 1             Approved 20/05/10
CHAPTER 2 – FINANCIAL PLANNING

2.1   Strategic School Development Plan (SSDP)

2.2   Annual Budget Preparation and Timetable

2.3   Planning For Solvency

2.4   Planned Budget Carry-Forwards

2.5   Budget Profiling & Submission

2.6   Medium-Term Projected Funding and Budget Modelling




Finance Manual                    Chapter 2                Approved 20/05/10
CHAPTER 2 – FINANCIAL PLANNING

2.1   Strategic School Development Plan (SSDP)

2.1.1 The Headteacher is responsible for co-ordinating the production of the
      SSDP, which sets out the school‟s projected strategic educations
      intentions over a 3-year period. The school‟s priorities are identified
      through a process of collating and analysing widespread feedback from
      its stakeholders.

2.1.2 The current SSDP covers the period 2007 to 2010 academic years and
      has 8 key strands to it as follows:-

      1. Humanities College status to advance learning (learning
         opportunities, activities, technologies, community work)

      2. Maximising student attainment through quality learning
         (pedagogy, data, self-assessment, aspirations, self-esteem)

      3. Maximising achievement through learning inside and outside
         the curriculum (celebrating successes, publicising achievement,
         creating opportunities to shine)

      4. Creating an empowering learning climate through RESPECT,
         responsibility and good relationships (behaviour, discipline
         ethos)

      5. Creating the 21st Century curriculum for learning (Every Child
         Matters – be healthy, stay safe, enjoy and achieve through learning,
         contribute to community, achieve economic well being as well as
         vocational routes 14-16, ICT qualifications for all, Performing Arts at
         Key Stage 3 etc)

      6. Creating a dynamic learning environment (buildings, facilities,
         technological developments)

      7. Efficiency and effectiveness in support of learning (systems,
         policies, procedures, support staff)

      8. Leadership for learning (self-review, strategic planning, marketing,
         Continuous Professional Development, staffing structure, Investor in
         People accreditation).

2.1.3 The SSDP identifies the desired outcomes for each strand, the actions
      required, by whom, when, the success criteria, the resources required
      and the method, frequency and responsibility for monitoring progress
      against the actions.




Finance Manual                 Chapter 2 – Page 1                Approved 16/09/10
2.1.4 The resources identified within the SSDP are quantified in terms of
      their financial cost in order to aid medium-term budget planning. When
      setting the annual school budget, clear links are shown between the
      budget allocations and the SSDP.

2.1.5 The Full Governing Body is responsible for approving the SSDP, which
      must be minuted within the meeting.

2.2   Annual Budget Preparation and Timetable

2.2.1 The Business & Support Service Manager, assisted by the Finance
      Manager, is responsible for drafting the annual school budget, with a
      focus on providing the necessary resources required to deliver the
      SSDP. The principal stages and timetable for the drafting and approval
      of the annual school budget are as follows:-

      AUTUMN TERM / SPRING TERM

      Step 1 – Project Funding Levels

2.2.2 With the aid of specialised budget modelling software, the Business &
      Support Service Manager will seek to quantify the total anticipated level
      of fully delegated and earmarked funding that will be afforded to the
      school for the following year (N.B. the school receives funding in
      accordance with the LA‟s Scheme for Financing Schools”).

      http://iwest.ourcheshire.cccusers.com/OurCouncil/Resources/finance/D
      ocuments/Schools%20Finance/Regulations/Scheme%20for%20Financi
      ng%20Schools%202007-08%20FINAL.doc

      This will include estimating the likely amounts of budget to be carried-
      forward from the current financial year and determining a challenging,
      but achievable, level of income that the school could anticipate
      generating itself from adult education, music tuition, lettings and from
      other existing and new sources.

      Step 2 - Quantify Unavoidable Costs

2.2.3 Staffing and other unavoidable costs for the following year will be
      projected, allowing for known staffing changes, pay/incremental rises,
      estimated inflationary percentage rises etc. In so doing, historical costs
      will be critically challenged, with the aid of benchmarking data, to
      ensure that projected budget allocations are reasonable and justifiable.
      Departmental basic running costs are encompassed within the
      unavoidable cost category and the school is working towards
      quantifying individual departmental funding allocations through a
      formula based on Key Stage and Subject Weighted Pupil Periods.




Finance Manual                  Chapter 2 – Page 2               Approved 16/09/10
       Step 3 - Determine Anticipated Level of Uncommitted Funding
       Available

2.2.4 This step is achieved by deducting the estimated unavoidable costs
      from the projected funding.

       Step 4 – Assess Funding Priorities within SSDP and any New or
       Emerging Priorities for Potential Funding

2.2.5 With the aid of the Headteacher and the Senior Leadership Team
      (SLT), consideration will be given as to how best to utilise the
      anticipated uncommitted funding to meet the needs of the school.
      Whilst the primary focus will be on channelling necessary resources
      into delivering priorities within the SSDP, any new priorities that have
      emerged since its approval will be taken into full consideration as part
      of this process. Where options exist as to how the funding could be
      utilised, these will be fully appraised for consideration by the school‟s
      governors.

       Step 5 – Present Draft Budget to Governors‟ Finance Committee

2.2.6 The draft budget, based on anticipated funding levels, will be presented
      to the Governors‟ Finance Committee for its consideration. Feedback
      received from the Governors to the draft budget in general, and to the
      appraised options in particular, will be used by the Business & Support
      Service Manager to modify the allocations accordingly once the actual
      funding levels for the financial year are known.

       SUMMER TERM

       Step 6 – Modify Draft Budget In-Line with Actual Funding and
       Finance Governors‟ Feedback

2.2.7 Upon receipt of confirmation from the LA of the school‟s funding levels
      for the new financial year, the draft budget will be modified in-line with
      the Finance Governors‟ wishes. Dependent on the level of changes
      made, it may be necessary to go back to the Governors‟ Finance
      Committee with a revised version of the Draft Budget for its
      consideration and approval. The Chair of the Governors‟ Finance
      Committee has the power to make this decision.

       Step 7 - Formal Ratification of School Budget by Full Governing
       Body

2.2.8 The Draft Budget will be presented to the Full Governing Body for its
      consideration and approval, which will be minuted within the meeting.




Finance Manual                  Chapter 2 – Page 3                Approved 16/09/10
2.3    Planning For Solvency

2.3.1 The Governing Body, in approving the school budget, must ensure that
      allocations are based on realistic estimates of all expected expenditure
      and income, including grant income, so that planned expenditure does
      not exceed the available budget i.e. it is not within the powers of
      Governing Bodies to set deficit budgets.


2.4    Planned Budget Carry-Forwards

2.4.1 In setting the annual school budget, the Governing Body must earmark
      any budget surpluses for specific future needs to ensure that pupils
      benefit from a planned approach to spending that does not deprive
      them of resources in a given year.

2.5    Budget Profiling & Submission

2.5.1 The Business & Support Service Manager is responsible for ensuring
      that the VB1A (Original Budget Input form) is promptly completed and
      forwarded to the LA following its approval by the Full Governing Body.
      Budget allocations should be appropriately profiled to aid budget
      monitoring. Budget profiling presents the likely expenditure/income
      pattern over the year in recognition of the fact that not all of it is likely to
      be incurred on an even month basis.

2.6    Medium-Term Projected Funding and Budget Modelling

2.6.1 The Business & Support Service Manager is responsible for forecasting
      the funding that the school is likely to receive over the following 2 to 3
      years and modelling budgets accordingly in order to facilitate medium-
      term budget planning. Funding projections for future years must only
      be seen as a guide, as no guarantee can be given as to their accuracy,
      due to the complexity of the funding process and the number of
      unpredictable variables involved e.g. future pupil in-take numbers.




Finance Manual                    Chapter 2 – Page 4                  Approved 16/09/10
CHAPTER 3 – BUDGET MONITORING

3.1   Budget Monitoring

3.2   Presentation of Budget Reports

3.3   Strategic School Development Plan (SSDP) Monitoring

3.4   Budget Virements

3.5   Benchmarking




Finance Manual                   Chapter 3                  Approved 20/05/10
CHAPTER 3 – BUDGET MONITORING

3.1   Budget Monitoring

3.1.1 The Finance Manager will provide the Headteacher with copies of the
      monthly Budgetary Control Statement web reports, which are
      downloaded and exported into Excel from the IBS system, for the
      “whole-school” LMS budget (centre code 1446000) and the aggregated
      school budget “AE16306” (which incorporate total departmental
      budgets too).

3.1.2 All entries on the general transaction listings, with the exception of
      those relating to orders raised through IBS, will be reconciled to local
      records by the Finance Manager, who will initial the corresponding
      paperwork held within the school‟s accounting files. IBS-related
      expenditure transactions do not require any reconciliation in
      accordance with guidance received from the Oracle Secondary School
      Project Team.

3.1.3 Areas of potential or actual budget overspends or significant
      underspends should be highlighted to the Business & Support Service
      Manager at the earliest opportunity.

3.1.4 The Finance Manager is responsible for reconciling the monthly
      employee transaction listings to verify the accuracy of all payments
      (including travelling expenses) made to staff and supply teachers
      through the LA‟s Payroll system.

3.1.5 The Business & Support Service Manager will reconcile the Devolved
      Formula Capital, School Lunch Grant, Harnessing New Technology
      and all other Standards Fund general transaction listings to local
      records.

3.1.6 Any anomalies detected during the checking of any of the General or
      Employee Transaction Listing reports must be investigated by the
      person responsible for their reconciliation to a satisfactory conclusion.
      Any significant anomalies detected must be reported immediately to the
      Business & Support Service Manager or the Headteacher.

3.1.7 The target is to reconcile web reports within one month of their
      availability, acknowledging that there may be times during the financial
      year where this frequency is not achievable, in which case
      reconciliations may be delayed by up to one further month.

3.1.8 The fully reconciled web reports must be signed and dated by the
      person who reconciled them and then passed to the Business &
      Support Service Manager, who will inspect, countersign and date them
      before they are systematically filed.



Finance Manual                  Chapter 3 – Page 1              Approved 20/05/10
3.1.9 The Finance Manager will provide all Departmental Budget Holders
      with copies of the monthly Budgetary Control Statements and General
      Transaction Listings for the budgets they manage, together with a
      regular detailed list of current commitments for budget monitoring and
      checking purposes.

3.2   Budget Statements and Projected Budget Outturn Reports

3.2.1 The Business & Support Service Manager will complete in-year
      monitoring of all budgets to provide assurance that income and
      expenditure levels are within acceptable tolerances or to swiftly identify
      any remedial action that needs to be taken in order to rectify the
      problem. The Finance Manager will assist with this task, particularly in
      the monitoring and projection of employee-related costs. Budget
      monitoring will be done in liaison with individual budget holders, the
      Headteacher and the Governors‟ Finance Committee / Full Governing
      Body (as appropriate).

3.2.2 The Business & Support Service Manager will present budget
      monitoring reports against all budgets, on at least a Termly basis, to
      the Governors‟ Finance Committee. These reports should:-

         Provide the right level of detail for their target audience.
         Show actual and projected expenditure.
         Compare expenditure to budget and explain variances.
         Provide recommendations for consideration and approval for
          overcoming budget issues.

3.3   Strategic School Development Plan (SSDP) Monitoring

3.3.1 The Headteacher is responsible for monitoring and reporting progress
      against the 8 key strands of the SSDP at the half-termly Full Governing
      Body meetings as part of her Headteacher‟s Report.

3.4   Budget Virements (Transfers)

3.4.1 The school‟s Scheme of Financial Delegation includes the limits of
      delegated authority for sanctioning budget virements in relation to its
      delegated LMS budget. Basically, the Business & Support Service
      Manager has the power to approve virements up to £10,000, the
      Headteacher up to £20,000 and the Governors‟ Finance Committee up
      to £50,000. The Full Governing Body has unlimited powers on budget
      virements.

3.5   Benchmarking

3.5.1 Benchmarking is a systematic process for comparing performance or
      processes in different schools.




Finance Manual                  Chapter 3 – Page 2               Approved 20/05/10
3.5.2 Financial benchmarking can help Upton-By-Chester High School to
      highlight areas for further detailed investigation where it may be
      possible to achieve greater economy, efficiency or effectiveness.

3.5.3 There are a number of useful sources for benchmarking data available
      including the DfES Value for Money (VFM) website and local Bursar
      organisations.

3.5.4 The DfES VFM website, which uses Consistent Financial Reporting
      data, provides comprehensive benchmarking data, but is reliant on
      finding other similar schools to Upton-By-Chester High School in order
      to make useful comparisons.

3.5.5 The Business & Support Service Manager, assisted by the Finance
      Manager, is responsible for undertaking financial benchmarking on
      behalf of the school and for actively pursuing benefits in the areas it
      highlights for closer inspection. The outcomes of the benchmarking
      should be shared with the Governors‟ Finance Committee for its
      consideration and approval.




