FINANCIAL YEAR END PROCEDURES - Bradford Schools Online



FINANCIAL YEAR END PROCEDURES

2010/11

Version 1 (1st March 2011)

In using this guide schools are asked to note:-

- that it has been set out in date order to assist schools in organising the work, which needs to be completed,

- that changes from the guidance provided in previous years have been highlighted in green,

- that updates to this guidance can be obtained by checking the Latest News & Updates page on Bradford Schools Online and schools are advised to do this regularly.

PRODUCED BY: SCHOOL FUNDING TEAM, EDUCATION BRADFORD

1. INTRODUCTION

3 Changes to the Guidance for 2010/11

This guidance document has been updated and in some parts re-written in order to provide greater clarity on some of the year end processes. In addition, where there are changes from the guidance provided in previous years, these have been highlighted in green.

The document is laid out in chronological order and it hoped that this is helpful to schools. At Appendix 1 there is a check list, which summarises the key year end processes and deadline dates.

If you require clarification of any parts of this document then please contact your nominated officer in the School Funding Team.

1.2. Legal Requirements

The Local Government financial year runs from 1st April to 31st March. The legal year end reporting requirements for schools are the same as in 2009/10.

Through the course of the financial year, the Local Authority’s accounts are kept on a receipts and payments basis i.e. on a cash basis. At the year end, the LA is legally required to produce revenue accounts and a balance sheet. In order to do this, we have to convert the accounts to an income and expenditure basis. This is achieved by taking into account what we owe to creditors (liabilities) and what debtors owe to us (assets).

As required by the provisions within the Scheme for Financing Schools, all schools maintained by the Local Authority i.e. community, voluntary, foundation, community special or foundation special schools must comply with the Local Authority’s requirements for the preparation of the year end accounts.

Please note that both Easter Holiday and Spring Bank Holiday may clash with key deadlines for the processing of year end returns. Due to the legal deadlines for the submission of accounts and requirements for returns to both the Council and the DfE we are unable to move these deadlines.

Schools should ensure that there are appropriate arrangements in place to ensure that all returns are completed on time.

1.3 Light Touch Financial Monitoring

The Light Touch Financial Monitoring Scheme (LTFM or ‘Scorecard’) assigns penalty points where schools do not submit required returns to the School Funding Team by the required deadlines. Schools are reminded that due to the importance of the year end process, under the LTFM Scheme, year end Returns carry significant points for late or incorrect submission.

A copy of the Light Touch Financial Monitoring Protocol can be found here.

2. ACTIVITIES PRIOR TO THE FINANCIAL YEAR END

2.1 Outstanding Orders

During February and March schools should regularly look at the orders outstanding on their system and cancel any orders which are no longer going to be fulfilled or delivered.

If the order has been delivered but no invoice yet received, schools should chase suppliers for invoices to reduce the number of assets and liabilities for schools to process.

2.2. Checking TABS

Schools should undertake thorough checks of the TABS in January, February and March to ensure that all Enabling Account postings and central transactions are correct.

During the year end period TABS will be issued on a regular basis and sent to schools via ANYCOMMS. These should be checked to ensure that all year end transactions including assets and liabilities are correct. Any errors should be brought to the attention of School Funding immediately to enable them to be corrected prior to closedown.

It is imperative that the final TABS, which will go out to schools w/c 2nd May are checked to your school’s CFR Return. Opening and closing balances should match exactly and any discrepancies must be investigated and rectified before your Final CFR Return is submitted to the DfE.

2.3 Extended Schools’ Transactions

Please ensure that all Extended Schools’ income is coded to I16 or I17 and expenditure to E31 or E32, and that the Extended Schools’ final balance is accurate and has been communicated to Governors.

2.4 Journal Transfers

The following instruction applies only to schools using the part-bank reconciliation, as the complete reconciliation system updates CFR automatically, thereby taking into account any journals raised.

Part-bank schools who wish to transfer using journals, including transfers between Revenue and Capital, are asked to make their request to School Funding at the earliest opportunity.

The School Funding Team has a high volume of entries to process at year end and it would be appreciated if journals could be requested before 31st March 2011.

We can only process journals which are requested in writing. This can be either via fax or email. We are unable to action any journals based on a telephone call.

