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WALES HIGH SCHOOL ACADEMY TRUST
FINANCE POLICY
REVISION DATE
APPROVED BY
DATE OF APPROVAL
29 October 2014 Governing Body 9 December 2014
January 2016 Governing Body 9 March 2016
December 2017 Governing Body 12 December 2017
September 2020 Governing Body 4 September 2020
To be reviewed by the Finance Sub Committee annually
All policies are available on the school website
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FINANCIAL MANAGEMENT AND ADMINISTRATION POLICIES
Page
1. Introduction 3
2. Organisation 3
3. Financial Systems 9
4. Financial Planning 10
5. Payroll and employee benefits 12
6. Purchasing 14
7. Income 18
8. Cash Management 19
9. Unrestricted Reserves 21
10. Fixed Assets 22
Appendix A: Cost Centre Managers / Budget Holders 24
Appendix B: Authorised Signatories 25
Appendix C: Segregation of Duties 26
Appendix D: VAT and expenditure 27
Appendix E: Processing 28
Appendix F: School Ebay Policy 30
Appendix G: Collection of Money in School 34
Appendix H: School Debtors 36
Appendix I: Reserves Policy 37
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1. INTRODUCTION
The purpose of this manual is to ensure that the academy maintains and develops systems of financial control which conform to the requirements both of propriety and of good financial management. It is essential that these systems operate properly to meet the requirements of our funding agreement with the Department for Education (DfE) and the current version of the Academies Financial Handbook 2014.
The academy must comply with the principles of financial control outlined in the academies guidance published by the DfE. This manual expands on that and provides detailed information on the academy’s accounting procedures and systems and should be read by all staff involved with financial systems.
The full Governing Body will meet termly or more frequently as required. Governing Body members will receive, for information purposes, copies of the agendas and adequately detailed minutes, including appending relevant submissions, in order to support policy decisions taken.
2. ORGANISATION
The academy has defined the responsibilities of each person involved in the administration of academy finances to avoid the duplication or omission of functions and to provide a framework of accountability for governors and staff. Role of the Governing Body: The Governing Body has overall responsibility for the administration of the academy’s finances which it must discharge reasonably and in a way that commands broad public support. The main responsibilities of the Governing Body are prescribed in the Funding Agreement between the academy and the DfE and are outlined in detail in the Academies Financial Handbook 2015. The main responsibilities include:
Ensuring that Trust funds are used only in accordance with law, the articles of association and the Academies Financial Handbook 2015.
Discharge its duties over the use of Trust funds reasonably and in a way that commands broad public support
Governors are responsible for the proper stewardship of funds including regularity and propriety, and for ensuring economy, efficiency and effectiveness in their use.
As part of their role the Governing Body will
o Appoint the Head Teacher who may act as an ex officio trustee
o Along with the Finance Sub Committee, meet regularly enough (at least 3 times per year) to discharge their responsibilities under the articles of association, funding agreement and the Academies Financial Handbook 2015
o Approve a written scheme of delegation of financial powers that maintains robust internal control arrangements
o Have a finance committee to which the board delegates financial scrutiny and oversight
o Appoint a clerk to the board of trustees who is someone other than a trustee, governor or principle
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Role of the Accounting officer The Accounting Officer is the Head Teacher, Pepe Di’iasio. Their role includes specific responsibilities for financial matters. It includes a personal responsibility to Parliament, and to the EFA’s accounting officer, for the financial resources under the trust’s control. Accounting Officers must be able to assure Parliament and the public, of high standards of probity in the management of public funds, particularly: Regularity – dealing with all items of income and expenditure in accordance with legislation, the terms of the trust’s funding agreement and the Academies Handbook 2015, and compliance with this finance policy Propriety – the requirement that expenditure and receipts should be dealt with in accordance with Parliaments intentions and the principles of parliamentary control Value for Money – achieving the best possible educational and wider societal outcomes within the trust’s objects, through the economic, efficient and effective use of resources, the avoidance of waste and extravagance, and prudent and economical administration.
The accounting officer must sign a statement on regularity, propriety and compliance each year and submit this to the EFA with the audited accounts
The accounting officer must take personal responsibility (which must not be delegated) for assuring the Board of Governors that there is compliance with the Academies Handbook 2015 and the funding agreement. Where there are irregularities these need to be reported to the Board of Governors and if not acted upon to the EFA.
The accounting officer must have appropriate oversight of financial transactions by:
o Ensuring that all academy trust’s property is under the control of Governors and measures are in place to prevent losses or misuse, including maintenance of fixed asset registers
o Ensuring that bank accounts, financial systems and financial records are operated by more than one person
o Keeping full and accurate accounting records
o Preparing accruals accounts giving a true and fair view of the trust’s use of resources, in
accordance with existing accounting standards Role of the Chief Financial Officer The Trust must have a chief financial officer (CFO), appointed by the trust’s governing body who is the trust’s management accountant to lead on financial matters. The CFO should play both a technical and leadership role, including
o Ensuring sound and appropriate financial governance and risk management arrangements are in place
o Preparing and monitoring of budgets
o Ensuring the delivery of annual accounts
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Finance Sub Committee Role: The Finance Sub Committee comprises members of the Governing Body who meet at least three times a year with specific objectives as follows:
Consideration of the academy’s indicative funding, notified annually by the DfE, and to assess its implications in advance of the financial year, drawing any matters of significance or concern to the attention of the Governing Body
To consider and recommend acceptance/non-acceptance of the academy’s budget at the start of each financial year
Review the Trusts 3-year budget position and make recommendations to the Governing Body on any strategic plans required to ensure the Trust stays in a surplus position
Regular monitoring of actual expenditure and income against budget
Review employment and remuneration of staff considering KPIs such as staff costs as a proportion of overall income
Ensure the annual accounts are produced in accordance with the requirements of the Companies Act and the EFA Academies Accounts Direction
To receive auditors’ reports and to recommend to the Governing Body action as appropriate in response to audit findings
To recommend to the Governing Body the appointment of auditors
Both the Accounting Officer/ Head Teacher and the Chief Financial Officer / Management Accountant will report to the Finance Trustees. Delegated Authority: The Management Accountant has delegated responsibility from the Finance Trustees
Oversee the preparation, monitoring its implementation and controlling expenditure of the school budget.
Invest unspent funds in “low risk” investment accounts to ensure a maximum return on Academy funds
Nominate members of staff as budget holders for specific areas of the budget (cost centres) and may them to spend funds in these cost centres within agreed budget allocations.
Advise the Accounting Officer/ Head Teacher on staffing decisions
Make spending decisions for implementation of plans approved in the School SIP up the value of £15,000.
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The Chief Financial Officer / Management Accountant
Role:
Responsible for the day to day management of financial issues including the establishment and operation of a suitable accounting system.