Finance Manual                  Chapter 3 – Page 3                Approved 20/05/10
CHAPTER 4 – PURCHASING & LEASING

4.1   Value For Money (VFM) by Market Testing

4.2   Obtaining Written Quotations

4.3   Specifications and Tenders (Purchases Over £50,000)

4.4   Requisition Processing and Order Approval

4.5   Personal Orders / Deliveries

4.6   Delivery Checking / Receipting Deliveries

4.7   Invoice Processing & Approval

4.8   Record-Keeping

4.8   Leasing

Appendix 1 – Best Value Statement




Finance Manual                       Chapter 4              Approved 20/05/10
CHAPTER 4 – PURCHASING & LEASING

4.1    Value For Money (VFM) by Market Testing

4.1.1 As the school‟s financial resources are not finite, it is imperative for it to
      achieve best value in all purchases, which are targeted at delivering its
      Strategic School Development Plan (SSDP). It is important to get best
      quality at the best price and this can often include taking ongoing costs
      into consideration in addition to initial purchase costs.

4.2    Obtaining Written Quotations

       Purchases up to £1,000

4.2.1 No competitive process is required for purchases below £1,000,
      although Budget Holders should endeavour to achieve value for money
      from even relatively low value purchases in order to make optimal use
      of their budget allocations.

       Purchases between £1,000 and £50,000

4.2.2 At least 3 competitive written quotations must be obtained for
      expenditure between £1,000 and £50,000 in value. The exceptions to
      this requirement are where the purchase is made via Cheshire
      Business Services, LA contracts, the IDEA Replacement Marketplace
      or where it can be demonstrated that proper sourcing has been
      performed by some other means. This could include making reference
      to a sensible range of suppliers‟ catalogues, referring to contracts in
      place at other schools, or having recently obtained quotes for the same
      type of expenditure item. All requisitions raised through IBS over a
      certain value, are automatically subject to scrutiny by an LA Buyer, who
      will recommend alternatives if they consider value for money would not
      be achieved through the proposed purchase. The school can take
      advantage of purchasing advice from the relevant LA Buyer on any
      intended purchases.

4.2.3 The Governing Body must be able to demonstrate, if challenged, that it
      has undertaken proper market testing and has obtained best value for
      money.

4.2.4 All quotations obtained must be compared and the reasons behind the
      decision to accept one quotation if favour of the others must be
      documented and retained for auditing purposes.

4.2.5 Where a quotation other than the lowest in financial terms is accepted,
      or it has proved impractical to obtain at least 3 quotations, the reasons
      must be reported to the Governors‟ Finance Committee and included in
      the minutes of the meeting.



Finance Manual                    Chapter 4 – Page 1                 Approved 20/05/10
4.2.6 Departmental budget holders have the authority to approve quotations
      up to the value of their annual budget allocations but, in so doing, must
      ensure they have sufficient funds available to meet their other spending
      needs without going over-budget.

4.2.7 The Headteacher has the authority to approve quotations up to
      £30,000 in value. The Finance Governors‟ Committee is responsible
      for reviewing and approving quotations between £30,000 and £50,000
      in value.

4.3   Specifications and Tenders (Purchases Over £50,000)

4.3.1 Formal tendering procedures must be followed for all purchases with
      an estimated value over £50,000. The process of tendering can either
      be done in-house or through the engaging of external Project
      Managers. Detailed contract specifications must be drawn up and
      tenders invited from suppliers who the school is reasonably satisfied
      have the technical capability and financial standing to deliver the
      contract. The LA Finance Office Business Finance Section can, on
      request, check a supplier‟s financial standing in relation to a particular
      contract requirement, if requested by the school, but at least two weeks
      should be allowed for this. Appropriate legal advice should be sought
      in good time on the form of tender and the contract conditions.

4.3.2 Within the invitation to tender pack, tenderers should be advised that
      no tender shall be received except in a sealed plain envelope, which
      shall bear the word “Tender” followed by the subject to which it relates.
      It should not bear any name or mark indicating the sender and such
      envelopes shall remain securely stored in the possession of the
      Business & Support Service Manager until the time appointed for its
      opening.

4.3.3 The tenders must be opened in the presence of a Governor and the
      Headteacher (or her deputy or other senior member of staff nominated
      by the Headteacher for that purpose).

4.3.4 All opened tenders must be numbered by the Headteacher and entered
      in an appropriate register and initialled by the Headteacher and
      Governor present at their opening.

4.3.5 Any tender that is for any reason received by the Headteacher after the
      time specified for the receipt of tenders would not be considered.

4.3.6 Tender bids must not be amended after their receipt by the
      Headteacher.

4.3.7 Only the Full Governing Body has the power to award contracts over
      £50,000, but may devolve responsibility for analysing tender bids to the
      Governors‟ Finance Committee to make justified recommendations for



Finance Manual                  Chapter 4 – Page 2               Approved 20/05/10
       its most favoured tender. The Governing Body must document the
       reasons for selecting the successful tenderer.

4.3.8 The Governing Body must ensure that a register is maintained of
      contracts entered into by the school. Also, checks must be made that
      the contractors engaged by it have full insurance cover for any claims
      made against them by a third party, arising from their contract with the
      Governing Body.

4.3.9 For all quotations (informal procurement with a value up to £50,000)
      and tenders (formal procures over £50,000), the principles included in
      the LA‟s Finance Procedure Rules and the associated Code of Practice
      on Financial Management must be followed.

4.3.10 In particular, the European Procurement rules will need to be followed
       for services and goods exceeding the European Union‟s financial
       threshold (£101,323 for Supplies & Services and £3,927,260 for Works
       as at 01/01/10). Should a situation arise where this level of contracting
       is necessary, the Business & Support Service Manager must obtain
       further advice from the LA to ensure compliance.

4.3.11 The school must not enter into any financial agreement with capital
       implications without the approval of the LA as capital expenditure
       incurred by schools counts against the Authority‟s capital expenditure
       limits.

4.3.12 The school purchases a variety of services from the LA including
       grounds maintenance, payroll, payments, income, ICT and personnel
       consultancy. In order to ensure Value For Money is being achieved
       from these services, the Governing Body, through the Governors‟
       Finance Committee will be asked to approve the cessation or
       continuation of the procurement of these services on an annual basis.
       Alternative service provision will be pursued where it is considered that
       Best Value is not being achieved, which may necessitate the
       application of formal tendering procedures.

4.4    Requisition Processing & Order Approval

4.4.1 Once a decision to purchase a particular product or service has been
      made, having gone through the process of demonstrating its value for
      money, a Purchase Requisition form must be fully completed in
      permanent ink and signed/dated by the budget holder. The completed
      requisition form should be promptly forwarded to the Finance Office.

4.4.2 The Finance Manager will check the order requisition for
      appropriateness and, if satisfied with its content, will initial and date the
      form before passing it to the Finance Assistant for processing. The
      requisition form will be returned to the budget holder, with an
      explanatory note, if it is incomplete. The Finance Manager will alert the
      Business & Support Service Manager if they have any concerns or


Finance Manual                   Chapter 4 – Page 3                Approved 20/05/10
      issues with the intended purchase/supplier or the level of expenditure
      involved compared to the funds available within the budget.

4.4.3 Due to the impracticality and cost ineffectiveness of raising a large
      number of separate orders with suppliers used regularly by the school,
      official “call-off” orders are raised via IBS for such suppliers (e.g. for
      Exam Boards). The “call-off” orders enable suppliers to submit multiple
      invoices for goods/services provided to the school throughout the
      current financial year, up to the financial limit set by the school, of
      which they have no knowledge. Once a call-off order has been raised
      in IBS, the Finance Manager formally notifies the supplier of the
      associated Purchase Order number that it needs to quote on its
      invoices and attaches a copy of the LA‟s terms of trade. The Finance
      Assistant monitors actual expenditure against the call-off orders and
      will advise the Finance Manager/Budget Holder if the balances are
      getting low to enable decisions to be made about raising their value.
      No payments can be released to the supplier against a call-off order
      without prior checking and appropriate authorisation from the school.

      IBS Procurement Orders

4.4.4 Whilst the intention is to maximise the use of ordering through the IBS
      Procurement system, Budget Holders are permitted to use alternative
      suppliers where they are able to justify to the Finance Manager or
      Business & Support Service Manager, if challenged, that best value is
      being achieved by doing so. In the event of a Budget Holder wishing to
      use an alternative supplier on a regular, rather than ad-hoc basis, the
      school should make every attempt to get it set up as an authorised
      supplier to the LA. Raising orders through IBS Procurement has the
      added benefit of showing commitments against the corresponding
      budget on financial reports generated from IBS or when making on-line
      budget enquiries. Also, the charges levied against the school for
      processing invoices for orders raised through IBS are much lower than
      they are for “Direct” Invoices (see Paragraph 4.7.4 for information
      about “Direct” invoices).

4.4.5 The Finance Assistant is responsible for raising all IBS orders on behalf
      of the school and has been assigned an appropriate IBS responsibility.
      This responsibility enables her to raise orders, but she has no authority
      to authorise them. Orders up to £25,000 can be authorised by the
      Finance Manager. Beyond this level, orders up to the value of £50,000
      can be authorised by the Business & Support Service Manager, with
      orders up to £250,000 being authorised by the Headteacher.
      Authorised orders generated through IBS Procurement are
      despatched, either electronically or via post, from the LA‟s
      Headquarters.




Finance Manual                  Chapter 4 – Page 4               Approved 20/05/10
       Manual Orders (Form M434)

4.4.6 In the event of the need to raise an ad-hoc official order with a supplier
      that is not set up to receive orders via IBS Procurement, a manual
      M434 order form should be generated by the Finance Assistant, which
      should be checked and authorised in accordance with the limits
      specified above.

       Purchase Card

4.4.7 Co-operative Bank purchase cards (P-Cards) have been issued to four
      appropriate members of the school‟s support staff being the Business &
      Support Service Manager, the Finance Manager, the Premises
      Manager and the Specialism/EiP Administrator. Each card has an
      individual transaction limit of £500 and a monthly transaction limit of
      £2,000.

4.4.8 The allocation of Purchase Cards within the school and the financial
      limits to be placed on their use are determined by the Governors‟
      Finance Committee.

4.4.9 The P-Card holders must adhere to the Purchase Card Scheme
      requirements at all times, which will be monitored by the Business &
      Support Service Manager / Finance Manager, as part of the process of
      preparing and authorising transactions for their upload, via the LA, into
      the IBS General Ledger. All transactions made by a P-Card holder
      must be reviewed and approved on-line by an appropriate independent
      member of staff (i.e. a segregation of duties applies).

4.4.10 The P-Cards are used predominantly, on behalf of budget holders, to
       take advantage of best value purchases available through the internet,
       although they can also be used to make low value purchases, which
       would be more economical than raising official orders and processing
       invoices through the creditor payments system.

       Telephone / Confirmation Orders

4.4.11 Budget holders are not permitted to raise orders by telephone
       themselves. The only exception to this rule is the Premises Manager,
       who is authorised to raise telephone orders to effect emergency
       repairs. In these circumstances, an order requisition form must be
       forwarded to the Finance Office promptly, where a confirmation order
       will be raised to ensure that the purchase is covered by the LA‟s terms
       of trade.

4.4.12 Any other budget holder needing to raise an emergency order, must do
       so through the Finance Office, where a completed requisition form can
       be handed personally to the Finance Assistant. Adequate planning by
       budget holders should minimise the need for emergency orders to be


Finance Manual                  Chapter 4 – Page 5                Approved 20/05/10
       raised and use of this facility will be monitored by the Finance
       Manager.

       Requisition Processing Performance Target

4.4.13 More often than not, the Finance Assistant will process order
       requisitions on their day of receipt, but the target is for all orders to be
       input within a maximum of 5 working days.

4.5    Personal Orders / Deliveries

4.5.1 Orders must be used only for goods and services provided to the
      school. Individuals must not use official orders to gain goods or
      services for their private use or to have goods delivered to the school
      for private purposes.

4.6    Delivery Checking / Receipting Deliveries

4.6.1 All goods delivered to the school will be received by the Premises Staff,
      who will place them in a holding area pending their distribution to the
      ordering department. New assets arriving in the school, that meet the
      specified criteria, will be checked, added to the asset register and
      security marked before their release to the department.

4.6.2 Budget holders are responsible for checking the goods delivered upon
      receipt, against their original copy requisition and the delivery note.
      Any anomalies identified during the checking process need to be
      communicated to the Finance Office, ideally on the corresponding
      delivery note. All delivery notes must be forwarded to the Finance
      Assistant. They must not be retained by budget holders.

4.6.3 Upon receipt of delivery notes relating to IBS Procurement orders, the
      Finance Assistant will receipt the goods/services received on the
      system.

4.6.4 The Finance Assistant will contact the suppliers if any problems are
      identified with deliveries in order to get them resolved. Referral will be
      made to the Finance Manager and then to the Business & Support
      Service Manager if problems are experienced in resolving the issues to
      the school‟s satisfaction.

