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Pro-Forma Financial Regulations

By Leo Harrison,2014-05-17 20:31
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Pro-Forma Financial Regulations

    BROOKVALE HIGH SCHOOL

    Financial Regulations

    Approved by Governors (date)……………………………………………..

    Signed on behalf of the Governing Body………………………………..

     Chair of Governors

    1

1. INTRODUCTION NTRODUCTION1. I

1.1. These financial regulations shall govern the financial arrangements

    relating to all of BROOKVALE HIGH SCHOOL School’s finances and accounts and

    were approved by the full Governing Body on ……………………………………..

    2. DELEGATED AUTHORITY ELEGATED UTHORITY2. DA

2.1 Under Leicestershire’s Scheme for Financing Schools, the Governing Body is

    responsible for the control of expenditure and income in accordance with the

    delegation of budgets and assisting Leicestershire Council in the discharge of its

    statutory duties.

2.2 The Governing Body has in turn delegated the governors’ financial

    responsibilities to the Finance Committee comprising:

    Julian Heubeck

    Ann Dunn

    Ken Ballard

    Richard Kuka

    Rob Fraser

2.3 The Headteacher shall be responsible for implementing agreed policies

    and maintaining day to day control of the school finances and accounts.

2.4 The School Business Manager shall assist the Headteacher in the

    discharge of financial responsibilities.

2.5. The following staff are designated as authorisers of

    (i) Salaries Documentation:

    Headteacher K. Rush

    (ii) Cheques

    Chair of Governors &

    Chair of Finanace Committee J. Heubeck

    Governor A. Dunn

    Headteacher or K. Rush

    Deputy Headteacher N Knocarevic

    (iii) Orders

    Head Teacher or K. Rush

    Deputy Head Teacher N Koncarevic

2.5 However, the Governing Body will remain accountable when governors’

    financial responsibilities are delegated.

    2

3. REVENUE BUDGET PREPARATION EVENUE UDGET REPARATION3. RBP

3.1 The school’s budget timetable for the next financial year shall be as follows:

    Autumn Term

    ? Identify commitments and new plans; agree priorities

    ? Agree staffing requirements

    ? Cost first draft of the budget, with the plan covering at least the next three years,

    and submit to governing body

    Spring Term

    ? Outline the budget plan, to be ready by the 31st March

    ? Adjust the budget to take account of the budget share notified by Leicestershire

    LA

    ? Submit to Governing Body for final approval

    ? Submit final approved budget plan to the LA’s Schools Finance Team by the 22

    May

3.2 The Finance Committee shall decide on the order of priorities from the School

    Development Plan.

3.3 The Business Manager shall prepare the detailed costings and submit them for

    approval to the Finance Committee.

3.4 All plans and budgets should be regularly reviewed during the year and all significant

    changes will require the approval of the Finance Committee.

3.5 The Headteacher shall inform the Local Authority of the school's revenue budget.

    This information should be supplied by the beginning of the financial year and

    updated for changes as necessary. If the school's revenue spend falls outside its

    budget plan should be submitted to the LA, corrective action must be taken where

    possible and the Headteacher will formally make the LA aware of the school's

    financial position as soon as practicable.

4. REVENUE BUDGET CONTROL EVENUE BUDGET ONTROL4. RC

4.1 The Governing Body shall decide how to use the budgets within the cash limit

    allocated. The Business Manager will be responsible for the control of spending

    against budgets. A commitment accounting system is in place to monitor current

    commitments and liabilities. If a curriculum cost centres budget is exceeded this will

    be allowed up to a value of ?50 and the matter will be referred to the SLT Link person

    for the curriculum area for discussion with the budget holder. Overspends exceeding

    ?50 will be recouped from the following year’s allocation.

4.2 As far as possible a budget monitoring report should be prepared monthly for the

    Headteacher and this report should be forwarded to the LA on a termly basis. A bank

    reconciliation and VAT analysis should be prepared as soon as the bank statements

    have been received (at least on a monthly basis) and forwarded to the LA as part of

    the monthly BA expenditure return. These returns should be prepared by the

    Business Manager and certified by the Headteacher. At the end of each term, a

    monitoring report on Standards Fund Grants must be prepared, for the Headteacher.

4.3 The Business Manager shall prepare a termly review of the budgets (including

    Standards Fund) and submit them to the Governing Body for consideration.

4.4 Budget holders will receive a monthly SIMS financial transaction report

5. VIREMENTS IREMENTS5. V

5.1 Substantial virements shall be approved and minuted by the Governing Body and

    should be within the agreed criteria and financial limits.

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5.2 The Headteacher is given delegated power to vire from one budget to another and

    shall seek approval from the Governing body retrospectively.

