Business Manager, in conjunction with the Finance Manager, and then by the Operations Committee Next review date Spring term 2018

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1 Version control Drafted / Amended by Reviewed / Approved by /10/13 Simon Gray, Trust Business Manager /11/13 Simon Gray, Trust Business Manager Finance Officer /11/13 Simon Gray, Trust Business Manager Operations Committee /12/13 Simon Gray, following Autumn term Responsible Board of Directors by Officer review /01/14 Simon Gray, following EFA visit on 11/12 th December 2013 Board of Directors meeting 11 th Feb /10/14 Simon Gray, following revision to financial arrangements in the scheme of delegation Operations Committee 15 th October 2014 and Board of Directors 22 nd October /03/2015 Simon Gray, with review by the Finance Officer, following end of year accounts audit and changes to Trust leadership team Operations Committee 18 th March 2015 and Board of Directors 25 th March /12/2015 Simon Gray, with review by the Finance Manager Operations Committee 11 th December 2015 and Board of Directors 16 th December /01/2016 Simon Gray, with review by the Finance Manager Operations Committee 3 rd February 2016 and Board of Directors 10 th February /02/2017 Simon Gray, with review by the Finance Manager Operations Committee 2 nd February 2017 and Board of Directors 8 th February 2017 To be reviewed Annually as a minimum By Business Manager, in conjunction with the Finance Manager, and then by the Operations Committee Next review date Spring term 2018 East Anglia Schools Trust Finance Policy v Page 1

2 1. GOVERNANCE General 1. The Trust Board of Directors meets twice a term and agrees the dates of all governance and committee meetings in advance for the academic year 3. The school local governing body meets twice a term to review the most recent monthly school financial management reporting 4. The Operations committee meets twice a term to review the most recent monthly Trust financial management reporting 5. This policy should be read in conjunction with the financial framework outlined in the Academies Financial Handbook, to which the Trust must comply The Trust Board of Directors 6. A list of all the Trust Board of Directors and their membership of the Operations committee is in Appendix B and C 7. The Trust Board of Directors approves the annual Trust budget and associated financial policies, e.g. fixed asset, bad debt, tendering, redundant equipment policy The Operations Committee 8. Membership is determined by the Trust Board of Directors and reviewed annually the terms of reference is outlined in Appendix C The School Local Governing Body 9. The school local governing body is responsible for the overall direction of each school within the parameters set by the Trust Board of Directors; it determines the school s spending priorities through a school improvement development plan and evaluates the effectiveness of spending decisions - the terms of reference is outlined in Appendix D 10. The school local governing body monitors the school budget spend vs. forecast and supplies the Operations Committee with monitoring information via. The Trust Business Manager (acting as the Chief Financial Officer, CFO) The Executive Head teacher and Head of School 11. Each school local governing body delegate responsibility for the day-to-day management of the schools to the Executive Head teacher (CEO, acting as the Accounting Officer) or, who in turn delegates to each Head of School 12. The CEO, under guidance from the Trust, ensures compliance with the Academies Financial Handbook 13. The CEO, under guidance from the Trust, ensures that sound systems of internal control are in place The Staff 14. Staff must comply with financial regulations in the Academies Financial Handbook and any school specific requirements 15. Staff are responsible for any budget which is delegated to them to manage Expenditure Limits 16. The inclusion of an item in the approved budget plan gives authority to spend, in principle, subject to the delegated financial authorities for approval outlined in Section 14 and the appendices Orders 17. Quotations are obtained or tenders sought for purchases exceeding the limits detailed in section 8 and in the tendering policy Minutes 18. Minutes are taken at each governing body or committee meeting to record the basis for any decisions made and clearly state the decisions. Draft minutes are circulated to members of the committee within one week of its meeting and are agreed and signed at its next meeting East Angliaf Park Schools Trust Finance Policy v Page 2

