schools budget pack - Westminster City Council
2011-12
SCHOOLS BUDGET
PACK
February 2011
1
2
Published: February 2011
CONTENTS
SECTION 1. EDUCATION FUNDING CHANGES 2011-2012 ........................ 5
SECTION 2. DEDICATED SCHOOLS GRANT AND SCHOOLS BUDGET ... 6
2.1 Dedicated Schools Grant (DSG) ............................................................. 6
2.1.2 Impact on nursery education funding (for schools and PVI settings) ........................ 7
2.1.3 Impact on central budgets (standards fund held back monies) ................................ 7
2.3 Formula Grant (inclusion of former Area Based Grants) ........................ 8
Individual Budget Statements ............................................................... 11
2008-11 STANDARDS FUND INITIAL ALLOCATIONS .......... 12
2011-12 FUNDING FOR INCLUSIVE EDUCATION ................. 15
4.2 Funding streams in 2011-12 ................................................................. 15
4.3 Additional Educational Needs: .............................................................. 15
4.4 Special Educational Needs: .................................................................. 15
4.6 Recoupment and in -year adjustment ................................................... 16
3
PROPOSED PAY AWARDS AND ASSOCIATED ON-COSTS
FROM 2011 FOR TEACHERS ...................................................................... 17
5.2 Teaching and Learning Responsibility Payments ................................. 17
5.4 Threshold and Performance Management (from September 2010) ...... 18
5.5 Excellent Teacher Scheme ................................................................... 18
5.6 General Teaching Councils' fee allowance ........................................... 18
FAIR FUNDING TRADED SERVICES 2011-12 ....................... 19
2011-12 BUDGET GUIDANCE ................................................. 20
7.1 Budget Guidance Notes - General Information ..................................... 20
7.4 Accounting for VA Capital in the Consistent Financial Reporting (CFR)
– Advice to Dioceses ................................................................ 49
7.5 Budget Preparation Summary and Worksheets .................................... 51
7.6 Salary Calculation Guidance Notes ...................................................... 54
Rates and Allowances - National Insurance Contributions ..................................... 55
4
SECTION 1. EDUCATION FUNDING CHANGES 2011-2012
General Background
In 2011-12 funding that was previously provided via specific grants or area based grants will be confined to 3 main grant streams: a. The Dedicated Schools Grant (DSG)
– this is ring fenced for schools b. The Early Intervention Grant (EIG) – this is not ring fenced c. The Councils main Formula Grant (FG) – this contains the bulk of central government support for all Council services and is not ring fenced
Many grants (those not listed as moving to DSG, EIG, FG) will cease in
2011-12.
The standard fund programme ceased in 2010-11 but the funding for most of the programme is now included in the Dedicated Schools
Grant
There is a new grant (for schools) called the Pupil Premium
Minimum Funding Guarantee is set at -1.5% for 2011-12 (it was +2.1% in 2010-
11). It is intended to set ‘cushioning’ budget protection at the same level as MFG, i.e. -1.5% but until the pupil count is confirmed, this cannot be guaranteed. The greater the incidence of schools with falling rolls, the lower the level of protection that can be afforded with the grant the Council receives.
5
SECTION 2. DEDICATED SCHOOLS GRANT AND SCHOOLS
BUDGET
2.1 Dedicated Schools Grant (DSG)
The Dedicated Schools Grant (DSG) – to include former Standards Fund
Grants
2.1.1 Impact on school budgets
In 2011-12 the DSG (per pupil) grant will include most of the grants schools received under the standards fund programme, so for most of these grants schools will not lose any funding, providing their roll numbers do not reduce.
The former standards fund grants can be incorporated into
Westminster’s own formula funding so that schools will receive similar funding levels in 2011-12.
The merged 2010-11 SF grants have been converted to a per pupil rate and added to the 2010-11 per pupil DSG rate to form a combined per pupil rate of £6896.80. This is not being inflated in 2011-12. The
Councils DSG baseline (including the merged standards fund grants) will only reduce in 2011-12 if the January 2011 roll numbers are lower than in 2010.
There will be a national floor of -2% on the reduction in total DSG funding i.e. no authority can lose more than 2% of its’ baseline 2010-11 allocation. This will be dependent on pupil numbers and is not expected to be triggered at Westminster.
Individual schools receive a ‘per pupil’ budget protection under a minimum funding guarantee (MFG) calculation. In 2010-11 their budget per pupil was guaranteed to increase by at least 2.1% (per pupil).
MFG budget protection is being retained but the MFG rate will be -
1.5% (so individual schools cannot have more than a 1.5% reduction in per pupil funding).
Dual funding of pupils in referral units is being ceased in 2011-12.
Based on 2010-11 numbers this will mean a reduction in total funding of around £70k.
6
2.1.2 Impact on nursery education funding (for schools and PVI settings)
In 2010-
11 WCC received a grant of £1.385M to introduce extended hours for 3 & 4 year old nursery education for two terms (the entitlement increased from 12.5hrs to15hrs). The funding was also to introduce the ‘flexible’ offer in settings.
This funding has not been merged into DSG in the same way as
Standards Fund grants. It will now be funded on a pupil FTE basis at the prevailing DSG rate. This will not lead to a loss of funding per pupil in 2011-12
– so the current rates in the Early Years Single
Funding Formula should be applicable in 2011-12.
The 3 year old ‘top-up’ funding is not being ceased (as had been proposed
). This could have meant a £2M reduction in schools funding at Westminster.
2.1.3 Impact on central budgets (standards fund held back monies)
£469k of Standards Fund Grant allocations were held back by the
LA in 2010-11 to fund central programmes (including funding for salaries). This holdback money is now part of the DSG. If the central function is to be retained a holdback amount will need to be approved by the Schools Forum or the central function will have to be run on a buy-back basis with sc hools. A further £87k of held back allocation will cease completely in 2011-12
The 2010-11 standards fund grants that have been merged into the
DSG are shown in Annex A – together with the grants that will cease or grants that have not yet been confirmed as either moving or ceasing.
2.2 The Early Intervention Grant
This is a new grant that amalgamates the totals of several existing specific grants and area based grants. The totals have been redistributed to each LA using a combination of the Df E’s existing Early
Years and Youth services formulae. ( See Annex B )
The DfE has used the 2010-11 grant allocations as a baseline and applied a floor of 12.9%, so authorities shouldn’t receive a funding reduction of greater than 12.9%. The current DfE calculation
7
appears to have included an error in the adjustment to the 2010-11 baseline – Westminster has queried with the DfE.
Westminster has received an indicative EIC allocation of £10.4M for
2011-12. This represents a 17.18% reduction on 2010-11 funding.
WCC is currently disputing the DfE calculations
– if successful this may result in an extra £540k for the Council. The EIG is not ring fenced so authorities do not necessarily need to use EIG in accordance with the former grants included in the EIG calculation.
The 2010-11 grant funding used to create the 2011-12 EIG allocation is shown in Annex B . The 201112 allocation of £10.4M has been allocated to programmes pro rata to 2010-11 allocations for indicative purposes. As EIG is not a ring fenced grant there is no requirement to allocate EIG to existing programmes.
2.3 Formula Grant (inclusion of former Area Based Grants)
The funding for 5 former ABGs is moving into the Councils Formula
Grant (shown in Annex C ). This funding is then reduced by 11.1% in
2011-12. Although the Council is still getting the funding, there is no requirement to maintain these programmes.
£1.7M of existing ABGs are ceasing in 2011-12. A full list of existing
ABGs are shown in Annex C, which details those that are ceasing and those that are moving to different funding streams.
Local authorities are expected to use the new funding in support of a wide range of services for children, young people and families, including
1. Sure Start children’s centres
2. free early education places for disadvantaged two-year-olds
3. short breaks for disabled children
4. targeted support for vulnerable young people
5. targeted mental health in schools
6. targeted support for families with multiple problems.
8
2.4 Pupil premium
Pupil prem ium funding to be distributed at a flat rate of £430 per child in 2011-12 on the basis of Free School Meal (FSM) eligibility or
Looked After Children who have been looked after for more than six months. The Looked After Children element will be administered through the authority where the child is resident – each authority must ensure funding follows the child.
It will be paid from April 2011 in addition to current schools funding
(and outside of MFG calculations). Westminster will receive an extra
£2.35M (based on estimated FSM numbers) plus another £61k for
Looked After Children. http://www.education.gov.uk/schools/adminandfinance/financialm anagement/schoolsrevenuefunding/settlement2012pupilpremium
2.5 Schools Contingency
The total headroom available in 2011-12 is in the order of £1,850,000 and the areas, which are being targeted for support are listed below.
Item and Reason Contingency Comments
£
SEN Resources Panel
Academy Holdback
General contingency
Primary places &
Secondary
Threshold
400,000
600,000
200,000
550,000
100,000
In-year statements
SEN funding
Unforeseen Cost pressures that may occur in-year
Cost of additional places
Additional support due to increased costs in year over and above the allocation.
