Finance admin sessions Presented by David Dilling June 2013.

Finance admin sessions

Presented by David Dilling

June 2013

Guest inputsInternal Audit - around 11.00am/15.00pm• Helen Garvey – Audit & Governance Manager• Patrick Austwick – Deloitte Internal Audit

HR/payroll - around 11.20am/15.20pm• Steve Clarke• Paul Fitzpatrick• Chris Sharpe• Mark Warren• Cathy Brearley

• Schedule AM• 9.30 - 10.40 Croydon Schools Finance• 10.40 - 11.00 Coffee chat• 11.00 - 11.20 Audit and Governance• 11.20 - 11.40 Croydon HR Payroll • 11.40-12.00 AOB • Schedule PM• 13.30 - 14.40 Croydon Schools Finance• 14.40 - 15.00 Coffee chat• 15.00 - 15.20 Audit and Governance• 15.20 - 15.40 Croydon HR Payroll • 15.40-16.00 AOB

Proposed finance agenda

• BACS – An apology about the slow progress

• Team update – The latest news from CFL finance

• Various odds - returns, recent issues

• Funding 12/13 – anything outstanding?

• Funding 13/14 – an update

• Funding 14/15 – an update

• AOB – a chance to raise any other matters that may be relevant.

Update on the CFL finance team

• The team has completed the restructure process as per the item in the Schools Bulletin on Friday

• The new structure will enable the team to address the various new issues raised with the changing finance scene in a much more efficient way.

• In terms of the direct support to schools there will be a dedicated group under the direct leadership of the Head of Finance. This including a senior schools finance advisor, schools finance advisors and a finance officer to support them.

CFLHead of Finance 1FTE

Lisa Taylor

Finance Manager 1FTE-Educ Funding & Community and

Support Services (CSS)-Ian Geary

Finance Manager 1FTE 0.6FTE filled and 0.4FTE Vacant-SCFS, Learning and Inclusion *

0.6FTE – Janet Baidoo

Finance Officer 1FTE

-Schools funding

-David Morris

CFL Finance Team Structure – Final May 2013

Finance Officer 1FTE

-Schools funding and

pensions-Greg Boyce

Strategic Project Accountant –

moving to corporate finance

team 1FTE

Tim Pulham

Apprentice 1FTE

Finance Officer 1FTE

-Schools funding-Nicholas Vargas

Finance Support Officer 0.22 FTE

-Systems-Cathy Horne

Finance Support Officer 1FTE-Early Years

- To be confirmed

Finance Support Officer 0.36FTE

-Schools funding-Sarah Pearce

Finance Officer1FTE

Vanessa Newton

Schools Finance Advisor

1FTEJane Frith

Schools Finance Advisor

1FTE

Senior Schools Finance Advisor

1FTE

Management Accountant

1FTE-Social care & family support

-Dhana Bala

Management Accountant

1FTE-Funding

-Ingrid Auguste

Management Accountant

1FTE-Social Care and Family support

-Kay Oshin

Management Accountant 1FTE-CALAT and CSS

-Jan ElliottManagement

Accountant 1FTE-Learning and

Inclusion-Margaret Oliso

Schools Finance Advisor

1FTE

Finance Officer 1FTE

-Social Care and Family support

-Tracey Pearson

Finance Officer 1FTE

-Social care and family support

-Bamidele Akinfenwa

Finance Officer 0.5FTE

-CALAT and CSS-Lorraine Wallace

Finance Officer 1FTE

- Learning and Inclusion

Vera Ladega

Finance Officer 0.4FTE

-Funding and consolidation-Shirley Cross

Key -Vacant posts in pale coloured cells.* 0.4fte vacant

Management Accountant 1

FTE – consolidation

Jude Mawanda

Update on the CFL finance team – schools support

• David Dilling to lead the schools finance support role until end of August 2013

• Advert to be placed shortly for senior schools finance advisor• Jane Frith will continue as schools finance advisor• Ingrid Auguste to stay in the schools finance advisor role until a

permanent person is in place. She will then revert back to her management accountant role. Ingrid will always be available to provide short term back up and support.

