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NEW PRINCIPALS TRAINING Managing School Finances October 2009.

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Presentation on theme: "NEW PRINCIPALS TRAINING Managing School Finances October 2009."— Presentation transcript:

1 NEW PRINCIPALS TRAINING Managing School Finances October 2009

2 Facilitators George Blackam George Blackam Alan Brannagan Alan Brannagan Stephen Baker Stephen Baker

3 Learning outcomes By the end of the course on financial management, new principals should: Have a better appreciation of their roles and responsibilities in relation to financial management Have a better appreciation of their roles and responsibilities in relation to financial management Understand the budget setting environment including the LMS Common Formula and Centrally held budgets Understand the necessity for financial planning and the timescales involved Understand the necessity for financial planning and the timescales involved

4 Learning outcomes cont.. Know where they can get support and further help Know where they can get support and further help Have an understanding of the 3 year planning process Have an understanding of the 3 year planning process Feel confident about their knowledge of what is involved in financial management Feel confident about their knowledge of what is involved in financial management

5 ROLE OF LMS to provide high quality financial planning and management information to meet the needs of School Principals and Boards of Governors of schools. to provide high quality financial planning and management information to meet the needs of School Principals and Boards of Governors of schools.

6 Role of the Governors Plan and control use of resources Plan and control use of resources Contain expenditure within approved budget Contain expenditure within approved budget Manage resources economically, effectively and efficiently Manage resources economically, effectively and efficiently Establish proper financial controls Establish proper financial controls Financial management: planning, reviewing, monitoring and forecasting Financial management: planning, reviewing, monitoring and forecasting AFFORDABILITY AFFORDABILITY

7 Principal must Keep all governors informed on a regular basis Keep all governors informed on a regular basis Have finance on the agenda for each BoG meeting Have finance on the agenda for each BoG meeting Work closely with finance committee Work closely with finance committee Manage the responsibilities that have been delegated to them by the BoG Manage the responsibilities that have been delegated to them by the BoG

8 To ensure that schools with similar characteristics receive similar levels of funding regardless of the area or sector in which they are located. OBJECTIVE OF COMMON FUNDING FORMULA (CFF)

9 GENERAL SCHOOLS BUDGET

10 Sources of Funding Pupils Nos Pupils Nos Premises Factor Premises Factor Targeting Social Need Targeting Social Need Small Schools Support Small Schools Support Teacher Salary Protection Teacher Salary Protection Foundation Stage Foundation Stage Primary Principals Release Time Primary Principals Release Time Others Others Schools delegated budget is determined by LMS Common Formula Funding – DE MAIN DRIVERS

11 AWPUs (£2,020) Funding Per Capita Nursery£3,524 Nursery£3,524 Primary£2,809 Primary£2,809 Secondary£4,097 Secondary£4,097 Grammar£3,641 Grammar£3,641

12 CONSULTATION Proposed Factor Changes Primary AWPU1.06

13 Closing Date for Submissions Return to Board Return to Board December 2009 December 2009 Return to DE Return to DE December 2009 December 2009

14 Teacher Substitution Costs Teacher Substitution Costs Special Educational Needs Special Educational Needs Contingency Funding Contingency Funding Curriculum Reserve Fund Curriculum Reserve Fund Other Other Central Funding Board Funded Items (Non Delegated)

15 Capital Funding Minor Works ( up to £500k) Minor Works ( up to £500k) -Apply through Property Services -Priority Assessment, eg Health and Safety Disability Access Funding Disability Access Funding Virement from LMS Budget (>£15k) Virement from LMS Budget (>£15k)

16 Sources of Funding cont Earmarked Funds Time Bound Time Bound Specific Project Specific Project Delegated Budget Delegated Budget Tracking expenditure Tracking expenditure

17 External Funds Heritage Lottery Funding Heritage Lottery Funding Tesco Charity Trust Tesco Charity Trust Big Lottery Funding Big Lottery Funding Young Roots Young Roots

18

19 2009/10 FINANCIAL CYCLE PROCESS OCTOBER School Forwards census information to DE via C2k and forwards paper copy to SEELB 9 October Funding for financial year OCTOBER School Forwards census information to DE via C2k and forwards paper copy to SEELB 9 October Funding for financial year NOVEMBER LMS Send out Staffing List for financial year School Reviews, amends and returns NOVEMBER LMS Send out Staffing List for financial year School Reviews, amends and returns JANUARY LMS Validation of Annual Census Data to DE JANUARY LMS Validation of Annual Census Data to DE FEBRUARY/MARCH DERun Common Formula Funding Budget Share LMSSend 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 SchoolReview 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/MARCH DERun Common Formula Funding Budget Share LMSSend 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 SchoolReview 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 DERun Common Formula Funding Budget Share LMSComplete final year end projections and complete final checks on staff costs in preparation for issue of staff cost projections and expenditure projections. FEBRUARY DERun Common Formula Funding Budget Share LMSComplete 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/JUNE LMSFinal reports available on ESA reports website Upload budget allocation onto ESA financial system AUGUST LMSThree year plans are signed off by ESA and letters are forwarded to schools SEPTEMBER ESAContacts schools that have raised financial concerns MAY – SEPTEMBER MAY/JUNE LMSFinal reports available on ESA reports website Upload budget allocation onto ESA financial system AUGUST LMSThree year plans are signed off by ESA and letters are forwarded to schools SEPTEMBER ESAContacts schools that have raised financial concerns