Total Contingency 1,850,000
In the event these sums are not required for the purpose outlined above, any balance may be distributed to schools if agreed by the Schools Forum.
2.6 Individual Schools Budgets
Schools will receive as a minimum their guaranteed level of funding as calculated by formulae, therefore schools should see that their budgets have not decreased by more than 1.5% for nursery, primary schools and secondary and special schools. However, some schools will receive increases of greater than the minimum due to changes in pupil rolls and the impact of any formula changes which will effect year on year comparisons.
9
2.7 Final DSG Allocation
The final allocation will depend on the actual pupil numbers in January 2011.
When the January data is cleansed by the DfE, we will be advised of any pupil number changes and budgets will be finalised in June 2011.
10
2.8 Individual Budget Statements
Each school will receive its own budget statement . This year this will include former standards fund and teacher pay addition grant. This provides a summary at the top of each page setting out the following:
Delegated Budget Share of funding to schools based on formula
Former Standard
Funds
YPLA 16+ funding
School Development Grant
School Development Grant - Advanced Skills Teachers
School Standards Grant and School Standards Grant
(Personalisation)
Extended Schools
Primary Strategy and 1-2-1
School Lunch Grant
EMAG
Teacher Pay Addition Grant
This is now administered by LA with YPLA to support. This will appear on secondary schools statement.
The next section on the individual statements is a detailed breakdown of delegated budget according to the LMS formula allocation. This shows how much each school has received according to its age-weighted pupil numbers
(AWPU), other pupil led funding and also those budgets that are not pupil led.
These figures are notionally based on the formula and do not indicate what a school should spend on these areas.
What is important is that within the overall budget allocations, it is for the school, not the Local Authority to decide what to spend on staffing, premises and other running costs for the benefit of the pupils. It also important to note that a revised budget will be issued based on a finalised DSG released by the
DfE at the start of the summer term. This may be revised based on final DSG figures announced by the DfE in June 2011.
11
SECTION 3. 2008-11 STANDARDS FUND INITIAL
ALLOCATIONS
The standard fund programme ceased in 2010-11 but the funding for most of the programme is now included in the Dedicated School Grant
Westminster is therefore proposing to maintain all of the former standards fund allocations as formula items in the schools budgets so it is straight forward for schools to track their 2011-12 funding against the allocations in
2010-11.
Standards Fund Programme
School Development Grant
Advance Skills Teachers
–
School Development Grant –
Specialist School (secondary only)
Current method of allocating in 2010-11
(retain same method for 2011-12)
Allocations based on actual AST costs
(adjusted in-year)
Fixed allocation per specialism
School Development Grant (other) Historic allocations adjusted pro rata to roll numbers
Primary Strategy, Secondary
Strategy, 1-2-1, Extended Schools.
EMAG
2010-11 allocations decided by SEG programme managers ( allocate the same cash amounts in 2011-12)
Allocated via formula – uses Free School
Meals, Attainment and Mobility data
School Standards Grant and School
Standards Grant (Personalisation)
School Lunch Grant
Historic allocations adjusted pro rata to roll numbers
Fixed rate per pupil + lump sum (higher for schools that have opted out of the central contract)
Teacher Pay Addition Grant Allocated pro rata to AWPU values
The DfE have specifically amended schools finance regulations to allow authorities to do precisely this i.e. replicate former standards fund allocation within the schools ISB calculation.
12
3.1 General Advice
2010-11 Standards Fund allocations merging into the
DSG
- School Standards Grant, including SSG (Personalisation)
1.1 School Development Grant
1.2 School Lunch Grant
1.3 Ethnic Minority Achievement Grant (EMAG)
1.5a 1-2-1
1.6 Extended Schools sustainability
1.6.a Extended schools subsidy
1.7 Primary Strategy Targeted support for all schools
1.7 Primary Strategy support for targeted schools
1.7 Primary Strategy Early Years Foundation Stage
1.7 Primary Strategy Modern Foreign Languages
1.7 Primary Strategy Every Child a Reader
1.7 Primary Strategy Every Child Counts
1.7 Primary Strategy Lead Teachers
1.8 Secondary Strategy
2010-11 Standards Fund allocations - 2011-12 not yet confirmed
1.11 Music Services
3.2 Music Services
This grant is aimed at increasing participation and raising standards of pupil achievement in music by funding opportunities for Key Stage 2 pupils to learn a musical instrument and/ or to receive specialist vocal tuition and maintaining
3.3 Capital Grants
On 13 December 2010, the Secretary of State announced details of allocation of over £2 billion of capital funding for 2011-12 to schools and local authorities.
The announcement included details of allocation of:
£800 million of basic need funding to local authorities to provide school places where needed in their area, in all categories of taxpayer-funded schools
£858 million of maintenance capital to local authorities to support the needs of the schools and for the Sure Start children’s centres in their area
£196 million of locally-coordinated VA programme capital to support the maintenance capital needs of voluntary-aided schools
13
£185 million of devolved formula capital for schools.
£800 million basic need funding has been allocated according to relative need for new places, based on forecast data provided by all authorities, with a floor allocation of £20,000. All taxpayer-funded schools within each local authority will be eligible for this funding, including voluntary-aided schools, open academies, and new Free Schools where they address basic need pressures.
The proportion of the funding available for capital maintenance which has been determined by school and weighted pupil numbers from the most recent data available. The voluntary-aided sector has been allocated a fair share based on pupil numbers, and reflecting the governors’ 10 per cent contribution and eligibility for VAT, where an 18 per cent compound rate has been used.
Allocations have been abated where schools have been or are about to be modernised through Building Schools for the Future or PFI projects.
£185 million devolved formula capital funding has been allocated direct to all taxpayer-funded schools based on a national formula of £4,000 per school and a per pupil sum which is weighted for the type of pupil:
£11.25/16.875/33.75 for primary/secondary/SEN pupils. Allocations at local authority level are indicative and will be adjusted in line with end-of-year pupil figures in maintained schools.
All these programmes will be delivered as capital grant.
Additional Information.
A copy of the full guidance for the change in standard funds is available via http://www.education.gov.uk/schools/adminandfinance/financialmanage ment/schoolsrevenuefunding
14
SECTION 4. 2011-12 FUNDING FOR INCLUSIVE EDUCATION
4.1 Background
The development of the Inclusive Education Strategy for Westminster needs to be underpinned by revised funding arrangements namely.
1. Support inclusive learning
2. Ensure transparency in resource allocation
3. Ensure that resources are distributed fairly and equitably between schools
The resources for Additional Educational Needs (AEN) and Special Educational Needs
(SEN) should be considered together in order to remove barriers to learning from all pupils. Only those pupils with complex and enduring special educational needs will be outside of the main formula allocation as a separate funding stream exists to provide additional support for such pupils.
4.2 Funding streams in 2011-12
The funding streams in schools for Inclusive Education in 2011-12 can be found within the delegated and devolved funding
– Section 3 on the ISB summary sheet “AEN/SEN
Formula allocation
4.3 Additional Educational Needs:
Social Deprivation: FSM entitlement / Pupil Mobility / Prior attainment measures weighted for low achievement / Fluency in English weighted for low achievement
4.4 Special Educational Needs:
School Action is in the age weighted ISB allocation (notional 5% of AWPU)
School action/action plus: SEN statements with a value below £9,300 in 2011-12 (list of pupils in this category is supplied by the SEN team)
If pupils in the above categories leave during the financial year schools retain the funding at the initial allocation level. They should aim to ‘recycle’ these funds to assist the remaining pupils on roll or to meet new demands as they arise, subject to the right of appeal for additional resources for statements valued at £9,000 or above (further information below).
Complex and Enduring SEN – Section 3 on the budget sheet “SEN funding for complex and enduring needs”
Additional funding based on current pupils with a statement with a value of £9,300K or above.
15
Ethnic Minority Achievement (LA Allocation) – Section 5 on the budget sheet “School
Specific NonPupil Led”
This allocation was previously Local Authority ‘top-up’ funding within the EMAG Standards
Fund grant. It was agreed from the 2005-06 financial year for the funding to be included within the ISB as a specific factor and the amount allocated has risen each year with inflation.
4.5 ISB Contingency
Reserves are held for Westminster resident SEN pupils with statements over £9,300 within academies.
A reserve is established within the ISB contingency to meet changes in funding requirements for complex and enduring needs which arise during the year.
4.6 Recoupment and in -year adjustment
A count of non-resident pupils with SEN statements and the notional value of resources required to fulfil the SEN statements will be made based on the PLASC data counted in
January 2011. Funding will be added into school budgets in advance from 1 April 2011.
A review will be undertaken in October 2011 and at the end of the financial year and adjustments, upward or downward, to reflect pupil movement will then follow.
Note any in year adjustment please liaise with Senco’s to ensure correct allocation.