3 19. Any declarations of interest should be raised at the start of each meeting, and a register of business interests is kept in the Trust office 2. BUDGETS AND BUDGETARY CONTROL 1. Each School shall have a school improvement development plan including a statement of its educational priorities, and state these in sufficient detail with projected costs, to provide the basis for constructing key areas of delegated or approved expenditure in the overall Trust budget plan 2. The school improvement development plan should be reviewed at least annually by the Head of School, refreshed as appropriate, and is the key means of securing delegated or approved funding from the Trust to support the teaching and learning ambitions and agenda 3. The Trust budget is a detailed statement of the expected resources available to the multi-academy trust and planned use of those resources for the following year 4. The Accounting Officer (CEO) has overall ownership of the budget, and delegates day to day responsibility to the Chief Financial Officer (CFO), who is responsible for preparing and obtaining approval of the budget plan by the Operations Committee and Directors 5. The approved budget must be submitted to the DfE by 31 st July each year, and will incorporate the following elements: - Forecasts of DfE (pupil-led, lump sums, pupil premium) or other grants available Forecasts of other income sources available for the Trust Forecasts of revenue (including staff salary costs) and capital expenditure 6. Comparison of estimated income and expenditure will identify any potential surplus or shortfall in funding. If a shortfall is identified, opportunities to increase income and/or limit planned expenditure will be explored. If a potential surplus is identified, this may be held back in accordance with the Trust Reserves Policy as a contingency or alternatively allocated to areas of need 7. The overall Trust budget will be reviewed and updated by the CFO once per term. This revision will be reported into and reviewed at the Operations Committee, with subsequent reporting to the next Directors meeting for awareness and approval 8. The budget revision will take into account any known changes to projected costs, new sources of income and any efficiency cost savings realised through revised supplier services or other means 9. The CFO, in conjunction with the CEO, is authorised to approve expenditure not already included in the budget plan, subject to the delegated financial authorities for approval outlined in section 14 and the appendices 10. Monthly income and expenditure reports for the Trust will be prepared by the Finance Manager (FM) detailing actual income and expenditure against budget (this will include committed expenditure). The reports should be reviewed and approved by the CFO and reported to the Operations Committee as required 11. Monthly income and expenditure reports will be prepared by the FM or designated person within each school detailing actual income and expenditure for the school against budget, either as delegated or as per the agreed scheme of delegation (this will include committed expenditure). The reports should be reviewed and approved by the Head of School and reported to the local governing body as required 12. Copies of these reports must also be passed to the CFO, enabling the completion of an overall monitoring process and preparation of an overall Trust monthly management report. This will highlight variances in the overall budget, relevant explanations, and any areas of further investigation. In conjunction with the CFO, the CEO will recommend to the Operations Committee, and Board of Directors as necessary, any remedial action East Angliaf Park Schools Trust Finance Policy v Page 3

4 3. ORDERING GOODS AND SERVICES - GENERAL 1. Official orders shall be issued for all work, goods and services except for such items as recurring charges, periodic payments and utility payments, and any other exceptions as approved by the Directors 2. Orders should be made out in advance of the supply of goods and services 3. No expenditure is permitted without the appropriate financial authorisation outlined in Section 14 and the appendices. The Head of School may delegate day to day authorisation for the expenditure within his/her level of authority to other designated budget holders as appropriate 4. The Trust demonstrates value for money through competitive tendering when appropriate or by using ESPO or other DfE approved purchasing companies and arrangements 5. Two quotations will be obtained for all purchases between 1,000 and 4,999, and three quotations for all purchases exceeding 5,000 in line with and subject to complying with the general principles outlined in the Trust tendering policy. These will then be referred for approval depending on value as outlined in Section 14 and the appendices 6. The Trust must seek and obtain prior written approval from the Secretary of State, via. the EFA, for the following leasing transactions: - Taking up a finance lease on any class of asset for any duration from another party, as this would represent borrowing Taking up a leasehold or tenancy agreement on land and buildings from another party for a lease term of more than five years Granting a leasehold interest, including a tenancy agreement, on land or buildings to another party, pursuant to the obligations on the academy Trust in the Academies Act The Trust may take out and grant other types of lease without the Secretary of State s approval, which for the avoidance of doubt includes operating leases on assets that are not land or buildings 8. Each order placed will be entered in the schools financial system as a commitment by the FM or designated person within each school, who will also be responsible for ensuring the relevant budgets are charged with any associated costs 9. All invoices will be paid by the FM or designated person within each school from the appropriate School or Trust bank account 10. Expenditure against relevant budgets will be monitored by the FM / designated person within each school in the first instance, by the Heads of School / CFO in the second instance and finally the Local Governing Bodies and Operations Committee (see 2.10 & 2.11) 11. Business credit cards are issued to key budget holders subject to spending limits approved by the CEO and should be used in accordance with signed guidelines and relevant financial authorisation levels in all cases. In the case of those issued to each school for the purpose of purchasing delegated catering or other provisions and classroom equipment (e.g. after school club see section 3C), the Head of School is responsible for ensuring the cards are used for all such purchases, up to the appropriate expenditure limit. No reimbursement for cash purchases will be made 12. Orders shall not be artificially split to evade authority limits 13. Individuals will not use official orders to obtain goods or services for themselves 4. PAYING INVOICES AND ACCOUNTS 1. Goods should be received by the school admin office against any delivery note and the original order, and signed to confirm receipt. When an invoice is received, a check should be made to ensure that: - East Angliaf Park Schools Trust Finance Policy v Page 4

