Exeter Children’s Federation

Financial Scheme

The policies included in this scheme are:

  1. The Finance Policy
  2. The Remissions and Charging Policy
  3. Pre Educational Visit Checklist
  4. The Financial Malpractice Policy
  5. The Governors Expenses Policy
  6. The Lettings Policy
  7. Statement of Internal Control
  8. Best Value Statement

Date Agreed: 1st January 2016

To be reviewed annually: 1st January 2018

Exeter Children’s Federation is committed to promoting and demonstrating the Co-operative Values of:

Honesty

Openess

Social responsibility

Caring for others

Self-help

Self-responsibility

Equity

Equality

Democracy

Solidarity

Exeter Children’s FerderationFinancial Policy

A. AIMS

This document has been adopted by the Federation, as the basis for the administration and management of finances. The aim of the policy is to create a framework within which individual schools, members of staff, Governors and other interested parties, can exercise financial management and stewardship in an efficient and effective way. All schools agree to adhere to the financial scheme under the Management Partnership Agreement.

The Federation is responsible for strategic financial planning that will be deployed to meet the objectives of the Federation. All schools must ensure that they take responsibility to ensure that decisions are not taken that could cause financial deficits for the Federation. Any school that causes a financial liability for the Federation will be held accountable.

B. OVERALL FINANCIAL MANAGEMENT

TheFederation will manage their affairs in accordance with high standards of Public Sector administration, based on a distinct set of values, the fundamental principles of which are;

Openness - an open approach to all interested parties in the disclosure of information, that lends itself to necessary scrutiny.

Honesty – Federation and Governing Bodies have a duty to uphold the law, and to act on all occasions in accordance with the Federation placed in them.

Social Responsibility and accountability - the process whereby individuals are responsible for their actions and decisions at Federation and school level.

Objectivity– In carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards or benefits, decisions will be made on merit.

Integrity - this is best described as both straightforward dealing and completeness.

Leadership – those in leadership should promote and support the above principles by leadership and example, always acting in such a way to preserve public confidence in the Federation and Governing Bodies.

The Governors and School Management will comply with or have regard to:

  • The minimum standards of financial management, as set out in the scheme for Local Management of Schools, which contains Devon County Council Financial Regulations and Instructionsand any documents that supersede, update or revise current guidance.
  • advice and guidance relating to the financial performance of schools arising from the work of OFSTED, Internal Audit, the District Audit Service and other interested parties.
  • the “Best Value” approach, which although not a statutory requirement for Schools, seeks to ensure that, in aiming to raise standards a proper balance is struck between costs (in terms of economy and efficiency) and effectiveness (in terms of performance and the quality) of what they provide. Appendix B provides a short overview of the Best Value framework.

Register of Business Interests

All members of the Federation, including Governing Bodies and school staff has a responsibility to avoid any conflict between their business and personal interests and affairs and interests of the school. A register of business interest will be maintained and be freely available for inspection by governors, staff and parents.

The register will include all business interests such as directorships, share holdings and other appointments of influence within a business or other organization, which may have dealings with the school. The disclosures should also include business interests of relatives and other individuals who may exert influence. The school will ensure that the register is up to date and complete, includes all governors and relevant staff and in this regard, signed and dated.

Financial Malpractice

This school believes that staff should be able to properly raise concerns, in confidence and without prejudice to their personal position. Where appropriate this will include an opportunity to raise concerns outside the line management structure, and an indication of the proper way in which concerns may be raised outside the organization if necessary. The polcy for dealing with concerns can be found as an appendix to this policy.

The following person has been nominated as a contact point for queries of a confidential nature arising from the financial work of the school.

Designated person: Peter Vickery (Chair of Governors)

In cases of concerns or allegations against the Chair of the Governors, Martyn Boxall is the designated person.

Goods and Services for Private Use

The school will avoid practices such as obtaining goods and services that may include an element of private use for Federation, Governors and staff. All Federation, Governors and staff will also avoid accepting excessive hospitality, entertainment, or other services from existing or prospective suppliers.

C. OVERALL FINANCIAL POLICIES

  1. Organisation of Responsibility and Accountability

The responsibilities of each person and the committees involved in finances are defined to avoid duplication or omission of functions and provide a framework of accountability. This framework will be approved by the Federation.

  1. The School Planning Process

All schools will prepare a School Development Plan and these will be discussed at the Leadership Group. The

Leadership Group will make recommendations to the Federation, who will approve the School Development Plan annually. This will set out the aims and objectives of the school within the projected available resources for a period covering at least 3 years.The Local Governing Bodies will monitor the School Development Plans throughout the year.

  1. Budget Management

To allow effective financial management of resources an annual revenue budget will be prepared. This shall be prepared in a timely manner and in sufficient detailto allow regular meaningful budget monitoring and reporting to take place. It shall be consistent with the aims and objectives included within the school's development plan. The Federation will be responsible for producing budget monitors. Headteachers are responsible for ensuring that budgets are not overspend and that funds are allocated in line with the school’s development plan.