16
SECTION 5. PROPOSED PAY AWARDS AND ASSOCIATED ON-COSTS
FROM 2011 FOR TEACHERS
5.1 General information
A two year pay freeze will be introduced from 2011-12 for public sector workforces, except for those earning £21,000 or less, who will receive an increase of at least £250 a year.
Schools were given a 3 year pay award from September 2008 to August 2011.
Increases proposed for 2012 and 2013 continue to be appropriate in the light of recruitment and retention data, and wider economic and labour market conditions
5.2 Teaching and Learning Responsibility Payments
Teaching and learning responsibility (TLR) payments are payable to teachers who fulfil specific roles within the school. They are awarded for undertaking a sustained responsibility in the context of the school's staffing structure that is needed to ensure continued delivery of high-quality teaching and learning. TLR payments are spot payments within two ranges. The minimum cash differential between each of the TLR 1 and TLR 2 ranges must be at least £1,500. A TLR 1 is awarded for additional line management responsibility for a significant number of people. To apply consistency across schools, the following are recommended:
From September 2010
TLR 1
£7,158 – £12,114
Level 1a £7,323
1b £ 9,012
1c
£10,701
1d £12,393
TLR 2
£2,478 - £6,059
Level 2a £2,535
2b £4,224
2c
£6,197
17
5.3 SEN Allowances
SEN allowances are unaffected by changes to the management allowance system other than the general uplift of an increase of 0% from September 2011.
September 2010
SEN 1 £ 2,001 SEN 2 £ 3,954
SEN allowances cannot be paid to:
Teachers in the leadership group
Excellent teachers
Advanced Skills Teachers.
5.4 Threshold and Performance Management (from September 2010)
In line with the 2006 Performance Management Regulations which came into force in
September 2007, from 1 September 2009 teachers subject to these regulations will be assessed against the post-threshold standards based solely on the outcomes of their last two performance management reviews. The timescale has changed for this application from 31 st August to 31 st October to align with Performance Management review.
From 1 September 2009 (Round 10) onwards, a successful threshold application will result in a teacher moving to Upper Spine Point 1 with effect from 1 September in the following school year. There will no longer be a cohort system or the provision to backdate salary awards.
Teachers will no longer need to provide separate evidence in support of a threshold application. They will however still need to make an application to indicate formally their wish to be assessed.
5.5 Excellent Teacher Scheme
The ETS provides a career pathway for teachers who are excellent classroom practitioners but, unlike ASTs, have no outrea ch function. ET’s skills are used and shared in the classroom teaching for benefit professional development of other staff. Teachers must have been on U3 for a minimum of three years when they take up this post.
5.6 General Teaching Councils' fee allowance
All teachers must be paid £36.50 per year as from 1/4/2011 if they are required to register with the GTC or GTCW in respect of the annual registration fee. The Secretary of State has indicated that the closure of the GTC will be completed by 31 March 2012.. The GTC fee allowance is paid in full to both full and part-time teachers.
18
SECTION 6. FAIR FUNDING TRADED SERVICES 2011-12
Schools can access the initial offer of provider services via Westminster website.
Providers will welcome an early reply from all schools as this will greatly assist service planning for 2011-12. For all schools the last date to confirm your response is 4 th March
2011.
Schools must sign and return the reply sheet ensuring that a definite response is entered
(i.e. ‘yes’ or ‘no’). Remember not to leave any sections blank so that there is no doubt over your intentions in relation to all services.
If you have any queries about the service provision details then contact the relevant provider direct. The contact details for providers are included within the brochure.
All forms must be returned to Andrew Hutton by 4 th March 2011 by email to ahutton@westminster.gov.uk
or post to 13th Floor (SW), Schools and Commissioning,
Finance Support Unit , City Hall
Please note all posted returns must be signed by the Head Teacher. http://www.westminster.gov.uk/services/educationandlearning/schoolsandcolleges/ schoolsinformation/traded-services-to-schools/education//
19
SECTION 7. 2011-12 BUDGET GUIDANCE
7.1 Budget Guidance Notes - General Information
ALL SCHOOLS MUST SET A BALANCED BUDGET. DEFICIT BUDGETS ARE NOT
PERMITTED.
Inflation
The following inflation rates have been used in calculating the 2011-12 budgets.
Teachers Pay Award
Support Staff
General Expenses
0.0 %
0.0 %
0.0 % (MFG is set at -1.5%)
Profiling
Profiling is a means of budgeting for expenditure that does not fall evenly over a year. This can include quarterly utility bills, annual service charge and any other bill paid at specific times of the year.
The budget profiles available for use can be found on WIMS.
Select ‘General Accounting’; ‘Chart of Accounts’; ‘Budget Profiles’
Enter ‘F*’ above the ‘Budg Patt’ column then click the ‘Find’ icon above the ‘Budg
Patt’ to list all available profiles. Choose the profile most appropriate for the pattern of expenditure or income. For example, salary costs are usually similar each month; therefore choose profile ‘F01’ Equal 12ths
Please note that the budget profile must be set at the time of budget submission – it is an important tool for monitoring school budgets and progress during the year. It is very important this information is as accurate as possible for the year with all the prior knowledge available.
Should you require additional assistance with your budget preparation please do not hesitate to contact a member of the Schools team (see Appendix D)
20
7.2 Budget Guidance Notes
7. 2.1 Account Classification
The chart of accounts defines the structure of a budget and is essential for determining the monitoring of financial transactions. All items of income and expenditure are set against this coding system.
The structure is defined by two codes: -
Account code
Cost centre
The account code indicates the nature of the expenditure, such as salaries and materials and the cost centre can identify schools, sections and business units. The use of both accounts code and cost centre is mandatory in coding all items of income and expenditure.
Please refer to Appendix A for chart of accounts
PLEASE NOTE:
Schools need to code expenditure and income under the correct CFR category as required by the DfE.
Account code 6500 is used for in year budget adjustments to schools. It is NOT to be used for actual transaction purposes. Schools need to vire in year budget adjustments on account code 6500 to other account codes within 6 weeks of notification or it will be assumed that it will be used as a roll forward balance into the following year and will be moved to account code 6601.
Offset of income received against expenditure codes is not permitted. All income should be coded to the correct income category and expenditure to the expenditure category.
7.2.2 Traded Services:
Only charges relating to the Council services must be coded to traded services account code beginning with 6 …External providers must be coded as below:
1. E25 - Catering supplies account code 4300, 4302 and 43010
2. E27 - Bought in professional services and Agency supply staff - curriculum
Account code 3901 and 1107
3. E28 - Bought in professional services and Agency supply staff
– other.
Account code 3902 and 1108
All invoices processed within schools must only be coded to codes specified above.
21
7. 2.3 Consistent Financial Reporting Framework
CFR is a framework of income, expenditure and balance categories that allows schools to benchmark expenditure at a national level. For benchmarking to be effective, schools should code all transactions to the correct account codes. In consultation with the DfE, the
LEA has made the WIMS system compatible with the requirements of CFR. Schools can request financial management reports from WIMS in the CFR format by selecting a
Category 22 report.
All income and expenditure headings have been listed below along with information about the type of expenditure that they should include. In addition, the account codes that come under each category are in the Budget Template. Please refer to Appendix A for list.
Please note the new account codes highlighted in green
CFR Framework Table
INCOME
I01
I02
Funds delegated by the LEA
Funding for sixth form students
I03
I04
I05
I06
I07
SEN funding
Funding for minority ethnic pupils
Pupil Premium
Other government grants
Other grants and payments
I08
I09
I10
I11
I12
I13
I14
I15
I16
I17
Income from facilities and services
Income from catering
Receipts from supply teacher insurance claims
Receipts from other insurance claims
Income from contributions to visits etc.
