2012/13 FMS6 Year End
Guidance Notes
March 2013
Introduction
The allocation of funding from the Local Authority to schools is administered and controlled on an
annual basis. The LA is responsible for ensuring that an appropriate level of financial control is
exercised over allocated funding and therefore requires managers i.e. head teachers and governing
bodies to account for the use of funds. A change in 2010/11 saw a requirement from the Central
Finance Team at the LA for schools to give greater detail within the year end returns they make. A
split was introduced for all debtors and creditors to identify which relate to Croydon LA, Schools
within Croydon LA and all others. This applied right across the board and was intended to assist the
LA in knowing its true position at the end of the financial year, as well as giving schools greater detail
around their assets and liabilities. This remains in place for 2012/13 year end.
The year end schedules have changed for 2012/13 and are now in two parts – Book A and Book B.
Book A is largely figures and Book B is mainly words, apart from the private funds section. All figures
in Book A link in directly with the Balance Sheet.
The financial year starts on the 1st April and ends on the 31st March the following year. The system
of financial control employed by budget managers must aim to include all transactions of a financial
nature which relate to goods and services used within this period and exclude those transactions that
relate to goods and services used after the end of the financial year.
Closing the financial year is an important element in the system of internal control. Proper planning of
the work required and an appropriate level of time allocated to the task will ensure that:
1. Accurate figures are supplied to governing bodies, head teachers, the LA, the DfE and OFSTED.
2. Relevant legislation and regulations are complied with e.g. Consistent Financial Reporting, VAT
legislation, Construction Industry Scheme (S16 return not now required by Croydon LA)
3. Queries can be followed up.
4. Outstanding monies due to the school can be properly identified and steps taken to collect them.
Preparation for Year End – FMS6
Do not close Period 12 before completing all transactions that will affect the cash book (bank
reconciliation, period 12 payment demand, year end adjustments).
Do not process any new orders after 31st March in the old financial year (2012/13).
Do not process any transactions that will affect the cash book in 2013-14 until after your School
Finance Adviser has completed a preliminary closure of the old year (2012-13) on your system
during their year end visit. This includes cheque payments and income receipts.
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Accounts Payable
Orders
It is recommended that all ordering should stop by February half term to
allow for goods to be received and invoices processed before 31st March
2013. This will reduce the number of accruals required at year end.
Order books
If you use a new order book for each year you may wish to close your
2012-13 order book.
Outstanding
orders
Print a report of all outstanding orders and cancel any old or duplicate
orders.
FMS Route: Reports>Accounts Payable Reports>Purchase Orders>Select
View Outstanding Orders>Click OK
Invoices
As far as possible invoices relating to 2012-13 should be included in the
2012-13 accounts. Suppliers should be encouraged to submit invoices as
quickly as possible for goods and services supplied on or before 31st March
2013. You can continue to process and authorise invoices relating to 201213 in 2012-13 after the 31st March 2013 but do not raise any cheques.
You may raise the cheques in the new year 2013-14 after your SFA has
completed a preliminary close.
Unauthorised
invoices
Check that there are no unauthorised invoices on your system.
Aged creditors
Print an aged creditor report. Follow up and pay/ensure credit notes are
received for any invoices over 30 days old.
FMS Route: Reports>Accounts Payable Reports>Supplier Analysis>Aged
Creditor>in the View area select Detailed Report> in the sequence area
select Creditor Name>Click OK
Credit notes
For credit notes identified on the aged creditor report please request a
reimbursement from the supplier unless the credit note is likely to be used
in the near future.
Cheques
Raise all relevant cheques before 1st April 2013. Do not raise any cheques
in 2012-13 after 31st March 2013. Do not raise any cheques in the new
year 2013-14 until after a preliminary close down of 2012-13 accounts has
taken place.
Expenditure
Check that all expenditure relating to 2012-13 has been posted to the
correct areas. Check the detailed transaction listings for each cost centre
and ledger code.
Post all corrections that are needed to comply with Consistent Financial
Reporting requirements? E.g. for any transactions posted to the wrong
ledger codes.
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Accounts Receivable (Income)
Income local income
Check that all income relating to 2012-13 has been posted to the correct
areas/cost centres/ledger codes whether or not the money has been paid
in to the bank.
Income funding
Check that all cash transfers of Ad Hoc funding as advised on monthly
sheets have been posted.
Check that all monthly transfers of Delegated Funding have been posted.
Reconcile all funding ledger codes on FMS to relevant figures on final
March 2013 funding sheet.
Monies owed
to the school
If the school provides goods or services to be invoiced for payment, you
should raise these invoices as soon as practicable after the provision of
such goods or services. This will ensure that all monies owed to the school
have been received and processed on the finance system by 31st March.