4.6.5 Delivery notes relating to manually raised orders on Form M434, will be
      filed systematically with the corresponding copy order and requisition
      form, pending receipt of the invoice.




Finance Manual                    Chapter 4 – Page 6                 Approved 20/05/10
4.7   Invoice Processing & Approval

      IBS Order-Related Invoices

4.7.1 Suppliers are advised, within the IBS Purchase Orders they receive, to
      submit their invoices direct to the LA (Purchasing & Exchequer Service)
      for processing. Occasionally, suppliers ignore this request by
      submitting their invoices to the school instead, which are then
      forwarded to the LA by the Finance Assistant. Upon receipt of an
      invoice from one of the school‟s creditors, the Purchasing & Exchequer
      Service scan the invoice into MarkView and then send an electronic
      notification to the Finance Assistant to receipt the invoiced
      goods/services against the corresponding Purchase Order within IBS.
      The goods/services will only be receipted within IBS if the Finance
      Assistant has a signed delivery note or other formal confirmation from
      the Budget Holder that they have been satisfactorily received. In the
      event of a signed delivery note not being provided, the Finance
      Assistant will forward a scanned copy of the invoice to the Budget
      Holder asking them to sign an affixed stamp declaring that the
      goods/services have been satisfactorily received. Once the receipting
      has been completed within IBS, the LA will release the payment to the
      supplier in accordance with the agreed terms of trade.

      Other Invoices Relating To Non-IBS Generated Orders

4.7.2 Other invoices received in school relating to orders not generated
      through IBS (e.g. utility invoices and manual M434 orders) are
      commonly referred to as “Quick” and “Direct” invoices. Whilst the LA
      and school share a common goal in seeking to minimise the volumes of
      “Quick” and “Direct” invoices requiring processing it is acknowledged,
      to a certain extent, that there is an ongoing and unavoidable need for
      such facilities.

4.7.3 Where a supplier is set up, for payment purposes only, within the IBS
      system, the school is able to process invoices received from them via
      the “Quick” invoicing route. Prior to entering the invoice details into
      IBS, the Finance Assistant will ask the Budget Holder to sign the
      invoice to confirm that the goods/services have been satisfactorily
      received and will then ask the Finance Manager/Business & Support
      Service Manager to sign it to approve its payment. The payment will
      be released by the LA in accordance with the agreed terms of trade.
      Once entered into IBS, the original invoice will be systematically filed
      and retained by the Finance Assistant for the required duration for HM
      Revenue & Customs purposes.

4.7.4 In the event of an invoice being received from a supplier that is not set
      up within IBS (i.e. “Direct” invoice), then the Finance Assistant will
      forward it to the Purchasing & Exchequer Service where it will be
      scanned into Markview. Once this has happened, the Finance
      Assistant is responsible for gaining verification from the Budget Holder


Finance Manual                  Chapter 4 – Page 7               Approved 20/05/10
       as to whether the invoiced goods/services have been satisfactorily
       received (identical process as followed in Para. 4.7.1), coding the
       expenditure and then forwarding it to the Finance Manager for
       authorisation. In the event of the invoiced expenditure exceeding the
       Finance Manager‟s £25,000 authorisation limit, then the responsibility
       for authorising the invoice will pass up the approval chain firstly to the
       Business & Support Service Manage (for expenditure between £25,001
       and £50,000) and then on to the Headteacher (for expenditure up to
       £250,000). A temporary increase to the Headteacher‟s approval limit
       would need to be sanctioned by either the Chair of Governors or Chair
       of Finance to enable her to approve invoice values in excess of
       £250,000.

4.7.5 Wherever possible, payments must only be made on the basis of an
      original invoice. If, unavoidably, payment has to be made on a
      statement or photocopied invoice, great care must be taken to ensure
      that the original invoice has not been passed for payment or is in the
      system. The copy should be clearly marked “not previously passed for
      payment”.

4.8    Record-Keeping

4.8.1 The Finance Assistant is responsible for the prompt and systematic
      filing of all order requisitions / delivery notes for ease of retrieval and
      reconciling to the web report general transaction listings.

4.9    Leasing

4.9.1 In accordance with the Prudential Code for Capital Financing in Local
      Authorities, the school may only enter into operating leases and not
      finance leases. The Business & Support Service Manager must seek
      prior written confirmation from the Children Services Finance Section
      before entering any new leasing arrangement to ensure compliance
      with the Prudential Code.

Appendix 1 – Best Value Statement




Finance Manual                    Chapter 4 – Page 8                Approved 20/05/10
                                                            Chapter 4 – Appendix 1



                             Best Value Statement

Upton-By-Chester High School is committed to achieving Best Value in all
decisions made. We use the principles of Best Value as they apply to
securing continuous improvement in this school and will:-

   1. Promote fair competition through quotations and tenders to ensure that
      goods are secured in the most economic, efficient and effective way.

   2. Monitor outcomes and compare performance both internally and
      externally (with similar schools via Benchmarking);

   3. Subject LA purchased services to external competition;

   4. Regularly review the functions of the school, challenging how and why
      services are provided and setting targets and performance indicators
      for improvement;

   5. Consult appropriate stakeholders before major decisions are made
      (e.g. development of Strategic School Development Plan); and

We will strive to ensure that the school is using its resources effectively to
meet the needs of students.




Finance Manual            Chapter 4 (App 1) – Page 1           Approved 20/05/10
CHAPTER 5 – FINANCIAL CONTROLS

5.1    Documented Systems, Procedures & Responsibilities

5.2    Cover Arrangements

5.3    Segregation of Duties

5.4    Adequate Audit Trails

5.5    Alteration of Documents

5.6    Access to Accounting Records

5.7    Retention of Documents

5.8    Self-Evaluation of Internal Control Framework

5.9    Statement of Internal Controls

5.10   Internal Audit / OFSTED Inspections

5.11   “Whistleblowing” Policy (Confidential Reporting Procedure)


Appendix 1 – Statement of Internal Controls 01/04/09 – 31/08/10

Appendix 2 - “Whistleblowing” Policy




Finance Manual                      Chapter 5                  Approved 20/05/10
CHAPTER 5 – FINANCIAL CONTROLS

5.1    Documented Systems, Procedures & Responsibilities

5.1.1 The Business & Support Services Manager is responsible for ensuring
      that the school has written descriptions of all of its financial systems
      and procedures, which are kept up-to-date, approved by the
      Governors‟ Finance Committee, and all appropriate staff are trained in
      their use. The school has adopted the LA‟s “Scheme for Specific
      Financial Regulations”, which is accessible via the following link:-

       http://iwest.ourcheshire.cccusers.com/OurCouncil/Resources/finance/D
       ocuments/Schools%20Finance/Regulations/Scheme%20for%20Specifi
       c%20Financial%20Regulations.doc

5.2    Cover Arrangements

5.2.1 The Business & Support Service Manager is responsible to the
      Headteacher for ensuring that adequate financial control is maintained
      in the absence of key staff through staff training and work shadowing.

5.3    Segregation of Duties

5.3.1 Duties relating to financial administration must be distributed so that at
      least two people are involved. The work of one should act as a check
      on the work of the other and all checks should be fully documented.

5.4    Adequate Audit Trails

5.4.1 All financial transactions must be traceable from original documentation
      to accounting records and vice versa.

5.5    Alteration of Documents

5.5.1 Any alterations to original documents such as cheques, invoices and
      orders must be clearly made in ink or other permanent forms, and
      initialled. The use of correcting fluid or erasure of information on such
      documents is forbidden.

5.6    Access to Accounting Records

5.6.1 All accounting records must be securely retained when not in use, with
      access to them restricted to authorised personnel.

5.7    Retention of Documents

5.7.1 Documents must be retained for at least the periods specified under
      the local authority‟s retention of documents policy (Appendix 1 of
      Chapter 13 refers).


Finance Manual                  Chapter 5 – Page 1                Approved 16/09/10
5.8    Self-Evaluation of Internal Control Framework

5.8.1 The Headteacher is responsible for ensuring that the school‟s financial
      procedures and internal control framework, as outlined herein, are
      reviewed and updated accordingly, on at least an annual basis, through
      the Governors‟ Finance Committee.

5.9    Statement of Internal Controls

5.9.1 The Headteacher, Chair of Governors and Chair of the Governors‟
      Finance Committee are required to formulate and sign a “Statement of
      Internal Controls” for the previous financial year, which acknowledges
      their responsibility for financial management within the school and their
      confidence in the adequacy of the internal control framework for the
      period it covers. Also, it provides an opportunity to declare any
      inadequacies within the internal controls and the steps to be taken
      during the following year to address them. A copy of the school‟s
      “Statement of Internal Controls” covering the period 01/04/09 to
      31/08/10 is included in Appendix 1.

5.10   Internal Audit / OFSTED Inspections

5.10.1 Inspections of the school‟s financial management by the LA‟s Audit &
       Risk Management Section and OFSTED serve to provide assurance to
       the Governing Body as to its adequacy. Any actions for improvement
       arising from Inspections should be scheduled for implementation at the
       earliest opportunity and reported to the Governors‟ Finance Committee.

5.11   “Whistleblowing” Policy (Confidential Reporting Procedure)

5.11.1 The school has a Whistleblowing Policy, which provides a mechanism
       for anyone to share their concerns about staff and Governor conduct
       and integrity, which facilitates their investigation to a satisfactory
       conclusion. A full copy of the Upton-By-Chester High School
       Whistleblowing Policy is included in Appendix 2.


Appendix 1   Statement of Internal Controls for Period 01/04/09 to 31/08/10

Appendix 2 Whistleblowing Policy (Confidential Reporting Procedure)




Finance Manual                  Chapter 5 – Page 2               Approved 16/09/10
                                                        Chapter 5 – Appendix 1




                                                        Applying to become a
                                             Specialist Humanities College
                                      Making a key investment in sustainable futures
                                                    Headteacher: Mrs J S Holland MA




                       Statement of Internal Control

1.    This statement relates to the internal controls for Upton-By-Chester
      High School for the period from 1 April 2009 to 31 August 2010. The
      Governing Body is responsible for ensuring that the school:-

         Keeps proper accounting records during the year which will
          disclose, with reasonable accuracy and at any time, the financial
          position of the school, have been drawn up in accordance with the
          DfES‟ (CFR) guidelines, and will enable it to prepare an annual
          income and expenditure statement that complies with DCSF
          guidelines.

         Maintains and operates an effective system of internal control to
          safeguard all the resources delegated, granted or otherwise
          entrusted to the school and ensure they are used cost effectively.

2.    The system of internal control has been developed and is coordinated
      by the Headteacher. It aims to provide as much assurance as is
      reasonably possible (not absolute assurance), that assets are
      safeguarded, transactions are properly authorised and recorded and
      that material errors or irregularities are either prevented or can be
      detected promptly.

3.    Our review of the effectiveness of the systems of internal control is
      informed by:-

         Our regular scrutiny of financial and other performance monitoring
          data.

         Regular reports from the Headteacher and other managers to the
          Governing Body.

         The most recent report of the school‟s internal auditor dated 22 July
          2010, following the 3-day FMSiS reaccreditation audit, which took
          place 12 – 14 July 2010.

         Our most recent review and updating of the internal control
          framework, as outlined in the school‟s Finance Manual (last updated
          20 May 2010).


Finance Manual          Chapter 5 (App 1) – Page 1            Approved 16/09/10
                                                     Chapter 5 – Appendix 1



4.    We are, therefore, satisfied that the internal control systems in
      operation at the school during the year were adequate and effective.

By order of the Governing Body of Upton-By-Chester High School:

(Signed) ______________________                      Dated: ____________
(Headteacher)

(Signed) ______________________                      Dated: ____________
(Chair of Governing Body)

(Signed) ______________________                      Dated: ____________
(Chair of Governors‟ Finance Committee)




Finance Manual         Chapter 5 (App 1) – Page 2         Approved 16/09/10
                                                               Chapter 5 – Appendix 2



                                                               Applying to become a
                                                    Specialist Humanities College
                                             Making a key investment in sustainable futures
                                                           Headteacher: Mrs J S Holland MA




     „WHISTLEBLOWING‟ POLICY (CONFIDENTIAL REPORTING PROCEDURE)

Introduction

1.    The staff and governors of Upton-by-Chester High School seek to run all aspects of
      school business and activity with full regard for high standards of conduct and
      integrity. In the event that members of school staff, parents, governors or the
      school community at large become aware of activities which give cause for
      concern. Upton-by-Chester High School has established the following
      whistleblowing policy, or code of practice, which acts as a framework to allow
      concerns to be raised confidentially and provides for a thorough and appropriate
      investigation of the matter to bring it to a satisfactory conclusion.

2.    Throughout this policy, the term whistleblower denotes the person raising the
      concern or making the complaint. It is not meant in a derogatory sense and is
      entirely consistent with the terminology used by Lord Nolan as recommended in the
      Second Report of the Committee on Standards in Public Life: Local Spending
      Bodies published in May 1996.

