Schools Consistent
Financial Reporting
GUIDANCE NOTES
TO BUDGETING
2015/2016
Produced by the Schools Finance & Training Team – February 2015.
Guidance Notes to Budgeting 2015/2016
Contents:
A)
Preparing your Budget 2015/16
Page
3- 4
B)
Completion of Budget Plan
3-6
C)
Income Budget Planning
7 – 13
D)
Staff Expenditure Budget Planning
14 – 21
E)
Non Staff Expenditure Budget Planning
22 - 32
F)
Items Fully Funded by the LA
32
G)
Capital
33 - 35
H)
Balances
36 - 38
Appendices:
1.
Budget Plan. Including completion instructions and links to the forecast
statement with instructions.
2.
Inflation Factors 2015/2016
3.
Headteachers & Deputy Headteachers Pay Information 2015/2016
4.
Teachers & Supply Teachers Pay Information 2015/2016 –
4a.
Teachers Pay
4b.
Advanced Skilled Teachers Pay
4c.
Leadership Pay Information
5.
Unqualified Teachers Pay Information 2015/2016
6.
Clerical and Ancillary, Nursery Nurses, Mid-day Supervisors & Site Agents,
Caretakers, Cleaners and Swimming Pool Cleaners Pay Information
7.
Part-time Proportion Tables –
7a.
Teaching staff
7b.
Non-teaching staff
8.
Annual Leave Entitlements – Non Teaching Staff
9.
Earnings Limits & NIC rates –
9a.
Not in the pension scheme
9b.
In the pension scheme
10. Detailed Code List
2
A) Preparing your budget 2015/16
Specific Issues to Consider for 2015/16: Consideration should be given to the following
issues prior to commencement of budget planning:i.
The level of balances anticipated at 31 March 2015 and the level of balances the
school needs at 31 March 2016.
ii.
Actual expenditure compared with budget in 2014/15 and the movement of
balances upwards or downwards between April 2014 and March 2015.
iii.
Changes in pupil numbers and level of staff resources required.
iv.
Your medium term forecasts. Reduction in basic levels of funding and the likely
further reductions in 2016/17 and beyond. A basic assumption that you could make
is that unit funding rates in the Primary and Secondary Sectors will reduce by 1.5%
and school will be protected by a further 1.5% minimum funding guarantee.
v.
Income likely to be received in respect of top up funding for high needs pupils both
from Milton Keynes and other Local Authorities.
vi.
School Teacher Pay Review Board and Government recommendations in
connection with the payment of increments in the teacher main scale and the
Government’s Public Sector pay policy that pay increases should average no more
than 1% across the sector in 2015. Progression of teaching staff up the pay scales
should now be linked to performance reviews.
vii.
Increase in the employers’ contribution to the Teachers’ Pension Scheme of 2.3%
from 14.1% to 16.4% from September 2015.
viii.
Milton Keynes Council non-teaching staff pay settlement to March 2016.
ix.
Changes to the payment of increments for staff on Milton Keynes Council conditions
- increments payable in October 2015, subject to performance appraisal.
x.
Implications of Job Evaluation in respect of any protected salaries.
xi.
Cost changes in respect of utilities. (See Appendix 2)
xii.
Inflation on other goods and services.
xiii.
Bank charges – Schools will need to budget for bank charges for 2015/16 under
code E22. A schedule of charges will be made available to schools.
xiv.
Interest on balances – the floor interest rate on credit balances for schools that bank
in the Council’s pooling arrangements has been reduced to 3%.
xv.
Universal Infant Free School Meals - please estimate income using the calculator
on the LMS website. UIFSM Calculator. Assume the same rate per meal per day for
the 2015/16 academic year as used for 2014/15 academic year, and update data
references by one year. Assume the small school supplement ceases.
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A) Preparing your budget
xvi.
Other grants –Primary PE and Sports Grant continues for the 2015/16 academic
year.
xvii.
The full year impact of the teachers’ pension increase for 2016/17 and the increase
in NI contributions from April 2016 for staff that are contracted out of the additional
state pension which will remove the 3.4% rebate on employers contributions, which
may impact on the level of balances a school considers it needs to hold.
xviii.
Schools whose budget shares are protected by the Minimum Funding Guarantee
should plan their budget in anticipation of reductions of funding in subsequent years
particularly where their pupil numbers are static or decreasing.
xix.
When making decisions to utilise balances, ideally schools should be using those
balances towards one off expenditure. If balances are used to fund additional staff
schools should be satisfied that that those costs can be sustained in the future
when balances have been diminished through increased income or those
appointments should be on a fixed term basis so that commitments are not made
that cannot be sustained from future income levels.
B) Completion of the Budget Plan.
1.
Timescale: In line with the Scheme for Financing Schools (2.3 Submission of Budget
Plans) (Scheme for Financing Schools) approved school budgets (proforma attached
Appendix 1) must be submitted by 1st May to the Schools Finance Team
(SchoolsFinance@milton-keynes.gov.uk) along with the budget profile for the year. The
budget will need to take into account estimated year end balances which will be formally
confirmed during May or June (see below).
The submission should be made electronically by the Head Teacher by email, copying in
the Chair of Governors, confirming that the budget has been approved by the Governing
Body. A signed hard copy must be retained by the school on file but no hard copy is
required by Milton Keynes Council.
2.
Authorisation: The original budget plan must be approved by the Governing Body. Each
budget plan should be signed as authorised by two officers in line with the financial
authorities in place at the school. Usually this will be fulfilled by a governor (normally the
chair of governors, or the chair of the finance committee) and an officer (the
headteacher). This signed copy must be retained by the school.
3.
Revision of Budget Plan: The school should regularly review its budget plan and if
changes are made, submit a revised plan in the format of the original to the LA. In any
event the school is required to formally review its budget plan at the half year and
report such to the LA (Scheme for Financing Schools – 2.3 Submission of Budget
Plans) Scheme for Financing Schools. If changes have been agreed, then the revised
plan in the same format as the original should be submitted to the LA.
If, after review, no change is necessary then an e-mail to the LA stating that the review
has been carried out and that no changes have been made will be sufficient. Even if
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B) Completion of the Budget Plan.
no change has been made to the overall budget a revision of the profiles is
required. In either event a submission to the LA should be made by no later than
Monday 2nd November 2015.
After the November revision, budget plans should only be revised and submitted to the
LA if there are significant material changes.
Schools must ensure that the Governing Body meetings are scheduled at the
appropriate time to meet the deadlines set.
4.
Purpose of Budgeting: The annual school budget plan sets out how the total budget
delegated to the school is to be spent. It has a number of functions as follows:
 to set out the annual income and expenditure budget and financial implications of the
school’s policies. As such it should be prepared in conjunction with the schools
development plan. OFSTED guidance on school development plans states the
following. ‘The school should have a medium term educational and budget plan
(covering at least three years) indicating the intended use of resources in achieving its
educational goals. Even though the funding available to each school will change
annually, the school development plan should outline which areas are the priority for
spending and why’.
 it provides a framework within which those who are responsible at the school for making
payments and securing income should operate;
 it provides governing bodies with authority to incur expenditure, subject to rules relating
to virement (see Financial Regulation 4) ;
 it provides the basis on which to monitor financial performance; and
 it provides a framework for governing bodies to ensure that expenditure reflects the
principles of Best Value.
5.
Consistent Financial Reporting Format: The Consistent Financial Reporting
framework’s main aim is to allow for the benchmarking of expenditure at a national level.
By comparing spending and consumption patterns of services, all schools will have the
tools to promote self-management and value for money.
The Consistent Financial Reporting framework summarises financial information at school
level into headings:





