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NEW PRINCIPALS’ TRAININGNEW PRINCIPALS’ TRAINING
Managing School Managing School FinancesFinances
October 2009October 2009
FacilitatorsFacilitators
George BlackamGeorge Blackam
Alan BrannaganAlan Brannagan
Stephen BakerStephen Baker
Learning outcomesLearning outcomesBy the end of the course on financial By the end of the course on financial management, new principals should:management, new principals should:
Have a better appreciation of their roles Have a better appreciation of their roles
and responsibilities in relation to financial and responsibilities in relation to financial
managementmanagement
Understand the budget setting environment including the LMS Common Formula and Centrally held budgets
Understand the necessity for financial Understand the necessity for financial planning and the timescales involvedplanning and the timescales involved
Learning outcomes cont..Learning outcomes cont..
Know where they can get support and Know where they can get support and further helpfurther help
Have an understanding of the 3 year Have an understanding of the 3 year
planning processplanning process
Feel confident about their knowledge of Feel confident about their knowledge of what is involved in financial what is involved in financial managementmanagement
ROLE OF LMSROLE OF LMS
to provide high quality to provide high quality financial planning and financial planning and management management information to meet the information to meet the needs of School needs of School Principals and Boards Principals and Boards of Governors of of Governors of schools.schools.
Role of the GovernorsRole of the Governors
Plan and control use of resourcesPlan and control use of resources
Contain expenditure within approved budgetContain expenditure within approved budget
Manage resources economically, effectively and Manage resources economically, effectively and efficientlyefficiently
Establish proper financial controlsEstablish proper financial controls
Financial management: Financial management: planning, reviewing, planning, reviewing, monitoring and forecastingmonitoring and forecasting
AFFORDABILITYAFFORDABILITY
Principal mustPrincipal must
Keep all governors informed on a regular Keep all governors informed on a regular basisbasis
Have finance on the agenda for each BoG Have finance on the agenda for each BoG meetingmeeting
Work closely with finance committeeWork closely with finance committee
Manage the responsibilities that have Manage the responsibilities that have been delegated to them by the BoGbeen delegated to them by the BoG
““To ensure that schools with similar characteristics To ensure that schools with similar characteristics receive similar levels of funding regardless of the receive similar levels of funding regardless of the area or sector in which they are located.”area or sector in which they are located.”
OBJECTIVE OF COMMON OBJECTIVE OF COMMON FUNDING FORMULA (CFF)FUNDING FORMULA (CFF)
GENERAL SCHOOLS BUDGETGENERAL SCHOOLS BUDGET
Non Delegated
Delegated(Aggregated)
Sources of FundingSources of Funding
Pupils NosPupils Nos Premises FactorPremises Factor Targeting Social NeedTargeting Social Need Small Schools SupportSmall Schools Support Teacher Salary ProtectionTeacher Salary Protection Foundation StageFoundation Stage Primary Principals Release TimePrimary Principals Release Time OthersOthers
Schools Schools delegateddelegated budget is budget is determined by LMS Common determined by LMS Common Formula Funding – DEFormula Funding – DE
MAIN DRIVERSMAIN DRIVERS
AWPUs 2009-2010 (£2,020)AWPUs 2009-2010 (£2,020)
Funding Per CapitaFunding Per Capita
NurseryNursery £3,524£3,524 PrimaryPrimary £2,809£2,809 SecondarySecondary £4,097£4,097 GrammarGrammar £3,641£3,641
CONSULTATIONCONSULTATION
Proposed Factor ChangesProposed Factor Changes
Primary AWPUPrimary AWPU 1.061.06
Closing Date for SubmissionsClosing Date for Submissions
Return to BoardReturn to Board
December 2009December 2009
Return to DEReturn to DE
December 2009December 2009
Teacher Substitution CostsTeacher Substitution Costs Special Educational NeedsSpecial Educational Needs Contingency FundingContingency Funding Curriculum Reserve FundCurriculum Reserve Fund OtherOther
Central FundingCentral Funding
Board Funded Items Board Funded Items (Non Delegated)(Non Delegated)
Capital FundingCapital Funding
Minor Works ( up to £500k)Minor Works ( up to £500k)
-- Apply through Property ServicesApply through Property Services
-- Priority Assessment, eg Health and Priority Assessment, eg Health and Safety Safety
