NEW PRINCIPALS’ TRAINING

1. NEW PRINCIPALS’ TRAINING Managing School Finances October 2008

2. Facilitators • Lisa Cross • George Blackam

3. Learning outcomesBy the end of the course on financial management, new principals should: • Have a better appreciation of their roles and responsibilities in relation to financial management • Understand the budget setting environment including the LMS Common Formula and Centrally held budgets • Understand the necessity for financial planning and the timescales involved

4. Learning outcomes cont.. • Know where they can get support and further help • Have an understanding of the 3 year planning process • Feel confident about their knowledge of what is involved in financial management

5. ROLE OF LMS • to provide high quality financial planning and management information to meet the needs of School Principals and Boards of Governors of schools.

6. Role of the Governors • Plan and control use of resources • Contain expenditure within approved budget • Manage resources economically, effectively and efficiently • Establish proper financial controls • Financial management: planning, reviewing, monitoring and forecasting • AFFORDABILITY

7. Principal must • Keep all governors informed on a regular basis • Have finance on the agenda for each BoG meeting • Work closely with finance committee • Manage the responsibilities that have been delegated to them by the BoG

8. OBJECTIVE OF COMMON FUNDING FORMULA (CFF) “To ensure that schools with similar characteristics receive similar levels of funding regardless of the area or sector in which they are located.”

9. GENERAL SCHOOLS BUDGET

10. Sources of Funding Schools delegated budget is determined by LMS Common Formula Funding – DE MAIN DRIVERS • Pupils Nos • Premises Factor • Targeting Social Need • Small Schools Support • Teacher Salary Protection • Others £

11. AWPUs 2008-2009 (£1,966) Funding Per Capita • Nursery £3,405 • Primary £2,570 • Secondary £3,991 • Grammar £3,545

12. CONSULTATION Proposed Factor Changes Primary AWPU 1.05 Foundation Stage Funding Assistance for Teaching Principals

13. Closing Date for Submissions • Return to Board 12 December 2008 • Return to DE 19 December 2008

14. Central FundingBoard Funded Items (Non Delegated) • Teacher Substitution Costs • Special Educational Needs • Contingency Funding • Curriculum Reserve Fund • Other £

15. Capital Funding £ • Minor Works ( up to £500k) - Apply through Property Services - Priority Assessment, eg Health and Safety • Disability Access Funding • Virement from LMS Budget (>£15k)

16. Sources of Funding cont Earmarked Funds • Time Bound • Specific Project • Delegated Budget • Tracking expenditure £

17. External Funds • Heritage Lottery Funding • Tesco Charity Trust • Big Lottery Funding • Young Roots £

19. 2009/10 FINANCIALCYCLE PROCESS OCTOBER SchoolForwards census information to DE via C2k and forwards paper copy to SEELB 10October 2008 - Funding for 2009-2010 financial year NOVEMBER LMS Send out Staffing List for2009-2010 financial year School Reviews, amends and returns JANUARY LMSValidation of Annual Census Data to DE FEBRUARY DE Run Common Formula Funding  Budget Share LMS FEBRUARY/MARCH DE Run Common Formula Funding  Budget Share LMS Send out Budget Statement to schools Issue Financial Information using figures confirmed by school for staffing complement plus an estimation of running costs Issue additional budget allocations and notes for guidance for completion of budget allocation form and three year plan School Review projected position Make Amendments, as appropriate Date for Redundancy April School completes budget allocation form and three year plan from website - SignS, date and return to Board by required date MAY – SEPTEMBER MAY/JUNE LMS Final reports available on LMS website Upload budget allocation onto Board financial system AUGUST LMS Three year plans are signed off by the SEELB and letters are forwarded to schools SEPTEMBER SEELB Contacts schools that have raised financial concerns