If schools require a journal transfer during the year end process, it should be clearly marked as to whether it is to be input into 2010/11 or 2011/12 financial year.

2.5 Funding Updates

There has been a funding update for Standards Funds in your January payment. The Advances Schedule detailing this information is available on Bradford Schools Online here. Schools should ensure that Local Authority Funding is updated on their systems to prevent any imbalances at year end.

There may also be small amounts of additional Standards Funds in the March payment on or around 22nd March. Schools should ensure that this funding update is input on their systems prior to 31st March and year end closedown (you can access the information via the link above).

2.6 Enabling Account Submission

Schools are advised that best practice is to complete and submit an enabling account covering the period from 1st January to 28th February, during March. This means that schools will only have to reconcile one month - March – as part of the year end process.

Templates for both Part and Full Budget Share schools are available to download from BSO website here.

2.7 External Auditor Requirements

All schools must write to their bank giving authorisation for the Council’s External Auditors (The Audit Commission) to verify information.

This is because the auditors may wish to verify that the figures shown on year end returns agree with the balances held by schools in their bank accounts.

Some banks require up to 2 months notice to process any requests from external auditors and therefore, we would ask all schools to contact their bank prior to year end. It is also important to note that you may need to send your authorisation to a head office or central department, rather than the normal branch.

An example letter template is available to download from Bradford Schools Online or by clicking here.

3. ACTIVITIES WEEK COMMENCING 28 FEBRUARY

3.1 Intended Use of Balances Documentation

Please logon to Bradford Schools Online and download the Intended Use of Balances Return. This Return sets out your school’s position in relation to the DfE 5%/8% excess surplus balances threshold, based on your Quarter 3 Budget Monitoring Return.

You are strongly advised to check the accuracy of your Quarter 3 Monitor to ensure that your predicted carry forward balance is not understated. In particular, we would recommend this for any school forecasting balances above 3.5% (secondary) and 6% (all other schools). In previous years a number of schools have found themselves to be liable to claw back because their final outturn was significantly higher than forecasted at Quarter 3 and exceeded the 5%/8% threshold.

Please note that the Surplus Balances Protocol has changed from previous years for balances at 31st March 2011. You are strongly advised to read this Protocol in full, which can be downloaded from the BSO here.

4. ACTIVITIES BY 31ST MARCH

4.1 Governor Approval for Intended Use of Balance

If you anticipate that your school will exceed the DfE recommended 5%/8% limit for carry forward surpluses, then you will need to ensure that your Governing Body has identified and agreed schemes which will be spent in the 2011/12 financial year. Your Governing Body or Finance Committee will need to have met, agreed and minuted this before 31st March 2011. A description of the scheme, its cost, and a resolution showing governor’s approval is sufficient.

4.2 Submission of Intended Use of Balance Documentation

Where excess unspent surplus balances in excess of 5%/8% are anticipated at March 2011, your school should ensure that the Intended Use of Balances Return is completed detailing the agreed schemes and that all supporting evidence and documentation, such as Governing Body minutes, are submitted to School Funding Team by the 31st March 2011 at the latest.

4.3 Reconcile bank and bring cash up to date.

On 31st March all schools must either

a) log on to your internet banking and download a statement up to 31st March or

b) telephone your bank and ask them to fax you a statement up to 31st March.

In reconciling the bank statement, the SIMS system bank balance must match the bank balance on the bank statement at 31st March. You must ensure that all income and expenditure is entered onto your system from this final bank statement PRIOR to 1st APRIL.

4.4 Bank Account Interest

If your bank interest is paid into your bank on 1st April or later, it should be entered onto your Asset schedule and posted into financial year 2011/12. Do not back post bank interest into old year after 1st April.

5. ACTIVITIES FROM 6th APRIL

5.1 Period 12 TABS available

These TABS will be available through ANYCOMMS on 6th April.

Schools who do not have access to ANYCOMMS should contact School Funding Team during March to arrange alternative delivery or collection of the TABS.

Please note that, due to data protection restrictions, we are not able to send the files by email.

6. ACTIVITIES BY 8th APRIL

6.1 Year End Enabling Account

Friday 8th April is the deadline date for the submission of your Year End (Quarter 4) Enabling Account return to the School Funding Team.