Donations and/or voluntary funds
Do not use
Pupil focused extended school funding and/or grants
Community focused school funding and/or grants
Community focused school facilities income
22
Expenditure
E01
E02
E03
E04
E05
E06
E07
E08
E09
E20
E21
E22
E23
E24
E25
E26
E27
E10
E11
E12
E13
E14
E15
E16
E17
E18
E19
E28
E29
E30
E31
E32
Capital income
CI01
CI02
CI03
CI04
Teaching staff
Supply teaching staff
Education support staff
Premises staff
Administrative and clerical staff
Catering staff
Cost of other staff
Indirect employee expenses
Development and training
Supply teacher insurance
Staff related insurance
Building maintenance and improvement
Grounds maintenance and improvement
Cleaning and care taking
Water and sewerage
Energy
Rates
Other occupation costs
Learning resources (not ICT equipment)
ICT learning resources
Exam fees
Administrative supplies
Other insurance premiums
Special facilities
Catering supplies
Agency supply teaching staff
Bought in professional services – curriculum
Bought in professional services
– other
Loan interest
Direct revenue financing (revenue contributions to capital)
Community focussed school staff
Community focussed school costs
Capital income
Loan - removed 06/07
Voluntary or Private income
Direct revenue financing (revenue contributions to capital)
Capital expenditure
CE01 Acquisition of land and existing buildings
23
CE02 New construction conversion and renovation
CE03 Vehicles, plant, equipment and machinery
CE04 Information and communication technology
Balances
B01
B02
B03
B05
B06
OB1
Committed revenue balances
Uncommitted revenue balances
Devolved formula capital balance
Other capital balances
Community focussed school revenue balances
Opening Pupil Focused Revenue Balance
OB2
OB3
Opening Community Focused Revenue Balance
Opening Capital Balance
7.2.4 Income Categories
I01 Funds delegated by the LA
This is the major share of funding provided by the LA to the school (as paid through the
Dedicated Schools Grant)
Includes
In year adjustments or claw backs should be deducted from here
The school's budget share
Any additional, funding from the LA that is not formally included in the school's delegated budget but is managed by the school
Funding for nursery pupils
LMS Contingencies
Revenue funding received during this financial year from previous years’ specific grants which no longer exist e.g. if the LA retained some Standards Fund revenue grants centrally and distributes this to the school in this financial year
Excludes
Sixth form funding (See I02)
SEN funding (See I03)
AEN funding (See I03)
Minority ethnic funding (See I04)
Pupil premium funding (See I05)
Capital Funding (See Capital Income)
Any carry forward balances from previous years
I02 Funding for sixth form students
24
Includes
Funding from public sources for sixth form students
Young People's Learning Agency (YPLA) funding
Any top-up from the LA for sixth form students
Excludes
Voluntary sources of funding for sixth form students (See I13)
Any carry forward balances from previous years
SEN funding provided by the LA direct to the school (See I03)
I03 SEN Funding
All delegated and / or devolved funding for pupils with special educational needs
Includes
Notional SEN funding from your school's budget share
Funding for SEN units
Funding associated with individual pupils with SEN
SEN funding provided by the LA direct to the school
Any other funds in the control of the school earmarked for the support of pupils with
SEN
AEN (additional educational needs) funding
Excludes
Voluntary sources of funding for SEN pupils (See I13)
Funds delegated by the LA to a special school (See I01)
Any carry forward from previous years
Any carry forward balances from previous years
I04 Funding for minority ethnic pupils
All delegated and /or devolved funding for minority ethnic pupils
Includes
Any government-funded source intended to promote access and opportunity for minority ethnic pupils, in support of English as an additional language or as part of a wider focus on raising attainment
Funding for minority ethnic pupils which the LA or Schools Forum chose to retain centrally and distribute to the school in this financial year
25
Excludes
Voluntary sources of funds for minority ethnic and traveller pupils (See I13)
Any carry forward balances from previous years
I05 Pupil Premium
Includes
Pupil premium funding
Excludes
Any other source of funding for deprived pupils.
Any Standards Fund grant from previous years which the LA retained centrally and distributes in this financial year (See I01)
Any carry forward balances from previous years
I06 Other government grants
Includes
Income from the Training and Development Agency for Schools (TDA)
The total of all development and other non-capital grants from government not included in the lines above
Excludes
Grants or monies from government captured in I01 to I05 above
Big Lottery Fund (See I07)
Grants not funded through government (See I07)
Any carry forward balances from previous years
I07 Other grants and payments received
Includes
Big Lottery Fund or Lottery Grants
European Union funding
Payments received from other schools e.g. from a partner school in a collaboration or cluster to meet supply cover costs to enable your school to participate in development activities organised by the partner school
Milk Subsidy
Income from recycling refunds i.e.: paper, glass, plastic, etc
Excludes
Grants received from Government sources (See I01 to I06)
Refunds or rebates from over charge or over payment, should be credited against original expense account
Any carry forward balances from previous years
Payments received from other sources for which your school has provided a service
(See I08)
26
I08 Income from facilities and services
Includes
Income from meals provided to external customers including other schools
Income from assets such as the hire of premises, equipment or other facilities
All other income the school receives from facilities and services, e.g. income for consultancy, training courses and examination fees
Any interest payments received from bank accounts held in the school's name or used to fund school activities
Income from sale of school uniforms, materials, private phone calls/ photocopying, publications, books, etc.
Income from before and after school clubs
Income from re-sale of items to pupils e.g. musical instruments, classroom resources, commission on photographs, etc.
Income from non-catering vending machines
Income from a pupil focused special facility
Rent deducted off the site manager's salary
Income from universities for student/teacher placements
Excludes
Payments received from other schools for which you have not provided a service (See
I07)
Income from community focused special facilities (see I17)
Any carry forward balances from previous years
I09 Income from catering
Includes
Where the school runs its own catering service, income from catering, school milk provision and catering vending machines
Any payments received from catering contractors, e.g. where a contractor is in default of contract or has previously overcharged the school
Income collected on behalf of catering contractors
Excludes
Receipts for catering for external customers (See I08)
Income from non-catering vending machines (See I08)
Any carry forward balances from previous years
I10 Receipts from supply teacher insurance claims
Includes
Payments from staff absence insurance schemes (including those offered by the LA) to cover the cost of supply teachers
27
Excludes
Insurance receipts for any other claim, for example building, contents, and public liability (See I11)
Any carry forward balances from previous years
I11 Receipts from other insurance claims
Includes
All insurance receipts in respect of claims for losses incurred (including absence insurance schemes for education support staff and other non-teaching staff)
Excludes
Insurance receipts from supply teacher absence claims (See I10)
Any carry forward balances from previous years
Further information:
Sometimes an insurance receipt relates to a claim for a capital item. When this is the case, the income should first be recorded under this heading and then moved into the capital section of the framework via Direct Revenue Financing, E30.
I12 Income from contributions to visits etc.
Includes
Income from parental contributions requested by the school e.g. educational visits, field trips, boarding fees, payments to the school for damage done by pupils, etc.
Excludes
Donations and voluntary funds not expressly requested by the school (See I13)
Any carry forward balances from previous years
I13 Donations and/or voluntary funds
Income should be recorded against this code if it has been paid into the main school budget during the financial year. This code excludes money that has remained in the school’s private accounts throughout the year.
Includes
All income from private sources under the control of the governing body available for the purposes of the school or for the purposes of the maintenance of any part of the school premises, including:
Income provided to the schools account from foundation, diocese or trust funds during the year to support educational needs at the school
Business sponsorship
Income from fund-raising activities
Any contributions from parents that are used to provide educational benefits for students
28
Excludes
Any contributions or donations that are not used for the benefit of students’ learning or the school
Details of balances available in trust funds or other private or non-public accounts
Any carry forward balances from previous years
I14 BLANK CODE
No funding or income should be recorded under this code
I15 Pupil focused extended school funding and/or grants
Includes
YPLA funding that is deemed to be for pupil focused extended school activities
Other sources of funding to be attributed to pupil focused extended school activities
Excludes
Any charges for these activities should still be captured in Income from facilities and services (See I08)
Any funding which is to be attributed to a community focused activity (See I16)
I16 Community focused school funding and/or grants
Includes
Sources of funding to be attributed to community focused activities
Excludes
Any funding that is to be attributed to a pupil focused extended school activity (See I15)
Further Information
In 2011-12, schools can spend their delegated budget on community facilities and will not receive ringfenced grants from the Department for community focused activities.
However, they may still receive sources of funding to be attributed to community focused activities and these should be recorded under I16.
I17 Community focused school facilities income
The purpose of this code is to capture income from community focused school facilities and activities.
Further information
In 2011-12, schools can spend their delegated budget on community facilities. They may receive income from facilities or activities where they have directly employed someone or directly contracted a third party to facilitate a community focused facility or activity rather than a pupil focused one (i.e. the facility/activity is primarily for the benefit of the wider community rather than their pupils). This income should be recorded under I17. The income they receive from facilities which are primarily for the benefit of their pupils and the
29
school but are leased out to third parties not directly employed or contracted by the school, should be coded under I08. See codes E31 and E32 for an illustrative example.
7.2.5 Expenditure Categories
Employed directly by school
Where a member of staff is recruited for employment at the school, for whom national insurance contributions are payable from the funds available to them, they are considered to be employed by the school. Their salary would be shown under the appropriate heading from E01 – E07.