• Advert to be placed shortly for schools finance advisor• Vanessa Newton is the finance officer and increasingly will be

coming out to schools over the coming months• Louise Watts will continue in the finance support role

until such times as the position of the other new appointments have been clarified

Update on the CFL finance team – funding

• Ian Geary is the finance manger to lead the funding and pensions processes

• The members of the team are largely unchangedie Greg Boyce, David Morris, Nick Vargas, Celda Legister, Sarah Pearce and Cathy Horne

• They will deal with teachers pensions, the development of the funding formula for primary and secondary schools and the allocation of funds to all types of schools and PVIs.

Update on the CFL finance team – high needs

• Janet Baidoo is the finance manger to lead the funding for high needs

• Although the members of Janet’s part of the team are identified their exact individual roles are still being finalised

• Janet will deal with development of the changes in high needs funding to all types of provision including all types of school, PRUs, alternative education providers etc

Various odds

Any issues around?

• Milk?• Licences?• VAT?• Procurement using the websites mentioned last time?• Procurement card?• Bank signatories?

• Not asking about utility charges!!!

Other items to note

• VAT if you are a VA school – make sure you refer to the recent guidance when using capital monies.

• Pensions deficit – if Croydon payroll then paying for this as monthly lump sums

• Petty cash – do you really need it? Will a procurement card replace the need?

• Scheme for financing schools – just updated• Schools Forum – becoming more important• CFR changes – note there are some changes and you

should refer to the DfE updatehttp://www.education.gov.uk/schools/adminandfinance/financialmanagement/consistentreporting

Balances/Deficits• Revenue balances increased by £330k to £9.3m• Capital balances reduced by £772k to £1.7m• Community balances reduced by £195k to £0.8m• Nursery and specials schools have largest balances• Projected balance for end of 2013/2014 is projected to

fall by £1.2m• Schools Forum looking at schools with apparent

excessive balances and looking at the balance analysis in the year end returns

• Analysis of balances is patchy• If a deficit then need to apply for a licensed deficit.

3 year budgets• There is an expectation that schools will be projecting

balanced budgets for the next 3 years• This is problematic due to the funding changes but this is

not a reason for not complying.- expenditure - you can project especially based on current staffing- income - you can only assume the funding arrangements that you know

• The HCSS FPSweb software that is Croydon personalised will enable you to produce the required information although you will need to adjust the data for those things that you know such as increased pupil numbers etc.

**Returns• Electronic or active spreadsheet so we can pull out the data

from the cells• Signed so a picture (pdf, tif etc) so we have a copy for audit• Scanned is preferred over faxed

eg can read iteg receipt if by email scanned but cannot reply if faxed

• Confusion over quarter returnsThere are two- a normal quarterly return- an analysis of balances

• Analysis of balances is mainly to ensure sensible spending by governors but also to protect from monies being taken if they become significant and it can be seen that governors are not acting regularly to plan their purpose.

Returns

• We have been chasing hard this year to get all returns in by the due dates.

• I am aware that some of you have been chased for returns and apologies if you think this is over the top or not within your remit. However we do need to ensure that the records are complete and we do find that some schools require few reminders.

• We do issue dates in advance and many are also on the Fronter calendar.

Returns - SFVS

• SFVS many thanks for submitting• Only one school did not submit “in time” for our DfE

summary return• More stringent next year to check return is

- updated from March 2013- agreed by governing body- fully signed - received by 31 March 2014

• Internal Audit and ourselves will be looking at the recent returns in the coming weeks.

Returns - CFR

• Final returns needed by Friday 21 June 2013

• A few schools have issues

• Only push the button if you have been told to do so. If unsure contact Louise Watts

Setting the 2013/2014 budget

• Electronic budget plans by 31 March 2013

• Signed budget plans by 1 May 2013

• Many schools will be updating their budget to allow for actual balances brought forward. If so please email the spreadsheet version ASAP to [email protected] This applies in particular to schools whose initial budget appeared to be in deficit.

Year end• Thanks for getting the urgent returns completed but still

missing a few bits eg Q4 and Book B• Important we get these as

- contracts need to be included on Council accounts- auditors are looking at processes and seeing they are being completed

• Issues raised by auditors will mean more detail needed next year. Mainly separation of information.

