Management Information Sheet
Cluster Surplus Balances as at 31st March 2012
As we move towards revised arrangements for the governance and administration of clusters, it has been agreed that, with effect from 1st April 2012, each cluster will have its' own cost centre, bank account and Star Accounts datafile. This action is being taken as a direct result of requests from schools to separate the administration of cluster finances from those of the main school revenue accounts, to facilitate improved clarity within the accounting arrangements.
Cluster chair schools will be contacted separately with regard to the new bank accounts and authorised signatories. Further instructions will follow with regard to the cost centres, datafiles and administration arrangements.
This change of cluster administrative arrangements means that the codes currently used within individual school budgets for the identification of cluster receipts and payments will not be required with effect from the 2012/13 financial year.
In light of this removal of the cluster subjective analysis codes, there is the need for schools currently holding any funds that may be cluster balances to identify them prior to 31st March 2012.
You are therefore requested to use the year-end projection template from within the Star Accounts system. This tool can identify balances for the main revenue budget and cluster funds. See attached guidance note for details of how to use the template.
For schools that are not the cluster chair school, any cluster funds that are identified, and that will not be spent before the close of the 2011/12 financial year, must be transferred back to the cluster chair school. You will need to complete a cluster recharges form for this purpose, and a copy of the relevant form is attached.
NB Please check carefully transactions on the cluster codes as any surplus balances that remain on them after the year-end will be recoded automatically to the cluster funds balance.
For cluster chair schools only the cluster surplus balance may be identified and listed on the analysis of balances form. NB The actual surplus balance on the cluster codes at year-end will be transferred centrally to the new cluster cost centre.
Please note that, with effect from 1st April 2012, any cluster funds transferred from the cluster cost centre into individual school budgets will become part of the main school revenue funds. These funds must be spent in the financial year in which they were allocated; they may not be identified separately as part of the analysis of surplus balances mechanism, other than as part of the contingency sum.
This process must be completed by 28th February 2012. If you have any queries about this process, please contact your Finance Support Officer.
NB. We are aware that this change of arrangements for cluster funds will lead to some questions being asked by some schools. Although we will be issuing guidance in due course, we will aim to answer some of the more common queries as soon as possible by issuing a FAQ MI sheet in next week's e-courier. Therefore, please submit any questions you have to efs.fso@norfolk.gov.uk by Wednesday 8th February 2012.
Cluster chair schools will be contacted separately with regard to the new bank accounts and authorised signatories. Further instructions will follow with regard to the cost centres, datafiles and administration arrangements.
This change of cluster administrative arrangements means that the codes currently used within individual school budgets for the identification of cluster receipts and payments will not be required with effect from the 2012/13 financial year.
In light of this removal of the cluster subjective analysis codes, there is the need for schools currently holding any funds that may be cluster balances to identify them prior to 31st March 2012.
You are therefore requested to use the year-end projection template from within the Star Accounts system. This tool can identify balances for the main revenue budget and cluster funds. See attached guidance note for details of how to use the template.
For schools that are not the cluster chair school, any cluster funds that are identified, and that will not be spent before the close of the 2011/12 financial year, must be transferred back to the cluster chair school. You will need to complete a cluster recharges form for this purpose, and a copy of the relevant form is attached.
NB Please check carefully transactions on the cluster codes as any surplus balances that remain on them after the year-end will be recoded automatically to the cluster funds balance.
For cluster chair schools only the cluster surplus balance may be identified and listed on the analysis of balances form. NB The actual surplus balance on the cluster codes at year-end will be transferred centrally to the new cluster cost centre.
Please note that, with effect from 1st April 2012, any cluster funds transferred from the cluster cost centre into individual school budgets will become part of the main school revenue funds. These funds must be spent in the financial year in which they were allocated; they may not be identified separately as part of the analysis of surplus balances mechanism, other than as part of the contingency sum.
This process must be completed by 28th February 2012. If you have any queries about this process, please contact your Finance Support Officer.
NB. We are aware that this change of arrangements for cluster funds will lead to some questions being asked by some schools. Although we will be issuing guidance in due course, we will aim to answer some of the more common queries as soon as possible by issuing a FAQ MI sheet in next week's e-courier. Therefore, please submit any questions you have to efs.fso@norfolk.gov.uk by Wednesday 8th February 2012.