Consistent Financial Reporting

Transcription

1 Consistent Financial Reporting Introduction The following Consistent Financial Reporting (CFR) guidance applies for the financial year The CFR framework provides the definitions for each CFR code to assist schools in mapping income and expenditure to the appropriate areas of the CFR framework. The codes are set out in The Consistent Financial Reporting (England) Regulations The framework aims to provide a standard framework for schools to collect information about their income and expenditure to support benchmarking and enable simple reports to be produced for governors and local authorities. Coding list The list of ledger codes linked to the CFR structure can be found on the Schools Finance webpages. Timescales Up to 31 Dec 2014 Education and Learning Finance team will review transactions and transfer the expenditure and income onto the new codes if required. 1 Jan 2015 onwards Schools will be required to review transactions and monitor ledger codes that sit under E28 and I08 and make the necessary transfer to the new codes as stated on the full list in the beige boxes. Changes in Ledger Coding As a result of reviewing the CFR guidance for the following changes have been made to the ledger coding structure to provide transparency and ease for analysis within the centre. The changes are with immediate effect and will require you to update SIMS to reflect changes in CFR code and additional ledger codes. Note: You do not need to move income or expenditure at the moment as this will be picked up by Education and Learning Finance. 1. LPS Schools The Local Payment Schools will continue to be treated slightly differently to the rest of the maintained schools for internal billing unless stated in the sections below. Costs should be coded to 7933 Int Recharge (LPS Only) CFR E28 Income should be coded to 9619 Internal Recharge to Local Paymt CFR I08 The income code will need to be analysed at year end, but to assist in which category within the CFR structure the goods / service sits please include the CFR xxx in the job code. 2. Security Services Currently costs for Security Services are sitting on ledger code 4302 (Other Contractor (Main/Term) under CFR E18. These should be coded to the more suitable code within the ledger structure 2604 (Security Systems). The CFR code remains E National College of Teaching and Leadership Income from the NCTL in the past has been coded to Fees 9332 CFR I08 it should however have been shown as an income under Other Government Grants (CFR I06) and for this purposes the ledger code structure this must be changed to 9065.

2 4. Production Kitchen With the introduction of Universal Infant Free School Meals (UIFSM) a distinction has been required for income received for meals provided to external customers including schools and income from school meals. Therefore it cannot all go to ledger code 9301 Sales of meals, so for production kitchens and income for meals provided to external customers need moved to Income from Meals (Production Kitchen) 9305 CFR I08 Internal school customers should code income for Production Kitchens on 9605 Internal Production Kitchen (CFR I08)Inc, whilst expenditure should go to 7965 Internal Production Kitchen (CFR E25)Exp 5. Learning Resources This area has seen a lot of crossover / duplication of codes being used within Administrative Supplies CFR E22 as well. To rectify this, the following ledger codes are replaced if the goods or services are related to Learning Resources (CFR E19) Equipment 4001, Furniture 4002, Printing & Design 4201, Books & Publications 4006, Subscriptions In future use ledger code 4401 Learning Resources (excluding ICT Equipment) CFR E19 Fixture & Fittings 2401 has a similar issue under E12 6. Cleaning & Caretaking Currently this has been combined with Technical Support Catering (Schools) due to the historic position of the service and would require manual adjustment at year end to allocate it to the correct CFR coding. A new ledger code has been created of 4379 Technical Support Cleaning (Schools) which now identifies this under the correct CFR E Universal Infant Free School Meals (UIFSM) This is a new grant from with the introduction of UIFSM. It was initially allocated under 9059 (Other External Grant Funding) CFR I18, but since then it has been necessary to allocate this to a separate code 9069 Universal Infant Free School Meals (DfE) CFR I will be used for PE and Sports Grant only. 8. Mutual Fund - Expenditure In previous years it has not been a requirement to differentiate between the two categories of teaching and non-teaching staff. From However, it is now a necessary. Supply Teacher Insurance Where schools are paying into the LA managed scheme (Mutual Fund) for teaching staff costs then this should be coded to Int Rech-Teacher Absence Scheme Charge CFR E10. Note: If premiums are paid to external insurers for supply cover you need to use the ledger code 1831 Staff-related Insurance Where schools are paying into the LA managed scheme (Mutual Fund) for non-teaching staff costs then this should be coded to Int Rech-Staff Absence Scheme Charge CFR E11. Note: If premiums are paid to external insurers for non-teaching staff cover you need to use the ledger code 1832 Therefore costs will need to be identified between the two types and non-teaching staff moved from 7935 to 7936 or 1831 to 1832 to reflect the changes. LPS schools will need to move charges from 7933 to either 7935 or 7936 to reflect the changes. 9. Mutual Fund Income As with the expenditure this now needs to be separated from the one code, but there is an added complication in that we also need to identify those which are maintained schools and local payment schools Receipts from supply teacher insurance claims Where schools receive payment from the LA managed scheme (Mutual Fund) for teaching staff absence to

