CHULMLEIGH ACADEMY TRUST FINANCE and ACCOUNTING POLICY (including Scheme of Delegation) Approved by Board of Directors: 17 March 2016 1
Finance Policy Statement - Chulmleigh Academy Trust This statement sets out the Directors policy on the management of finances within Chulmleigh Academy Trust. The Trust includes Chulmleigh Community College; Chulmleigh Primary School; Burrington Primary School; East Worlington Primary School and Lapford Community Primary School. The Statement applies to all funds delegated or devolved within the Funding Agreement and the Articles of Association. 1. The Directors have overall responsibility for securing the efficient and effective administration of the schools and their resources. Accordingly the Directors regard proper control of the schools finances as being of utmost importance. The Directors endorse and have adopted the principles of good practice contained within the Academies Financial Handbook. All staff involved in financial transactions are required to be fully aware of and to comply with these requirements. There are two main strands to this:- Operational Control over spending and income collection Monitoring and control of the budgets 2. The Executive Headteacher is the Accounting Officer, and is accountable to the Directors for the exercise of delegated authority. The Accounting Officer is personally responsible to the Board of Directors for: Ensuring regularity and propriety Prudent and economical administration Avoidance of waste and extravagance Efficient and effective use of available resources The day-to-day organisation, staffing and management of the Academy 3. The Executive Headteacher may delegate or appoint others to assist in these responsibilities. The Academy Business Manager will take the role of Principal Finance Officer and is responsible for. The day-to-day management of financial issues The management of the Academy s financial position The maintenance of effective systems of internal control Ensuring that the annual accounts are properly presented and adequately supported by the underlying books and records of the Academy Employees or directors must not exceed their delegated authority, which must only be exercised within the framework of overarching rules and school policies. They will be held accountable for their decisions and actions. Any matter of significant financial consequence shall be drawn to the attention of the Board of Directors in a timely manner. 2
All financial dealings are to be conducted in a framework of openness thereby allowing proper scrutiny and evaluation and with absolute integrity and regard for the good reputation of the Academy Trust. Proposals for the deployment of financial resources shall be properly supported and each proposal shall demonstrate Best Value and its sustainability in the light of the resources likely to be available. The regular comparison of spending against budget is intended to highlight those areas where the budget is under pressure to enable effective remedial management action and to identify those areas where resources may be released to further un-resourced elements within the school development plan. This process should take place at two levels Formal reporting to Directors Ongoing Internal monitoring The Directors regard the passage of timely and accurate information as being central to the success of their Policy. The Executive Headteacher is responsible for putting suitable arrangements in place to ensure the financial data within the Academy Trust is both up to date and accurate so that any member of staff responsible for control of a budget can access an accurate position statement at any time. Internal monitoring is to take place not less frequently than monthly. The staff identified as budget holders within this document are responsible for controlling those aspects of the budget and ensuring that the spending is in line with the development plan. The Business Manager will keep the Executive Headteacher fully informed of spending against budget. The Executive Headteacher is responsible for ensuring regular monitoring of all budget lines and formal reporting to Directors. Formal reports with explanatory commentaries including information about changes in non financial data (e.g. pupil numbers) are required to be circulated no less than 7 days in advance of the relevant meeting. It is essential that the forecast year end position together with the implications for at least the next two years is kept under ongoing review. Where routine budget monitoring reveals budgetary pressures requiring urgent attention which cannot await the next programmed meeting the Executive Headteacher will notify the Chair of the Directors Resources Committee with a view to a meeting being convened. If the matter is of immediate urgency, the Executive Headteacher will agree a remedy with the Chair of the Resources Committee and the Chair or Vice Chair of the Board of Directors, and report the matter to the Resources Committee. The tables included in this Policy set out the delegated authority and responsibilities of individuals together with the frequencies at which tasks and reports must be completed. 3
