By the public sector, for the public sector
Finance Seminar
Autumn 2014
Presented by
Cathryn Walker
By the public sector, for the public sector
Agenda
• FIRST SESSION
• SECOND SESSION
Schools Finance Team
2014-15 Budget
2015-16 Budget
Pupil Premium
High Needs Funding 2014-15
High Needs Funding 2015-16
EYSFF 2015-16
School Balances 2013-14
School Balances 2014-15
Universal Infant FSM (UIFSM)
Schools Forum
LGSS 2015-16
CFR
Budget Monitoring
Audit – SFVS
Tendering / Quotes Process
Electronic Reporting
Cash Advances
Housekeeping
Top Tips
Other
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LGSS Schools Finance Staffing
ASSTM
Cathryn Walker
SAA
Charlotte Dennison
SATs
Charlotte Allford
Tier Abbass
Dionne Day
SAT
Julia Miller
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Schools Budgets 2014-15
• Minimum Funding Guarantee of minus 1.5%
or cap of 4.5% on Schools Block funding.
• Basis for funding:
– October 2014 Pupil Census for per pupil
allocations
– January 2015 Pupil Census for Pupil Premium
grant
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Additional One Off Allocation
The impact on the funding formula for 2014/15 (£11.7 million) is as
follows.
Primary
£7.3m
Secondary
£4.3m
Middle
£0.1m
£15,000
Increase to the lump
sum value per school
£50,000
Increase to the lump
sum value per school
(maximum)
£32,500
Increase to the lump
sum value per school
Remaining balance
(£3.4m) allocated
through the AWPU
£59 increase
Remaining balance
(£2.6m) allocated
through the AWPU
£70 increase
Remaining balance
allocated through the
Primary and
Secondary AWPU
increases
Not currently known how much one off funding will be allocated in
15-16 – will be less!
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Fairer Funding for 2015-16
•
On the 13th March 2014 the Department for Education
(DfE) announced proposals to increase DSG allocations
for the least fairly funded areas.
•
Begins to address the historical funding basis within the
current system.
•
A further stepping stone to a National Funding Formula –
although deferred until the government can set plans
over a longer period of time.
•
These are positive initial steps but the DfE state that:
“Beyond 2015-16 the allocation of funding between local
authorities will be a matter for the next spending review.”
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Summary of July 2014 Forum
Discussion Points with Responses
•
Allocate over all 3 DSG blocks? YES
•
Top slice for £1.5m high needs base shortfall? YES
•
Basis of split over the blocks? Number On Roll
(NOR) with a High Needs Special Schools x4
multiplier
•
Primary/Secondary split base on NOR? YES
•
Schools formula factors to apply to? AWPU
•
If use to increase the cap? YES
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Revised Funding to be Allocated (Oct 14)
£m
Revised Fairer Funding Estimate
Carbon Reduction Adjustment
High Needs Top Slice Agreed with
Forum
Total Available to Distribute
9.9
(0.3)
(1.5)
8.1
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Allocation Across DSG Blocks
•
Phase
Allocated by
NOR July (£)
Allocated by
NOR October
(£)
Primary
3,195,710
4,541,272
Secondary
1,880,802
2,672,719
High Needs
261,376
371,429
Early Years
362,111
514,579
Total
5,700,000
8,100,000
Forum’s preference was to allocate to all blocks using the NOR
with a weighting of 4 for special school pupils (to reflect the
higher cost of these pupils)
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Schools Block
Forum Discussion – Capping Levels
Possible range of Cap/AWPU levels with allocation of £7.2m
MAX Increase in AWPU Value*
MIN
Increase in AWPU Value*
CAP
Primary (£)
Secondary
(£)
CAP
Primary (£)
Secondary
(£)
5.70%
79.85
75.27
6.65%
75.85
71.27
The fairer funding is not outside of the MFG, therefore as funds are put into
AWPU, less total MFG protection is needed (protection level nationally set 1.5% per pupil). The total removed from capped schools cannot exceed the
total value of the MFG protection. With an additional allocation of £7.2m to
the AWPU the minimum possible level of cap is 5.7% and the maximum is
6.65%. FORUM AGREED FOR THE HIGHER CAP TO BE APPLIED IN 15-16
Note – AWPU change is indicative.