All schools are encouraged to submit their final March return as soon as possible, prior to the deadline if possible.

Within the Year End Enabling Account Return Template there are some further, year end specific, forms for you to complete. As well as the usual enabling account return, you must also complete 7 (part bank schools) or 8 (full bank schools) additional sheets.

• Liabilities – Revenue (see 6.4)

• Liabilities – Capital (see 6.7)

• Receipts in Advance – Revenue (see 6.4)

• Assets and Payments in Advance – Revenue (see 6.5)

• Assets – Capital (see 6.7)

• Internal Assets and Liabilities (see 6.9)

• Liabilities Under Leases (see 6.12 to 6.15)

• Employee Emoluments (see 6.16) – this is only applicable for full bank schools

Schools are reminded that they are required to supply a complete list of all unreconciled transactions for all bank accounts relating to the enabling account. If schools have a high interest or savings account a bank statement at 31st March must be forwarded to School Funding Team.

6.2 Schools who are not Full Budget Share who use the Part Reconciliation

Now that the new style Part Bank reconciliation is being used, please ensure that there is no VAT imbalance at the year end.

If this is unavoidable, you will need to identify and evidence the exact transactions which make up any variance as these records may be inspected by HMRC.

In order to minimise or eliminate the VAT variances at year end, schools should follow the guidance and ensure that the bank statement is reconciled and all transactions input onto SIMS on 31st March.

If you do receive an invoice after 31st March, but it relates to goods or services in the 2010/11 financial year, you must not enter this onto the SIMS system. You should input the invoice as a liability net of VAT (see 6.4).

Please note that if you are unable to identified the nature of a VAT imbalance, School Funding Team will require you to specify which CFR code the difference is to be charged to. Please note that the Revenue carry forward balance will increase/decrease by the value of the adjustment.

6.3 Assets and Liabilities on your Q4 enabling account

Assets and liabilities occur when goods or services are received / rendered in a different financial year from the payment / receipt.

6.4 The definition of a Liability and a Receipt in Advance

If a school has received a delivery of goods or services prior to 31st March 2011 but the invoice has not yet been received, this means that the payment for those goods will be made after 1st April 2011 and the payment will fall into 2011/12 Financial Year. This is a Liability.

If you have received income before 31st March 2011 for an activity which will take place after 1st April 2011, this is a Receipt In Advance. This may include rent for room hire received in advance or parental contributions to a school trip taking place in the summer term.

You should not raise a liability for the following:

• VAT – all goods and services should be recorded on the schedule without VAT

• VAT reimbursements – the March VAT due back to schools in April is not a liability

• Salaries – you should not raise a liability for salaries if there is a full 12 months charge in the accounts

• Commitments – orders which have not been delivered are not liabilities

• Internal Transactions – Catering, maintenance or other items where there is a transaction with the Council should not be included as a liability.

6.5 The definition of an Asset and Payment in Advance

If the school has provided goods or services, e.g. room hire, before 31st March 2011 but has not received payment and is still owed the payment on 1st April 2011, this is an Asset.

If the school has paid a deposit or pre-payment before 31st March 2011, but the school will only receive the goods or service after 1st April 2011, this is a Payment in Advance. For example, the school has paid before the 31st March 2011 a deposit for a trip which is going to happen in the summer term 2011.

6.6 Minimising the number of Assets and Liabilities

In order to reduce the volume of assets and liabilities, schools are advised to ensure that invoices from suppliers are input and up to date on 31st March 2011. Any invoices which need to be raised for income should also be up to date prior to 31st March 2011.

6.7 Capital Assets and Liabilities

Capital should be treated exactly the same as revenue, you should enter assets or liabilities on the appropriate sheet on the year end enabling account template.

If your school has received capital funding from an external source e.g. the Diocese, grant funding or donations, it may be appropriate for these to be treated as a capital liability (receipt in advance). Income from Devolved Formula Capital (DFC) is not an asset (see below).

If your school has had capital building works done, but not yet received the invoice, you should treat these as a liability only where the invoice will be payable to an external organisation. If the invoice will be payable to Bradford Council, it is not a liability.

