KEY FINANCIAL TASKS TIMETABLE FOR SCHOOLS 2016/17

Frequency / Timeline / KEY TASK / EMAILED (E) OR HARD COPY (H) TO LA
Monthly /
  • Schools should produce monthly budget monitor reports, including the production of an income and expenditure and /or cost centre report(depending on requirements of school senior management and governors) and trial balance and update their monthly forecast statements. Reports should be used to inform school decisions on spending and make sure it keeps on track to constrain spending within budget by the year-end.
  • Those schools assessed as “high risk” (see below) will be required to make monthly submissions to the Schools Statutory Finance Team
/ The School Finance Team does not require schools to make a submission (unless a High Risk School)
Monthly /
  • Schools must produce a bank reconciliation (“two way”) that reconciles the bank balance as per its month end(last working day) bank statement to the bank balance from the schools system. The reconciliation should be completed within a working week of the month end and signed off by both the Bursar and Headteacher. A hard copy should be retained on file by the school. Schools are encouraged to use online banking to ensure that they can access statement information in a timely manner. A month end reconciliation is the minimum requirement. Schools may wish to undertake reconciliations more frequently within the month if that helps them keep on top of monthly transactions.
  • Those schools assessed as “high risk” (see below) will be required to make monthly submissions to the Schools Statutory Finance Team. The submission should be made electronically.
/ The School Finance Team does not require schools to make a submission (unless a High Risk School)
Monthly /
  • A VAT submittal report should be produced by the Bursar from the schools finance system and signed by the Headteacher. A scanned copyof the signed VAT submittal report should be emailedto Schools Statutory Finance Teamby the end of the 1st week of the next financial month. Submission of the VAT report enables the Council to submit its own monthly VAT claim and reimburse schools for net VAT costs incurred. No hard copy is required by MKC
  • A bank claim report is no longer routinely required by the Schools Statutory Finance Team. Individual queries may be raised with schools which can be investigated as needed by the schools running a full VAT report for the period from FMS.
/ E
Quarterly /
  • A Trial Balance report must be produced from the school finance system and sent by email to the Schools Statutory Finance Team () within one working week of the quarter end. The Council will upload this information into its SAP system and return a report for the school to cross check and also to use for its Three Way Reconciliation.
  • Those schools assessed as “high risk” (see below) will be required to make monthly submissions to the Schools Statutory Finance Team
/ E
Quarterly /
  • A Three Way Reconciliation must be produced by the Bursar / finance staff and signed by the Headteacher. The Three Way Reconciliation ensures there is a reconciliation between i) the bank statement, ii) the schools finance system, and iii) the Council SAP finance system. The excel document containing the Three Way Reconciliation should be sent by email to the Schools Statutory Finance Team, () within two working weeks of the quarter end. There is no need to submit a scanned signed copy. For those schools not in the MKC pooling scheme a copy of the bank statement from the final month of the quarter needs to be sent to the Finance Team.
  • Schools must run FMS reports on unreconciled bank items and scan and attach a copy of these to their Three Way Reconciliation. Alternatively unreconciled items can be individually listed on the three way reconciliation.
  • Those schools assessed as “high risk” (see below) will be required to make monthly submissions to the Schools Statutory Finance Team
/ E
Annually /
  • Voluntary Funds – Accounts must be audited / independently examined and approved by the Governing Body. Notification of funds form, including assurance that the above has been completed, needs to be signed by the Headteacher, scanned and sent by email to the Schools Statutory Finance Team along with the auditor / independent examiner report ().
/ E
January / February /
  • Budget allocations are confirmed to schools by the end of February. Schools should commence budget preparation work (if not already started).
/ N/A
February /
  • Closure of accounts timetable is issued in February. Schools to review and make sure they have a clear understanding of what is required. Training courses are available if needed from the Schools Traded Services Team.
  • Schools should begin preparing for year end, General financial housekeeping should be undertaken - cancelling old orders, investigating old invoices/credit notes and beginning to build up a list of potential debtors and creditors etc. which will need to be input by period 13 as a part of the closure of accounts process. Healthcheck guidance will be issued by the Schools Statutory FinanceTeam in February to remind schools of matters to check. Confirmation is required annually that this has been completed by way of email.
/ Details of what is required as a part of year-end close of accounts pack
E
January /
  • Forecast outturn produced by schools based on Quarter 3 information. To be submitted to the Schools Finance Team by a date to be notified
/ E
March /
  • Schools must have completed and returned their School Financial Value Standard self-assessmentany time from 1 January and no later than 31 March. It must be signed by the school Chair of Governors, after a meeting of the governing body, scanned and submitted to the Schools Statutory Finance Team (). The Traded Services Team offer training courses for those that wish to attend.
/ E
March to May /
  • Schools must follow the detailed timetable for closure of accounts. Queries to be raised with the Schools Statutory Finance Team if needed.

May /
  • Approved school budgets must be submitted by 1st May to the Schools Finance Team () along with the budget profile for the year in line with the Scheme for Financing Schools. The budget approved will need to take into account estimated year end balances which will be formally confirmed during May or June (see below).
  • The submission should be made electronically by the Headteacher, copying in the Chair of Governors, confirming that the budget has been approved by the Governing Body. A signed hard copy must be retained by the school on file but no hard copy is required by MKC.
/ E
May / June /
  • Final year endschool balances are confirmed to schools by MKC.
  • Schools check to make sure that prior year debtors and creditors have been reversed on FMS6 so there are no debtor / creditor balances remaining in the new financial year.

May/June /
  • CFR is conducted and reported in May/June. Guidance will be sent out in advance by the Schools Statutory Finance Team. ITSS provide training courses to assist if needed.
/ E
November /
  • Revised budget plans, approved by the governing body, to be submitted to the Schools Finance Team () by 2ndNovember or e-mail confirmation that a revision is not being submitted as the school continues to forecast that it is “on track” to deliver outturn within its budget plan. When no budget changes are required schools are still be expected to submit updated forecast statements with latest projections of their year-end outturn.Note - After the November revision, budget plans can still be revised and submitted to the LA if there are significant changes.
  • For those schools that have approved a revised budget the submission should be made electronically (excel document) by the Headteacher, copying in the Chair of Governors, confirming that the revised budget has been approved by the Governing Body. A signed hard copy must be retained by the school on file but no hard copy is required by MKC.
/ E

Suspension of quarterly reporting requirements

Where schools are assessed by the Schools Finance Team and/or Internal Audit as “high risk”in terms of financial security or financial management more frequent reporting will be required. Schools will be formally notified individually when this is the case.

In assessing risk the following will be taken into account:

  • Whether a school has a licenced deficit or low levels of forecast reserves
  • Whether school quarterly monitoring or forecast outturn reports flag concerns of lack of budgetary control
  • Whether a school final outturn differs significantly from that anticipated in the December based forecast outturn report
  • Whether a school is persistently late with meeting finance return deadlines and there are serious concerns with the accuracy of submissions
  • Whether a school has had recent Headteacher, Business Manager / Bursar or significant system changes
  • Internal or External Audit report findings.
  • Indications of a substantial anticipated fall in pupil roll

The above is not intended as an exhaustive list but an indication of key factors that will be taken into account in making an assessment of whether or not a school will be required to revert back to more frequent reporting.

Key Financial Tasks Timetable for Schools 2016-17