Fully Funded Workshops Forrest Centre, Marston

1. Fully Funded WorkshopsForrest Centre, Marston Tuesday 1st March 8.30am – 12.30pm Tuesday 15th March 1-5pm Tuesday 22nd March 8.30am – 12.30pm

2. Agenda • Introductions • Fully Funded Scheme and returns • 2010-11 year end arrangements Closure of Imprest & petty cash accounts – Gill Clarke • 2011-12 arrangements Reconciliations Bank Account Advances – Gezim Leka • VAT – Parmjit Teji & Connie Bentley • RM – Ann Mathers • SIMS • Payroll & HR- Karen Damiano • Audit – Roger Willoughby • Questions & Answers

3. Working Group set up with LA officers from Payroll / HR / Finance / Audit / VAT Exchequer Services / Income / Treasury • Folder contains all handouts / slides / and guidance from workshop • Further copies available on the Learning Portal

4. Useful Contact Numbers • Audit – Roger Willoughby 0300 300 6235 • Cashiers – Shelia Garner 0300 300 4332 • Exchequer -Central Payments Team 0300 300 8156 • VAT – Connie Bentley 0300 300 4554 • Bank Accounts – Parmjit Teji 0300 300 4081 • Monthly Advances - Gezim Leka 0300 300 6162 • Bursary Service - Ann Mathers 0300 300 6008 • Payroll Reports - Karen Damiano 0300 300 6141 • RM Helpdesk 0300 300 5777 • Natwest – Corporate Service Team 0845 308 8969 • Capita – Michelle Armstrong 0788 1515 366

6. FF Scheme – Annual Timetable • By 15th of following month I&E of income & expenditure for previous month • System print as back-up to I&E figures • Updated Cashflow • By 10th of July / October / January / April Salaries & Wages return • Year end requirements • All new fully funded schools will be monthly reporting in first year then possibility of going quarterly in second year.

7. FF Scheme – Budget Plan & documents Returns for 31st May • 2 year budget plan (can use budget plan template / I&E template or CFR report from FPS). Contingencies = net assets/Public funds amount on balance sheet • Salary back-up • Projected cashflow with bank balance agreeing to that on balance sheet • Projected balance sheet • LD application & Recovery plan if needed

8. Balance Sheets • List of all assets owned and all liabilities owed by a school at a particular date • Monetary amounts are attributed to each of the assets and liabilities – balances on balance sheet accounts will be carried forward

9. Balance Sheet • Asset - Something valuable which the schools owns or has the use of • Stock • Bank Balance • Debtors – items owed to the school (will include VAT at year end for previous month) • Liability - Something which is owed to somebody else: • Loan • Goods purchased but not yet paid for

10. Balance Sheets • The balance sheet is comprised of the Assets and Liabilities • The net expenditure or balance of the Income and Expenditure account also forms part of the balance sheet • The figures entered are rounded Balance Sheet £ Assets Stock Bank Debtors VAT Debtor Petty Cash Liabilities Creditors ( ) Net Assets ______ (Assets less liabilities) Net Expenditure ______ Taken from I&E Statement

11. Projected Year End Balance Sheet • Include estimated debtors & creditors (could base on last year) • Estimate VAT ( could base on 1st return in April 2011) • Bank balance from projected cashflow • Stock can assume fully used when spent so show nil.

12. Cashflow • Projected cashflow to be submitted by 31st May • Update each month for actuals submit to SFA with I&E. • Review remaining months actuals to see if any payments or income that was estimated to be received in past month wasn’t, and needs to be built into following months. • Year end cashflow will agree to bank balance, not to balance c/f due to year end accruals.

13. Cashflow • Cash is cash in hand plus bank balances • Cash Flows are inflows and outflows of cash • Movements between different cash types are not included in a cash flow e.g. a cheque drawn for petty cash • Cash flow does not include debtors and creditors (the Income and Expenditure statement does)

14. Cashflow • Template on website • VAT must be accounted for – be aware of timing differences • Payroll payovers usually the proceeding month • Advances are monthly • Cash flow balance at end of month must balance to Cash Book

15. FF Scheme -Monthly Returns • I&E (template on website) from system print showing actual income and expenditure to end of previous month and current budget plan. Should be completed on accruals basis. Think about materiality and de-minimus limit for accruals • System print agreeing to I&E (BvsAvsC for RM or trial balance report for SIMS) • Cashflow shows actual payments out of the bank account for previous period and budgeted payments & income for remainder of year. Completed on cash basis – no accruals • VAT Claim

16. FF Scheme –Quarterly Salaries & Wages Return • Statutory government return • Quarterly return giving actuals paid out on salaries & wages. • Deadline is for LA to achieve its deadline to central government • Programme deadlines into work schedule in order to meet them