If your school is part way through a large scale building project you should enter a liability for the amount of work completed. This may require you to make an assessment of the status of a capital programme; how far off completion a building programme is etc e.g. a 5 month building scheme worth £100,000 in total, which is 3 months complete at 31st March, where a bill has not been paid, would accrue liability of £60,000.

6.8 Capital Liabilities – Voluntary Aided Schools

Under Her Majesty’s Revenue and Customs (HMRC) rules, Voluntary Aided Schools are no longer allowed to claim back the VAT on capital expenditure items.

Therefore, if you are a Voluntary Aided school inputting a Capital Liability, please ensure that it includes VAT.

6.9 Internal Assets and Liabilities

Assets or Liabilities which are internal (e.g. to the Council), either revenue or capital, must not be input onto your SIMS system. However, these must still be recorded on the final year end enabling account template. There is a specific sheet on the enabling account return for recording Internal Assets and Liabilities.

Serco / Education Bradford is an external provider, therefore assets and liabilities relating to Serco or Education Bradford should be recorded in the ‘Assets’ and ‘Liabilities’ sheets within the Year End Enabling Account Template. This is also the case with assets and liabilities relating to schools in other local authorities.

6.10 Negative Assets and Liabilities

Assets and Liabilities cannot be input into the year end enabling account template as a negative figure. If you feel that it is necessary for you to input an asset or a liability as a negative figure on any of these sheets, please speak to your School Funding Officer, who will provide advice on individual circumstances.

6.11 Notes on the completion of the Assets and Liability Journal Template

Please note the following:-

On the Journal Template please complete one line only for each CFR heading.

If the amount for that CFR heading is made up of a number of items the school must compile a detailed schedule detailing the individual items and amounts. These documents must be held at the school and available for inspection by the School Funding Team and Internal or External Audit if required.

• Each line must contain a narrative. It is not acceptable to write generic descriptions, such as “Liabilities” or “See schedule in school”.

• For income you must state the source of the income, e.g. grant name or “parental contributions to trip”.

• For expenditure you should state either the supplier or activity, for example on E22 you may put “YPO” or on E12 you may put “Refurbishment of office” as the refurbishment may be made up of many smaller items but be part of the same project.

• The value of the asset or liability should either be the actual charge where known or the best estimate available.

• As stated earlier please do not include VAT.

It is not necessary to introduce individual assets or liabilities where the value is less than £1,000 unless they are deemed to be significant (e.g. for small schools).

The following information must be entered onto the Asset and Liability Journal Template:-

• Prepared by (name)

• Telephone Number

• Value (excluding VAT)

• Description and reference

The values against each financial code will be automatically added to the financial analysis code at the bottom of the journal template.

The SAP financial analysis code to use against the total is:

Sub Code: External Asset B010

Payment in Advance B045

Liabilities B090

Receipts in Advance B120

6.12 Additional information required on Leases

In order to comply with the 1993 Code of Practice on Local Authority Accounting, schools are required to notify the LA of any leases they have. These usually apply to items such as photocopiers, computers etc. Also, following the Chancellor’s Budget Statement in March 2008, all Authorities have had to change the way they complete their year end accounts to comply with International Financial Reporting Standards (IFRS). This includes the way leases are accounted for.

The ‘Liabilities Under Leases’ form included in the Year End Enabling Account Template should be completed and returned to the School Funding Team. The information required is the value of the outstanding lease payments in the primary period of the lease for each contract as at 31st March 2011.

For example, for a 10 year lease taken out on 1st April 2007, with an annual primary rental of £1,500, as at 31st March 2011, the outstanding commitment for lease rentals is £9,000 i.e. 6 years X £1,500.

Specific details are only required of those leases with an annual cost above £1,000 excluding VAT. However, in order to comply with External Audit’s requirements, where a school has a lease under £1,000 or no leases, you must return the form stating either “Nil Return” or “Value Under £1,000”.

When completing the form, please refer to the information submitted in the previous year to ensure that, for any on-going leases, the details submitted are in line with those of 2009/2010.

6.13 Finance Leases

A finance lease is one that substantially transfers all the risks and rewards incidental to ownership. The key words are “substantially” and “all” and the following guidance is provided to assist in identifying finance leases:-.

