Budget Plan Proforma

SCHOOL BUDGET SHARE 2006/07

GUIDANCE (PART 2)

1 BUDGET PLAN PROFORMA

We are now entering the fifth year of budget planning against the Consistent Financial Reporting (CFR) framework. The budget plan proforma was revised for 2002/03 to comply with CFR and no further changes have been made to the plan structure itself for 2006/07. An electronic version of the budget plan for schools to complete is available through AVCO, Anycomms client software and the Education Financial Services website http://efs.norfolk.gov.uk/index.htm. Select ‘Budget Planner’ from the index. Technical guidance on completing the budget plan, and associated spreadsheets, can be found by clicking on the ‘books’ icon in the top left hand corner of the budget plan main menu.

The main menu options include:

· The original budget and 3 revisions are all contained within the drop-down menu under the ‘Input Budget’ option – schools will need to finalise their live budget, after which no changes can be made, before preparing further revisions;

· There is easy access to the teaching cost spreadsheet and the optional transfer of costs from this spreadsheet into the budget plan – a spreadsheet to cost APT&C staff is also provided as part of this facility, along with a corresponding optional transfer into the budget plan.

· A budget forecast tool has been provided for schools to estimate their future funding levels. From April 2006, funding will be based on the number on roll as notified to the authority via the January PLASC return, with no in-year adjustments for September changes. Funding forecasts should use an estimate of the future numbers each January.

· Schools are required to submit a budget plan for the current financial year and the two following years (as outlined in paragraph 2.3 of Norfolk’s Scheme for Financing Schools) by 1st May 2006 at the latest.

· The ‘Import Budgets from Prior Budget Plans’ button enables schools to import data from previous budget plans.

· The envelope icon enables schools to e-mail a copy of the budget plan to Children’s Services Finance Support (CSFS).

2 SUBJECTIVE CODE LIST FOR ALL SCHOOLS – 2006/07

The subjective code list for all schools for 2006/07 is available on the EFS website.

There are a number of changes to the subjective code list this year.

Codes that have been deleted are;

9247 EAZ Income

0490 Temporary Teachers

0495 Teaching S/F

0520 Unqualified Teachers

0590 Heads and Deputies

0625 Pianists in Schools

0260 Librarians (APT&C)

0261 Librarians (APT&C) Overtime

0670 Sleeping in Allowance

0675 Non teaching Supply Costs

0940 Workshop & Lab Technician

0941 Workshop & Lab Technician Overtime

0955 Childcare Staff

0956 Childcare Staff Overtime

0960 Nursery Officers/Assistants

0966 Welfare/Resources Assistants Overtime

0970 Foreign Language Assistants

0971 Foreign Language Assistants Overtime

0975 Matrons and Nurses

0976 Matrons and Nurses Overtime

0995 Support Staff S/F

1071 Laundry Worker Overtime

1186 Caretakers Lettings Overtime

1196 Caretakers Overtime

1201 Cleaners Overtime

1335 Admin & General S/F

1361 Admin & Clerical General Overtime

1400 Clerical (excluding Catering)

1401 Clerical (excluding Catering) Overtime

1405 Clerical (including Catering)

1406 Clerical (including Catering) Overtime

1540 Catering Staff S/F

1546 Cook Overtime

1550 Assistant Cook

1551 Assistant Cook Overtime

1555 Kitchen Staff

1556 Kitchen Staff Overtime

0981 Swimming Escorts Overtime

1011 Senior Supervisors Overtime

1016 Midday Supervisors Overtime

1306 Drivers Overtime

3575 Car Allowances General

New subjective codes this year are;

9077 Teacher Training Agency Income

0896 Teacher Training Agency Expenditure

1006 Education Support Staff O/T

1296 Premises Staff O/T

1506 Admin & Clerical O/T

1596 Catering Staff O/T

1026 Other Staff O/T

1326 Drivers O/T

NB Please note that code 0620 should only be used for Contracted Peripatetic Teachers. Payment for the music service should be accounted for in line E27 under code 4550 Other Professional Services – Music.

