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Finance Seminar Autumn 2014

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Title: Finance Seminar Autumn 2014


1
Finance SeminarAutumn 2014
  • Presented by
  • Cathryn Walker

2
Agenda
  • FIRST SESSION
  • SECOND SESSION

LGSS 2015-16 CFR Budget Monitoring Audit
SFVS Tendering / Quotes Process Electronic
Reporting Cash Advances Housekeeping Top
Tips Other
Schools Finance Team 2014-15 Budget 2015-16
Budget Pupil Premium High Needs Funding
2014-15 High Needs Funding 2015-16 EYSFF
2015-16 School Balances 2013-14 School Balances
2014-15 Universal Infant FSM (UIFSM) Schools Forum
3
LGSS Schools Finance Staffing
4
Schools Budgets 2014-15
  • Minimum Funding Guarantee of minus 1.5 or cap of
    4.5 on Schools Block funding.
  • Basis for funding
  • October 2014 Pupil Census for per pupil
    allocations
  • January 2015 Pupil Census for Pupil Premium grant

5
Additional One Off Allocation
  • The impact on the funding formula for 2014/15
    (11.7 million) is as follows.
  • Not currently known how much one off funding will
    be allocated in 15-16 will be less!

6
Fairer Funding for 2015-16
  • On the 13th March 2014 the Department for
    Education (DfE) announced proposals to increase
    DSG allocations for the least fairly funded
    areas.
  • Begins to address the historical funding basis
    within the current system.
  • A further stepping stone to a National Funding
    Formula although deferred until the government
    can set plans over a longer period of time.
  • These are positive initial steps but the DfE
    state that
  • Beyond 2015-16 the allocation of funding
    between local authorities will be a matter for
    the next spending review.

7
Summary of July 2014 Forum Discussion Points with
Responses
  • Allocate over all 3 DSG blocks? YES
  • Top slice for 1.5m high needs base shortfall?
    YES
  • Basis of split over the blocks? Number On Roll
    (NOR) with a High Needs Special Schools x4
    multiplier
  • Primary/Secondary split base on NOR? YES
  • Schools formula factors to apply to? AWPU
  • If use to increase the cap? YES

8
Revised Funding to be Allocated (Oct 14)
m
Revised Fairer Funding Estimate 9.9
Carbon Reduction Adjustment (0.3)
High Needs Top Slice Agreed with Forum (1.5)
Total Available to Distribute 8.1
9
Allocation Across DSG Blocks
Phase Allocated by NOR July () Allocated by NOR October ()
Primary 3,195,710 4,541,272
Secondary 1,880,802 2,672,719
High Needs 261,376 371,429
Early Years 362,111 514,579
Total 5,700,000 8,100,000
  • Forums preference was to allocate to all blocks
    using the NOR with a weighting of 4 for special
    school pupils (to reflect the higher cost of
    these pupils)

10
Schools Block Forum Discussion Capping Levels
Possible range of Cap/AWPU levels with allocation
of 7.2m
 MAX Increase in AWPU Value Increase in AWPU Value
CAP Primary () Secondary ()
6.65 75.85 71.27
 MIN Increase in AWPU Value Increase in AWPU Value
CAP Primary () Secondary ()
5.70 79.85 75.27
The fairer funding is not outside of the MFG,
therefore as funds are put into AWPU, less total
MFG protection is needed (protection level
nationally set -1.5 per pupil). The total
removed from capped schools cannot exceed the
total value of the MFG protection. With an
additional allocation of 7.2m to the AWPU the
minimum possible level of cap is 5.7 and the
maximum is 6.65. FORUM AGREED FOR THE HIGHER CAP
TO BE APPLIED IN 15-16 Note AWPU change is
indicative.
11
2014-15 factors no changes proposed in 2015-16
Description Used in 2014-15
Basic per pupil entitlement (AWPU) Yes (mandatory)
Deprivation (based on ever 6 FSM numbers) Yes (mandatory)
Private Finance Initiative Yes
Split site Yes
Rates Yes
Lump sum Yes
12
School Budgets 2015-16
  • Indicative budgets will be issued November 14
    (based on Oct 13 numbers)
  • February 15 final individual school formula
    budget information will be placed onto website
    updated for October 14 numbers.
  •  

