RATIONALE
The funding framework which replaces Local Management of Schools is based on the legislative provisions in sections 45-53 of the School Standards and Framework Act 1998. The Scheme for Financing Schools requires the Governing Body to determine the level of financial delegation to the Headteacher and to clearly record such a decision within the minutes of the Governing Body.
AIMS
· To ensure the school meets and continues to uphold the Financial Value Standard (SFVS)
· To ensure that sound financial procedures are in place to satisfy all internal/external audit inspections.
· To ensure sufficient delegation of duties is achieved.
· To ensure all public and private monies are accounted for in a proper and official manner.
· To ensure the school achieves value for money.
IMPLEMENTATION:
· The Governing Body will be accountable to the Authority, through the Executive Director of Children’s Services, for the financial management of the school’s Dedicated Schools Budget
· The Governing Body shall submit, to the Executive Director of Children’s Services, their approved financial plan for the year within two months of receipt of their budget share statement, and shall inform the Executive Director of Children’s Services of all subsequent changes at least once per term.
· The Governing Body will observe all timetables for the proposed closure of accounts
· The Governing Body will observe all requirements under the Local Authority Scheme for Financing Schools
· The Governing Body will conduct an assessment against the School’s Financial Value Standard on an annual basis
PRACTICES
Financial Policy and Delegation of Responsibilities / Global Management
THE GOVERNING BODY
Establishment of the financial policy of Prestwich Arts College, to monitor its effectiveness and implementation.
As Governors of Prestwich Arts College, a locally managed school, we understand that we are accountable for the financial administration of the school, including the setting of the annual school budget. In order to facilitate the efficient administration we have adopted the following scheme, which delegates a number of specific duties to certain sub-committees and/or the Head Teacher and provides for emergency action. We understand that the Governing Body will be kept informed of any actions taken under any delegated powers.
In an emergency the Head Teacher and a nominated Governor will make any decisions normally taken by the Governors or the Finance sub-committee, provided a full and written report is presented to the appropriate committee at the first possible opportunity.
THE FINANCE SUB-COMMITTEE
Overall responsibility for the management of the school’s finances in accordance with this policy document including:
P Transfer (virement) of monies between different budget headings within the school’s delegated budget share where individual sums are in excess of £20,000
P Opening and approving of tenders in excess of £30,000.
P Approval of quotations for items between £7,000 and £30,000.
P Approval of financial support to individuals or organisations in furthering educational provision, establishing lettings fees, other than for directed use, and responsibility for the Governors’ charging policy.
P Ex-gratia payments for staff for loss of or damage to personal effects in excess of £100 in any one case, providing that the loss is not covered by personal insurance. Each case will be considered on its own merits.
P Payment of fees to outside speakers in excess of £500
P Approving the charging policy of the School.
THE BUSINESS & RESOURCE SUB-COMMITTEE
Throughout the year the Business & Resource Committee will undertake full discussion in relation to the spending patterns and requirements led by the School Improvement Plan.
THE HEADTEACHER
Overall responsibility for the management of the school’s finances in accordance with this policy document including: oversight of
P Financial records as required by the Executive Director of Children’s Services and Borough Treasurer.
P Financial and Finance related risk assessments
P Draft budget information for the Executive Director of Children’s Services, Borough Treasurer and the Governing Body.
P Budget Forecasts covering each year of a multi-year period for which schools have been notified of budget shares beyond the current financial year.
P Estimates for costs of work from suppliers.
P Notification of additional insurance requirements (e.g. All Risk Cover, On and Off Site Insurances) to the Executive Director of Children’s Services and Borough Treasurer.
P Lettings of buildings and other facilities within the Governors’ approved policy and scale of charges.
P Stock, cash, equipment and other asset control, records and security.
P Virement between budget headings, within the school’s delegated budget share, where individual sums involved are less than £20,000.
P Maintenance of register open to public inspection of all payments made from the delegated budget to Governors and staff other than salaries and wages.
P Receipt of tenders or quotations.