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2014-15 factors – no changes
proposed in 2015-16
Description
Used in 2014-15
Basic per pupil entitlement
(AWPU)
Yes (mandatory)
Deprivation (based on ever 6 FSM
numbers)
Yes (mandatory)
Private Finance Initiative
Yes
Split site
Yes
Rates
Yes
Lump sum
Yes
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School Budgets 2015-16
•Indicative budgets will be issued November 14
(based on Oct 13 numbers)
•February 15 final individual school formula
budget information will be placed onto website
updated for October 14 numbers.
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Indicative School Budgets 2015-16
The following indicative elements will either be added to the website in
March 2015 or confirmed/allocated during 2015-16:
- High Needs Place funding – Special Schools & Units / Resourced
Provisions
a. Mainstream 6th form allocations - from the EFA
b. Devolved Formula Capital (DFC)
c. Allocations from the High Needs Panel
d. Early Years Single Funding Formula (EYSFF) – 3 and 4, and 2 year
olds formulae
e. Pupil Premium – Main FSM Based on January 15 census
f. High needs top ups
g. High needs element 3 top ups for pupils in SEN units or resourced
provision
h. Special school high needs allocations
i.
UIFSM
j.
Pupil Growth funding
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Pupil Premium
•
Pupil Premium 2014/15 values have increased
across most categories
Pupil Premium Category
2013/14
£
2014/15
£
Change
£
Primary
953
1,300
347
Secondary
900
935
35
Looked After Children (Pupil
Premium Plus)
900
1,900
1,000
Service Child
300
300
0
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Pupil premium changes 14-15
•
Schools will receive £1,300 per primary pupil who is
currently eligible for free school meals (FSM) or has been
eligible for FSM in the past 6 years (FSM ‘Ever 6’) and £935
for secondary FSM ‘Ever 6’ pupils.
•
Higher rate of £1,900 for looked-after children. Extending
the eligibility criteria to include those pupils who have been
in care for one day or more, as compared with the six
months in care currently required.
•
For the first time, schools will also receive £1,900 for eligible
pupils who have been registered on the school census as
having been adopted from care or leaving care under a
special guardianship or residence order
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Pupil premium changes 14-15
Contd
•
Northamptonshire to pilot the new early
years pupil premium from January 2015 –
53p per pupil per hour – addition to EYSFF
for 3 to 4 year olds NOT 2 year olds.
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Pupil premium changes 15-16
•
2015-16 pupil premium rates still to be
announced
•
New early years pupil premium – 53p per
hour per eligible pupil.
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Primary PE and Sports Grant for
2014
Allocations for the academic year 2014/15 are calculated using
the number of pupils in years 1 to 6, as recorded on January
2014 census, as follows:
Schools with 17 or more pupils receive £8,000 plus £5 per pupil;
and Schools with 16 or fewer pupils receive £500 per pupil.
Where a schools’ pupils are not recorded by year group, pupils
aged 5-10 are deemed eligible.
The total allocation relates to the academic year 2014/15 and is
split into two payments. Schools will receive 7/12th of their
allocation in the financial year 2014-15 in November and the
remaining 5/12th in the financial year 2015-16 in May 2015.
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High Needs Funding 2014/15
Guidance on all areas included in high needs funding
guidance on NCC website
http://www.northamptonshire.gov.uk/en/councilservic
es/EducationandLearning/services/schlfin/Document
s/HNFundingGuidancev04Final140901.doc
Increasing financial pressures from increasing high
needs numbers - mainly in special schools
Queries to:
Highneedsfunding@northamptonshire.gov.uk
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High Needs Funding 2015/16
•
High Needs EFA DSG 2015-16 funding
announcement in December
•
Schools Forum January and March 2015
discussion on high needs pressures, funding
and high needs funding rates
•
Working with FACE to create a new RAS
(Resource Allocation System) to use across all
of high needs including Education, Health and
Care (EHC) plans and reviewing existing
statements
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EYSFF 2015/16
•
3-4 year olds EYSFF will include new EY pupil
premium
•
Main EYSFF being reviewed for 15-16
•
Discussed at Forum Oct and Dec 14, Jan and
March 2015.