The management of the academy financial position at a strategic and operational level within the framework for financial control.
To make recommendations on the budget headings and areas of expenditure to be adopted each year, including the use of any contingency fund or balances, ensuring compatibility of all such proposals with the development priorities set out in the SIP.
To monitor and review expenditure on a regular basis and ensure compliance with the overall financial plan for the academy, and the financial regulations of the DfE drawing any matters of concern to the Finance Trustees.
To monitor and review procedures for ensuring the effective implementation and operation of financial procedures, on a regular basis, including the implementation of bank account arrangements and, where appropriate to make recommendations for improvement.
Ensure compliance with HMRC regulations regarding all aspects of taxation and VAT relevant to the school.
The maintenance of effective systems of internal control.
Ensuring that the annual accounts are properly presented and adequately supported by the underlying books and records of the academy.
The preparation of monthly management accounts.
Review of monthly payroll and reporting to HMRC and pension bodies
Authorisation of orders up to £15,000 for approved school improvement plans.
Signing cheques and on-line banking payments in conjunction with other authorised signatories.
Ensuring forms and returns are sent to the EFA in line with the timetable in the EFA guidance.
To provide at least termly reports to the Governing Body on spending compared with the approved budget and other monitoring information as requested by the Governing Body.
Delegated Authority:
The Management Accountant in consultation with the Finance Trustees has the authority to make decisions on behalf of the full Governing Body to enable it to fulfil the responsibilities shown above. The Management Accountant delegates responsibility to the Finance / HR Manager for authorisation of expenditure, within agreed limits, for departmental budget holder requests.
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The Finance Team
Finance/HR Manager Senior Finance Assistant Finance Assistants Role: To maintain and develop the school’s systems of internal control and financial administration, in order to enable the proper processing of the school’s financial transactions and activities.
To manage the daily requirements of the finance office in invoice and purchase order processing and payment
To monitor the cash flow position of the school and report to the Management Accountant on a regular basis.
Preparation of the monthly payroll for review by the Management Accountant. Set up at the bank all payments relating to the monthly payroll and send out payslips each month to employees.
Assist budget holders to access budget information through the Revas reporting system. Provide termly and ad-hoc monitoring information to budget holders from the finance system (Sage)who do not yet have access to the Revas reporting system
To review the effectiveness of internal control procedures and where necessary make proposals to the Management Accountant for improvements.
To ensure that planned expenditure for each year does not exceed the available resources.
To ensure that there are written descriptions of financial systems and procedures which are kept up to date and that all appropriate staff are trained in their use.
Detailed information on the structure of responsibilities is given at Appendix C Budget Holders
Role: To manage efficiently and effectively, and to be accountable for the resources delegated to them by the Accounting Officer / CFO.
The day-to-day monitoring and control of delegated budgets.
To ensure goods/services purchased from the delegated budget are in accordance with the schools aims and objectives.
To ensure goods/services purchased are done so in line with the Financial Regulations and giving due consideration to Best Value.
See Appendix A for detailed information on budget holders.
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Register of Interests
It is important for anyone involved in spending public money to demonstrate that they do not benefit personally from the decisions they make. To avoid any misunderstanding that might arise all academy governors and staff are required to declare any financial interests they have in companies or individuals from whom the academy may purchase goods or services. The register is open to public inspection. The register should include all business interests such as directorships, share holdings or other appointments of influence within a business or organisation which may have dealings with the academy. The disclosures should also include business interests of relatives such as a parent or spouse or business partner where influence could be exerted over a governor or a member of staff by that person. The existence of a register of business interests does not, of course, detract from the duties of governors and staff to declare interests whenever they are relevant to maters being discussed by the Governing Body. Where an interest has been declared, governors and staff should not attend that part of any meeting.
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3. FINANCIAL SYSTEMS
Accounting System
All the financial transactions of the Academy are recorded on SAGE 200c. SAGE 200c is operated by the Finance Team and consists of Purchase Ledger, Sales Ledger, and Nominal Ledger with journals entries and bank transactions recorded. Access to SAGE 200c is password restricted. Accesses to the component parts of SAGE 200c are restricted and the Management Accountant/Finance Manager are responsible for setting access levels for all members of staff using the system. The system is located on a terminal server connection hosted by SAGE 200c. SAGE 200c is responsible for daily backups of the system. Monthly procedures performed ensure that all transaction data is downloaded each month and stored on the school server. The Management Accountant will also prepare a disaster recovery plan in the event of loss of accounting facilities or financial data. This should link in with the annual assessment made by governors of the major risks to which the academy is exposed and the systems that have been put in place to mitigate those risks. Transaction Processing and Reports All transactions input into the accounting system must be authorised in accordance with the procedures specified. See Appendix E for detailed information Bank transactions should be input by the Finance/HR Manager and input checked by the Management Accountant. The Management Accountant is responsible for posting depreciation. Reconciliations The Management Account is responsible for reconciling monthly the following control accounts:
Sales Ledger
Purchase Ledger
Accruals and Prepayments
VAT control account
Accrued and deferred income
Fixed Assets register
The HR/Finance Manager/Finance Team are responsible for reconciling monthly the following control accounts:
Bank Accounts
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4. FINANCIAL PLANNING
The academy prepares both medium and short-term financial plans. The medium term financial plan is prepared as part of the SIP process. The SIP indicates how the academy’s educational and other objectives are going to be achieved within the expected level of resources over the next three years. The SIP provides the framework for the annual budget. The budget is a detailed statement of the expected resources available to the academy and the planned use of those resources for the following year.
The SIP process and the budgetary process are described in more detail below. Annual Budget The Management Accountant is responsible for preparing and obtaining approval for the annual budget. The budget must be approved by the Finance Trustees and the Governing Body. The approved budget must be submitted to the EFA by 31 July each year and the Management Accountant is responsible for establishing a timetable which allows sufficient time for the approval process and ensures that the submission date is met. The annual budget will reflect the best estimate of the resources available to the academy for the forthcoming year and will detail how those resources are to be utilised. There should be a clear link between the SIP objectives and the budgeted utilisation of resources. The budgetary planning process will incorporate the following elements:
Approved GAG and other EFA funding for the year
review of other income sources available to the academy to assess likely level of receipts;
review of past performance against budgets to promote an understanding of the academy cost base;
review of curriculum options and staffing requirements
identification of potential efficiency savings and
review of the main expenditure headings in light of the SIP objectives and the expected variations in cost e.g. pay increases, inflation and other anticipated changes.
