This document summarises the main changes that it is proposed to make to Norfolk’s Scheme for Financing Schools from April 2001. The changes are in line with recently issued guidance from the dfee. The changes are set out in heavy type. Following consulting with schools the proposals will be submitted to the dfee for approval. The proposed changes need to be with the dfee by the 17 March. Any comments on the proposed changes should therefore be submitted by the 12 March.
Section 1: Introduction
1.5 Delegation of powers to the Headteacher
Section 2: Financial Requirements; Audit
2.1.2 Provision of financial information and reports
Schools are required to provide the authority with financial information.
School Bank Account type A
If a school has all its budget share and earmarked sums paid into its bank account, the following returns will be required: -
Required each month
Required each quarter
4. A summary of actual receipts and payments analysed at subjective code level for its budget A summary of actual receipts and payments for other grant allocations.
5. Cash flow forecasts.
School Bank Account type B
If a school has all but payroll elements of its budget share and earmarked sums paid into its bank account, the following returns will be required:-
Required each month
Required each quarter
School Bank Account type C
If a school uses an imprest style bank account to facilitate local payments and receipts, the following returns will be required: -
Required each month
3. A summary of actual receipts and payments analysed at subjective code level for its budget share. A summary of actual receipts and payments for other grant allocations. An analysis of VAT. This information will be used to generate the monthly imprest reimbursement.
Each month the LEA will provide schools who operate bank account types B and C a list of transactions processed by the LEA and, where applicable, a Budget Control Report(s).
Exception
Schools which the LEA has notified that more regular information is required because of assessed financial concern will be required to submit all returns, appropriate to the bank account type, on a monthly basis.
2.1.4 Control of assets
Each school must maintain an inventory of its moveable non-capital assets, in a form determined by the authority, and setting out the basic authorisation procedures for disposal of assets. However, school may determine their own arrangements for keeping a register of assets worth less than £1,000.
2.3 Submission of budget plans
The LEA will supply schools with all income and expenditure data, which it holds and which is necessary to efficient planning by schools. The LEA will provide a timetable to school stating when such information will be provided.
Budget plans may take full account of estimated deficits/balance in hand at the previous 31 March
2.11 Application of contracts to schools
Although governing bodies are empowered under paragraph 3 of schedule 10 to the School Standards and Framework Act 1998 to enter into contracts, in most cases they do so on behalf of the LEA as maintainer of the school and the owner of the funds in the budget share. Other contracts may be made solely on behalf of the governing body, when the governing body has clear statutory obligations – for example, contracts made by aided or foundation schools for the employment of staff.
2.12 Central funds and earmarking
The LEA cannot make any deduction, in respect of interest costs to the LEA, from payment to schools of devolved specific or special grant.
Section 3: Instalments of the Budget Share: Banking Arrangements.
3.3.1 Interest on late budget share payments
The LEA will add interest to late payments of budget share instalments, where such late payment is the result of a LEA error. The interest rate used will be the same as used in the clawback calculations.
3.5 Bank and building society accounts
If a school opens an external bank account the LEA must, if the school desires, transfer immediately to the account an amount agreed by both school and LEA as the estimated surplus balance held by the LEA in respect of the school’s budget share, on the basis that there is then a subsequent correction when accounts for the relevant year are closed.
3.5.1 Restrictions on accounts
Schools are allowed to have accounts for budget share purposes which are in the name of the school rather than the LEA. Money paid by the LEA and held in such accounts remains LEA property until spent (s.49(5) of the SSAF Act). New account mandates must provide that the LEA is the owner of the funds in the account, that it is entitled to receive statements; and that it can take control of the account if the school’s right to a delegated budget is suspended by the LEA.
Section 4: The Treatment of Surplus and Deficit Balances arising in relation to Budget Shares.
4.9.1 Licensed deficits
If a school has a licensed deficit and the school proposes to spend amounts received by it in respect of Schools Standards Grant on purposes other than reducing the licensed deficit, the LEA will agree to such a proposal, unless, in its view the proposed expenditure is unreasonable in the school’s financial circumstances.
Section 6: The Charging of School Budget Shares.
6.2 Circumstances in which charges may be made to School Budget Shares
Section 8: The Provision of Services and Facilities by the LEA
8.2 Timescales for the provision of services bought back from the LEA using delegated budgets
The term of any arrangement with a school starting on or after 1st April 1999 to buy services or facilities from the LEA shall be limited to a maximum of three years from the inception of the scheme or the date of the agreement, whichever is the later, and periods not exceeding five years for any subsequent agreement relating to the same services. In the case of contracts for the supply of catering services the periods may be up to five years and seven years respectively.
When a service is provided for which expenditure is not retainable centrally by the LEA under the Regulations made under section 46 of the SSAF Act 1998 it will be offered at prices which are intended to generate income which is no less than the cost of providing those services. The total cost of the service will be met by the total income, even if schools are charged differently.
Section 10: Insurance
10.1 Insurance cover
If funds for insurance are delegated to any school, the LEA will require the school to demonstrate that cover relevant to an LEA's insurable interests, under a policy arranged by the governing body meets the minimum standard cover set by the LEA. The LEA will expect a school to have regard to the actual risks, which might reasonably be expected to arise in determining the adequacy of cover at each school.
Section 11: Miscellaneous
11.5 Health and Safety
Under Section 39(s) of SSAF Act 1998 the LEA may issue directions to the Governing Body and Headteacher of a community special or voluntary controlled school on health and safety matters; these directions are enforceable, so far as Governing Bodies are concerned, via S497 of the Education Act 1996 if not complied with.
11.8 Special Educational Needs
Schools shall use their best endeavours in spending the budget share, to secure the special educational needs of their pupils.
11.9 ‘Whistleblowing’
A County Council whistleblowing policy and procedure exists which may be followed by persons working at school or school governors who wish to complain about financial management or financial propriety at the school. Annex G of the scheme contains details of the policy and procedure.
Schools are reminded of the need to release staff to attend child protection case conferences and other related events. The availability of central funding for supply costs in such circumstances is set out in section 15.
The LEA has not produced a school meals policy, however advice in this area is available from the Head of Site Services.
Annex B
Division of Responsibilities between the LEA and Schools for Building and Grounds Maintenance.
The Annex has been brought into line with the decision to delegate capital maintenance following consultation in the Autumn Term
Annex C
Best Value
This Annex has been brought into line with the Audit Commission’s recent advice on best value in schools.
Annex G
Wistleblowing Policy and Procedure
The County Council Whistleblowing policy and procedure have been reproduced in this new Annex G.
NB A full version of the proposed additions, deletions and amendments can be found on the Norfolk County Council web site at www.esinet.norfolk.gov.uk
Please submit any written comments on these proposals by the 12 March, to the Director of Education, FAO Paul Fisher, Education Financial and ICT Services, County Hall, Martineau Lane, Norwich, NR1 2DL (or by email to paul.fisher.edu@norfolk.gov.uk).