13
Indicative School Budgets 2015-16
  • The following indicative elements will either be
    added to the website in March 2015 or
    confirmed/allocated during 2015-16
  • - High Needs Place funding Special Schools
    Units / Resourced Provisions
  • Mainstream 6th form allocations - from the EFA
  • Devolved Formula Capital (DFC)
  • Allocations from the High Needs Panel
  • Early Years Single Funding Formula (EYSFF) 3
    and 4, and 2 year olds formulae
  • Pupil Premium Main FSM Based on January 15
    census
  • High needs top ups
  • High needs element 3 top ups for pupils in SEN
    units or resourced provision
  • Special school high needs allocations
  • UIFSM
  • Pupil Growth funding
  •  

14
Pupil Premium
  • Pupil Premium 2014/15 values have increased
    across most categories

Pupil Premium Category 2013/14 2014/15 Change
Primary 953 1,300 347
Secondary 900 935 35
Looked After Children (Pupil Premium Plus) 900 1,900 1,000
Service Child 300 300 0
15
Pupil premium changes 14-15
  • Schools will receive 1,300 per primary pupil who
    is currently eligible for free school meals (FSM)
    or has been eligible for FSM in the past 6 years
    (FSM Ever 6) and 935 for secondary FSM Ever
    6 pupils.
  • Higher rate of 1,900 for looked-after children.
    Extending the eligibility criteria to include
    those pupils who have been in care for one day or
    more, as compared with the six months in care
    currently required.
  • For the first time, schools will also receive
    1,900 for eligible pupils who have been
    registered on the school census as having been
    adopted from care or leaving care under a special
    guardianship or residence order

16
Pupil premium changes 14-15 Contd
  • Northamptonshire to pilot the new early years
    pupil premium from January 2015 53p per pupil
    per hour addition to EYSFF for 3 to 4 year olds
    NOT 2 year olds.

17
Pupil premium changes 15-16
  • 2015-16 pupil premium rates still to be announced
  • New early years pupil premium 53p per hour per
    eligible pupil.

18
Primary PE and Sports Grant for 2014
  • Allocations for the academic year 2014/15 are
    calculated using the number of pupils in years 1
    to 6, as recorded on January 2014 census, as
    follows
  • Schools with 17 or more pupils receive 8,000
    plus 5 per pupil and Schools with 16 or fewer
    pupils receive 500 per pupil.
  • Where a schools pupils are not recorded by year
    group, pupils aged 5-10 are deemed eligible.
  • The total allocation relates to the academic year
    2014/15 and is split into two payments.  Schools
    will receive 7/12th of their allocation in the
    financial year 2014-15 in November and the
    remaining 5/12th in the financial year 2015-16 in
    May 2015.

19
High Needs Funding 2014/15
  • Guidance on all areas included in high needs
    funding guidance on NCC website
  • http//www.northamptonshire.gov.uk/en/councilservi
    ces/EducationandLearning/services/schlfin/Document
    s/HNFundingGuidancev04Final140901.doc
  • Increasing financial pressures from increasing
    high needs numbers - mainly in special schools
  • Queries to Highneedsfunding_at_northamptonshire.gov
    .uk

20
High Needs Funding 2015/16
  • High Needs EFA DSG 2015-16 funding announcement
    in December
  • Schools Forum January and March 2015 discussion
    on high needs pressures, funding and high needs
    funding rates
  • Working with FACE to create a new RAS (Resource
    Allocation System) to use across all of high
    needs including Education, Health and Care (EHC)
    plans and reviewing existing statements

21
EYSFF 2015/16
  • 3-4 year olds EYSFF will include new EY pupil
    premium
  • Main EYSFF being reviewed for 15-16
  • Discussed at Forum Oct and Dec 14, Jan and March
    2015.
  • http//www.northamptonshire.gov.uk/en/councilservi
    ces/educationandlearning/services/schlfin/pages/sc
    hoolsforum.aspx
  • EYSFF rates and elements decided and published,
    including indicative budgets, March 2015.