Balancing the Budget Comparison of estimated income and expenditure will identify any potential surplus or shortfall in funding. If shortfalls are identified, opportunities to increase income should be explored and expenditure headings will need to be reviewed for areas where cuts efficiencies can be made. This may entail prioritising tasks and deferring projects until more funding is available. Plans and budgets will need to be revised until income and expenditure are in balance. If a potential surplus is identified, this may be held back as a contingency or alternatively allocated to areas of need. Finalising the Budget Once the different options and scenarios have been considered, a draft budget should be prepared by the Management Accountant for approval by the Finance Trustees and ultimately the Governing Body. The budget should be communicated to all staff with responsibility for budget headings so that everyone is aware of the overall budgetary constraints. The budget should be seen as a working document which may need revising throughout the year as circumstances change.
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Monitoring and Review Monthly reports will be prepared by the Management Accountant. The reports will detail actual income and expenditure against budget. Any potential overspend against the budget must in the first instance be discussed with the Management Accountant. The accounting system will not allow payments to be made against an overspent budget without the approval of the Management Accountant. The monitoring process should be effective and timely in highlighting variances in the budget so that differences can be investigated and action taken where appropriate. If a budget overspend is fore-cast it may be appropriate to allocate money from another budget or from the any contingency. All budget reallocations must be authorised by the Management Accountant and Accounting Officer.
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5. PAYROLL
The main elements of the payroll system are:
staff appointments
payroll administration
payments
Staff Appointments The Governing Body has delegated power to the Head teacher for employment of staff in consultation with the Management Accountant for any budgetary implications. The one exception to this is the position of Head teacher which is only for the Governing Body to appoint. Payroll Administration The academy payroll is administered in- house using Earnie payroll software. Staff should submit any overtime requests or mileage/ subsistence claims to the Finance/HR manager by the 5th of the month. The Finance/ HR manager prepares the first draft of the payroll including any payroll amendments as prepared by the HR Officer, and when complete informs the Management accountant for review. Following review and any required amendments the Management accountant provides a Gross to Net reconciliation of the payroll which includes the monthly journal postings. The HR/Finance Manager also prepares reports to be sent to the two school pension schemes (LGPS and TPS). On finalisation of the Gross to Net pay reconciliation, the Finance/HR Manager will set up payments to the bank, run the FPS and EPS reports to be sent to HMRC and send out monthly payslips to all staff, the majority of which are sent via the email system within the Earnie payroll. To reduce costs and administration time, only staff without a school email address will receive a paper copy of their payslip. The Finance/ HR manager is also responsible for posting the monthly payroll journal to the accounting ledger. Any queries on payroll are managed in the first instance by the Finance/HR Manager. Employee Benefits
All employee benefits are to be administered through payroll on a monthly basis. Employee benefits which are taxable benefits must be declared to HMRC in order for the school to adhere to national employee tax regulations. Examples of taxable benefits include:
Award vouchers to staff, such as Meadowhall gift vouchers
Retirement gifts where the employee has been in service for less than 20 years
Free school meals in excess of those allocated to all staff and are not related to supervision of children i.e. either as part of the duty system or in running a lunchtime club
Tickets to events that are not specifically related to pupil supervision
Staff events where the event is not open to all staff
Where the cost of staff events (open to all staff) exceeds £150 per head over the course of a year
NB Any monetary cash gift however small is always a taxable benefit
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Examples of non-monetary gifts to employees which are not subject to tax include:
Small non-monetary gifts given to an employee which is not in recognition of any service award, i.e. a bunch of flowers given to a member of staff who is getting married
A small non-monetary occasional gift i.e. a bottle of wine to premises staff at Christmas. (NB if this becomes 2 bottles of wine or a very expensive bottle of wine this would be termed an employee benefit and taxable)
Light refreshments available to all staff
Where any gift or award is assessed as being a taxable benefit by the Management Account or Finance/HR manager then this will be administered through the school payroll.
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6. PURCHASING The academy wants to achieve the best value for money from all our purchases. This means we want to get what we need in the correct quality, quantity and time at the best price possible. A large proportion of our purchases will be paid for with public funds and we need to maintain the integrity of these funds by following the general principles of:
Probity, it must be demonstrable that there is no corruption or private gain involved in the contractual relationships of the academy;
Accountability, the academy is publicly accountable for its expenditure and the conduct of its affairs;
Fairness, that all those dealt with by the academy are dealt with on a fair and equitable basis.
Routine Purchasing Budget holders will be informed of the budget available to them once the budget has been approved. It is the responsibility of the budget holder to manage the budget and to ensure that the funds available are not overspent. A print detailing actual expenditure against budget will be supplied to each budget holder each term or upon request. Wherever possible procurement is to be made through the finance office. If this is not possible then individuals must ensure they receive appropriate documentation from their purchase. This will be either a VAT invoice or VAT receipt. Often you will need to specifically ask to receive an invoice/ receipt with the VAT information required for the school to be able to reclaim the VAT on the purchase. The Finance Team will follow the specific VAT procurement rules as shown in Appendix D A quote or price must always be obtained before any order is placed. For orders up to £3,000, test the market and obtain the most cost effective deal for the school. For orders between £3,000 and £20,000, obtain oral or written quotations from a minimum of 2 contractors. For orders for above £20,000, the school will obtain at least three written tenders or quotations. Purchases over £172,514 189,330 (threshold from 20152020) may fall under EU procurement rules which require advertising in the Official Journal of the European Union. See Appendix E for details of order processing. If any goods are rejected or returned to the supplier because they are not as ordered or are of sub-standard quality, the Finance Office should be notified. The Finance Assistant will keep a central record of all goods returned to suppliers. If a budget holder is pursuing a query with a supplier the Finance Office must be informed of the query and periodically kept up to date with progress. Payments will be made to suppliers by BACS or cheque processed by the Finance/HR manager and authorised by the Management Accountant. Forms of Tenders There are three forms of tender procedure: open, restricted and negotiated and the circumstances in which each procedure should be used are described below.
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Open Tender: This is where all potential suppliers are invited to tender. The budget holder must discuss and agree with the Finance DirectorManagement Accountant how best to advertise for supplier’s e.g. general press, trade journals or to identify all potential suppliers and contact directly if practical. This is the preferred method of tendering, as it is most conducive to competition and the propriety of public funds.
Restricted Tender: This is where suppliers are specifically invited to tender. Restricted tenders are appropriate where:
o there is a need to maintain a balance between the contract value and administrative costs,
o a large number of suppliers would come forward or because the nature of the goods
is such that only specific suppliers can be expected to supply the academy’s requirements,
o the costs of publicity and advertising are likely to outweigh the potential benefits of open tendering.
Negotiated Tender: The terms of the contract may be negotiated with one or more chosen suppliers. This is appropriate in specific circumstances:
the above methods have resulted in either no or unacceptable tenders, only one or very few suppliers are available, extreme urgency exists, additional deliveries by the existing supplier are justified.