• The lease transfers ownership of the asset to the lessee at the end of the term.

• At a point in time it is reasonably certain that the lessee can and will decide to purchase the asset for a price that is significantly lower than the fair value at that future time.

• The lease term is for all or at least the major part of the useful economic life of the asset even if title is not transferred at the end.

• At the inception date of the lease the present value of the minimum lease payment amounts to most, if not all of the fair value of the leased asset.

• The leased asset is of such a highly specialised nature that only the lessee can use it due to the excessive additional cost of returning the item or without major modifications.

Through the change to IFRS some Operating Leases may now be classed as Finance Leases.

Schools are not allowed to enter into a “Finance Lease” without Secretary of State’s approval. However, it is recognised that some schools may have inadvertently entered into a finance lease.

In order to check whether this is the case, the Council reviews all new lease documentation. If your school has entered into any new leases from 1st April 2010 onwards, please send copies of any such lease documentation to School Funding Team by 10th June 2011.

6.14 Operating Leases.

All other leases which do not meet the definition shown under the bullet points in 6.13 above are operating leases.

As noted above under finance leases, please send copies of all new lease contracts to School Funding Team by 10th June 2011.

6.15 Queries on Leases

If you have any specific queries relating to leases you should contact Lynsey Simenton, Financial Services, Bradford Council on 01274 434462.

6.16 Employee Emoluments on your Year End Enabling Account Return (Full Bank Schools only; this does not apply to Part Bank Schools)

The Accounts and Audit Regulations 1996 require the disclosure of officers' emoluments within Local Authorities to be included in the consolidated revenue accounts. This relates only to employees whose remuneration is £50,000 or more. The figure should also include employee pension contributions. In order to provide this information, those schools which process their own payroll are required to complete the form included in the Year End Enabling Account Template.

When completing the form, please refer to the information submitted in the previous year to ensure that the current year details are complete and in line with those of 2009/2010.

If your school uses BMDC payroll you do not need to complete the detail of this form. However, in order to comply with audit requirements, please can you sign and return the form indicating on it that you use “BMDC Payroll”.

6.17 Documents to be forwarded to School Funding Team

The completed Year End Enabling Account Template (including Assets and Liabilities) must be emailed to schoolfundingteam@ by 8th April 2011.

The electronic return can be accepted as the authorised submission where the school is able to submit appropriately authorised scans of the original documents inserted into the designated pages as indicated by the spreadsheet tabs. In these circumstances, hard copy originals will only be required if requested by audit or as a result of random checks by School Funding

a) Signed print outs from the Year End Enabling Account Template

• Completed Employee Emoluments Form

• Complete Liabilities Under Lease Form

• Signed Authorisation Form

b) Reports generated from your SIMS system (or other system that you use)

• FULL unreconciled transaction listing report (for all enabling bank accounts) showing all outstanding transactions

c) Other documentation

• Final bank statement (for all bank accounts) at 31st March 2011. This should be all pages of that bank statement, rather than the last sheet with the 31st March balance on it. For example, if your bank statement says “Page 3 of 3” we must see all 3 pages of that bank statement. Please do not send a full bank statement from 1st April.

• Copies of all new lease agreements since 1st April 2010 (required in hard copy).

7. ACTIVITIES WEEK COMMENCING 2nd MAY

7.1 Final TABS available

These TABS will be available through ANYCOMMS.

Schools who do not have access to ANYCOMMS should contact School Funding Team to arrange alternative delivery or collection of the TABS.

Please note that, due to data protection, we are not able to send the files by email.

These TABS will include all Assets and Liabilities submitted on your Year End Enabling Account return. You should enter the Asset and Liability transactions onto your SIMS system as a “Year End Adjustment Reversing Journal”, following the Guidance issued by EBICT.

7.2 Checking your Final TABS

Due to the tight deadlines resulting from the timing of the publication of the final TABS, it is essential for schools to check period 12 and subsequent TABS on a timely basis to ensure that all year end transactions, including assets and liabilities, are correct. This information will be sent via ANYCOMMS. Any errors should be brought to the attention of School Funding Team immediately.