Income
Expenditure
Capital Income
Capital Expenditure
Balances
5
6.
Detailed Account Code List: The detailed code list at Appendix 10 will assist you in
identifying which income and expenditure codes are attached to each budget heading.
Please contact the Schools Finance Team if you require further assistance.
Please note that one new account code has been created in I03 4190122 which is to
be used for high needs top up payments received from Local Authorities other than
Milton Keynes.
SchoolsFinance@Milton-Keynes.gov.uk
7
Profiling:
All schools must submit a profiled budget. This means you have to allocate your budget
across the 12 monthly periods when income will be received and payments will be made.
 Schools should look closely at the previous years spending to identify appropriate
profiles, e.g. Rates over 10 months.
 All revenue & capital income paid by the LA should be profiled in line with the cash
advance schedule.
 Profiles must add up correctly and balance.
 No entries can be made using pence (except within the brought forward balances)
 No formulae can be used within the budget plan spreadsheet.
 Brought forward balances must be entered into the profile in April and the carry forward
entered in March.
 Any un-profiled or un-realistically profiled budget plans will not be accepted and
will be returned to the school for further consideration.
8.
Format of Budget Plan: The budget plan is linked to the forecast template. The
spreadsheet that all schools must use is available on the schools website under the
heading “Local management of schools scheme for financing schools and procurement
guidance” or attached as Appendix 1. (This template must be used and downloaded from
the website at the beginning of each financial year, using a previous years template will
not reflect any changes made to the CFR structure or improvements to the template).
Instructions on how to use the budget plan and forecast template are included within the
spreadsheet.
The budget plan template spreadsheet also includes a budget plan workings and notes
page. It would be helpful for schools to add notes about unusual items that only they know
about to save on the number of queries that come back from the Schools Finance Team
i.e. if the profile of your teachers goes down in September, it maybe because some
members of staff are leaving and not being replaced. Or, if one of your income headings
is higher than you have been notified by the LA, this could be because you know you are
going to receive additional funding.
9
Completion of the Budget Template: In completing your budget plan, please ensure in
particular that:

Only the first worksheet, “Budget Plan Template” needs to be completed.
6

The total of all budget headings equates to the level of funds for 2015/2016, including
changes in balances:- Cells E105 and E106 must equal zero

De-delegated income and expenditure is excluded from the budget plan.

The figure for Rates is taken from the formula allocation sheet.

Each budget heading clearly indicates the amount or, if not applicable for this year, is
clearly indicated by “0”.

The budget plan is profiled across the twelve months of the year i.e. the amount of
income you expect to receive each month is shown against each relevant month. The
expenditure is split across the months as you use it. When deciding the profile, please
refer to the previous years’ data. Each row in Column S should equal zero.

No entries are made using pence (except within the brought forward balances) or
formulae included in the budget plan template.
10. Forecast Statements
Following a recent review it has been decided that in future schools will routinely only
need to submit their Quarter 3 Forecast statements to the Schools Finance Team for
monitoring purposes. If school monitoring during the year identifies that it is at risk of
going into deficit however it must notify the LA immediately. More frequent in year formal
reporting may be requested for those schools considered by the LA to be financially of
higher risk
11. Cluster/Consortia: If schools still have outstanding cluster/consortia funds from
previous years, they should use the guidance issued separately under the LMS website
to code and control their Cluster/Consortia funding.
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Checking of Budget Submissions by the Schools Finance Training Team: The
School Finance and Training team will review budget plan return in particular:

Budgeted Income in I01 to I04 is at the level of budget allocation
(Schools may budget for different levels of SEN and High Needs top up and Pupil
Premium, particularly if received from other LAs but should provide an explanation and
reconciliation on the Budget Plan Workings and Notes worksheet)

Budgets are profiled over the 12 month period

Balances brought forward equal those carried forward at 31st March 2015

The school has not set a deficit budget.

