FINANCIAL ROLES AND RESPONSIBILITIES (PREVIOUSLY FINANCIAL RESPONSIBILITY AND ACCOUNTABILITY)

Transcription

1 The responsibilities of the GOVERNING BODY are to: OVERALL RESPONSIBILITY 1. Assume overall responsibility for the expenditure of the school s delegated budget and other school finances. FINANCIAL REGULATIONS 2. Adopt financial regulations and procedures which set out the duties and responsibilities of all staff in respect of the spending or collection of money and the responsibility for the property of the school. 3. Approve any changes to the regulations and procedures mentioned above. PERSONAL OR PECUNIARY INTERESTS 4. Maintain a register of pecuniary interests in accordance with its policies and to ensure all staff and Governors of the school comply and register. 5. Ensure that no Governor takes part in decision making process relating to any contract agreement in which they have a personal or pecuniary interest, and in the event of such an interest disclosed, the governor to leave the room. CHARGING AND REMISSION 6. Draw up a statement of its policy on charging and remissions and review this policy annually. ANNUAL BUDGET 7. Agree an annual budget timetable set by the Headteacher. 8. Formally adopt the expenditure and income budgets for the financial year. 9. Prescribe the format of the estimates and annual accounts, ensuring that they are consistent with the needs of management information for financial control purposes, and to receive the final accounts from the Headteacher. 10. Approve all virements exceeding 500 (with the exceptions of the splitting of start-of-year budget and the virement of carry forward money from one financial year into the following year s contingency budget). 11. Approve expenditure on any items forming a scheme or project costing in excess of 1000 (the only exception to this being payments for utility services). 12. Approve authorised signatories who may sign official orders. TENDERING 13. Invite a minimum of 3 tenders, either by selective or open tendering, where the estimated value amount of a proposed contract is; 10,000 plus 1% of a school s budget (to include Schools Block, High Needs Funding (ERS and SEN TA funding), EYSFF, Post 16 funding; excluding rent and rates). 1 of 6

2 14. Waive the requirement to go to tender where a decision is taken by the Governing Body to approach Property Services and that option is pursued. UNOFFICIAL FUNDS 15. Open suitable bank account funds and to approve the signatories for such accounts. 16. Appoint an independent auditor to undertake an annual audit. 17. Receive an annual report from the Headteacher on all accounts of unofficial funds. The responsibilities of the FINANCE COMMITTEE are to: FINANCIAL REGULATIONS 1. Comply with and monitor the school s financial regulations. 2. Receive the report of the Headteacher on any breach of the financial regulations, where appropriate. ANNUAL BUDGET 3. Consider in detail estimates of income and expenditure prepared for the forthcoming financial year by the Headteacher and to recommend to the Governing Body an annual budget produced in consultation with the Headteacher that reflects the School Development Plan. 4. Monitor the financial position of the school throughout the year and to report on the current position to the Governing Body. 5. Consider proposals from the Headteacher for the spending or virement of any money held within the budget heading. 6. Receive and consider a financial report from the Headteacher each term which covers all of the annual budget headings. 7. Receive recommendations from the Headteacher as to remedial action that will be taken where it appears that delegated budget holders may have exceeded an approved expenditure budget or realised an income target. INCOME 8. Formally consider and recommend to the Governing Body the policy and charges relating to lettings. 9. Consider all proposals involving the generation of income for the school. EXPENDITURE 10. Approve expenditure on any items forming a scheme or project costing in excess of 1,000 (including nonrecoverable VAT) and less than 10, Obtain a financial assessment of the initial cost and future running costs of any item having financial consequences. 2 of 6

3 12. Approve any expenditure which requires a continuing financial commitment in future years. 13. Consider any price increase on any contract. VIREMENTS 14. Approve the virement of funds between budgets of up to a maximum of 500 on a detail/account code. 15. Receive a report on all completed virements at the meeting following the initiation of such virements. 16. Take to the Governing Body approval proposals for virements specified in the financial regulations of the school. BANK ACCOUNTS 17. Approve the signatories for the School s Imprest Accounts. PROPERTY AND ASSETS 18. Investigate any significant stores discrepancy. 19. Approve the recommendations of the Headteacher for the writing-off of obsolete stores and equipment. 20. Offer guidance to the Headteacher on the disposal of all plant, machinery and equipment. INSURANCE 21. Determine the policy for insurance cover for the school, giving consideration to: Balance of risks, building and contents Loss of revenue Motor-occasional business use by Governors Deterioration of stock Personal accident Governors Personal accidents Pupils Personal accidents Staff TENDERING 22. Invite tenders, either by selective or open tendering, where the estimated value or amount of a proposed contract is: 10,000 plus 1% of a school s budget (to include Schools Block, High Needs Funding (ERS and SEN TA funding), EYSFF, Post 16 funding; excluding rent and rates). Amounts in excess of these upper figures require escalation to the Governing Body. 23. Waive the requirements to go to tender where the Finance Committee is satisfied that there are special circumstances justifying exemption; such exemption being recorded in the minutes. 3 of 6

