Finance Update HT Briefing Autumn 2006

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Finance UpdateHT Briefing Autumn 2006
KEITH ABBOTT DIRECTOR - FINANCE CORPORATE
SERVICES
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• REVISIONS TO THE FINANCIAL SCHEME FOR SCHOOLS
• FMSiS
• BUDGET

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REVISIONS TO THE FINANCIAL SCHEME FOR SCHOOLS
LOCAL Remove requirement for June
monitoring DfES DIRECTED i) Multi-year
forecasts ii) Balance control mechanism
iii) FMSIS iv) Notice of concern
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BALANCE CONTROL MECHANISM

• Implementation from 1.1.2007 and applies to
  2006-07 Financial Year
• Reserves clawed back if schools reserves
  exceed following thresholds
• Primary, Special Middle 8 of annual budget
  or 10k whichever is greater
• Secondary 5 of annual budget or 10k
  whichever is greater

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BALANCE CONTROL MECHANISM

• The thresholds apply to balances at 31 March
  after making adjustments. For items such as
  unspent Standards Fund, money committed for
  specific projects etc.
• DfES guidance on the adjustments is thin so
  following Forum meeting we are working on a
  more detailed guide with County Bursars Group
• Process will form part of closedown as we have
  to agree each school position by 31 May each
  year
• Sample tests in compliance visits that schools
  have evidence to support declared rollover
  position

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NOTICE OF CONCERN
The LA may issue a notice of concern to the
governing body of any school it maintains where,
in the opinion of the Chief Finance Officer and
the Director of Childrens Services, the school
has failed to comply with any provisions of the
scheme, or where actions need to be taken to
safeguard the financial position of the local
authority or the school Such a notice will set
out the reasons and evidence for it being made
and may place on the governing body restrictions,
limitations or prohibitions in relation to the
management of funds delegated to it.
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• These may include
• insisting that relevant staff undertake
  appropriate training to address any identified
  weaknesses in the financial management of the
  school
• insisting that an appropriately
  trained/qualified person chairs the finance
  committee of the governing body
• placing more stringent restrictions or
  conditions on the day to day financial
  management of a school than the scheme requires
  for all schools - such as the provision of
  monthly accounts to the local authority

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• insisting on regular financial monitoring
  meetings at the school attended by local
  authority officers
• requiring a governing body to buy into a local
  authoritys financial management systems and
• imposing restrictions or limitations on the
  manner in which a school manages extended
  school activity funded from within its delegated
  budget share
• THERE IS NO RIGHT OF APPEAL

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FMSiS - Secondary Schools

• Expected to meet the standard by 31/3/2007
• Training took place Sept Oct
• Clusterweb area developed including Checklist and
  Matrix
• Hands on Support provided at Bursar groups in
  November
• 9/2/07 - External Assessment (optional)
• 31/3/07 - Submit Self Assessment on line

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FMSiS - Primary, Middle Special

• Consultation ended 2/10/2006
• All schools expected to achieve the standard by
  31/3/2010
• Subject to
• 40 by 31/3/2008
• 40 by 31/3/2009
• 20 by 31/3/2010

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FMSiS - Primary, Middle Special

• 17/11/06 - Schools Forum/LA agreed
• All Special Middle schools expected to meet the
  standard by 31/3/2008
• Primary schools will be phased on a cluster by
  cluster basis, in alphabetical order
• Training will be provided to the first 40 in
  Feb/Mar - invites out before end of term

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BUDGET

• DfES Funding Review
• Formula Review for 2008/09
• Settlement
• Consultation Process

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DSG/Schools

• 2.5 - 3.0 Headroom
• But 2.5m needed for teachers superannuation
  increase
• Energy costs will soak up the rest
• Impact of BVACOP
• Overall standstill, subject to individual roll
  position