22
School Balances 2013/14
  • Information on maintained schools balances
    presented and discussed with schools forum.
  • Main area of concern was high pupil premium
    balances being carried forward.
  • Schools with higher (on a per pupil basis) pupil
    premium balances were asked to supply information
    on what held for and reported to Forum on an
    individual school basis.

23
Balances
  • Schools need to be thinking about year end
    carryforwards and Committed / Uncommitted revenue
    balances.
  • To calculate the 8 or 5 Uncommitted balance
    permitted take the current Oracle Report (total
    Revised Budget column) minus previous years
    carryforward (column 1 Balances) then multiply
    by the relevant percentage.

24
(No Transcript)
25
School Balances 2014/15
  • Consulting on changes to the balances scheme
  • To be voted on and agreed by schools forum at 2
    December 2014 meeting. Proposals include
  • Split out different elements of pupil premium
  • Change wording of revenue held for capital
    purposes so doesnt state solely for schemes in
    NCC capital programme
  • Add new lines for UIFSM capital and revenue
    balances (can be surplus or estimate of what
    owed at end of 2014-15 as EFA have funded in
    14-15 based on an estimate)

26
Universal Infant Free School Meals
  • Provision of FSM for eligible pupils is a
    statutory responsibility of schools.
  • Universal FSM places further responsibility on
    schools and has been written into legislation .
  • Places a legal duty on schools to offer free
    meals to all pupils in reception, year 1 and year
    2 from September 2014.
  • Expectation that hot meal will be provided.
  • Possibility nationally to extend to additional
    year groups in future.

27
Universal FSM for Infants
  • Funding information and guidance on NCC website
  • http//www.northamptonshire.gov.uk/en/councilservi
    ces/educationandlearning/services/schlfin/pages/bu
    dget_funding.aspx
  • In the 2014 to 2015 academic year schools will be
    paid funding at a flat rate of 2.30 for each
    meal taken by newly eligible pupils. Schools will
    be expected to fund existing free school meals
    under the existing criteria that they do
    currently.
  • Initial allocations were based on pupil data from
    the January 2014 Schools Census as well as
    planning assumptions that (i) 87 of newly
    eligible pupils will take meals, and (ii) pupils
    will take 190 school meals in an academic year.

28
Universal FSM for Infants
  • Provisional allocations will be revised later in
    the academic year by the EFA based on actual take
    up data from an average of the October 2014 and
    January 2015 School Censuses and the third term
    of the 2014 to 2015 academic year will be
    adjusted accordingly.
  • Adjustments will be made upwards as well as
    downwards depending upon whether actual take up
    is above or below the assumed take up rate of
    87, thus resulting in a clawback.
  • Maintained schools are recommended to identify at
    31March 2015 if for the first 2 terms (Sept 14 to
    March 15) monies are owed to or by the EFA an
    option will exist to identify this on the SB1
    form.

29
Schools Forum
  • Below is a link to the link to the website to see
    the latest information.
  • Schools Forum - Northamptonshire County Council
  • Schools are recommended to read Forum Matters
    when published to keep up to date with latest
    developments.

30
LGSS 15-16
  • The 2015/16 schools and academies brochures
  • Plan to publish on the 1st December 2014.
  • The brochures will be available through
  • the new schools and academies enewsletter which
    will be emailed to all Northamptonshire schools
    and academies.
  • www.lgss.co.uk
  • www.northamptonshire.gov.uk - the traded services
    to schools page
  • There are no prices in the brochure for 2015/16 .
  • Bespoke charges will be sent to schools/academies
    who purchased LGSS services in 2014/15.
  •  
  • New customers  please contact LGSS for a bespoke
    charge info_at_lgss.co.uk

31
LGSS
32
LGSS 15-16
  • Summary of key changes to terms and conditions
    and buyback process
  • Annual offering published December 2014 - 3
    months notice (must be given by
    schools/academies)
  • No prices in the online brochure.
  • Existing customers - issued with a quote based on
    their current buy back. (If they wish to purchase
    the same services they do not need to do
    anything)
  • New customers - contact Customer Contracts team
    to request a quote (via the helpdesk)
  • Packages bought for a minimum of 1 year- an early
    exit fee will be payable
  • Schools and academies will be invoiced monthly.
  • Mandatory monthly direct debit - core charge
    spread across 12 months beginning April.

