Fully Funded Workshops Forrest Centre, Marston

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Fully Funded WorkshopsForrest Centre, Marston

• Tuesday 1st March 8.30am 12.30pm
• Tuesday 15th March 1-5pm
• Tuesday 22nd March 8.30am 12.30pm

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Agenda

• Introductions
• Fully Funded Scheme and returns
• 2010-11 year end arrangements
• Closure of Imprest petty cash accounts Gill
  Clarke
• 2011-12 arrangements
• Reconciliations
• Bank Account Advances Gezim Leka
• VAT Parmjit Teji Connie Bentley
• RM Ann Mathers
• SIMS
• Payroll HR- Karen Damiano
• Audit Roger Willoughby
• Questions Answers

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• Working Group set up with LA officers from
  Payroll / HR / Finance / Audit / VAT
• Exchequer Services / Income / Treasury
• Folder contains all handouts / slides / and
  guidance from workshop
• Further copies available on the Learning Portal

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Useful Contact Numbers

• Audit Roger Willoughby 0300 300 6235
• Cashiers Shelia Garner 0300 300 4332
• Exchequer -Central Payments Team 0300 300 8156
• VAT Connie Bentley 0300 300 4554
• Bank Accounts Parmjit Teji 0300 300 4081
• Monthly Advances - Gezim Leka 0300 300 6162
• Bursary Service - Ann Mathers 0300 300 6008
• Payroll Reports - Karen Damiano 0300 300 6141
• RM Helpdesk 0300 300 5777
• Natwest Corporate Service Team 0845 308 8969
• Capita Michelle Armstrong 0788 1515 366

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(No Transcript)
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FF Scheme Annual Timetable

• By 15th of following month IE of income
• expenditure for previous month
• System print as back-up to IE figures
• Updated Cashflow
• By 10th of July / October / January / April
  Salaries Wages return
• Year end requirements
• All new fully funded schools will be monthly
  reporting in first year then possibility of going
  quarterly in second year.

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FF Scheme Budget Plan documents

• Returns for 31st May
• 2 year budget plan (can use budget plan template
  / IE template or CFR report from FPS).
  Contingencies net assets/Public funds amount on
  balance sheet
• Salary back-up
• Projected cashflow with bank balance agreeing to
  that on balance sheet
• Projected balance sheet
• LD application Recovery plan if needed

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Balance Sheets

• List of all assets owned and all liabilities owed
  by a school at a particular date
• Monetary amounts are attributed to each of the
  assets and liabilities balances on balance
  sheet accounts will be carried forward

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Balance Sheet

• Asset - Something valuable which the schools owns
  or has the use of
• Stock
• Bank Balance
• Debtors items owed to the school (will include
  VAT at year end for previous month)
• Liability - Something which is owed to somebody
  else
• Loan
• Goods purchased but not yet paid for

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Balance Sheets

• The balance sheet is comprised of the Assets and
  Liabilities
• The net expenditure or balance of the Income and
  Expenditure account also forms part of the
  balance sheet
• The figures entered are rounded
• Balance Sheet
  
• Assets
• Stock
• Bank
  
• Debtors
  
• VAT Debtor
  
• Petty Cash
  
• Liabilities
• Creditors ( )
• Net Assets ______
• (Assets less liabilities)
• Net Expenditure ______

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Projected Year End Balance Sheet

• Include estimated debtors creditors (could
  base on last year)
• Estimate VAT ( could base on 1st return in April
  2011)
• Bank balance from projected cashflow
• Stock can assume fully used when spent so show
  nil.

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Cashflow

• Projected cashflow to be submitted by 31st May
• Update each month for actuals submit to SFA with
  IE.
• Review remaining months actuals to see if any
  payments or income that was estimated to be
  received in past month wasnt, and needs to be
  built into following months.
• Year end cashflow will agree to bank balance, not
  to balance c/f due to year end accruals.

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Cashflow

• Cash is cash in hand plus bank balances
• Cash Flows are inflows and outflows of cash
• Movements between different cash types are not
  included in a cash flow e.g. a cheque drawn for
  petty cash
• Cash flow does not include debtors and creditors
  (the Income and Expenditure statement does)

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Cashflow

• Template on website
• VAT must be accounted for be aware of timing
  differences
• Payroll payovers usually the proceeding month
• Advances are monthly
• Cash flow balance at end of month must balance to
  Cash Book

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FF Scheme -Monthly Returns

• IE (template on website) from system print
  showing actual income and expenditure to end of
  previous month and current budget plan. Should
  be completed on accruals basis. Think about
  materiality and de-minimus limit for accruals
• System print agreeing to IE (BvsAvsC for RM or
  trial balance report for SIMS)
• Cashflow shows actual payments out of the bank
  account for previous period and budgeted payments
  income for remainder of year. Completed on
  cash basis no accruals
• VAT Claim

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FF Scheme Quarterly Salaries Wages Return

• Statutory government return
• Quarterly return giving actuals paid out on
  salaries wages.
• Deadline is for LA to achieve its deadline to
  central government
• Programme deadlines into work schedule in order
  to meet them

