COMMENTARY ON APPLETON ACADEMY ACCOUNTS – P6 FEBRUARY 2015
INCOME
Nominal Code
9051 – School Budget
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Commentary
Informed by EFA in Feb/March 2014 that we wouldn’t be funded on
estimates
Budget was set based on expectation that funding would be made up
in Feb 2015 to estimated pupil numbers
Pupil numbers on October census bear out our estimates – additional
funding now received
The Forecast we have undertaken and which is included in your
management accounts pack this month, shows an underachievement
on this code; this is due to a £117,700 clawback by EFA for last year’s
pupils, which we weren’t notified about until recently.
9057 – Insurance Premium
Reimbursement
Insurance top up claim submitted to EFA - expected funding £19665
9067 – Pupil Premium
Recalculation for forecast shows small underachievement of £4k
9001 – Post-16 Funding
Same situation as 9051 except that the shortfall won’t be made up.
EFA told us we would be funded on the lagged funding model for the
current year. We did inform Governors about this shortfall when the
budget was tabled.
Having received the additional pupil-led income in February, to make
up to our estimated numbers, we found that EFA have also funded us
on estimates for Post-16 after all. This means we have been overfunded for Post-16 in 2014-15. This is likely to be taken back from us
in 2015-16 – I have made provision for a clawback of £67k to cover
this.
9052 – LACSEG
Although there is no LACSEG any more, we were overfunded last year,
on the LACSEG element of our SEN funding – EFA paid us and BMDC
also paid us. EFA are claiming that back this year so we are showing it
in this line to enable us to identify it separately. Annual total will be
approximately £10k. This will apply to both 2014-15 and 2015-16
(provision has been made for this in next year’s budget as well)
9053 – Specialist Funding
PE Grant – not budgeted for but we will receive in this year and next
year. Forecast is based on the funding formula indicating we will
receive around £9k in the year.
9002 – Contributions to
Academy Running Costs
This is a charge we make to the public library annually, for shared
services. Although it is currently budgeted in twelfths, we won’t raise
the invoice until August, so you will continue to see what looks like an
underachievement of income until then. We have forecast income of
£8,500 for 2014-15
9066 – SEN Funding
Forecast shows this achieving £33k over the year; this reflects the
current value of the SEN statements for students in the Academy
9202 – Contributions to
Educational Visits
Income received will be offset against trip expenditure. We are
forecasting lower income than expected this year; more trips fall into
the bracket that requires the Academy to pay and fewer parents are
able to pay contributions currently
9199 – Income from
Catering
The budget is in twelfths, but our income fluctuates depending on how
many trading days are in each month. The actual income is broadly in
line with expectations at this point in the year, even though it appears
to be an overachievement. This will be offset by no income in August.
The forecast shows a slight underachievement of £10k on this code
9198 – Bank Interest
Budget assumes current account balance of over £1m on average.
Current cash flow situation leaves bank balance averaging £500k.
Investment income in low income account for ease of access resulting
in reduced bank interest. Forecast shows a slight underachievement
9105 – Other Grant
Income
Summer School Funding – Last year our programme didn’t attract the
numbers expected so we deferred income we thought would be taken
back. However, the clawback calculation didn’t work as we expected
and the EFA took back £9,000 less than we assumed they would
The forecast for this code includes £23k for the Summer School
programme 2015 and the balance of UIFSM funding we are expecting
9206 – Miscellaneous
Income
This is not a regular source of income and can be difficult to predict.
Current trends show it averaging less than our budget of £15k at
around £10k for the year
9207 – Staff Salary
Reimbursements
The budget assumed only a small amount of WTR time working with
BCET; however, we currently have a member of SLT on secondment as
a Primary Principal. The income from this has been forecast at almost
£52,000 for the year
EXPENDITURE
Nominal Code
Commentary
Teaching Staff Costs
Forecast is for salary costs to underspend by £51k but supply costs (see
below) to increase as a result of unfilled vacancies being covered by
bought-in teachers and some staff leaving in June 2015
Supply Costs
Budget is all on Secondary but expenditure is being split for monitoring
purposes. Spend is above budget and will continue that way due to
long-term covers for unfilled vacancies. Costs appear to be weighted
two-thirds: one-third secondary to primary. Out-turn in total could be
as much as £277,000
Support Staff Costs:
Educational Support and
Other
Additional Student Leader; EAL Support autumn term; Additional
lunchtime supervision; gardener
Agency Staff costs (0112) should cease after Easter
Forecast shows an approximate overspend in the year of £22k on
support salaries
Indirect Employee
Expenses
Resignations in Core Subjects have led to high-cost advertising being
necessary early in Autumn Term (English; Maths; Science). Ongoing
costs will include engagement with Hays (£6k) plus introduction fees of
around 10% of salary per placement. Final cost forecast as around
£60k.