17. 2010-11 Year End • Any invoices to be paid out of 2010-11 must be with Exchequer Services by 12 noon on 25th March • Any received after that date will be returned to schools for payment out of 2011-12 bank account. • Schools can then accrue if necessary. Submission deadline to SFA by 8th April • Keep year end accruals to a minimum • Only material accruals over £1,000 to be submitted to SFA • Those under de-minimus level may not be processed by SFA and re-jected by Chief Accountant

18. 2010-11 Arrangements – Closure of Imprest & Petty Cash Account • Final claim must be with Exchequer Services by 12 noon on 25th March • Any receipts from staff not included in final claim will have to be held over until after 1st April and paid out of 2011-12. • Cash in hand declared on final claim must agree with cash paid into central bank account • Income clearly marked “Repayment of Imprest or Petty Cash Account Cash Balance”

19. 2010-11 Arrangements – Closure of Imprest and Petty Cash Account • Must complete cash management sheet but with NO GL or COST Centre • Cross through any remaining cheques so cannot be used, and store in school • Accounts will be closed by LA

20. 2010-11 Arrangements- Income • Final date for payment of income into central bank account is 29th March, must submit cash management sheets. • After that date keep income in safe and pay into bank account after 1st April • Can accrue if over £1,000 • Large amounts received between 29th & 31st can be paid in, if emergency. • NB be aware of insurance limit of safe.

21. 2010-11 Payment of Year end Balances • After submission of CFR data when final balances have been agreed, underspends will be transferred to bank accounts • Underspends will be net of accruals • Overspends if licensed will be converted into loans – no interest charged. Unlicensed deficits deducted from bank advance. • Letter will be sent confirming how balance has been calculated • Both revenue & capital balances will be paid over

22. Advances into Bank Accounts • Follow standard profile of payments in FF scheme • 2 payments in April Initial 1/36 & main 1/12 • May to February 1/12 • March remaining balance 2/36 • Payment Schedule breaks down advance into constituent parts (SBS/Rates/Threshold/YPLA/Jt Use/SEN) • In year changes profiled over remaining months advances, schools will be sent revised profile to follow • Formula Capital once a term June 5/12/Sept 4/12/Jan 3/12

23. Advances into Bank Accounts • Follow schedule when paying into local system – CFR codes • Further guidance on system entries from software helpdesks • Can submit cashflow if have large capital payment and need to amend profile of devolved formula capital payments

24. 2011-12 Arrangements • Cheque books & paying in books available for collection today – pleasedon’t usebefore 1/4/11 • Authorisation of invoices in school in normal way. Keep invoices in school do not submit to LA. • Cheques to be written out and signed by authorised individuals listed on bank mandate. • Income paid into account • Petty Cash can be drawn from this account

25. 2011-12 Arrangements - SAP • No longer requirement for school to reconcile local system with sap and submit copy of reconciliation to SFA as school is prime record holder. • No further sap autorec files will be sent to schools • SAP reports will continue to be emailed but they will only show SFA uploads of your monthly reports along with budget plan. Our responsibility to ensure SAP = School

26. 2011-12 Arrangements - SAP • No further requests with back-up to SFA for re-codes between CFR or GL codes – these to be done in school. • No further requests for payroll re-codes, if coding on establishment print is wrong, post to correct one on local system.

27. Bank Reconciliation • Each month items appearing on the bank statement are reconciled. • The Bank Statement balance is checked against the cash book balance on local system • The difference will be cheques drawn and cheques/cash paid into bank but not yet appearing on bank statement • This check should be carried out every month using appropriate reports from system (unreconciled transaction listing)

28. Bank Reconciliation • Must not allow bank account to go overdrawn. • Must complete bank reconciliation promptly on a monthly basis, no need to submit to SFA. • Signed by Headteacher. • Unreconciled items for 2 months reported to headteacher • With NatWest, schools can have access to ‘VIEW ONLY’ bank account on line. • Cost – application to bank • NO CHAPS/BACS payments at present

29. Bank Reconciliation • Helpsheet available for RM schools on learning portal • SIMS schools contact software helpdesk • At year end need to submit final bank rec for year and copy of final bank statement

30. VAT • All Central Bedfordshire Schools still come under the Central Bedfordshire Vat banner. • Vat returns should be sent on a monthly basis to the Vat Officer based at Technology House by the 10th of the month and signed by the head teacher • With regards to preparing your Vat return you should follow the guidance from your software provider • There will be no change to the way you code your invoices. for example if something was coded to V8 (input tax standard rate) previously it will still be coded as V8 now • If the Vat amount on an invoice is not 20%, 17.5%, 15%, or 5% a copy of the invoice should be attached to the Vat Return • . • If there are any queries on the vat return, the vat officer will contact the school either by phone or e-mail

31. VAT -You should keep all documentation for 6years plus current year. • If there are no queries, the Vat will be reimbursed to the school on a monthly basis, usually in the first week of the month, the first reimbursement will be June. • You cannot recover vat if you purchase something direct from your private funds. You can however, register your private funds for vat in its own right if the turnover for the previous year is more than the current threshold of £70K. HMRC will issue the school with its own Vat registration number for this purpose. The school will need to complete a separate Vat return for this and submit it directly to HMRC.