Where someone works at the school, as part of a service contract, his full cost must be allocated to the relevant expenditure group for instance
- E12
– building maintenance and improvement
- E13 – Grounds maintenance and improvement
- E14 – Cleaning and caretaking
- E25 – catering supplies
E01 Teaching staff
Includes
Teachers employed directly by the school including supernumerary / peripatetic teachers on short-term contracts
Relates to all contracted full time and part time teachers paid within the scope of the
Education Act 2002
Expenditure on salaries and wages consisting of gross pay including bonus and allowances, maternity pay and the employer's contributions to national insurance and superannuation
Threshold payments and other payments relating to teacher pay reforms
Net any teachers maternity pay refunds here
Excludes
Any teachers employed casually and directly, i.e. supply teachers (See E02)
Any teacher not employed directly by the school, e.g. agency staff (See E26 or E27)
E02 Supply staff
Relates to all supply teachers paid within the scope of the School Teachers Pay and
Conditions Act (STPC Act 1991)
Includes
Salaries and wages for supply teaching staff employed directly by the school who are covering:
Curriculum release
Long term absence
Sickness absence
30
Training absence
Expenditure on salaries and wages consisting of gross pay including bonus and allowances, maternity pay and the employer's contributions to national insurance and superannuation
Excludes
Supply teachers not employed directly by the school (i.e. paid via an agency or another third party), regardless of the period of cover (See E26 for agency supply teachers)
E03 Education support staff
Includes
Salaries and wages of support staff employed directly by the school in support of students' learning:
Childcare staff
Classroom assistants / learning support assistants
Exam invigilators and exam officers
Foreign language assistants
Librarians
Nursery assistants
Pianists
Residential childcare officers at a residential special school
Supply education support staff
Workshop and technology technicians
Educational welfare officers
Expenditure on salaries and wages consisting of gross pay including bonus and allowances, maternity pay and the employer's contributions to national insurance and superannuation
Excludes
Education support staff not employed directly by the school. Where the cost is incurred as part of a service contract, these costs must be shown in the specific service grouping and not identified as separate staffing costs (See E27).
E04 Premises staff
Includes
Premises staff employed directly by the school:
Caretakers
Cleaners
Grounds staff
Maintenance staff
Porters
Messengers
Security staff
Expenditure on salaries and wages consists of gross pay, inclusive of bonus, overtime and allowances, and the employer's contribution to national insurance and superannuation
31
Excludes
Premises staff not employed directly by the school. Where the cost is incurred as part of a service contract, these costs must be shown in the framework under that service heading i.e. cleaning under E14
Premises staff employed to manage and support the school's special facilities (See
E07)
E05 Administrative and clerical staff
Includes
Administrative and clerical staff employed directly by the school:
Business managers and bursars
Clerk to the governing body
Receptionists
School secretaries
Telephonists
Typists
Expenditure on salaries and wages consisting of gross pay including bonus, overtime and allowances, maternity pay and the employer's contributions to national insurance and superannuation
Excludes
Administrative and clerical staff not employed directly by the school. Where the cost is incurred as part of a service contract, these costs must be shown in the framework under that service heading i.e. clerking service under E28
Administrative and clerical staff employed to manage and support the school's special facilities (See E07)
E06 Catering Staff
Includes
Catering staff employed directly by the school:
Cashiers
Chefs and cooks
Kitchen porters
Servers
Snack bar staff
Expenditure on salaries and wages consisting of gross pay including bonus and allowances, maternity pay and the employer's contributions to national insurance and superannuation
32
Excludes
Catering staff not employed directly by the school. Where the cost is incurred as part of a service contract, these costs must be shown in the framework under that service heading e.g. catering contract under E25
Meal time assistants (See E07)
Catering staff employed to manage and support the school's special facilities. (See
E07)
E07 Cost of other staff
Includes
Cost of other staff employed directly by the school:
Meal time assistants & midday supervisors
Adult education tutors, where the school manages an Adult Education Programme
Boarding staff of a residential school e.g. laundry assistants and night time social workers
Escorts (e.g. for pupils with medical or special education needs)
Liaison officers
Staff employed to manage and support pupil focused special facilities available at the school
Staff supervising students during before and after school sessions or clubs and during breaks
Supply cost of other staff
Youth workers
Nurses and medical staff
Expenditure on salaries and wages consisting of gross pay including bonus and allowances, maternity pay and the employer's contributions to national insurance and superannuation
Excludes
Cost of other staff not employed directly by the school. Where the cost is incurred as part of a service contract, these costs must be shown in the framework under that service heading i.e. E28
E08 Indirect employee expenses
Includes
Recruitment costs e.g. advertising, interviews, relocation expenses
Employee travel and subsistence (where not directly attributed to another CFR heading) (See E09 and E19)
Duty meals
Pensions payments including any premature retirement payments made by the school
Lump sum compensation and redundancy payments and medical fees
Car leasing expenditure where the cars are for staff use
Teacher inter-site travel costs
Childcare vouchers
Payments to Site Service Officers (caretakers, school keepers) for expenses such as house gas, rates, council taxes, electricity and telephone rental
33
Excludes
Salary costs (see E01 to E07)
Any cost for persons not employed directly by the school. Where incurred in relation to a service contract, these costs, where possible, should be allocated to the relevant
CFR heading (See E26, E27 and E28)
E09 Development and training
Includes
Development and training costs for all staff (directly and not directly employed) at the school
Cost of all in-service training courses and other development opportunities
Cost of equipment and resources to provide in service training
Excludes
Cost of supply staff used to cover the teacher absence (See E02 or E26)
E10 Supply teacher insurance
Includes
Premiums paid to insurers for supply teacher cover
Excludes
Premiums paid to insurers for cover other than for teacher absence
Vehicle insurance (See E23)
Accident and public liability insurance for persons not employed directly by the school
(See E23)
School trip insurance (See E23)
Premises related insurance (See E23)
Further information:
This can be important to help manage risk at your school. Premiums may vary according to the claims history or as schools choose the level of excess they wish to accept.
Where policies cover wider areas (i.e. for other staff and contract supply staff) please ask your insurer to apportion premiums across each appropriate CFR heading.
E11 Staff related insurance
Includes
Cover for non-teaching staff absence
Employee related insurance for accident and liability, assault, fidelity guarantee, libel and slander
34
Excludes
Insurance premiums paid to cover teaching absence for staff directly employed by the school (See E10)
Premises related insurance (See E23)
Vehicle insurance (See E23)
Accident and public liability insurance for persons not employed directly by the school
(See E23)
School trip insurance (See E23)
E12 Building maintenance and improvement
This category is a specific service grouping.
Includes
Charges by contractors for internal and external repair, maintenance and improvement to buildings and fixed plant including costs of labour and materials
Related professional and technical services, including labour costs where supplied as part of the contract / service
Costs of materials and equipment used by directly employed staff for internal and external repair, maintenance and improvement to buildings and fixed plant
Fixtures and fittings e.g. carpet, curtains, etc.
Excludes
Cost of premises staff who are directly employed by the school (See E04)
Cost of improvements that is above the school / LEA de minimis level (See CE01 or
CE02)
Cost of maintenance and improvement of special facilities or community focused facilities (See E24 and E32)
Further information:
For benchmarking purposes, you should look at this expense heading alongside the capital expenditure heading CE01 and CE02 to ensure you get a full picture that takes account of different de minimis levels.
In the event that buildings and grounds maintenance and improvement are performed under one contract, please ask your supplier to identify the costs separately.
E13 Grounds maintenance and improvement
This category is a specific service grouping.
Includes
Maintenance and improvement on gardens and grounds, including car parking, play areas, playground equipment, sports fields and pitches on the school campus
Related professional and technical services, including labour costs where supplied as part of the contract / service
35
Excludes
Cost of staff where they are directly employed by the school (See E04)
Cost of improvements that is above the de minimis level (See CE01 or CE02)
Cost of maintenance and improvement of special facilities or community focused facilities (See E24 and E32)
Further information:
For benchmarking purposes, you should look at this expense heading alongside the capital expenditure heading CE01 and CE02 to ensure you get a full picture that takes account of different de minimis levels.
In the event that buildings and grounds maintenance and improvement are performed under one contract, please ask your supplier to identify the costs separately.
E14 Cleaning and caretaking
This category is a specific service grouping.
Includes
Supplies used in cleaning and caretaking
Cost of equipment such as floor polishers, vacuum cleaners and other hardware
Charges by contractors for providing a cleaning service
Charges by contractors for providing a caretaking service
Related professional and technical services
Excludes
Cost of staff where they are directly employed by the school (See E04)
Further information:
If the school has a contract for cleaning, covering all costs including supply of labour, cleaning solutions and materials, all costs should be included in this specific service grouping.
If the school directly employs cleaning and/or caretaking staff, the costs of equipment, cleaning solutions and materials should be included in this specific service grouping and staff costs shown in E04.
For comparative purposes, benchmarking might involve comparing similar schools where the services are wholly contracted out or provided in house and comparing costs under
E04 with E14 to help identify the relative costs of contracting out versus in house provision.
E15 Water and sewerage
Includes
All costs related to water and sewerage
Emptying of septic tanks
36
Excludes
Any costs arising from repairs or maintenance to water or sewerage systems (See E12 or E13)
Further information:
Benchmarking water expenditure over a time series and across similar schools may highlight areas of overspending due to leaks or otherwise.
E16 Energy
Includes
All costs related to fuel and energy, including fuel oil, solid fuel, electricity and gas
Excludes
Any costs arising from repairs or maintenance to energy supplies (See E12 or E13)
Further information:
Energy may be a controllable expense within a school’s budget and identified separately it can lead to better conservation, for both environmental and expense reasons.
