Schools Termly Finance Seminars

1
Schools Termly Finance Seminars

• 5th for Centrally Funded Schools6th November for
  Fully Funded Schools
• Rufus Centre
• Flitwick

2
Agenda

• 9.15 Introduction Kevin Green
• 9.20 Unitary Kevin Green
• 9.30 Monthly Reports Dawn Hill
• 9.35 Energy Certificates Dawn Hill
• 9.40 Internal Audit Roger Willoughby
• 9.55 Payroll /HR Jackie Brame
  QA Vikki Oakes
• 10.30 Coffee
• 10.50 12.15 Workshop Forecast Outturns
• Due Date Friday 5th December 2008
• Dawn Hill Gina Chandler

3
Unitary

• 139 Schools going to Central Beds
• 79 Schools going to Bedford Borough
• Bedford Borough
• Director of Children Services Chris Hilliard
• Assistant DoCS and Chief Education Officer
  Graham Last
• Assistant Director Planning John
  Goldsmith
• Finance Director - Philip Simpkins

4
Unitary

• Central Bedford
• Director of Children Services and Deputy Chief
  Executive Edwina Grant
• Finance Director Clive Heaphy

5
Unitary

• SFAs, Bursary Service and RM helpdesk is being
  split between the two authorities
• May mean a change of SFA/Bursar from April 2009
  for 40-50 of schools
• Seminars in February will be one morning Central
  Beds, one morning for Bedford Borough, with
  invites to relevant Staff

6
Unitary

• Any Schools wishing to move to Fully Funded from
  April 2009 please apply ASAP rather than wait for
  deadline of February 2009.
• Will keep you informed of developments

7
Monthly Reports

• New Format
• Larger print
• Additional detail
• Electronic
• No further paper copy December prints received
  beginning January

8
Energy Certificates

• Letter Property Manager M Winstanley
• Attached spreadsheet listing all buildings that
  require DEC (Display Energy Certificate)
• Applies to all buildings over 1000m2
• Funded from Contingency agreed by School Forum

9
Internal Audit

• Schools Finance Seminars November 2008
• Roger Willoughby
• Audit Manager (Education)
• FMSiS Accredited Assessor
• roger.willoughby_at_bedscc.gov.uk
• 01234 228776

10
Topics

• Fraud Prevention and Governance
• FMSiS 2008-09
• School Audit Visits

11
Fraud Prevention Governance

• Whistleblowing Policy
• maintain independent lines of reporting
• publish in a place where all staff can access it
• For FMSiS take Local Authoritys policy and dont
  alter it!
• Register of Gifts and Hospitality
• transparency of governance and management
• reasonableness of declarations

12
Fraud Prevention Governance

• Register Declaration of Pecuniary Interests
• transparency of governance and management
• renew declarations annually
• any interests which the school may have dealings
  with
• if in doubt DECLARE IT!
• keep old forms in line with guidelines (suggest 3
  yrs plus current)

13
FMSiS 2008-09

• 2008-09 Assessments
• Recent Training at Forest Centre 14th October
• Reminder letter to all schools to start
  scheduling process
• Will be assessed in order of submission
• Possible delays in assessments for post-
  Christmas submissions

14
FMSiS 2008-09

• Confirm submission date with Schools Finance or
  Internal Audit
• Complete G4 and submit electronically
• Arrange to deliver paper/ electronic evidence
  portfolio
• Wait for contact regarding school visit

15
School Audit visits

• School is notified in advance
• Records should be available and organised
• Headteacher should be available for opening/
  closing meetings
• Please dont
• Forget to check that all records are available
• Miss the opening/ closing meetings- they are
  critical
• Use the auditor for emotional counselling (we are
  good, but not that good)

16
School Audit visits

• However the majority of schools are very helpful-
  greatly appreciated
• Helps minimise time spent at the school
• And hence the time spent with Finance staff and
  Headteacher

17
Schools Payroll

• Finance Seminars
• 5th 6th November 2008

18
Integrated SAP HR Payroll

• HR
• Recruitment
• New Starters
• Leavers
• Changes
• Absence
• Pay Awards
• Service Reports
• Pay Points

• Payroll
• Timesheets
• Expenses Claims
• PAYE Tax Codes
• National Insurance
• Maternity
• Payslips

19
Deadlines

• HR
• All changes to be advised as soon as possible.
• Latest date for receipt of authorised paperwork
  is the last working day of the previous month.
• Earlier Christmas, Easter and September deadlines
  will be notified in advance.