5 a) The goods which have been supplied or the services rendered are of satisfactory quality and correct quantity b) The goods and services have not been previously paid for c) They are in accordance with the contract price or estimate if appropriate 2. Invoices should not be paid in advance of the satisfactory supply of goods or services other than in exceptional circumstances. Exceptions from this requirement are subject to approval by the CFO in conjunction with the CEO 3. If satisfied that the invoice is correct the FM or designated person within each school should record all the details in the schools finance system and process the payment as appropriate 4. All invoices will be paid by the FM or designated person within each school from the appropriate School or Trust bank account 5. Any queries about the invoice should be raised with the company concerned by the FM or designated person within each school. If agreement cannot be reached, the matter should be referred to the CFO in conjunction with the CEO 6. The following duties must be appropriately segregated to comply with auditing guidelines: i) Ordering of goods and services 7. Authorising purchase orders ii) Initialling/signing for receipt of goods and services iii) Authorising invoices for payment 8. The person authorising an invoice for payment is indicating that: - i) The goods and services to which the invoice relates have been received or carried out satisfactorily ii) The prices, calculations, discounts, credits and VAT are correct iii) The expenditure has been properly incurred, and is within the relevant estimated provision 9. The process of authorising invoices is as follows: - 1 st authorisation FM or designated person within each school, who should input the data 2 nd authorisation - Head of School / Facilities Manager / CFO 3 rd authorisation - For invoices in excess of 10,000 three signatures are required on cheques so a third authorisation is required 10. Invoices will be stamped with the official stamp which is to be completed by two separate individuals. Invoices will be filed in alphabetical order 11. No payments will be made through the school s finance system for any personal or private purchase 12. Each cheque is signed by at least two authorised signatories, are crossed account payee and are not pre-signed (see Section 14 and the appendices) 5. FINANCIAL CONTROLS 1. The Executive Headteacher and the CFO has due regard to separation of duties in organising financial roles. At least two people are involved in the completion of tasks to ensure one acts as a check on the work of the other 2. The Trust maintains proper accounting records. All transactions can be traced from accounting records to prime vouchers and all prime vouchers are traceable in the accounting records. The use of correcting fluid is not allowed. Any alterations to original documents are clearly made in ink and initialled to identify the person making the alteration 3. All records are securely stored and access allowed to authorised staff, i.e. Current year financial records are kept in secure filing cabinets in the office Financial records for previous years are kept in a secured cupboard in the staff only area East Angliaf Park Schools Trust Finance Policy v Page 5

6 4. Where there is a requirement to account separately for earmarked funding the FM / designated person within each school, in conjunction with each Head of School and ultimately the CFO, will ensure this is done and that money is spent on its intended purpose 5. The Trust must seek the Secretary of State s approval for both short-term borrowing (including use of overdraft facilities) and medium/longer term loans (including finance leases), where such borrowing is to be repaid from grant monies or secured on assets funded by grant monies and it should be noted that permission will not normally be granted at interest rates above those available to central government 6. The Trust must ensure that no trustee, governor, employee or related individual or organisation gains from their position by receiving payment under terms that are preferential to those that would be offered to an individual or organisation with no connection to the Trust 7. The Trust must pay no more than cost for goods or services provided to it by the following persons, subject to a de minimis threshold of 2,500: - Any member, trustee or governor of the Trust Any individual or organisation connected to a member, trustee or governor of the Trust 8. The Trust must notify the Secretary of State, via. the EFA, of any instances of fraud or theft, whether by employees, trustees or governors, where the value exceeds 5,000, or where it is regarded as unusual or systematic 9. The Trust may write off bad debts and losses, including any uncollected fines, subject to the delegated limits set out in the Academies Financial Handbook below: - 1% of total annual (grant) income or 45,000 (whichever is smaller) per single transaction Cumulatively, 2.5% of total annual income in any one financial year per category of transaction if timely, unqualified returns have not been submitted for the previous two financial years Cumulatively, 5% of total annual income in any one financial year per category of transaction if timely, unqualified financial returns have been submitted for the previous two financial years 6. INCOME AND BANKING 1. All income collected by the School will be banked into the School bank account 2. Cliff Park Junior school currently banks with Lloyds. The bank account name is East Anglia Schools Trust t/a Cliff Park Junior School and the bank account number is Cliff Park Infant school currently banks with Lloyds. The bank account t name is East Anglia Schools Trust t/a Cliff Park Infant School and the bank account number is The Trust currently banks with Lloyds. The bank account name is East Anglia Schools Trust and the bank account number is Paying in slips will show the analysis between cash and cheques and cheques are individually listed 6. Two employees will be present to verify all totals before they are to be presented to the Bank, and two signatures will be obtained 7. Where the Authority has arranged for a security firm to collect deposits a receipt should be obtained and retained for the current year plus six previous years. The Security Firm s receipt must be attached to the paying in slip and stored securely 8. All income shall be recorded at the point of receipt by either the FM or designated person within each school, in a form approved by the FM in conjunction with the CFO 9. Official pre-numbered receipts should be given for all cash collected over 25, or if requested, except where a collection record card is issued to a pupil for instalment payment for a school trip. Other formal documentation should be kept for other income. Receipts should be kept securely and in order East Angliaf Park Schools Trust Finance Policy v Page 6