This Policy Statement was approved by the Board of Directors on 4 March 2014 and is signed on its behalf by the Chair of the Board of Directors S Baber 4
ACCOUNTING POLICY DETAILED ARRANGEMENTS FOR CHULMLEIGH ACADEMY TRUST A. Aims This document has been adopted by the Board of Directors as the basis for the administration and management of all financial matters within the Academy Trust. The aim of the Policy is to create a framework within which individual members of staff, Directors and other interested parties can exercise financial management and stewardship in an efficient and effective way. B. Financial Management The Directors will manage their affairs in accordance with high standards of Public Sector administration, based on a distinct set of values, the fundamental principles of which are: - Openness an open approach to all interested parties in the disclosure of information, that lends itself to necessary scrutiny. Integrity - this is best described as both straightforward dealing and completeness. Accountability - the process whereby individuals are responsible for their actions and decisions. Directors will have regard to: Key Standards of Financial Administration: Responsibilities the responsibilities of the Board of Directors, its committees and individuals involved in finances, as well as Academy personnel are clearly defined and documented to provide a framework of accountability. This framework is approved by the Board of Directors Organisation there is a clear organisational structure with identified lines of reporting for all operations Control Principles financial systems include adequate controls to ensure transactions are properly processed and that errors are detected promptly Accounting System accounting records are appropriately protected against unauthorised modifications, destruction or loss, whether by accident or intention Cash and Banking cash handling and the operation of bank accounts is properly controlled and bank balances are regularly reconciled to accounting 5
records Payroll efficient procedures are in place for the administration of personnel matters, including payroll Purchases purchasing is effectively controlled and achieves Best Value Income all income is identifies and all monies received are receipted, recorded and banked promptly Assets stock, stores and other assets are recorded, adequately safeguarded against loss or theft Computer Systems information held on computer systems is properly protected, regularly backed up and access is restricted to authorised personnel Advice and Guidance advice and guidance is taken relating to the financial performance of the Academy. This could arise from the work of OFSTED; the appointed accountant; the Internal Audit reports to the Resources Committee; the EFA and other interested parties. C. Financial Policies The following policies will be considered and approved by the Board of Directors annually: 1 The Accounting and Finance Policy which includes the Scheme of Delegation This Policy ensures that there is clarity relating to the delegated powers of committees and individuals. This Policy also includes policy statements on: Budget Management Procedures To follow effective financial management of resources an annual revenue budget will be prepared. This will be prepared in a timely manner and in sufficient detail to allow regular meaningful budget monitoring and reporting to take place. It will be consistent with the aims and objectives included within the Academy Improvement Plan. Computer Systems The Directors recognise the importance of protecting computerised management systems and data held within them and will approve procedures to achieve this objective. 6
Purchasing The Directors aim to achieve Best Value from all its purchases and has established procedures for testing the market, placing orders and paying for goods and services in accordance with financial regulations. Income and Banking Arrangements Charging and remission policies will be approved annually by the Directors. All income and monies due to the school will be correctly accounted for and banked in accordance with procedures set out in financial regulations. School Funds The Academy will ensure the secure and efficient custody and control of school funds by managing them within the Academy financial systems. School Census Data The SLT Support Manager is responsible for the aggregation of School Census data. The Executive Headteacher is responsible for verifying the data prior to submission. 2 The School Planning Process To provide a clear focus for development the Executive Headteacher will prepare an Academy Improvement Plan for approval by the Board of Directors annually. This will set out the aims and objectives of each school within the Academy Trust, taking into account the projected available resources for a period covering at least 3 years. 3 Personnel The Directors will approve annually policies relating to the payment of honoraria, gratuities and other emoluments, and ensure systems are in place to allow all payroll transactions to be processed correctly. 4 Directors Expenses Payment of expenses (if any) to Directors will be in accordance with the policy agreed annually by the Board of Directors. 5 Register of Pecuniary and Business Interests of Directors and Staff The Directors recognise the importance of maintaining high standards of Public Sector 7
