NEW PRINCIPALS’ TRAININGNEW PRINCIPALS’ TRAINING

Managing School Managing School FinancesFinances

October 2009October 2009

FacilitatorsFacilitators

George BlackamGeorge Blackam

Alan BrannaganAlan Brannagan

Stephen BakerStephen Baker

Learning outcomesLearning outcomesBy the end of the course on financial By the end of the course on financial management, new principals should:management, new principals should:

Have a better appreciation of their roles Have a better appreciation of their roles

and responsibilities in relation to financial and responsibilities in relation to financial

managementmanagement

Understand the budget setting environment including the LMS Common Formula and Centrally held budgets

Understand the necessity for financial Understand the necessity for financial planning and the timescales involvedplanning and the timescales involved

Learning outcomes cont..Learning outcomes cont..

Know where they can get support and Know where they can get support and further helpfurther help

Have an understanding of the 3 year Have an understanding of the 3 year

planning processplanning process

Feel confident about their knowledge of Feel confident about their knowledge of what is involved in financial what is involved in financial managementmanagement

ROLE OF LMSROLE OF LMS

to provide high quality to provide high quality financial planning and financial planning and management management information to meet the information to meet the needs of School needs of School Principals and Boards Principals and Boards of Governors of of Governors of schools.schools.

Role of the GovernorsRole of the Governors

Plan and control use of resourcesPlan and control use of resources

Contain expenditure within approved budgetContain expenditure within approved budget

Manage resources economically, effectively and Manage resources economically, effectively and efficientlyefficiently

Establish proper financial controlsEstablish proper financial controls

Financial management: Financial management: planning, reviewing, planning, reviewing, monitoring and forecastingmonitoring and forecasting

AFFORDABILITYAFFORDABILITY

Principal mustPrincipal must

Keep all governors informed on a regular Keep all governors informed on a regular basisbasis

Have finance on the agenda for each BoG Have finance on the agenda for each BoG meetingmeeting

Work closely with finance committeeWork closely with finance committee

Manage the responsibilities that have Manage the responsibilities that have been delegated to them by the BoGbeen delegated to them by the BoG

““To ensure that schools with similar characteristics To ensure that schools with similar characteristics receive similar levels of funding regardless of the receive similar levels of funding regardless of the area or sector in which they are located.”area or sector in which they are located.”

OBJECTIVE OF COMMON OBJECTIVE OF COMMON FUNDING FORMULA (CFF)FUNDING FORMULA (CFF)

GENERAL SCHOOLS BUDGETGENERAL SCHOOLS BUDGET

Non Delegated

Delegated(Aggregated)

Sources of FundingSources of Funding

Pupils NosPupils Nos Premises FactorPremises Factor Targeting Social NeedTargeting Social Need Small Schools SupportSmall Schools Support Teacher Salary ProtectionTeacher Salary Protection Foundation StageFoundation Stage Primary Principals Release TimePrimary Principals Release Time OthersOthers

Schools Schools delegateddelegated budget is budget is determined by LMS Common determined by LMS Common Formula Funding – DEFormula Funding – DE

MAIN DRIVERSMAIN DRIVERS

AWPUs 2009-2010 (£2,020)AWPUs 2009-2010 (£2,020)

Funding Per CapitaFunding Per Capita

NurseryNursery £3,524£3,524 PrimaryPrimary £2,809£2,809 SecondarySecondary £4,097£4,097 GrammarGrammar £3,641£3,641

CONSULTATIONCONSULTATION

Proposed Factor ChangesProposed Factor Changes

Primary AWPUPrimary AWPU 1.061.06

Closing Date for SubmissionsClosing Date for Submissions

Return to BoardReturn to Board

December 2009December 2009

Return to DEReturn to DE

December 2009December 2009

Teacher Substitution CostsTeacher Substitution Costs Special Educational NeedsSpecial Educational Needs Contingency FundingContingency Funding Curriculum Reserve FundCurriculum Reserve Fund OtherOther

Central FundingCentral Funding

Board Funded Items Board Funded Items (Non Delegated)(Non Delegated)

Capital FundingCapital Funding

Minor Works ( up to £500k)Minor Works ( up to £500k)

-- Apply through Property ServicesApply through Property Services

-- Priority Assessment, eg Health and Priority Assessment, eg Health and Safety Safety

Disability Access FundingDisability Access Funding Virement from LMS Budget (>£15k)Virement from LMS Budget (>£15k)

Sources of Funding contSources of Funding cont

Earmarked FundsEarmarked Funds

Time BoundTime Bound Specific ProjectSpecific Project Delegated BudgetDelegated Budget Tracking expenditureTracking expenditure

External FundsExternal Funds

Heritage Lottery FundingHeritage Lottery Funding

Tesco Charity TrustTesco Charity Trust

Big Lottery FundingBig Lottery Funding

Young RootsYoung Roots

2009/10 FINANCIAL CYCLE PROCESS

OCTOBER

School Forwards census information to DE via C2kand forwards paper copy to SEELB9 October 2009 - Funding for 2010-2011 financial year