7 10. All instances where differences in cash received to recorded are observed must be noted. All discrepancies over 5 should be investigated as a matter of course, with any recurring or frequent differences also looked into 11. Where a cheque is accepted as payment it should preferably have the individual name and address on the back. Bank card details should be obtained wherever possible 12. Under no circumstances shall personal cheques be cashed from income 13. Income recorded in the accounts will be reconciled monthly by the FM or designated person within each school, with the bank statement, with any discrepancies resolved 14. The reconciliation statement should be signed by the FM or designated person within each school, and reviewed and counter-signed by the Head of School or CFO for the Trust 15. Wherever possible, income due will be collected before or at the time the relevant sale or service is provided, but where this is not possible an invoice will be raised within 30 days for immediate payment (see section 14 for authority levels) 16. All booking forms for lettings must be authorised by the CFO or designated person within each school on a regular basis and invoices raised one month in arrears following a retrospective sense-check that planned bookings took place 17. The FM or designated person within each school will send a first reminder for any unpaid invoice after 3 weeks, a second after 6 weeks and a final reminder after 9 weeks. Legal action is considered if a further 14 days lapse and the debtor will be informed of this in writing. In the case of parental debts for clubs and music fees a reminder will be sent once the period for which payment is required has elapsed, and further action with consideration to write off will be made in accordance with the Bad Debt policy. 18. Debts are written off only in accordance with the schools bad debt policy and in line with the authority levels in section All cheques are crossed account payee. Cheque books are stored securely when not in use 7. STAFFING AND SALARIES 1. All salaries, wage, expenses and other taxable allowances must be paid and processed centrally through the Trust bank account by direct BACS transfer or by cheque. Payments by cash will not be made 2. All staff appointments, increases to working hours, salary grades and/or other terms and conditions must be referred for approval in conjunction with the Scheme of Delegation, with further approval by the Trust board of Directors as deemed necessary 3. Once approved, the Head of School should authorise all documents relating to appointments, resignations, absence, or changes to pay, which should then be passed to the CFO who will notify the external payroll provider 4. In addition, the following documents should be obtained from a new member of staff: - HMRC new starter checklist and P45 when available Bank details form Pre-employment health assessment questionnaire Right to work in the UK form Evidence of date of birth and National Insurance number 5. Documents relating to appointments, resignations or absence of Heads of School shall be authorised by the Directors 6. The Trust HR and Admin Manager or designated person within each school, is responsible for ensuring that all necessary DBS checks are carried out for all new employees, and each school is responsible for ensuring the single central record is updated 7. The sourcing and appointment of all teaching supply staff should always be made through an appropriate supply agency, and made in accordance with the delegated authorities outlined Section 14 and the appendices. If consideration is given to using Local Authority supply they must be recently assessed qualified teachers East Angliaf Park Schools Trust Finance Policy v Page 7