Staff Development
Forecasted overspend of around £7k – spend on this code may be
spread across a number of cost centres and some will be offset against
education materials. Costs include Masters fees for Teach First
students
2085 – Rates
Rates costs broadly in line with budget - we have had several
valuations throughout the year which now seem to have settled down.
New rates bill received for 2015-16 £52,000
2001 – Annual
Maintenance Contracts
New agreement with Trust Head of Finance, about value of accruals,
means this code is currently showing an overspend due to timing of
contract renewals. Out-turn is expected to be in line with budget.
2002 General Repairs &
Maintenance
Spending broadly in line with budget. Commitments include forward
planning for works over Easter and Summer breaks. Forecast shows a
slight overspend to allow for unforeseen requirements over and above
what is planned.
2003 – Decorating &
Refurbishment
The budget is in twelfths but the costs tend to appear in blocks,
immediately following school closure periods.
2006 – Tools and
Equipment Purchase
Spending front loaded to equip new gardener. Further spending on
this budget is now prohibited. Out-turn expected to be £1265
2008 – Hygiene Purchases
Commitments include forward planning to July 15. Current spend
includes bulk ordering of hygiene consumables (paper towels/sanitiser
dispensers etc). Marginal increase on cost of bin bags due to purchase
of clear bags for recycling. Forecast on this code is for an overspend of
approximately £2k
Suppliers & prices are currently under review to see if we can improve
on this.
2011 – Plants & Flowers
Currently appears overspent, due to budget being in 1/12ths but
spend being annual contract payable in November, not being deferred.
Costs in this category are being reviewed in time for contract ceasing
in November. Likely that gardener will take over managing plants
indoors.
2082 – Gas Costs
Spend broadly in line with budget for time of year; costs also include
£3.5k Carbon Reduction Charges
2083 – Electricity Costs
Costs to date include approx. £3.5k Carbon Reduction Charges paid in
one lump. Spend is in line with expectations
2096 – Biomass Costs
Underspend due to having no requirement to purchase Biomass fuel
until November; two purchases made since. Forecast allows for a
further three across the year. Out-turn will be well below budget this
year
2086 – Refuse Disposal
Additional uplifts, skip hire and new bins for grounds – recycling clear
bags are higher cost than black bags. Forecast is for an overspend.
Contract ends 2016 – currently researching alternatives including onsite waste management
2087 – Cleaning Contract
Budget includes provision for carpet & upholstery deep cleans and
floor polishing which happen periodically not monthly. Contract to be
renewed in 2015 – savings will be sought. We have forecast a slight
saving on the cleaning contract this year, by reducing the number of
periodic events.
2092 – Security Costs
This budget makes provision for security operatives throughout the
year at closure periods; we have forecast an underspend this year by
reducing the number of occasions when this additional security is
provided. We have monitored, audio cameras on site and the site is
widely used by the community throughout the year. This means we
have less need for increased security, apart from at times of full shut
down.
2093 – Window Cleaning
We have researched suppliers and prices and have managed to reduce
the cost of window cleaning. The forecast is for an underspend and
next year’s budget reflects the lower price
2091 – Insurance Premium
Under budgeted, however reclaim from EFA has been submitted
4461 - Curriculum ICT
This is the “central” network support function and up to now, there
has been no budget because we have not had a need to put much
support into the network, it being brand new.
However, we have now engaged with Virtue Technologies and are
making enhancements to the network. This can be planned for and
can be planned for even more effectively next year; the costs to P6
include projector bulbs; computer repairs; new batteries; new screens
for laptops, software renewals etc.
This budget is being closely monitored.
Supplies & Services:
Educational Other
This appears underspent due to the patterns of spending in
Departments. Expenditure tends to happen at the ends of terms, in
preparation for the next term and although the budget sits on 4000,
expenditure is distributed across a range of 4000 codes eg 4014.
