NEW PRINCIPALS’ TRAINING

1. NEW PRINCIPALS’ TRAINING Managing School Finances October 2009

2. Facilitators • George Blackam • Alan Brannagan • Stephen Baker

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 • Foundation Stage • Primary Principals Release Time • Others £

11. AWPUs 2009-2010 (£2,020) Funding Per Capita • Nursery £3,524 • Primary £2,809 • Secondary £4,097 • Grammar £3,641

12. CONSULTATION Proposed Factor Changes Primary AWPU 1.06

13. Closing Date for Submissions • Return to Board December 2009 • Return to DE December 2009

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 9October 2009 - Funding for 2010-2011 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 Complete final year end projections and complete final checks on staff costs in preparation for issue of staff cost projections and expenditure projections. 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 ESA reports website Upload budget allocation onto ESA financial system AUGUST LMS Three year plans are signed off by ESA and letters are forwarded to schools SEPTEMBER ESA 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. Activity 3 • Financial Planning • Budget Allocation Form • Three Year Financial Plan

30. Budget Allocation Form • Total Resources Available 2008-09 • Total Projected Spend for 2008-09 • Projected End Of Year Balance March 2009 • Agreed expenditure transferred to Budget Allocation Form • Budget Uploaded onto Financial System

31. 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

32. 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

33. 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

34. 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

35. PLANNING FOR THE FUTURE

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

37. 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?

38. QUIZ

39. 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

40. 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

41. 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

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

43. Open Forum • Questions • Evaluation • Close Questions