Preparation for Tender
Full consideration should be given to:
objective of project
overall requirements
technical skills required
after sales service requirements
form of contract.
It may be useful after all requirements have been established to rank requirements (e.g. mandatory, desirable and additional) and award marks to suppliers on fulfilment of these requirements to help reach an overall decision.
Invitation to Tender
If a restricted tender is to be used, then an invitation to tender must be issued. If an open tender is used an invitation to tender may be issued in response to an initial enquiry.
An invitation to tender should include the following:
introduction/background to the project;
scope and objectives of the project;
technical requirements;
implementation of the project;
terms and conditions of tender and
form of response.
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Aspects to Consider
Financial
Like should be compared with like and if a lower price means a reduced service or lower quality this must be borne in mind when reaching a decision.
Care should be taken to ensure that the tender price is the total price and that there are no hidden or extra costs.
Is there scope for negotiation? Technical/Suitability
Qualifications of the contractor
Relevant experience of the contractor
Descriptions of technical and service facilities
Certificates of quality/conformity with standards
Quality control procedures
Details of previous sales and references from past customers. Other Considerations
Pre sales demonstrations
After sales service
Financial status of supplier. Suppliers in financial difficulty may have problems completing contracts and in the provision of after sales service. It may be appropriate to have an accountant or similarly qualified person examine audited accounts etc.
Tender Acceptance Procedures
The invitation to tender should state the date and time by which the completed tender document should be received by the academy. Tenders should be submitted in plain envelopes clearly marked to indicate they contain tender documents. The envelopes should be time and date stamped on receipt and stored in a secure place prior to tender opening. Tenders received after the submission deadline should not normally be accepted.
Tender Opening Procedures
All tenders submitted should be opened at the same time and the tender details should be recorded. Two persons should be present for the opening of tenders as follows:
For contracts up to £30,000 - the budget holder, the Finance/ HR Manager or Management Accountant.
For contracts over £30,000 - either the Management Accountant or the Head teacher.
A separate record should be established to record the names of the firms submitting tenders and the amount tendered. This record must be signed by both people present at the tender opening.
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Tendering Procedures The evaluation process should involve at least two people. Those involved should disclose all interests, business and otherwise, that might impact upon their objectivity. If there is a potential conflict of interest, then that person must withdraw from the tendering process.
Those involved in making a decision must take care not to accept gifts or hospitality from potential suppliers that could compromise or be seen to compromise their independence.
Full records should be kept of all criteria used for evaluation and for contracts over £30,000.
Where required by the conditions attached to a specific grant from the DfE, the department’s approval must be obtained before the acceptance of a tender.
The accepted tender should be the one that is economically most advantageous to the academy. All parties should then be informed of the decision.
Internet Purchases The development of the internet has led to a massive amount of potential purchasing opportunities to the school which can have the positive benefit of cost saving as more competitors enter the market, but the school also needs to be mindful of the risks associated with internet purchasing The risks of internet purchasing include:
Dealing with an unknown supplier has the risk of receiving faulty goods or dealing with individuals who may not be able to provide sufficient purchase documentation for any audit of the use of public funds
Dealing with overseas providers has greater risk of additional carriage fees and difficulty of returning unwanted or damaged goods
Often payments via the internet are made upfront before goods are received
Documentation received from the transaction may not be sufficient for any future VAT re-claims as internet purchases often do not include VAT on the invoice/ receipt or the company’s VAT registration number.
In order to minimise these risks, the following procedures are to be employed when purchasing from the internet.
Staff are encouraged to use the finance office for all procurement via the internet. Suppliers will be vetted first to see if any credit facility can be had to enable payment after the receipt of goods, and also to establish the VAT status of the company
Purchase from overseas companies, particularly those outside of the EU will be made only in exceptional circumstances when it can be shown that the goods are better value after considering all transactional costs (carriage and unrecoverable VAT) and/or there are no suitable alternatives within the UK.
The school has its own Ebay account for sale and purchase of goods. Ebay use is permissible but discouraged, and will always be discussed with the Finance Office first. A breakdown of the policy for Ebay use is shown in Appendix F.
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7. INCOME The main sources of income for the academy are the grants from the DfE. The receipt of these sums is monitored directly by the Management Accountant who is responsible for ensuring that all grants due to the academy are collected. The academy also obtains income from:
students, mainly for trips and catering
the public, mainly for sports lettings. Trips All money collected from pupils for trips etc. is accounted for separately and processed by the Finance Office using the ScoPay (Tucasi)Tucasi School Office System. See Appendix G for details on collection of Other income. Sports Lettings The Premises Manager is responsible for maintaining records of bookings of sports facilities and for identifying the sums due from each organisation. See Appendix G for details for the collection of income from lettings. Catering Income The school operates a cashless biometrics system whereby students top up their catering accounts via the designated terminals in school. This money is collected and processed by the Finance Team and accounted for in SAGE by the Management Accountant. VAT and Income As the Academy is VAT registered, any income received needs to be tested to see if it is subject to VAT repayable to HMRC. Failure to account for VAT on sales correctly could result in a future liability with HMRC in the event of any VAT inspection. Basic rules need to be followed:
If goods are being sold that have VAT on them, i.e. uniform which is classed as an “adult” size, then these items need to be sold with VAT included even if the school does not make a profit on these items
There are particular rules around lettings. To avoid VAT needing to be repaid on sports lettings, wherever possible customers need to book and pay for at least 10 sessions in one go with each session being within 14 days of each other.
All sales invoices and receipts issued will show the correct VAT on them and these will be followed when inputting sales transactions in Access DimensionsSage.
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8. CASH MANAGEMENT Bank Accounts The opening of all accounts must be authorised by the Governing Body (delegated to the SFT) who must set out, in a formal memorandum, the arrangements covering the operation of accounts, including any transfers between accounts and cheque signing arrangements. The operation of systems such as Bankers Automatic Clearing System (BACS) and other means of electronic transfer of funds must also be subject to the same level of control. Details of authorised signatories at Appendix B Deposits Particulars of any deposit must be entered on a copy paying-in slip, counterfoil or listed in a supporting book. The details should include:
the amount of the deposit and
a reference, such as the number of the receipt or the name of the debtor. Payments and Withdrawals All cheques and other instruments authorising withdrawal from academy bank accounts must bear the signatures of two of the following authorised signatories:
Headteacher
Management Accountant
Associate Headteacher
Finance/HR Manager This provision applies to all accounts, public or private, operated by or on behalf of the governing body of the academy. Authorised signatories must not sign a cheque relating to goods or services for which they have also authorised the expenditure. Administration The Finance/HR Manager must ensure bank statements are received regularly and that reconciliations are performed at least on a monthly basis. Reconciliation procedures must ensure that:
all bank accounts are reconciled using the cash reconciliation function in SAGE 200c;
reconciliations are prepared by the Finance Team. Adjustments arising are dealt with promptly.