administration and requires a register of Pecuniary Interests to be maintained, reviewed annually, and amended as interests change. 6 Sundry Debtor Accounts and Debt Recovery All debtor accounts will be raised in a timely manner, and clear guidance given to the debtor regarding settlement dates and payment required. If deemed necessary, payment in advance will be requested. All debts will be monitored at regular monthly intervals, via an Aged debtor report. The following recommended timescale and actions will be applied in respect of debt monitoring:- Outstanding Day 1- debt is raised Day 30 Day 38 Day 45 Day 51 Required action Unless otherwise agreed, the debtor has 28 days to clear debt. If debt is still outstanding, reminder sent to customer. Customer asked to respond within 7 days Phone call to debtor to discuss reason for non payment If debt is still outstanding a final reminder/pre proceedings letter is sent. If debt is still outstanding, Bad Debt process to consider proceedings to formally recover the debt will be implemented. Bad Debt Write Off The decision on whether to pursue bad debts between 500 and 5000 will be made by the Resources Committee. Amounts under 500 will be given consideration by the Executive Headteacher. The Board of Directors will be advised of any debt that exceeds 5,000 so that appropriate debt recovery action can be taken. Before the decision to write off the debt can be made each case will be considered on its merits and will include consideration of factors such as the value of the debt in relation to the cost of recovery and the likely success of proceedings. 8
7 Investments Strategy Investments will be with named institutions only and must carry no risk to the capital sum. Arrangements must not be made through intermediaries. The Directors and the Executive Headteacher will undertake detailed research before investing any funds in interest bearing accounts. The Academy will ensure that the best available return on investments is obtained commensurate with proper levels of security and liquidity. All investment arrangements will be reviewed at least annually by the Directors. 9
CHULMLEIGH ACADEMY TRUST SCHEME OF DELEGATION 1 Authority to Authorise Items resulting in Financial Commitments and Payments Authority has been delegated from the Board of Directors to the Signatories detailed on the Record of Authority to Authorise Items resulting in Financial Commitments and Payments form. This form is to be reviewed annually by the Directors Resources Committee. Payroll forms include starters, leavers, overtime and casual employment. All authorised signatories will be in accordance with the Delegation Charts found at the end of this document. 2 Effective Financial Operation Systems The Executive Headteacher is responsible to the Board of Directors for ensuring the effective operation of the finance systems. The Executive Headteacher will ensure that: - the roles of each member of staff are clearly defined and the duties of staff concerned with financial transactions will as far as is practicable be distributed to ensure that key tasks are assigned to separate members of staff and that appropriate systems of internal check exist; Financial Regulations as laid out in the Academies Financial Handbook are adhered to; systems are in place to ensure that financial control is maintained at all times including procedures in the absence of key staff; appropriate documentation and records of transactions are maintained to specified standards. 3. The Academy Planning Process Despite the uncertainties over future years' budget allocations the Directors recognise the importance of long term planning and require a School Development Plan for each of the Academy schools, covering 3 years, to be submitted annually for approval. These plans will be prepared by the Executive Headteacher for approval by the full Board of Directors. 10
4. Budget Management The Executive Headteacher is responsible for preparing the annual revenue budget in sufficient detail to enable the effective management of the available funds by the Board of Directors. The Board of Directors is responsible for ensuring that total forecast expenditure does not exceed the available funds. To ensure this can be done, the Executive Headteacher will provide regular reports (at least termly) to the Board of Directors. As a minimum standard the Directors shall expect to see: - * a budget monitoring statement showing a comparison of expenditure to the approved budget. Expenditure should be broken down into those sums actually spent, sums already committed and amounts of expenditure which are planned but to which the Academy is not