OCTOBER

School Forwards census information to DE via C2kand forwards paper copy to SEELB9 October 2009 - Funding for 2010-2011 financial year

NOVEMBER

LMS Send out Staffing List for 2009-2010 financial year

School Reviews, amends and returns

NOVEMBER

LMS Send out Staffing List for 2009-2010 financial year

School Reviews, amends and returns

JANUARY

LMS Validation of Annual Census Data to DE

JANUARY

LMS Validation of Annual Census Data to DEFEBRUARY/MARCHDE Run Common Formula Funding Budget Share

LMS Send out Budget Statement to schools

Issue Financial Information using figures confirmed by school for staffing complement plus an estimation of running costs

Issue additional budget allocations and notes for guidance for completion of budget allocation form and three year plan

School Review projected position Make Amendments, as appropriate

Date for Redundancy April

School completes budget allocation form and three year plan from website - Signs, date and return to Board by required date

FEBRUARY/MARCHDE Run Common Formula Funding Budget Share

LMS Send out Budget Statement to schools

Issue Financial Information using figures confirmed by school for staffing complement plus an estimation of running costs

Issue additional budget allocations and notes for guidance for completion of budget allocation form and three year plan

School Review projected position Make Amendments, as appropriate

Date for Redundancy April

School completes budget allocation form and three year plan from website - Signs, date and return to Board by required date

FEBRUARYDE Run Common Formula Funding Budget Share

LMS Complete final year end projections and complete final checks on staff costs in preparation for issue of staff cost projections and expenditure projections.

FEBRUARYDE Run Common Formula Funding Budget Share

LMS Complete final year end projections and complete final checks on staff costs in preparation for issue of staff cost projections and expenditure projections.

MAY – SEPTEMBER

MAY/JUNELMS Final reports available on ESA reports website

Upload budget allocation onto ESA financial system

AUGUSTLMS Three year plans are signed off by ESA and letters are forwarded to schools

SEPTEMBERESA Contacts schools that have raised financial concerns

MAY – SEPTEMBER

MAY/JUNELMS Final reports available on ESA reports website

Upload budget allocation onto ESA financial system

AUGUSTLMS Three year plans are signed off by ESA and letters are forwarded to schools

SEPTEMBERESA Contacts schools that have raised financial concerns

FINANCIAL PLANNINGFINANCIAL PLANNING

TwoTwo elements that need to be closely elements that need to be closely linked:linked:

– School Development PlanSchool Development Plan– School Financial PlanSchool Financial Plan

FINANCIAL REPORTSFINANCIAL REPORTS

REPORTSREPORTS

Budget and Expenditure ReportBudget and Expenditure Report

Staffing ReportStaffing Report

Detailed Transaction Report (M3)Detailed Transaction Report (M3)

Journal Adjustment Report (M4)Journal Adjustment Report (M4)

Detailed Transaction Report (M20)Detailed Transaction Report (M20)

Budget MonitoringBudget Monitoring

Reports issued monthlyReports issued monthly

Summary and Detail availableSummary and Detail available

Available on WebsiteAvailable on Website

Access from home if desiredAccess from home if desired

Review every monthReview every month

IN YEAR ADJUSTMENTSIN YEAR ADJUSTMENTS

deal with emergenciesdeal with emergencies change of planschange of plans need to keep balanced budgetneed to keep balanced budget

C2k/FMS SYSTEMC2k/FMS SYSTEM

Used in Schools for Used in Schools for

- - Raising Raising ordersorders - - Entering Entering invoicesinvoices --Reconciliation to Board systemReconciliation to Board system

Can generate a range of reports that may supplement Board issued reports

Must be kept up to date and reconciled

ACTIVITY ONEACTIVITY ONE

Report

Readin

g

LUNCHLUNCH

ACTIVITY TWOACTIVITY TWO

PREPARING FOR BUDGET SETTINGPREPARING FOR BUDGET SETTING

What, Why, Where?What, Why, Where?

Activity 3Activity 3

Financial PlanningFinancial Planning

– Budget Allocation FormBudget Allocation Form

– Three Year Financial PlanThree Year Financial Plan

Budget Allocation FormBudget Allocation Form

Total Resources Available 2008-09Total Resources Available 2008-09 Total Projected Spend for 2008-09Total Projected Spend for 2008-09 Projected End Of Year Balance March 2009Projected End Of Year Balance March 2009 Agreed expenditure transferred to Budget Agreed expenditure transferred to Budget

Allocation FormAllocation Form Budget Uploaded onto Financial SystemBudget Uploaded onto Financial System

3 YEAR PLAN3 YEAR PLAN

2 & 32 & 3 -- Amend pupil nos. Amend pupil nos. Increase/Decrease Increase/Decrease

budget by budget by rise/fall in rise/fall in pupils x pupils x per capitaper capita