Accounts
Receivable
Verify all outstanding balances in Accounts Receivable and ensure that all
‘old’ or incorrect items are cancelled in 2012-13.
Aged debtors
Print an aged debtor report and ensure that all balances shown are valid.
Route: Focus>Accounts Receivable>Reports>Aged Debtor Report>click OK
VAT
VAT – It is the school’s responsibility to ensure that all VAT is correctly reported to and reimbursed
from the LA. Where VAT has not been properly accounted for and becomes ‘Time Lapsed’ it will be
charged to the school’s accounts as a non vatable item.
VAT claim
When you have completed all the other transactions relating to 2012-13,
process the final VAT claim for 2012-13 (Period 12)
VAT
reimbursements
Post all VAT reimbursements that will appear on the bank statement until
the 31st March 2013 in 2012-13.
Vat reimbursed after the 31st March i.e. appearing on bank statements
after this date should be posted in the new year 2013-14 after a
preliminary closure of 2012-13 accounts.
VAT
reconciliation
The net balance of the VAT accounts should equal the total of all
outstanding VAT reimbursement claims.
Run a Trial Balance or a Balances and Reserves Report to check VAT
balances.
List all amounts still to be reimbursed on the Year End Pro-formas
Schedules
VAT adjustment
Net off the balances on the VAT codes to VAT Reimbursement code. NB
the balance on the VAT reimbursement code should then be equal to the
total of claims yet to be reimbursed.
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Petty Cash
Petty Cash
expenditure
Post all petty cash expenditure transactions relating to 2012-13. Check
that all petty cash transactions entered on FMS6 have been posted.
Route: Reports>General Ledger>Petty Cash>Unposted Folio Listing>select
the relevant Account>Click OK
Petty Cash
reimbursement
Reimburse the Petty Cash balance up to the imprest level.
Petty Cash
cash-in-hand
Print a Petty Cash report from the system showing the current cash
balance and sign the report to confirm that the cash balance in the petty
cash box agrees to the Cash-in-Hand balance shown on the report.
Route: Reports>General Ledger>Petty Cash>select required views e.g.
01/04/12 to 31/03/13>Click OK
Bank Account(s)
Reconciliation - Each school must return a reconciliation of the cash book (ledger) balance as
shown in the year end balance sheet to the bank statement balance as at the 31st March 2012.
Unpresented
cheques
Cancel and reissue (if applicable) any unpresented cheques that are over 6
months old before 31st March 2013.
Bank deposits
Check that any bank deposits over 1 month old on the system but which
have not yet appeared on a bank statement are genuine deposits.
Bank
Reconciliation
Only complete the bank reconciliation for the period to the 31st March
after you have entered all the items that will affect the cash book balance
in FMS6 in 2012-13. Do not process any transactions in 2013-14 that will
affect the cash book until after a preliminary close has taken place.
STEP 1 Ensure that ALL the transactions that are appearing on your March
bank statement have been entered on FMS6.
STEP 2 Re-print the previous statement e.g. Feb statement and print an
unreconciled items listing.
STEP 3 Reconcile the items on the bank statement to the items appearing
in the cash book (bank) on FMS6.
STEP 4 Print the bank reconciliation (statement of items reconciled) and
the unreconciled items report as usual.
STEP 5 Print a Balances and Reserves Report.
STEP 6 Complete Year End Schedule 5 reconciling the ‘Bank Balance’ on
the Balances and Reserves Report to the Bank Statement balance. I.e.
identify items that are appearing in the ‘cash book’ (on FMS6) but have not
yet appeared on the bank statement. If there are any items that are
appearing on the bank statement but that are not on FMS6 these will be
part of the reconciliation also.
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Year End Adjustments
Ensure that all year end adjustments are entered correctly on FMS6
Dinner money
‘Parent Pay’
If you are using the ‘cashless’ method for collecting dinner monies, you
must reconcile the balance on the school accounting system to the balance
on your suppliers catering software system to identify deficit accounts and
payments in advance. The net balance on the Initial system should equal
the difference between dinner monies and charges received in FMS6 after
adjusting for monies or charges not received (see above).
Dinner money
‘cashless’
Check that all dinner monies/school meal charges have been received and
posted correctly. The transactions which appear each month on the
payment demand in respect of income and charges for school meals should
be reconciled to the source documents (e.g. paying in slips, sheets
received from the kitchen showing the number of meals taken). Year end
adjustments due in respect of monies or charges not received can then be
identified.