Petty Cash Accounts The academy maintains a maximum cash balance of £2500. The cash is administered by the Senior Finance Officer or Finance Officer and is kept in the Finance Office safe. Deposits The only deposits to petty cash should be from cheques cashed specifically for the purpose. The receipt should be recorded in the petty cash system with the date, amount and a reference, normally the cheque number, relating to the payment. All other cash receipts for whatever reason should be paid directly into the bank.
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Payments and Withdrawals In the interests of security, petty cash payments will be limited to £30.00 (changes to be verified by the Finance Sub Committee). Higher value payments should be made by cheque or BACS directly from the main bank account on completion of the relevant forms, as a payment to a supplier. Administration The Senior Finance Officer or Finance Officer is responsible for entering all transactions into the petty cash records on a regular basis and regular as well as unannounced cash counts should be undertaken by the Finance/HR manager to ensure that the cash balance reconciles to supporting documentation. Physical Security Petty cash should be held in a locking cash box which is put in the safe overnight. Cash Flow Forecasts The Finance/ HR Manager is responsible for preparing cash flow forecasts to ensure that the academy has sufficient funds available to pay for day to day operations. If significant balances can be foreseen, steps should be taken to invest the extra funds. Similarly plans should be made to transfer funds from another bank account or to re-profile planned investments to cover potential cash shortages. Investments Investments must be made only in accordance with written procedures approved by the Governing Body. All investments must be recorded in sufficient detail to identify the investment and to enable the current market value to be calculated. The information required will normally be the date of purchase, the cost and a description of the investment. Currently the school holds money on investment with Aldermore, and Cambridge & Counties. Money is invested according to a 12-month schedule to ensure that unspent funds are receiving maximum return. The investment schedule is set by the Management Accountant according to cash flow requirements for the coming year.
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9. UNRESTRICTED FUNDS
As an Academy the school no longer has a School Fund Account. All money is held in the accounts and is declared in the Year End Financial Statements. This money is recorded as unrestricted funds. It is a combination of money held from the previous historic “school fund account” surpluses from previous academic years and any additional income in the year from sources such as donations, sales and interest from investments. The school has a policy to maintain a cumulative surplus (reserves) of between 3 and 6 % of General Annual Grant. Subject to cash flow forecasting and medium and longer term financial planning, and prioritising security of funds over revenue maximisation, this may be invested in line with the approved Investment Policy. for ensuring that unrestricted funds maintain a value of £500k as agreed by the Governors. This is to be invested in longer term investments for the purposes of generating additional unrestricted funds for the Academy, and operate as a Reserve for unforeseen circumstances. The full reserves policy is shown in Appendix 1 (to follow)
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10. FIXED ASSETS
Asset Register
All items purchased with a value over the academy’s capitalisation limit (£1,000) must be entered in an asset register. The asset register should include the following information:
asset description
asset number
serial number
date of acquisition
asset cost
source of funding (% of original cost funded from DfE grant and % funded from other sources)
expected useful economic life
depreciation
current book value
location
name of member of staff responsible for the asset The Asset Register helps:
ensure that staff take responsibility for the safe custody of assets;
enable independent checks on the safe custody of assets, as a deterrent against theft or misuse;
to manage the effective utilisation of assets and to plan for their replacement;
help the external auditors to draw conclusions on the annual accounts and the academy’s financial system and
support insurance claims in the event of fire, theft, vandalism or other disasters. Security of Assets Stores and equipment must be secured by means of physical and other security devices. Only authorised staff may access the stores. All the items in the register should be permanently and visibly marked as the academy’s property and there should be a regular (at least annual) count by someone other than the person maintaining the register. Discrepancies between the physical count and the amount recorded in the register should be investigated promptly and, where significant, reported to the governing body. Inventories of academy property should be kept up to date and reviewed regularly. Where items are used by the academy but do not belong to it this should be noted. Disposal Items which are to be disposed of by sale or destruction must be authorised for disposal by the Management Accountant and, where significant, should be sold following competitive tender. The academy must seek the approval of the DfE in writing if it proposes to dispose of an asset for which capital grant in excess of £20,000 was paid. Disposal of equipment to staff is not encouraged, as it may be more difficult to evidence the academy obtained value for money in any sale or scrapping of equipment. In addition, there are complications with the disposal of computer equipment, as the academy would need to ensure
23
licences for software programmes have been legally transferred to a new owner. The academy is expected to reinvest the proceeds from all asset sales for which capital grant was paid in other academy assets. If the sale proceeds are not reinvested, then the academy must repay to the DfE a proportion of the sale proceeds. All disposals of land must be agreed in advance with the Secretary of State. Loan of Assets Items of academy property must not be removed from academy premises without the authority of the Head of Department. A record of the loan must be recorded in a loan book and booked back in to the academy when it is returned. If assets are on loan for extended periods or to a single member of staff on a regular basis the situation may give rise to a ‘benefit-in-kind’ for taxation purposes. Loans should therefore be kept under review and any potential benefits discussed with the academy’s auditors.
