Upgrade2017-18 scenario into financial year 2018-19 and actions to take in respect of changes for 2018-19

  • The first time you log in to HCSS Budgeting after the 2018-19version has beenreleased you will see the screen below with no scenarios showing.You will now be able to upgrade your working copy from 2017-18 into 2018-19.

Actions to complete

  • Enter your anticipated closing balance from 2017-18 into the balance brought forward section. This can be updated up until the accounts close late April 2018.
  • Update your pupil numbers from October 2018 onwards with youranticipated September 2018intake and any other known changes. Do not change the October 2017 column as this will already match your budget share for 2018-19.
  • Check your budget share matches your paper copy and complete an adjustment line if necessary – instructions can be found on page 7of the getting started guidance notes on the EFS website
  • In staffing delete the contracts and members of staff who have left the school prior to 31 March 2018 as they will not have any cost in 2018-19. However if you have staff members leaving at the end of the spring term 2018 they must remain in the plan as they will have a salary cost in April 2018.

Other expenditure

  • Adjustment to inflation amount for GL 3004 in E08

If you have not already undertaken this inflation % change please ensure that you update as follows on GL 3004 (E08).

Update your screen so that it shows 8.8% inflation for 2018-19 and 2019-20; and change the amount to 3.9% for 2020-21; 2021-22 and 2022-23.

Click on the blue Submit button to save the change.

  • Apprenticeship levy

The GL code for the apprenticeship levy is GL 3120 under E08. The charge will be based on 0.5% of basic payroll (not including NI and pension costs), less supply agency costs and it will be necessary to use a separate line to the Past Years Employer Contribution. The inflationary factors should be amended to 0% and calculate each year’s cost based on that year’s payroll total.

Instructions on how to add a new budget line can be found on page 10 of the getting started guidance notes on the EFS website.

  • ESG (Education Services Grant)

The Education Services Grant (ESG) deduction is as per your budget share – GL7696 in I01 – which will need to be added as a minus (-) figure.

  • Rates

If you entered a rates adjustment in 2017-18 in ‘Non Budget Share Income (code GL7696 (I01) you will need to ensure that this has been zeroed out for 2018-19 onwards – check GL7696 (I01).

2018-19 if you have a rates adjustmentrelating to your 2017-18 budget share then you will need to enter a reversing entry to offset this in the ‘Budget Adjustments(I01 Rates) line on the budget share page as a year end schedule will be raised for this amount.

For example: if the rates adjustment is a debit amount you will need to put in credit on the rates adjustment line and if the rates adjustment is a credit you will need to enter a debit on the rates adjustment line.

On the Budget Adjustments (I01Rates) line, click on the drop down at the end of the line and select ‘Show Factors’.

On the next screen again click on the drop down at the end and select ‘Edit’.

Enter the value required to offset the rates adjustment and click save and then exit the screen by clicking the white cross at the top right of the screen.

  • Growing schools

Primary schools andall-through schools that have permanent growth funded through their budget share will be shown in HCSS for the current year only and a manual adjustment will need to be included for future years while this growth is continuing.

On the budget share page, click on the drop down at the end of the AWPU line and select ‘Show Factors’.

The Related Factors screen will open, on the ‘Growing Schools Pupils’ line click on the drop down at the end and select ‘Edit’.

Update with the relevant pupil number for the years the school will be growing and click save.

Note, any temporary funding for ‘bulge’ classes will be made outside the budget share and should be planned for on GL 7697 (I01).

Secondary schools withpermanentgrowth will receive afixed sum that will be made outside of the budget share and should be planned against G/L code 7697(I01).

Reminders

  • Resourced provision

If you have a resourced provision, the2018-19 place funding will be included on the budget share page in HCSS.Please check this against your resourced provision statement – the amount is £6,000 per pupil for 2018-19.

  • Pupil premium

Update your pupil premium funding against GL7694 (I05) – once this information has been confirmed in early April, remembering that this amount will be indicative and subject to amendment during the year.

  • Special schools, education centres, nurseries and resourced provisions

The budget share will only contain theAgreed Pupil Number (APN) funding. Theestimated top up funding will need to be updated in the non-budget share income section,GL7691(I03) for special schools, education centres and resourced provisions and GL 7697 (I01) for nursery schools.

  • Inflation rates

The following inflation rates have been applied to the software.Please discuss with your EFS finance adviser if you need to manually amend any of these lines.

Non pay expenditure – 2%

Non budget share income – 1%

  • Pay award assumptions

Schools have been advised of the assumptions of the 2018-19 pay award in School Communication SC015706, the software has been updated to reflect the current offer and the impact of proposals for the National Living Wages (NLW) on school support staff in future years. This will be adjusted should this change following union consultation. The software has therefore been updated to reflect the following:

In year one, staff at grade D are estimated to receive a 2% uplift in salary, staff at grade C and below are estimated to receive pay increases of between 4.7% and 9.2%.

In year two, the software has been updated to reflect the potential increase in the NLW with all grades estimated to receive a minimum inflationary increase of 2%, it should again be noted that these are only estimates at this stage to allow the software to budget for future years increases as there are still a range of decisions to be made on the 2019-20 pay structure.

Once agreed, the national pay award will then replace these interim arrangements and be applied to Hampshire County Council’s 2017-18 pay scales, and backdated to 1April 2018.

Early indications are that the teachers' pay award will be known very late in the academic year and colleagues in Education Personnel Services will update as soon as further detail emerges, as a result the software has been updated with an estimate of a 2% award across all teacher salaries to assist with budgeting.

Please note that all estimates are for planning purposes only, and actuals are likely to be different.

  • Funding for 2019-20

Whilst no decision has been made for 2019-20 funding as any changes to the 2018-19formula requires approval from Schools Forum, to allow schools to plan for future year’s the software has been update to include an increase in the level of the minimum funding floor to 1% of the schools 2017-18 baseline and an increase in the gains cap to 6% of the 2017-18 baseline.

HCSS Budgeting: Upgrade guidance notes – Page 1 of 5–March 2018