Finance admin sessions

1. Finance admin sessions Presented by David Dilling - with guests November 2012

2. Proposed agenda – not correct order! • BACS – An apology about the slow progress • Audit – An update of common issues in recent audits • Team update – The latest staffing news from CFL finance. • Funding 12/13 – To update the position for the current year. • Funding 13/14 & 14/15 – an update • School balances – • Training update – A reminder about our upcoming sessions on 15 November 2012 – ‘New Funding’ and year end • Energy – the future arrangements • CPD on LWB – an input • AOB – a chance to raise any other matters that may be relevant.

3. Guest inputs • CPD online – 7th am -10.20 Stephen Schwartz 7th pm – 14.20 Christine Lonsdale 8th pm – 14.20 Drew • Audit Dave Philips 11.00 and 15.00 • Energy Auvil Fyffe 10.00 and 14.00

4. Update on the CFL Finance Team • Jane Frith has returned from her sabbatical in Ghana • Last time I wrote:I would like to thank John for his dedication in ensuring the SLA service was maintained at all times during this difficult period. • Most of you will now know that John has now moved to Beckmead. We wish him well in his new role and thank him for his input to schools finance over the last 24 years or so. • Janet Baidoo is supporting some parts of the “schools” work mainly around high needs and early years • This is enabling me to take over the management role for the SLA until the planned restructure of the CFL team is agreed. • In a few weeks we are moving back to Taberner House so that we can work more closely with the rest of the CFL team • We would like to thank you all for the support you have given us over the last few months but we hope you agree that we continue to provide a high level of support to schools

5. An important reminderGovernance is... •  The way we do business •  How we conduct our-selves •  Keeping the Council safe •  Providing value for money •  Being fair, equitable and transparent •  Ethical conduct •  Doing the Right Thing! •  Everybody’s responsibility!

6. Some short odds • Supply teachers from ISS Ltd??http://www.bbc.co.uk/news/uk-20157878 • BBC Panorama re leases • Brent Audits, teacher whistleblow, Copland head • Self employed • Procurement card and new forms • Procurement card and GB minutes • Bank signature form • SFVS should all be nearly completing • Analysis of balances • Secure email - EGRESS • Finance policy and procedures – update coming

7. Balances/Deficits • Revenue balances increased by £2M • Capital balances reduced by £4M • Schools Forum looking at schools with apparent excessive balances and looking at the balance analysis in the year end returns • If a deficit then need to apply for a licensed deficit. • Now most schools have in year deficits and total is due to reduce by 50%. What are the implications?

8. Training update • Bite size sessions planned:- 15/06/12 – Finding your way around the new Funding Formula - 05/03/2013 – year end procedures • Any other suggestions for topics

9. Funding 2012/2013 • Statemented funding still a problem • Pupil Premium now corrected to DfE data and will be increased to £619 • Pupil premium CLA – please chase other LAs if funding not received (use virtual head) • Early Years adjustments – most done but a few outstanding from previous years.

10. Funding 2013/2014 • Some major changes that will affect all types of schools/PRUs • The following notes just pick out a few of the changes and implications for schools • Applies to maintained and academies and difference is reducing • Overall funding static and MFG still -1.5% • The bite size session will provide a little more detail

11. Funding 2013/2014 – major changes • Funding will be allocated in 3 blocks- early years (PVIs, nursery classes, nursery schools)- schools (primary and secondary schools only)- high needs (statements, resource bases, special schools, PRUs, alternative education, out borough placements etc) • Funding formula structure determined by DfE

12. Early Years • Broadly as now and the area of least change • Will not include the high needs parts/ resource bases as these are funded from High Needs block • Deprivation factor will still be based on ACORN

13. Schools • Based on October census (not January)- Suggest schools get reception in full time by the October census • Much reduced funding factors leading to possible issues for - small schools- infant/junior but not primary- schools with high EAL/ethnic groups • Funding finalised early February • Get involved in consultation in autumn

14. High Needs • All the high needs is funded from this block for ages 0 to 25 • Assumes £10k base funding is available from the per pupil and AEN factors • Responsible LA commissions places and provides top up funding. • Top ups allocated when the child is present • Possible issue around cash flow

15. Any other issues/comments?

16. Internal Audit Dave Phillips – Internal Audit Manager November 2012

17. Common Key Audit Issues Annual approval of Key Policies, Scheme of Delegation and Committee TOR by Governing Body CRB and Payroll issues Approval of Budget and Virements Procurement Controls

18. Annual approval of Key Policies, Scheme of Delegation and Committee TOR by Governing Body The School Governance (Procedures) (England) Regulations 2003, paragraph 16 (3) states that: “the governing body must review the exercise of functions it has delegated annually.” “The Governing Body must determine the constitution, membership and terms of reference of any committee it decides to establish and review them annually.”

19. CRB and Payroll issues 8 schools audited during 2012/13 (out of 25) had CRB issues While not a statutory requirement for Governors, Council guidance is that they should still be CRB checked. Furthermore, are disqualified if they have been incarcerated. Also contracts employment and confirmation of leaving dates.

20. Approval of Budget and Virements The Council’s ‘Scheme for Financing Schools’ paragraph 2.3 states that, “Governing Bodies are responsible for agreeing an income and expenditure plan for the financial year”. Virement limits are normally set out in the Schools Scheme of Delegation

21. Procurement Controls Authorisation must be obtained and evidenced prior to initiating the transaction and, if possible, input on SIMS. Goods / services received checks must be evidenced. Authorisation, in line with SoD must be evidenced at order and invoice payment stage. Each of the above have resulted in P1 recommendations this year