Budgets are being reduced in line with changing requirements; savings
are expected to be made to provide for areas of overspend. DBF and
principal have introduced additional monitoring measures to ensure
spending is appropriate.
4006 – Examination Costs
Summer entries are currently being submitted, therefore a spike in
expenditure will arise in February or March
4007 – External Education
Provision.
The budget was drawn up without knowing which students would opt
for which courses, so maybe slightly generous.
4008 – Management Fees
This relates to the Bradford Partnership which I didn’t budget for in
2014-15, mistakenly believing it to have ended
4010 – Curriculum
Consultants
Curriculum consultants visit the academy throughout the year,
therefore costs incurred on an ad-hoc basis. Further examination of
this expenditure for the forecast has resulted in a likely underspend for
the year.
4012 – Swimming Lessons
Budget is in twelfths but invoice comes in around December time and
is not deferred
4013 – Stationery
Stationery is held centrally, purchasing occurs as supplies deplete
usually closer to the end of term. Current commitments are to last
through next term
4014 – Books
The budgets are not set against this nominal code – budget is on code
4000, so this code will always overspend but should offset any
underspend on code 4000
4016 – Bursary Payments
Following audit advice, we use a balance sheet code for all income and
expenditure on this group – therefore the nominal code will carry a full
underspend all year but the income will not be seen in 9001either
4017 – Exam Late Fees
This code will show a constant overspend for the year. The budget sits
on 4006 to cover this. Expenditure for late fees has been placed
separately for monitoring purposes.
4266 – FSM Costs
This expenditure includes costs of provision for Universal Free School
Meals, which we could only estimate the volume of at the time of
devising the budget. The income to offset the UIFSM costs was
accounted for in last financial year, in line with Charities SORP
requirements and therefore is now in our cash reserves.
Expenditure is in line with expectations at this point in the year.
4493 – School Trip Subsidy
Some trips are still in planning stages. Trip accounts are reconciled
monthly and subsidy applied where appropriate
5000 – Non-GAG Education The Non-GAG expenditure is Pupil Premium; the budget is on code
Materials
5000 but spend may be spread across a number of codes, depending
on the nature of the purchase. These codes will show overspends.
4257 – Support Service
Charges
The budget for this didn’t include the contract with Virtue
Technologies but this is where it should be coded so it will be seen as
an overspend. Spend to date also includes cost for additional support
in absence of catering manager.
Costs for services are also front loaded against budget. Forecast shows
an overspend of £58k for the year
4259 – Admin Software
Licences
No longer using RM is reducing the costs of licencing.
4260 – Administration
Resources
The current overspend is due to a one off purchase of radios.
4261 – Telephone Costs
Budget was based on 2012/13 out-turn. However spend has reduced
based on higher levels of electronic communication
4263 – Photocopies/
Printing Costs
Current overspend is due to an large quantity of big print jobs
undertaken recently; where jobs are too big for photocopiers, they are
sent out for commercial printing. Further intervention from DBF and
Principal is proposed, to keep spend in line with budget this year.
4265 – Marketing &
Printing
This code covers the cost of the Academy half-termly newsletters and
it is likely a saving can be made on budget this year.
4267 – Cost of Catering
This expenditure includes the cost of food purchases for all production;
the budget is in twelfths but expenditure doesn’t fall in the same way.
Expenditure is in line with expectations at this point in the year.
We have forecast an underachievement of income of £10k for the year
and the same level of underspend on cost of catering
4280 – Copier Paper
This code will show a constant overspend for the year. The budget sits
on 4263 to cover this. Expenditure has been placed separately for
monitoring purposes.
Although 4263 shows neither underspend nor overspend on the
forecast, 4280 will show an overspend. The Academy is working to
manage printing more effectively – in 2015-16, for instance,
departments will have their costs recharged to them.
5257 – Non-GAG Support
Service Costs
5269 and 4269 –
Hospitality Charges
This offsets budget on code 5000 above
5269 costs are offset by budget on code 5000.
4269 We are forecasting a full-year spend of £22k for this code to
include staff refreshments, meeting hospitality and post-16
refreshments
4286 – Professional
Consultancy Fees
This is costs associated with employment of Teach First students. The
full year cost will be just shy of £30k