The budget and movement in balances reconciles to zero ( Cells E105 and E106)
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C) Income Budget Planning
N.B. Income budgets should be shown as a negative (minus) figure.
I01 - Funds delegated by the LA
This is the major share of funding provided by the local authority (LA) to the school. All
delegated funding other than sixth form funding should be included here.
Includes
 The school's gross budget share, before any de-delegation for central services
 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
 Notional high needs funding included in budget share
 Pre-16 place funding for special units, resourced provision, alternative provision and special
schools
Excludes
 Sixth form funding (See I02)
 High needs funding outside the budget share i.e. top-up funding (See I03)
 Minority ethnic funding which is not already included in the budget share (See I04)
 Pupil Premium funding (See I05)
 Capital funding (See Capital Income)
 Any balances carried forward from previous years
This budget should be based on the figures notified to you by the LA.
I02 - Funding for sixth form students
Includes
 Funding from public sources for sixth form students
 Education Funding Agency (EFA) funding
 Additional Learning Support funding for sixth forms from the EFA within their main EFA
budget allocations
 16-19 Bursary Fund
 Post 16 place funding (Elements 1 & 2)
Excludes
 Voluntary sources of funding for sixth form students (See I13)
 Any balances carried forward from previous years
 High needs top-up funding (Element 3) provided by the LA direct to the school (See I03)
This budget should be based on the figures notified to you by the EFA and confirmed by the LA.
8
C) Income Budget Planning
I03 - Special educational needs (SEN) and high needs funding
Funding outside the school budget share
Includes
 High needs top-up funding (from any commissioner – home LA, other LA or schools)
 Level 3 top-up funding from other LAs
 Any other high needs funding paid outside the budget share
 Any top-up (Element 3) from the LA for sixth form students
Excludes
 Voluntary sources of funding for high needs pupils (See I13)
 Place funding delegated by the LA to a special school or resourced unit (See I01)
 Notional SEN funding from your school’s budget share
 Any balances carried forward from previous years
The figures notified to you with your budget share include only those pupils currently in your
school with those pupils known to be leaving the school funded to 31 August. Schools should
make their best estimate of top up funding for pupils joining the school or remaining in the sixth
form, and for any funding provided by other Local Authorities.
I04 Funding for minority ethnic pupils (Not being used)
Any devolved funding which is allocated outside the school’s budget share
Includes
 Any publicly-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
Excludes
 Voluntary sources of funds for minority ethnic and traveller pupils (See I13)
 Any balances carried forward from previous years
We do not expect that schools will receive any income in this area and thus have not
included this in the budget plan.
I05 – Pupil Premium
The income budget should be based on the figures notified to you by the LA (4190150). You
may also receive funding from other LA’s for children that they are responsible for.
Includes
 Pupil Premium funding
 Pupil Premium funding received directly from LAs other than the school’s maintaining
authority
 Summer school funding
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C) Income Budget Planning
Excludes
 Any other source of funding for deprived pupils
 Any balances carried forward from previous years
I06 - Other government grants
All other Government grants received.
Includes
 Income from the National College for Teaching and Leadership
 The total of all development and other non-capital grants from government not included in
the lines above
 SALIX loans (i.e. specific funding from SALIX for energy efficiency projects)
 Year 7 Catch Up Premium
 School Direct salaried programme
 VCSE National Prospectus Grant
 Infants Universal FSM funding
Excludes
 Grants or monies from government captured in I01 to I05 above
 Payments by government agencies for goods or services provided by the school
 Big Lottery Fund (See I07)
 Grants not funded through government (See I07)
 Any balances carried forward 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 primarily for the benefit of your own and other
schools
 Milk Subsidy
 Income from recycling refunds, e.g. paper, glass, plastic
 2 Year Olds Demonstration Project
 ESPO matched funding for phonics
Excludes
 Grants received from government sources (See I01 to I06)
 Refunds or rebates from over charges or over payments on expenditure, which should be
credited against your original expense account
 Any balances carried forward from previous years
 Payments received from other sources for which your school has provided a service (See
I08)
 Payments received from other schools for services provided by your school (See I08)
10
C) Income Budget Planning
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 the sale of school uniforms, materials, private phone calls / photocopying,
publications, books, etc.
 Income from before and after school clubs
 Income from the re-sale of items to pupils e.g. musical instruments, classroom resources,
commission on photographs
 Income from non-catering vending machines
 Income from a pupil focused special facility
 Rental of school premises including deductions from salaries where staff live on site
 Income from universities for student/teacher placements
 Income from Energy/Feed in Tariffs
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 balances carried forward from previous years
Sales
1.
2.
3.
4.
Only set a budget for sales if you can justify the amount of income.
Review your budget for sales taking into account previous years’ income.
Review any sales projects.
Apply the inflation figure to your budget.
Lettings
1.
2.
3.
4.
5.
Review your budget carefully.
Consider the rate you are charging for letting and increase this if appropriate.
Only set a budget for lettings where you can justify the amount of income.
Review any existing and new lettings.
Consideration should be given to the effects of lettings on the following budgets:
 Energy and Water
 Site Agents
 Supplies and Services
I09 - Income from catering
Includes
 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
11
contract or has previously overcharged the school
C) Income Budget Planning
Excludes
 Receipts for catering for external customers (See I08)
 Income from non-catering vending machines (See I08)
 Any balances carried forward from previous years
1. Review your budget carefully.
2. Review numbers on roll and what proportion take a paid or free meal.
3. Set a realistic budget.
I10 - Receipts from supply teacher insurance claims
Payments received from staff absence insurance schemes to cover the cost of supply
teachers.
Includes
 Payments from staff absence insurance schemes (including those offered by the LA) to
cover the cost of supply teachers
Excludes
 Insurance receipts for any other claim, for example building, contents, and public liability
(See I11)
 Any balances carried forward 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 balances carried forward 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.
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.
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
Excludes
 Donations and voluntary funds not expressly requested by the school (See I13)
12
C) Income Budget Planning