E17 Rates
Includes
Non Domestic rates expenditure
Further information:
This is separate from other occupation costs because it is imposed and therefore not a controllable expense. Unlike other items in E18, where there will be some element of control, it is a difficult area to benchmark.
E18 Other occupation costs
Includes
Rents, lease or hire charges for premises
Refuse collection
Hygiene services e.g. paper towels, toilet rolls, hand driers, etc.
Security patrols and services
CCTV/Burglar alarm maintenance contracts
Landlord's service charges
Health and safety costs, including fire-fighting equipment
Electrical testing and pest control
Excludes
Cost of staff where they are directly employed by the school (See E04 and E07)
Emptying the septic tanks (See E15)
37
If the school has a contract for e.g. security services, covering all costs including supply of labour and maintenance, all costs should be included in this specific service grouping.
E19 Learning resources (not ICT equipment)
Includes
Achievement gifts and prizes awarded to pupils
Books (library and text books)
Charges for the school library
Classroom and learning equipment (excluding ICT equipment)
Curriculum transport, including minibus expenses such as maintenance, tax, fuel
(excludes insurance see E23)
Furniture used for teaching purposes
Pupil travel for work experience placements
Purchase, lease, hire or maintenance contracts of audio-visual or other equipment used for teaching
Reprographic resources and equipment used specifically for teaching purposes
School trips and educational visits
Servicing and repairs to musical instruments and PE equipment used as part of the curriculum
Subscriptions, publications, periodicals and copyright fees associated with the curriculum
Teaching materials
Television licence fees used for teaching purposes
Payments to alternative provision services including pupil referral units (PRU), nonmaintained special schools (NMSS), and independent schools
Primary school PIP exam costs
Excludes
Curriculum ICT costs (See E20 and CE04)
Resources that are used for administrative purposes (See E22). Where a resource is used for curriculum and administrative purposes, and where costs are material, costs or estimates of the split should be coded separately at the time of purchase
E20 ICT learning resources
Includes
Educational software including site or other licences, hardware including keyboards, monitors, printers etc. used for teaching purposes
Purchase, lease, hire or maintenance contracts of ICT used for teaching
Costs of Broadband, ISDN, ASDL or other dedicated phone lines
Excludes
Resources that are used for specific administrative purposes (See E22). Where a resource is used for curriculum and administrative purposes, and where costs are material, costs or estimates of the split should be coded separately at the time of purchase
38
ICT expenditure that is over the de minimis level (See CE04)
Further information:
It is important to look at this expenditure heading with CE04 to get the full picture of hardware, software, supplies and peripherals that are purchased during the year
E21 Exam Fees
Includes
The costs of test and examination entry fees and any accreditation costs related to pupils. This includes GCSEs, A/AS levels, GNVQs.
Administrative costs e.g. external marking
Excludes
Primary schools wouldn't expect to see any expenditure in E21. However, if there are any administrative costs (e.g. for external marking) incurred by taking these exams, they should be included in E21. The cost of exam resources, like the test papers themselves, should be recorded under E19
E22 Administrative supplies
Includes
Administrative stationery
Administrative printing
Administrative reprographics
Postage
Bank charges
Advertising (but not for recruitment - See E08)
Telephone charges (not dedicated internet lines - See E20)
Medical and domestic supplies
Purchase, hire or maintenance contracts of ICT or other equipment not to be used for teaching purposes
Purchase, hire, lease and maintenance of furniture and equipment not used for teaching purposes
Subscriptions, publications, periodicals and copyright fees not related to the curriculum
School publications e.g. Parents' Report and School Brochure
Any governors’ expenses as they should not be attached to any staff related costs
Excludes
Any costs directly attributable to the curriculum (See E19 and E20)
Material costs directly attributable to another specific service grouping
39
E23 Other insurance premiums
Includes
Premises related insurance
Vehicle insurance
Accident and public liability insurance for persons not employed directly by the school
School trip insurance
Excludes
Insurance for supply teacher cover (See E10)
Staff insurance cover (See E10 and E11)
Further information:
Where a general policy includes staff related insurances, please ask your insurer to identify the premiums separately.
E24 Special Facilities
Includes
Swimming pools and sports centres
Boarding provision
Rural studies and farm units
Payments by your school to another school for the benefit of pupils at the other school e.g. by a partner school in a collaboration or cluster to other schools to promote release for training
Pupil inter-site travel e.g. moving between sites
Expenses relating to before and after school clubs
Delegated home to school transport
Indirect employee expenses and agency staff expenses relating to a special facility
Purchase of trading items for re-sale e.g. school uniforms, books, stationery etc.
Charitable donations
Community education with a benefit to the pupils at the school
Excludes
Staff costs associated with managing and supporting the special facility for directly employed staff (See E03, E04, E05, E06, E07)
Staff teaching in the special facility (See E01, E02)
School trips (see E19)
Residential special schools (costs allocated to specific E heading). AW - [seems to be
E19?]
Any community focused expenditure (See E31 & E32)
Further information:
Attribute costs for special facilities, excluding staff costs. You should mention in the text fields on the CFR collection or third party software what special facilities are provided at the school. Expenditure on special facilities which are primarily for the benefit of pupils
40
and the school should be coded under E24. Expenditure on facilities which are primarily for the benefit of the wider community should be coded under E31 and E32.
E25 Catering supplies
This category is a specific service grouping.
Includes
Non-capital catering equipment
Provisions
Other supplies used in catering, e.g. cleaning materials, protective clothing
Purchase, rent, lease or hire of catering vending machines
Full cost of service contract
Related professional and technical services
Repairs and maintenance of kitchen equipment, including safety checks
Cost of providing free school meals and milk
Excludes
Cost of staff where they are directly employed by the school (See E06)
Cost of any kitchen or catering equipment above the de minimis level (See CE03)
Further Information:
If the school has a contract for catering, all costs, including supply of labour, food and beverages are to be included in this specific grouping.
If the school directly employs catering staff, the cost of supplies should be included in this specific service grouping and staff costs shown in E06.
E26 Agency supply teaching staff
Includes
Cost paid to an agency for teaching staff that have been brought in to cover teacher absence. Includes cover of any period and for all reasons including illness, absence for training, and any leave
Excludes
Supply teachers employed directly by the school (See E02)
E27 Bought in professional services - curriculum
Includes
Professional services, consultancy and advice purchased from the LA or a third party in support of the curriculum
ICT consultancy services for the curriculum
Payments to any visiting lecturers/speakers (but not classroom teachers)
Courses purchased for students from external providers, e.g. FE colleges or other schools
41
Exam invigilators
Music teachers who are self employed
Peripatetic music teachers employed by the LA
Excludes
Cost of staff where they are directly employed by the school (See E01 to E03)
Cost of agency supply staff (See E26)
Consultancy and advice for administration (See E28)
E28 Bought in professional services - other
Includes
Professional services, consultancy and advice to staff and governors purchased from the
LA or an external party relating to:
Management
Finance
Legal
Personnel
Premises
Clerking service, if a clerk is not directly employed by the school
Management fee on PPP contracts
Excludes
Cost of staff where they are directly employed by the school (See E04
– E07)
Consultancy and advice for curriculum (See E27)
E29 Loan interest
Includes
Interest paid on overdrafts and other liabilities
Excludes
Interest received (See I08)
E30 Direct revenue financing (revenue contributions to capital)
Includes
All amounts transferred to CI04 to be accumulated to fund capital works: this will also be recorded at CI04. May include receipts from insurance claims for capital losses received into income under I11
Any amount transferred to a local authority reserve to part fund a capital scheme which is being delivered by the local authority. This will not be matched by an income figure in the Income or Capital Income lines
42
Excludes
Funds specifically provided for capital purposes (see CI01
– CI03)
E31 Community focused school staff
Includes
Cost of all staff employed directly by the school for community focused activities
Adult education tutors, where the school manages an Adult Education Programme
Excludes
Cost of school staff who are not employed directly by the school for community focused activities (See E01 – E07)
Further Information
In 2011-12, schools can spend their delegated budget on community facilities and may receive other sources of funding to be attributed to community focused activities. A school would only incur costs in E31 if they directly employ staff to facilitate a community focused facility or activity (i.e. one that is primarily for the benefit of the wider community rather than their pupils) or if the school directly contracted a third party to facilitate the facility or activity.
Illustrative example:
If the school directly employs or contracts a pottery teacher to run a class for pensioners the income would be shown in I17 (Community focused school income) and the expenditure in E31/E32 (Community focused school staff/costs). However if a pottery teacher came to the school and asked if they could run a pottery class for pensioners independently of the school, the school could agree to let out its art room to the individual in the same way it could let out any part of its premises i.e. for a wedding reception, and the income would be recorded in I08. The school would need to ensure that the letting rate covered all of its occupation costs (including utilities and insurance) and would code these as normal under E01
– E30.
E32 Community focused school costs
Includes
All running costs associated with a community focused school activity or facility
Recruitment costs, materials, etc.
