Finance admin sessions Presented by David Dilling February

Finance admin sessions Presented by David Dilling February 2013

Guest inputs • Jo Watts apologies - has to stay in school • Shirley Si Ahmed around 2 pm

An important reminder Governance is. . . • The way we do business • How we conduct our-selves • Keeping the Council safe • Providing value for money • Being fair, equitable and transparent • Ethical conduct • Doing the Right Thing! • Everybody’s responsibility!

Proposed agenda – not actual order! • BACS – An apology about the slow progress • Team update – The latest staffing news from CFL finance. • Training update – • CPD and SLAs on LWB – an input • Various odds • Funding and year end 12/13 – To update the position for the current year. • Budget setting, funding 13/14 & 14/15 – an update • AOB – a chance to raise any other matters that may be relevant.

Update on the CFL finance team part 1 • We are now based in Taberner House so that the whole CFL finance team is together. This had many benefits. • The team is currently going through a restructure process which is intended to be fully in place in early June. • The new structure will enable the team to address the various new issues raised with the changing finance scene in a much more efficient way. • In terms of the direct support to schools there will be a dedicated group under the direct leadership of the Head of Finance. This including a senior schools finance adviser, schools finance advisers and a finance officer to support them.

Update on the CFL finance team part 2 • In the short term we have taken on - Louise Watts in the finance support role - Vanessa Newton as an additional finance officer • Louise is directly supporting schools around FMS 6, daily and monthly processes including 1 to 1 training. • Vanessa is working mainly in the office but will be processing school returns around balances and analysis of balances and licensed deficits and will be supporting the process when schools convert to an academy. • Mandy Friend will be leaving at the end of March. • Irena Nardone will be retiring at the end of April and her role will be distributed across a number of people within the CFL team • Janet Baidoo is now leading on high needs and early years blocks of the DSG

Training update • Following feedback we did sessions on - user defined reports - quarterly returns • Bite size sessions planned: - 05/03/2013 – year end procedures • Any other suggestions for future topics? - eg using HCSS FPSweb software? - eg using Excel? - eg bankline + ? ?

Some warnings • A school has just had several fraudulent cheques - contact David Hogan in cases of suspected fraud • A school has had a very expensive photocopier contract - please be very careful about signing new contracts • Some issues where schools have paid an individual and not employed them - use the HMRC website • A school has had a poor audit partly due to using a debit card - use the “Council” procurement card as debit/credit cards not allowed • Other examples • • Previously mentioned Supply teachers from ISS Ltd? ? http: //www. bbc. co. uk/news/uk-20157878 BBC Panorama re leases Brent Audits, teacher whistleblow, Copland head

Various odds • Energy change to happen in April 2013 - make sure you continue to make monthly readings and at year end and that they are being used by energy • Milk not to be organised centrally from April 2013 • Some licences now paid by Df. E and school funding is top sliced • Scheme changes include payment of funding in equal 12 ths. Consultation for 2 weeks. • Schools responsible for official duties from April

Returns • Electronic or active spreadsheet so we can pull out the data from the cells • Signed so a picture (pdf, tif etc) so we have a copy for audit • Scanned is preferred over faxed eg can read it eg receipt if by email scanned but cannot reply if faxed • Confusion over quarter returns There are two - a normal quarterly return - an analysis of balances • Analysis of balances is mainly to ensure sensible spending by governors but also to protect from monies being taken if they become significant and it can be seen that governors are not acting regularly to plan their purpose.

RBS bank arrangements Sarah Pearce and Shirley Cross • Use forms on Finance Matters to remove or add signatories. • When adding signatories there are two forms - the simple form ONLY needs the signature and the name of the person. No other marks and it must be on one side of A 4 • Authorised signatories or finance officer can contact the corporate services team 0845 3016104 to get info, transactions, current list of signatories. Will need to answer security questions • Need to keep up to date signatory list in school for audit Note that there a number of Council officers that will be authorised signatories for fraud and high level finance arrangements eg closing accounts • Need to know who is the relationship manager • Bankline 60 out of 82 using it. Use for checks in real time. Do you need paper statements?

Procurement card – Sarah Pearce • forms on Finance Matters – some changes eg DD in 03 Always use the latest versions • any amendments use the specific form • make sure you remove signatories/ card holders / administrators etc when they leave • any additions will require your governing body to approve and send in an updated form • it is good practice as part of the scheme of delegation to review the card holders/signatories/roles on a yearly basis • Monthly statement gives the monthly credit limit

More substantial items

Funding 2012/2013 • Statemented funding now sorted • Pupil premium CLA – please chase other LAs if funding not received (use virtual head) • Early Years adjustments – most done but a few outstanding. • Will be checking for NNDR differences • Will be finalising any additions for bulge classes etc • Any other outstanding issues – please email me by end of February so that we can sort for March funding run

Early Years funding • Maximum claim is for 38 weeks for 15 hours ie 570 hours per child in any academic year • Can claim when school forcibly closed eg snow, elections provided no alternative claims made • Please make returns by due dates