Any balances carried forward 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 (not expressly requested by the school) that are used to
provide educational benefits for students
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 balances carried forward from previous years
I15 - Pupil Focused Extended School Funding and/or Grants
Income or grants for any out of school hours activities run for the pupils of the school.
Includes
 EFA 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
Income or grants for any activities run for the community (including parents).
N.B. Children’s Centres have specific codes
Includes
 Sources of funding to be attributed to community focused activities
13
C) Income Budget Planning
Excludes
 Any funding that is to be attributed to a pupil focused extended school activity (See I15)
Further Information
Schools can spend their delegated budget on community facilities and will no longer receive
ring-fenced 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
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 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.
.
I18 - Additional Grants for Schools
Includes
Funding from this additional grant for:
 Secondary schools to release a PE Teacher to work with local primary schools
 PE and Sports Grant for primary and secondary schools
Excludes
 Any other source of funding or income for the above activities
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D) Staff Expenditure Budget Planning
N.B. Expenditure budgets should be shown as a positive figure.
E01 to E07 - Employee Budgets
1. To calculate employee costs, use the salary charts provided in the appendices.
2. Ensure that you have an up to date staffing list for the school.
3. The teaching budget is the largest budget heading in a school’s budget plan.
4. Actual costs should be used for existing members of staff using the salary charts provided.
When budgeting for a new member of staff use estimated salary points.
5. Remember to add on-costs.
E01 - Teaching Budget
Expenditure on salaries and wages of permanent teaching staff consisting of gross pay
including allowances, maternity pay and the employer's contributions to national insurance and
superannuation.
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 allowances,
maternity pay and the employer's contributions to national insurance and superannuation
 Threshold payments and other payments relating to teacher pay reforms
 Net off any teachers maternity pay refunds here
Excludes
 Any teachers employed casually and directly, e.g. supply teachers (See E02)
 Any teacher not employed directly by the school, e.g. agency staff (See E26 or E27)
 Redundancy costs which should be charged to E08
1. You will be aware that the Government implemented significant changes to the way in which
teachers are remunerated from September 2013. The link below will take you to Government
web site where the latest information is available.
http://www.education.gov.uk/pay
2. As this is the largest budget heading in your plan, it is vital it is calculated accurately as
possible. The following information is based on the current arrangements.
3. Current salary charts are attached as Appendices 3, 4, and 5. The maximum and minimum
salaries on the teachers pay scales are expected to increase by 1% in September 2015.
15
D) Staff Expenditure Budget Planning
4. Ensure that the staffing list is up to date.
5. Review staffing changes.
6. Report any potential redundancy position to Human Resources Personnel as soon as
possible.
7. It is essential to calculate individual salaries but where new staff are involved this might not
be possible.
8. For all classroom teachers/leadership group members, schools must determine – in accordance
with their own pay policy – how to apply the 1% uplift to individual salaries and pay ranges and
how to take account of the uplift to the national framework in making individual pay progression
decisions.
9. Teaching and learning responsibility (TLR) payments are payable to teachers who fulfil
specific roles within the school. You will need to budget for these payments.
E02 - Supply Staff
Relates to all supply teachers paid within the scope of the Education Act 2002
Includes
Salaries and wages for supply teaching staff employed directly by the school that are covering
teaching staff absence for:
 Curriculum release
 Long term absence
 Sickness absence
 Training absence
 Expenditure on salaries and wages consisting of gross pay including 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)
1. This budget should be based on historic expenditure tempered by known pressures and
consideration should be given to the following: Absence, especially due to sickness, is hard to anticipate.
2. Salary charts are attached at Appendix 4 to aid calculation.
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D) Staff Expenditure Budget Planning
E03 – Education Support Staff
REMEMBER TO INCLUDE ANY POTENTIAL INCREMENTAL POINTS FROM 1 OCTOBER.
Salary scales can be found at Appendix 6 to assist the calculation of the budget. For support
staff on MKC terms and conditions the current salary scales wef January 2015 apply to 31
March 2016.
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Includes
Expenditure on salaries and wages of permanent support staff employed directly by the
school in support of students' learning, consisting of gross pay including allowances,
maternity pay and the employer's contributions to national insurance and superannuation:
Childcare staff
Classroom assistants / learning support assistants
Examination invigilators and examination 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
Cover supervisors
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
Staff employed to follow up attendance issues
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).
1. Ensure the staffing list is up to date.
2. Set the budget based on the staffing complement taking account of planned changes,
incremental progression NHI and superannuation rates.
E04 – Premises Staff
Includes
Expenditure on salaries and wages of premises staff employed directly by the school
consisting of gross pay including allowances, maternity pay and the employer's contributions
to national insurance and superannuation:
17