Disability Access FundingDisability Access Funding Virement from LMS Budget (>£15k)Virement from LMS Budget (>£15k)
Sources of Funding contSources of Funding cont
Earmarked FundsEarmarked Funds
Time BoundTime Bound Specific ProjectSpecific Project Delegated BudgetDelegated Budget Tracking expenditureTracking expenditure
External FundsExternal Funds
Heritage Lottery FundingHeritage Lottery Funding
Tesco Charity TrustTesco Charity Trust
Big Lottery FundingBig Lottery Funding
Young RootsYoung Roots
2009/10 FINANCIAL CYCLE PROCESS
OCTOBER
School Forwards census information to DE via C2kand forwards paper copy to SEELB9 October 2009 - Funding for 2010-2011 financial year
OCTOBER
School Forwards census information to DE via C2kand forwards paper copy to SEELB9 October 2009 - Funding for 2010-2011 financial year
NOVEMBER
LMS Send out Staffing List for 2009-2010 financial year
School Reviews, amends and returns
NOVEMBER
LMS Send out Staffing List for 2009-2010 financial year
School Reviews, amends and returns
JANUARY
LMS Validation of Annual Census Data to DE
JANUARY
LMS Validation of Annual Census Data to DEFEBRUARY/MARCHDE Run Common Formula Funding Budget Share
LMS Send out Budget Statement to schools
Issue Financial Information using figures confirmed by school for staffing complement plus an estimation of running costs
Issue additional budget allocations and notes for guidance for completion of budget allocation form and three year plan
School Review projected position Make Amendments, as appropriate
Date for Redundancy April
School completes budget allocation form and three year plan from website - Signs, date and return to Board by required date
FEBRUARY/MARCHDE Run Common Formula Funding Budget Share
LMS Send out Budget Statement to schools
Issue Financial Information using figures confirmed by school for staffing complement plus an estimation of running costs
Issue additional budget allocations and notes for guidance for completion of budget allocation form and three year plan
School Review projected position Make Amendments, as appropriate
Date for Redundancy April
School completes budget allocation form and three year plan from website - Signs, date and return to Board by required date
FEBRUARYDE Run Common Formula Funding Budget Share
LMS Complete final year end projections and complete final checks on staff costs in preparation for issue of staff cost projections and expenditure projections.
FEBRUARYDE Run Common Formula Funding Budget Share
LMS Complete final year end projections and complete final checks on staff costs in preparation for issue of staff cost projections and expenditure projections.
MAY – SEPTEMBER
MAY/JUNELMS Final reports available on ESA reports website
Upload budget allocation onto ESA financial system
AUGUSTLMS Three year plans are signed off by ESA and letters are forwarded to schools
SEPTEMBERESA Contacts schools that have raised financial concerns
MAY – SEPTEMBER
MAY/JUNELMS Final reports available on ESA reports website
Upload budget allocation onto ESA financial system
AUGUSTLMS Three year plans are signed off by ESA and letters are forwarded to schools
SEPTEMBERESA Contacts schools that have raised financial concerns
FINANCIAL PLANNINGFINANCIAL PLANNING
TwoTwo elements that need to be closely elements that need to be closely linked:linked:
– School Development PlanSchool Development Plan– School Financial PlanSchool Financial Plan
FINANCIAL REPORTSFINANCIAL REPORTS
REPORTSREPORTS
Budget and Expenditure ReportBudget and Expenditure Report
Staffing ReportStaffing Report
Detailed Transaction Report (M3)Detailed Transaction Report (M3)
Journal Adjustment Report (M4)Journal Adjustment Report (M4)
Detailed Transaction Report (M20)Detailed Transaction Report (M20)
Budget MonitoringBudget Monitoring
Reports issued monthlyReports issued monthly
Summary and Detail availableSummary and Detail available
Available on WebsiteAvailable on Website
Access from home if desiredAccess from home if desired
Review every monthReview every month
IN YEAR ADJUSTMENTSIN YEAR ADJUSTMENTS
deal with emergenciesdeal with emergencies change of planschange of plans need to keep balanced budgetneed to keep balanced budget
C2k/FMS SYSTEMC2k/FMS SYSTEM
Used in Schools for Used in Schools for
- - Raising Raising ordersorders - - Entering Entering invoicesinvoices --Reconciliation to Board systemReconciliation to Board system
Can generate a range of reports that may supplement Board issued reports
Must be kept up to date and reconciled
ACTIVITY ONEACTIVITY ONE
Report
Readin
g
LUNCHLUNCH
ACTIVITY TWOACTIVITY TWO
PREPARING FOR BUDGET SETTINGPREPARING FOR BUDGET SETTING
What, Why, Where?What, Why, Where?