32. VAT • FURTHER GUIDANCE AND INFORMATION THAT CAN BE FOUND ON THE LEARNING PORTAL • The full Central Bedfordshire Vat Guide will be published on the schools website by 1st April • Schools frequently asked questions • Guidance for VA schools • Penalties that may be incurred VAT • Summary sheet for SIMS Schools

33. VAT SOME USEFUL NUMBERS • Our Vat Registration number is - 946 8171 86 • Parmjit Teji Senior Financial Advisor - Treasury Management: - Telephone 0300 300 4081 • Connie Bentley Financial Advisor – Vat Telephone 0300 300 4554 • Emma Burton Senior Financial Manager - Strategy. Telephone 0300 300 4803

34. VAT AND FINALLY • We also subscribe to Vat helpline – Elysian Associates, for any questions that the Vat Officer cannot answer

35. RM Schools • New datafiles will be available for schools to download from the Learning Portal: www.learning.centralbedfordshire.gov.uk go to the Administrators Tab and then RM Finance • NEW datafiles to be used from the 1st April 2011 – Schools will need to set up Suppliers/Income Sources/Budget codes specific to the school • Year end will need to be completed on your old datafile to agree your balances to SAP for 2010-11 • Instructions on how to complete your month end bank and VAT Returns will be available for schools to down load.

36. G2 Finance Schools • Continue to use current database • Instructions will be issued regarding setting up a new bank account and the payment process • Instructions on how to complete your month end bank and VAT Returns will be available for schools to down load. • Further guidance to be issued shortly.

37. SIMS Schools • Have informed Capita of change. • They were emailing schools with details in preparation for 1st April. • Contact Michelle Armstrong Customer Services Manager Mobile:  0788 1515 366 Email:  michelle.armstrong@capita.co.uk

38. Payroll & HR • All Staffing timesheets to be coded to the schools cost centre ending in 3 NOT 1 • Payroll will be invoiced monthly with a direct debit deduction from the schools bank account

39. Payroll • Draft Report issued mid-month, opportunity to feed back queries to payroll – please check this closely and authorise in school. • Final Report issued end of month with the actual payroll that has been paid. Please ensure this is authorised. • Quarterly Salaries & Wages return is required and it is important to meet the deadline for submission as it feeds into CBC statutory government return. Please programme into the schools work schedule.

40. Payroll • Buyback from CBC – Serco Scheme says that where LA’s payroll supplier used, statutory returns relating to payroll financial statements are completed • A notice period will need to be given if the school wishes to go to an alternative supplier

41. Payroll Where a school elects to use an alternative payroll provider all associated responsibilities will rest with the school. Further details in CBC’s Finance Regs.

42. 2011-12 Arrangements - Governors • Keep Governors informed of changes • Need to approve revised Finance Manual • Reports to Governors now include Cashflow • Appointment of a Responsible Officer (not chair of finance) but likely to be a member of finance committee • Useful document was R32 ‘Financial Guidance for Governors’ from old FMSiS

43. 2011-12 Arrangements – Responsible Officer • Balances out some of the risks associated with full financial delegation • visits to randomly select cross section of accounts and systems to check. Report back on findings to Finance Committee or full governors. • Enhances schools financial management arrangements. • Provides governing body with independent assurance as the satisfactory operation of the schools finance systems.

44. Audit • School becomes prime record holder, refer to guidance on website for retention of documents • Segregation of duties between person authorising invoice, and person writing out cheque. • Security of cheque books in schools • Questionnaire for fully funded schools available on learning portal

45. Finance Manual • Schools Finance Manuals will need updating for the changes in procedures • Governors need to approve and their recommendations should be included in Governors minutes.

46. General • Securicor Contract – schools should look at their existing contracts and make any changes as necessary – further guidance available shortly • SFA’s will check & challenge as necessary schools returns to ensure they agree to submitted system prints • Schools quarterly will receive interest on bank balances, credit to I08 4199100

47. Any Questions? www.learning.centralbedfordshire.gov.uk