yet committed. The statements should show, as accurately as possible, the forecast year end position. * a written report should accompany financial statements providing details of major variations and highlighting areas of uncertainty. The report will also show virements made between budget headings and show the latest forecast pupil numbers and the financial implications of any revised forecasts. It is essential that reports produced are accurate as far as is reasonably possible. The Executive Headteacher is responsible for ensuring that quality controls are in place so that reports are of a sound standard. Staff responsible for the production of financial reports must ensure they take appropriate steps to guarantee the reliability of the information. The Executive Headteacher may delegate the management of the budget and the financial operations to the Business Manager. The Executive Headteacher may also delegate elements of the budget to staff nominated as budget holders, where this is appropriate. These budget holders must operate within the same objectives and controls as those agreed for the school as a whole. Delegated budget holders within the school will be provided with sufficient information to enable them to perform adequate monitoring and control. Such budget holders are accountable to the Executive Headteacher who is responsible for ensuring mechanisms exist to enable such delegated budgets to be monitored. Directors and the Executive Headteacher will periodically review the provision of financial information to ensure that what is provided remains appropriate, particularly in terms of its timing, level of detail and narrative information. The Board of Directors will approve accruals accounts which give a true and fair view of the Academy s incoming resources, application of resources during the year and the state of affairs at year end. 5. Insurance The Executive Headteacher will review the insurance needs of the school annually. Following the approval of the Board of Directors, the Executive Headteacher will ensure the agreed arrangements are in place. 11
The Board of Directors will periodically consider whether to insure risks which are not covered by an existing policy. The Executive Headteacher will be responsible for ensuring that Directors are made aware of all new risks and all incidents which may give rise to an insurance claim (eg. accident, theft, etc) are reported immediately to the insurers. The Executive Headteacher is responsible for notifying the Secretary of State of any loss arising from suspected theft or fraud exceeding the amount set out in the annual funding letter. 6. Computer Systems The Directors recognise the importance of protecting computerised financial management systems and the data held within them. The Executive Headteacher will ensure that the school is registered in accordance with the Data Protection Act 1998. The Executive Headteacher will ensure that effective backup procedures are in place and that all back-up material is stored securely. Access to school management computer systems will be limited to authorised staff. These staff will use passwords which should not be disclosed and should be changed regularly. Only authorised software will be used to prevent the import of computer viruses. Staff will only have access to those modules appropriate to their duties. 7. Purchasing The main requirements for effective purchasing are 1 Probity to ensure that there is no private gain or corruption; 2 Accountability to ensure that the Board of Directors is publicly accountable for the conduct of its affairs 3 Value for Money which underpins the appropriate use of public funds. The Board of Directors requires Best Value to be achieved from all its purchases, specifically in relation to economy; efficiency and effectiveness. In order to ensure effective separation of duty the Procurement Cycle found at Appendix A will be used. 12
The Executive Headteacher is responsible for ensuring procedures are in place for testing the market, placing of orders and paying for goods and services in accordance with financial regulations. Written competitive quotations will be obtained for expenditure within the Policy requirements (see charts and tables). In instances where the lowest quotation is not accepted this should be reported to the Finance Committee and the reasons for the decision recorded in the minutes of the meeting. Quality control checks in terms of Value for Money. The Executive Headteacher will undertake a monthly check on orders with a member of the Finance Office staff. Orders for Goods and Services Orders will be raised on receipt of a Requisition Form signed by the relevant Budget Holder. Telephone orders must only be made following an authorizing signature given by the ABM. All telephone orders must be followed by a confirmation order within 24 hours. The Requisition Form should be retained with the copy order. Payment of Accounts Invoices will only be paid when the budget holder has shown approval that goods or services have been received and are of the quality