Financial Services for Schools
USER BULLETIN No. 162
October2014
Tel No: 01992 555753
Fax No: 01992 555727
email :
Included in this Bulletin:
- Introduction
- Universal Infant Free School Meals
- Hertfordshire Catering Ltd – Charges on Account
Financial Systems Helpline
Tel No: 01992 555753
email :
Herts for Learning
01438 845111
Introduction
Please read this bulletin to familiarise yourself with the subjects contained within this document.
The bulletin seeks to introduce changes around catering and guide schools so that they are able to report the schools financial position.
This information follows on from the instructions contained in FMS Bulletin 160 concerning the set up of the new analysis code.
Universal Infant Free School Meals
- From 1st September, schools with KS1 pupilshave to offer a school meal to all infant pupils. To help with the costs involved the DfE have provided funding to schools. Hertfordshire Education Funding Team passed this funding onto schools on a new analysis code through the August central billing system.
Hertfordshire Catering Ltd- Changes to the Trading Statements and Invoices
- Infant Free Meals charges. The charges will be shown separately from the juniorfree meals (previously primary free meals). The invoice cannot show if a child is taking a meal under the new scheme andaccordingly will have received funding from the Universal Infant Free School Meal income or is entitled under the existing system and should have been budgeted for by the school.
- Charge on Account. Up to September 2014, HCL have collected meals income approximately 2 months in arrears. The payment on account section will make a charge based on 13 days average trading for the invoice month. Refund of the previous months charge on account. Each month the previous months average charge on account will be refunded because the actual charges will be known.
A separate invoice will be issued to charge £0.05 per newly eligible infant free school meal. The charge will be based initially on eligibility from figures received by Hertfordshire Catering Ltd from Hertfordshire County Council and not actual meals taken.
Setting Up the Structure
Set Up New Cost Group
It is recommended that schools set up a new Cost Group to amalgamate the Universal Infant Free School Meals Income budget with the meals expenditure
Tools
General Ledger Setup
Card 2 Cost Centres
Highlight All Cost Centres
Click on add new Folder
Enter description: E25ACatering Charges on Account
Save
The new Cost Group will now be at the bottom of your list of Cost Groups. It will slot in below E25 Cost Group once you have save all your work in this area.
Create new Cost Centre E25A001
With the new Cost GroupE25A Universal Infant FSM highlighted
Create a new Cost Centre E25A001
Description Charge on Account FSM
Save and Continue
Create another Cost Centre E25A002
Description Charge on Account Paid Meals
Save
Link the income and expenditure ledger codes to the new Cost Centres.
Tools
General Ledger Setup
Card 6 Cost Centre/Ledger Links
+ to add a new link
Select Cost Centres E25A001 and E25A002 in the top half of the screen
Select Ledger Codes 401200 Catering Contract Costs and 720751 Universal Infant FSM in the bottom half of the screen
Create links
Create a Cost Centre for Income on Account Paid Meals
Highlight Cost Group E25A Universal Infant FSM
+ to add a new Cost Centre
E25A003
Description Income on Account Paid Meals
Save
Link Ledger Code to New Cost Centre
Tools
General Ledger Setup
Card 6 Cost Centre/Ledger Links
+ to add a new link
Select Cost Centre E25A003 in the top half of the screen
Select Ledger Codes 722001 Pupil Meals Income in the bottom half of the screen
Create links
Mock Up of the Invoices
Mock ups of a typical October invoice together with a September trading statement have been recreated below with the addition of a column for notes. Please study the documents and read the bulletin notes below it, where codes and budgets are suggested.
How to process the Trading Statement
Create a cashbook journal
Focus
General Ledger
Manual Journal Processing
+ to add a journal
Select Cash Book – DO NOT choose a Supplier. This is because once you have chosen a Supplier you will not be able to use income codes.
Next
Select the period and enter a narrative i.e. HCL – September 2014
Charges on Account Lines
Line 1 relates to COA for paid pupil meals.