3 Maintained Int Rech-Teacher Absence Scheme Income CFR I10. LPS LPS receipts fm suply teachr absenc mngd CFR I10 Note: If income is from an external insurer for supply cover you need to use the ledger code 9214 CFR I10 Staff-related Insurance Where schools receive payment from the LA managed scheme (Mutual Fund) for non-teaching staff costs then this should be coded to Maintained Int Rech-Teacher Absence Scheme Income CFR I11. LPS LPS receipts fm suply teachr absenc mngd CFR I11 Note: If income is from an external insurer for non-teaching staff cover you need to use the ledger code 9204 CFR I11 Therefore income will need to be moved from 9612 to 9604 for maintained schools and External 9204 to 9214 to reflect the changes. LPS schools will need to move income off of 9619 onto either 9620 or 9624 depending on the type of staff covered. 10. Haven Banks / Duke of Edinburgh The charges for Haven Banks and costs relating to the Duke of Edinburgh Awards go through on ledger code Int Rech - Child & Adult Protection CFR E28. Under the structure for the ledger code remains unchanged, but the CFR has changed to E27 - Bought-in professional services curriculum as the activities are deemed to be courses purchased for students / activity weeks. Please amend the CFR structure only for this ledger code within SIMS 11. Management charges In reviewing the codes it has come to light that ledger code 7925 is being used for providing courses purchased for students (See Haven Banks / Duke of Edinburgh). Any costs not relating to this should be moved off of this code onto a more suitable internal recharge code and most likely Int Recharge - management (schools) CFR E DMP & VA Promise DMP & VA Promise are maintenance related cover and are currently coded on ledger code Int Recharge Education and Learning CFR E24. However, CFR E12 Building maintenance and improvement is the correct place within the CFR structure and for this reason a new internal code has been created to move the costs to 7962 Int Recharge Maintenance. 13. Payments received from other schools Amongst the income on the generic internal recharge codes 9601 (9619 LPS Schools) there are payments received from other schools e.g. from a partner school in a collaboration or cluster to meet supply cover costs to enable your school to participate in development activities organised by the partner school primarily for the benefit of your own and other schools. To recognise this income then ledger code 9621 has been set up for maintained schools and 9622 for LPS schools. To reflect this on the payments side of the coding this means moving costs from 7926 for maintained or 7933 for LPS to 7963 and 7964 respectively. 14. Codes no longer to be used by Schools The following ledger codes are no longer to be used within Schools Main / Term Contractor Items currently sat on this code include landscaping, safety training and Devon Norse. Please review the CFR expenditure for a more suitable ledger code Other Contractors (Not Main / Term) This is currently being used for security but this should be coded as stated in section 2. Also some Lettings to staff payroll which need to be transferred off on to a more suitable code.

