Finance Policy Lindfield Primary School

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					LINDFIELD PRIMARY SCHOOL


     FINANCE POLICY
          v2.2




        January 2009
                                   Lindfield Primary School Finance Policy



                                                                                                             Table of Contents

Table of Contents ...................................................................................................................... 2
Introduction .............................................................................................................................. 3
Delegation................................................................................................................................. 3
Business Ethics .......................................................................................................................... 3
Budgets .................................................................................................................................... 4
Budget Timetable ...................................................................................................................... 4
Accumulating Fund .................................................................................................................... 5
Internal Financial Control ........................................................................................................... 5
Insurance .................................................................................................................................. 5
Computer Services ..................................................................................................................... 6
Personnel .................................................................................................................................. 7
Security of Stocks and other Property.......................................................................................... 7
Purchasing and Income .............................................................................................................. 7
  Order Procedure ..................................................................................................................... 7
  Income Procedure .................................................................................................................. 8
Charging Policy .......................................................................................................................... 8
Banking Arrangements ............................................................................................................... 9
Petty Cash................................................................................................................................. 9
Voluntary/School Funds .............................................................................................................. 9
Lettings Policy ......................................................................................................................... 10
Best Value ............................................................................................................................... 11
Interpretation .......................................................................................................................... 11
Signature Sheet ....................................................................................................................... 12




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Introduction

This finance policy sets out the internal framework and procedures for financial administration within
Lindfield Primary School and must be adhered to at all times.

This policy must be formally reviewed and adopted by the Governing Body each year and minuted. A
signature sheet is held on file in the school office to confirm that both the Governing Body and the
appropriate staff are fully aware of the policy.


Delegation
The Governing Body and the headteacher have a joint responsibility to monitor and control the
budget and the Bursar assists the Headteacher in this task. The Governing Body has a Resources
Committee who will advise on school finances, sets a preliminary budget and monitor the budget once
it has been approved by the Governing Body.

The Governing Body has delegated authority to the Resources Committee to implement the process of
monitoring and controlling the budget. This involves: preparing a budget plan for the next financial
year, monitoring the expenditure and income from the school's budget throughout the year, being
fully aware of all financial processes, banking arrangements, petty cash, purchases and income,
ensuring the school has sufficient insurance, inventories, charging policies and Data Protection. The
Headteacher is also responsible for all Personnel matters including regular reports from the Bursar
and various financial checks on all such matters.

The Governing Body and the Headteacher have authorised the Bursar to assist in preparation of the
budget and monitor all transactions during the financial year, preparing a report to the Governing
Body for each meeting, and reporting regularly to the Headteacher and chair of the Resources
Committee. They will be in charge of petty cash, banking arrangements, preparation of orders,
payment of invoices, receipt of income, Personnel and Pupil records.


Business Ethics
All Governors, and any staff responsible for incurring expenditure must submit details of all their
business interests, such as directorships, share holdings and other appointments with any business or
organisation, which may have dealings with the school. The details must include interests of relatives
or other individuals who maybe in a position to exert influence. Nil returns are required.

There is a responsibility on the individual to notify the school when any changes occur to their
business interests. In addition, annually, the school and Governing Body should seek confirmation that
the information is up to date. The Governing Body has established a Register of Pecuniary Interests,
which is to been signed by all members of staff and the Governing Body.

The Headteacher is responsible to the Governing Body for ensuring that LA financial regulations are
implemented.




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Budgets
Both the Headteacher and Governing Body are responsible for developing and carrying out a School
Development Plan, identifying the aim and means of achieving them have due regard to the likely
available resources.

The Resources Committee shall prepare a budget in the format required by the LA Director of
Finance. The annual budget plan is prepared to ascertain what part of the school development plan
can be met from the available financial resources provided by the school budget-allocation. The
school development plan is a key input that is required before the budget can be defined and
presented to the Governing Body. There will be termly reviews that ensure that the key priorities that
have been agreed during the budget planning process are supported by the financial allocation.

In order to ensure that income received and the expenditure incurred within the various budget
headings do not exceed in aggregate the total budget allocation, a system of budgetary control has
been established, this is a continuous process of monitoring and amending the original plan as
necessary. The Primary School has a School Improvement Plan which includes matters financial so the
process for future change, expenditure etc. can be foreseen alongside the changes in all other areas
of the school‟s development.


Budget Timetable
October to January        Start planning budget strategy, using historical data / school development
                          plan/salary projections, etc., and consider outline budgets using SIMS. The
                          Headteacher will also ensure that each budget heading has a suitable profile
                          attached to it (i.e. planned yearly spending plan). The Bursar will open the
                          books in preparation for the next year‟s budget figures.

January                   Complete PLASC figures. Bursar prepares PLASC electronically from
                          information held on the Student and Personnel databases. Headteacher then
                          checks and signs.