School
journey/trips
Check that the net balance showing in the various school trips cost centres
in FMS6 agrees to any other records held by the school e.g. the net total of
all payment cards held re installments paid by individual pupils.
School
journey/trips
Where a trip is to take place in 2013-14 but payments have been
received/made (deposits etc) in 2012-13 list the details so that the correct
amounts can be transferred to 2013-14 accounts for any prepayments of
income or expenditure.
School
journey/trips
Where a trip has taken place in 2012-13 but further monies are due from
parents or to the supplier list the details so that the correct amounts can
be transferred into 2013-14 accounts in respect of any monies still owed.
P12 Payment
Demand
Process the P12 payment demand using a NORMAL JOURNAL. Debit the
relevant expenditure codes and credit the relevant income codes as usual
but post the balance (usually a credit) to PY01. The balance should equal
the total amount of the March payment demand.
P12 Payment
Demand
In the new year process a cash book journal debiting PY01 and crediting
the bank after your SFA has completed a preliminary close.
Ringfenced
Grants
Identify any ringfenced grants received in 2012-13 e.g. Capital grants,
Pupil number contingencies that should be carried forward into 2013-14.
Enter details on year end pro-forma schedules.
Devolved
Formula
Capital
Most schools should have received the balance of their Devolved Formula
Capital by March 2013. An accrual will be required for any monies not
received by 31st March 2013.
VA capital
Check that the governing body contribution has been correctly processed
on the system. Identify and account for any amounts still to be
reimbursed.
ICT capital
Reallocate all relevant ICT capital expenditure / income from revenue to
capital.
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Year End Adjustments (continued)
Balance funds
Most schools in Croydon will have at least 5 funds. (6 for extended schools
with community focused expenditure e.g. Children’s Centres). Check that
the reserves/deficit balance in each fund is correct. If errors are identified
e.g. capital income or expenditure posted to revenue funds etc, make any
necessary adjustments.
Revenue
Contribution
Check that Revenue Contribution to capital (E30) is equal to CI01.
Accrued
income
Enter details on the year end pro forma schedules of income due in respect
of goods or services supplied in 2012-13 but where the cash will not be
received until 2013-14.
Accruals are not mandatory for items under £500 in Primary Schools and
£1000 in Secondary
Accrued
expenditure
Enter details on the year end pro forma schedules of expenditure due in
respect of goods or services received in 2012-13 but where payment will
not be made until 2013-14.
NB Commitments on FMS6 are not included in actual balances at year end
and may therefore need to be accrued, if goods received or services
rendered.
A reversing journal should be used to process all accruals and
prepayments. The accrual/prepayment should be processed in P12 in
2012-13 and the reversal in P1 in 2013-14.
Accruals are not mandatory for items under £500 in Primary Schools and
£1000 in Secondary
Prepaid
income
Enter details on the year end pro forma schedules of income due in respect
of goods or services to be supplied in 2013-14 but where monies have
been received in 2012-13.
Prepayments are not mandatory for items under £200
Prepaid
expenditure
Enter details on the year end pro forma schedules of expenditure due in
respect of goods or services to be received in 2013-14 but which have
been paid for in 2012-13.
Prepayments are not mandatory for items under £200
Stock
List details of stock held at 31st March 2013. Value stock at the lower of
cost or net realisable value. Assuming that the items used from stock are
used in the order that they are received from suppliers, then the value of
stock items held at year end should be based on the last price paid.
However, in the case of school uniform or other items for resale, if the last
price paid is higher than the amount you expect to receive when the goods
are sold then the goods should be valued at the expected sale price (net
realisable value).
Enter details on the year end pro forma schedules.
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Setting Up the New Financial Year
A new financial year must be defined before attempting a preliminary closure. You should take a
back up of the 2012-13 data before defining the new financial year.
New financial
year
Route: Tools>Define Financial Years>Define/Edit Years>click the Add
button at the right hand side of the screen
Year Description - e.g. 2013-14
Number of periods - should be twelve
Calendar Month – should be selected
Next Year Begins – the date of the next financial year will be displayed
automatically – for 2013-14 it should be 01/04/2013
Check spending against C.C. – select this box to monitor cost centre
expenditure
Order Book Open – select this box to automatically open your order book.
If you use a new order book each year you will need to define the new
order book and open it through the Tools route.
Record Deliveries – select this box if you wish to record delivery notes for
items ordered
Copy Service Term Mappings – select this box if you are using the
personnel module and wish to retain the service term mappings already
defined in FMS
Click the Save button to save your settings
Existing structures will be transferred automatically from 2012-13 to
2013-14
Opening the
new year
To open the new financial year:
Route: Tools>Define Financial Years>Define/Edit Years>highlight 201314>select the Open Year button
The system only allows 2 years to be open at any one time.