20. FINANCIAL PLANNING • Two elements that need to be closely linked: • School Development Plan • School Financial Plan

21. FINANCIAL REPORTS

22. REPORTS • Budget and Expenditure Report • Staffing Report • Detailed Transaction Report (M3) • Journal Adjustment Report (M4) • Detailed Transaction Report (M20)

23. Budget Monitoring • Reports issued monthly • Summary and Detail available • Available on Website • Access from home if desired • Review every month

24. IN YEAR ADJUSTMENTS • deal with emergencies • change of plans • need to keep balanced budget

25. C2k/FMS SYSTEM • Used in Schools for • - Raising orders • - Entering invoices • - Reconciliation to Board system • Can generate a range of reports that may supplement Board issued reports • Must be kept up to date and reconciled

26. ACTIVITY ONE Report Reading

27. LUNCH

28. ACTIVITY TWOPREPARING FOR BUDGET SETTINGWhat, Why, Where?

29. Budget Allocation Form • Total Resources Available 2009-10 • Total Projected Spend for 2009-10 • Projected End Of Year Balance March 2010 • Agreed expenditure transferred to Budget Allocation Form • Budget Uploaded onto Financial System

30. 3 YEAR PLAN • 2 & 3 - Amend pupil nos. Increase/Decrease budget by rise/fall in pupils x per capita • Expenditure assumed constant • Amend additional expenditure/savings as appropriate • Review Outcome

31. DE WORKBOOK • Requirement from Department of Education • Surplus Deficit 5% or £75,000 of delegated budget (whichever is the lesser) • Re- assessment throughout the year by Department of Education • School Performance Review Group

32. Green Achieved within 5% or £75,000 whichever the lesser all three years of plan Yellow Substantially achieved but outside 5% of £75,000 limit in any one year (minor concerns) Amber Significant Concerns. Increasing surplus/deficits – outside limit – query over figures/pupil nos, Board officers will contact school Red Unacceptable outside the limits. Action plan needs to be agreed with school 3 YEAR PLAN

33. NORTHERN IRELAND SUBSTITUTE TEACHER (NISTR) REGISTER • Centralised qualification and criminal record checks • Integrated TR140 timesheets  • Increased choice – access to regional database of substitute teachers • System matches cover requirements against teachers on register who are available on dates required • Teachers' calendars updated on confirmation of bookings • Provides information on previous work experience and expertise • No cost to schools - the register is being funded centrally

34. PLANNING FOR THE FUTURE

35. EXPECT THE UNEXPECTED • What is the future enrolment trend? • Has your school any outstanding commitments? • Are there any options available to reduce variable costs?

36. POINTS TO CONSIDER • Is there a strong link between the school development plan and the financial plan? • Are you familiar with your school’s budget setting and monitoring arrangements? • Do proper financial controls exist?

37. QUIZ

38. Learning outcomes • Have a better appreciation of their roles and responsibilities in relation to financial management • Understand the budget setting environment including the LMS Common Formula and Centrally held budgets • Understand the necessity for financial planning and the timescales involved

39. Learning outcomes cont.. • Know where they can get support and further help • Have an understanding of the 3 year planning process • Feel confident about their knowledge of what is involved in financial management

40. Sources of Information • Three Year Financial Plans • Budget Allocation Forms • Budget Statements • Outturn Statements • Training Slides www.seelb.org.uk • Monthly Financial Reports lms.nielb.com • Common Formula Funding Scheme www.deni.gov.uk • C2k/FMS Kathleen Dobbin 028 9027 9029

41. LMS CONTACTS Lisa Cross 028 9056 6337 George Blackam 028 9056 6531 Suzanne Kerr 028 9056 6530 Nursery and Post Primary Stephen Baker 028 9056 6406 Harry Campbell Controlled Primary Schools Fidelma Ward 028 9056 6409 Ann McQuillan Maintained & Integrated Primary Schools Jacqui Wade 028 9056 6405 Mark McKaig

42. Open Forum • Questions • Evaluation • Close Questions