20 FINANCIAL PLANNING Two elements that need to be closely linked: Two elements that need to be closely linked: – School Development Plan – School Financial Plan

21 FINANCIAL REPORTS

22 REPORTS Budget and Expenditure Report Budget and Expenditure Report Staffing Report Staffing 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)

23 Budget Monitoring Reports issued monthly Reports issued monthly Summary and Detail available Summary and Detail available Available on Website Available on Website Access from home if desired Access from home if desired Review every month Review every month

24 IN YEAR ADJUSTMENTS deal with emergencies deal with emergencies change of plans change of plans need to keep balanced budget need to keep balanced budget

25 C2k/FMS SYSTEM Used in Schools for - Raising orders - Entering invoices - Entering invoices -Reconciliation to Board system -Reconciliation to Board system Can generate a range of reports that may supplement Board issued reports Must be kept up to date and reconciled

26 ACTIVITY ONE Report Reading

27 LUNCH

28 ACTIVITY TWO PREPARING FOR BUDGET SETTING What, Why, Where?

29 Activity 3 Financial Planning Financial Planning –Budget Allocation Form –Three Year Financial Plan

30 Budget Allocation Form Total Resources Available Total Resources Available Total Projected Spend for Total Projected Spend for Projected End Of Year Balance March 2009 Projected End Of Year Balance March 2009 Agreed expenditure transferred to Budget Allocation Form Agreed expenditure transferred to Budget Allocation Form Budget Uploaded onto Financial System Budget Uploaded onto Financial System

31 3 YEAR PLAN 2 & 3-Amend pupil nos. Increase/Decrease budget by rise/fall in pupils x per capita 2 & 3-Amend pupil nos. Increase/Decrease budget by rise/fall in pupils x per capita Expenditure assumed constant Expenditure assumed constant Amend additional expenditure/savings as appropriate Amend additional expenditure/savings as appropriate Review Outcome Review Outcome

32 DE WORKBOOK Requirement from Department of Education Requirement from Department of Education Surplus Deficit 5% or £75,000 of delegated budget (whichever is the lesser) Surplus Deficit 5% or £75,000 of delegated budget (whichever is the lesser) Re- assessment throughout the year by Department of Education Re- assessment throughout the year by Department of Education School Performance Review Group School Performance Review Group

33 3 YEAR PLAN GreenAchieved within 5% or £75,000 whichever the lesser all three years of plan GreenAchieved within 5% or £75,000 whichever the lesser all three years of plan YellowSubstantially achieved but outside 5% of £75,000 limit in any one year (minor concerns) YellowSubstantially achieved but outside 5% of £75,000 limit in any one year (minor concerns) AmberSignificant Concerns. Increasing surplus/deficits – outside limit – query over figures/pupil nos, Board officers will contact school AmberSignificant Concerns. Increasing surplus/deficits – outside limit – query over figures/pupil nos, Board officers will contact school RedUnacceptable outside the limits. Action plan needs to be agreed with school RedUnacceptable outside the limits. Action plan needs to be agreed with school

34 NORTHERN IRELAND SUBSTITUTE TEACHER (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 substitute teachers Increased choice – access to regional database of substitute teachers System matches cover requirements against teachers on register who are available on dates required System matches cover requirements against teachers on register who are available on dates required Teachers' calendars updated on confirmation of bookings Teachers' calendars updated on confirmation of bookings Provides information on previous work experience and expertise Provides information on previous work experience and expertise No cost to schools - the register is being funded centrally No cost to schools - the register is being funded centrally

35 PLANNING FOR THE FUTURE

36 EXPECT THE UNEXPECTED What is the future enrolment trend? What is the future enrolment trend? Has your school any outstanding commitments? Has your school any outstanding commitments? Are there any options available to reduce variable costs? Are there any options available to reduce variable costs?

37 POINTS TO CONSIDER Is there a strong link between the school development plan and the financial plan? Is there a strong link between the school development plan and the financial plan? Are you familiar with your schools budget setting and monitoring arrangements? Are you familiar with your schools budget setting and monitoring arrangements? Do proper financial controls exist? Do proper financial controls exist?

38 QUIZ

39 Learning outcomes Have a better appreciation of their roles and responsibilities in relation to financial management Have a better appreciation of their roles and responsibilities in relation to financial management Understand the budget setting environment including the LMS Common Formula and Centrally held budgets Understand the necessity for financial planning and the timescales involved Understand the necessity for financial planning and the timescales involved

40 Learning outcomes cont.. Know where they can get support and further help Know where they can get support and further help Have an understanding of the 3 year planning process Have an understanding of the 3 year planning process Feel confident about their knowledge of what is involved in financial management Feel confident about their knowledge of what is involved in financial management

41 Sources of Information Three Year Financial Plans Three Year Financial Plans Budget Allocation Forms Budget Allocation Forms Budget Statements Budget Statements Outturn Statements Outturn Statements Training Slides Training Slides Monthly Financial Reports Monthly Financial Reportslms.nielb.com Common Formula Funding Scheme Common Formula Funding Scheme C2k/FMS Kathleen Dobbin C2k/FMS Kathleen Dobbin

42 LMS CONTACTS George Blackam Alan Brannagan Stephen Baker Nursery and Post Primary Harry Campbell Controlled Primary Schools Fidelma Ward Ann McQuillan Maintained & Integrated Primary Schools Jacqui Wade Mark McKaig

43 Open Forum Questions Questions Evaluation Evaluation Close Close Questions


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