Defining VAT
periods
New VAT periods must be defined for each financial year.
Route: Tools>Define VAT Periods>select the Add button on the right hand
side of the screen. The appropriate settings for Croydon schools are
shown below:Description
Start Date
End Date
No. Periods
Copy from Previous Year
Days per Period
2013(VAT)
01/04/2013
31/03/2014
12
Select
n/a
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CFR Returns and Closure of Financial Year
Please ensure that back ups of 2012-13 data are taken.
Preliminary
close
For schools that buy in to the Financial Services SLA your School Finance
Adviser will complete this for you.
CFR
preliminary
report
Run a preliminary CFR report. In previous years a number of common
errors have been identified so please check the following:
1. The total reserves / deficit figure equals the total reserves / deficit
2.
3.
4.
5.
6.
figure showing on the balances and reserves report for all relevant
funds.
That exam fees (E21) has a figure in for secondaries and is zero for
primaries
That sixth form funding (I02) is zero for all schools except for
schools with sixth forms.
Check that the funding showing in the various income codes agrees
to the funding sheet. Details of any accruals/deferrals must be
recorded on the year end pro-forma schedules.
Check that the reserves /deficits from 2011-12 +/- the in year
surplus/deficit for 2012-13 equals the final reserves/deficit for
2012-13.
Check that the totals showing against each CFR category are as you
would expect.
CFR
preliminary
report
Complete and return the preliminary CFR report – see Summary of
SFVS
Complete and return the SFVS in full – see Summary of Documents
Year End
Schedules
Complete and return the Year End Schedules – see Summary of
Final CFR
return
After your CFR return has been checked you/your SFA will be advised if
there are any issues by May half term at the latest. If all is ok, then you
can submit the final CFR return – see Summary of Documents Required.
Documents Required
Required
Documents Required
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Summary of Documents Required
A blank template of the year end pro forma schedules populated with the final March funding is available
now.
Please note that additional lines cannot be added this year so you may have to group certain
suppliers/cost centres into one line.
All electronic copies of documents should be e mailed to schools.finance@croydon.gov.uk
from the school’s email address.
Please ensure that the title of all emails includes the school cost centre number e.g. 9999 and a description
e.g. Preliminary CFR, yearendschedules.
Year End
Pro-forma
Schedules
Book A
Year End
Pro-forma
Schedules
Book B
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
1 – Balance Sheet
2 – Analysis of Balances
3 – Receipt of Funding
4 – Funding Reconciliation
5 – Bank Reconciliation
A – Croydon LA Debtors
B – Croydon LA Creditors
C – Non Croydon LA Debtors
D – Non Croydon LA Creditors
E – Accrued Income (not LA)
F – Accrued Expenditure (not LA)
G – Prepaid Income (all)
H – Prepaid Expenditure (all)
J – Stock
K - VAT
L – Aged Debtors (all)
M – Aged Creditors (all)
N – Cost Centre Summary
O – Trial Balance
P – Unreconciled Bank Items
Q – Balances & Reserves
R – CFR Return
Original document
with
manuscript signature(s) for
Schedules 1, 2, 3
Electronic copy of all schedules
by Thursday 18th April 2013
Title of filename & email
subject:
xxxxyearendschedules1213
Where xxxx is the school cost
centre number (no E)
See Fronter Finance Room for
more details
School Accounts (Private funds)
Contract Details
Consistent
Financial
Reporting
Preliminary
Return
Once your Preliminary CFR return is ready, you should
Email it to schools.finance@croydon.gov.uk
from the schools email address.
We do not require a signed version of this report
Electronic copy by Thursday
18th April 2013
Consistent
Financial
Reporting
Final Return
Once validation checks have been completed on your
preliminary CFR return, you will be advised if there are
any issues. If you have not heard anything by May half
term at the latest, you can assume it is safe to submit
your final CFR return to the LA. This should be signed
by the Headteacher and a school governor. We require
an emailed electronic version of the return, as well as a
Original document
manuscript signature(s)
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with
Final scanned, signed, copy by
Friday 21st June 2013
scanned signed copy.
Bank
Reconciliation
The March bank reconciliation should be scanned to
CFL Finance (Schools). This should include:

A system report showing the items reconciled

A system report showing the unreconciled items
A copy of the bank statement should also be scanned
to CFL Finance (Schools)
A reconciliation of the bank statement balance to the
current ledger balance showing details of all
outstanding items should be completed in the year end
schedules (Schedule 5).
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Documents scanned to
schools.finance@croydon.gov.uk
with signature(s) by Thursday
18th April 2013