Archived decisions

Appendix D

Financial Returns

This appendix supplements the main scheme provisions in section 21 and should be read in conjunction therewith.

Financial Returns - Non- County Council systems (SAP) Users

The accounts of all schools maintained by the County Council (including aided and foundation schools) are part of the accounts of the County Council. Schools which chose not to use the County Council's SAP systems are required to provide information in a format and to a timetable specified by the County Council. This is so that the relevant information can be put into the County Council's accounts.

Except when required for tax, national insurance or bank reconciliations, the County Council will not request reports more than every three months, unless the County Council considers that more frequent submission is necessary. In such cases, the school will be notified in writing that, in its view, the school's financial position warrants more frequent submission, or the school is in its first year of operation.

Returns required

The governing body must submit to the County Council each year by the date(s) set by the County Council:

· an income and expenditure budget for the current financial year. To the local EFS office by 31 May.

· a revised income and expenditure budget for the current financial year. To the local EFS office by 30 November.

· a cash flow forecast for the current financial year. To the local EFS office by 31 May.

· a monthly statement of all income and expenditure including schedules of VAT input tax and output tax. This is necessary for the County Council to reclaim VAT on the school's behalf (hence the monthly requirement), and is also used to keep the County Council's financial accounts up to date. To Children's Services Devolved Finance Unit (CSDFU) by 7th day of the following month. In the event of any future changes meaning that this information is no longer required for VAT purposes, a quarterly return in the same format will be required.

· a forecast balance sheet for the current financial year. To the local EFS office by 31 May.

· a statement of actual income and expenditure for the previous financial year. To CSDFU by 30 April.

· A declaration as to the assigned purposes of any balances at the end of the previous financial year. To the local EFS office by 1 May.

· photocopies of all documents relating to rent and rates payments and rebates during the previous year. To LMS Team, CSDFU by 30 April.

· reconciliation between the school's year end bank balance and the year end balance as reported on the statement of income and expenditure. To CSDFU by 30 April.

· Monthly Reconciliation between bank statement and schools own financial records. To CSDFU by 7th day of each month.

Additionally:

    1. The County Council also require the governing body to submit a strategic financial plan covering forecast income and expenditure for further financial years by 30 June each year.

    2. The governing body must comply with the methods and principles according to which financial statements are to be prepared.

    3. Appropriate records must be kept to permit the identification and retrieval of source documentation for inspection purposes.

    4. Statements of actual expenditure must be provided in pounds and pence. Budgets should be presented in whole pounds, and may be rounded to the nearest £100.

    5. All financial returns to the County Council, except VAT, must be signed by the Chairman of the Governing body, and the Headteacher. The VAT return may be signed by the headteacher or a delegated officer. Submission by e-mail from an authorised officers' personal userid will be accepted as a signed statement. Where the Headteacher's e-mail account has been used to submit financial returns this should be backed up by a signed paper copy from the Chair of Governors.

    6. Basis of Accounting. Returns relating to positions during the year should be on a cash (receipts and payments) basis. Returns relating to final accounts should be on the accruals basis and hence include figures for debtors and creditors. This is consistent with the "converted receipts and payments" basis that local authorities have traditionally worked to.

Financial statements

The governing body must send the County Council financial statements covering the whole of its activities for the financial year to 31 March each year. The governing body must comply with directions given by the County Council as to the information to be contained in the financial statements, how the information is to be presented, and the methods and principles according to which the financial statements must be prepared. If the County Council does not specify requirements, the governing body must ensure that best accounting practice is applied in the preparation of the financial statements. The County Council will notify schools of the exact requirements for completing returns when these are confirmed by the appropriate regulatory bodies.

VAT

The County Council submits a VAT return to HM Revenue and Customs on a monthly basis after each VAT period. To produce the return on time, the County Treasurer must receive the total information required to complete the return by the seventh working day after the end of the relevant VAT period. Details of VAT periods are available from Corporate Finance, County Treasurer's Department. Appropriate records must be maintained to permit the identification and retrieval of source documentation for inspection purposes.

Reports

The County Council requires the governing body to prepare regular reports on its financial position at such times and in such a way as it may direct. In addition the County Council requires all schools to advise Education Financial Services (EFS) immediately of any potential deficit budget and/or overdrawn bank account situation arising.

Timetable

The County Council's current reporting timetable and requirements are shown in Appendix E.

Appendix E

Timetable for submitting financial reports

This appendix supplements the main scheme provisions in section 21 and should be read in conjunction therewith.

County Council systems (SAP) Users

For schools using SAP, the school budget must be put on SAP by 31 May each year. No more information will be required as long as SAP records are kept up to date (e.g. A revised budget agreed by Governors is recorded on SAP). All budgets entered onto the County Council's financial system (SAP) must be recorded at GL code level.

Schools awaiting full governing body approval of the annual budget should send a paper or electronic copy to EFS by 31 May. This copy should be marked "Subject to Formal Governors Approval". Once finally approved a final copy should be sent to EFS local office.

A strategic financial plan covering the multi year budget period by 30 June each year

The revised budget for the financial year as approved by the governing body or appropriate sub-committee should have been entered onto the County Council's financial system (SAP) at GL code level by 30th November.

A declaration as to the assigned purposes of any balances at the end of the previous financial year. To the local EFS office by 1 May.

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Additional requirements for SAP users with own Cheque Books:

· a cash flow statement for the current year (by 31 May )

· a monthly bank reconciliation statement (by 7th working day after month end)

Returns to be sent to CSDFU, The Castle, Winchester.

Non-County Council systems (SAP) Users

1. Initial budgets - all to be sent to the local Education Financial Services (EFS) office

            By 31May Annual income and expenditure budget for the current year
            Annual cashflow statement for the current year

                    A forecast balance sheet for the current year

      By 30 November Revised budget for the current year

2. Actual updates - Children's Services Devolved Finance Unit, The Castle

        Actual income and expenditure statement and balance sheet for the financial year - by the end of April (normally produced prior to any external audit of accounts).

      A reconciliation between the school's year end bank balance and the year end balance as reported on the final statement of income and expenditure by end of April.

      Monthly returns of all income and expenditure - by the 7th day of the following month. The information from this return will be used to reclaim VAT on behalf of the school, and to keep the County Council's financial systems up to date.

      Monthly reconciliation of bank statement to the school's own financial records - to CSDFU by 7th day of each month.

    Where a school is not following the monthly cycle then it will need to follow a quarterly cycle of income and expenditure returns by the end of July, October, January and April

3. Rent and rates evidence - to be sent to LMS Team, Children's Services Finance Unit, The Castle

      By 30 April - Photocopies of all documents relating to rent and rates payments and rebates.

      Payroll and Pension returns are covered in appendix B