• Eg stock purchases, written off, expenses, sold etc and not just a final figure.

• Any comments from the schools perspective?

**Year end – some important points

• Thank you for agreeing to have visits during the Easter holiday

• If you need to pass money to another school then please finalise by midday Friday 22 March 2013 so that both schools can make the correct entries

• If you owe monies to the LA then make sure the cheque reaches us by Friday 22 March 2013

• Suggested accrual limits are £500 primary, £1000 secondary

Funding

Funding 2012/2013

• Any outstanding issues – please email me by end of week so that we can sort for July funding run - Eg statements - Eg extra classes - ??

Funding 2013/2014

• Any questions about - funding sheet codes?- early years?- high needs?

• Dedelegation – is an expenditure and not a reduction of income

Schools block – growth fund

• This is a separate part of the schools block that requires Schools Forum agreement for allocations

• Provides revenue funding for- bulge classes- expansions- amalgamations- and similar

• Intend to fund in July for the autumn expansions/bulges once the Council has approved the list.

Funding 2014/2015• The DfE have just announced the changes they are to

make for next year. Many will not directly affect Croydon.• http://www.education.gov.uk/schools/adminandfinance/fin

ancialmanagement/schoolsrevenuefunding

• Main funding factor change will be around lump sum• Other possible changes around high incidence/low cost,

FSM, and possibly others.• What is not changing is level of funding and MFG

reduction of -1.5%• Schools that had an MFG addition of greater than 1.5%

of their total “SB” funding can expect a further reduction in 2014/2015

Funding 2015/2016

• Expect a national formula for primary and secondary schools and possibly some further convergence for early years and high needs.

• I predict there will still be some local/regional differences but these may only be for a transition.

Discussion activity

Developments in schools?

• Ofsted is being more demanding about progress in schools and as a result several schools have been strongly led down the academy conversion route

• This is not due to things in the school office but how can we help the school improve things?

• What changes have schools made in recent months? How have they improved things? How do you know?

• What challenges do you still have?

A personal message

I would like to thank you all and all your predecessors for the support you have given to me over the years.

I wish you all well for the future.

Au revoir

Internal Audit: Update

Helen Garvey – Audit & Governance ManagerPatrick Austwick – Deloitte Internal Audit

Key Changes

• Pupil Premium

• Recruitment checks

• Complaints

• Information Governance

Why are we auditing Pupil Premium?

• For many schools it is a significant amount of additional income

• Raised to £900 per pupil for 13/14• OFSTED concerns over the funding having little impact• Requirement for transparency in how the funding is

earmarked and spent

Pupil Premium

What are we looking for?

•Evidence of a publically available policy or statement which sets out how the funding will be used. •Evidence of a publically available statement of how the funding has been spent for 12/13•Audit trail of expenditure•Evidence of governor involvement

Recruitment

• More in depth checking around recruitment checks:

– Evidence of the shortlisting and interview process– Evidence of references – Evidence of checks on right to work in the UK and qualifications– OH assessment– Status within the pension scheme

Complaints

S 29 of the Education Act: Requirement to have a complaints policy in place which must be publicised.

What are we looking for?

•Evidence of a publically available complaints policy•A designated complaints coordinator•Two stage or three stage procedure•Audit trail

Why are we auditing Information Governance?

• Schools keep a significant amount of personal information and sensitive personal information

• Information Commissioner’s Office (ICO) are imposing increasing tough measures for data breaches and information loss.

• ICO can issue fines of up to £500k for serious breaches of the DPA

• Loss of data can cause reputational damage to the school

What do you need to consider?

• Do you have an Information Governance Policy for staff?• How do you keep sensitive data secure?• How do you report any security breaches or loss of

information?• What arrangements are in place for staff taking

information home?• Do you have a retention or document management

schedule?

Useful Links and Guidance

• Audit & Governance Room on Fronter• Training sessions on Audit for your Governors• Audit Guide and Test Programme

Contact us

• Dave Phillips or Amanda Johnston 0208 760 5771• Helen Garvey (Croydon Council) 0208 407 1355