•
http://www.northamptonshire.gov.uk/en/councils
ervices/educationandlearning/services/schlfin/pa
ges/schoolsforum.aspx
•
EYSFF rates and elements decided and
published, including indicative budgets, March
2015.
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School Balances 2013/14
•
Information on maintained schools balances
presented and discussed with schools
forum.
•
Main area of concern was high pupil
premium balances being carried forward.
•
Schools with higher (on a per pupil basis)
pupil premium balances were asked to
supply information on what held for and
reported to Forum on an individual school
basis.
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Balances
•
Schools need to be thinking about year end
carryforwards and Committed / Uncommitted
revenue balances.
•
To calculate the 8% or 5% Uncommitted
balance permitted take the current Oracle
Report (total Revised Budget column) minus
previous years carryforward (column 1
“Balances”) then multiply by the relevant
percentage.
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School Balances 2014/15
•
Consulting on changes to the balances scheme
•
To be voted on and agreed by schools forum at 2
December 2014 meeting. Proposals include
1. Split out different elements of pupil premium
2. Change wording of revenue held for capital
purposes so doesn’t state solely for schemes in
NCC capital programme
3. Add new lines for UIFSM capital and revenue
balances (can be surplus or estimate of what
‘owed’ at end of 2014-15 as EFA have funded in
14-15 based on an estimate)
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Universal Infant Free School Meals
Provision of FSM for eligible pupils is a statutory responsibility of
schools.
Universal FSM places further responsibility on schools and has
been written into legislation .
Places a legal duty on schools to offer free meals to all pupils in
reception, year 1 and year 2 from September 2014.
Expectation that hot meal will be provided.
Possibility nationally to extend to additional year groups in future.
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Universal FSM for Infants
•Funding information and guidance on NCC website
•http://www.northamptonshire.gov.uk/en/councilservices/educationandle
arning/services/schlfin/pages/budget_funding.aspx
In the 2014 to 2015 academic year schools will be paid funding at a flat
rate of £2.30 for each meal taken by newly eligible pupils. Schools will
be expected to fund existing free school meals under the existing
criteria that they do currently.
Initial allocations were based on pupil data from the January 2014
Schools Census as well as planning assumptions that (i) 87% of newly
eligible pupils will take meals, and (ii) pupils will take 190 school meals
in an academic year.
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Universal FSM for Infants
Provisional allocations will be revised later in the academic year by the
EFA based on actual take up data from an average of the October 2014
and January 2015 School Censuses and the third term of the 2014 to
2015 academic year will be adjusted accordingly.
Adjustments will be made upwards as well as downwards depending
upon whether actual take up is above or below the assumed take up
rate of 87%, thus resulting in a clawback.
Maintained schools are recommended to identify at 31March 2015 if for
the first 2 terms (Sept 14 to March 15) monies are owed to or by the
EFA – an option will exist to identify this on the SB1 form.
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Schools Forum
Below is a link to the link to the website to see the latest
information.
• Schools Forum - Northamptonshire County Council
Schools are recommended to read Forum Matters when
published to keep up to date with latest developments.
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LGSS 15-16
The 2015/16 schools and academies brochures
•
Plan to publish on the 1st December 2014.
•
The brochures will be available through:
o the new schools and academies enewsletter which will be emailed to all
Northamptonshire schools and academies.
o www.lgss.co.uk
o www.northamptonshire.gov.uk - the traded services to schools page
•
There are no prices in the brochure for 2015/16 .
•
Bespoke charges will be sent to schools/academies who purchased LGSS services in
2014/15.