                          Assess impact of PLASC data on budget

                          Review Budget structure following January Pupil intake numbers

February                  Formal notification of total budget allocation. Adjust, if necessary, original
                          outline budgets.

March                     Governing Body to agree detailed budget figures.

                          Confirm budget figures on SIMS.

                          Identify any claw back issues

                          Assess closing budget balance and adjust original outline budgets.

                          Forward agreed budget figures to LEA.


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April                      Commence budget monitoring.

                           Headteacher and Bursar conducting weekly check and report of current status.
                           The Governing Body by receiving regular reports from the Bursar, computer
                           printouts of budget account status, notification of virements of funds.

June / July                The Bursar will liaise with County Hall to close the last year‟s financial books.

September                  Review Budget structure following September Pupil intake numbers confirmed.

                           Review impact of Early Year pupil deferments.



Accumulating Fund
The Resources Committee will monitor the current balance of the accumulating fund on a termly
basis. A full meeting of the Resources Committee must approve any withdrawal from the fund and the
chair will complete a letter authorising withdrawal. A deposit into the fund can be authorised by the
Headteacher and reported at the next meeting of the Resources Committee.

Internal Financial Control
The Governing Body has authorised the Headteacher and Bursar to be responsible for internal
financial control and only these named staff are permitted access to the accounting records. Where
possible all procedures will be shared between these three members of staff, having the basic effect
of checking continuously that these are being carried out satisfactorily. The following sections
describe individual financial procedures and which member of staff is responsible for its
implementation including signatories and counter-signatories. These members of staff are trained in
all aspects and able to continue with all financial systems should the other member of staff be absent
from work. All financial records will be kept for the current year and the preceding three years.

An office diary has been established to assist with the financial monitoring of the School Budget. This
will cover the anticipated future timetable of financial routines and then include the actual calendar of
events as they arise during the year.

In the absence of the Headteacher to attend Headteacher's meetings/conferences/courses etc, t is
agreed that the Bursar is authorised to use their initiative and deal with certain day-to-day issues that
may arise in order to maintain the continuous smooth running of the schools financial affairs. The
Headteacher on his return will deal with any major or important decisions.


Insurance
Areas covered for Governors, staff and approved volunteers by the LEA:

a)       Fire and other damage (Buildings, Contents and Personal Effects)
b)       Employers' Liability (Protection against claims arising from injury or disease arising out of or
         in the course of their employment).



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c)       Third Party (Public Liability) Insurance for Governors, Staff and approved volunteers Maximum
         - £20,000,000
                           Covers:     Accidental bodily injury to any person.
                                       Accidental loss or damage caused to property.
d)       Officials' Indemnity - £5,000,000. Claims not involving injury etc., such as a hire of a hall.
e)       Libel and Slander
f)       Personal Accident
g)       Off-Site Activities - arranged individually by the Bursar through County
h)       Money -£350 on site in locked safe -£500 in a fixed locked safe - Max £25,000 transport to
bank
i)       Fidelity Guarantee - fraud or dishonesty, staff or Governors - £500,000.
j)       Specialist Equipment - AV, Photographic, Computer, Scientific, Fax, office equipment
k)       Work Experience


Lindfield Primary School has taken out the following additional optional insurance:

                             Buildings and Contents (Balance of Risks)

All staff must ensure that their own insurance company must cover their own private cars for business
use. Parents using their private cars must be covered by their own insurance and need to show a
certificate of motor insurance to the Headteacher.

Pupils are entitled to Personal Accident insurance, which can be arranged for them through County
Hall by the Bursar.

Insurance cover for Staff Sickness is arranged through County Hall and Governors chose to pay
additional insurance to cover Caretaker and Bursar. All incidents and accidents will be reported to the
Insurance Company.

The Headteacher will ensure sufficient insurance is provided.


Computer Services
The school is registered under the Data Protection Act 1984. The Headteacher will ensure effective
backup procedures are followed. The Bursar will normally do these. Disks/tapes will be kept in a
fireproof location. Only the Headteacher and Bursar are authorised to access the computer. Access is
made by an individual ID password, which will not be disclosed, to any other person except the
identified users above. The ID password will be changed regularly.

Only authorised software will be used in order to prevent viruses.

The School ICT co-ordinator and IT technician are responsible for regularly monitoring software that
is installed on the Schools PCs. All software must be licensed whether from a central source at the
LEA or by copies held on the schools premises. A database of installed software is to be maintained
by the ICT co-ordinator, IT technician or the Bursar indicating where the licences are held.




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Personnel
The Governing Body and the Headteacher are responsible for ensuring that payments are made only
to bona-fide employees according to the individual's conditions of employment and that all
deductions, income tax etc., are properly administered and amendments to the payroll made
promptly. The Governing Body and the Headteacher are responsible for the process of appointments,
terminations and promotions.