P Ex-gratia payments to staff in respect of the loss of or damage to personal effects up to a maximum value of £100 in any one case, providing that the loss is not covered by personal insurance. Each case will be considered on its own merits.
P Payments to speakers less than £500 per lecturer in any one financial year.
P Sales of old materials subject to a report to the sub-group/Governing Body.
P Remission of charges in accordance with the scheme approved by the Governing Body under the provision of the Education Reform Act 1988.
P Acceptance of quotations up to the value of £7,000
THE LEAD BUSINESS & RESOURCE OFFICER
Overall management of the school’s finances operating under the Local Cheque Book Accounting System and within the guidelines laid down, to include:
P Maintenance of proper financial records as required by the Executive Director of Children’s Services and Borough Treasurer.
P Preparation of Financial and Finance related risk assessments
P Preparation of draft budget information for the Executive Director of Children’s Services, Borough Treasurer, Governing Body and the Head teacher.
P Preparation of Budget Forecasts covering each year of a multi-year period for which schools have been notified of budget shares beyond the current financial year.
P Preparation of Cash Flow Projections.
P Obtaining estimates for costs of work from suppliers.
P Management of lettings of buildings and other facilities within the Governors’ approved policy and setting scale of charges.
P Control of stock, cash, equipment and other asset control, records and security.
P Virement between budget headings, within the school’s delegated budget share, where individual sums involved are less than £20,000
P Request and receipt of tenders or quotations.
P Acceptance of quotations up to the value of £7,000
P Maintenance of all necessary Audit Reports and Financial Standards as required by Government.
P Preparation of Budgetary Control Reports for all relevant parties.
P Preparation of Monthly Returns to the Borough Treasurer including VAT returns and reclaims.
P Reconciliation of LEA financial returns with in-house system of accounting.
Delegation of Responsibilities
Day-to-Day Management
Division of Duties
P Authorisation of Orders
Heads of Department / Faculty, other budget holders & Business & Resource Team
P Signing of Official Orders
Business & Resource Team, Lead Business & Resource Officer or any member of The Senior Leadership Team
P Certification of Receipt of Goods
Budget Holders & related support staff
P Certification Of Invoice
Business & Resource Team
P Cheque Signatories/BACs
Schools Budget Share
Head Teacher : Deputy : Assistant Head Teachers
Schools EBay/Paypal Account:
A debit card is linked to this account. The account holds a minimal working float which will allow for the any variance in time lapse between bid and acceptance. Funds for actual purchases are made at point of sale, these being transferred via BACs payment from Budget holders account to the Schools EBay/Paypal Account. The two senior Business & Resource officers are administrators of this account and are the only personnel to have access to user name and password.
Schools Purchasing Account
A debit card is linked to this account. The account holds a “float” of £750 which will allow for any variance in time lapse between receipt of requisition and placing of order. Funds for actual purchases are raised against budget holder accounts at point of requisition, these being transferred via BACs payment from budget holders account to the Schools Purchasing Account once goods have been received. The Business & Resource officers are administrators of this account and are the only personnel to have access to user name and password. The cards are issued in the name of the Lead Business and Resource Officer and Head Teacher and signatories listed on the mandate are the Head Teacher : Deputy : Assistant Heads
P Private Fund
Head Teacher : Deputy : Assistant Head Teachers
P Signing of Leasing Contracts
All Leasing Contracts shall be for no longer than a 3 year term and sent to Legal Department at Bury Council for their input and advice.
Any new leasing contracts shall be discussed and recommendations compiled by the Procurement Panel.
Recommendations will then be taken to the finance-sub-committee for approval.
Renewal of existing contracts shall be taken through the same procedures if expenditure exceeds that of the previous existing contract.
In exceptional circumstances where time does not permit, the Head Teacher shall have the authority to approve the contract; in any such instance the chair of governors shall be notified at the earliest opportunity.