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2010-11 Year End

• Any invoices to be paid out of 2010-11 must be
  with Exchequer Services by 12 noon on 25th March
• Any received after that date will be returned to
  schools for payment out of 2011-12 bank account.
• Schools can then accrue if necessary. Submission
  deadline to SFA by 8th April
• Keep year end accruals to a minimum
• Only material accruals over 1,000 to be
  submitted to SFA
• Those under de-minimus level may not be processed
  by SFA and re-jected by Chief Accountant

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2010-11 Arrangements Closure of Imprest Petty
Cash Account

• Final claim must be with Exchequer Services by 12
  noon on 25th March
• Any receipts from staff not included in final
  claim will have to be held over until after 1st
  April and paid out of 2011-12.
• Cash in hand declared on final claim must agree
  with cash paid into central bank account
• Income clearly marked Repayment of Imprest or
  Petty Cash Account Cash Balance

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2010-11 Arrangements Closure of Imprest and
Petty Cash Account

• Must complete cash management sheet but with NO
  GL or COST Centre
• Cross through any remaining cheques so cannot be
  used, and store in school
• Accounts will be closed by LA

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2010-11 Arrangements- Income

• Final date for payment of income into central
  bank account is 29th March, must submit cash
  management sheets.
• After that date keep income in safe and pay into
  bank account after 1st April
• Can accrue if over 1,000
• Large amounts received between 29th 31st can be
  paid in, if emergency.
• NB be aware of insurance limit of safe.

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2010-11 Payment of Year end Balances

• After submission of CFR data when final balances
  have been agreed, underspends will be transferred
  to bank accounts
• Underspends will be net of accruals
• Overspends if licensed will be converted into
  loans no interest charged. Unlicensed deficits
  deducted from bank advance.
• Letter will be sent confirming how balance has
  been calculated
• Both revenue capital balances will be paid over

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Advances into Bank Accounts

• Follow standard profile of payments in FF scheme
• 2 payments in April Initial 1/36 main 1/12
• May to February 1/12
• March remaining balance 2/36
• Payment Schedule breaks down advance into
  constituent parts (SBS/Rates/Threshold/YPLA/Jt
  Use/SEN)
• In year changes profiled over remaining months
  advances, schools will be sent revised profile to
  follow
• Formula Capital once a term June 5/12/Sept
  4/12/Jan 3/12

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Advances into Bank Accounts

• Follow schedule when paying into local system
  CFR codes
• Further guidance on system entries from software
  helpdesks
• Can submit cashflow if have large capital payment
  and need to amend profile of devolved formula
  capital payments

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2011-12 Arrangements

• Cheque books paying in books available for
  collection today please dont use before 1/4/11
• Authorisation of invoices in school in normal
  way. Keep invoices in school do not submit to
  LA.
• Cheques to be written out and signed by
  authorised individuals listed on bank mandate.
• Income paid into account
• Petty Cash can be drawn from this account

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2011-12 Arrangements - SAP

• No longer requirement for school to reconcile
  local system with sap and submit copy of
  reconciliation to SFA as school is prime record
  holder.
• No further sap autorec files will be sent to
  schools
• SAP reports will continue to be emailed but they
  will only show SFA uploads of your monthly
  reports along with budget plan. Our
  responsibility to ensure SAP School

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2011-12 Arrangements - SAP

• No further requests with back-up to SFA for
  re-codes between CFR or GL codes these to be
  done in school.
• No further requests for payroll re-codes, if
  coding on establishment print is wrong, post to
  correct one on local system.

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Bank Reconciliation

• Each month items appearing on the bank statement
  are reconciled.
• The Bank Statement balance is checked against the
  cash book balance on local system
• The difference will be cheques drawn and
  cheques/cash paid into bank but not yet appearing
  on bank statement
• This check should be carried out every month
  using appropriate reports from system
  (unreconciled transaction listing)

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Bank Reconciliation

• Must not allow bank account to go overdrawn.
• Must complete bank reconciliation promptly on a
  monthly basis, no need to submit to SFA.
• Signed by Headteacher.
• Unreconciled items for 2 months reported to
  headteacher
• With NatWest, schools can have access to VIEW
  ONLY bank account on line.
• Cost application to bank
• NO CHAPS/BACS payments at present

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Bank Reconciliation

• Helpsheet available for RM schools on learning
  portal
• SIMS schools contact software helpdesk
• At year end need to submit final bank rec for
  year and copy of final bank statement

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VAT

• All Central Bedfordshire Schools still come under
  the Central Bedfordshire Vat banner.
• Vat returns should be sent on a monthly basis to
  the Vat Officer based at Technology House by the
  10th of the month and signed by the head teacher
• With regards to preparing your Vat return you
  should follow the guidance from your software
  provider
• There will be no change to the way you code your
  invoices.
• for example if something was coded to V8
  (input tax standard rate) previously it will
  still be coded as V8 now
• If the Vat amount on an invoice is not 20,
  17.5, 15, or 5 a copy of the invoice should be
  attached to the Vat Return
• .
• If there are any queries on the vat return, the
  vat officer will contact the school either by
  phone or e-mail

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VAT

• -You should keep all documentation for 6years
  plus current year.
• If there are no queries, the Vat will be
  reimbursed to the school on a monthly basis,
  usually in the first week of the month, the first
  reimbursement will be June.
• You cannot recover vat if you purchase something
  direct from your private funds. You can however,
  register your private funds for vat in its own
  right if the turnover for the previous year is
  more than the current threshold of 70K. HMRC
  will issue the school with its own Vat
  registration number for this purpose. The school
  will need to complete a separate Vat return for
  this and submit it directly to HMRC.