Activity 3Activity 3
Financial PlanningFinancial Planning
– Budget Allocation FormBudget Allocation Form
– Three Year Financial PlanThree Year Financial Plan
Budget Allocation FormBudget Allocation Form
Total Resources Available 2008-09Total Resources Available 2008-09 Total Projected Spend for 2008-09Total Projected Spend for 2008-09 Projected End Of Year Balance March 2009Projected End Of Year Balance March 2009 Agreed expenditure transferred to Budget Agreed expenditure transferred to Budget
Allocation FormAllocation Form Budget Uploaded onto Financial SystemBudget Uploaded onto Financial System
3 YEAR PLAN3 YEAR PLAN
2 & 32 & 3 -- Amend pupil nos. Amend pupil nos. Increase/Decrease Increase/Decrease
budget by budget by rise/fall in rise/fall in pupils x pupils x per capitaper capita
Expenditure assumed constantExpenditure assumed constant Amend additional expenditure/savings as Amend additional expenditure/savings as
appropriate appropriate Review OutcomeReview Outcome
DE WORKBOOKDE WORKBOOK Requirement from Department of EducationRequirement from Department of Education
Surplus Deficit 5% or £75,000 of delegated Surplus Deficit 5% or £75,000 of delegated budget (whichever is the lesser) budget (whichever is the lesser)
Re- assessment throughout the year by Re- assessment throughout the year by Department of EducationDepartment of Education
School Performance Review GroupSchool Performance Review Group
3 YEAR PLAN3 YEAR PLAN
GreenGreen Achieved within 5% or £75,000 Achieved within 5% or £75,000 whichever the lesser all three years of planwhichever the lesser all three years of plan
YellowYellow Substantially achieved but outside 5% of Substantially achieved but outside 5% of £75,000 limit in any one year (minor £75,000 limit in any one year (minor concerns)concerns)
AmberAmber Significant Concerns. Increasing Significant Concerns. Increasing surplus/deficits – outside limit – query surplus/deficits – outside limit – query
over over figures/pupil nos, Board officers will figures/pupil nos, Board officers will contact contact schoolschool
RedRed Unacceptable outside the limits. Unacceptable outside the limits. Action plan needs to be agreed Action plan needs to be agreed with schoolwith school
NORTHERN IRELAND SUBSTITUTE NORTHERN IRELAND SUBSTITUTE TEACHER (NISTR) REGISTERTEACHER (NISTR) REGISTER
Centralised qualification and criminal record checks Centralised qualification and criminal record checks Integrated TR140 timesheets Integrated TR140 timesheets Increased choice – access to regional database of Increased choice – access to regional database of
substitute teachers substitute teachers System matches cover requirements against System matches cover requirements against
teachers on register who are available on dates teachers on register who are available on dates required required
Teachers' calendars updated on confirmation of Teachers' calendars updated on confirmation of bookings bookings
Provides information on previous work experience Provides information on previous work experience and expertise and expertise
No cost to schools - the register is being funded No cost to schools - the register is being funded centrally centrally
PLANNING FOR THE FUTUREPLANNING FOR THE FUTURE
EXPECT THE UNEXPECTEDEXPECT THE UNEXPECTED
What is the future enrolment trend?What is the future enrolment trend?
Has your school any outstanding Has your school any outstanding commitments?commitments?
Are there any options available to Are there any options available to reduce variable costs?reduce variable costs?
POINTS TO CONSIDERPOINTS TO CONSIDER
Is there a strong link between the school Is there a strong link between the school development plan and the financial plan?development plan and the financial plan?
Are you familiar with your school’s budget Are you familiar with your school’s budget setting and monitoring arrangements?setting and monitoring arrangements?
Do proper financial controls exist?Do proper financial controls exist?
QUIZQUIZ
Learning outcomesLearning outcomes
Have a better appreciation of their Have a better appreciation of their
roles and responsibilities in roles and responsibilities in
relation to financial managementrelation to financial management
Understand the budget setting environment including the LMS Common Formula and Centrally held budgets
Understand the necessity for Understand the necessity for financial planning and the financial planning and the timescales involvedtimescales involved
Learning outcomes cont..Learning outcomes cont..
Know where they can get support and Know where they can get support and further helpfurther help
Have an understanding of the 3 year Have an understanding of the 3 year
planning processplanning process
Feel confident about their knowledge of Feel confident about their knowledge of
what is involved in financial what is involved in financial
managementmanagement
Sources of InformationSources of Information
Three Year Financial PlansThree Year Financial Plans Budget Allocation FormsBudget Allocation Forms Budget StatementsBudget Statements Outturn StatementsOutturn Statements Training SlidesTraining Slides
www.seelb.org.ukwww.seelb.org.uk
Monthly Financial ReportsMonthly Financial Reportslms.nielb.comlms.nielb.com
Common Formula Funding SchemeCommon Formula Funding Schemewww.deni.gov.ukwww.deni.gov.uk
C2k/FMS Kathleen Dobbin 028 9027 9029C2k/FMS Kathleen Dobbin 028 9027 9029
LMS CONTACTSLMS CONTACTS
George BlackamGeorge Blackam 028 9056 6337028 9056 6337Alan BrannaganAlan Brannagan 028 9056 6531028 9056 6531Stephen BakerStephen Baker 028 9056 6530028 9056 6530
Nursery and Post PrimaryNursery and Post Primary
Harry CampbellHarry Campbell 028 9056 6406 028 9056 6406
Controlled Primary SchoolsControlled Primary Schools
Fidelma Ward Fidelma Ward 028 9056 6409 028 9056 6409 Ann McQuillanAnn McQuillan
Maintained & Integrated Primary SchoolsMaintained & Integrated Primary Schools
Jacqui WadeJacqui Wade 028 9056 6405028 9056 6405Mark McKaigMark McKaig
Open ForumOpen Forum
QuestionsQuestions
EvaluationEvaluation
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