4 4303 Management Consultancy For services supporting curriculum the ledger code to be used is 4376 and should sit under CFR code E27. If however it is relating to administrative consultancy then it is E28 and the ledger code is dependant on if it is for legal, personnel, finance, management, etc Professional Fees As 4303 this is now split curriculum the ledger code to be used is 4376 and should sit under CFR code E27. If however it is relating to administrative consultancy then it is E28 and the ledger code is dependant on if it is for legal, personnel, finance, management, etc Grants Paid This code is no longer being used for locality budgets from members. The income that comes in must be coded against the expected expenditure code and therefore would be offset once the actual costs come in for this services / goods Government Grants DO NOT USE This code as the title suggests should no longer be used. If you have any costs on here then they need to be moved off Active Devon (Sports England) This is code is only for use by the Active Devon Team and is not to be used by Schools. Any income on this code needs to be moved to a suitable code within the CFR income structure. 15. Ledger codes to be zero at year end These codes need to be analysed for CFR purposes to ensure appropriate coding within the new structure and should be zero by the end of the financial year. Expenditure Income 4311 Other Fees & Charges 4901 Miscellaneous Expenditure 9389 Miscellaneous Income 16. Internal Code Analysis All expenditure and income must be allocated to a CFR code. Therefore we will have to contact you near year end to ask for this information if it has not already been identified on the transaction. Expenditure Income 7926 Int Recharges Education & Learning 9601 Internal Recharges (Cr) 9619 LPS Internal recharges Please move internal Expenditure to a more suitable 79xx code. Please move internal income to another more suitable 96xx code. Any balance will need to be identified to a CFR code in the description or via a job code CFRIxx. The transactions do not need to be moved off the following codes, however a CFR code must be identified via job code or in the description. Income 9314 P ledger Income These codes need to be analysed for CFR purposes to ensure appropriate coding within the new structure and should be zero by the end of the financial year.

5 Codes to change in structure OLD CODE NEW CODE LPS Schools E Int Recharge (LPS Only) E Int Recharge (LPS Only) I Internal Recharge to Local Paymt I Internal Recharge to Local Paymt Security Services E Other Contractor (Main / Term) E Security Systems National College of Teaching and Leadership I Fees I Nat Coll of Teaching & Leadership Production Kitchen I Sale of Meals / Food I Income from meals (production kitchen) I Internal Production Kitchen (CFR I08)Inc E Internal Production Kitchen (CFR E25)Exp Learning Resources E Fixture & Fittings E Equipment E Furniture E Learning Resources (excl ICT Equipment) E Books & Publications E Subscriptions Cleaning & Caretaking E Technical Support - Catering (Schools) E Technical Support - Cleaning (Schools) UIFSM I Other External Grant Funding I Universal Infant Free School Meals Supply teacher Ins claims I External receipts fm non-teach absence mngd I External receipts fm supply teacher ins claims I Internal recharge to a Local Paymt I LPS receipts fm supply teacher absence Managed Staff-related Insurance I Int Rech-Teacher Absence Scheme Income I Internal receipts fm non-teach absence managed E Int Rech-Teacherr Absence Scheme Charge E Int Rech-Non-Teach Absence Managed Sch Haven Banks / Duke of Edinburgh E Int Rech - Child & Adult Protection E Int Rech - Child & Adult Protection Remove non Haven Banks (Management Chgs) E Int Rech - Child & Adult Protection E Int Recharge - management (schools) DMP & VA PROMISE E Int Recharge Education and Learning E Int Recharge - Maintenance Payments received from other schools I Internal Recharges (Cr) I Int Rech-Maintained Partner School Income I Internal recharge to a Local Paymt I Int Rech-LPS Partner School Income Payments charge to other schools E Int Recharge Education and Learning E Int recharge-maintained Partner School Exp E Int Recharge (LPS Only) E Int recharge-lps Partner School Exp Consultancy / Professional Fees for schools E Management Consultancy E Curriculum Support (Schools) E Professional Fees E28 43xx Non-Curriculum Consultancy

6 Revisions: Feb 2015 Codes CFR E99 and I99 replaced with E28 and I08 as FMS system cannot create CFR coding outside that given by DfE. Clarification of the Ledger codes to be zero at year end and Internal Code Analysis