3.    Upton-by-Chester High School is committed to tackling fraud and other forms of
      malpractice and treats these issues seriously. The school recognises that some
      concerns may be extremely sensitive and has, therefore, developed a system
      which allows for the confidential raising of concerns within the school environment
      but also has recourse to an external party outside the management structure of the
      school.

4.    Upton-by-Chester High School is committed to creating a climate of trust and
      openness so that a person who has a genuine concern or suspicion can raise the
      matter with full confidence that the matter will be appropriately considered and
      resolved.

5.    The provisions of this policy apply to matters of suspected fraud and impropriety
      and not matters of more general grievance which would be dealt with under the
      Upton-by-Chester High School grievance procedures.

6.    The type of activity or behaviour which Upton-by-Chester High School considers
      should be dealt with under this policy includes:

      manipulation of accounting records and finances
      inappropriate use of school assets or funds
      decision-making for personal gain
      any criminal activity
      abuse of position
      fraud and deceit
      serious breaches of school procedures which may advantage a particular party (for
      example, tampering with tender documentation, failure to register a personal
      interest).
Finance Manual             Chapter 5 (App 2) – Page 1               Approved 16/09/10
                                                                  Chapter 5 – Appendix 2

7.    Upton-by-Chester High School encourages the whistleblower to raise the matter
      internally in the first instance to allow those school staff and governors in positions
      of responsibility and authority the opportunity to right the wrong and give an
      explanation for the behaviour or activity.

8.    Upton-by-Chester High School has designated a number of individuals to
      specifically deal with such matters and the whistleblower is invited to decide which
      of those individuals would be the most appropriate person to deal with the matter.

       Position                                          Contact Details

       Headteacher                                       School
       Chair of Governors                                School
       Business and Support Service Manager              School

9.    The whistleblower may prefer to raise the matter in person, by telephone or in
      written form marked private and confidential and addressed to one of the above
      named individuals. All matters will be treated in strict confidence and anonymity will
      be respected wherever possible.

10.   Alternatively if the whistleblower considers the matter too serious or sensitive to
      raise within the internal environment of the school, the matter should be directed in
      the first instance to the CWAC‟s Audit & Risk Management Section (phone 01244
      972061) for concerns of a financial probity nature. Non-financial concerns can be
      reported to the Director of Children & Young People‟s Service (01244 977828) or to
      the Lead Human Resources Business Partner for Schools (01244 972024).

11.   The Local Authority (LA) has its own procedures for dealing with such matters and
      will ensure every effort to respect the confidentiality of the whistleblower. The LA
      will ensure relevant officers of the Department of Education and Skills are informed
      as appropriate.

12.   In addition, information and advice can be obtained from the charity Public Concern
      at Work. This charity offers free legal advice in certain circumstances to people
      concerned about serious malpractice at work. Their literature states that matters
      are handled in strict confidence and without obligation. Contact details for the
      Charity are as follows:

      Public Concern at Work
      Suite 306
      16 Baldwins Gardens
      LONDON EC1N 7RJ

      Telephone number: 0171 404 6609.

13.   The individual(s) in receipt of the information or allegation (the investigating
      officer(s) will carry out a preliminary investigation. This will seek to establish the
      facts of the matter and assess whether the concern has foundation and can be
      resolved internally. The initial assessment may identify the need to involve third
      parties to provide further information, advice or assistance, for example,
      involvement of other members of school staff, legal or personnel advisors, the
      Police, the Department for Education and Skills, the LA.

14.   Records will be kept of work undertaken and actions taken throughout the
      investigation. The investigating officer(s), possibly in conjunction with the governing
      body, will consider how best to report the findings and what corrective action needs

Finance Manual              Chapter 5 (App 2) – Page 2                Approved 16/09/10
                                                                  Chapter 5 – Appendix 2
      to be taken. This may include some form of disciplinary action or third party referral
      such as to the Police.

15.   The whistleblower will be informed of the results of the investigation and the action
      taken to address the matter. Depending on the nature of the concern or allegation
      and whether or not it has been substantiated, the matter will be reported to the
      governing body and to the LA.

16.   If the whistleblower is dissatisfied with the conduct of the investigation or resolution
      of the matter or has genuine concerns that the matter has not been handled
      appropriately, the concerns should be raised with the investigating officer(s), the
      governing body and/or directed to the LA.

17.   Wherever possible Upton-by-Chester High School seeks to respect the
      confidentiality and anonymity of the whistleblower and will as far as possible protect
      him/her from reprisals. Upton-by-Chester High School will not tolerate any attempt
      to victimise the whistleblower or attempts to present concerns being raised and will
      consider any necessary disciplinary or corrective action appropriate to the
      circumstances.

18.   Individuals are encouraged to come forward in good faith with genuine concerns
      with the knowledge they will be taken seriously. If individuals raise malicious,
      unfounded concerns or attempt to make mischief, this will also be taken seriously
      and may constitute a disciplinary offence or require some other form of penalty
      appropriate to the circumstances.

19.   Existing good practice within Upton-by-Chester High School in terms of its systems
      of internal control both financial and non-financial and the external regulatory
      environment in which the school operates ensure that cases of suspected fraud or
      impropriety rarely occur. This „whistleblowing‟ policy is provided as a reference
      document to establish a framework within which issues can be raised confidentially
      internally and if necessary outside the management structure of the school. This
      document is a public commitment that concerns are taken seriously and will be
      actioned.


             Approved by the Governing Body on 16th September 2010




Finance Manual              Chapter 5 (App 2) – Page 3                 Approved 16/09/10
CHAPTER 6 – OFFICIAL INCOME & BANKING

6.1    Official Income Sources

6.2    Charging Policy

6.3    Adult Education

6.4    Music Tuition

6.5    Lettings Procedure

6.6    Departmental Sales

6.7    Grant Income

6.8    JBill Income (Internal Invoices)

6.9    Collection & Receipt of Income

6.10   VAT

6.11   Income Preparation & Banking

6.12   Encashment of Personal Cheques

6.13   Debts Write-Off


Appendix 1 – Charging Policy

Appendix 2 – LA Schools Lettings Charges – 01/09/10 to 31/08/11




Finance Manual                       Chapter 6              Approved 16/09/10
CHAPTER 6 – OFFICIAL INCOME & BANKING

6.1    Official Income Sources

6.1.1 The school generates official income from a variety of sources
      including adult education, music tuition, examination re-sits, lettings,
      personal telephone calls, grant funding, private photocopying and
      departmental sales to pupils.

6.2    Charging Policy

6.2.1 The Business & Support Service Manager is responsible for co-
      ordinating the annual review and updating of the school‟s Charging
      Policy for the full range of activities from which it generates income.
      The updated policy is presented to the Governors‟ Finance Committee
      for its consideration and approval, the outcome of which is reflected
      within the minutes of the meeting.

6.2.2 The school‟s current charging policy is included in Appendix 1.

6.3    Adult Education

6.3.1 The school‟s facilities are used by West Cheshire College for the
      provision of Adult Education classes for two days per week during
      Term Time. Charges are levied in arrears at the end of each Term in
      accordance with the current Adult Education rates set by the Local
      Authority.

6.4    Music Tuition

6.4.1 Music is an important element in the curriculum at Upton-By-Chester
      High School and every encouragement is given to pupils in this
      respect. In addition, there is an opportunity for pupils to have extra
      music tuition through a small team of peripatetic music tutors employed
      by the school, for which subsidised fees are levied via official invoice in
      accordance with the current charging policy.

6.5    Lettings Procedure

6.5.1 Lettings of the school‟s facilities are managed by the Premises
      Manager, in accordance with a formal lettings policy which has been
      approved by the Governors‟ Finance Committee.

6.6    Departmental Sales

6.6.1 Some teaching departments generate official income through the sale
      of revision guides and materials to students.




Finance Manual                   Chapter 6 – Page 1               Approved 16/09/10
6.7   Grant Income

6.7.1 The Business & Support Service Manager is responsible for monitoring
      the school‟s receipt of grant income (e.g. School Standards Grants and
      School Development Grant funding) and ensuring its accuracy.

6.8   JBills (Internal Invoices) / 5AQ5 Forms

6.8.1 The Finance Manager is responsible for raising JBills/5AQ5 forms to
      collect income from other parts of the LA. The types of income that fall
      into this category may include recovering the costs of staff on part-time
      secondments and the provision of small scale photocopying on behalf
      of other schools using excess capacity.

6.9   Collection and Receipt of Income

6.9.1 The preferred method of collecting external income is via the Finance
      Manager raising official LA invoices through the IBS Debtors system.
      The invoices are printed and despatched at County Hall and debtors
      pay the income to it rather than to the school, which ensures a
      segregation of duties in the process and helps to minimise the security
      risks associated with having cheques and cash on the school premises.

6.9.2 Occasionally, official income will arrive through the external post in the
      form of cheques. The member of staff responsible for opening and
      distributing incoming mail is responsible for recording the receipt of any
      cheque on a purpose designed log sheet. The cheque and log sheet
      are taken direct to the Finance Office, where it is paid in and receipted
      via a (sequentially numbered) receipting machine linked to Tucasi
      “Schools Cash Office System”. The receipt is attached to the
      corresponding log sheet and systematically filed within the main school
      office.

6.9.3 Occasionally, cash income may be received direct by the Finance
      Office, where it is paid in and receipted via Tucasi. Such income
      includes private photocopying and private telephone income.

6.9.4 Whilst it is recognised that the ideal scenario would be for any income
      coming into the school to be paid in direct by the payee to Finance staff
      at Student Reception, who would receipt it immediately through Tucasi,
      this is not always practical and other staff need to be involved in the
      process. Where this happens (e.g. principally for departmental sales),
      the member of staff collecting the income would maintain a list of
      income received detailing the amounts received, from whom, the date
      of receipt and the reason and would sign the record to evidence their
      receipt of it. The member of staff would bank the income via the
      Student Reception at the earliest opportunity affixing the Tucasi receipt
      to the income collection record. All income must be held securely by
      the member of staff whilst it is in their care. The member of
      staff/department must systematically file their income collection records


Finance Manual                  Chapter 6 – Page 2               Approved 16/09/10
       for auditing purposes for the required duration as specified under the
       “Retention of Documents” policy (Appendix 1 of Chapter 13 refers).

6.10   VAT

6.10.1 The Finance Manager is responsible for ensuring VAT is correctly
       applied and processed.

6.11   Income Preparation & Banking

6.11.1 The Finance Assistant is responsible for preparing all official income for
       banking, which is done by a member of the Premises staff via the Post
       Office. The paying-in slip is stamped by the Post Office to verify the
       amount of income deposited.

6.12   Encashment of Personal Cheques

6.12.1 Personal cheques must not be encashed for individuals from any cash
       income or petty cash held by the school.

6.13   Debts Write-Off

6.13.1 The Local Authority Income Section operates an automatic debt
       reminder process to seek collection of outstanding official invoiced
       debt. Where low value debts remain outstanding, the Finance
       Manager is responsible for chasing payment via letter.

6.13.2 Delegated authority to write-off bad debts is as outlined in the school‟s
       Scheme of Financial Delegation (Appendix 4 of Chapter 1 refers).

Appendix 1 – Charging Policy

Appendix 2 – LA Schools Lettings Charges – 01/09/10 – 31/08/11




Finance Manual                   Chapter 6 – Page 3               Approved 16/09/10
                                                         Chapter 6 – Appendix 1




       Upton-By-Chester High School – Charging Policy
1.     Introduction

1.1   This charging policy has been compiled in accordance with Sections
      449-462 of the Education Act 1996, which set out the law on charging
      for school activities in schools maintained by local authorities in
      England.

2.    School Visits

      Visits To Fulfill Statutory Requirements

2.1   In the event of the school seeking to run a day trip, which is designed
      to fulfill a statutory requirement (i.e. any requirements of the national
      curriculum, religious education, or the syllabus of a prescribed public
      examination), no compulsory charges can be levied on parents
      /guardians by the school. With the exception of those meeting the
      school‟s charging remissions policy criteria (see Section 10 below),
      parents/guardians will be charged the actual cost of board and lodgings
      for any residential trip of this nature, regardless of whether the trip
      takes place inside or outside school hours.

      Other Visits (Non-Statutory Requirements)

2.2   In addition to educational visits, the school frequently runs day and
      residential trips that are outside statutory requirements. Such visits
      may take place during or outside school hours.

      DAY TRIPS

2.3   In the event of a day trip being organized where over 50% of it
      (including travelling time) will be during school hours (excluding lunch
      break), the trip will be deemed to be in school hours, which means
      that no compulsory charge can be levied for either activities or
      transport. Conversely, if over 50% of the time to be spent on the trip is
      outside school hours, then the school will charge the full cost of the
      visit, as it is deemed to be an Optional Extra activity. Participation in


Finance Manual              Chapter 6 (App 1) – Page 1           Approved 16/09/10
                                                         Chapter 6 – Appendix 1


      any optional activity will be on the basis of parental choice and a
      willingness to meet the charges.