P Reconciliation of Invoices
Business & Resource Team
P Reconciliation of Income and Expenditure
Business & Resource Team
Process for Construction and Approval of the School’s Delegated Budget
During the course of our financial year the following groups will have been consulted as to the financial needs for the current and forthcoming year within their areas of operation and/or responsibility.
P Governors
Through cycle of sub-committee and full governor meetings.
P SLT
Head teacher, Deputies, Assistant Headteacher
P Middle Managers (both teaching and associate staff, through the School Improvement Plan) and Middle Management Meetings
Heads of Faculty, Assistant Heads of Faculty, Faculty Associate Managers,
P Staff
Through preparation and construction of School Improvement Plan and Performance Management Meetings and IPOD
P School Council
Through Council Meetings and Council Improvement Plan
P Health & Safety Committee
Following discussion, at which the views expressed in the above forums will be considered, the Lead Business & Resource Officer will construct a draft budget addressing the school’s needs as expressed within its Improvement Plan and Strategic Buildings Plan and insofar as the Delegated funds will allow.
The Governors’ Finance sub-committee will meet to discuss the budget submitted making recommendations for any amendments or modifications they feel appropriate. At this meeting the budget will be agreed and taken to Full Governors for approval in good time to be submitted to the Local Authority by the 31st of May in the relevant financial year.
They will ensure the budget is:
P Financially sound and secure
P Will serve to implement and further Student attainment and progress
P Will serve to implement and further the school development plan
P Is consistent with the school’s aims and objectives
The monies allocated to the various Budget Headings will be notified to the responsible staff following a full staff meeting where details of the budget will be published and explained.
Process for allocation to Budget Headings
Staffing
Based on curriculum need and taking into consideration incremental points and staffing issues identified within the School Development Plan. Percentage of total staffing costs will be reviewed each year at the time of Benchmarking.
Buildings
Based on priorities contained within our School Improvement Plan, Asset Management Plan, Strategic Buildings Plan and Health & Safety Action Plan and is always budget dependant.
Faculty Capitation
Before the (internal) funding formula is calculated, the capitation allocation is weighted in line with AWPUF allocations. The funding formula is then used to calculate each departmental/faculty allowance taking into consideration pupil numbers, teaching periods and further weightings set for each department. Weightings applied are as follows:
Purely classroom-based subjects 1
Classroom based with some practical input 1.2
Purely practical based subjects PLUS Core 1.4
Number of Periods Weightings
8 Periods 1.4
6 Periods 1.2
5 Periods 1.1
4 Periods 1
3 Periods 0.9
2 Periods 0.8
1 Period 0.7
Non-Staffing Budget Headings
Non staffing budget headings are based on historical expenditure school objectives identified within the School Improvement Plan plus an inflation factor. In addition new budget headings are created in accordance with any new initiatives contained with our school Improvement Plan or to meet the needs of identified areas for improvement throughout the year.
Contingency
If our budget allows, a contingency sum will be set against our unallocated coding to cover any emergencies or promotional issues, which may arise during the course of the financial year. Provided, of course, they are within the context of our School Improvement Plan and/or Salary Review Policy.
Statemented Provision Costs
Funding for children with statements of Special Educational Needs is allocated to the school through a weighted formula and is dependent upon the number and type of statement. Funding is allocated through the Section 251 Statement.
Supply Cover
Sickness and non-Sickness Insurance Cover
The school negotiates insurance cover with external insurance companies and follows the practice set in the Best Value Policy.
General Supply
A budget is set from our Delegated Budget for general cover (other than sickness). For examination work; moderation vouchers are issued in some instances and are redeemable by the school
LEA Traded Services
At the beginning of each financial year decisions are made as to which Traded Services the school wishes to “buy back”.
DEVOLVED CAPITAL
Allocations under devolved capital form part of our annual budget plan. The Strategic Planning Department are informed of our intention to utilise this funding at the beginning of each year.
Financial Requirements
Financial Requirements also require Governing Bodies to ensure strict controls are in place for:
P Provision of Financial Information and Reports
P Control of Assets
P Audit(s) including Private Funds