Post as a debit to ledger code 401200/cost centre E25A002/VAT Input 20%
Line 2 shows the COA for the free school meals.
Post as a debit to ledger code 401220/cost centre E25A001/VAT Input 20%
Line 3 is the income collected on account for paid pupil meals.
Post as a credit toledger code 722001/cost centre E25A003
Credit Charges on Account Lines
Line 4 shows the credit of the previous months COA for paid pupil meals.
Post as a credit to ledger code 401200/cost centre E25A002/VAT Input 20%
Line 5 is the credit of the previous months COA for the free school meals.
Post as a credit toledgercode 401220/cost centre E25A001/VAT Input 20%
Line 6 relates to repayment of the income collected on account for paid pupil meals.
Post as a debit to incomeledger code 722001/cost centre E25A003
Actual Meals Taken Lines
Line 7is the cost of theactual paid junior meals.
Post as a debit toledger code 401200/cost centre E25001/VAT Input 20%
Line 8 shows the actual charge for the junior free school meals taken.
Post as a debit to ledger code 401220 and cost centre E25001/VAT Input 20%
Line 9 shows the actual charge for the infant free school meals taken. It includes both newly entitled and those infants already entitled to a free meal.
Post as a debit to ledger code 401220/cost centre E25001/VAT Input 20%
Line 10 relates to actual meals that have been paid for by staff and visitors
Postas a debit to ledger code 401100/cost centre E25001/VAT Input 20%
Line 11 shows the actual charge for the adult duty meals taken in school.
Post as a debit to ledger code 108300/cost centreE25001/VAT Input 20%
Line 12 is credited to the invoice which shows that HCL is collecting the funds for the actual paid junior meals taken from the client account. The two lines net off.
Post asa creditto ledger code 722001/cost centre I09001
Line 13 is credited to the invoice which shows that HCL is collecting the funds for the adult paid meals from the client account. The two lines net off.
Postas a credit to ledger code 722101/cost centre I09001/VAT Output 20%
Lines 10 and 13
.
Posting the Trading Statement/Invoices
Please substitute your own figures, this is an example only
Post the Expenditure from the SeptemberTrading Statement and Matching October Invoice
Add up the total costs against lines 14 and 16 (from the invoice) for a total figure.
Post the individual expenditure lines from the trading statement.
Post the Income from the September Trading Statement and Matching October Invoice
Add up the costs against lines 15 and 17 (from the invoice) for a total figure.
Post the individual lines, please do not net off income and expenditure.
Additional Invoice from Hertfordshire Catering Ltd
From October 2014, schools will receive termly invoices for the costs involved with the additional provision of infant free school meals. The invoice will be based on £0.05 per newly eligible infant FSM (on the same basis as the grant is devolved). The invoices will cover the period Sep 14 to Aug 15 only. The final invoice will be adjusted based on the census information.
Post this invoice as expenditure to code 401220 and cost centre E25001.
Cost Group Report
I suggest that you print a Cost Group Report:
Reports
General Ledger
Transactions
Cost Centre Summary Transactions
Cost Centre Summary by Cost Group
Select the Cost Group E25A Catering Charges on Account
Check that the previous month’s charges on account have reversed correctly. The actual should only show one month’s charges on account.
Notes
- The FSM cost centre will already contain expenditure for free school meals previously charged on HCL invoices. From now on the detail behind the listing will show the Junior FSM and the Infant FSM separately.
- The charge on account area shows the net charge on account on the current month’s invoice, in this example it represents the value of the Free School Meals COA. Remember, the credit on the current months invoice will contra the charge on account from the previous month.
- The new Universal Free School Meals income is shown with the other catering expenditure.
- The year end procedures are still to be established. Further information will be made available nearer the time.
TIP
Keep this document in a handy place to refer back to. The posting of the invoices is complex!
If you have a query concerning the trading statement or invoice, please contact
Hertfordshire Catering Limited.
If you are unsure of any of the above procedures please contact the
Helpline 01992 555753
Or
email :
© Herts for Learning 2014
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