8 8. Claim forms submitted as the basis for additional, out of hours or casual work should be completed and signed by the member of staff, approved by the respective line manager within the school, collated by an appointed person within the school office, and then passed to the CFO who will notify the external payroll provider 9. A summary of all staff absences and illness should be recorded monthly, approved by the Head of School, collated by an appointed person within the school office, and then passed to the CFO, who will notify the external payroll provider. All periods of sickness should be covered by either a self-certification form (first 7 days) or a doctor s certificate. A medical certificate is required for all absences exceeding 7 days. A return to work meeting should be completed in accordance with the Trust sickness absence and return to work discussion form 10. After receipt of each month s draft payroll reports and payslips the CFO will check and confirm approval to the external payroll provider and arrange authorisation in accordance with the levels outlined in section 14, resolving any issues or discrepancies as necessary 8. CONTRACTS AND TENDERING 1. For the purpose of section, the definition of a contract shall be any signed agreement for the provision of goods and/or services over a period of time 2. Under normal circumstances the Trust will award the contract to the supplier quoting the lowest price. However, there may be times when the lowest price should not be accepted, and any reasons for accepting a higher quote should be reported to the Operations Committee, and be recorded 3. Any contracts shall be in writing, and shall be referred to the Operations Committee and/or Directors subject to the authorisation levels outlined in Section 14 and the appendices, before any binding agreement is made 4. All contracts shall contain relevant information in line with the following guidelines:- a) Specify the contract objectives and duration, services provided and quality/quantity standards, value and payment arrangements, management information and evaluation requirements, procedure for disputes b) Contain a clause permitting cancellation in circumstances of corruption or failure to meet contractual terms c) Require compliance with any British Standard specification or code d) Indemnify the Trust against any claim which may be made in respect of personal injury to any person unless due to negligence by the school and against any claim for damage to property due to negligence of the contractor, and the contractor shall produce evidence of suitable insurance against such claims 5. An invitation to tender shall state clearly the closing date and time for receipt of tenders and that: - i) The Directors do not bind themselves to accept the lowest tender ii) Proof of posting will not be accepted as proof of delivery if the tender fails to arrive at the address shown on the tender envelope label for the closing date and time 6. No tender received after the closing date and time shall be considered (any such tender will be returned to the tenderer unopened by the CFO / CEO) 7. Tenders shall be opened at one time, which shall be as soon as possible after the closing time and only in the presence of three people appointed by the Operations Committee. Those people shall certify a list of tenders received 8. A report shall be put to the Operations Committee if a tender other than the lowest, or payment to be received other than the highest are to be accepted, and a list of tenders received identifying the tender accepted shall be reported to the Operations Committee 9. Once opened, tenders shall not be altered except that a tenderer may be given an opportunity to correct an error in calculation. When such an opportunity is given the tenderer shall be given no information about others tenders or the likelihood of his tender being accepted East Angliaf Park Schools Trust Finance Policy v Page 8

9 9. TAX 1. The CFO / FM / Head of School should ensure that all relevant staff are aware of provisions concerning VAT and Tax 2. Proper VAT invoices are obtained for all transactions involving VAT 10. INVENTORY AND FIXED ASSETS 1. The CFO or designated person will maintain an inventory of all items deemed to be portable, desirable or valuable above the limit of The inventory must be kept up to date with serial numbers or other identifying reference used where appropriate for all items portable, desirable or valuable 3. The inventory will include all ICT hardware which should be checked annually with the check evidenced by another member of staff 4. All discrepancies must be investigated and any resulting in a loss up to 100 will be reported to the CFO / CEO 5. Any discrepancies resulting in a loss of more than 100 will be reported to the Operations Committee 6. Trust property given to members of staff (e.g. laptops, ipads) can be taken off site for the purpose of the execution of their duties, but all property not usually taken off site must be agreed in advance with the Facilities Manager, CFO or CEO, and signed for 7. The CFO or designated person will ensure the asset inventory is flagged for all items purchased with a value over the Trusts capitalisation limit of 1, Depreciation will be documented in the Trusts fixed asset policy and the CFO or designated person will maintain a schedule of calculated depreciation for all capitalised fixed assets in the inventory 9. Assets should be depreciated in the first year, using a pro-rata calculation of full months, from the invoice date unless the delivery date is significantly later and the difference in depreciation applied would be material 10. Asset items can be declared surplus to requirements and disposed of by sale or written off (land and buildings are excluded from this), subject to the authority levels outlined in the appendices and Trust Redundant Equipment Policy. The School inventory must be updated to show all items disposed of 11. Any net income from the sale of surplus or redundant assets will be paid into the Trust bank account by the FM 12. Disposal values should be calculated from the date the asset is declared redundant, using a pro-rata calculation of full months 11. TRAVEL AND SUBSISTENCE EXPENSES 1. Claiming travel and subsistence expenses is based upon the principle that the journeys and expenses are actually and necessarily incurred to enable members of staff to perform their duties, and are appropriately authorised 2. All claims must be made in accordance with the Trust Expenses policy, and forms should be completed and signed by the member of staff, approved by the respective line manager within the school, collated by an appointed person within the school office, and then passed to the CFO who will notify the external payroll provider 3. The Board of Directors may claim expenses, subject to prior approval by the CFO / CEO, and on completion of the appropriate claim form this will be paid by the Trust (in the case of car travel expenses this will be paid in accordance with the Trust Travel, Subsistence and Disturbance policy and published HMRC levels) East Angliaf Park Schools Trust Finance Policy v Page 9