33
LGSS 15-16
  • One central contract to be issued to cover all
    service areas an academy has bought. (Central
    contracts for academies are yet to be agreed by
    the Project Board)
  • Annual customer satisfaction survey sent out in
    September
  • Performance reporting and customer satisfactions
    surveys used to inform the schools and academies
    service improvement plan.
  • Standard approach is developed for exiting LGSS
    and charges levied.
  • Pay As You Use services - a standard set of terms
    and conditions.
  • Customer Focused 
  • Customer satisfaction survey - October 2014 to
    bursars and headteachers
  • Introduce performance indicators for 2015/16
  • Attendance at the National Schools Board
    Foundation
  • Exit interviews to understand why a school or
    academy has left LGSS
  •   
  •  

34
LGSS 15-16
  •  Customer Satisfaction Survey Results
  • 47.95 considered our service to be excellent
  • 42.47 good
  • 4.11 satisfactory
  • 0 poor really positive and
  • 5.48 did not us our services.
  • The finance offer for 2015/16 has largely
    remained the same. There has been some minor
    refinement of the offer by rationalising some
    aspects of the packages offered
  • Enhanced and standard finance packages can be
    bought e,g a dedicated school finance system
    (SIMS), financial training, school fund
    administration

35
CFR Reporting 2013-14
  • Errors on submission
  • Schools not entering an e-mail address.
  • Opening Balances differed from previous years
    closing balances.
  • Notes not entered against Yellow warning
    triangles.
  • Positive amounts on income codes and negatives on
    expenditure

36
CFR Reporting 2014-15
  • Schools should be checking the current report is
    correct when compared to Oracle and the
    Cumulative Expense Analysis report.
  • Schools should be checking that the CFR
    apportionment has been actioned correctly
  • School should check the Validation report for
    codes not mapped and missing expenditure / PFI
    Charges / Bad Debt.
  • Schools should check that income codes are in
    credit and expenditure codes are positive.
    Usually due to accruals.

37
Budget Monitoring
  • Schools should be checking the current Oracle
    report and the Cumulative Expense Analysis
    report.
  • There has been issues with the budget top up file
    and where the budget was loaded onto Oracle so we
    would suggest the school completes a virement
    form to amend Oracle.
  • Dont forget to vire Pupil Premium as per the
    budget proposal form if appropriate. This
    process will need to be repeated when the 7/12ths
    funding is devolved in January.

38
Audit Points
  • Governance and Financial Management and
    Compliance with the Schools Financial Value
    Standard (SFVS) 2014/2015.

Governance and Financial Management Level of Assurance Governance and Financial Management Level of Assurance Governance and Financial Management Level of Assurance Schools Financial Value Standard Level of Assurance Schools Financial Value Standard Level of Assurance Schools Financial Value Standard Level of Assurance Schools Financial Value Standard Level of Assurance
Limited Moderate Substantial Not met Partly met Substantially met Met
8 1 6 0 12 3 0
39
Audit Points
  • The percentage of schools with limited assurance
    for Governance and Financial Management has
    increased from 23 in 2013/14 to 53 in 2014/15,
    these schools had weaknesses where management
    checks were either not in place, or were not
    consistently demonstrated. Therefore it was
    considered that schools were exposed to the risk
    of fraud.
  • An Income Policy was not in place in 27 of
    schools.
  • In 57 of the schools a school development plan
    was only in place for a one year period, schools
    were not planning one year in detail and two in
    outline.
  • Three year financial projections had not been
    completed in 27 of the schools.
  • In 40 of schools there was insufficient evidence
    that the Headteacher had checked that the budget
    and expenditure on the schools local accounting
    system had been reconciled to the NCC records on
    Oracle.
  • 33 of schools had not completed and approved a
    Business Continuity Plan.

40
Audit Points
  • In 33 of the schools there was no evidence that
    the Headteacher had completed checks that the
    Business Manager/Bursar had checked the payroll
    each month or that they had completed a
    management check on the reports to review
    payments to the Business Manager/Bursar to
    confirm that these were correct.
  • In 80 of schools Headteachers did not check that
    all income received in the school had been
    banked.
  • Although the Private Funds had been audited in
    all of the schools visited, in 27 of the schools
    the accounts had not been presented to the
    Governors.
  • 47 of the schools had not completed the Thematic
    Audit templates and had therefore not identified
    and been able to address weaknesses in their
    internal control environment.