  1. Insurance

This will be annually reviewed and the Federation will approve the insurance arrangements, taking account of insurance needs, risks and costs.

  1. Computer Systems

The Federationrecognise the importance of protecting computerised management systems and data held within them and will approve procedures to achieve this objective. Safeguarding procedures will be adopted in line with LEA guidance and appropriate back ups will be taken and stored securely on site and off site.

  1. Purchasing

The Governing Body aims to achieve best value for money from all its purchases and has established procedures for testing the market, placing of orders and paying for goods and services in accordance with financial regulations.

  1. Personnel

The Federation will approve annually policies relating to the payment of honoraria, gratuities and other emoluments. The School will ensure systems are in place to allow all payroll transactions to be processed correctly and only through the Payroll system.

  1. Security of Stocks and Other Property

The Headteacher will ensure procedures exist for the safe custody of cash, the security of other property and for stock control.

  1. Income and Banking Arrangements

Charging and remission policies will be approved annually by the Governing Body. All income and monies due to the school will be correctly accounted for and banked in accordance with procedures set out in financial regulations.

  1. School Funds

The school will ensure that there is a secure and efficient system for the custody and control of donations and voluntary contributions. The funds will be administered on behalf of the governing body and monitored alongside the main school budget.

  1. Governors' Expenses

Payment of expenses (if any) to Governors will be in accordance with the policy agreed annually.

  1. Register of pecuniary interests of Governors and Staff

The Federation and Governing Bodies recognises the importance of maintaining high standards of Public Sector administration and require a register of Pecuniary Interests to be maintained.

D. DETAILED POLICIES and PROCEDURES

1. Organisation of Responsibility and Accountability

(A) Clear Limits of Delegated Authority

The Federation recognises the importance of clearly defining the roles and responsibilities of its Governing Bodies,the Headteacher and other staff. The terms of reference will be reviewed annually by the Federation. In accordance with the school’s needs and priorities as laid out in the School’s Improvement Plan, the following arrangements have been approvedin relation to the School Budget, other external income managed within the context of overall school budget, and Standards Fund allocations: -

In accordance with the school's needs and priorities as laid out in the School's Improvement Plan, the following arrangements have been approved in relation to LEA funds :

The Governors will work with the Leadership Group to decide which services and resources will be allocated within the Federation’s scheme of delegation subject to:

1)any conditions in the Federation's scheme included to protect its legal duties;

2)the budget must be spent only for the purposes of the school.

3)In relation to Standards Funds any conditions appertaining to the grant

The Local Governing Bodies will decide how to spend the remaining budget allocated within the Federation's scheme of delegation subject to:

4)any conditions in the Federation's scheme included to protect its legal duties;

5)the budget must be spent only for the purposes of the school.

6)In relation to Standards Funds any conditions appertaining to the grant

Authority has been delegated from the Governing Body :

a)to the Governing Body to authorise spendingup to the sum of £7,000 or 1% of the budget, on any one order subject to the necessary budget provision being available.

b)to the Governing Body to authorise virementsfrom one budget heading to another up to the sum of £5,000 or 1% of the budget. Any such virements will be recorded and reported for information to the next Governing Body.

c)to the following officers to authorise spendingon any one order up to the sums specified. If any one item exceeds £2500, quotations must be sought in line with the financial standards detailed below(7a). Beyond these levels the approval of the Governorswill be required.

Headteacher£4000 or ½% of budget whichever is greater

Headteacher and Chair of Governors £7000 or 1% of budget whichever is greater

Deputy Headteacher (if Acting HT)£4000 or ½% of budget

whichever is greater

Deputy Headteacher and Chair of Resources£7000 or 1% of budget if Acting Headteacher

d)to the Headteacher to authorise virements*from one budget heading to another up to the sum of £3500 or ½% of budget. Beyond this level the approval of the Governorswill be required. Any such virements will be recorded and reported to the next meeting of the Governing Body.

e)The authorised signatories are as follows ; Alison Carder, Martyn Boxall, Marion Phillips

*the transfer of monies between previously agreed budget headings.

(B) Effective operation of the Finance Function

The Headteacher is responsible to the Governing Body for ensuring the effective operationof the finance function. The Headteacher will ensure that :

(i)the roles of each member of staff are clearly definedand the duties of staff concerned with financial transactions will as far as is practicable be distributed to ensure that key tasks are assigned to separate members of staff and that appropriate systems of internal checkexist;

(ii)Devon County Council Financial Regulations and Instructions are adhered to;

(iii)systems are in place to ensure that financial control is maintained at all times including procedures in the absence of key staff;

(iv)appropriate documentation and records of transactions are maintained to specified standards.