It is imperative that the final TABS, which will go out to schools w/c 2nd May, are checked to your school’s CFR Return. Opening and closing balances should match exactly and any discrepancies must be investigated and rectified before your CFR Return is submitted to the DfE.

7.3 “Capital Balance to Nil” Journal

School Funding Team will input a journal at year end which carries forward your capital balance into the new financial year. This balance will be calculated AFTER all assets and liabilities have been input. You will see this journal on your Final TABS, with the description “Capital Balance to 2011/12”.

This journal “Capital Balance to 2011/12” should not be input onto your SIMS system.

Please ensure that the capital balance transferred on the SAP system is the same as the capital balance on your school FMS6 system. Some schools will recently have received a communication documenting historical differences between the two systems. If the current year end balances are not the same on CFR and SAP, you must investigate and resolve any issues prior to submission of your final CFR return.

8. ACTIVITIES BY 10th JUNE

1. Submittal of your 2010/11 CFR Return

In line with the 2009/2010 CFR submission process, schools should submit their CFR Returns via the COLLECT website. This is the same website that is used to transfer termly census data.

Guidance documents for uploading and submitting the CFR Return on COLLECT can be found on the BSO system under site content Finance - Latest News and Updates.

Please note that Spring Bank Holidays fall in the week preceding the 10th June deadline. Your school may need to make appropriate arrangements in order to meet this deadline.

9. ACTIVITIES BY 22nd JULY

9.1 Final CFR Submission – Paper submission

In addition to the electronic CFR file, which you will send directly to the DfE via COLLECT, schools must submit by 22nd July in the (internal or external) post to School Funding Team a paper copy of the ‘Final CFR Report’, which is signed by the headteacher. Please refer to EBICT’s “CFR Guidance Notes” on how to finalise, export and re-print a CFR report.

Please note that a ‘Proposed CFR Report’ is not acceptable

10. ADDITIONAL ACTIVITIES BY 13th MAY

10.1 VAT Analysis

Information required by Bradford Council’s Principal Taxation Advisor to complete the Council’s VAT Partial Exemption calculation

Details of the requirements outlined below are set out in the guidance document ‘Accounting for the different Categories of VAT’, a copy of which can be found on BSO.

It is your school’s legal obligation to correctly record and account for VAT on your internal financial systems. This includes reporting the value of transactions relating to the different categories of VAT (see tables below). This is important because the VAT treatment of each transaction determines whether the VAT paid out on purchases can be recovered.

|VAT due from April 2010 to March 2011on sales and other outputs |

|Non-Business |Exempt Rate (No |Zero-rated |Lower-rated |Income |Income |

|(outside the |VAT chargeable) |(Chargeable at |(Chargable at |Standard-rated |Standard-rated |

|Scope of VAT)| |0%) |5%) |(Chargable at |(Chargable at |

| | | | |20%) |17.5%) |

|0% |0% |0% |5% |20% |17.5% |

|VAT reclaimed from April 2010 to March 2011 on purchases and other inputs |

|Non-Business |Exempt rate (No |Zero-rated |Lower-rated |Standard-rated |Standard-rated |Standard-rated |

|(outside the |VAT chargeable) |(Chargeable at |(Chargable at |(Chargable at |(Chargable at 15%) |(Chargable at |

|Scope of VAT)| |0%) |5%) |20%) | |17.5%) |

|0% |0% |0% |5% |20% |15% |17.5% |

Essentially VAT can only be reclaimed on purchases which are used in making taxable (i.e. standard rated, lower rated and zero rated) supplies; VAT incurred in making exempt transactions is in principle not recoverable.

However, local authorities are in a special position and can recover VAT paid on exempt services provided that the VAT incurred on related expenditure remains below 5% of all the VAT incurred throughout the Authority (this is known as the Partial Exemption limit). If the 5% figure is exceeded, then all the exempt VAT is lost, not just that which is in excess of the limit. This could cost the authority as much as £2.5 million (with relevant costs recharged to the school’s budget).

The Council’s VAT Partial Exemption calculation is carried out by the Authority’s Principal Taxation Advisor at the end of the tax year (31st March). To facilitate this calculation each school is required to submit the year end information to the School Funding Team by 13th May using the VAT Summary of all categories form. Please note that monthly information is required and completion of the form can begin prior to year end.