3 STANDARDS FUND

The use of any Standards Funds should be incorporated into the School Improvement Plan with amounts being transferred across to the appropriate lines on the budget plan. For schools that wish to identify expenditure from Standards Fund at subjective level, there are optional codes within a number of budget headings (‘S/F’ appears after budget description).

As schools are becoming more familiar with monitoring the use of Standards Funds against outcomes rather than on a primarily financial basis, departmental codes are no longer used. We still do not have the facility to download this information to schools and departmental codes should not be entered onto payroll claim forms.

4 COMPLETING THE BUDGET PLAN PRO-FORMA

A list of inflation factors can be found on the EFS website which can be used, as appropriate, to bring 2005/06 levels of expenditure in line with 2006/07 rates.

We have outlined below further information for schools to consider when constructing their budget plan. The headings, where there is information of significant value, have been listed in the order they appear on the plan.

4.1 Income

Individual school Budget Share allocations can be accessed via the Education Financial Services website at http://efs.norfolk.gov.uk/index.htm. Select ‘Budget Share’ from the index.

According to CFR regulations, schools should budget for all income due against a standard list of budget headings. Schools must balance within the resources available. Any overspend will have to be met from the balance brought forward from the previous year. Any underspend will be added to the balance, positive or negative, brought forward.

The budget share will be downloaded to schools against the appropriate income subjective codes. Bank Account Type A schools will need to ensure their cash resources are allocated appropriately into their accounting system.

The elements that make up a school’s budget share are entered on the budget plan under income headings I01 to I06. Schools can find the actual amounts on the LMS SUMMARY.

4.1.1 Standards Fund (I05)

Include under this heading, the total Standards Fund for your school as outlined on Standards Fund Form LMSBSF2006 and on the LMS Summary.

Any future known or anticipated Targeted and Demand Led allocations not included on the above form but which schools wish to build into their budget plans should also be included. Ensure that corresponding expenditure is also entered against appropriate expenditure lines.

General Standards Fund information is available on norfolkesinet at http://norfolkesinet.org.uk/pages/viewpage.asp?uniqid=4102.

Individual allocations can be accessed via the Education Financial Services website at http://efs.norfolk.gov.uk/index.htm. Select ‘budget share’ from the index.

4.1.2 Income from Facilities & Services (I08)

Board and Accommodation - Staff

The responsibility for staff houses was delegated to schools in 2002/03. Schools who have delegated responsibility for their staff house will see an amount against item 3.18 on their budget share. This shows the delegated sum, less the expected average rental, which will be collected via payroll and credited to subjective 9145 for Board and Accommodation – Staff. If Norfolk County Council is not your payroll provider, arrangements will have to be made for the collection of this rent, which must be entered against subjective code 9145 and not netted off against pay costs.

DO NOT USE CODE 9730 – RENTS, FOR THIS INCOME

Schools who buy into the Building Maintenance Partnership Pool will have the staff house included in this arrangement. Please refer maintenance issues relating to staff houses to Kevin Brown, NPS Property Consultants Ltd, on (01603) 223384.

Schools who make alternative arrangements for building maintenance will now need to include the staff house, and be aware that they are responsible for the annual review of rents.

Hire of Facilities

A number of schools have an agreement with the Authority for the hire of facilities – through this agreement, resources may be allocated to schools through their budget share or a deduction may be made.

Where resources are allocated in agreement with the LA, this enables the school to hire facilities such as playing fields and swimming pools. The cost of this hire should be coded to 2464 under E18 Other Occupation Costs.

Where a deduction is made in the budget share, this is to reflect the income the school expects to receive during the year through a rental agreement. Income received through such agreements should be credited to 9730, to enable Childrens’ Services Finance Support to make accurate year-end adjustments.

Income received for lettings should be credited to subjective code 9508 and not 9730.

4.2 Expenditure

4.2.1 Teaching Staff (E01)

School budgets for both 2006/07 and 2007/08 allow for a 2.5% increase in teachers’ pay. This is in line with the pay award announced by the DfES.

The teaching cost spreadsheet provided by CSFS is accessed via the main menu of the budget planner. Schools are encouraged to make use of this management tool when preparing the 2006/07 budget and future projections. It is available through AVCO and the Education Financial Services website as outlined above. Guidance on its completion can be found by clicking on the ‘books’ icon in the top left hand corner of the budget planner main menu.