The school retains personnel records on the SIMs computer protected in accordance with the Data
Protection Act 1984. All payroll transactions are processed through an overnight transfer from the
LEA, which are reconciled by the Bursar, within our own school personnel files. The Headteacher is to
receive monthly reports.


Security of Stocks and other Property
The Headteacher is responsible to the Governing Body for the safe custody and control of cash and
other property belonging to the school. The Headteacher will maintain stocks and carry out regular
checks. An inventory of videos, cameras, TV, etc. will be kept securely on site and up to date. All
items will be security marked where possible.

The Headteacher will check or have the inventories checked yearly, will pursue discrepancies and
report any over the sum of £200 to the Resources Committee.

If computers, musical instruments are taken off site, they will be signed for and noted in a register
accordingly. The Governing Body will be contacted to authorise disposals and write off of surplus
stock and equipment. Key holders should carry the relevant keys with them and report any loss to the
Headteacher.


Purchasing and Income
In order to ensure the school obtains value for money the Governing Body has agreed a maximum
expenditure of £5,000 on any one purchase. Should the cost be likely to be greater than £5,000, the
headteacher will obtain quotations. In line with best practice, it is recommended that at least three
quotations be obtained. Where it is not possible to obtain three quotations or WSCC have already
selected a preferred provider, then it is acceptable to proceed with fewer/one quotation(s). The
headteacher will review these quotations, place the order and report back to the Resources
Committee and provide an explanation should the accepted quote not be the lowest at the next
scheduled meeting.

For purchases that are not in direct support of education or are not included in the school
development plan, authority must be obtained from the Resources Committee at a scheduled
meeting.


Order Procedure
The Headteacher is responsible for all orders raised who will then instruct the Bursar to draw up an
official numbered order form. (A copy of which will be kept on file at school). The Headteacher checks
these are correct, that they are needed and can be afforded and then signs them.


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The Headteacher/Deputy Headteacher or the Bursar on delivery of the order will check the items
correct as per delivery note and original order. The delivery note will be marked "Goods received",
dated and signed. This will be kept to await relevant invoice.

When the invoice arrives, this will be checked with the delivery note and order. An entry will be made
on the computer noting VAT, discounts etc and then the Bursar will raise a cheque and signed by the
Headteacher, who will also sign the payment authorisation slip. The Invoice will be stamped “Passed
For Payment” and dated by the Headteacher.

All cheques will be crossed a/c payee and will under no circumstances be pre-signed.

Individuals will not be allowed to use official orders to obtain goods and services for their private use.

At least two people must be involved in the process to provide a separation of responsibilities.

Income Procedure
Income, all monies received by the school (mainly money for swimming lessons and the occasional
donation for specific purchase), will be paid into the bank using the paying-in book provided. They
will then be entered on to the computer.

The Bursar will sign the receipt for income; the Headteacher will sign the authorisation of receipt of
income. Income will be clearly identified with regard to VAT. Income will then be vired into the
relevant budget accounts to pay invoices to which they relate. The Governing Body will be kept
informed of purchases and income through the regular financial reports.


Charging Policy
The Governing Body recognises the valuable contribution that a wide range of additional activities
including visits, trips, residential experiences and other school links can make towards the pupils'
personal and social development. The Governing Body aims to promote and provide such activities
both as part of a broad and balanced curriculum for the pupils of the school and as additional optional
activities.

Steadily rising costs of both transport and admission mean that the School generally has to ask
parents to make a voluntary contribution towards the costs of trips. It may be that where insufficient
voluntary contributions are forthcoming the visit will not be able to go ahead.

In those subjects of the curriculum where students make items to be retained or consumed at home
parents are asked to provide the raw materials. Where the items must remain in school, voluntary
contributions will be sought.

For voluntary contributions, the School is sometimes able to assist those families who cannot afford
the cost of the contribution. Such remissions, however, have to be used sparingly and parents who
have a genuine case are encouraged to let staff know as a case arises. All such applications will be
dealt with discreetly in the strictest confidence.




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Banking Arrangements
The Governing Body has authorised the Headteacher and the Bursar to be responsible for banking
arrangements with regard to school monies. They are also the authorised signatories for invoices,
orders, virements and cheques.

Alterations to any original documents such as cheques, invoices, orders etc. will be made clearly in
ink. All such documents are kept securely locked at school.

The Bursar is authorised to sign cheques and orders in the absence of the Headteacher within the
above constraints.

The Chairman of the Resources Committee and the Headteacher will decide how any surplus should
be invested into the Accumulating Fund and this will be reported to the Governing Body. The
Governing Body must sanction any withdrawals.

A financial report and copies of relevant computer print outs will be prepared by the Bursar for
meetings of the Resources Committee. A financial report is also sent to the Chairman of the
Resources Committee on a monthly basis as soon as the figures are available from the LEA. The
Chairman of the Resources committee will provide details of Budget variances in excess of £200 to the
full Governing Body.