• Payroll
• All changes to be advised as soon as possible.
• All authorised timesheets and claims for the
  current month, to be received at County Hall by
  4pm on the 8th of the month.
• Earlier Christmas and Easter deadlines will be
  notified in advance.

20
Forms to use and where to find them

• HR Change forms
• Timesheet and Expenses claim forms
• New Authorised Signatory form
• www.bedfordshire.gov.uk
• Education and Learning
• Information for teachers etc
• Support for Schools
• Log in Heads and Deputies Log in
  Password
• Human Resources form list on left
• then Payroll processing forms ( includes the
  authorised signatory form)
• or Travel and Subsistence rates (which includes
  all forms)

21
Who do I contact?

• HR
• Changes to Personal details
• Salaries
• Allowances
• Deductions
• Grade
• Spinal point
• FTE
• Entitlement
• Absence
• Cost Centre
• E0 number

• Payroll
• PAYE tax codes
• National Insurance
• Maternity
• Overtime payments
• Additional hours
• Expenses claims
• Duplicate payslip (charge)

22
SAP personal numbers

• Employees are allocated a different SAP number
  for each separate employment.
• Each post is linked to an E0 number.
• The E0 number determines how employee costs will
  be assigned within BCCs Financial Reporting
  structure.
• To ensure correct coding of costs the E0 number
  must be identified for all post holder changes.

23
Ms Keen works in a small Bedfordshire village
school

• E01 Teacher post 0.5 FTE
  659999
• E01 Provides sickness cover and is paid 3
  additional hours 659999
• E02 Ad Hoc Supply hours at the school in the
  adjacent village. 634444
• E03 Midday Supervisor post 6 hours per week
  833333
• E04 Cleaner Supervisory role 4 hours per week
  40004355
• E05 Finance Assistant 2 hour per week
  40012222
• E31 Extended Schools Drama Therapist 3 hours per
  week 40025555

24
E0 reporting Basic Pay

• E01 Teachers Basic Pay
• E02 Supply Staff Basic Pay
• E03 Educational Support Staff Basic Pay
• E05 Employees Basic Pay
• E04 Premises Staff Basic Pay
• E07 Other Staff Basic Pay
• E31 Comm. Focused Ext. School Staff-Sup

• GL 5111100
• GL 5111120
• GL 5111140
• GL 5111000
• GL 5111160
• GL 5111190
• GL 5111170

25
Multiple Employments

• Ms Keen was a good example of an employee with
  multiple jobs. Although she has many roles, she
  receives one BACS payment each month, one payslip
  and the Employers National Insurance cost to BCC
  should be apportioned across all her roles.
• But..
• When the Bursar checked the new Payroll report
  she found that all of Ms Keens Employers
  National Insurance was coded to E02. How could
  this have happened!!
• Her first job with BCC was as a supply teacher, a
  casual role working at lots of schools each
  month, with no cost centre attached to the supply
  post. This was still being shown as her primary
  role on her SAP HR master record and so the
  on-cost was being miscoded!
• As soon as this was flagged up with HR they were
  able to change her record to make the Teachers
  role her priority one.

26
Changing the Priority.

• On SAP a change to the priority on a multiple
  record can only be effected from the 1st of the
  following monthotherwise the record will become
  corrupted.
• Journals will be required to correct the previous
  postings in BCCs Financial accounts as priority
  changes cant act retrospectively.
• The journal will appear on your SAP reports at
  the end of the next period.

27
Miscodings

• If Ms Keen completes a claim form with the wrong
  SAP personal number or cost centre for the right
  job, her costs will not appear on the correct E0
  coding on the schools report or within BCCs
  financial records against the correct budget
  codes.
• Line managers when checking staff claim forms,
  should be confident that their staff are
  completing the forms correctly in all respects,
  as once approved for payment and deduction
  against their budget, no additional checking is
  carried out within payroll.
• If a miscoding occurs, managers can contact their
  Payroll Adviser to ask to have the original claim
  amended. SAP will carry out a retrospective
  change.