•
New customers: please contact LGSS for a bespoke charge info@lgss.co.uk
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LGSS
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LGSS 15-16
Summary of key changes to terms and conditions and buyback process
•Annual offering published December 2014 - 3 months notice (must be
given by schools/academies)
•No prices in the online brochure.
•Existing customers - issued with a quote based on their current buy
back. (If they wish to purchase the same services they do not need to
do anything)
•New customers - contact Customer Contracts team to request a quote
(via the helpdesk)
•Packages bought for a minimum of 1 year- an early exit fee will be
payable
•Schools and academies will be invoiced monthly.
•Mandatory monthly direct debit - core charge spread across 12 months
beginning April.
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LGSS 15-16
•One central contract to be issued to cover all service areas an
academy has bought. (Central contracts for academies are yet to be
agreed by the Project Board)
•Annual customer satisfaction survey sent out in September
•Performance reporting and customer satisfactions surveys used to
inform the schools and academies service improvement plan.
•Standard approach is developed for exiting LGSS and charges levied.
•Pay As You Use services - a standard set of terms and conditions.
Customer Focused
•Customer satisfaction survey - October 2014 to bursars and
headteachers
•Introduce performance indicators for 2015/16
•Attendance at the National Schools Board Foundation
•Exit interviews to understand why a school or academy has left LGSS
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LGSS 15-16
Customer Satisfaction Survey Results
•
•
•
•
•
47.95% considered our service to be excellent;
42.47% good;
4.11% satisfactory;
0% poor – really positive; and
5.48% did not us our services.
• The finance offer for 2015/16 has largely remained the same. There
has been some minor refinement of the offer by rationalising some
aspects of the packages offered
• Enhanced and standard finance packages can be bought – e,g a
dedicated school finance system (SIMS), financial training, school
fund administration
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CFR Reporting 2013-14
• Errors on submission
– Schools not entering an e-mail address.
– Opening Balances differed from previous
years closing balances.
– Notes not entered against Yellow warning
triangles.
– Positive amounts on income codes and negatives on
expenditure
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CFR Reporting 2014-15
• Schools should be checking the current report is correct
when compared to Oracle and the Cumulative Expense
Analysis report.
• Schools should be checking that the CFR apportionment
has been actioned correctly
• School should check the Validation report for codes not
mapped and missing expenditure / PFI Charges / Bad
Debt.
• Schools should check that income codes are in credit
and expenditure codes are positive. Usually due to
accruals.
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Budget Monitoring
• Schools should be checking the current Oracle
report and the Cumulative Expense Analysis report.
• There has been issues with the budget top up file
and where the budget was loaded onto Oracle so
we would suggest the school completes a virement
form to amend Oracle.
• Don’t forget to vire Pupil Premium as per the budget
proposal form if appropriate. This process will need
to be repeated when the 7/12ths funding is devolved
in January.
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Audit Points
Governance and Financial Management and
Compliance with the Schools Financial Value
Standard (SFVS) – 2014/2015.
Governance and Financial
Management
Level of Assurance
Schools Financial Value Standard
Level of Assurance
Limited
Moderate
Substantial
Not met
Partly met
Substantially
met
Met
8
1
6
0
12
3
0
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Audit Points
The percentage of schools with limited assurance for Governance and Financial
Management has increased from 23% in 2013/14 to 53% in 2014/15, these schools
had weaknesses where management checks were either not in place, or were not
consistently demonstrated. Therefore it was considered that schools were exposed
to the risk of fraud.
An Income Policy was not in place in 27% of schools.
In 57% of the schools a school development plan was only in place for a one year
period, schools were not planning one year in detail and two in outline.
Three year financial projections had not been completed in 27% of the schools.
In 40% of schools there was insufficient evidence that the Headteacher had
checked that the budget and expenditure on the school’s local accounting system
had been reconciled to the NCC records on Oracle.
33% of schools had not completed and approved a Business Continuity Plan.
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Audit Points
In 33% of the schools there was no evidence that the Headteacher had
completed checks that the Business Manager/Bursar had checked the
payroll each month or that they had completed a management check on
the reports to review payments to the Business Manager/Bursar to confirm
that these were correct.
