This section

Financial Policy

This policy has been drafted in line with the Department for Education regulations for Financing Schools.  Practices described arise out of the implementation of Fair Funding employed here since April 1999 under Section 48 of the School Standards and Framework Act 1998, and that it conforms to Contract Standing Orders.

The Governing Body will convene once a term.  The Governing Body will apply the principles of best value to all financial and school dealings: to ensure the most effective, economic and efficient means available.

  • challenge
  • comparison
  • consultation
  • competition

Whistle blowing

The school has a policy on Whistle blowing. The policy can be accessed in the school’s general policy folder.

Organisation of responsibility and accountability

Role of the Governing Body

  1. Responsibility for overall financial management of the school
  2. To ensure the requirements of the scheme and associated guidance     are met
  3. To ratify policies drawn up by the relevant committees
  4. To draw up a best value statement
  5. To ratify and approve the school budget
  6. To approve expenditure on major capital projects
  7. To ensure a register of pecuniary interests is in place and all       governors to provide details on an annual basis

Role of the Finance Governors

  1. To consider and approve a budget upon receipt of the allocation from the EFA for consideration by the main governing body

Role of the Premises Committee

  1. Prepare tenders for capital programmes
  2. Oversee any capital programmes

Financial Responsibility Sub-Committee

  1. To approve appointments of staff and salary reviews
  2. To review salaries of SBM DH & HT
  3. To set and review performance targets for the Headteacher and Deputy Headteacher
  4. Ensure that staff are correctly and fairly appointed

Role of Headteacher

  1. To address Health & Safety Issues as and when they arise
  2. To prepare budget estimates in conjunction with the School Business Manager
  3. To delegate responsibility to budget holders
  4. To ensure that school expenditure reflects priorities in the development plan
  5. To authorise expenditure in line with the budget
  6. To ensure audit reports are implemented
  7. Ensure health and safety training is up to date and implemented

Role of School Business Manager (SBM)

  1. To address Health & Safety Issues as and when they arise
  2. To annually review the staff salaries in line with legislation and make recommendations to the governing body
  3. To ensure contracts and tenders are completed in line with the policy
  4. Review regular maintenance and ensure cyclical maintenance carried out
  5. To sign cheques (two signatures are required on all cheques). 
  6. To advise the Governing body on spending priorities
  7. To implement expenditure in line with the school budget
  8. To prepare budget monitoring reports to be checked by the Responsible Officer​
  9. Orders
    1. to check budgets before sending orders to ensure budgets are not overspent
    2. to process orders
  10. Payments                    
    1. process invoices for prompt payment
    2. keep the accounting records accurate and up to date
  11. Reports
    1. provide required reports electronically to the EFA
    2. prepare monthly payroll
    3. Head or Deputy Head to check all monthly payroll         
  12. Bank Account
    1. the bank account will not  be overdrawn

Role of Teaching and Non-teaching Staff

Budget holders will submit to the Headteacher the requirements for their area of responsibility on an annual basis.  The Finance committee will approve these budgets at the time the budget is set.  Additional funding will need the approval of the Finance Committee before proceeding

Role of the Responsible Officer

  • To visit the academy at least once a term and undertake a series of detailed tests to confirm the operation of the main financial systems.
  • Select 5 employees from the payroll and check salary details back to personnel records to
  • Check 5 amendments to the payroll to ensure that appropriately authorised source documentation exists;
  • Review the final payroll print for one month to ensure it has been appropriately authorised.
  • Select 5 payments made within the term and ensure internal controls are adhered to
  • To check budget monitoring reports giving details of income, expenditure and commitments

Budgets

Budget administration

The budget will be set and approved by the whole governing body when this has been completed by the School Business Manager and approved by the Finance Committee

The allocation of funding is split into three main categories, employees, premises and supplies and services

The responsibilities for budget areas are as follows:

Employee Budgets

  • Salaries                      Headteacher & School Business Manager

Premises

  • Contracts                   Headteacher, Governor with legal expertise & School Business Manager
  • Maintenance            Caretaker, Premises Governor & School Business Manager
  • Capital Items            Premises Governor & Finance Committee
  • Insurance                  Headteacher & School Business Manager

Supplies and Services

  • Co-ordinators                                 Main curriculum subjects
  • Consumables stock                       Assistant Headteachers
  • Office supplies                               School Business Manager
  • Furniture & Equipment                School Business Manager
  • Leasing                                           School Business Manager

The School Budget is linked to the Development Plan, which is drawn up by the Headteacher and School Business Manager.  This is approved annually by the full Governing Body

Internal Financial Control

To ensure financial control designated personnel are authorised by the Chair of Governors

  • Authorised signatures are as per the Authorised Signatory List
  • Separation of duties is clearly established by the authorised signatory list and this is adhered to
  • Official orders placed by individual budget holders are to be recorded in budget holders budget books, ensuring there is sufficient budget available, must be approved and signed by the headteacher before being processed
  • caretaker checks deliveries against orders and  records the goods received on the Z-orders
  • Invoices are coded to the appropriate budget heading and recorded by the School Business Manager.
  • The invoices are authorised by the Deputy Head before processing.
  • cheques are prepared by the School Business Manager
  • all cheques must be signed by 2 authorised signatures
  • Internet banking done by School Business Manager and dual authorisation by Chair of Governors for all invoices over £200
  • Documents relating to finance are kept for a period of six years.
  • All accounting records are all kept in the school office, which is locked when not in use.

Insurance

  • The school insurance is done by Ashley Page Insurance Brokers. Schedules of cover are issued annually
  • Both the premises and the contents are covered under the policy
  • School property such as musical instruments and computers are covered when they are off the premises

Computer Systems

The school is registered in accordance with the Data Protection Act 1984.

  • Finance back-ups are kept on memory stick
  • Back ups are kept on the server

Purchasing

  • Official orders are used for all purchases of goods and services with the exception of utilities, rents, supply agencies, contract cleaning and security services
  • Official orders are ruled off below the last item recorded

Payments

  • All staff are aware that when goods are received they should be signed for by the caretaker.
  • The goods are checked and distributed by the caretaker as soon as possible. 
  • Payment is only made when an original invoice has been received, checked, coded and certified for payment.  Copy invoices can only be paid after rigorous checks have been made
  • Invoices can only be certified by the authorised signatories as per the authorised signatory list
  • When invoices have been paid and authorised they are filed in alphabetical order

Contracts

  • For work more than £1,000 but less £10,000 2 quotes are sought
  • For work over £10,000 and less than £50,000, 3 quotes are sought
  • For work over £50,000 which are governors’ responsibility the contract is put out to tender

Security of stocks and other property

  • The Headteacher, the Deputy Headteacher, the Assistant Headteachers and the Caretaker are the only key holders
  • A loan book is kept for staff to record property taken from the premises
  • All write-offs and disposals of stock and equipment are authorised by the Head Teacher or the Chair of Governors
  • The school safe is kept locked at all times the headteacher and School Business Manager retain the keys

Banking Arrangements

  • Authorised signatories are:
  • The Chair of Governors and School Business Manager
  • Two signatures are required on all cheques
  • Cheques are never pre-signed
  • When not in use, cheque books are securely kept in the locked office
  • Bank statements are received monthly and reconciled with accounting records

Appendix

List of Authorised signatories:

Assistant Head Teacher                             authorising purchase orders

Head Teacher                                             authorising of invoices

Business Manager                                     authorising/signing cheques/Bacs payments

Chair of Directors                                      authorising/signing cheques/Bacs payments

Signed: Rabbi Ebrahimoff

              Head Teacher

Date:       04.01.2017