5.3 All virements exceeding ?5,000 or 2% of the budget shall require prior approval from

    the Governing Body.

6. AUTHORITY TO INCUR CAPITAL EXPENDITURE UTHORITY TO NCUR APITAL XPENDITURE6. AICE

6.1 The Headteacher is given delegated power to incur expenditure up to ?5,000 on any

    single item or issue within the financial year.

6.2 All expenditure exceeding ?5,000 shall require two signatories from the 'in house'

    staff. All expenditure exceeding ?10,000 shall require the prior approval of the

    Governing body.

6.3 All expenditure must be authorised by the designated staff.

6.4 Payment of invoices should be made through the school local payments system and

    from the school bank account.

6.5 The Governing Body may borrow money only with the written permission from the LA

    and the Secretary of State (i.e. external loans or bank overdrafts). The Governing

    Body needs to seek the LA (Education Finance) permission to enter into any

    arrangement, which commits the school to payments over a period of more than

    twelve months that exceed ?15,000. The school will look at ESPO leases where

    available, or seek comparable quotes from the Resources Department (Investments

    Section). Borrowing will include:

    ? Finance Leases

    ? Credit Arrangements

    ? Hire Purchase

7. LOCAL PAYMENTS SYSTEMS OCAL AYMENTS YSTEMS7. LPS

7.1 The School Business Manager shall be responsible for making all payments on behalf

    of the school.

7.2 All invoices passed for payment must be properly certified and evidenced by the

    relevant designated staff payments shall be made on original invoices only.

7.3 Before certifying an invoice for payment, designated staff must be satisfied that for

    the goods and services delivered:

    ? An official purchase order has been raised for the purchase

    ? That the delivery note has been checked

    ? That it is of correct quantity, quality and price

    ? That it has not been previously paid

    ? That funds are available in the relevant budget

    ? That the VAT chargeability on qualifying expenditure is shown

7.4 The Headteacher should carry out selective invoice checking termly to ensure that all

    sums which the designated staff have certified for payment were legally and properly

    payable.

7.5 The Governing Body is permitted to use their budget share to meet the cost of capital

    expenditure on the school premises. If the expected capital expenditure from the

    budget share exceeds ?15,000 within one year, the Governing Body will notify the

    Local Authority and take advice from the Chief Education Officer on proposed

    expenditure.

    4

8. ORDERS FOR GOODS AND SERVICES RDERS FOR OODS AND ERVICES8. OGS

8.1 Staff may order goods and services from whatever reputable source they see fit; but

    will be expected to take into account quality and value for money.

    8.2 An official order must be made in writing on the school’s official order form for all

    expenditure on goods and services initiated by the school. The only exception to this

    will be for the catering staff.

8.3 Orders must be completed in accordance with the following procedures:

    ? Authorised by designated staff only

    ? Show estimated prices on the order form

    ? Sent to the supplier through the School Finance Officer

    ? If placed by telephone, written copy of order with estimated prices must be given

    to the School Finanace Officer.

    ? Telephone orders should be followed up by a confirmation order by the next

    working day if possible

8.4 Copies of all orders should be retained on file until delivery and payment.

8.5 Where ESPO is used for procurement of goods and services it is not necessary to

    seek alternative tenders.

8.6 Three written quotes should normally be obtained for all goods and services in excess

    of ?6,000, unless no other equivalent goods or services are available, or where

    Governors have previously committed themselves to a particular service/supplier,

    brand/type of goods.

8.7 For building works expected to cost in excess of ?10,000, three tenders will normally

    be obtained

8.8 Where tenders have been obtained a tender form will be completed showing those

    invited to tender, those tendering, the successful tender and the reasons for

    accepting the tender (in those circumstances where the cheapest tender is not

    accepted).

    8.9 Under the Authority’s Constitution, all purchases estimated to exceed ?50,000 should

    be put out to formal tender. The Education Finance Service is able to give more

    advice to schools on tendering procedures where required. Any proposal not to put

    a contract of over ?50,000 out to formal tender should be authorised by the

    Governing Body. (Advice should be sought from the Clerk to the Governors in

    relation to reporting requirements, to ensure commercial confidentiality.)

8.10 Schools entering into high-value contracts should also be aware of EC procurement

    regulations.

9. CASH ACCOUNTS ASH CCOUNTS9. CA

9.1 Small items of expenditure not exceeding ?50 will be made from the petty cash

    account.

9.2 The School Finance Officer shall ensure that all petty cash payments are properly

    recorded and authorised; and supported by receipts.

    5

10. TRAVEL AND SUBSISTENCE RAVEL AND UBSISTENCE10. TS

10.1 Payment shall be made in accordance with the National Scheme/school rate, as

    appropriate.

