BROOKVALE HIGH SCHOOL
Approved by Governors (date)……………………………………………..
Signed on behalf of the Governing Body………………………………..
Chair of Governors
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
2.2 The Governing Body has in turn delegated the governors’ financial
responsibilities to the Finance Committee comprising:
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
Chair of Governors &
Chair of Finanace Committee J. Heubeck
Governor A. Dunn
Headteacher or K. Rush
Deputy Headteacher N Knocarevic
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.
3. REVENUE BUDGET PREPARATION EVENUE UDGET REPARATION3. RBP
3.1 The school’s budget timetable for the next financial year shall be as follows:
? 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
? Outline the budget plan, to be ready by the 31st March
? Adjust the budget to take account of the budget share notified by Leicestershire
? Submit to Governing Body for final approval
? Submit final approved budget plan to the LA’s Schools Finance Team by the 22
3.2 The Finance Committee shall decide on the order of priorities from the School
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.
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
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
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
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
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
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
9. CASH ACCOUNTS ASH CCOUNTS9. CA
9.1 Small items of expenditure not exceeding ?50 will be made from the petty cash
9.2 The School Finance Officer shall ensure that all petty cash payments are properly
recorded and authorised; and supported by receipts.
10. TRAVEL AND SUBSISTENCE RAVEL AND UBSISTENCE10. TS
10.1 Payment shall be made in accordance with the National Scheme/school rate, as
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
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
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:
? 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
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
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
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.
19. HEALTH AND SAFETY EALTH AND AFETY19. HS
19.1 The Governing Body must ensure that all staff comply with the Health and Safety
19.2 The Headteacher will report significant injuries to all persons, including
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
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
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-
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
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
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.
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
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
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.