Caretakers
D) Staff Expenditure Budget Planning







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
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, e.g. cleaning under E14
 Premises staff employed to manage and support the school's special facilities (See E07)
E05 - Administrative & General Assistants
Includes
Expenditure on salaries and wages of administrative and clerical staff employed directly by the
school consisting of gross pay including allowances, maternity pay and the employer's
contributions to national insurance and superannuation :
 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, e.g. clerking service under E28
 Administrative and clerical staff employed to manage and support the school's special
facilities (See E07)
1. Ensure that the staffing list is up to date.
2. Consider any changes in contractual hours.
3. Salary scales and part-time proportions can be found at Appendix 6 and 7b to assist the
calculation of the budget.
18
D) Staff Expenditure Budget Planning
E06 – Catering Staff
Includes
Expenditure on salaries and wages of catering staff employed directly by the school consisting
of gross pay including allowances, maternity pay and the employer's contributions to national
insurance and superannuation :
 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
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)
 Ensure that the staffing list is up to date.
 Consider any changes in contractual hours.
 Salary scales and part-time proportions can be found at Appendix 6 and 7 to assist the
calculation of the budget.
E07 - Midday Supervisors
Includes
Expenditure on salaries and wages of other staff employed directly by the school consisting of
gross pay including allowances, maternity pay and the employer's contributions to national
insurance and superannuation :
 Meal time assistants and midday supervisors
 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
19
D) Staff Expenditure Budget Planning
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
1. Ensure that the staffing list is up to date.
2. Salary scales can be found at Appendix 6 to assist the calculation of the budget. Remember
to add on-costs where applicable.
3. Remember to multiply the weekly wage by the correct number of weeks for each employee,
depending on length of service (See Appendix 8).
E08 – Indirect Employee Expenses
This budget heading is likely to change from year to year, particularly the cost of advertising and
interview expenses.
Schools need to be reminded that two new GL codes were added to E08 for Occupational
Health Costs and Child Care Voucher fees from April 2013, since these are more prevalent
costs due to the ever-changing world.
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
and pension deficit payments, where these are paid separately from pension
contributions
 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
 Car parking fees
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)
1. Review each account within the budget separately.
2. Establish an overall budget.
3. Apply the inflation factor.
20
E) Non Staff Expenditure Budget Planning
Where actual costs for 2015/2016 are not known by the school, budgets may be calculated
using the following process:1. Consider needs for 2015/16, the areas of priority, and the areas to cut back or out
completely.
2. Compare the 2014/15 budget allocation with the actual expenditure.
3. Identify areas of expenditure, which are considerably different to the original budget.
4. Assess the reasons for this variance.
5. Remember to include the value of orders/commitments made before 31/3/2015 for which
goods and services have not yet been received as these will need to be accounted for in
2015/16
6. Do not include one-off purchases made during the financial year 2014/15
E09 – Staff Development & 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)
1. Review past expenditure and assess if there are any on going costs.
2. Identify staff training requirements
3. Set budget according to requirements and time constraints and any needs identified in the
school improvement plan.
E10 – Supply Teacher Insurance
.
Includes
 Premiums paid to insurers for supply teacher cover
 Sums de-delegated by the LA for centrally managed schemes for teaching staff costs –
supply cover (long-term sickness, maternity, trade union and public duties)
Excludes
 Premiums paid to insurers for cover other than for teacher absence
 Vehicle insurance (See E23)
21
E) Non Staff Expenditure Budget Planning
 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)
 Non-teaching cover supervisors (See E11)
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 (e.g. 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 including unqualified cover supervisors
 Employee related insurance for accident and liability, assault, fidelity guarantee, libel and
slander
 Sums de-delegated by the LA for centrally managed schemes for non-teaching staff costs
– supply cover (long-term sickness, maternity, trade union and public duties)
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 – Buildings 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 and curtains
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)
22
E) Non Staff Expenditure Budget Planning
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.
1. Assess the budget level.
2. Review past expenditure but remember this may not reflect future requirements included in
your school improvement plan.
3. Apply the inflation factor.
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
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.
1. The cost of the contract for the financial year can be based upon the costs incurred during
2014/15 unless you have been quoted actual cost for 2015/16.
2. Please take account of the period of the contract, which may be different to the financial year.
23
E) Non Staff Expenditure Budget Planning
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 & Sewerage
Includes
 All costs related to water and sewerage
 Emptying of septic tanks
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.
1. Review all previous years’ costs.
2. Take into account any savings resulting from energy conservation measures.
3. The budget should be increased to include the costs incurred due to lettings of the premises