10 12. HOSPITALITY AND GIFTS 1. A gift or form of hospitality may be considered inappropriate where the Trust or individual would be embarrassed should its acceptance become public knowledge, and where it could be seen to compromise their personal judgment or integrity 2. As such, hospitality or gifts from contractors, organisations, firms, individuals or parents should only be accepted where it is of a nominal value and is secondary to any specific working arrangement. In particular, any hospitality provided by an individual or company who the Trust has invited to an ongoing tender for a service or contract, should be declined in all cases 3. Where hospitality or gifts are accepted, the Head of School and/or CEO should be made aware 4. As a recommended guideline: - Gifts such as calendars and dairies which are retained within the school may be accepted and do not need to be added to the gift register Other types of gifts, which may be considered more inappropriate, (such as alcohol, vouchers, or cash) up to a value of 25 may be accepted if the Head of School / CEO agrees but must always be added to the gift register Gifts over 25, of any type, may be accepted if the Head of School / CEO agrees, but must always be added to the gift register Gifts over 50 should normally be declined 5. The Head of School is authorised to approve on-site hospitality for staff or organisations subject to the authorisation levels outlined in Section 14 and the appendices 13. RETENTION OF RECORDS 1. All financial records should be retained in accordance with retention guidelines. The majority of financial records should be retained for six years, plus the current year, or back to the previous audit inspection, whichever is the longer period 2. Certified, paid invoices must be kept for the current year plus the previous six years in a safe, secure environment which will enable easy location and be available for inspection by HM Revenue and Customs (HMRC) 3. Disposal of confidential matter should be done in a secure manner East Angliaf Park Schools Trust Finance Policy v Page 10

11 14. SUMMARY OF RELEVANT FINANCIAL AUTHORISATION LEVELS TRUST WIDE Delegated Duty Value Delegated Authority Signatories for cheques, Purchase orders and authorising invoices, BACS payment authorisations and bank transfers (including payroll) Raising invoices to collect income Up to 10,000 Two signatories from CFO / Business Manager, Head of School, Chair of Board of Directors, Designated people within school currently Elizabeth Lavery (Cliff Park Infant school and Trust transactions only), Linzi Reeves (Cliff Park Junior school transactions only) Over 10,000 Three signatories from above, including CEO or Chair of Board of Directors Up to 1,000 for initial invoicing plus reminders 1,001 to 5,000 plus reminders 5,001 to 10,000 10,001 to 30,000 Over 30,000 Facilities Manager (lettings), FM, Designated person within school in conjunction with Head of School FM in conjunction with CFO As above in conjunction with CEO As above, with reporting to the Operations Committee Directors Write off bad debts Up to 100 Head of School 101 to 500 CFO in conjunction with CEO, with reporting to the Operations Committee Over 500 Directors Disposal of assets Up to 100 Head of School 101 to 500 CFO in conjunction with CEO 501 to 1,000 As above with reporting to the Operations Committee Over 1,000 Directors East Angliaf Park Schools Trust Finance Policy v Page 11

12 APPENDIX A. POLICY APPLICABLE TO CLIFF PARK INFANT AND JUNIOR SCHOOL ONLY A budget for day to day purchasing of educational and office supplies, materials and staff development (training) costs will be delegated to the Head of School at the start of each academic year (those outlined in appendix A3) who will be responsible for ensuring the spend against budget is monitored closely The School bank account will be funded by the Trust with the necessary income at the start of each Academic year and monitored each month to ensure there is enough cash flow available to carry out the day to day purchasing of this category of spend Other categories of expenditure are managed centrally (those outlined in appendix A1 and A2) APPENDIX A1. SERVICE SUPPLIERS 1. For the purpose of this section service suppliers are defined as: - Organisational professional fees (e.g. consultancy to staff relating to finance, legal and personnel whether provided by the LA or other provider, payroll costs, plus any building and premises consultancy fees) Curriculum professional fees (e.g. learning support services and consultancy, bought in PE support and clubs, educational visits and parental support, plus ICT/Broadband supply whether provided by the LA or other provider) Consultancy and support programmes for Trust central staff Catering services Educational ICT software and licenses (e.g. Pupil Asset, Espresso) Insurance Audit fees Photocopier leasing Telephony Energy 2. The CFO shall be authorised to award, sign and renew contracts up to 5,000 before approval by the CEO is required 3. The CEO, shall be authorised to award, sign and renew contracts up to 10,000 before approval by the Operations Committee is required 4. The Operations Committee shall be authorised to award contracts up to 30,000 before approval by the Directors is required. Where this occurs a Governors minute number is required wherever possible before the order is placed and the CEO shall be authorised to sign any applicable contracts or agreements 5. Two quotations will be obtained for all purchases between 1,000 and 4,999, and three quotations will be obtained for all proposed purchases exceeding 5,000 to ensure best value, in accordance with the Trust Tendering policy. These will then be referred to the CFO, CEO, Operations Committee or Directors for approval depending on value East Angliaf Park Schools Trust Finance Policy v Page 12