41
Audit Points
  • Areas of Good Practice
  • A Pecuniary Interests Register was in place and
    updated annually
  • The roles and responsibilities for finance in the
    school were documented
  • The delegated authority for expenditure was
    documented
  • The approval of the budget by the Governing Body
    was minuted
  • The Governors minutes recorded discussion on the
    level of balances and their use
  • Financial Monitoring reports were provided at
    least three times per year
  • The outturn predicted in the monitoring
    reports/SIMS was the same or very similar to the
    actual outturn
  • Virements of budget were approved by the
    Governors
  • A Charging policy was in place
  • Bank reconciliations were completed monthly by
    the Bursar/Business Manager
  • The Headteacher checked the bank reconciliation
    each month
  • Procedures were in place for the purchase of
    goods and services
  • Quotations and tenders were obtained for high
    value purchases
  • There was a separation of duties in place for
    ordering and payment of goods and services i.e.
    at least two persons were involved in this
    process
  • The Private Funds accounts had been audited. 

42
Audit Points - SFVS
  • Last year there was a lot of chasing schools who
    had not  submitted by the 31st March.
  • Often this was because schools were waiting to
    approve the budget - but the return is on the
    current financial year i.e for 2014/15 so schools
    should not wait to approve the 2015/16  before
    submission - this is based on approval of the
    2014/15 budget so can submit at any time.
  • This can be completed and submitted to Governors
    for approval in January/February before year end
    and budget pressures.

43
Audit Points
  • The last thematic audit was on Purchasing and
    Payments and are currently awaiting the report to
    be finalised.
  • One point identified was that schools do not have
    a contract register in place or was not being
    updated. Schools should maintain a register of
    their contracts to keep track of renewal dates.
  • A blank one is available on our website under the
    Procurement for Schools section.

44
Tendering Quotes
  • Schools should be advised that
  • Two written quotations should be obtained for
    goods or services over 1000 and less than
    10,000 in value
  • Three written quotations should be obtained for
    goods or services over 10,000 and up to 30,000
  • Goods and services over 30,000 are subject to a
    formal tender process and
  • Evidence should be retained in the school to
    prove that best value has been sought and to
    demonstrate this to the Governing Body. 

45
Journals Virements
  • Please be aware that there are new forms to
    complete when submitting the above.
  • These can be found on the Schools Finance website
    under the forms library.
  • These should then be returned to Finance as
    attachments to e-mails.

46
Journals
47
Virements
48
Cash Advances
  • The plan is that 14-15 arrangements will continue
    in 15-16
  • One system where all maintained Primary,
    Secondary and Special Schools have 12 advances
    split between 12 in April 8 thereafter.
  • Schools regardless of payroll status receive all
    of their budget allocation in cash via monthly
    payments on a set date with any budget or other
    top ups also issued at the same time (new)
  • LGSS Payroll schools will have the salaries
    deducted from the advance.
  • Schools are notified monthly via email.

49
Housekeeping
  • Supplier Maintenance on FMS
  • Some schools are still using the NCC Audit and
    Financial Services address. This is not valid
    and schools should be using NCC Exchequer Fair.
    Please make the necessary amendments on FMS.
  • Salary Scales on FMS
  • The Teacher scales are now available from our
    website. Attached to the Personnel 7 update notes
    and how to action this on SIMS.
  • Still awaiting the outcome from the latest
    proposals with regards to support staff.

50
Top Tips
  • Old Bank Accounts still causing issues for year
    end bank reconciliations.
  • PC01 Z before description.
  • Have the journal wizard switched on as it will
    prompt bank account. Tools/User Options.
  • Preferred method for submittal to Schools
    Finance scan pages on mass not individually.
  • Commitments Full year including UIFSM.

51
Twitter
  • Schools Finance now has a twitter account
  • We can be found using _at_NCCschools
  • We plan to include key information as an when it
    happens regarding latest news and training.
  • Please follow us!

52

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