The Headteacher and the Bursar are authorised to move sums up to £500 between budget headings;
sums above this amount must be referred to the Chairman of the Resources Committee. All virements
are to be reported at the next meeting of the Resources Committee to ensure that they are recorded.

Chequebooks will be kept securely locked in a filing cabinet. Personal cheques will not be cashed.

Bank statements will be received at regular intervals, these will be checked off against the paying in
book, cheque stubs, then entered and reconciled on the computer. Any discrepancies will be
investigated. A bank statement comparison will be drawn off from the computer and should tally with
the bank statement itself. These will be signed as correct by the Bursar and countersigned by the
Headteacher.


Petty Cash
The Governing Body has agreed that the School does maintain a petty cash system which should not
exceed £100 at any one time; to be kept on the premises. All transactions using petty cash will have
receipts.


Voluntary/School Funds
The Governing Body has appointed the Bursar to act as Treasurer of „Lindfield Primary School Fund‟
account and be responsible for its operation. The Governing Body has appointed an Auditor to audit
these accounts. The school operates a School Fund account with HSBC. There are two authorised
signatories, the Headteacher and the Deputy Headteacher. Either the Bursar or the Headteacher can
raise orders; these are checked on arrival against the order.




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All monies are received by the Bursar, counted and paid into HSBC. Each amount is then entered into
the Account book - dividing where necessary each amount paid in into the relevant headings such as
sweatshirt payments, Puffin book club, collections etc.

When monies are required a cheque is raised, signed by the Bursar, the invoice, where applicable, is
dated and the cheque number put on it. An entry is then made in the Accounts Book. Cash on site is
kept to a minimum. All monies relating to the School Fund are kept completely separate from the
School Budget accounts.

Statements are received regularly, these are checked off with the Account book, cheque stubs and
paying in slips. A cash in hand is then established as being the same as the cash in hand figure on the
accounts book, this will then be signed correct by the Headteacher.

Once a year, at present during the summer holiday break the account book is closed and a Profit and
Loss account and Balance Sheet presented to the Auditor for that financial year.


Lettings Policy

The School has adopted the scale of charges shown in Table 1 for school lettings. Where the school is
used for Community Education or for Election purposes, then the school is mandated to follow the
West Sussex guidelines and charging schedules, which can be obtained from the Bursar.

We have a legal requirement to charge insurance to third party hirer, unless the hirer can show that
they have their own insurance cover to the value of £10,000,000. Arrangements have been made for
the School to register under the West Sussex insurance scheme. The insurance premium for the hire
of schools is 9% of the hire charge plus 5% Insurance Premium Tax on the 9% amount.

All charges are per session for a maximum of 4 hours. VAT is payable on all lettings marked with an
„*‟.

Room/Charge                           VAT      Room Used      Room Used        Room Used
                                                   for          for Group       for Public
                                               Community        Activities    Performances
                                                 Events       i.e. Keep Fit   or gatherings
                                                                    etc
William Allen Hall                                  £20.00        £35.00          £48.00
Classroom or other Room                             £15.00        £25.00          £30.00
Playing Field                           *           £20.00        £30.00          £50.00
Car Parking Area or Playground          *           £20.00         N/A            £60.00
Additional Caretaking Charges           *
                                                    £28.00       £28.00           £28.00
After 22:00, costs are per hour




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Best Value
Lindfield Primary School adopts a “best value performance management framework” which ensures
that we deliver services to clear standards, covering cost and quality, the most effective, economic
and efficient means available. We have summarised these as:

    1. The existence of a programme of performance review, which will aim for continual
       improvement. Existing mechanisms such as school improvement, PDP and post-OFSTED
       inspection plans are developed to satisfy the requirements for review. The reviews include:

                  Challenging how and why a service is provided (including consideration of alternative
                   providers);

                  Comparison of performance against other schools taking into account the views of
                   parents and pupils;

                  Mechanisms to consult stakeholders, especially parents and pupils;

                  Embracing competition as a means of securing efficient and effective services;

    2. The development of a framework of performance indicators and targets which will provide a
       clear practical expression of a school's performance, taking national requirements into
       account;

    3. That the following are included in school development plans -

                  Summary of objectives and strategy for the future;

                  Forward targets on an annual and longer term basis;

                  Description of the means by which performance targets will be achieved;

                  A report on current performance


Interpretation
The Chair of Resources shall settle any ambiguity, which arises from the interpretation of these
regulations.




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Signature Sheet




Signed ................................... Chairman of Governors




Signed ...................................Chairman of Resources Committee




Signed ...................................Headteacher Lindfield Primary School




Signed ...................................Bursar Lindfield Primary School




Formally reviewed, approved and adopted at Governors Resources meeting on 24th
November 2008.



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