2. Excel is used so that the projected outturn figure can be calculated and entered on the spreadsheet.

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1 BUDGET MONITORING & BALANCES REPORT Background 1. The source data for the monitoring report is extracted from the School s financial records held in the ledger system used by the School. This can then be exported to a pre-prepared workbook in Excel. The important criterion is the ability of the software to produce data in the normal Consistent Financial Reporting (CFR) categories required for the budget and year-end returns. 2. Excel is used so that the projected outturn figure can be calculated and entered on the spreadsheet. 3. Once set up, these reporting systems can be produced relatively quickly at any point during the year; only the projected outturn figures for the year will require some detailed work and manual input. 4. Schools normally use computer software accounting packages for recording all financial transactions and then monitoring expenditure against forecast. 5. Extended schools community focused income and expenditure budgets are also included in the revenue budget monitoring report. For completeness capital monitoring is also shown on the returns. Format of the Monitoring Report 6. The report is divided into 7 columns, which are: 6.1. Previous Actual as reported on the End CFR return 6.2. Current Agreed Annual This is the set and approved Annual and would incorporate any approved changes. The local scheme of delegation should detail who has the power to approve changes to the budget Profiled to Profiles are calculated at the beginning of the year, which estimate how much of each budget the school would expect to spend by the end of each month. Profile is an accounting term meaning a forecast of spending or income over the periods in the year. Comparison with it helps managers to detect when the budget starts to get off track and hopefully allows enough time for corrective actions to be taken. A major part of the budget is staffing and this can be profiled accurately along with other major items such as energy, budget share, Standards Fund and School Standards Grant. Other profiles could be entered all at month 1 because it is difficult to predict with confidence the timing of expenditure and income. s from the profile should act an alert to assist in detecting budgets where the expenditure or income is likely to be over or

2 underspent at the year- end. Investigation of profiled variances will assist with the calculation of the projected outturn Actual Payments/Receipts to Sets out costs and income already incurred for which payment has been made and income billed (if using accounts receivable) or received. For further consideration of the required basis of accounting refer to Section 10, paragraphs and to Date This column shows the amount of the budget expected to be spent or received less the actual payments and receipts to the period outturn This shows the revised forecast of what the school anticipates they will spend and receive by the year-end. School staff will manually enter the data in this particular column. It is essential that the year-end forecast is arrived at in consultation with the staff responsible for managing each budget, as they will have the best knowledge about future demands on or plans for their budget for the - This shows the difference between the Current agreed annual budget (see 6.1), and the outturn (see 6.5). This column of variances is the key data for the remainder of the budget monitoring activity. 7. The monitoring report includes the original projected balances and those derived from the revised projected outturn. Governing Bodies should constantly monitor the level of balances and review how they are to be used in the context of the school development plan. Schools predicting deficits, which cannot be rectified by the end of the financial year should apply to the Authority for a Licensed Deficit. 8. The rows to be included reflect the CFR headings, and are shown in Schedule The data should be subtotalled and totalled where indicated. 10. Financial values quoted on the report should ideally be presented in a consistent format by all schools. To improve the look of the reports, such numbers should be formatted as follows Numbers should be right justified All financial numbers should be printed with a leading pound sign - - for example 1,000 Negative numbers should be shown in brackets for example ( 1,000) Format of the Balances Report 11. The required format of the Balances report is shown on Schedule 2.

3 12. The In year movements in each category are carried forward from the appropriate cells in the net total rows highlighted on Schedule 1.