10.2 Car user allowances, both casual and essential, will be paid centrally through the

    private payroll provider who, in turn, will make a return to the Inland Revenue. (Home

    to office is taxable)

10.3 The School Business Manager shall inform the Inland Revenue of casual car user

    allowances for home to base, which are paid locally, at the end of each month.

11. SALARIES, WAGES AND PENSIONS ALARIES AGES AND ENSIONS11. S,WP

11.1 The Governing Body is responsible for the salary and wages costs of all teaching and

    support staff employed to work at the school.

11.2 However, the contract of employment is between the employee and Leicestershire

    County Council.

11.3 The School Business Manager must ensure that the school provides the necessary

    information and returns to its chosen payroll provider to effectively administer the

    payroll and related staffing procedures.

12. CONTRACTS ONTRACTS12. C

12.1 The school will enter into contracts for the provision of goods, services, materials and

    work within the procedures laid down by Leicestershire County Council’s Standing

    Orders, as amended for schools.

    13. INCOME NCOME13. I

13.1 Income should be collected in advance wherever possible to improve cashflow.

13.2 The School Business Manager must maintain records of all income received/due;

    acknowledge receipt of income; and bank all monies promptly and intact into the

    School’s bank account.

13.3 The Governing Body has delegated powers to write off debts up to ?250. In the case

    of larger debts the school must consult with the Head of Education Finance at the

    Local Authority.

13.4 The Governing Body shall approve a charging policy for all income generation.

13.5 The school may retain income received from the sale of assets purchased with non-

    delegated funds. The sale of assets purchased with delegated funds must be decided

    by the Local Authority, or if the asset concerned is land or buildings forming part of

    the school premises and is owned by the Local Authority.

14. BANK ACCOUNTS ANK CCOUNTS14. BA

14.1 The Governing Body shall authorise the opening and closing of all bank accounts.

14.2 New Bank accounts may only be opened from the approved list supplied by

    Leicestershire. New bank arrangements may only be made effective from the

    beginning of each financial year.

14.3 The following procedures must be followed:

    6

    ? Dual signatories for all cheque payments over a value of ?5,000 (Primary Schools)

    ?10,000 (Secondary Schools)

    ? Cheque signatories are the Headteacher, Deputy Headteacher, School Governor.

    ? The School Business Manager shall ensure that bank statements are received

    monthly and reconciled to accounting records

    ? The School Business Manager shall investigate and resolve all discrepancies

    ? The School Business Manager shall be responsible for cheque ordering and

    custody of unused cheques

14.4 Under no circumstances shall private cheques, money or postal orders be cashed

    through the school disbursement account or voluntary funds.

14.5 In no case shall money, cheques, etc. belonging to the school be paid into a private

    bank account.

14.6 The School Business Manager must ensure, where possible, that the total amount of

    cash, including disbursements and voluntary funds, held on the premises shall not

    exceed ?2000.

14.7 Cash should be banked at least once per week, and the value of cash held on the

    premises should not exceed the insurance limit. Cash will be taken to the bank by a

    responsible member of staff. (Business Manager, Finance Officer assisted by

    Premises Manager) or cash collection company.

15. CARRY OVER OF SURPLUS/DEFICIT ARRY VER OF URPLUSEFICIT15. COS/D

15.1 Any surpluses at the end of the year will be carried over to the following year.

15.2 The Governing Body must inform Leicestershire County Council immediately if a

    deficit is anticipated in the current year.

16. TRUST FUNDS AND INVESTMENT RUST UNDS AND NVESTMENT16. TFI

16.1 The Governing Body shall authorise all investment of money under its control.

    Investment of Building Society and Bank Deposit Accounts shall be in the name of

    Leicestershire County Council and the school.

    17. LEASING EASING17. L

17.1 The Governing Body must ensure that all leasing agreements involving prescribed

    capital expenditure are approved by the LA (Education Finance) prior to making any

    contractual arrangements.

18. INSURANCE NSURANCE18. I

18.1 Insurance will be required for Governing Body; third party liabilities (if delegation

    taken), premises and equipment; and school trips.

18.2 The Governing Body must ensure that all insurance cover is adequate.

18.3 The Governing Body will meet the excess from insurance claims or any losses not

    covered by insurance.

18.4 The Governing Body shall inform the school’s insurers of all accidents, losses and

    incidents that may give rise to an insurance claim. The School Business Manager will

    maintain a register of all accidents, losses and incidents.

    7

    19. HEALTH AND SAFETY EALTH AND AFETY19. HS

19.1 The Governing Body must ensure that all staff comply with the Health and Safety

    regulations.