13 APPENDIX A2. FACILITIES MANAGEMENT, INCLUDING ICT AND FURNITURE 1. For the purpose of this section Facilities Management, including ICT and Furniture are defined as: - Annual occupancy costs Cleaning, Water, Rates and Refuse collection Building and grounds repairs, maintenance and improvement and Health & Safety ICT equipment and repairs Education and office furniture, including white goods 2. The Trust Facilities Manager, in conjunction with the CFO, shall be authorised to approve orders up to 3,000 before approval by the CEO is required 3. The CEO shall be authorised to approve orders up to 10,000 before approval by the Operations Committee is required 4. The Operations Committee is authorised to sign orders/contracts up to 30,000 before approval by the Directors is required. Where this occurs a Governors minute number is required, if possible, before the order is placed and the CEO shall be authorised to sign any applicable contracts or agreements APPENDIX A3. EDUCATIONAL AND OFFICE SUPPLIES, MATERIALS AND STAFF COSTS 1. For the purpose of this section Educational Supplies, Materials and staff costs are defined as: - Books, Stationery and Materials (all class subject and curriculum budgets, books, and including educational subscriptions not supported by an ICT software or web based package) Educational Supplies and services (music fees and school trips) Educational transport (Swimming and P.E) Back Office supplies and services (e.g. stationery, first aid, licenses, hospitality, publications and subscriptions) Staff costs (advertising and recruitment expenses, DBS checks, training and course fees, travel expenses, agency supply costs, plus medical and work wear Teaching supply (agency supply staff) Catering provision (e.g. breakfast and after school clubs) 2. The Head of School shall be authorised to approve individual orders up to 1,000, provided it is within the overall scope of their delegated budget, and can choose to delegate this authorisation to other designated budget holders as they require 3. If planned expenditure is outside the scope of their delegated budget, further authorisation in accordance with 4. & 5. is required 4. The CEO shall be authorised to approve orders up to 10,000 before approval by the Operations Committee is required 5. The Operations Committee is authorised to sign orders/contracts up to 30,000 before approval by the Directors is required. Where this occurs a Governors minute number is required, if possible, before the order is placed and the CEO shall be authorised to sign any applicable contracts or agreements East Angliaf Park Schools Trust Finance Policy v Page 13

14 APPENDIX A4. SUMMARY OF RELEVANT FINANCIAL AUTHORISATION LEVELS - APPLICABLE TO CLIFF PARK INFANT AND JUNIOR SCHOOL ONLY Delegated Duty Value Delegated Authority Ordering goods and services (raising requisitions) Service Suppliers (appendix A1) Premises, ICT and Furniture (appendix A2) Educational Supplies and Materials (appendix A3) Up to 5,000 Chief Financial Officer (CFO) Up to 10,000 Chief Executive Officer (CEO) 10,001 to 30,000 Operations Committee (with CEO acting as signatory for contracts and legal agreements) Over 30,000 Directors (with Chair acting as signatory for contracts and legal agreements) Up to 3,000 Facilities Manager in conjunction with CFO 3,001 to 10,000 CEO 10,001 to Operations Committee 30,000 Over 30,000 Directors Up to 1,000 Head of School 1,001 to 10,000 CEO 10,001 to Operations Committee 30,000 Over 30,000 Directors Budget virements Up to 1,000 Head of School 1,001 to 30,000 CFO in conjunction with CEO, with reporting to the Operations Committee Over 30,000 Directors East Angliaf Park Schools Trust Finance Policy v Page 14