to all users (including free and concessionary). This is to reflect the level of income received
and should be consistent with the lettings budget.
24
E) Non Staff Expenditure Budget Planning
E16 – Energy
Includes
 All costs related to fuel and energy, including fuel oil, solid fuel, electricity and gas
 Repayment of SALIX loans (i.e. repayments for funding from SALIX for energy efficiency
projects)
 Energy credits
 Carbon reduction charges
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.
Please see the guidance in Appendix 2 in respect of cost changes.
E17 – Rates
Includes
 Non Domestic rates expenditure (NNDR)
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
 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)
If the school has a contract for example relating to security services, covering all costs including
supply of labour and maintenance, all costs should be included in this specific service grouping.
25
E) Non Staff Expenditure Budget Planning
E19 - Learning Resources
Includes
 Achievement gifts and prizes awarded to pupils
 Books (library and text books)
 Charges for the school library service
 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,
including sums de-delegated to the LA for centrally administered licences and
subscriptions purchased by the LA (not nationally administered licences purchased by the
Secretary of State)
 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 examination costs
 Payments made to students in receipt of the 16-19 Bursary Fund
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
26
E) Non Staff Expenditure Budget Planning
 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.
1. Review past expenditure trends and consider the school and curriculum needs for the
forthcoming financial year.
2. Establish an expected spend for the expenditure items included in this budget heading. The
detailed code list at Appendix 10 will assist.
3. Assess the budget level and apply the inflation factor.
E21 Examination fees
Includes
 The costs of test and examination entry fees and any accreditation costs related to pupils.
This includes GCSEs and A/AS levels
 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 examinations, they
should be included in E21. The cost of examination 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
 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
 Marketing costs
Excludes
 Any costs directly attributable to the curriculum (See E19 and E20)
 Material costs directly attributable to another specific service grouping
27
E) Non Staff Expenditure Budget Planning
E23 – Other Insurance premiums
Includes
 Sums de-delegated by the LA for centrally managed insurance schemes
 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.
1. Review past expenditure trends and consider the school and curriculum needs this year.
2. Establish an expected spend for the expenditure items included in this budget heading. The
code list at Appendix 10 will assist.
3. Assess the budget level and apply the inflation factor.
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 (paid by the school to a charity)
 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)
28
E) Non Staff Expenditure Budget Planning
 School trips (See E19)
 Residential special schools (See 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 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.
All catering costs except labour if the school directly employs the catering staff.
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.
E26 - Agency Supply Staff
Includes
 Cost paid to an agency for teaching staff that have been brought in to cover teacher
29
E) Non Staff Expenditure Budget Planning
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 & E28 – Brought in Professional Services Curriculum and
Other
1. These include all of the services offered to schools for buy back.
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
 Courses purchased for students from external providers, e.g. FE colleges or other schools
 Examination 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
 Any security personnel employed to bank revenue funding
Excludes
 Cost of staff where they are directly employed by the school (See E04 – E07)
 Consultancy and advice for curriculum (See E27)
30
E) Non Staff Expenditure Budget Planning
E29 Loan interest
Includes
 Interest paid on overdrafts and other liabilities
Excludes
 Interest received (See I08)
E30 – Direct Revenue Financing
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
 Any repayment of principal on a capital loan from the LA
 Maintained schools may not enter into loan agreements with any other bodies. No
maintained school may borrow money, (including contracting to a financial lease), other
than from their local authority when a loan scheme exists, without the express permission
of the Secretary of State.
Excludes
 Funds specifically provided for capital purposes (see CI01 – CI03)
Only include a budget under this heading if your school intends to make a revenue contribution
towards a capital project. E30 should equal CI04
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
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.
31
E) Non Staff Expenditure Budget Planning
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 just as 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:
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 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.
N.B. Children’s Centres have specific codes
Further Information:
Schools can spend their delegated budget on community facilities and may receive other
sources of funding to be attributed to community focused activities.
F) Items Fully Funded By the LA
E17 - Rates
Includes
 Non Domestic rates expenditure (NNDR)
Further information:
This is separate from other occupation costs because it is imposed and therefore not a
controllable expense.
32
G) Capital
Capital Income
N.B. Income budgets should be shown as negative figures.
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
 Loans from the LA to fund specific capital schemes
Excludes:
 Voluntary income (See CI03)
 Direct revenue funding (See CI04)
The Capital income budget should be based on the figures notified to you by the LA or can be
proceeds from the sale of a fixed asset. (Devolved Capital & Other funds from the LA)
CI03 - 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.
