KCC Loans

1
KCC Loans

• Capital Loans

2
Capital Loans

• Why would a school need a loan?

3
Capital Loans

• Other than being in the costed School Development
  Plan (SDP) should anyone else be informed or
  aware of the project?

4
Capital Loans

• Where could you go to find information regarding
  loans?
• Who would you contact at KCC to discuss the
  possibility of a loan?

5
Capital Loans

• Case Study
• Background
• Questions

6
Case Study

• How much will the school theoretically be able
  to take as a loan from KCC?
• How much would you suggest the school should take
  as a loan? (max)
• What loan information do you think you need prior
  to officially applying for a loan?
• When should the school apply for the loan?
• Is there a time limit on drawing down the
  funding?
• When would you recommend the school draws down
  the loan?

7
Case Study

• How many years can a capital loan be taken over?

8
Case Study

• How many years do you think this school should
  take the loan over?

9
Case Study

• What interest rate is chargeable?
• Are there any penalties for repaying a capital
  loan early?
• Who has to sign the loan application form?
• Where else are schools allowed to borrow from?

10
Statutory Finance Role

• Capital Loans - What do we do?
• Quotes
• Receive loan application
• Approval Process
• Pass on the cash
• Accounting for the loan

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Statutory Finance Role

• Loan Application Process
• Quote
• Application

12
Statutory Finance Role

• Through what method would you receive the funding
  and the eventual repayment of the loan?

13
Accounting for the Loan

• There are two elements to paying back the loan
  what are they? Funding can either be for revenue
  or capital. Which fund does the interest get paid
  from?

14
Accounting for the Loan

• How would you account for the Loan on your
  accounts package? (Procedure note available)
• When the capital project is completed / invoices
  received which set of CFR codes would you use?
• Case Study - at the end of the financial year
  09/10, if all the funding is received for the
  loan in March and all the expenditure has been
  processed, what balance would you expect to see
  on the capital fund at year end?
• How will the School show this on FMS6?

15
Case Study 3YP

• Extracts
• General Information
• Final Capital Report
• Any connection to BCM?