Schools are encouraged to cost their teaching staff in full, regardless of the funding arrangements. Details of any anticipated income e.g. grants for specific projects, should be clearly entered on the notes facility of the budget plan for future reference.

We are finding that average on-cost rates for teaching staff vary between Heads/Deputies and Classroom Teachers, and the current levels are set out below. Schools should monitor their staffing budgets to satisfy themselves that any average rates used are sufficient for their particular circumstances and that actual costs correspond with those expected.

Primary Secondary Special

Heads/Deputies 22.50% 23.40% 23.25%

Teachers 21.55% 21.95% 22.00%

Non-superannuable 9.10% 9.10% 9.10%

4.2.2 Supply Staff (E02)

It is recommended that schools do not budget for supply cover that will be met from the sickness insurance scheme.

Agency supply is not covered under this heading but is dealt with under heading E26. This separation is to comply with Consistent Financial Reporting.

4.2.3 Education Support Staff (E03)

There is an allowance in school budgets for both 2006/07 and 2007/08, for pay increases of 2.95% each year, which is the estimated pay award for APT&C staff.

Schools are encouraged to make use of the staffing spreadsheet provided by CSFS for costing the salaries of APT&C staff. This can be found within the teaching cost spreadsheet by clicking on the master non-teaching button. Guidance on the completion of this spreadsheet can be found by clicking on the ‘books’ icon on the budget plan main menu.

Please note that from April 2006, employers’ pension contributions for APT&C staff will increase by 1%. Therefore, the on-cost rate of 21.6% should be used for superannuable staff and 9.1% for other staff.

4.2.4 Premises Staff (E04)

Due to the wide variation in contract arrangements, schools may find it sufficient, in practice, just to add an inflation factor to 2005/06 actual costs – this would then include provision for the cost of lettings and other overtime payments (although these would be at 2005/06 operational levels). Schools should bear in mind any personnel changes when calculating the future cost of these staff. If desired, the basic salary element of Premises Staff can be included on the non-teaching staff spreadsheet.

There is an allowance in school budgets for both 2006/07 and 2007/08, for pay increases of 2.95% each year, which is the estimated pay award for APT&C staff.

4.2.5 Administrative & Clerical Staff (E05)

These staff can be costed on the staffing spreadsheet as outlined under paragraph 4.2.3.

There is an allowance in school budgets for both 2006/07 and 2007/08 for pay increases of 2.95% each year, which is the estimated pay award for APT&C staff.

4.2.6 Catering Staff (E06)

This budget heading is for use by schools that employ their own catering staff. Any inflation for 2006/07 and 2007/08 should be in accordance with local agreement.

4.2.7 Cost of Other Staff (E07)

Midday Supervisors are included under this heading and, although they can be costed on the spreadsheet as set out in paragraph 4.2.3., schools may find that a similar approach to the costing of premises staff is sufficient.

There is an allowance in school budgets for both 2006/07 and 2007/08, for pay increases of 2.95% in each year as previously stated for other staff.

The subjective list includes two subjective codes to meet the requirements of Consistent Financial Reporting (1625 Special Facilities – Catering Staff and 1635 Special Facilities – Boarding Staff). These two codes must be used for staff costs associated with managing and supporting special facilities.

4.2.8 Staff Development & Training (E09)

This heading includes staff development costs for teaching staff, support staff and governors.

4.2.9 Supply Teacher Insurance (E10)

This heading records the sickness insurance premium for teaching insurance only – any insurance for non-teaching staff should be entered under ‘Staff Related Insurance’.

Schools who buy into the Norfolk County Council’s sickness insurance scheme can find details and premium rates on pages 50 – 53 of the 2006-2007 Services to Schools brochure. The premiums are also detailed for your school on the Services to Schools Contract 2006/07.

4.2.10 Staff Related Insurance (E11)

This heading records the sickness insurance premium for non-teaching staff. Again, details of the sickness insurance scheme offered by CSFS are outlined in the 2006-2007 Services to Schools brochure, with the premiums for your school outlined in the Services to Schools Contract 2006/07.