Expenditure assumed constantExpenditure assumed constant Amend additional expenditure/savings as Amend additional expenditure/savings as

appropriate appropriate Review OutcomeReview Outcome

DE WORKBOOKDE WORKBOOK Requirement from Department of EducationRequirement from Department of Education

Surplus Deficit 5% or £75,000 of delegated Surplus Deficit 5% or £75,000 of delegated budget (whichever is the lesser) budget (whichever is the lesser)

Re- assessment throughout the year by Re- assessment throughout the year by Department of EducationDepartment of Education

School Performance Review GroupSchool Performance Review Group

3 YEAR PLAN3 YEAR PLAN

GreenGreen Achieved within 5% or £75,000 Achieved within 5% or £75,000 whichever the lesser all three years of planwhichever the lesser all three years of plan

YellowYellow Substantially achieved but outside 5% of Substantially achieved but outside 5% of £75,000 limit in any one year (minor £75,000 limit in any one year (minor concerns)concerns)

AmberAmber Significant Concerns. Increasing Significant Concerns. Increasing surplus/deficits – outside limit – query surplus/deficits – outside limit – query

over over figures/pupil nos, Board officers will figures/pupil nos, Board officers will contact contact schoolschool

RedRed Unacceptable outside the limits. Unacceptable outside the limits. Action plan needs to be agreed Action plan needs to be agreed with schoolwith school

NORTHERN IRELAND SUBSTITUTE NORTHERN IRELAND SUBSTITUTE TEACHER (NISTR) REGISTERTEACHER (NISTR) REGISTER

Centralised qualification and criminal record checks Centralised qualification and criminal record checks Integrated TR140 timesheets  Integrated TR140 timesheets  Increased choice – access to regional database of Increased choice – access to regional database of

substitute teachers substitute teachers System matches cover requirements against System matches cover requirements against

teachers on register who are available on dates teachers on register who are available on dates required required

Teachers' calendars updated on confirmation of Teachers' calendars updated on confirmation of bookings bookings

Provides information on previous work experience Provides information on previous work experience and expertise and expertise

No cost to schools - the register is being funded No cost to schools - the register is being funded centrally centrally

PLANNING FOR THE FUTUREPLANNING FOR THE FUTURE

EXPECT THE UNEXPECTEDEXPECT THE UNEXPECTED

What is the future enrolment trend?What is the future enrolment trend?

Has your school any outstanding Has your school any outstanding commitments?commitments?

Are there any options available to Are there any options available to reduce variable costs?reduce variable costs?

POINTS TO CONSIDERPOINTS TO CONSIDER

Is there a strong link between the school Is there a strong link between the school development plan and the financial plan?development plan and the financial plan?

Are you familiar with your school’s budget Are you familiar with your school’s budget setting and monitoring arrangements?setting and monitoring arrangements?

Do proper financial controls exist?Do proper financial controls exist?

QUIZQUIZ

Learning outcomesLearning outcomes

Have a better appreciation of their Have a better appreciation of their

roles and responsibilities in roles and responsibilities in

relation to financial managementrelation to financial management

Understand the budget setting environment including the LMS Common Formula and Centrally held budgets

Understand the necessity for Understand the necessity for financial planning and the financial planning and the timescales involvedtimescales involved

Learning outcomes cont..Learning outcomes cont..

Know where they can get support and Know where they can get support and further helpfurther help

Have an understanding of the 3 year Have an understanding of the 3 year

planning processplanning process

Feel confident about their knowledge of Feel confident about their knowledge of

what is involved in financial what is involved in financial

managementmanagement

Sources of InformationSources of Information

Three Year Financial PlansThree Year Financial Plans Budget Allocation FormsBudget Allocation Forms Budget StatementsBudget Statements Outturn StatementsOutturn Statements Training SlidesTraining Slides

www.seelb.org.ukwww.seelb.org.uk

Monthly Financial ReportsMonthly Financial Reportslms.nielb.comlms.nielb.com

Common Formula Funding SchemeCommon Formula Funding Schemewww.deni.gov.ukwww.deni.gov.uk

C2k/FMS Kathleen Dobbin 028 9027 9029C2k/FMS Kathleen Dobbin 028 9027 9029

LMS CONTACTSLMS CONTACTS

George BlackamGeorge Blackam 028 9056 6337028 9056 6337Alan BrannaganAlan Brannagan 028 9056 6531028 9056 6531Stephen BakerStephen Baker 028 9056 6530028 9056 6530

Nursery and Post PrimaryNursery and Post Primary

Harry CampbellHarry Campbell 028 9056 6406 028 9056 6406

Controlled Primary SchoolsControlled Primary Schools

Fidelma Ward Fidelma Ward 028 9056 6409 028 9056 6409 Ann McQuillanAnn McQuillan

Maintained & Integrated Primary SchoolsMaintained & Integrated Primary Schools

Jacqui WadeJacqui Wade 028 9056 6405028 9056 6405Mark McKaigMark McKaig

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