Excludes
Any community focused running costs that are incurred as a result of a third party delivering the activity who has not been directly employed or contracted by the school - these need to be recorded under E01 – E30
Further Information:
In 2011-12, schools can spend their delegated budget on community facilities and may receive other sources of funding to be attributed to community focused activities. If the school lets out its premises to a third party regardless of the activity, the running costs associated with this event should be recorded as normal under E01 – E30. In contrast, if
43
the school directly employs staff or contracts a third party to facilitate a community focused activity, the associated running costs should be recorded under E32 and the staff costs under E31.
7.2.6 Capital Income
CI01 Capital income
Includes:
Capital funding from public sources which is managed by the governing body, including devolved formula capital
Proceeds from the sale of fixed assets
Capital funding received during this financial year from previous years’ specific grants which no longer exist e.g. if the local authority retained some Standards Fund capital grants centrally and distributes this to the school in this financial year
Excludes:
Voluntary income (See CI03)
Direct revenue funding (See CI04)
CI03 Voluntary or Private income
Includes:
Voluntary or private income including donations dedicated for use as capital funds
Excludes:
Voluntary or private income that will be used to fund day-to-day operations of the school (See I13)
Further information:
Voluntary or private income for capital purposes is the amount that is raised by the school, or donated to the school, for the sole intention of using the funds for investment at the school.
CI04 Direct revenue financing
Includes
The amount from revenue expenditure applied to capital financing within the school.
This is a match to E30, apart from any amount transferred to a local authority reserve under E30
Excludes
School revenue balances not set aside for a capital project.
44
7.2.7 Capital Expenditure
CE01 Acquisition of land and existing buildings
Includes:
Cost of land acquisition including fees and charges related to the acquisition
Cost of acquiring existing buildings, including fees and charges related to the acquisition
Excludes:
Construction of new buildings (See CE02)
CE02 New construction conversion and renovation
Includes:
Cost of new construction, including fees
Cost of conversions and renovations
Costs of extension to existing premises
Excludes:
Cost of land and existing buildings (See CE01)
Costs for conversion and renovation under the school's de minimis threshold - this is revenue spending (See E12)
Further information:
Expenditure from this heading can be benchmarked alongside E12 and E13 to provide an overall picture of expenditure on buildings and grounds at the school.
CE03 Vehicles, plant, equipment and machinery
Includes:
Any capitalised expenditure, including the acquisition, renewal or replacement of vehicles, equipment or machinery to be used at the school
Excludes:
Capital expenditure on ICT equipment (See CE04)
Leased equipment and vehicles
CE04 Information and communication technology
Includes:
Purchase of computer hardware and software where these are to be capitalised and are funded from capital grant
Excludes:
Where costs of ICT consultancy can be identified separately, they should be allocated under the specific revenue expenditure groups (See E27 – E28)
Costs of training for staff in the use of ICT systems (See E09)
45
7.2.8 Balances
B01 Committed revenue balance
Includes:
Committed cumulative balance of income less expenditure from revenue funding sources during the financial year and any committed revenue balances from previous years. This includes revenue funding received during previous financial years from specific grants which no longer exist (e.g. Standards Fund)
Any unspent voluntary income brought into the public accounts in that financial year
Any earmarked public funds (in accordance with the terms of the local authority’s scheme)
Any unspent and committed pupil focussed extended school funding and/or grants
Unspent amount of current financial year’s Pupil Premium grant
Excludes:
Any amount already spent during this year. All expenditure, regardless of how it was funded, should be recorded under the most appropriate expenditure heading in the framework
Details of balances available in trust funds or other non-public accounts
Any community focused school balances (See B06)
Further information:
Please include details of any items that this balance is earmarked for in the text fields when submitting your Consistent Financial Reporting return at the end of the financial year.
B02 Uncommitted revenue balance
Includes
Uncommitted cumulative balance of income less expenditure from revenue funding sources during the financial year and any uncommitted revenue balances from previous years
Excludes
Capital Revenue balances (See B03 and B05)
B03 Devolved formula capital balance
Include s
Devolved Formula Capital including roll-over from previous years
Excludes
Any other capital balances (See B05)
B04 BLANK CODE
46
No information should be recorded here.
B05 Other capital balances
Includes
Sum of all other capital balances, not already accounted for
Excludes
Balances that appear in the framework in B01 to B03
B06 Community focused school revenue balances
Includes
Any unspent community focused school balances should be recorded here
Any carried forward community focused school balances from previous years should be shown here
Excludes
Pupil focused extended school balances (see B01 or B02)
OB01 Opening Pupil Focused Revenue Balance
Sum of B01 + B02 from previous financial year
OB02 Opening Community Focused Revenue Balance
Sum of B06 from previous financial year
OB03 Opening Capital Balance
Sum of B03 + B05 from previous financial year
47
7.2.9 Additional points for CFR Guide 2011-12
Federated schools
In 2011-12, federated schools will be able to receive a single budget share from their local authority. These schools will be required to report on CFR collectively and the guidance will explain how they should do so.
Schools holding money on behalf of other schools
DfE is aware that there are instances where schools hold money on behalf of other schools as part of a hub or network to carry out projects and this affects their CFR returns.
For 2011-12 DfE have asked local authorities separately to baseline such funding as a proportion to each school initially, and so this situation should arise less frequently. When it does, the local authority should net off the income and expenditure for schools in this position before they submit the CFR returns to the Department.
02 year olds and children’s centres
At present some schools include income and spending on 02s and children’s centres in their CFR returns and others don’t.
For 2010-11 DfE will ask LAs to inform us whether their schools have or have n’t so that we use the right pupil numbers when processing the data.
For 2011-12 DfE want all schools to use the same approach. It is proposed that schools are advised to include this income and spending in their CFR returns because it appears that many do already and it would be difficult for them to separate it.
48
7.4 Accounting for VA Capital in the Consistent Financial Reporting (CFR)
Framework – Advice to Dioceses
In Voluntary Aided (VA) schools, the DfE usually provides 90% of costs by capital grant.
The governing body of the school then contributes the remaining 10% of the costs. This
10% may be drawn from any source, for example, delegated budget, private income etc.
Until the end of March 2002 VA schools, or their dioceses, were required first to pay any bills and then reclaim the 90% capital grant from the DfE. This meant that VA schools often had an overall shortfall until the grant was paid. There are a number of variations in accounting arrangements for VA capital. In some cases, the diocese acts as banker for all capital projects, simply asking the school for its 10% contribution at the end of the financial year. This 10% contribution shows up on the CFR framework.
Sometimes the school acts as the banker and purchaser for the bulk of small projects, with the diocese only taking responsibility for the management and accounting for large capital projects. This practice mirrors what probably happens in the majority of community schools. That is, the LEA takes on the project management role and accounts for the funding for large projects. Likewise, CFR then only captures capital spending that takes place on these smaller projects.
There may be some dioceses which delegate all funding and responsibility for capital work to VA schools in this case, CFR would capture this.
DfE grant should be received by the time a CFR return is required, in which case schools should account on the final CFR return for both the capital grant and the capital expenditure. The concern is that, at least for some schools’ accounts, CFR will not pick up any VA capital expenditure and that this is not ideal for benchmarking purposes.
DfE takes the view that CFR accounting arrangements for capital projects at VA schools should seek to mirror those that are in place for community schools in the same LEA. This will ensure consistency in benchmarking against schools within the same LEA.
In the case of devolved capital grant, CFR should capture 100% of grant income and
100% of capital expenditure. VA schools which make a 10% contribution to the diocese or vice versa should therefore ensure that their records are updated to include the 90% expenditure being processed by the diocese. This should not be difficult as the value of the
10% contribution will be known to the school.
In relation to VAT, it is acknowledged that schools may have different circumstances but the same accounting rule applies, i.e. VAT that is recoverable should be excluded from the expenditure reported, and VAT that is not recoverable should be included in the expenditure reported.
49
7.4.1 Definition of Capital
The acquisition of productive assets that will have a life longer than the financial year they were purchased in. Includes buildings, water and sewerage installations, lifts, heating, ventilating and similar equipment forming an integral part of buildings and structures, land development and construction site development, machinery, vehicles, electrical apparatus, office equipment, computers, furniture, fixtures and fittings not forming an integral part of buildings, durable containers, special tooling, etc.
7.4.2 Definition of de minimis level
De-minimis level is a figure set by the individual LEA which distinguishes a revenue expenditure item from a capital expenditure item. e.g. Say the de minimis level set is
£10,000. Generally, if the cost is <£10,000, then this would be classified as a revenue expenditure item. If >£10,000, this would be captured as a capital expenditure item.
Examples
If a school purchases some ICT equipment, regardless of whether it is above or below its de minimis level from its capital budget then it should record this as capital expenditure in CE04 & not E20.
If the school purchases the same ICT equipment that is below de minimis level from its revenue budget then it should record this in its revenue expenditure codes, E20 – ICT learning resources.