expected. Payment should be made within reasonable limits and discounts taken for quick payment where appropriate. Petty Cash The ABM is responsible for the operation of the Petty cash account which should only be used for small items of expenditure up to 100 in cash, or 200 by cheque. Every effort should be made to obtain proper receipts and V.A.T. invoices. Petty cash tins are kept in each school and reconciled monthly by the local administrator. Charge Card Payments The ABM is the delegated card holder for expenditure deemed appropriate to pay by charge card (eg online payments approved by the budget holder). Expenditure will be in line with other financial regulations and any expenditure in excess of 200 will be countersigned by the Head Teacher. A direct debit will clear the charge card 13
balance at the bank at the end of every month. The Charge Card is retained in the college safe. VAT The Executive Headteacher will ensure that any amounts of VAT due to the Academy Trust are reclaimed in a timely manner. The ABM will ensure that the effective recording of all VAT output and input VAT transactions is carried out in order to facilitate the claims. The Executive Headteacher will monitor the business transactions of the Academy Trust so that the HMRC can be notified if the VAT registration threshold is exceeded. Personnel and Payroll The Executive Headteacher will, where possible, allocate duties to ensure that an appropriate division of duties exists in the area of completing, checking and authorising of all documents and claims relating to appointments/terminations of employment and expenses. (These roles will not be the sole responsibility of one person.) Payroll transactions will be processed only through the payroll system. Payments for employment will not be made to staff or visiting lecturers etc. through any other mechanism. Security of Stocks and Other Property The Executive Headteacher is responsible for the safe custody of cash, the security of other property and for stock control. The Executive Headteacher will ensure that inventories are maintained. Inventories will be checked at least annually and any discrepancy shall be investigated. Discrepancies over the amount of 50 shall be reported to the Finance Committee. Where there can be any suspicion of negligence or other wrongdoing highlighted by discrepancies on the inventories, the Executive Headteacher will report discrepancies to the Chair of the Finance Committee. Safes and similar storage facilities will be kept locked and keys removed to be held by the key holder who will be nominated by the Executive Headteacher. Normally keyholders will carry keys on their person and keys must not be left on the premises overnight except in another safe. A list of keyholders will be maintained by the Academy and loss of any keys must be reported to the Executive Headteacher and if necessary to the Board of Directors. Budget Holders are permitted to write off and dispose of individual items with an actual value of up to 50. 14
Items for disposal and write offs with an actual value of between 50 and 500 should be approved by the Executive Headteacher The Secretary of State s consent will be obtained should a disposal for any asset for which grant of over 20,000 was made, or where land and buildings had been transferred from the Local Authority at no cost to the Academy. All write offs and items disposed of should be recorded in the inventory register. A report of current inventories should be received by the Directors Resources Committee annually, together with a report of losses, write offs and disposals. Income and Cash Collections The Executive Headteacher is responsible for the correct accounting of all income due to and cash collected for the school. Where possible, the Executive Headteacher will ensure the responsibility for determining sums due to the school is separated from the responsibility for collecting and banking such sums. Where invoices are to be raised, the school will do so promptly using authorised arrangements. Where cash is collected, a receipt will be issued or in agreed circumstances Collection Listings may be used. The receipt books used will be official Academy Trust receipts. Cash and cheques collected will be locked away until the time of banking. A secure transport system for transferring cash and cheques between schools will be adhered to. Cash will not be counted in an office with no-one else present. Income collected will be banked in its entirety as promptly as possible and will not be used to cash personal cheques. Sums received will be reconciled to the sums banked. Charging and Remission of Fees The Board of Directors will determine charging and remission policies annually on the basis of recommendations from the Executive Headteacher. Banking Arrangements The Executive Headteacher is responsible for ensuring arrangements operated are in accordance with procedures specified by financial regulations. Signatories on the account will be The Executive Headteacher and the Academy Business Manager plus two other members of the Senior Leadership Team. Mandate will require any two to sign but for continuity and to ensure understanding of context the Executive Head and the ABM will always be the main signatories the 15