24
Appendix A
Cost Centre Budget Holder
Educational Supplies - Art JPO
Educational Supplies - Business NO
Educational Supplies - Design & Technology DS
Educational Supplies - English WE
Educational Supplies - Extended Project CFH
Educational Supplies - Geography DLW
Educational Supplies - Headteacher's Initiative Fund PD
Educational Supplies - Health & Social Care LHT
Educational Supplies - History FO
Educational Supplies - ICT PBR
Educational Supplies - Kevin Shore Vocational Academy TOR
Educational Supplies - Learning Support LL
Educational Supplies - Literacy VB
Educational Supplies - Maths TO
Educational Supplies - Media CFH
Educational Supplies - MFL LK
Educational Supplies - Music AW
Educational Supplies - PE DR
Educational Supplies - Performing Arts MA
Educational Supplies - Pupil Premium JT
Educational Supplies - RE SRC
Educational Supplies - Science HF
Educational Supplies - Sixth Form CCO
Educational Supplies - Social Science HA
Educational Supplies - Student Awards PD
Educational Supplies - Student Rewards KS3 RH
Educational Supplies - Student Rewards KS4 RH
Educational Supplies - Super Learning Days NO
Educational Supplies - T&L VB
Educational Supplies - Transition RH
Educational Supplies - Wellbeing CCO
Educational Supplies - World Studies LL
Cost of Fund Generation - School Productions AW
Presentation Evening HL
Maintenance of Equipment - Catering MSM
Catering Supplies MGreenhough
Cleaning Supplies - Catering MGreenhough
Cost of Sales - Student Cash MGreenhough
Technology Costs - ICT Admin IM
Technology Costs - ICT Curriculum IM
Technology Costs - ICT Summer Spend IM
Training Costs PD
Energy MSM
Rates MSM
Rent MSM
25
Security MSM
Water & Sewerage MSM
Maintenance of Premises MSM
Maintenance of Equipment MSM
Cleaning Supplies - Caretaker SBL
26
Cost Centre Budget Holder
Educational Supplies - Art JPO
Educational Supplies - Business NO
Educational Supplies - Design & Technology DS
Educational Supplies - English WE
Educational Supplies - Extended Project CFH
Educational Supplies - Geography RQ/DLW
Educational Supplies - Headteachers Initiative Fund PD
Educational Supplies - Health & Social care LHA
Educational Supplies - History FO
Educational Supplies - ICT PBR
Educational Supplies - Kevin Shore Vocational Academy TO
Educational Supplies - Learning Support LL
Educational Supplies - Literacy VB
Educational Supplies - Maths LD/
Educational Supplies - Media CFH
Educational Supplies - MFL AAT
Educational Supplies - Music AW
Educational Supplies - PE DR
Educational Supplies - Performing Arts MA
Educational Supplies - Pupil Premium JT
Educational Supplies - RE SRC
Educational Supplies - Science HF
Educational Supplies - Sixth Form CCO
Educational Supplies - Social Science HA
Educational Supplies - Student Awards PD
Educational Supplies - Student rewards KS3 RH
Educational Supplies - Student rewards KS4 RH
Educational Supplies - Super Learning Days CCO
Educational Supplies - T&L VB
Educational Supplies - Transition RH
Educational Supplies - Wellbeing CCO
Educational Supplies - World Studies LL
Cost of fund generation - School Productions AW
Presentation Evening HL
Maintenance of equipment - Catering MSM
Catering supplies MSM
Cleaning supplies - Catering MSM
Cost of Sales - Student Cash MSM
Technology Costs - ICT Admin IM
Technology Costs - ICT Curriculum IM
Technology Costs - ICT Summer Spend IM
Training costs - Admin PD
Training costs - Catering PD
Training costs - Ed Support PD
Training costs - Other PD
Training costs - SLT PD
Training costs - Teacher PD
Energy MSM
Rates MSM
Rent MSM
Security MSM
Water and sewerage MSM
Maintenance of premises - Additional Maintenance Projects MSM
Maintenance of premises - Bungalow Rental MSM
Maintenance of premises - Catering MSM
Maintenance of premises - Central Maintenance MSM
Maintenance of premises - Fixed Wire Testing MSM
Maintenance of premises - Maintenance of Premises MSM
Maintenance of equipment - Central Maintenance MSM
Maintenance of equipment - Central resources MSM
Maintenance of equipment - Furniture & Equipment MSM
Cleaning supplies - Caretaker SBR
27
Appendix B
AUTHORISED SIGNATORIES
Lloyds Current Account:
Finance / HR Manager
Management Accountant
Head Teacher
Associate Head Teacher
Lloyds No 2 Account
Finance / HR Manager
Management Accountant
Head Teacher
Associate Head Teacher Cambridge & Counties Savings Account
Finance / HR Manager
Management Accountant
Head Teacher Aldermore Fixed Rate Bond
Finance / HR Manager
Management Accountant
Head Teacher
28
Appendix C
SEGREGATION OF DUTIES
Segregation of duties is one of the prime means of control within the finance department. It reduces the risk of error or manipulation by providing checks within a routine. It means no one person is responsible for the recording and processing of a complete transaction.
Finance
Assistants Management
Accountant
Processes orders
and invoices
Authorises BACS
payments
Operates
procedures on
accounting
systems
Authorises Petty
Cash
reimbursement
Signs Cheques
Signs Cheques
Process Petty
Cash
Expenditure
Authorises BACS
payments
Manages operational
procedures on
accounting systems
Oversight of Petty
Cash
Expenditure
Raises invoices for
Lettings
Raises Cheques
Operates procedures
on accounting
systems
Authorises invoices
for Lettings
Senior Finance
Assistant Finance Manager
Processes complex
orders & invoices
Signs and
authorises orders
and invoices
Prepares invoices for
BACS payments
Signs and
authorises orders
and invoices
29
Appendix D
VAT AND EXPENDITURE
INVOICE PROFORMA INVOICE RECEIPT
Is VAT shown on the invoice?
YES
Check for:
1) VAT number
on the invoice
– if none
contact
supplier for
one
2) VAT has been
calculated
correctly – if
not contact
the supplier
for a new
invoice
Is this a VATable product?
Is the supplier
VAT registered?
Process
the
invoice
under the
correct
VAT code
(either
VAT code
0 or 3 or
8)
Process the
invoice under the
correct VAT code
(either 1 or 2)
Is this a VATable
product?
Is the supplier
VAT registered?
Process the VAT invoice
under the correct VAT
code (either 1 or 2)
Process
the
invoice
under the
correct
VAT code
(either
VAT code
0 or 3 or
8)
Is VAT shown on the receipt?
Check for the
company VAT
registration number
on the receipt. If
this is not shown
contact the supplier
for it and write it
clearly on the
receipt
Process the
invoice under
the correct
VAT code
(either 1 or 2)
Request a
VAT
invoice
YES
Is this a
VATable
product?
Is the
supplier
VAT
registered?
Obtain VAT
number and
write on
receipt.
Manually
calculate VAT
Process
the
invoice
under the
correct
VAT
code
(either
VAT
code 0 or
3 or 8)
YES
NO
NO
NO
NO
NO
NO
NO
YES
YES
YES
YES
Request a VAT
invoice and do not
process any further
until one received
Check invoice for
VAT number and
correct calculation of
VAT
YES
NO
30
Appendix E
ORDER PROCESSING
All orders are processed through IConnekt which is connected in to tthe SAGE 200c accounting package. Departments are allocated their own departmental code and budgets are allocated to individual departmental codes for each academic year. Orders are mainly received from departments to the Finance Office on a green pro forma order form which is signed by the Head of Department. A small group of budget holders have access to SAGE 200c which enables them to process an order requisition via the software package which is then submitted to the Finance Assistant for consolidation into an official order. The Finance/HR manager ensures there is sufficient funding available within the cost centre to cover the expenditure. If there are insufficient funds, the order is passed back to the Head of Department with a printout of the relevant department commitments. Orders are processed by the Finance Assistant. These are then passed to the Finance/HR manager for authoriszation before sending to suppliers. Three copies of the order are used. A copy is posted/faxed /emailed to the supplier; a copy (is recorded separately within a spreadsheet against the relevant capitation account to form a commitment against that account. This is then filed to await delivery and invoices. The third copy is emailed to the department which has ordered the goods for their information. A separate manual for the use of SAGE 200c is available within the Finance Office.