In 80% of schools Headteachers did not check that all income received in
the school had been banked.
Although the Private Funds had been audited in all of the schools visited,
in 27% of the schools the accounts had not been presented to the
Governors.
47% of the schools had not completed the Thematic Audit templates and
had therefore not identified and been able to address weaknesses in their
internal control environment.
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Audit Points
Areas of Good Practice:











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

A Pecuniary Interests Register was in place and updated annually;
The roles and responsibilities for finance in the school were documented;
The delegated authority for expenditure was documented;
The approval of the budget by the Governing Body was minuted;
The Governors minutes recorded discussion on the level of balances and their use;
Financial Monitoring reports were provided at least three times per year;
The outturn predicted in the monitoring reports/SIMS was the same or very similar to the actual outturn;
Virements of budget were approved by the Governors;
A Charging policy was in place;
Bank reconciliations were completed monthly by the Bursar/Business Manager;
The Headteacher checked the bank reconciliation each month;
Procedures were in place for the purchase of goods and services;
Quotations and tenders were obtained for high value purchases;
There was a separation of duties in place for ordering and payment of goods and services i.e. at least
two persons were involved in this process;

The Private Funds accounts had been audited.
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Audit Points - SFVS
 Last year there was a lot of chasing schools who had
not submitted by the 31st March.
 Often this was because schools were waiting to approve the
budget - but the return is on the current financial year i.e for
2014/15 so schools should not wait to approve the
2015/16 before submission - this is based on approval of
the 2014/15 budget so can submit at any time.
 This can be completed and submitted to Governors for
approval in January/February before year end and budget
pressures.
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Audit Points
The last thematic audit was on Purchasing and Payments and
are currently awaiting the report to be finalised.
One point identified was that schools do not have a contract
register in place or was not being updated. Schools should
maintain a register of their contracts to keep track of renewal
dates.
A blank one is available on our website under the
Procurement for Schools section.
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Tendering & Quotes
Schools should be advised that:
• Two written quotations should be obtained for goods or
services over £1000 and less than £10,000 in value;
• Three written quotations should be obtained for goods
or services over £10,000 and up to £30,000;
• Goods and services over £30,000 are subject to a
formal tender process; and
• Evidence should be retained in the school to prove that
best value has been sought and to demonstrate this to
the Governing Body.
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Journals & Virements
Please be aware that there are new forms to complete when
submitting the above.
These can be found on the Schools Finance website under
the forms library.
These should then be returned to Finance as attachments to
e-mails.
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Journals
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Virements
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Cash Advances
The plan is that 14-15 arrangements will continue in 15-16
• One system where all maintained Primary, Secondary and
Special Schools have 12 advances split between 12% in
April 8% thereafter.
• Schools regardless of payroll status receive all of their
budget allocation in cash via monthly payments on a set
date with any budget or other top ups also issued at the
same time (new)
• LGSS Payroll schools will have the salaries deducted from
the advance.
• Schools are notified monthly via email.
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Housekeeping
Supplier Maintenance on FMS
Some schools are still using the NCC – Audit and
Financial Services address. This is not valid and
schools should be using NCC Exchequer Fair. Please
make the necessary amendments on FMS.
Salary Scales on FMS
 The Teacher scales are now available from our website.
Attached to the Personnel 7 update notes and how to
action this on SIMS.
 Still awaiting the outcome from the latest proposals with
regards to support staff.
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Top Tips
Old Bank Accounts still causing issues for year
end bank reconciliations.
PC01 – Z before description.
Have the journal wizard switched on as it will
prompt bank account. Tools/User Options.
Preferred method for submittal to Schools
Finance – scan pages on mass not individually.
Commitments – Full year including UIFSM.
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Twitter
Schools Finance now has a twitter account
We can be found using @NCCschools
We plan to include key information as an when it
happens regarding latest news and training.
Please follow us!
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Questions?