1. BOARD OF GOVERNORS’ TRAINING School Financial Management

2. AIMS
Equip governors with knowledge to make decisions on their school’s finances
Update governors on current school finance issues
CONTENTS
Overview BoGs’ Financial Management Responsibilities
Case study school 3 year plan
2015/16 DE budgetary context

3. SELB’S RESPONSIBILITIES
Allocation information
Generate monitoring reports
3 year Budget Plan approval
LMS Section – provide advice & support

4. PRINCIPAL’S RESPONSIBILITIES
Day-to-day financial management
(as delegated by BoG)
3 year Budget Plan preparation
Regular updates to BoG/Finance Committee of BoG
Advice to BoG on Financial Aspects of School Development Plan (SDP), Salary policy and any other decisions.

5. BOARD OF GOVERNORS’ RESPONSIBILITIES
“Legal managers of the schools”
NIAO LMS Report Feb 2004
Decide level of delegation to principal
Approval of the 3 year Budget Plan
Monitoring spend against Plan
Financial implications of SDP, salary policy and any other decisions.

6. SCHOOL FUNDING Aggregated Schools Budget (ASB) from DE
Schools Allocation
Common Funding Scheme (CFS)
Pupil numbers (80%)
Age Weighted Pupil Unit (AWPU)
Other factors –
Travellers
New Comers
Free School Meals Entitlement (FSME)

7. AGE WEIGHTED PUPIL UNIT
Sector
(DE)
Weightings
Per Pupil
2014/15 AWPU
VALUE
2014/2015
Actual Cash Value
NURSERY SCHOOL
Full Time
Part Time
 1.452
0.955
2022
2936
1931
NURSERY CLASS
1.35
0.895
2730
1810
PRIMARY
 Reception & Primary Years 1-7
Learning Support Centre
 1.08
0.78
 2184
1577
POST PRIMARY
 Year 8 – Year 12
Year 13 – Year 15
 1.68
2.18
1.28
2037
3422
4441
2607
SENIOR HIGH SCHOOL
 Year 11 – Year 12
1.848
 2037
3764

8. Budget Plan 3 Year Budget Plan every school must complete annually
Year 1 how you plan to spend current allocation
Year 2 & 3 budget and enrolment trends
A summary of where your school finances are heading
LMS advice and support for budget planning:
School must estimate enrolments
LMS populate a steady state 3 year plan
LMS help cost school saving/spend options
School submits signed BOG approved 3 year budget plan

11. STAFFING ISSUES Staffing costs average 80% of school expenditure
Review possible staff cost savings
Consider both teaching and non teaching categories
Undertake a curriculum audit
All efforts to mitigate against compulsory redundancies
Staff cost savings example options
Temporary contracts
Reduction of hours
Career breaks
Voluntary severance
Compulsory severance
Teaching redundancies
Deadline for anticipated numbers to SELB 31/01/2015
must be ongoing reduction with no future replacement

12. Approvals - Risk assessment
3 yr Approval Green
1yr Approval Amber (Full risk categories details in pack)
High Risk No Approval Red
FACTORS: EG. Demographics
Area Planning Status
Senior staffing changes etc.
The DE target requires that no school carries a deficit or surplus greater than 5% of funds available or £75k whichever is the lesser at the end of the 3 year budget planning process
No school can plan for a deficit without the approval of the Chief executive, Chief Finance officer and Finance Committee of the Board.
Slide 12

13. FINANCIAL MONITORING Recommendations:- Report Pack:-
Standing agenda item
minimum quarterly/termly agreed plan compared to current spend
any staffing decision should be accompanied by a costing estimate
Report Pack:-
Monthly reports from SELB
Budget & Expenditure
Staffing Costs
Detailed Transaction Report

14. Key issues for discussion at your next Board of Governors Meeting
Current agreed 3 year budget plan to March 2017
Updated estimate of your school’s March year end position
Enrolment trend
Future commitment of additional resources in School Development Plan and or Salary Policy
quiz
Slide 14

15. 2015/16 DE Budgetary context DE Draft Budget 2015/16 (24/11/2014)
ASB shortfall of £(78.7)M less extra
£10m TSN
est AWPU impact -7% to -8%
Finance Minister £64.6M extra for DE (19/01/2015)
Education Minister Final budget £80M extra to ASB (19/01/15)

16. Your School 2015/16 onwards
Extra DE funding to ASB of £80M is about nett 1% increase on 2014/15. But over the whole of NI the number of pupils to fund from ASB in 2015/16 is likely to increase.
Your school’s current budget plan is based on cash flat AWPU.
Probable nett impact – current budget plan 2015/16 will be in the ballpark for most schools.
DE Draft budget 2015/16 variety of Earmarked cuts. Final budget unknown.
2016/17 indications are worse than your current plan.
Slide 16

17. SELB 2015/16 onwards Overall school deficit growth
2013/14 actual centre cost £2.358M
2014/15 SELB budget set aside £3M
Impact
In 2013/14 £2.358M could have been spent on approximately:
Education Authority from 01/04/2015
Draft budget ELB centre – 5.1% (plus Earmarked cuts)
Finance Minister (19/01/2015) additional expected 20,000 post reductions over the next 4 years (RRI borrowing to fund)
FTE
Hours
SEN Classroom Assistants 81
2927
Educational Psychologists 40 -