other signatories being back up in case of unavailability. Signatory means signing cheques and credit notes as well as authorising BACS payments electronically. School Census Data. The SLT Support Manager is responsible for the aggregation of School Census data for all schools within the Academy Trust. The Executive Headteacher is responsible for verifying the data prior to submission. School Funds The Board of Directors is responsible for each school's School Fund, all of which are managed within the main accounts. Expenditure from these funds will be agreed in advance by the Resources Committee, or in exceptional circumstances expenditure may be agreed between the Executive Headteacher and the Chair of the Board of Directors (within delegated limits), and reported to the Resources Committee. The objectives of the School Funds must be approved by the Board of Directors. Directors Expenses The Policy relating to Directors Expenses will be approved annually and expenses payable will be in accordance with the Directors Expenses Policy. Register of Pecuniary Interests The School will ensure that all staff, Directors and other volunteers complete a disclosure form. Directors will declare any changes to their business interests at the start of each meeting. Tendering Procedure The Academy shall deal with the tenders in line with the procedure laid out in the Tendering Policy at Annex A Investment Policy Statement The Academy shall deal with the investments in line with the Policy Statement laid out in annex B Depreciation and Capitalisation The Academy s accounts shall be determined taking into account the levels shown in the Depreciation and Capitalisation Statement shown at Annex C 16
Table of Delegated Authority Chulmleigh Academy Trust Function Financial Management Board of Directors Resources Committee Committee /PersonnelCtee Learning Committee Comply with Financial Regulations Comply with Minimum Standards Ensure separation of duties A Ensure internal controls operate correctly A A A Ensure Director Policies are complied with 3 Year Development plan: updated annually Prepare budget plans including costings (new + A A next 2 yrs) Sets spending priorities Approves costed items for new year budget Review plan outcomes A A Annual Revenue Budget Prepare A Approve R Monitor Register of Interests A Register of Eligibility to Serve School Census A Key to all tables Frequency Functions O =Ongoing O = Oversee W = Weekly S = Supervises M = Monthly R = Recommends H = each half term C= Co-ordinates T = Termly = does Y= as soon as possible after Year-end A =Assists as required ACMF Committee Nominated Govs Executive Headteacher ABM/Administrators Directors Support Mgr Budget holder s Exec Deputy Heads * Acts within delegated powers and if required 17
Table of Delegated Authority Chulmleigh Academy Trust Policy Review Function Finance Policy Prepare A Recommendations Approve Initiate annual review Remission of Fees & Charging Policy Initiates Annual review Recommendations R Approve Lettings Policy Initiates Annual review Recommendations R Approve Insurance review Initiates Annual review Recommendations R Approve Directors Expenses Initiates Annual review Recommendations R Approve Personnel: annual review of salaries Initiates Annual review Recommendations R R Approve Income Determine policy for advancing credit R Purchase of Services Initiates review Recommendations R Approve Appointment of Auditors Initiates review Recommendations R Approve 18 Trips Recommendations R Approve Board of Directors Resources Committee Learning Committee Nominated Govs Executive Headteacher ABM/Administrator Clerk to Directors
Table of Delegated Authority Chulmleigh Academy Trust Function Board of Directors Resources Committee Nominated Directors (Best Value Comtee Executive Headteacher Spending decisions Authorise appointment of staff R Authorise spending: routine recurrent items* 19 ABM/Administrator ExecHead with Chair Administrators Financial Administration Authorise spending on approved costed items provided in current years budget.* Authorise spending on other items (non routine 50,000 5, 000 10,000 /not identified in plan)* Open tenders Evaluate tenders A Accept tenders A A Receive goods Verify invoices A Certify spending at 2 Petty cash authorise payments CAT Charge Card payments CAT Charge Card payment over 200 Head to countersign counte rsign Ensure correct attribution of costs S Income Approve write offs R 500 Virement Authorise virement 4% 1% 2% Asset protection Security of Property S A A Security of Cash S A A Data protection registration 200 200 200 Exec Deputy Heads 200 Caretaker CCC Kitchen Mgr CCC Budget Holders Network Manager CCC