      RESIDENTIAL TRIPS

2.4   In the event of a residential trip being organized, the criteria for
      determining whether the trip is in school time or outside school time
      (i.e. Optional Extra), will be based on the percentage of half-day school
      sessions missed compared to the total number of half-days taken up by
      the visit (including travel). If the percentage of half-day school sessions
      missed is 50% or higher, then the trip is deemed to be taking place in
      school hours. As such no compulsory charges will be levied for
      either activities or transport. Conversely, if the percentage of half-day
      school sessions missed is under 50% then it will be classed as an
      outside school hours activity, the full cost of the trip will be charged.

3.    Examination Re-Sits

3.1   A charge will be levied equivalent to the examination entry fee for
      GCSE re-sits. AS/A2 re-sits will be charged at the actual cost of exam
      entry plus a £5 administration fee per module to cover associated
      costs.

3.2   A charge will be levied where a pupil fails, without good reason (e.g.
      certifiable sickness), to complete the requirements of any public
      examination, where the school has met the cost of the entry fee.

3.3   A charge may be levied, equivalent to the cost of the late entry fee
      levied by an Examining Body, for any late examination entry that was
      not caused by the school.

3.4   A charge may be levied in respect of the examination entry fee incurred
      where the school has not prepared the pupil for the examination.

4.    Music Tuition

4.1   The school employs a small team of music tutors, who provide tuition to
      students in the playing of musical instruments. Such tuition is not part
      of the syllabus for an approved public examination, nor part of the
      National Curriculum and is provided on a one-to-one basis or to groups
      of no more than four pupils. Part of the cost of tuition is funded from
      the school‟s LMS budget, with the balance being met from parental
      contributions. The current fees are £60.00 per musical instrument per
      Term or £150.00 per annum.

5.    Lettings

5.1   The school will make its facilities available to outside users and fees
      will be charged generally in-line with the Local Authority‟s
      recommended schedule of charges, which is updated annually,


Finance Manual              Chapter 6 (App 1) – Page 2           Approved 16/09/10
                                                          Chapter 6 – Appendix 1


       although the Headteacher has discretion to negotiate variations to
       these charges to meet the school‟s needs. The recommended charges
       for the period 01/09/10 to 31/08/11 are outlined in Chapter 6 (Appendix
       2).

6.     Damage/Loss to Property

6.1    A charge will be levied in respect of wilful damage, neglect or loss of
       school property (including premises, furniture, equipment, books or
       materials), the charge to be the cost of replacement or repair, or such
       lower cost as the Headteacher may decide.

7.     Personal Photocopying

7.1    Providing resources allow, the school can provide personal
       photocopying at a charge of 10p per black & white copy and 20p per
       colour copy (A4 or A3 size).

8.     Personal Phone Calls

8.1    Generally, staff are discouraged from using the school‟s phones for
       making personal phone calls, unless for emergencies. Any personal
       calls made should be logged with the switchboard and will be charged
       based on the itemised cost (if long distance/duration) or 25p per call for
       short local calls.

9.     Voluntary Contributions

9.1    Where the school cannot levy charges, and it is not possible to run trips
       (or other activities) within the resources ordinarily available to the
       school, parents/guardians will be invited to make voluntary
       contributions. In the event of insufficient voluntary contributions being
       received, the activity is likely to be cancelled with any voluntary
       contributions received being refunded. Pupils will not be discriminated
       against on the basis of whether voluntary contributions have, or have
       not, been made on their behalf.

10.    Remissions Policy

10.1   Parents/guardians will be exempt from paying for board and lodging
       costs on residential visits that are designed to fulfill statutory
       requirements, if they are in receipt of any of the following:-

       1.     Income Support;

       2.     Income Based Jobseekers Allowance;

       3.     Support under Part VI of the Immigration and Asylum Act 1999;




Finance Manual               Chapter 6 (App 1) – Page 3           Approved 16/09/10
                                                          Chapter 6 – Appendix 1


       4.     Child Tax Credit, providing that Working Tax Credit is not also
              received and the family‟s income (as assessed by Her Majesty‟s
              Revenue & Customs) does not exceed £15,575 (Financial Year
              2008/09);

       5.     The guarantee element of State Pension Credit; or

       6.     An income related employment and support allowance that was
              introduced on 27/10/08.

10.2   In addition, no charge will be levied in respect of pupils receiving music
       tuition whose parent/guardian is in receipt of any of the above benefits.

10.3 The remissions criteria outlined above are identical to the criteria for
     Free School Meals eligibility. The school strongly encourages any
     parent/guardian, who is in receipt of such benefits, to claim their full
     entitlement. Proof of current entitlement to any of these benefits would
     need to be provided to the school in the event of a remission in charges
     being requested where the pupil is not in receipt of Free School Meals.

10.4   Any parent/guardian experiencing difficulties in meeting any charges
       should discuss the matter in confidence with Deputy Head (Pastoral).

11.    Review Of Charging Policy

11.1   The school‟s Charging Policy will be subject to regular review to ensure
       its compliance with legislative requirements and the appropriateness of
       charges being levied.




Finance Manual               Chapter 6 (App 1) – Page 4           Approved 16/09/10
                                                                    Chapter 6 – App 2

  LA Recommended Schools Lettings Charges – September 2010 to August 2011


The recommended charge for the use of school premises for community use for the
2010/11 academic year is as follows:-


                              Adult &          Community Use         Commercial Use
                            Community         (2/3 of actual cost     (Actual Cost
                          Learning Usage        of return rate)       Return Rate)
                            (£ per hour)         (£ per hour)          (£ per hour)
Secondary Schools
Hall                                 17.40                  34.80              52.20
Classroom                             8.58                  17.15              25.70
Sports Hall                          32.93                  65.85              98.80
Gymnasium                            17.00                  34.00              51.05
Changing Room                         7.40                  14.80              22.25
Subsequent Classroom                  2.10                   4.20               6.30
P.C. Suite                            8.67                  17.34              25.99
Art & Craft Studio                    8.69                  17.39              26.06
Cookery Room                          8.69                  17.39              26.06
Centre Head Office                    8.58                  17.15              25.70

On-Cost for Sunday and                1.98                   3.95               5.95
Bank Holiday Lettings


These letting charges have been designed to be used as a GUIDE when charging for
the use of School facilities.

Schools are advised to use their own discretion when deciding on the exact charges
to be levied. Please take into account local conditions and levels of charging from
similar venues.

These figures are updated annually using Government statistics.




Finance Manual                Chapter 6 (App 2) – Page 1              Approved 16/09/10
CHAPTER 7 – PAYROLL & PERSONNEL

7.1    Staff Appointment Processes

7.2    Staff Contractual Changes and Leavers

7.3    Overtime / Time-Off-In-Lieu (TOIL)

7.4    Annual Leave / Medical Appointments / Special Leave

7.5    Payroll Administration

7.6    Payroll and Personnel Documentation

7.7    Employee Transaction Web Report Reconciliations

7.8    Distribution of Payslips

7.9    Supply Cover Arrangements

7.10   Sickness Absences Reporting & Monitoring

7.11   Performance Management

7.12   Governor Appointments / Induction & Training




Finance Manual                    Chapter 7              Approved 20/05/10
CHAPTER 7 – PAYROLL & PERSONNEL

7.1   Staff Appointment Processes

7.1.1 The Personnel & Office Manager is responsible for organising
      recruitment to vacant posts in response to instructions from the
      Headteacher. The processes followed are in accordance with the
      school‟s Safe Recruitment & Vetting policy and include:-

         Preparing job descriptions and person specifications.
         Drafting and placing advertisements.
         Preparing and distributing application packs.
         Receiving applications and arranging the shortlisting of applicants.
         Inviting shortlisted candidates for interview and sending for
          references.
         Interview preparation including organising the interview room, the
          interview panel, refreshments, school tours, selection tests (as
          appropriate).
         Completing CRB, Qualification and other pre-employment checks.
         Drafting letters of appointment and written particulars of
          employment (for authorisation by the Headteacher) for successful
          applicants and notifying payroll accordingly.
         Distributing an induction pack for each new starter and preparing
          the induction programme for new Support Staff.
         Updating the school‟s computerised personnel records system and
          Single Central Record promptly to ensure that accurate staffing
          records are available at all times.

7.2   Staff Contractual Changes & Leavers

7.2.1 The Personnel & Office Manager is responsible for writing to individuals
      and notifying the Employee Service Centre of contractual staff changes
      and leavers in response to the Headteacher‟s instructions. The letters /
      contracts are prepared by the Personnel & Office Manager, but are
      signed by the Headteacher.

7.3   Overtime / Time-Off-In-Lieu (TOIL)

7.3.1 Teachers have no contractual entitlement to claim overtime payments.

7.3.2. Occasionally, members of the school‟s Support Staff (e.g. part-time
       reception staff and caretaking staff) are required to work additional
       hours, due to the need to resource the completion of ad-hoc tasks,
       abnormal peaks in workloads and covering staff absences.

7.3.3. The need for staff to work additional hours should be the exception
       rather than the rule as it would otherwise indicate that the area in
       question is under-resourced or suffering from inefficiencies. The


Finance Manual                Chapter 7 – Page 1              Approved 20/05/10
      working of extra hours needs to be carefully managed and
      appropriately authorised in advance of its occurrence, wherever
      practicable, as it has potential financial implications for the school and
      possible work life balance implications for the staff involved.

7.3.4 The Headteacher and the Business & Support Service Manager have
      the authority to sanction the working of any additional hours by any
      Support Staff, the reasons for which will be documented on their
      timesheets/TOIL record cards. The Premises Manager has the
      authority to approve overtime or the earning of TOIL by premises staff
      and the Deputy Head (Curriculum) can authorise the working of extra
      hours by the Examination & Data Officer.

7.4   Annual Leave / Medical Appointments / Special Leave

7.4.1 The Personnel & Office Manager issues cards to all members of
      Support Staff prior to the commencement of the new annual leave year
      (i.e. pre April), which indicate their current annual leave entitlement
      plus any leave carried-forward (if any), their time-off-in-lieu carried-
      forward (if any) and sections relating to health appointments and
      special/unpaid leave.

7.4.2 Support Staff wishing to take leave of any nature must complete and
      promptly submit their cards with the leave details for consideration and
      approval/rejection. Requests for annual leave, time-off-in-lieu and
      health appointments must be submitted to their line manager for
      endorsement and then to the Business & Support Service Manager for
      approval. Requests for special/unpaid leave require the approval of
      either the Headteacher or the Business & Support Service Manager
      acting under her authorisation. Prior approval for leave must be gained
      by Support Staff prior to them entering into commitments for the period
      requested.

7.4.3 The Personnel & Office Manager is responsible for maintaining central
      records of leave taken by Support Staff.

7.4.3 Teaching staff seeking leave of absence from their duties, for any
      reason, are required to request prior permission, where practicable,
      through the completion and submission of a formal “Application for
      Leave of Absence” form to the Headteacher. The Headteacher
      asseses each application received, in-line with LA guidelines, and
      determines whether or not to grant the request and if pay should be
      deducted for the absence. The member of staff is notified of the
      outcome and the Cover Manager and Personnel & Office Manager are
      informed of any staff cover and pay deduction implications of the
      decision.




Finance Manual               Chapter 7 – Page 2               Approved 20/05/10
7.5    Payroll Administration

7.5.1 The school purchases payroll services from the LA under the annual
      Schools‟ Business Support Service Agreement (SBSSA).

7.5.2 The Personnel & Office Manager and the Finance Manager are jointly
      responsible for processing pay adjustments accurately and within
      Payroll deadlines for salaried staff and payments due to casual staff
      (e.g. supply teachers, exam invigilators and midday supervision by
      teaching staff). All payments must be supported by appropriate
      paperwork to substantiate the payments processed, which must be
      authorised by the Business & Support Service Manager or the
      Headteacher.

7.5.3 All travel and subsistence payments to staff must be paid via Payroll in
      order that they are assessed for statutory deductions (Tax and NI),
      through the submission of CS74 Employee Expense claims, which
      must be signed and dated by the claimant, and then checked and
      counter-signed by a Deputy Head (or authorised line manager) and the
      Business & Support Service Manager. Expense claims are processed
      for payment on E-Forms by the Finance Manager.

7.6    Payroll and Personnel Documentation

7.6.1 Payroll and personnel records are to be held securely at all times with
      access to them restricted to authorised staff being the Headteacher,
      the Head‟s PA, the Personnel & Office Manager, the Finance Manager
      and the Business & Support Service Manager.

7.7    Employee Transaction Web Report Reconciliations

7.7.1 The Finance Manager is responsible for completing monthly
      reconciliations of the employee transaction listings (cross-reference to
      Chapter 3 – Section 3.1).