15 APPENDIX B. BOARD OF DIRECTORS Claire Blamey (chair) Simon Gilbert-Barnham Jackie Cutchey Barry Nichols Suzanne Mitchell Peter Cushing Martin Steele APPENDIX C. OPERATIONS COMMITTEE TERMS of REFERENCE 1. Budget review and monitoring To review and monitor budget projections/medium term financial plans to ensure the Trust s budget is realistic and any financial decisions are sustainable. To recommend to the Directors approval of the annual budget plan and cash flow forecasts for the forthcoming financial year as appropriate in accordance with the timescales dictated by the Education Funding Agency. To receive the most recent monthly management reports to facilitate the monitoring of the Trust s actual financial performance and cash flow compared with budget forecasts, and to take remedial action as necessary and report to the Directors. To make decisions on requests for funding from school LGBs that will have an impact on the Trust s financial position. To make decisions on expenditure within the Committee s delegated authority levels. To make decisions on virements within agreed budgets, within the Committee s delegated powers, and authorising budgetary adjustments to be made. To make decisions on unbudgeted expenditure, within the Committee s delegated powers, and authorising budgetary adjustments to be made To advise and recommend to the Directors on the appropriateness of proposed virements or unbudgeted expenditure outside the Committee s delegated powers. To review benchmarking data, in order to compare the Trust s financial performance with other similar Trusts. 2. Policies and Procedures To review annually the Trust s financial policies, Scheme of Delegation and Terms of Reference. To review annually and make decisions with regard to on-going contracts as appropriate within the Committee s delegated powers. To review and agree premises lettings charges, in line with the Lettings Policy. 3. Financial Controls and Reporting To ensure the Trust has appropriate internal financial controls in place, overseeing the function of the Audit Committee. To review the Trust s annual financial statements, reports and Auditor s management letter. 4. Governance East Angliaf Park Schools Trust Finance Policy v Page 15

16 Attendees - Claire Blamey (Chair) - Jackie Cutchey - Barry Nichols - Sue Mitchell (Chief Executive Officer) - Martin Steele - Simon Gray (Chief Financial Officer) - Jo Anverali (Finance Manager) - Liz Lavery (Clerk) Membership 5 Directors, subject to an annual review by the Board of Directors Quorum - any 3 Directors Meeting frequency twice a term, meeting to be held prior to the scheduled Board of Directors meeting Clerk - each meeting must be clerked APPENDIX D. LOCAL GOVERNING BODIES TERMS of REFERENCE 1. To act at all times within the guidelines set down by the Trust board. 2. To ensure that the budgets including Pupil Premium and PE delegated to the Academy are managed within the Trust s scheme of delegation. 3. To maintain and review the school s delegated budget and accounting records related to income and expenditure versus plan. 4. To support the Head of School to maintain and improve academic standards and performance. 5. To monitor student behaviour and consider appeals against any decision to exclude students from attendance. 6. To monitor levels of attendance and ensure safeguarding procedures and policies are in place. 7. To assist with the appointment, appraisal and dismissal of staff as set down by the Trust board. 8. Alongside the Head of School, set and review the curriculum aligned with any views of the directors. 9. To promote the aims, objectives and educational vision of the school through the School Improvement and Development Plan and evaluate its impact through school self-evaluation. Composition The membership of the Local Governing Body shall be determined in accordance with the following provisions:- The total membership shall be not less than 3 and not more than 7 The membership shall comprise: the Head of School; a minimum of one Parent Member; up to two Staff Members (excluding the Head of School); up to four community Governors appointed by the Directors; and; East Angliaf Park Schools Trust Finance Policy v Page 16

17 any additional members, if appointed by the Directors, and or at the request of the Secretary of State for Education pursuant to clause 102c of the Master Funding Agreement entered into between the Company and the Secretary of State governing the affairs of the Company. Quorum shall be any two-thirds (rounded up to a whole number) of the persons who are at the time persons entitled to vote on those respective matters. Meetings frequency at least once a term Chair Clerk (appointed by the Trust board) the Trust will provide a clerk for the local governing body meetings Term of office 4 years (can be reappointed/re-nominated) Appointment of Staff Members There will be no more than two Staff Members. The term of office will be two years subject to continuing employment with the Academy. Staff members will be appointed by the Directors. Appointment of Parent Members There will be at least one Parent Member appointed by the Directors/CEO Appointment of Other Members All other members will be appointed by the Directors/CEO The term of office will be four years subject to an annual review by the Board of Directors. East Angliaf Park Schools Trust Finance Policy v Page 17