Private income for capital purposes is the amount raised by the school, or donated to the school
for the sole intention of using the funds for investment in capital projects 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
33
G) Capital
Capital Expenditure
N.B. Expenditure budgets should be shown as positive figures.
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)
To be used when acquiring land and existing buildings, including any fees and charges relating
to the acquisition.
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 & 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)
 Leasing costs – schools are not allowed to enter finance leases and all operating lease
costs are revenue.
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G) Capital
CE04 - Information & Communications Technology (ICT)
Includes:
 Purchase of computer hardware and software where these are to be capitalised
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)
 Leasing costs – schools are not allowed to enter finance leases and all operating lease
costs are revenue
Further information:
Small purchases should not be capitalised. Your local authority should advise on an appropriate
(de minimis) value, below which transactions should be charged to revenue.
Illustrative example:
A local authority sets a de minimis level of £2,000.
A school buys one computer costing £500 – Revenue expenditure
A school buys five computers costing £500 each, or £2,500 in total – capital expenditure
Purchase of computer hardware funded by capital funding. (ICT)
(This area can be used to support purchases of ICT infrastructure and equipment or upgrades,
and software and digital curriculum resources where these count as capital expenditure.
According to the DfE, capital expenditure involves “the acquisition of productive assets that
will have a life longer than the financial year they were purchased in”)
More detailed CFR guidance is available on the DfE website.
Consistent Financial Reporting 2014/15
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H) Balances
Balances denote the over or under spends brought forward from the previous year or
carried forward to the following year. Schools can only have a deficit against revenue or
devolved capital. No other area should be over spent at the year end.
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
 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.
Committed amounts will be where a school has entered into a contract or raised a purchase
order but the goods or services have not been received by 31st March. Also include any
unspent voluntary income or earmarked funds from 2014-2015. Deficit balances should be
included in B01 as spent money is already committed.
B/fwd - Enter here the amount of committed revenue income that has not been spent as at 31 st
March 2015. (This should be shown as a negative figure unless a deficit)
C/fwd - Enter here the amount of committed revenue income that you estimate will not be spent
31st March 2016. (This should be shown as a positive figure unless a deficit)
B02 - Uncommitted revenue balance
These would be any other revenue balances that have not been committed.
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)
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H) Balances
These would be any other revenue balances that have not been committed.
B/fwd - Enter here the amount of uncommitted revenue income that has not been spent as at
31st March 2015. (This should be shown as a negative figure)
C/fwd - Enter here the amount of uncommitted revenue income that you estimate will not be
spent by 31st March 2016. (This should be shown as a positive figure)
Include pupil focused extended school balances within B01 & B02, but not community focussed
school revenue balances (B06).
(IT IS POSSIBLE THAT YOU WILL HAVE BALANCES IN B01 & B02)
B03 - Devolved formula capital balance (Deficit/Surplus)
Includes
 Devolved Formula Capital including roll-over from previous years
Excludes
 Any other capital balances (See B05)
Surplus B/fwd - Enter here the amount of the 2014/15 Capital income that you estimate will not
be spent by 31st March 2015. (This should be shown as a negative figure)
Deficit B/fwd - Enter here the amount of the 2014/15 Capital income that you have over spent
by 31st March 2015. (This should be shown as a positive figure)
Surplus C/fwd - Enter here the amount of the 2015/16 Capital income that you estimate will not
be spent by 31st March 2016. (This should be shown as a positive figure)
Deficit C/fwd - Enter here the amount of the 2015/16 Capital income that you estimate will be
over spent by 31st March 2016. (This should be shown as a negative figure)
B05 - Other capital balances
Includes
 Sum of all other capital balances, not already accounted for. This includes capital funding
received during previous financial years from specific grants which no longer exist (e.g.
unspent capital allocations from the Standards Fund)
Excludes
 Balances that appear in the framework in B01 to B03
B/fwd - Enter here the amount of the 2014/2015 Capital income which has not already been
accounted for, that you estimate will not be spent by 31st March 2015. (This should be shown
as a negative figure)
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H) Balances
C/fwd - Enter here the amount of the 2015/2016 Capital income which has not already been
accounted for, that you estimate will not be spent by 31st March 2016. (This should be shown
as a positive figure)
B06 – Community focused school revenue balances
Includes
 Any unspent community focused school balances should be recorded here
 Any community focused school balances carried forward from previous years should be
shown here
Excludes
 Pupil focused extended school balances (see B01 or B02)
B/fwd - Enter here any amount of the 2014/2015 Community Focused schools income that you
estimate will not be spent by 31st March 2015. Excluding pupil focused extended school
balances (B01/2). (This should be shown as a negative figure)
C/fwd - Enter here the amount of the 2015/2016 Community Focused schools income that you
estimate will not be spent by 31st March 2016. Excluding pupil focused extended school
balances (B01/2). (This should be shown as a positive figure)
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