Compliance with data protection rules O Maintain back-up of data O Maintain security of data O Maintenance of Inventories A Checking and certification *Subject to compliance with Directors Best Value requirements The Directors require that all purchasing decisions are made after adequate market testing or research. Quotations and tenders as appropriate are required as shown below. A note of verbal quotes for lower value items should be made and retained. Estimated value of goods or services Number of quotes required 500-1,000 2 Verbal Quotes 1000-2,500 2 Written Quotes 2,500-10,000 3 Written Quotes 10,000-50,000 3 formal quotations to be submitted in writing by a specified date and time and based on a written specification and evaluation criteria. 50,000 to EU Threshold 4 Tenders Over EU Threshold 5 Tenders if it is not reasonably practicable to obtain the required number of quotations for expenditure under 10,000, the Accounting Officer may agree to waive this requirement, and will report each such waiver to the Resources Committee with an explanation of why it was not practicable to obtain the required number of quotations 20
Table of Delegated Authority Chulmleigh Academy Trust School funds Function Board of Directors Resources Committee School fund/non public funds Appoint auditor R Set objectives Custody and control of fund Receive management reports Presents accounts for audit (within 2 month of period end) Receive audit reports and certificate (within 3 months of period end) Authorise spending: routine recurrent items Authorise spending on other items 2000 CCC 2000 CCC 400 400 Primary Primary Authorise bank accounts & signatories Security of Cash O Nominated Govs Exec Headteacher ABM/Administrators Clerk to Govs 21
Table of Delegated Authority Chulmleigh Academy Trust Budget Monitoring BoD Resources Exec ABM/ Budget Holders Committee Headteacher Administrators Frequency Frequency Frequency Frequency Frequency Maintenance of records S M W Download of Data from Bank S M W Reconciliation of Data S M W Updates forecasts & resource S H H forecast model Monitoring of budget lines/cost S M M M centres Maintain forecast of year-end S O O O position. Initiates management action* Prepares formal budget monitoring S H M statement Prepares commentary S H M A Presents updated resource forecast S H H model Receives report T H Initiates management action* /makes H recommendations to Directors Approve report T Amend Development Plan (if req) Outturn report Y Y A Y 22
Chulmleigh Academy Trust List of Specimen signatures & initials Name Role SIMS User ID Use r cod e Signature Init ials Michael Johnson Exec Head mjohnson MJ Jon Pratt Exec Deputy jpratt JPr Dawn Stabb Exec Deputy dstabb DS Linda Lindley Exec Deputy llindley LL Linda Morris Academy Bus Mgr lmorris LM Terry Pullen Academy Facilities Mgr tpullen TP Early Years Co-ord & Angela Joslin Assistant Deputy ajoslin AJ Pam Down Personell Admin pdown PD Inge Kroon Finance Officer Ikroon IK Susan Vile Trips Co-ordinator svile SV Directors Support A Adrian Wade Manager awade W 23
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Annex A Tendering Procedure This procedure details the procedure to be followed in the event that tenders are required in accordance with the theresholds specified in the Finance and Accounting Policy. 1. Forms of Tenders There are three forms of tender procedure: open, restricted and negotiated and the circumstances in which each procedure should be used are described below. 1.1. Open Tender: This is where all potential suppliers are invited to tender. The budget holder must discuss and agree with the Business Manager how best to advertise for suppliers e.g. general press, trade journals or to identify all potential suppliers and contact directly if practical. This is the preferred method of tendering, as it is most conducive to competition and the propriety of public funds. 1.2 Restricted Tender: This is where suppliers are specifically invited to tender. Restricted tenders are appropriate where: 1.2.1. there is a need to maintain a balance between the contract value and administrative costs, 1.2.2. a large number of suppliers would come forward or because the nature of the goods are such that only specific suppliers can be expected to supply the Academy s requirements, 1.2.3. the costs of publicity and advertising are likely to outweigh the potential benefits of open tendering. 1.3. Negotiated Tender: The terms of the contract may be negotiated with one or more chosen suppliers. This is appropriate in specific circumstances: 1.3.1. the above methods have resulted in either no or unacceptable tenders 1.3.2. only one or very few suppliers are available, 1.3.3. extreme urgency exists, 1.3.4. additional deliveries by the existing supplier are justified. 2. Preparation for Tender 2.1. Full consideration should be given to: 2.1.1. objective of project 2.1.2. overall requirements 2.1.3. technical skills required 2.1.4. after sales service requirements 2.1.5. form of contract. 2.2 It may be useful after all requirements have been established to rank requirements (e.g. mandatory, desirable and additional) and award marks to suppliers on fulfilment of these requirements to help reach an overall decision. 3. Invitation to Tender If a restricted tender is to be used then an invitation to tender must be issued. If an open tender is used an invitation to tender may be issued in response to an initial enquiry. An invitation to tender should include the following: 3.1. introduction/background to the project; 3.2. scope and objectives of the project; 3.3. technical requirements; 3.4. implementation of the project; 3.5. terms and conditions of tender and 25