4 OTHER COMMITTEE 24. Receive reports from the Personnel, Premises and other Committees on their responsibilities that have financial implications. The responsibilities of the HEADTEACHER are to: OVERALL RESPONSIBILITY 1. Ensure the proper administration of all financial affairs and determine the accounting systems, procedures and records necessary to achieve this, subject to the direction of the Governing Body. 2. Approve, and to recommend for approval by Governing Body, any new systems for the maintenance of financial records, or records of assets of the school, or any changes to such systems, following prior consultation through the operational Head of the County Treasurer s Department, Audit Services Unit. 3. Ensure that all staff have a copy of financial regulations and procedures and are made aware of any future changes agreed by the Governing Body. 4. Report cases of suspected fraud, misappropriation of funds, materials or equipment, or other irregularities, immediately to the Governing Body, the assistant County Treasurer (Audit), Services Unit, County Treasurer s Department and to the Area Education Office. 5. Report any breach of financial regulations to Finance Committee, where appropriate. ANNUAL BUDGET 6. Set an annual budget timetable to be agreed by the Governing Body. 7. Assist in preparing estimates of income and expenditure for the forthcoming financial year for consideration in detail by the Finance Committee. 8. Monitor the financial position of the school throughout the year and to prepare a financial report for the Finance Committee each term which covers all of the annual budget headings. 9. Be responsible for the delegations of the authorised budget and to make recommendations to the Finance Committee as to remedial action that will be taken where it appears that delegated budget holders may have exceeded and approved expenditure budget or not realised an income target. 10. Make proposals to the Finance Committee for the virements of funds between budgets of up to maximum of 500 on a detail/account code and to report on all completed virements at the meeting following the initiation of such virements. 11. Make proposals to the Finance Committee for the spending or virement of any money held within the budget as a contingency fund. 12. Split the start-of-year budget, subject to the approval of the governing body, and to vire any carry-forward money from one financial year into the following year s contingency budget. 4 of 6

5 INCOME 13. Undertake an annual review of all income sales, rents and charges and to make appropriate recommendations to the Finance Committee. 14. Write off individual bad debts up to a limit of 10 in each case, and to refer larger sums to the Finance Committee. 15. Grant approval for the sale of goods and services on credit, where appropriate. 16. Ensure the security, collection and banking of income due to the delegated budget. EXPENDITURE 17. Obtain a financial assessment of the initial costs and any future running costs on all items having financial consequences. 18. Ensure all orders shall be on an official order and be signed personally by an approved authorised signatory. 19. Ensure that the school conforms to VAT procedures as issued by the authority. 20. Seek approval of the Finance Committee for the expenditure which requires a continuing financial commitment in future years. 21. Seek the approval of the Governing Body for the expenditure on any items forming a scheme or project costing in excess of 1,000 (the only exception to this being payments for utility services). ACCOUNTS 22. Operate the School s Imprest Account, by not allowing it to become overdrawn. 23. Issue instructions for the operation of any cash floats. 24. Present annually the school s final accounts to the Governing Body in a format as prescribed by the Governors. 25. Maintain accurate financial and banking records of all unofficial funds. 26. Present annually all accounts of unofficial funds, after an independent audit, to the full Governing Body. INSURANCES 27. Effect the insurance cover for the school, having regard to the Finance Committee s Policy. PROPERTY AND ASSETS 28. Issue advice regarding the maintenance of records for stores and inventory items. 5 of 6

6 29. Carry out a stock take of stores at least once a year. 30. Carry out a check of inventory items at least once a year. FINANCIAL ROLES AND RESPONSIBILITIES 31. Dispose of all plant, machinery and equipment under the guidance of the Finance Committee. 32. Ensure all school staff are aware of their responsibility for the proper security of all buildings and other assets under their control. 33. Authorise, where appropriate and reasonable, the personal use of school assets by staff and students. The responsibilities of STAFF are to: FINANCIAL REGULATIONS 1. Ensure that they are familiar with the financial regulations, and the supporting financial procedures, which are provided to all staff who have an involvement in spending or collecting of money or any responsibility for the property of the school. 2. Report cases of suspected fraud, misappropriation of funds, materials or equipment, or any other irregularities, immediately to the Headteacher, the Governing Body, the Assistant County Treasurer (Audit), Audit services Unit, County treasurer s Department and to the Area Educational Office. EXPENDITURE (AUTHORISED BUDGET HOLDERS) 3. Place the orders for routine consumable expenditure to the amount provided in the annual budget allocation. 4. Ensure budget heads are not overspent. 5. Inform the Headteacher where it appears that an approved expenditure budget may be exceeded or an income target not realised. EXPENDITURE (GENERAL) 6. Ensure that no work shall be authorised to be undertaken or goods to be supplied which are to be subject of a contract or other legally binding agreement of value until a document in a form approved by Legal Services is completed and signed by the Contractor. PROPERTY ASSETS 7. Ensure the safe custody of store and inventory items and the maintenance of records in accordance with advice issued by the Headteacher. 8. Notify the Headteacher immediately of any loss, liability or damage which may lead to a claim against the school. 9. Ensure the proper security of all buildings and other assets under their control. 10. Receive proper authority from the Headteacher for the personal use by themselves or students of all school assets. 6 of 6