2. The School Planning Process

Despite the uncertainties over future years' budget allocations theFederation recognise the importance of long term planningand require a school development plan covering 3 years to be submitted annually for approval. This will be prepared by the Governors, working in consultation with the Leadership Group. In preparing the budget the headteacher discusses relevant issues with staff and will consider opinions given in producing the proposed budget.

3. Budget Management

The Governorsis responsible for preparing the annual revenue budget in sufficient detail to conform with LEA requirements. The Headteacher must ensure the effective management of the available funds delegated after the Governors deductions. The Local Governing Bodies and Headteachers are responsible for ensuring that total forecast expenditure does not exceed the available funds. To ensure this can be done, the Headteacher will provide regular reports(at least termly) to the Governing Body. As a minimum standard the Governors shall expect to see;

a separate budget monitoring statement for all sources of the funds provided by the LEA. The statement should show a comparison of expenditure to the approved budget. Expenditure should be broken down into those sums actually spent, sums already committed and amounts of expenditure which are planned but to which the school is not yet committed. The statements should show, as accurately as possible, the forecast year end position.

a written report should accompany financial statements providing details of major variations and highlighting areas of uncertainty. The report will also show virements made between budget headings and show the latest forecast pupil numbers and the financial implications of any revised forecasts. In respect of the school budget share reference should also be made to pupil number forecasts and the financial implications of any changes.

It is essential that reports produced are accurate as far as is reasonably possible. The Headteacher is responsible for ensuring that quality controlsare in place so that reports are of a sound standard. The Governors, responsible for the production of financial reports, must ensure they take appropriate steps to guarantee the reliability of the information.

The headteacher will inform the staff of financial issues realting to their duties, and relevant budgetry responsibilities as necessary.

The Headteacher may delegate elements of the budget to staff where this is appropriate. These budget holders must operate within the same objectives and controls as those agreed for the school as a whole. Delegated budget holderswithin the school will be provided with sufficient informationto enable them to perform adequate monitoring and control. Such budget holders are to be accountable to the Headteacher who is responsible for ensuring mechanisms exist to enable such delegated budgets to be monitored. Governors and the Headteacher will periodically review the provision of financial information to ensure that what is provided remains appropriate, particularly in terms of its timing, level of detail and narrative information.

Current delegations * see appendix A

Individual / Authorisation to spend
Executive Head/Headteacher / £4000 or ½% of budget whichever is greater
to the Headteacher to authorise virements*from one budget heading to another up to the sum of £3500 or ½% of budget. Beyond this level the approval of the Finance Committee will be required. Any such virements will be recorded and reported to the next meeting of the Resources Committee of the Governing Body.
Chair of Governors and Finance portfolio Governor / Headteacher and Chair of Governors £7000 or 1% of budget whichever is greater
Head of School/Deputy / To act as a signatory in the absence of the headteacher in all budget lines.
To manage the teaching supply, Professional development, Assessment and Performance Management budget lines
Deputy Headteacher and Chair of Governors -£7000 or 1% of budget if acting Headteacher
Head of SchoolDeputy Headteacher (if Acting HT) £4000 or ½% of budget whichever is greater
Teacher with TLR / to manage the above budget lines in the long term absence of the Head, should the Deputy be carrying out the heads financial management duties.
SENCO / SEN resources budget line and the supply budget for Teaching Assistants to cover 1:1 need
Budget Holders / Individual budgets highlighted in the approved budget plan
The authorised signatories are as follows ; Martyn Boxall, Alison Carder, Marion Phillips
Chair of Governors may only sign in the case of Executive Headteacher’s expenses.
Each coordinator to authorise the spending to the maximum of their own budget

Governors and the Headteacher will periodically review the provision of financial information to ensure that what is provided remains appropriate and timely.

4. Insurance

The Governors will review the insurance needs of the school annually and liaise with the LEA where appropriate to ensure that specific insurance arrangements remain appropriate. Following the approval of the Federation, the Governors will ensure the agreed arrangements are in place.

The Governors will periodically consider whether to insure riskswhich are not covered by an existing policy arranged by the LEA or other voluntary body. The cost of premiums for any additional cover should be met from the School's budget share. The Headteacher will be responsible for ensuring that Federation and Governors are made aware of all new risks and all incidents which may give rise to an insurance claim(e.g. accident, theft, etc.) are reported immediately to the insurers, the Authority or their agent.

5. Computer Systems

The Federation recognise the importance of protecting computerised financial management systems and the data held within them. The Headteacher will ensure that the school is registered in accordance with the Data Protection Act 1984 and delegates this responsibility to the Technician. The Administrator will ensure that effective backup procedures are in place and that all backup disks or tapes are stored securely. A backup set (either tape or diskettes must be held off site in the event of backup sets being damaged in the school.