4 Schedule 1 Report Rows for Monitoring Report CORE REVENUE BUDGET Previous Expenditure /Income Current Agreed Profiled to this Actual to period Out-turn for year STAFFING COSTS E01 Teachers E02 LEA Supply E03 Support Staff E04 Premises Staff E05 Admin & Clerical E06 Catering Staff E07 Other Staff (LO, SLO etc) E08 Indirect Employee Expenses E09 Staff Development & Training E10 Supply Teacher Insurance (incl. ) E11 Staff Related Insurance Total Staffing Costs PREMISES E12 Repairs & Maintenance E13 Grounds Maintenance E14 Cleaning & Caretaking E15 Water & Sewerage E16 Energy E17 Rates E18 Other Premises Costs Total Premises Costs SUPPLIES & SERVICES E19 Learning Resources (NOT ICT) E20 ICT Learning Resources E21 Exam Fees E22 Administrative Supplies E23 Other Insurance Premiums E24 Special Facilities E25 Catering Supplies E26 Agency Supply Staff (Teachers l) E27 Professional Services - Curriculum E28 Professional Services - Other E30 Direct Revenue Financing Total Supplies & Services INCOME I01 Funds delegated by LA I02 Funding for 6th form students I03 SEN funding (NOT Special Schools) I04 Funding for minority ethnic pupils I05 Income - Standards Fund I06 Other government grants I07 Other grants & payments I08 Income from facilities and services I09 Income from catering I10 Receipts Supply Teacher Insurance I11 Receipts other insurance claims I12 Income from contributions to visits I13 Donations / private funds I14 School Standards Grant I15 Pupil focused extended school f di Total Income NET CORE REVENUE BUDGET

5 CORE REVENUE BUDGET Previous Expenditure /Income Current Agreed Profiled to this Actual to period Out-turn for year EXTENDED SCHOOL-COMMUNITY E31 OCExtended S school staff - Community fe32 Extended d school costs - C itotal f Extended d school di I16 Community focused extended I17 Extended school facilities income Total Extended school i NET EXTENDED REVENUE BUDGET CAPITAL CE01 Acquisition of land & buildings CE02 New construction, conversion, i CE03 Vehicles, plant, equipment, hi CE04 Information & communication h l (ICT) Total capital expenditure CI01 Capital Income CI03 Private Income CI04 Direct Revenue Financing Total capital income NET CAPITAL BUDGET GRAND TOTALS

6 Schedule 2 Format for Balances Report SUMMARY/BALANCES WITH CURRENT BUDGET SURPLUS / DEFICIT WITH REVISED PROJECTED OUTTURN SURPLUS / DEFICIT B/F REVENUE (CORE) 0 BALANCED 0 BALANCED IN-YEAR REVENUE BALANCE (CORE) 0 SURPLUS 0 DEFICIT CUMULATIVE REVENUE BALANCE - CORE 0 SURPLUS 0 DEFICIT B/F REVENUE (EXTENDED SCHOOOL) 0 BALANCED 0 BALANCED IN-YEAR REVENUE BALANCE (EXTENDED SCHOOL) 0 BALANCED 0 BALANCED CUMULATIVE BALANCE - EXTENDED SCHOOL) 0 BALANCED 0 BALANCED B/F CAPITAL 0 BALANCED 0 BALANCED IN-YEAR CAPITAL BALANCE 0 BALANCED 0 BALANCED CUMULATIVE BALANCE - CAPITAL 0 BALANCED 0 BALANCED NET CUMULATIVE BALANCE - REVENUE 0 SURPLUS 0 DEFICIT NET CUMULATIVE BALANCE - CAPITAL 0 BALANCED 0 BALANCED TOTAL CUMULATIVE BALANCE 0 SURPLUS 0 DEFICIT

7 MONITORING NARRATIVE REPORT APPENDIX It will be necessary and good practice to provide the numerical summaries with a brief narrative report explaining the reasons for variations and their implications on the school. 2. This Monitoring Narrative Report is a key element in the overall monitoring process and a template provided below. 3. The required narrative is: 3.1 A brief explanation giving the reason for any major variance on any one line between the approved budget and the predicted outturn 3.2 Any actions the senior management team in the school propose to take, subject to approval of Governing Body/Finance Committee, to address significant overspends or utilise underspends. School: For 2010/11 Financial Notes re Monitoring based on information to the end of period 1. Reason for major variances between latest approved budget and projected outturn. 2. Proposed actions to address any apparent over and under spends.