NEW PRINCIPALS TRAINING

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NEW PRINCIPALS TRAINING

• Managing School Finances
• October 2007

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Facilitators

• Neil Craig
• Lisa Cross
• George Blackam
• Suzanne Kerr

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Learning outcomesBy 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
• To explain the budget setting environment
  including the LMS Common Formula and Centrally
  held budgets
• Understand the necessity for financial planning
  and the timescales involved

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Learning outcomes cont..

• Provide examples of how to complete 1year/3year
  plans and how to allocate the budget over
  different areas
• Know where they can get support and further help
• Feel confident about their knowledge of what is
  involved in financial management

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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.

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Role of the Governors

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

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Principal must

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

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OBJECTIVE OF COMMON FUNDING FORMULA (CFF)

• To ensure that schools with similar
  characteristics receive similar levels of funding
  regardless of the area or sector in which they
  are located.

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SCHOOL FUNDING
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Sources of Funding
Schools delegated budget is determined by LMS
Common Formula Funding DE MAIN DRIVERS

• Pupils Nos
• Premises Factor
• Targeting Social Need
• Small Schools Support
• Teacher Salary Protection
• Others

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AWPUs 2007-2008 (1,885)

• Funding Per Capita
• Nursery 3,359
• Primary 2,430
• Secondary 3,805
• Grammar 3,391

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CONSULTATION

• Proposed Factor Changes
• Primary AWPU 1.03
• Service Personnel 0.4

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Closing Date for Submissions

• Return to Board
• 30 October 2007
• Return to DE
• 12 November 2007

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Sources of Funding cont

• Earmarked Funds

• Extended Schools Funding
• MAGS 1 AND MAGS 2
• Time Bound
• Specific Project
• Delegated Budget
• Tracking expenditure

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Central Funding

• Board Funded Items
• Teacher Substitution Costs
• Special Educational Needs
• Redundancy
• Contingency Funding
• Curriculum Reserve Fund
• Rates
• Other

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Central Funding cont

• External Funds

• Drug Education Programme

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Capital Funding

• Minor Works ( up to 300k)
• - Apply through Property Services
• - Priority Assessment, eg Health and Safety
• Disability Access Funding
• Virement from LMS Budget (gt15k)

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2008/9 FINANCIAL PLANNING PROCESS
OCTOBER School Forwards census information to DE
via C2k and forwards paper copy to
SEELB Funding for 2008-2009 financial year
NOVEMBER LMS Send out Staffing List for
2008-2009 School Reviews amends and returns
JANUARY LMS Validation of Annual Census Data to
DE
FEBRUARY DE Run Common Formula Funding ? Budget
Share LMS Send out Budget Statement to
schools Issue 1 Year Plan using figures
confirmed by school for staffing complement plus
an estimation of running costs Request three
year plan School Review projected position ?
Make Amendments, as appropriate Date for
Redundancy April School completes one year plan
and three year plan from website Sign, date and
return to Board by required date
FEBRUARY DE Run Common Formula Funding ? Budget
Share LMS
MAY / JUNE LMS Final reports available on LMS
website School Allocate expenditure on budget
allocation form sign, date and return to
LMS LMS Upload budget allocation onto Board
financial system
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FINANCIAL PLANNING

• Two elements that need to be closely linked
• School Development Plan
• School Financial Plan

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Planning the Annual Budget

• One Year Plan
• Total Resources Available 2007- 08
• Total Projected Spend for 2007-08
• Projected End Of Year Balance March 2008
• Amendments Made if appropriate
• Signed by Chairman of BoG and returned
• Agreed expenditure transferred to Budget
  Allocation Form
• Budget Uploaded onto Financial System

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3 YEAR PLAN

• Year 1 - As per Budget Allocation
• 2 3 - Amend pupil nos. Increase/Decrease
  budget by rise/fall in pupils x per
  capita
• Expenditure assumed constant
• Amend additional expenditure/savings as
  appropriate
• Review Outcome

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DE WORKBOOK

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

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3 YEAR PLAN

• Green Achieved within 5 or 75,000 whichever
  the lesser
• Yellow Substantially achieved (minor
  concerns)
• Amber Significant Concerns. Board addressing
  situation
• Red Unacceptable outside the limits. Action
  plan needs to be agreed with school

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Budget Monitoring

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

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REPORTS

• Budget and Expenditure Report
• Staffing Report
• Detailed Transaction Report (M3)
• Journal Adjustment Report (M4)

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IN YEAR ADJUSTMENTS

• deal with emergencies
• change of plans
• need to keep balanced budget

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C2k/FMS SYSTEM

• Used in Schools for
• - Raising orders
• - Entering invoices
• - Reconciliation to Board system

• Can generate a range of reports that may
  supplement Board issued reports
• Must be kept up to date and reconciled

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NORTHERN IRELAND SUBSTITUTE TEACHER (NISTR)
REGISTER

• Centralised qualification and criminal record
  checks
• Integrated TR140 timesheets 
• Increased choice access to regional database of
  substitute teachers
• System matches cover requirements against
  teachers on register who are available on dates
  required
• Teachers' calendars updated on confirmation of
  bookings
• Provides information on previous work experience
  and expertise
• No cost to schools - the register is being funded
  centrally

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ACTIVITY ONE
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ACTIVITY TWOPREPARING FOR BUDGET SETTINGWhat,
Why, Where?
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ACTIVITY THREE
CASE STUDY
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PLANNING FOR THE FUTURE
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EXPECT THE UNEXPECTED

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

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POINTS TO CONSIDER

• 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?
• Do proper financial controls exist?

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Learning outcomes

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

36
Learning outcomes cont..

• Provide practical examples of how to complete
  1year/3year plans and how to allocate the budget
  over different areas
• Know where they can get support and further help
• Feel confident about their knowledge of what is
  involved in financial management

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Sources of Information

• Three Year Financial Plans
• Budget Allocation Forms
• Budget Statements
• Outturn Statements
• www.seelb.org.uk
• Monthly Financial Reports
• lms.nielb.com
• Common Formula Funding Scheme
• www.deni.gov.uk
• C2k/FMS Kathleen Dobbin 028 9027 9029

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Open Forum

• Questions
• Evaluation
• Close

Questions