28
Retrospective Payroll changes

• If a change is effected from an earlier date
  i.e. A regrading or Pay Award from 1st April 2008
  or to correct a cost centre posting.
• SAP will reverse earlier entries and repost
  at the new values.
• These can be identified by looking at the
  For Period and In Period columns on the RHS
  of the draft and final monthly payroll reports.
• For Period Identifies which month the
  entry relates to.
• 200807 identifies period 7 October
  2008
• 200806 identifies period 6
  September 2008
• 200801 identifies period 1 April
  2008
• In Period Identifies which month the entry
  is processed through the payroll
• 200807 identifies period 7 October
  2008
• 200806 identifies period 6
  September 2008
• 200801 identifies period 1 April
  2008

29
Payroll reports

• The draft payroll report will be sent mid month
  15th so that material errors can be identified
  before the BACS is processed. The draft report
  is sent whilst entries are still being made SAP
  to allow schools to review and reply before the
  payroll is finalised.
• The final report will be sent after the payroll
  has been completed and the financial postings
  made 27th.
• We will include the planned date of the draft
  reports in the monthly Schools newsletter.
• If you have any difficulties with the excel type
  reports sent to your school, please contact your
  IT support services.

30
Schools Payroll Report

• For Period Month entry arises in
• In Period Payroll month
• Assignment GL for BCC reporting
• Assignment Description GL description
• Cost Centre Schools Cost Centre
• CC Description Schools name
• Staff Category E0 Category
• Wage Type Describes what is being paid for or
  charged as on-cost.
• Personal Number Employee number for specific
  role.
• ID Number Employees National Insurance Number
• First Name First Name
• Last Name Surname
• FTE Percentage of Full Time worked 100
  Full Time
• Grade Pay scale rate for specific role
• Level Current Spinal point of pay scale
• Debit Cost being charged to school
• Credit Credit being given to school i.e. pay
  adjustment or rent

31
Annual check of Standing Data

• Annually a check is required to be made of SAP
  HR/Payroll Master data held for each school
  employee, as required by Financial Regulations
  for all Schools.
• This ensures that data is set up and maintained
  accurately, and that the risk of over and
  underpayments to employees is reduced.
• Reports for 2008 will be sent in November to all
  schools paid directly by BCC, and Head Teachers
  are responsible for verifying the data and
  communicating to HR any changes that are
  required.
• Schools are responsible for advising HR of all
  changes to their authorised signatories as soon
  as possible, to prevent paperwork being returned
  or held whilst additional information is
  obtained.
• Governors are required to authorise Head
  Teachers signatures, who in turn may delegate
  responsibility for specified HR/Payroll
  transactions to named school officials.
• No employee may authorise their own change or
  claim forms.

32
Employers National Insurance
33
Maternity Pay overview
BCC is able to reclaim 92 of SMP payable to
staff, cost to school is 8 on-costs

• Teachers
• All 52 weeks ordinary maternity leave
• Over 26 weeks service prior to the 15th week
  before EWC, but less than 1 year
• Qualification must earn above NI
  threshold
• six weeks 90 average earnings SMP
• 39 weeks SMP 13 weeks Nil Pay
• No OMP
• Over I years service
• 4 weeks full pay
• 2 weeks 90 actual earnings
• 12 weeks half pay plus SMP
• 21 weeks SMP
• 13 weeks Nil Pay

• Local Government
• All 52 weeks ordinary maternity leave
• Over 26 weeks service prior to the 15th week
  before
• EWC, but less than 1 year
• Qualification must earn above NI
  threshold
• six weeks 90 average earnings SMP
• 39 weeks SMP 13 weeks Nil Pay
• No OMP
• Over I years service
• 6 weeks 90 actual earnings
• 12 weeks half pay plus SMP
• 21 weeks SMP
• 13 weeks Nil Pay

34
JURY SERVICE

• Employee is advised of requirement to attend for
  Jury Service and is sent a loss of earnings form
  by the Courts.
• This form must be sent to HR as soon as
  possible. 
• HR and payroll jointly complete form and return
  to employee to give to Court on first day of Jury
  Service
• On completion of Jury Service, employee informs
  HR of the number of Jury Service days absent from
  work and the appropriate allowance is deducted
  from pay.
• The court will in the meantime send the employee
  a cheque for loss of earnings, together with a
  remittance advice which must be forwarded to
  Payroll by employee via Manager to enable
  deduction to be made as above.