7.8    Distribution of Payslips

7.8.1 The Personnel & Office Manager and the Finance Manager are
      responsible for checking the receipt of, logging and distributing all
      incoming payslips for members of staff.

7.9    Supply Cover Arrangements

7.9.1 The Cover Manager is responsible for organising cover for absent staff,
      and is assisted in this task by the Personnel & Office Manager. The
      school employs 6 Cover Supervisors, who are line managed by the
      Cover Manager, to provide cover for short-term absences. The Cover
      Manager organises supply cover for longer-term absences and other
      absences that cannot be covered by the Cover Supervisors. All supply
      teachers record their hours of work on a timesheet, which they sign and


Finance Manual                Chapter 7 – Page 3              Approved 20/05/10
       submit to the Cover Manager, who checks and authorises them. These
       forms are used by the Personnel & Office Manager and Finance
       Manager to identify the total hours payable to the supply teachers each
       month.

7.10   Sickness Absences Reporting & Monitoring

7.10.1 Staff are required to contact the main school office by 7.45 am on the
       first working day of absence, in order that any cover requirements can
       be assessed and organised by the Cover Manager. A Part 1 “Absence
       From Work” form is completed on behalf of the absent member of staff
       by the person taking the call, which is authorised by the Headteacher.
       Staff are required to advise of their likely length of absence and notify
       the main school office in advance of their return to work, details of
       which will be passed on to the Cover Manager and their line manager.

7.10.2 Upon their return to work, the Personnel & Office Manager provides the
       member of staff with a Part 2 “Return to Work” form, which they must
       complete promptly, sign and date and return to the Personnel & Office
       Manager, who forwards them to the Headteacher for consideration and
       certification. Staff who are absent in excess of 7 calendar days must
       forward medical certificates to cover their absence.

7.10.3 The Personnel & Office Manager is responsible for maintaining staff
       sickness (and general) absence records and completing the monthly
       sickness absence returns to the Local Authority‟s Employee Service
       Centre for payroll purposes, via IBS E-Forms.

7.10.4 Line managers are required to ensure that sickness absence is
       effectively managed within their areas in-line with the “Managing
       Attendance & Absence of School Staff” policy.

7.11   Performance Management

7.11.1 A Performance Management Scheme is in place for all Support Staff,
       which runs on an annual cycle from September to August.

7.11.2 Similarly, the school has adopted the Local Authority‟s Model
       Performance Management Policy, covering Teachers and the
       Headteacher, which is based on the national RIG Model Performance
       Management Policy for Schools.

7.12   Governor Appointments / Induction & Training

7.12.1 The school has a process in place for the appointment of Parent and
       Staff Governors. All prospective Governors are given an application
       pack, which includes a list of desirable competencies sought from
       applicants. All new Governors are provided with access to a School
       Induction Pack and the opportunity to meet with the Headteacher and
       to be given a personal tour of the school. Also, the LA School


Finance Manual                Chapter 7 – Page 4              Approved 20/05/10
       Governance Team forwards a “Welcome Pack” to all new school
       Governors.

7.12.2 A matrix of financial management competencies, covering all members
       of the Governors‟ Finance Committee and the Chair of Governors, is
       maintained in order to highlight any general or specific financial training
       needs for Governors to increase their effectiveness in their role. A
       Governor Training budget is set aside within the annual school budget
       to cover the costs of providing Governors with adequate training across
       their full range of financial and non-financial responsibilities. A
       nominated member of the Governing Body has delegated responsibility
       for co-ordinating Governor training.




Finance Manual                Chapter 7 – Page 5               Approved 20/05/10
CHAPTER 8 – IMPREST ACCOUNT (& PETTY CASH)

8.1   General Imprest Account Details

8.2   Cashflow Management

8.3   Day to Day Operation of Imprest Account

8.4   Bank Reconciliations & Imprest Returns

8.5   Ad-Hoc Spot Checks

8.6   Imprest Holder / Additional Holder Changes




Finance Manual                  Chapter 8          Approved 20/05/10
CHAPTER 8 – IMPREST ACCOUNT (& PETTY CASH)

8.1   General Imprest Account Details

8.1.1 The school operates a Flexibility Imprest account, as part of its fully
      devolved LMS budget, to enable relatively minor purchases to be made
      without using the creditor payments route.

8.1.2 The Headteacher is the designated Imprest Holder and the Business &
      Support Service Manager acts as an additional Imprest Holder.

8.1.3 Monthly amounts of £1,500 are credited automatically to the school‟s
      Imprest bank account, which are then available to meet disbursements,
      either by cheque or petty cash. The level of imprest held is approved
      by the Governors‟ Finance Committee and should be equivalent to the
      school‟s general monthly Imprest expenditure.

8.2   Cashflow Management

8.2.1 The Finance Manager is responsible for managing cashflow within the
      Imprest account to ensure the reasonableness of the balance held to
      meet the school‟s imprest needs. The Imprest account must not go
      overdrawn or be allowed to accumulate funds that exceed the school‟s
      anticipated imprest requirements over the following two months. The
      Finance Manager must seek formal permission from either the
      Headteacher or the Business & Support Service Manager prior to
      arranging any temporary variation, upwards or downwards, to the
      monthly imprest advances. Temporary variations to the school‟s
      monthly imprest advances should be reported to the Governors‟
      Finance Committee, together with the reason(s) for doing so.

8.3   Day to Day Operation of Imprest Account

8.3.1 The Finance Manager is responsible for the day-to-day operation of the
      Imprest account, which must be done in accordance with the LA‟s
      Imprest Scheme.

8.3.2 As a general rule, Imprest expenditure should not exceed £60 per
      transaction. However, there are a limited number of occasions when
      using the Imprest account to meet higher levels of expenditure is more
      appropriate than seeking to use alternative payment methods e.g. for
      the payment of TV licence fees and for acquiring road fund licences for
      the school‟s minibuses.

8.3.3 The Headteacher and Business & Support Service Manager have the
      authority to sanction Imprest expenditure above the £60 general
      transaction limit. Transactions processed over £200 in value must be
      reported at the next Governors‟ Finance Committee meeting.



Finance Manual              Chapter 8 – Page 1             Approved 20/05/10
8.3.4 The Imprest account must be used only to meet official expenditure i.e.
      it cannot be used in connection with School Fund activities. Members
      of staffing wishing to make payments, or seek reimbursement for minor
      payments made by them on the school‟s behalf, must complete an
      Imprest voucher and attach appropriate supporting documentation e.g.
      VAT invoice / purchase receipts. The imprest voucher must be signed
      by the respective budget holder.

8.3.5 The Finance Manager will check, record and prepare imprest requests
      for payment at the earliest opportunity and no later than within one
      week of receipt.

8.3.6 Generally, payments out of the Imprest account will be made by
      cheque, which will be prepared by the Finance Manager and require
      the signature of either the Business & Support Service Manager or the
      Headteacher as the only authorised signatories to the account. The
      supporting expenditure documentation must be presented to the
      cheque signatory at the time of request being made to sign a cheque.
      Cheque books must be held securely at all times with access to them
      restricted to the Finance Manager, the Business & Support Service
      Manager and the Headteacher.

8.3.7 Low value imprest payments e.g. up to £25, can be reimbursed via the
      petty cash float, which the Finance Manager maintains as part of the
      Imprest account. The level of Imprest petty cash held should not
      generally exceed £100, and must be held securely at all times by the
      Finance Manager, with access to it restricted to the Finance Manager
      and the Business & Support Service Manager.

8.3.8 The transfer of cheque or cash payments from the Imprest account to
      members of staff must be signed for by the receiving person on the
      Imprest voucher.

8.3.9 Payments in respect of salaries, wages or any other employee related
      expenses must not be made out of the Imprest account, due to the
      taxable implications of such payments.

8.3.10 Personal cheques must never be cashed from the imprest petty cash
       float.

8.3.11 Unpresented cheques over six months old cannot be banked and,
       therefore, must be written back into the account.

8.3.12 Any spoilt cheques, must be clearly marked as “cancelled” and must be
       retained within the cheque book.

8.3.13 No income may be paid into the imprest account or credited to the petty
       cash float.




Finance Manual               Chapter 8 – Page 2             Approved 20/05/10
8.4   Bank Reconciliations & Imprest Returns

8.4.1 All monthly imprest bank statements are addressed to the Headteacher
      and are opened and reviewed for appropriateness by her, signed and
      dated prior to being forwarded to the Finance Manager.

8.4.2 The Finance Manager is responsible for completing monthly bank
      reconciliations, which are signed and dated by her and then forwarded
      to the Business & Support Service Manager for checking,
      countersigning and dating.

8.4.3 The Finance Manager must prepare Imprest returns for submission, on
      at least a half-termly basis, ensuring that VAT is separately identified
      where it can be re-claimed. The returns include cash and bank
      reconciliations that have been performed, and are signed and dated, by
      the Finance Manager. The completed Imprest returns are then passed
      to the Business & Support Service Manager for checking and
      certification as the Authorised Certifying Officer, prior to being
      forwarded to the Headteacher for signing as the Imprest Holder.

8.5   Ad-Hoc Spot Checks

8.5.1 The Business & Support Service Manager is responsible for completing
      ad-hoc spot checks of the balances held within the imprest account and
      the adequacy of the records being maintained. Ducumentary evidence
      of such checks should be maintained.

8.6   Imprest Holder / Additional Holder Changes

8.6.1 The Headteacher is responsible for ensuring that the Purchasing &
      Exchequer Service is promptly notified of any changes to the school‟s
      imprest account holder / additional holders.




Finance Manual               Chapter 8 – Page 3             Approved 20/05/10
CHAPTER 9 – TAX

9.1   General Tax

9.2   Value Added Tax (VAT)

9.3   Educational Visits

9.4   Construction Industry Scheme (CIS)

9.5   Income Tax




Finance Manual                Chapter 9    Approved 20/05/10
CHAPTER 9 – TAX


9.1   General Tax

9.1.1 The Headteacher is responsible for ensuring that the school complies
      with Value Added Tax (VAT), employment and other tax regulations.

9.2   Value Added Tax (VAT)

9.2.1 VAT is a tax on consumer expenditure, which is administered by
      Customs & Excise. There are three current rates of VAT in the UK,
      being 17.5% (the “standard” rate), 5% (“reduced” rate) and 0% (“zero”
      rate).

9.2.2 Due to its size and range of activities, the LA is registered for VAT
      (Registration number 945 1011 54). The LA‟s VAT liability is based on
      the difference between its output tax (i.e. VAT charged by it to its VAT
      Registered customers) and its input tax (VAT charged to it for the
      supply of goods and services).

9.2.3 The school must ensure full adherence to the VAT legislative
      requirements on all purchases it makes and its supply of goods and
      services.

9.2.4 VAT must only be re-claimed upon receipt of bona-fide VAT invoices
      from suppliers.

9.2.5 Further advice on VAT issues for schools can be obtained from the
      LA‟s VAT Guidance booklet (available from the Business & Support
      Service Manager) or from the LA‟s VAT Adviser on (01244) 972581.

9.3   Educational Visits

9.3.1 In order to be able to reclaim VAT on educational visits:-

      1. Foreign visits must not be booked with a firm who are part of the
         Tour Operators Margin Scheme, as they cannot issue VAT invoices.
         Trips within the UK can be.

      2. All bills including the deposit, relating to the visits must be paid
         through the delegated LMS budget as it is not possible to reclaim
         VAT on invoices passed through the School Fund.

      3. The visit must:

             Serve an educational purpose e.g. be part of the curriculum, or
              is linked to GCSE or A/AS level or equivalent studies.
             Not basically be of a recreational or sporting nature.


Finance Manual                Chapter 9 – Page 1             Approved 20/05/10
             Be prepared for and followed up in school.
             Pupils must be supervised by suitably qualified staff.

9.4   Construction Industry Scheme (CIS)

9.4.1 The school must make payments to contractors and subcontractors
      only in accordance with the Construction Industry Scheme (CIS). The
      Premises Manager is responsible for gaining and retaining
      documentary evidence of a potential contractor‟s / sub-contractor‟s CIS
      status prior to the award of a contract and for ensuring the school‟s
      compliance with the CIS requirements. CIS status can be verified by
      contacting the HM Revenue & Customs (HMRC), who will advise
      whether payments to the supplier should be paid net or gross.

9.4.2 Further guidance on the CIS is available in the Scheme for Financing
      Schools and from the LA Finance Office. Also, the HM Revenue &
      Customs has a specific web site on CIS, which can be accessed
      through the following address:

                     www.hmrc.gov.uk/new-cis

9.5   Income Tax

9.5.1 The school‟s Finance Manager is responsible for verifying the
      employment status of an individual prior to making payment as the
      individual might have to be paid via payroll with tax deducted at source.
      There are strict rules about payments to individuals who are self-
      employed, and this status has to be assessed on a case by case basis
      as the same individual can be classed as self-employed for one piece
      of work, but employed for another depending on certain criteria.
      Further advice should be sought from the LA‟s Employee Service
      Centre.