19.2 The Headteacher will report significant injuries to all persons, including

    staff/parents/pupils/visitors.

20. PROTECTION OF PRIVATE PROPERTY ROTECTION OF RIVATE ROPERTY20. PPP

20.1 The Headteacher must inform all persons concerned that all private property taken

    onto the school premises will be at the owner’s risk.

    21. INVENTORIES AND STOCK NVENTORIES AND TOCK21. IS

21.1 The Headteacher is responsible for the management of the school’s assets and the

    School Business Manager will maintain a record of stock receipts and issues.

21.2 The inventory must be regularly updated in respect of purchases and disposals.

    Attractive, portable items having a value less than ?250 but over ?50 should also be

    controlled/monitored.

21.3 The Headteacher should ensure that items that become obsolete or surplus to the

    school’s requirements are disposed of economically.

21.4 The Headteacher shall ensure that stock takes of inventories and stores are

    undertaken annually in July and certified by her.

22. SECURITY ECURITY22. S

22.1 The Headteacher is responsible for the security of the school’s premises and

    equipment.

    23. UNOFFICIAL FUNDS NOFFICIAL UNDS23. UF

23.1 The Governing Body shall ensure that all unofficial funds are properly controlled and

    audited annually, and presented to the Governing Body within 6 months of the year-

    end.

24. FINANCIAL IRREGULARITIES INANCIAL RREGULARITIES24. FI

24.1 The Headteacher shall inform Leicestershire County Council (Head of Education

    Finance or Head of Internal Audit) of any circumstances where a financial irregularity

    is suspected.

24.2 The Governing Body accepts that a suspected financial irregularity exists when:

    ? Leicestershire County Council’s Standing Orders, Financial Regulations (as

    amended for schools) or the Scheme for Financing Schools are not complied with

    (whether or not the Council suffers a financial loss)

    ? An employee gains unauthorised financial benefit from his/her association with

    the Council.

    25. INTERNAL AUDIT NTERNAL UDIT25. IA

25.1 The Governing Body must ensure that the Council’s internal auditors and external

    auditors are allowed access to staff, premises and documents, as necessary.

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25.2 The Governing Body shall discuss all audit reports and agree the implementation of

    audit recommendations with the Headteacher.

26. DOCUMENT RETENTION OCUMENT ETENTION26. DR

26.1 The Headteacher shall ensure that documents are retained for periods in accordance

    with the requirements of the District Auditor, the Inland Revenue and Customs and

    Excise.

27. GIFTS AND HOSPITALITY OFFERED BY SUPPLIERS IFTS AND OSPITALITY FFERED Y UPPLIERS27. GHOBS

27.1 Ordinarily such gifts should be rejected, unless they are of negligible value (e.g.

    diaries, calendars). However, any gifts or hospitality in excess of ?25 should be

    reported to the Headteacher in order to protect the individual receiving the gift. This

    is particularly important where the person receiving the gift is a budget holder, has the

    ability to influence purchasing decisions or regularly receives reimbursement from the

    college for items other than travel expenses.

28. REGISTER OF BUSINESS INTERESTS EGISTER OF USINESS INTERESTS28. RB

28.1 A register of business interests is maintained by the school. The LA advises that this

    be completed by all Governors and those staff with significant financial responsibilities.

    It is suggested that this be cheque signatories, finance staff and those members of

    staff with specific budgetary responsibilities (e.g. Heads of Department, curriculum

    area leaders). Entries in the register should be kept up-to-date and, in all instances,

    be reviewed and amended (where relevant) on at least an annual basis. This annual

    review can be evidenced simply by staff re-signing and dating existing declaration

    forms, making any amendments as necessary.

29. COMPUTER SYSTEMS AND DISASTER RECOVERY PLANS OMPUTER YSTEMS AND ISASTER ECOVERY LANS29. CSDRP

29.1 Computer systems used for school management should be protected by password

    security to ensure that only authorised staff have access. Passwords should be

    changed regularly and updated for staff changes. Passwords should be changed

    termly.

29.2 The headteacher should ensure that data is backed up regularly and that all back-

    ups are securely held in a fireproof location, preferably off-site.

29.3 The headteacher should establish a recovery plan to ensure continuity of financial

    administration in the case of emergency.

29.4 The headteacher should ensure that systems are in place to safeguard school

    software and data against computer viruses. To prevent viruses being imported, only

    authorised software should be used.

29.5 The governing body should ensure that the school has written descriptions of all its

    financial systems and procedures. These should be kept up to date and all

    appropriate staff should be trained in their use.

29.6 The headteacher should ensure that financial control is maintained in the absence of

    key personnel through staff training or by arranging job shadowing.

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