35
Reminders from HR

• NTE forms to be sent in as soon as known employee
  is leaving
• NTE forms required for all fixed term contracts
• EO Codes must be entered on all new starter
  paperwork
• Copy of application form and birth certificate/ID
  required for all new starters

36
A.O.B

• Notification of Claims coded incorrectly.
• Questions

37

• Date of Next Seminar
• 25th February 2009 for Central Bedfordshire
  Schools
• 26th February 2009 for Bedford Borough Schools
• Rufus Centre Flitwick
• 8.45am for coffee, 9.15am start

38

• Workshop Forecast Out-turns
• Dawn Hill Gina Chandler

39
Outturn Workshop

• Why
• Part of schools financial management process
• In Scheme for Financing Schools (section 2.12)
• Links to FMSiS
• Forward planning

40
Outturn Workshop

• When
• November (after reconciliation of October
  figures)
• Deadline Friday 5th December
• Revision up to 6th February
• Good practice part of monthly reconciliation
• LD Schools must submit monthly to SFA

41
Outturn Workshop

• Pre-requisites
• Reconciliation of local system to SAP
  differences identified
• Up to date financial records
• Accurate financial information CFR Consistent
• Good budget working papers in budget file
• Formal Framework to project and report year end
  position use template

42
Outturn Workshop

• Process
• Monthly Monitoring
• Analyse variances
• Forecast

43
Outturn Workshop

• Monthly Monitoring
• Compare budget to actual to date
• Identify variances
• Identify commitments
• Compare to budget working papers

44
Outturn Workshop

• Analyse Variances (Example)
• CFR Actual
• Code Budget to Date Variance
• E24 0 100 -100 0
• E25 8,200 7,600 600 92.7
• E26 2,000 2,200 -200 110.0
• E27 3,150 2,360 790 74.9
• E28 7,538 5,990 1,548 79.5

45
Outturn Workshop

• Analyse Variances (Example)

46
Outturn Workshop

• Forecast Techniques
• Extrapolate
• Divide Income/Expenditure by number of months to
  date (October7) then multiply by 12 to
  extrapolate whole year

47
Outturn Workshop

• Techniques - Extrapolate (Example)
• CFR Actual Cost per Forecast to
• Code Budget to P7 month
  31.03.07
• E12 12,500 10,235 7 1,462 x12
  17,544
• E13 3,000 1,750 250 3,000
• E14 1500 1325 189 2,268
• E15 2,340 1,170 167 2,004

48
Outturn Workshop

• Forecast Techniques
• Profile
• Add together the year to date figure as
  October/November with the budget profile for the
  remaining months

49
Outturn Workshop

• Techniques - Profile (example)
• CFR Actual Profile Forecast
  to
• Code Budget to P7 P 8-12
  31.03.07
• E12 12,500 10,235 2,350 12,585
• E13 3,000 2,000 1,000 3,000
• E14 1,500 1,325 300 1,625
• E15 2,340 1,170 1,170 2,340

50
Outturn Workshop

• Forecast Techniques
• Take year to date and then use zero based
  budgeting
• 4. Use mixture of the above techniques

51
Outturn Workshop

• Pro Forma
• Available from LA website www.schools.bedfordshire
  .gov.uk (Admin services home page /
  Finance/Forms)
• Continue to use schools own
• Back up to proforma RM/SIMS (System print which
  shows year to date spend and current budget)
• Can be system generated - RM

52
Outturn Workshop

• What are we looking for
• Balances potential (deficit) problems
• Viability
• Likely!!
• SFA to enter own predicted forecast for the school

53
Outturn Workshop

• The Template
• Detailed guidance on website written and
  example forecast
• Enter school name and cost centre
• Will feed through to every page
• Cells which contain formula will be protected
• Layout mirrors the new SAP summary print
  Revenue and Capital separate
• Income/credit balances to be entered with a minus
  in front

54
Outturn Workshop

• How to Complete the Template
• Enter the months as appropriate at top of actual
  and forecast columns
• Year to date figures will be at the point you run
  your reports. This may be mid-way through
  November therefore forecast column will be rest
  of November and December to March.
• Year to date figures on the spreadsheet must
  match the YTD figures on your system print
• Current Budget figures must match your system
  print

55
Outturn Workshop

• How to Complete the Template
• The spreadsheet will automatically calculate your
  revenue and capital carry forwards
• Differences between forecast and budget are
  acceptable
• Negative carry forward figure indicates an
  underspend positive an overspend
• A Capital underspend cannot be off-set against a
  revenue overspend schools must apply for a
  licensed deficit.

56
Outturn Workshop

• How to Complete the Template
• Must be signed by the Headteacher but at some
  point presented to the Governors (please indicate
  date of meeting)
• Submit to your School Financial Advisor by Friday
  5th December with system back-up

57

• Question and Answer Session