31
INVOICE PROCESSING Invoices are received into the Finance Office and stamped with the grid label to enable information to be entered in compliance with Audit requirements. The Finance Assistant checks the invoice against the copy order to ensure arithmetic, prices and discounts are correct and that the invoice has not previously been received. The Finance Assistant signs the grid label stamp to evidence these checks have been made and records the invoice number, date, net and gross amount on the copy order. The invoice is then sent via pigeon hole to the Head of Department who will check that goods have been received, sign the grid label stamp and return to Finance Office for payment. The Finance/HR manager records the invoice details against the committed expenditure within the separate spreadsheet against the relevant capitation account and authoriszes the invoice for payment, providing the Head of Department has signed the grid label to confirm receipt of the goods. Where there is a dispute, invoices are not authorized for payment until full agreement has been reached and necessary credits are received. The Finance Officer processes the invoice via SAGE 200c. The Senior Finance Officer prepares the invoices for payment via BACS
32
Appendix F
SCHOOL EBAY POLICY
Procedures for Ebay use 1. To assist the school to turn redundant assets/materials/items into funding for the
purchase of more appropriate equipment etc. for future school use
2. To provide the opportunity to purchase items deemed suitable and necessary with a
view to saving the school money versus buying new.
3. To ensure that activities are all fully authorised and managed in line with school
finance procedures
4. Ensure that all staff associated with the use of Ebay on behalf of the school have clear
guidelines on its use and are fully aware of their responsibilities
5. No member of staff is permitted to use their own Ebay account to sell school property
or procure items on behalf of the school
6. Items of/for personal use will not be sold or bought via the school Ebay account
7. The school will register with Ebay for a charity account in order to be exempt from
Ebay selling fees of 10%
8. A PayPal account will be opened in conjunction with an appropriate bank account. In
this case the Lloyds No 2 account will be used. A common password will be set up
known only by the Head Teacher, Management Accountant and Finance/HR Manager
9. All sales and purchases must be transparent and in no way contravene the staff code
of conduct nor affect the school’s reputation in a negative way
9.10. All usage of the Ebay account will be discussed within the Finance Office to ensure
more appropriate alternatives are considered
Procedure for sales 1. Any item identified as surplus to requirements and deemed to have potential value
would be considered a potential sale via the use of e-bay
2. Authorisation for sale must be provided by the Head Teacher
3. Pricing of goods i.e. the minimum starting price needs to be agreed by the Head
Teacher and Management Accountant. VAT needs to be included in the sale price for
any goods that have a VATable supply.
4. Postage costs or collection only will need separate identification
5. Arrange wording/set up of Ebay sale along with photos and obtain final approval from
Head Teacher. Arrange with nominated persons (IT dept/LS) for listing to be placed
6. Identify the appropriate category and item condition on Ebay for sale. Item
conditions are below:
33
New A brand-new, unused, unopened and undamaged item in the original packaging (where packaging is applicable). Packaging should be the same as what is found in the retail shop. If the item comes straight from the manufacturer it may be delivered in non-retail packaging, such as an unprinted box or plastic bag.
New (other) A new, unused item with absolutely no signs of wear. The item may be missing its original packaging, or the original packaging has been opened or is no longer sealed. The item may be a factory second, or a new and unused item with minor defects.
Manufacturer refurbished
An item that has been professionally restored to working order by a manufacturer-approved vendor. This means the product has been inspected, cleaned and repaired to meet manufacturer specifications and is in excellent condition. This item may or may not be in its original packaging.
Seller refurbished
An item that has been restored to working order by the Ebay seller or a third party not approved by the manufacturer. This means the item has been inspected, cleaned and repaired to full working order and is in excellent condition. This item may or may not be in its original packaging.
Used An item that has been previously used. The item may have some signs of cosmetic wear, but is fully operational and functions as intended.
For parts or not working
An item that does not function as intended or is not fully operational. This includes items that are defective in ways that render them difficult to use, items that require service or repair, or items missing essential components.
7. All auctions must run to the end and not finish early
8. Once the auction has finished, the head of Department selling the items will organise
and fully support the despatch process. This means that the goods in question are
appropriately packed, labelled and ready for collection by the courier route selected.
Where items are to be collected the school reception need to be informed with the
detail of the persons collecting
9. The finance/HR manager must be informed that a sale has been achieved by the
member of staff responsible for the Ebay listing
10. Where the sale results in the collection by the purchaser, a receipt of goods form by
the purchaser must be obtained. All payments must be made to the designated PayPal
account (not cash on collection)
Procedures for purchases 1. The purchase of any item for school via Ebay will be subject to the current financial
procedures in place for the school. It must be established that there is not a better
alternative route to purchase the item(s) in question, via our normal suppliers or other
internet based companies such as Amazon.
2. Consideration must be given to the following: We are unlikely to be able to re-claim
any VAT which may immediately offset any perceived better value in the sale, we are
purchasing from unknown suppliers who we are unable to verify, we will have
additional postage costs or costs associated with the use of the school vehicle and
people’s time if collecting, we may not be able to get a refund if goods are faulty, we
will purchase at our own risk and may not be able to get compensation if the goods
cause any harm to individuals.
3. If equipment is being purchased, then from a health and safety point of view we must
obtain a valid test certificate that the equipment is in good working order
4. The finance department will make the bid on behalf of the budget holder within normal
working hours. They will only do this where an authorised purchase order has been
34
received which is signed by the budget holder and approved by the management
accountant or the Finance/HR manager in their absence. If the item to be purchased
requires a valid and current test certificate, then this also needs to be obtained before
any bidding takes place. Costs of postage or associated costs of picking up goods
(staff time and use of school vehicle) also need to be added to the purchase order.
5. The maximum bid level is to be stated on the purchase order.
6. The purchase holder is responsible for ensuring that collection of purchases is
arranged with the seller
7. Where purchases are collected within the normal working day, cover must be
requested via the usual process
8. Where purchases are collected outside of the normal working day, no time in lieu or
overtime will be given
9. Payment for goods can only be made via the schools Ebay account. Reimbursements
will not be given to staff who have used their own Ebay account to purchase goods.
35
Wales High School Ebay authorisation listing form
Item for Sale: __________________________________ Date: __________
Reason for sale: _____________________________________________________________
Ebay Category: _______________________________________________
Ebay Item condition: ___________________________________________
Department
Staff responsible
Staff placing listing
Starting Price: £ ____________________ Collection: or Delivery: (Please tick one)
Postage Cost: £ ____________________
Listing Start Date:
Length of Auction:
(all auctions will run to the end)
………………………………………………………………………………… Approval
Department Head: _____________________ Date: ___________________
Head Teacher: ______________________ Date: ___________________
Management Accountant: _______________ Date: ___________________
Item description:
36
Appendix G
COLLECTION OF MONEY IN SCHOOL
The majority of visits, expeditions and events will involve a cost implication and the need to collect money from pupils. Pupils will also bring money into school for the purchase of uniform, some sporting items and also contributions towards items used in class such as food ingredients or calculators School Trips All receipts and payments are handled via the Finance Office, who will also obtain prices and book coaches where required. When a visit, expedition or event is organised, the following details must be provided to the Finance Office to enable an account to be opened.