N.B. Do not include supplies to other LA schools as all LA schools come under the same VAT registration number.

Schools are also reminded that they must comply with Financial Regulation 11, and liaise with the Authority’s Principal Taxation Advisor on any capital proposals (including bids for external funding and partnership working), thereby ensuring the VAT partial exemption implications for the authority and the school are fully appraised before the project goes ahead.

Income CFR code I08 VAT Analysis

In order to calculate the Authority’s 5% partial exemption the Council has to identify the exempt income relating to all schools. Please complete the VAT I08 Analysis+ for the Council 2010 2011 form and return it to School Funding Team by 13th May 2011.

If you have any queries regarding the above VAT disclosure, please contact the School Funding Team.

10.2 Capital Balances Analysis

A new requirement for the current year end process is for schools to submit to School Funding Team an analysis of the closing capital balance at 31st March 2011. The total capital account balance is made up of the opening balance plus capital income received in the year, less capital expenditure incurred during the year. However, capital funding is received from a variety of sources and is often allocated for specific capital expenditure projects, so it is important at the year end to be able to identify the different source(s) within the closing capital balance.

Schools must ensure that the capital balance recorded on the SAP system agrees to that on their final CFR for the year ended 31st March 2011. In order to do this, you must extract the amount of the ‘Capital Balance to Nil’ entry from the last KSB1 report for 2010/2011 and compare this to your capital closing balance on your final CFR.

Please analyse your closing balance between the categories itemised in the Capital Balances Analysis Form and return the completed form to School Funding Team by 13th May.

If the total capital balance is a negative amount, please provide details of when, and from where, the amount will be funded.

Appendix 1

SUMMARY GUIDE TO YEAR END PROCEDURES 2010/11

The following is a quick check / tick list of the timetable and the key documentation required for the 2010/11 year end process.

|Date |Task |( |

|February / March |Chase up any outstanding invoices for deliveries | |

| |Delete outstanding orders on system which are not going to be delivered | |

| |Chase up any outstanding income due to be received | |

| |Ensure all payroll is correct and chase up any outstanding issues | |

| |Ensure all vote codes are mapped to the CFR report | |

| |Ensure all journal requests are sent to School Funding Team in writing | |

| |Ensure Extended Schools’ income & expenditure are reflected correctly on the SAP system | |

| |Enabling Account Templates for January and February available to download from BSO | |

| |Check Bradford Schools Online (BSO) for funding updates on the Advances Schedule for additional Standards| |

| |Funds / LA funding | |

|w/c 28th February | Intended Use of Balances Return available on BSO | |

| |Year End Guidance 2010/11 published | |

| |Year End Enabling Account Template available to download from BSO | |

|16th March |Additional TABS available via ANYCOMMS | |

|31st March |Obtain bank statement up to 31 March | |

| |Make sure all income is entered onto FMS6 and banked before year end. | |

| |Reconcile all items on bank statement | |

| |Ensure that Governor approval is sought for all IUB schemes prior to 31 March | |

| |Deadline for Submittal of Intended Use of Balance Documents | |

|April |Refer to EBICT Year End Procedure list to move FMS6 into new financial year. | |

|6th April |Period 12 TABS available via ANYCOMMS - school to check all postings are correct. Ensure that SIMS | |

| |system is up to date with all year end journals | |

|8th April |Deadline for Year End Enabling Account to be sent via email to School Funding Team | |

| |Post paper supporting documents to School Funding Team (in pre-printed envelope) | |

|10th April |Deadline for March VAT Submittal (as normal) | |

|22nd – 26th April |Future House closed for Easter | |

|w/c 2nd May |Final TABS available – school to check all postings are correct. Ensure that SIMS system is up to date | |

| |with all year end journals | |

|13th May |Deadline for submission by school of VAT Analysis and Capital Balances Analysis to School Funding Team | |

|10th June |Deadline for Final CFR to be sent to DfE via “COLLECT” website – exact process to be confirmed at the | |

| |beginning of April | |

|22nd July |Deadline for signed paper copy of Final CFR Report and Final Trial Balance to be received by School | |

| |Funding Team. | |

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