Finance Manual                Chapter 9 – Page 2             Approved 20/05/10
CHAPTER 10 – UNOFFICIAL SCHOOL FUNDS

10.1   School Fund – Purpose & Charitable Status

10.2   Management & Accounting Standards

10.3   Banking Arrangements

10.4   Accounting Records / Income & Expenditure Procedures

10.5   Bank Reconciliations

10.6   Ad-Hoc Spot Checks

10.7   Auditing Arrangements

10.8   Charitable Status Returns

10.9   Reports to Governors




Finance Manual                     Chapter 10          Approved 20/05/10
CHAPTER 10 – UNOFFICIAL SCHOOL FUNDS

10.1   School Fund – Purpose & Charitable Status

10.1.1 The Upton High School Fund is a voluntary (unofficial) fund, with
       charitable status, that has been established to support school activities,
       but generated by funds independent of the school‟s official resources.

10.1.2 The Headteacher and Deputy Headteachers are the ex officio
       Administrators of the Fund, with the Business & Support Service
       Manager acting in an executive capacity in its daily operation.

10.1.3 The Administrators are the trustees of all moneys received for the
       benefit of the School Fund and have the responsibility for the approval
       of all disbursements.

10.2   Management & Accounting Standards

10.2.1 Whilst the School Fund is not public money, the standards for its
       guardianship must be as rigorous as those for the administration of the
       school‟s delegated budget, as outlined throughout this Finance Manual.

10.3   Banking Arrangements

10.3.1 The School Funds are deposited with the Upton branch of Lloyds TSB
       in a School Banking Account, which attracts gross interest of 0.1%,
       regardless of the balance held. The Business & Support Service
       Manager is responsible for appraising alternative School Fund banking
       arrangements, from time to time, and making recommendations to the
       Governors‟ Finance Committee of any proposed changes to maximise
       the interest receivable.

10.3.2 There are 4 cheque signatories to the School Fund bank accounts,
       being the Headteacher, the two Deputy Headteachers and the
       Business & Support Service Manager. Two signatures are required
       per cheque. When a signatory receives a cheque for signature it must
       already contain the payee and amount, and must be accompanied by
       the supporting invoice or documentation.

10.3.3 Consideration has been given to changing the bank mandate to include
       a maximum cheque value, to minimise the risks associated with
       possible high value “rogue” cheques being paid out of the School Fund.
       As the school needs to retain the ability to issue high value cheques,
       particularly in relation to residential visits abroad (e.g. £29,000+ for Ski
       Trips), it is considered that imposing a maximum cheque value would
       not meet the school‟s operational requirements. Lloyds TSB has
       indicated that any high value cheques presented for payment against
       the School Fund (i.e. above £5,000), would be closely scrutinised for



Finance Manual                  Chapter 10 – Page 1            Approved 20/05/10
       authenticity and the school would be contacted in the event of
       concerns about their validity.

10.3.4 The School Fund cheques books must be held in the main school safe,
       when they are not in use.

10.3.5 Monthly School Fund bank statements are received which are
       addressed and opened by the Headteacher. The Headteacher
       completes a cursory check of the transactions and balances showing
       on the statements, before signing and dating them and forwarding
       them to the Finance Manager for reconciliation purposes.

10.4   Accounting Records / Income & Expenditure Procedures

10.4.1 In order to preserve the integrity of the respective funds, the accounting
       records for the School Fund are maintained totally separate to those of
       the school‟s fully devolved LMS budget.

10.4.2 The School Fund accounting year runs from September to August.

10.4.3 The Finance Manager is responsible for day-to-day operation of the
       School Fund.

10.4.4 Computerised School Fund accounting records are maintained by the
       Finance Manager, using the Tucasi “Schools Cash Office System”
       software package.

10.4.5 Access to the system is restricted by the use of users IDs and
       passwords, which give users access rights that are commensurate with
       their duties and responsibilities. The School Fund data is backed-up
       on a daily basis as part of the school‟s general backing-up
       arrangements.

       Income Transactions

10.4.6 Deposits into the School Fund are generally made direct by the payee
       to designated staff at the school‟s Student Reception at specified times
       during the normal school day. Upon the transfer, the income details
       are immediately entered into Tucasi and a sequentially pre-numbered
       receipt is generated and issued to the payee. The only exception to
       the rule is where income for departmental based sales (e.g. revision
       guide sales), is collected locally for which the collector maintains an
       official record of sales made, which must accompany the cash/cheques
       when they are paid in (in person) at Student Reception, where they are
       issued with a Tucasi receipt in return.

10.4.7 School Fund income is prepared for banking by the Finance Assistant,
       which is generally deposited at the bank by a member of the Premises
       staff on a daily basis, in order to minimise the risks associated with
       holding cheques and cash on the school premises overnight.


Finance Manual                 Chapter 10 – Page 2           Approved 20/05/10
10.4.8    All income must be held securely prior to banking.

           Expenditure Transactions

10.4.9 Payments from the School Fund will only be made by the Finance
       Office upon receipt of a fully completed School Fund Payment
       Requisition form, which must be signed by the Client Account Holder
       out of whose account the expenditure is to be met. The Payment
       Requisition form should be accompanied by appropriate supporting
       documentation e.g. invoice / receipt etc.

10.4.10 The Finance Manager will promptly process the Payment Requisition
        forms, checking the appropriateness of the expenditure, supporting
        documentation and the funds available within the client account.

10.4.11 All School Fund disbursements will be made by cheque. The
        Finance Manager will prepare the cheques for certification by two of
        the authorised cheque signatories, providing them with the supporting
        documentation. Generally, the Business & Support Service Manager
        will act as the first cheque signatory, who will initial and date the
        Payment Requisition form to authorise the expenditure.

10.4.12 Whilst cheques to external parties are usually posted by the Finance
        Manager to the payee, there are times when prepared cheques need
        to be issued via the Client Account Holder. In such circumstances,
        and when petty cash reimbursements are being made to staff, the
        member of staff must collect it in person from the Finance Manager
        and evidence the transfer in writing.

10.5     Bank Reconciliations

10.5.1 The Finance Manager is responsible for completing a full bank
       reconciliation upon receipt of the monthly bank statements. The
       completed bank reconciliations should be signed and dated by the
       Finance Manager and then passed to the Business & Support Service
       Manager who performs certain monitoring checks before
       countersigning and dating them.

10.5.2 Any anomalies detected whilst completing the bank reconciliations, or
       at any other times, must be promptly reported by the Finance Manager
       to the Business & Support Service Manager and must then be
       investigated to a satisfactory conclusion. The Headteacher must be
       informed promptly in the event of problems experienced in rectifying
       any anomalies.

10.6     Ad-hoc Spot Checks

10.6,1 The Business & Support Service Manager is responsible for completing
       ad-hoc spot checks on the School Fund accounting records and the
       balances held.


Finance Manual                  Chapter 10 – Page 3            Approved 20/05/10
10.7   Auditing Arrangements

10.7.1 The Governing Body is responsible for the appointment of a suitable,
       independent auditor for the School Fund i.e. not a governor nor a
       member of the school‟s staff so as to avoid any conflict of interest. The
       auditor need not be a qualified accountant, but should have sufficient
       financial knowledge and experience to fulfil the role competently.

10.7.2 The school‟s current auditor, who has been approved by the Governing
       Body, is James Ernest De Groot, is an ACCA qualified Accountant.
       The accounts are audited on an annual basis, following which the
       Auditor provides the school with a suitably worded Audit Certificate
       covering the period audited. The Finance Manager is responsible for
       presenting the audited accounts, comprising of an income and
       expenditure account, a balance sheet and the auditor‟s certificate to
       the Governors‟ Finance Committee for its consideration, approval and
       minuting. A copy of the annual Audit Certificate is forwarded, as
       required, to the Head of the LA‟s Audit & Risk Management Section.

10.8   Charitable Status Returns

10.8.1 The school is required to make annual returns to the Charity
       Commission by June of each year, relating to the accounts for the
       previous School Fund year. The returns are prepared by the Finance
       Manager and are then checked and authorised by the Business &
       Support Service Manager prior to their despatch.

10.9   Reports to Governors

10.9.1 The Finance Manager is responsible for producing and presenting
       interim Termly reports to the Governors‟ Finance Committee on income
       and expenditure activity and balances within the School Fund.




Finance Manual                 Chapter 10 – Page 4           Approved 20/05/10
CHAPTER 11 – ASSET MANAGEMENT

11.1   Asset Register Responsibility Format & Content

11.2   Asset Security Marking & Holding Assets Securely

11.3   Updating Register for Acquisitions

11.4   Off-Site Copy

11.5   Annual Independent Checking of Assets

11.6   Asset Loans & Insurance Implications

11.7   Reporting Losses

11.8   Disposal of Assets

11.9   Asset Management Plan

11.10 Consumable Stock Checks




Finance Manual                  Chapter 11                Approved 16/09/10
CHAPTER 11 – ASSET MANAGEMENT

11.1   Asset Register Responsibility Format & Content

11.1.1 The Premises Manager is responsible for maintaining an accurate, up-
       to-date, computerised whole-school asset register (“Asset Guard”),
       which records all items of a portable, attractive and valuable nature e.g.
       ICT equipment, cameras, DVD players, mobile phones, general
       electrical items, vehicles etc.

11.1.2 In addition to other data, the asset register holds the following key
       details on individual assets:-

          Date of acquisition
          Serial number (if applicable)
          Description of item
          Location
          Source of funding (i.e. revenue, capital or leasing)
          Cost / estimated replacement value
          Date of last independent check
          Date / reason / method / authorisation for disposal


11.2   Asset Security Marking & Holding Assets Securely

11.2.1 All of the schools assets that are recorded within its asset register,
       have a highly visible tamper-resistant security label affixed to them,
       which clearly shows that they are the property of “Upton-By-Chester
       High School”, in order to deter potential thieves. The labels include
       unique bar codes to aid the tracking of assets within the school.

11.2.2 All assets such as cameras, mobile phones, camcorders etc., should
       be kept securely locked away when not in use.

11.3   Updating Register for Acquisitions

11.3.1 Upon their arrival at the school, the Premises staff place all newly
       acquired assets into a holding area, where they are checked, added to
       the asset register and security marked, prior to being despatched to the
       ordering department.

11.4   Off-Site Copy

11.4.1 The asset register is backed-up routinely as part of the school‟s daily
       backing-up of its computerised Admin system. Daily back-up disks are
       held in a locked fire-proof cabinet and the latest weekly back-up disk is
       held off-site, to ensure that an up-to-date version of it can be recovered
       in the event of a disaster arising.


Finance Manual               Chapter 11 – Page 1              Approved 16/09/10
11.5   Annual Independent Checking of Assets

11.5.1 The Premises Manager is responsible for ensuring that an independent
       check of the school‟s assets takes place annually, utilising the Cover
       Supervisors/Technicians and other staff, in order to confirm the
       accuracy of the asset register and that all assets are present and
       correct. Those staff responsible for undertaking this task will be
       provided with an up-to-date extract from the asset register for the area
       (department) of the school they are checking, onto which will be
       inserted additional columns for recording by whom and when the check
       was completed and any relevant comments.

11.5.2 Any discrepancies discovered during the check should be recorded in
       writing with supporting explanations and fully investigated.

11.6   Asset Loans & Insurance Implications

11.6.1 No assets belonging to the school should be removed from the
       premises except in the course of school business and no items can be
       used for purposes other than school business without specific written
       permission from the Governing Body.

11.6.2 The Premise Manager is responsible for maintaining a loans log book
       to record the loaning of items to members of staff. Full details of what
       items are being borrowed, when, why and by whom are recorded within
       the log book. Upon taking possession of the item, the person
       borrowing it must sign the log book, which must be independently
       countersigned by the Premises Manager, the Personnel & Office
       Manager, the Business & Support Service Manager, a Deputy
       Headteacher or the Headteacher.

11.6.3 Upon its return, the item borrowed must be checked and independently
       signed back into the school within the log book by one of the above-
       mentioned post holders.

11.6.4 All authorised loans of equipment to members of staff are covered
       under the EARS insurance policy, but must be held securely at all
       times.

11.7   Reporting Losses

11.7.1 Any loss of an asset must be reported immediately to either the
       Business & Support Service Manager or to the Headteacher and the
       circumstances leading up to the loss need to be investigated and
       recorded.

11.7.2 Following an initial investigation, if the asset has not been located and
       its theft is suspected, advice will be sought from Service Improvement
       & Audit, as to whether the incident should be reported to the Police.


Finance Manual               Chapter 11 – Page 2             Approved 16/09/10
11.7.3 A loss report form must be promptly completed, with a copy of it being
       forwarded to the Head of Audit & Risk Management.