Year end – some important points • Thank you for agreeing to have visits during the Easter holiday • If you need to pass money to another school then please finalise by midday Friday 22 March 2013 so that both schools can make the correct entries • If you owe monies to the LA then make sure the cheque reaches us by Friday 22 March 2013 • Suggested accrual limits are £ 500 primary, £ 1000 secondary

Year end – some important dates • EY returns by 14 March 2013 so that we can indicate any adjustment for year end • SFVS return by 31 March 2013 (needs governor approval). If you expect difficulty please contact us ASAP. Note we will need to inform Df. E of any missing • bank account & contract details by 31 March 2013 • year end schedule by Thursday 18 April 2013 • analysis of balances by Thursday 18 April 2013

**Balances/Deficits • Revenue balances increased by £ 2 M • Capital balances reduced by £ 4 M • Schools Forum looking at schools with apparent excessive balances and looking at the balance analysis in the year end returns • If a deficit then need to apply for a licensed deficit. • NEW analysis of balances is patchy • Now most schools have in year deficits and total is due to reduce by 50%. What are the implications?

**Funding 2013/2014 • Some major changes that will affect all types of schools/PRUs • The following notes just pick out a few of the changes and implications for schools • Applies to maintained and academies and difference is reducing • Overall funding static and MFG still -1. 5% • The bite size session will provide a little more detail

**Funding 2013/2014 – major changes • Funding will be allocated in 3 blocks - early years (PVIs, nursery classes, nursery schools) - schools (primary and secondary schools only) - high needs (statements, resource bases, special schools, PRUs, alternative education, out borough placements etc) • Funding formula structure determined by Df. E

**Early Years • Broadly as now and the area of least change • Will not include the high needs parts/ resource bases as these are funded from High Needs block • Deprivation factor will still be based on ACORN

**Schools • Based on October census (not January) - Suggest schools get reception in full time by the October census • Much reduced funding factors leading to possible issues for - small schools - infant/junior but not primary - schools with high EAL/ethnic groups • Funding finalised early February • Get involved in consultation in autumn

**High Needs • All the high needs is funded from this block for ages 0 to 25 • Assumes £ 10 k base funding is available from the per pupil and AEN factors • Responsible LA commissions places and provides top up funding. • Top ups allocated when the child is present • Possible issue around cash flow

Funding 2013/2014 – key points • Funding being issued in stages as they are finalised • See Finance Matters for latest info • http: //webfronter. com/croydon/Finance_Matters/mnu 3/05 _Funding_2013_2014/images/Funding_commentary. doc

Setting the 2013/2014 budget • Please submit electronic budget plans by 31 March 2013 • Signed budget plans by 1 May 2013 • If you are unable to set a balanced budget then you are required to apply for a licensed deficit by completing the updated form and submit a signed copy by 31 March 2013. Schools are advised to contact DD ASAP if a licensed deficit is expected

Funding 2014/2015 and beyond • Df. E have just issued a consultation paper for some areas that have caused some issues • http: //www. education. gov. uk/schools/adminandfin ance/financialmanagement/schoolsrevenuefundin g/a 00221523/review-of-2013– 14 -school-fundingarrangements • Strong expectation that 2015/2016 will see the introduction of a national formula

Discussion activity

Developments in schools? • Ofsted is being more demanding about progress in schools and as a result several schools have been strongly led down the academy conversion route • This is not due to things in the school office but how can we help the school improve things? • What changes have schools made in recent months? How have they improved things? How do you know? • What challenges do you still have?

Any other issues/comments?

Internal Audit Dave Phillips – Internal Audit Manager November 2012

Common Key Audit Issues • Annual approval of Key Policies, Scheme of Delegation and Committee TOR by Governing Body • CRB and Payroll issues • Approval of Budget and Virements • Procurement Controls

Annual approval of Key Policies, Scheme of Delegation and Committee TOR by Governing Body The School Governance (Procedures) (England) Regulations 2003, paragraph 16 (3) states that: • “the governing body must review the exercise of functions it has delegated annually. ” • “The Governing Body must determine the constitution, membership and terms of reference of any committee it decides to establish and review them annually. ”

CRB and Payroll issues • 8 schools audited during 2012/13 (out of 25) had CRB issues • While not a statutory requirement for Governors, Council guidance is that they should still be CRB checked. Furthermore, are disqualified if they have been incarcerated. • Also contracts employment and confirmation of leaving dates.

Approval of Budget and Virements • The Council’s ‘Scheme for Financing Schools’ paragraph 2. 3 states that, “Governing Bodies are responsible for agreeing an income and expenditure plan for the financial year”. • Virement limits are normally set out in the Schools Scheme of Delegation

Procurement Controls • Authorisation must be obtained and evidenced prior to initiating the transaction and, if possible, input on SIMS. • Goods / services received checks must be evidenced. • Authorisation, in line with So. D must be evidenced at order and invoice payment stage. • Each of the above have resulted in P 1 recommendations this year