A form detailing the school trip: Trip cost per pupil, what the trip is. This must be received in the finance office prior to trip information being sent out to parents.
A list of pupils taking part in the venture Payments from pupils must be handed to the Finance Office, in an envelope clearly marked with the pupil’s name, tutor group and event. This should be presented no later than morning break, to enable the money to be correctly recorded and banked. Please pass to the Finance Office on the day of receipt as cash should not be held around school. Please pass all payments to a member of the finance team, do not leave money in trays or pigeon holes. The Finance Office will produce receipts for every payment received using the ScoPay (Tucasi )School cash office system and provide venture organisers with summary reports detailing who has paid and those with amounts outstanding. Should you require a cheque payment for a deposit, or to cover entry fees, please arrange this with the Finance Office. Confirmation of the deposit amount should be obtained from the venue which should be attached to a cheque request form. The cheque request form must be completed indicating the visit to be debited, the payee and the amount. An ‘Events and Visits Account Sheet’ should be completed for each activity as soon as possible after the event indicating the income and expenditure. This summary should include the reasons for any deficits, such as parents being unable or unwilling to pay for their child. The destination of any surplus funds should also be indicated. For example, the relevant department cost centre or refunds to pupils where appropriate. Other purchases or contributions All cash brought in by students must be brought straight to the finance office. The ScoPay (Tucasi) cash office system enables the finance team to record against each pupil all money brought in for any purchase/ contribution and provide printed receipts for pupils along with retaining a copy of the receipt on the system.
37
Any monies brought to the finance office on behalf of a pupil should include a clear description of pupil name, amount and reason for funds. If the funds are for a contribution, then it must be clearly stated what materials/ stock item the contribution was for. This is so that the Academy can fully comply with all VAT regulations on income received. All monies, whether from pupils or staff, must be received before the end of morning break other than in exceptional circumstances. If in doubt, please consult with the Finance/HR manager about any matter relating to the financial elements of school ventures. Internet Payments The Academy has a facility with ScoPay (Tucasi) Cash Office System to enable parents to be able to pay the school for any trips etc. using the internet. All parents are sent a username and password to enable login to the Tucasi ScoPay system. Once they are in to their specific site they will see details of all school trips relevant to their child along with payment history and any outstanding balances. They will then be able to select which payments they wish to make using either a Debit or Credit card. The payments are received into the Academy’s Lloyds Account No 2. Payments received in this way are recorded on the ScoPay Tucasi school cash office system and can be viewed by the finance team. These will be reconciled weekly to the Academy’s bank account (Lloyds Account No 2). These will then be journalled by the Finance/HR manager onto the Sage Access Dimensions system to accurately record income from trips etc. onto the accounting system. The Lloyds No 2. Account will be reconciled fully each month to bank statements as per monthly procedures mentioned in the Finance Systems part of this document The Tucasi cash office ScoPay system is password protected. All members of the Finance Team have their own login to the system. Various access protections are in place and these are controlled by the Finance/HR manager. The Tucasi Cash office system ScoPay has a dynamic link to SIMS where it retrieves details of all pupil information. The use of internet payments incurs a transaction charge to the school. This is covered within the cost of school trips by incorporating a levy onto the trip cost according to the amount of the school trip per pupil. This levy will be approximately 2% of the cost of the school trip. The Management Accountant is responsible for monitoring the use of the internet payments and that transaction charges are being adequately recovered in the costs of the school trip.
38
Appendix H
SCHOOL DEBTORS
Invoices for use of the premises (lettings), re-charges and supply of goods or services are raised via SAGE 200c using the Sales Ledger module. The Senior Finance Officer raises, authorises and prints 2 copies of the invoice. The top copy is sent to the debtor, the second copy is kept on file until paid. When the income relating to the invoice is received, this is matched against the invoice and entered onto SAGE 200c as Sales Ledger Receipt Once income has been recorded, it is paid into the bank account. The invoice is stamped as ‘paid’, dated and filed for audit purposes. Monthly reconciliations are carried out to ensure the prompt payment of invoices and reminder invoices with accompanying letters are sent where necessary.
39
Appendix I
RESERVES POLICY
1. The purpose of this policy is to ensure that Wales High School Academy Trust protects its operational activities by providing a prudent level of reserves (cumulative surplus), which should guard against any negative financial impact of unforeseen occurrences, and support medium to longer term financial planning.
2. This policy operates in conjunction with: a. Articles of Association b. Funding Agreement c. Academies Financial Handbook d. Finance Policy e. Investment Policy
3. The purposes for holding reserves may include:
a. Fluctuations in funding or student numbers b. Covering the effects of ‘lag funding’ (where increases in pupil numbers
necessitate increases in expenditure in-year and funding follows in subsequent year(s))
c. Unforeseen significant expenses, e.g. a large repair bill d. Funding short term deficits in cashflow, e.g. the spending of a grant beginning
before it is received e. Unforeseen operational costs, e.g. employing temporary staff to cover long
term absences
4. The Academy will seek to balance the need to provide an appropriate level of reserves with the objective of maximising educational outcomes of its pupils
5. The target range of reserves is 3 – 6% of General Annual Grant income.
6. If the Academy is not meeting its targeted level of reserves, then it should take action to ensure it can return to its targeted level within a reasonable period.
a. If the Academy reserves are below the target level, this will involve preparing plans and a budget to improve the position within a required time frame agreed by the Trustees.
b. Reserves held in excess of the target amount will be reviewed by the Trust on a regular basis and an appropriate range of options will be considered, which might include committing the funds into the revenue or capital budget in furtherance of the Academy's objectives, or investing the funds to generate further income to support the Academy’s work.
7. Any change in this Policy require the approval of Trustees or their delegated representatives.
1. To allocate a contingency within the budget planning procedure, of a prudent level designed to meet the long-term recurring needs of renewal and any other unforeseen
40
expenditure, subject to the constraint that the level of resources does not exceed the level permitted by the EFA.
1. To carry forward the maximum amount to allow for unexpected expenditure to meet
the long term aims and objectives as detailed in the School SIP. 2. Hold in Reserves a cash reserve balance of £500k to be invested in longer term
investments for the purposes of generating additional unrestricted funds for the Academy, and operate as a Reserve for unforeseen circumstances.
3. Any change in Policy requires the approval of Governors or their delegated
representatives.