11.7.4 The asset register must be promptly updated to record the item‟s loss.

11.8   Disposal of Assets

11.8.1 Whenever a need to dispose of an asset is identified, whether or not
       the item has a residual value, advance permission needs to be sought
       from an authorised officer through the completion of a “Disposal of
       Assets” form TM274, which should be forwarded promptly to the
       Business & Support Service Manager.

11.8.2 The Business & Support Service Manager has the authority to
       authorise the disposal of assets up to £100 in value, above which the
       following rules apply:-

             Headteacher                          Up to £1,000
             Governors‟ Finance Committee         £5,000
             Full Governing Body                  unlimited

11.8.3 The school‟s asset register must be promptly updated with the salient
       disposal details (i.e. date / reason / method and authorisation for
       disposal). The method of disposal should be appropriate for the asset
       type e.g. all ICT equipment must be disposed of in accordance with
       WEEE regulations. In the case of PCs, prior to their disposal, there is a
       need to ensure compliance with the Data Protection Act 1984, by
       erasing all personal data from the hard disk. (Note that merely deleting
       files may not physically remove the data, which could be restored using
       specialised products). Any software products, for which licences are
       maintained in-house, are to be removed from the equipment prior to
       disposal.

11.8.4 Assets requiring disposal that have a residual value, will be offered for
       sale via a method, to be determined by the Headteacher (in
       consultation with Service Improvement & Audit where appropriate), that
       is commensurate with their estimated sale value e.g. ranging from a
       simple agreement of price with the purchaser for low value sales to
       formal tendering procedures for high value disposals.

11.9   Asset Management Replacement Programme

11.9.1 The Premises Manager is responsible for devising an asset
       management replacement programme, utilising the tools available
       within the “Asset Guard” software.




Finance Manual              Chapter 11 – Page 3             Approved 16/09/10
11.10 Consumable Stock Checks

11.10.1 Stocks of consumables must be maintained at appropriate levels and
        subject to a physical check at least once per annum. Allowing stock
        levels to fall too low may cause operational difficulties if required
        quantities of consumables are unavailable. Holding excessive stock
        levels may result in too much funding being tied up in stock, which
        may become obsolete or perish. Budget Holders are responsible for
        ensuring that all stocks are held at appropriate levels and for the
        completion of the physical checks. Stocks of consumables must be
        held securely at all times with access to them sufficiently restricted. In
        the event of concerns arising about supplies of stocks abnormally
        diminishing without just cause, the individual must report it
        immediately to the Business & Support Service Manager.




Finance Manual               Chapter 11 – Page 4              Approved 16/09/10
CHAPTER 12 – INSURANCE AND RISK MANAGMENT

12.1   Corporate Insurance Policies

12.2   Risk Management / Risk Register

12.3   School Determined Insurance Policies

12.4   Indemnity to Third Parties

12.5   Activities Requiring Insurance By An External Person/Organisation

12.6   Notification of Losses




Finance Manual                      Chapter 12           Approved 20/05/10
CHAPTER 12 – INSURANCE AND RISK MANAGMENT

12.1   Corporate Insurance Policies

12.1.1 The school buildings are covered under the LA‟s corporate insurance
       policy, which covers all eligible schools for material damage caused by
       fire, storms, lightning strike, explosion and impact by aircraft or motor
       vehicles. Material damage due to vandalism, burst pipes, subsidence,
       poorly maintained roofs and blocked drains.

12.1.2 Other corporate insurance policies covering the school include:-

          Money Policy
          Fidelity Guarantee
          Employer‟ Liability (bought-back)
          Public/Products Liability (bought-back)
          Officers‟ Indemnity
          Governors‟ Liability & Professional Indemnity
          Libel and Slander (excluding via e-mail)
          Personal Accident (assault on staff)
          Property Material Damage

12.1.3 Further details about these corporate policies can be found via the
       following weblink:-

              http://www.cccnet/Services/policyperform/insurance.doc.htm

12.2   Risk Management / Risk Register

12.2.1 Whilst the corporate policies highlighted in Section 12.1 above provide
       reasonable protection to the school against potential risks in the areas
       they cover, the Governing Body must consider whether or not to insure
       risks not covered by the Local Authority. Risks need to be identified
       before any judgement can be made as to whether to insure against
       them. The Headteacher is responsible for ensuring that risk
       management is carried out at both an operational and strategic level.
       This will entail:-

          Identifying risks, both negative and positive, in relation to the
           objectives of the school.
          Scoring the risks in terms of their likelihood and impact, both gross
           (pre controls) and net (with existing controls).
          Determine how to treat the risk i.e. avoid, mitigate, transfer or
           consciously accept the risk.
          Monitor the actions and regular basis.

12.2.2 The Headteacher is responsible for developing and maintaining a risk
       register, which will be reviewed and updated on at least an annual


Finance Manual              Chapter 12 – Page 1                Approved 20/05/10
       basis. New risks should be identified, scored and assessed for
       treatment as and when they arise rather than awaiting the annual
       review.

12.2.3 The results of the annual review of risks and their intended treatment
       will be reported to the Full Governing Body for its consideration and
       approval.

12.3   School Determined Insurance Policies

12.3.1 In addition to the corporate insurance policies, the school currently
       purchases the following insurance cover:-

          Education All Risks (EARS) scheme, which is purchased from the
           Local Authority and provides contents insurance
          ICT equipment insurance, which is purchased via the Local
           Authority
          Motor vehicle insurance for the school‟s two minibuses
          School visits insurance for individual visits from Zurich Municipal /
           Tour Operators

12.4   Indemnity to Third Parties

12.4.1 No indemnity may be given to a third party without the written consent
       of the school‟s insurers, the Local Authority, or other agents as
       appropriate.

12.5   Activities Requiring Insurance By An External
       Person/Organisation

12.5.1 For certain activities that take place, the Premises Manager is
       responsible for ensuring that adequate insurance is held by the
       external person/organisation. This includes:-

          Volunteers providing transport for events/trips organised by the
           school must hold adequate insurance for this purpose;

          Organisations hiring the school premises will, as part of their hire
           agreement, need to demonstrate that they have adequate liability
           insurance; and

          Individuals/organisations holding on-site training must hold
           adequate liability insurance.

12.6   Notification of Losses

12.6.1 All staff must promptly notify the Business & Support Service Manager
       of any accidents, losses and other incidents that may give rise to an
       insurance claim in order that the relevant insurers can be notified.



Finance Manual               Chapter 12 – Page 2               Approved 20/05/10
12.6.2 With effect from 26/04/99, Civil Litigation in England and Wales has
       been altered substantially as a result of the “Access to Justice” report
       by Lord Woolfe, which seeks to make the legal system more
       accessible, equitable and cost effective.

12.6.3 The Local Authority‟s insurers have a period of 3 months, from the date
       of acknowledgement of receiving a claim, to investigate it and make a
       decision on liability. Therefore, it is of paramount importance to ensure
       that the school provides its insurers promptly with any requested
       information to enable them to complete their investigation thoroughly
       within the statutory timescale.




Finance Manual              Chapter 12 – Page 3               Approved 20/05/10
CHAPTER 13 – SECURITY

13.1   Access to Safes

13.2   Personal Security

13.3   Financial & Personnel Records

13.4   Retention of Records

13.5   Data Protection Act 1998 Registration

13.6   Computer Passwords

13.7   Computer Back-Ups

13.8   Financial Systems Disaster Recovery Plan


Appendix 1 – Retention of Documents




Finance Manual                   Chapter 13       Approved 20/05/10
CHAPTER 13 – SECURITY


13.1   Access to Safes

13.1.1 Access to the main school safe is restricted to the Business & Support
       Service Manager and to the Finance Manager, which requires an
       electronic entry code. The School Shop Receptionist has control of a
       smaller safe, which is protected by a PIN code. There are other
       lockable fire-proof cabinets located around the school that can be used
       to hold other smaller valuables (e.g. confiscated pupil mobile phones
       awaiting parental collection), and access to these is restricted to a
       maximum of two authorised members of staff

13.1.2 The safes and lockable fire-proof cabinets must be kept locked when
       not in use. The keys to be cabinets must be held securely, normally on
       the person of the key holders, and never where they may be accessed
       by any other person.

13.1.3 Income is banked on a daily basis to minimise the risk of holding it on
       the premises. Income awaiting banking must be held securely.

13.1.4 Current and new cheque books must be stored within the safe when
       they are not in use, together with the School Shop cash tin and Imprest
       petty cash tin.

13.2   Personal Security

13.2.1 As a general rule, working in the school does not pose a personal
       security threat as regards violent theft. However, there are times at the
       start and end of the day and especially during school holiday periods
       when limited numbers of staff are on duty and the risks to personal
       security may be higher. In order to minimise the risks to staff at these
       times, entry to the school through the main entrance is controlled via an
       intercom system, which is operated by the Main School Office staff.
       Additionally, security is provided through the use of a keypad control
       system, which restricts access from the reception area to other parts of
       “A” Block. Staff working in isolation during school holidays, are
       instructed to carry a school two-way radio as a method of summoning
       assistance if needed. All visitors to the school must sign in at the main
       school reception and are given a Visitor Security pass.

13.2.2 The Premises staff seek to control access to the school buildings from
       other directions by locking doors and gates, where this would not cause
       operational problems or pose problems to staff in evacuating the
       premises in the event of an emergency.

13.2.3 The Premises staff, who may be working alone when opening or
       locking the school premises, are provided with a school mobile phone


Finance Manual              Chapter 13 – Page 1              Approved 20/05/10
       so that they can summon assistance or be contacted in the event of it
       being required.

13.3   Financial & Personnel Records

13.3.1 All financial and personnel records should be locked away when not in
       use.

13.4   Retention of Records

13.4.1 The Business & Support Service Manager is responsible for ensuring
       that key financial, supplies-related, employee-related and general
       documents are retained and appropriately stored to aid their ease of
       retrieval for their required duration as outlined in Appendix 1.

13.5   Data Protection Act 1998 Registration

13.5.1 As the school holds both electronic and manual records containing
       personal information, the Headteacher must ensure that the school
       registers under the Data Protection Act 1998 and complies fully with
       the legislative requirements.

13.6   Computer Passwords

13.6.1 The ICT Network Manager (Admin) is responsible for ensuring that
       users are prompted to update their computer passwords on a regular
       basis and are granted user rights that are commensurate with their
       level of responsibility.

13.6.2 Users must not disclose their passwords to anyone else or sign on
       colleagues to allow them access to systems or processes to which they
       do not have access in their own right.

13.7   Computer Back-Ups

13.7.1 The school has a combined curriculum/administration network. The
       ICT Network Manager (Curriculum) is responsible for ensuring that the
       network is backed-up on a daily, weekly and monthly basis, with the
       back-ups being held securely and recovery from back-ups being
       satisfactorily tested. Relatively up-to-date copies of the back-up discs
       should be held off-site in case of a disaster arising at the school.

13.8   Financial Systems Disaster Recovery Plan

13.8.1 The ICT Network Manager (Admin) is responsible for devising, and
       testing, a disaster recover plan that enables the school‟s computerised
       financial systems and data to be recovered swiftly in the event of a
       disaster occurring. The Business & Support Service Manager is
       responsible for identifying effective manual workarounds that would be



Finance Manual              Chapter 13 – Page 2              Approved 20/05/10
      implemented following a disaster until the computerised financial
      systems and data are successfully restored.

Appendix 1 - Retention of Documents




Finance Manual             Chapter 13 – Page 3             Approved 20/05/10
                                                       Chapter 13 – Appendix 1



RETENTION OF DOCUMENTS


No.                  Type of Document                     Retention Period

1     Financial Documents

1.1   Bank Paying-In Books                             Current year and
1.2   Receipt Books                                    previous 6 years
1.3   Computer Print-Outs
1.4   Bank Statements & Cash Books
1.5   Ledgers & Collection Records                     Indefinitely
1.6   Till Rolls                                       Current year and
1.7   Invoices                                         previous 6 years
1.8   School Fund Records
1.9   Contract Documentation (Including Quotations)    Duration of contract
                                                       (including guarantee
                                                       period) plus 6 years

2     Supplies-Related Documents

2.1   Copy Orders (Paid)                               Six years after payment
2.2   Copy Orders (Unpaid)                             Until paid and for 6
                                                       years after payment
2.3   Copy Sales Notes                                 Current year and
2.4   Delivery Notes                                   previous 6 years

3     Employee-Related Documents

3.1   Letter of Appointment & Resignation              Indefinitely
3.2   Salary Sheets                                    Current year and
                                                       previous 6 years

4     General Documents

4.1   Minutes and Agenda for Governing Body and its    Indefinitely
      Committees
4.2   Asset Register                                   Indefinitely
4.3   Attendance Registers                             Until pupils are over 25
                                                       years of age
4.4   Admissions Registers                             Indefinitely
4.5   Register of Pecuniary Interests                  Indefinitely




Finance Manual           Chapter 13 (App 1) – Page 1        Approved 20/05/10

				
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