If the same ICT equipment is purchased and is above the schools de minimis level from its revenue budget then it should capitalise this expenditure by coding it to E30 – Direct revenue financing. E-30 will capitalise the revenue contribution shown in CI04. The ICT expenditure will then be recorded in the capital expenditure code CE04.
NB: The same rules above would apply to the purchase of office furniture or any other capital item that a school may purchase.
50
7.5 Budget Preparation Summary and Worksheets
With the development of FPS.net, schools will find the view compared to previous version different but there is more functionality schools can use. It is recommended schools attend workshops arranged by Finance during the academic year.
7.5.1 Worksheet
Budgets: Enter the school’s budgets against each account code in the individual CFR sheets in the software.
All income amounts should be shown as negative and all expenditure amounts should be shown as positive.
Account Code 6530 comes under I01, Funds Delegated from LEA, and covers Excluded
Pupils. In effect, amounts posted to 6530 reduce the Funds delegated by the LEA and, if the school wishes to include use 6530, the amount should be positive to reflect the reduction in I01.
Account Code 6 601 is the estimate of the school’s balances brought forward from 2010-11 into 2011-12 (surplus b/fwd is negative, deficit b/fwd is positive).
Account Code 6 602 is the estimate of the school’s balances to be carried forward from
2011-12 into 2012-13 (surplus c/fwd is positive, deficit c/fwd is negative).
Please check the prof iles and amend those that do not conform to the school’s transaction patterns.
When you have completed the school’s budget, please check that the budget balances if not please alter the school’s budget as necessary to bring the budget into balance.
Please email draft budget, Westminster Budget Report ( Appendix C ) by due date and return the signed CFR report ( Appendix B )
A template is sent out for completion to all schools that do not use the tool
Draft budget plan must be submitted by 31 st March and final budget completed and submitted by 30 th June each financial year.
51
Failure to do so will result in the following:
Reminder email from the Finance Support contact on 1st April to remind school to submit draft budget
Email from Senior Principal Accountant 10 days later to remind school to submit draft budget
Reminder email from Finance Support Contact 1 st June to remind school to submit final budget followed by phone call
Email from Senior Principal Accountant 10 days after to remind school to submit final budget
Letter from Assistant Director of Finance - Children’s Services before end of summer term to remind requirement to submit a final budget
7.5.2 Schools in Deficit
The Scheme for financing schools prohibits schools from planning to incur deficit budgets.
It is the responsibility of school Governing Bodies to ensure that each year’s budget plan achieves a balance between anticipated resources and anticipated expenditure. It is the school’s responsibility to notify the LEA (i.e. via the Assistant Director of Finance & resources - Children Services) that a deficit is likely to be incurred.
Deficit balances will be carried forward and deducted from the following year’s budget share. A school’s deficit balance as at 1 April must be equal to that at 31 March for which special provisions apply.
The Senior Principal Accountant in consultation with the school Head teacher and
Chair of Governors will identify the source of support required to enable the
Governing Body to prepare a deficit recovery plan.
A detailed plan to restore the budget to balance.
Senior Principal Accountant will be responsible for monitoring the progress and receipt of recovery plans within the agreed timescale
52
On completion of Budget :
1. Return your completed draft budget – Westminster Budget report ( appendix c by e-mail to Link Finance contact no later than 31 st March 2010. (appendix d for contact names)
2. Once 2010-11 accounts are closed and balances finalised, incorporate your carried forward balances including any budget adjustments. The approved final budget plan, CFR report on FPS.net must be emailed to the schools Finance contact as well as an original copy, dated and signed by both Headteacher and
Chair of Governor must be sent to Link finance Officer in Finance Support Unit,
Schools and Commissioning, 13 th Floor, Westminster City Hall no later than 30 th
June 2011.
Please ensure both draft and final Westminster Budget report are emailed to
Link Finance contact for upload to WIMS. It is also very important that the emailed copy is the same as the original signed copy sent in.
53
7.6 Salary Calculation Guidance Notes
You will find in your FPS.net Schools Financial Planning Software and information provided by HR Direct the salary spine tables for the following:
Qualified Teachers
Leadership Group – Heads, Deputies and Assistant Heads
Advanced Skills Teachers
Unqualified Teachers
Non Teaching Staff
Teaching and Learning Responsibility Payments, Special Needs Allowances and
Excellent Teachers Scheme is found in Section 5.
7.6.1 Oncost Rates
The on-cost rate for pensions is 14.1 %( subject to change) for employees in the Teacher s’
Scheme.. The employer rate for employees in the WCC Scheme (administered by the
LPFA) will increase to 16.5 % from 16 %. The thresholds at which the National Insurance
Rates apply have risen slightly. The details for National Insurance calculations for all salaries are:
7.6.2 Class 1 NICs: thresholds
Class 1 NICs thresholds
Figures to use
2010-11
In pensions scheme
NI Contributions %
Rate
Not in pensions scheme
NI Contibutions %
Rate
Lower earnings limit
(LEL)
£97 per week
£421 per month
£5,044 per year
Earnings threshold
(ET)
Upper accrual point
(UAP)
Upper earnings limit
(UEL)
£110 per week
£476 per month
£5,715 per year
£770 per week
£3,337 per month
£40,040 per year
£844 per week
£3,656 per month
£43,875 per year
12.8 %
12.8%
54
9.1%
9.1%
7.6.3 Income Tax rates and taxable bands
Rate
Starting rate for savings: 10%*
Basic rate: 20%
Higher rate: 40%
2010-11
£0-£2,440
£0-£37,400
2011-12
£0- £2,560
£0- £35,000
£37,401-£150,000 £35,001-£150,000
Over £150,000 Over £150,000
Additional rate: 50%
7.6.4 Employee vehicles: mileage payments for business travel
Type of vehicle Rate per business mile 2010-11
Car For tax purposes: 40p for the first 10,000 business miles in a tax year, then 25p for each subsequent mile
For NICs purposes: 40p for all business miles
Motorcycle 24p for both tax and NICs purposes and for all business miles
Cycle 20p for both tax and NICs purposes and for all business miles
7.6.5 Rates and Allowances - National Insurance Contributions
2010-11 2011-12
Lower earnings limit, primary Class 1
£97 £102
Upper earnings limit, primary Class 1
£844 £817
Upper Accrual
Primary threshold
Secondary threshold
Employees’ primary Class 1 rate between primary threshold and upper earnings limit
£770
£110
£110
11%
£770
£139
£136
12%
Employees’ primary Class 1 rate above upper earnings limit
Employees’ contracted-out rebate
1%
1.6%
2%
1.6%
Marrie d women’s reduced rate between primary threshold and 4.85% 5.85%
55
upper earnings limit
Married women’s rate above upper earnings limit
Employers’ secondary Class 1 rate above secondary threshold
Employers’ contracted-out rebate, salary-related schemes
Employers’ contracted-out rebate, money-purchase schemes
Class 2 rate
Class 2 small earnings exception
Special Class 2 rate for share fishermen
Special Class 2 rate for volunteer development workers
Class 3 rate
Class 4 lower profits limit
Class 4 upper profits limit
1%
12.8%
3.7%
1.4%
£2.40
£5,075 per
£3.05
£4.85
£12.05
£5,715per year
£43,875 per year
Class 4 rate between lower profits limit and upper profits limit
Class 4 rate above upper profits limit
8%
1%
Additional primary Class 1 percentage rate on deferred employments
1%
Additional Class 4 percentage rate where deferment has been granted
1%
Further information can be found on http://www.hmrc.gov.uk/rates/nic.htm
2%
13.8%
3.7%
1.4%
£2.50
£5,315
£3.15
£5.10
£12.60
£7,225
£42,475
9%
2%
2%
2%
56
Budget Guidance
8. Glossary
CONTACT POINTS AND ACRONYMS
CONTACTS FOR EACH SECTION
Schools issues Kashmira Lad
Schools Funding Graham Reed
Special Educational Needs Norman Ullah/ Pavla Clark
Fair Funding Andrew Hutton
Teachers Pay
Budget Guidance
To be confirmed
(Refer to appendix d for Link Finance contact)
ACRONYMS
AEN Additional Educational Need
AST
CFR
Advanced Skilled Teachers
Consistent Financial Reporting
DfE Department for education
DFC
DSG
Devolved Formula Capital
Dedicated Schools Grant
EIG Early Intervention grant
EMAG
ETS
FSS
FTE
LEA
ILAS
MFG
Ethnic Minority Achievement Grant
Excellent Teachers Scheme
Formula Spending Share
Full time equivalent
Local Education Authority
Inner London Area Supplement
Minimum Funding Guarantee
PRU Pupil Referral Unit
PVI Private Voluntary
SEN
SLA
Special Educational Needs
Service Level Agreement
School Teacher’s Review Body
STRB
SDG
SPA
School Development Grant
Social Priority Allowances
SSG School Standards Grant
TPAG teacher Pay Additional Grant
YPLA Young peoples learning Agency
57
58