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VAT

• FURTHER GUIDANCE AND INFORMATION THAT CAN BE
  FOUND ON THE LEARNING PORTAL
• The full Central Bedfordshire Vat Guide will be
  published on the schools website by 1st April
• Schools frequently asked questions
• Guidance for VA schools
• Penalties that may be incurred VAT
• Summary sheet for SIMS Schools

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VAT

• SOME USEFUL NUMBERS
• Our Vat Registration number is - 946 8171 86
• Parmjit Teji Senior Financial Advisor - Treasury
  Management - Telephone [phone]
• Connie Bentley Financial Advisor Vat Telephone
  0300 300 4554
• Emma Burton Senior Financial Manager - Strategy.
  Telephone [phone]

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VAT

• AND FINALLY
• We also subscribe to Vat helpline Elysian
  Associates, for any questions that the Vat
  Officer cannot answer

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RM Schools

• New datafiles will be available for schools to
  download from the Learning Portal
  www.learning.centralbedfordshire.gov.uk go to the
  Administrators Tab and then RM Finance
• NEW datafiles to be used from the 1st April 2011
  Schools will need to set up Suppliers/Income
  Sources/Budget codes specific to the school
• Year end will need to be completed on your old
  datafile to agree your balances to SAP for
  2010-11
• Instructions on how to complete your month end
  bank and VAT Returns will be available for
  schools to down load.

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G2 Finance Schools

• Continue to use current database
• Instructions will be issued regarding setting up
  a new bank account and the payment process
• Instructions on how to complete your month end
  bank and VAT Returns will be available for
  schools to down load.
• Further guidance to be issued shortly.

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SIMS Schools

• Have informed Capita of change.
• They were emailing schools with details in
  preparation for 1st April.
• Contact Michelle Armstrong
• Customer Services Manager
• Mobile  [phone]
• Email  michelle.armstrong_at_capita.co.uk

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Payroll HR

• All Staffing timesheets to be coded to the
  schools cost centre ending in 3 NOT 1
• Payroll will be invoiced monthly with a direct
  debit deduction from the schools bank account

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Payroll

• Draft Report issued mid-month, opportunity to
  feed back queries to payroll please check this
  closely and authorise in school.
• Final Report issued end of month with the actual
  payroll that has been paid. Please ensure this is
  authorised.
• Quarterly Salaries Wages return is required and
  it is important to meet the deadline for
  submission as it feeds into CBC statutory
  government return. Please programme into the
  schools work schedule.

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Payroll

• Buyback from CBC Serco
• Scheme says that where LAs payroll supplier
  used, statutory returns relating to payroll
  financial statements are completed
• A notice period will need to be given if the
  school wishes to go to an alternative supplier

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Payroll

• Where a school elects to use an alternative
  payroll provider all associated responsibilities
  will rest with the school.
• Further details in CBCs Finance Regs.

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2011-12 Arrangements - Governors

• Keep Governors informed of changes
• Need to approve revised Finance Manual
• Reports to Governors now include Cashflow
• Appointment of a Responsible Officer (not chair
  of finance) but likely to be a member of finance
  committee
• Useful document was R32 Financial Guidance for
  Governors from old FMSiS

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2011-12 Arrangements Responsible Officer

• Balances out some of the risks associated with
  full financial delegation
• visits to randomly select cross section of
  accounts and systems to check. Report back on
  findings to Finance Committee or full governors.
• Enhances schools financial management
  arrangements.
• Provides governing body with independent
  assurance as the satisfactory operation of the
  schools finance systems.

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Audit

• School becomes prime record holder, refer to
  guidance on website for retention of documents
• Segregation of duties between person authorising
  invoice, and person writing out cheque.
• Security of cheque books in schools
• Questionnaire for fully funded schools available
  on learning portal

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Finance Manual

• Schools Finance Manuals will need updating for
  the changes in procedures
• Governors need to approve and their
  recommendations should be included in Governors
  minutes.

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General

• Securicor Contract schools should look at their
  existing contracts and make any changes as
  necessary further guidance available shortly
• SFAs will check challenge as necessary schools
  returns to ensure they agree to submitted system
  prints
• Schools quarterly will receive interest on bank
  balances, credit to I08 4199100

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Any Questions?

• www.learning.centralbedfordshire.gov.uk