3.6. form of response. 4. Aspects to Consider 4.1 Financial 4.1.1. Like should be compared with like and if a lower price means a reduced service or lower quality this must be borne in mind when reaching a decision. 4.1.2. Care should be taken to ensure that the tender price is the total price and that there are no hidden or extra costs. 4.1.3. If there is scope for negotiation, this must be considered. 4.2 Technical/Suitability 4.2.1. Qualifications of the contractor 4.2.2. Relevant experience of the contractor 4.2.3. Descriptions of technical and service facilities 4.2.4. Certificates of quality/conformity with standards 4.2.5. Quality control procedures 4.2.6. Details of previous sales and references from past customers. 4.3 Other Considerations 4.3.1. Pre sales demonstrations 4.3.2. After sales service 4.3.3. Financial status of supplier. Suppliers in financial difficulty may have problems completing contracts and in the provision of after sales service. It may be appropriate to have an accountant or similarly qualified person examine audited accounts etc. 4.3.4. If in practice there is a sole provider of the goods or services, appropriate consideration will be given to ensuring that value for money is being obtained (which may include benchmarking similar services or providers elsewhere in the country) and evidence retained for audit purposes. 5. Tender Acceptance Procedures The invitation to tender should state the date and time by which the completed tender document should be received by the Academy. Tenders should be submitted in plain envelopes clearly marked to indicate they contain tender documents. The envelopes should be time and date stamped on receipt and stored in a secure place prior to tender opening. Tenders received after the submission deadline should not normally be accepted. 6. Tender Opening Procedures 6.1. All tenders submitted should be opened at the same time and the tender details should be recorded. Two persons should be present for the opening of tenders as follows: 6.1.1. For contracts up to 25,000 - two of the budget holder, the Business Manager or the Executive Headteacher; 6.1.2. For contracts over 25,000 - either the Business Manager or the Executive Headteacher plus a member of the Finance and Audit Committee. 6.2. A separate record should be established to record the names of the firms submitting tenders and the amount tendered. This record must be signed by both people present at the tender opening. 7. Tender Evaluation 7.1. The evaluation process will involve at least two people. Those involved shall disclose all interests, business and otherwise, that might impact upon their objectivity. If there is a potential conflict of interest then that person must withdraw from the tendering process. 26
7.2. Those involved in making a decision shall not to accept gifts or hospitality from potential suppliers that could compromise or be seen to compromise their independence. 7.3. Full records will be kept of all criteria used for evaluation and for contracts over 25,000 a report should be prepared for the Finance & Audit Committee highlighting the relevant issues and recommending a decision. For contracts under 25,000 the decision and criteria should be reported to the Finance & Audit Committee. 7.4. Where required by the conditions attached to a specific grant from the DfE, the department s approval must be obtained before the acceptance of a tender. 7.5. The accepted tender should be the one that is economically most advantageous to the academy. All parties shall then be informed of the decision. 7.6. In the event that a tender other than the lowest is accepted, those involved in making the decision shall dopcument and report the reasons for not accepting the lowest bid to the Board of Directors. 8. Retention of Records All relevant documents relating to the tender process (including minutes of meetings held and a written record of the reasons for the decision made) shall be retained by the Academy for audit purposes. 27
Appendix 1 Proocurement Cycle 28
Annex B Investment Policy Statement I. Statement of Purpose This policy statement is established to provide a clear understanding between the Directors of Chulmleigh Academy Trust, the Executive Headteacher and the Business Manager regarding the objectives, goals and guidelines of the assets that will be invested by the Executive Headteacher, a Company Director and the Business Manager. II. Background CAT s funds are available to support the needs of Chulmleigh Academy Trust. judiciously be invested in the first year of building the portfolio. Available funds will III. Investment Objectives The primary investment objective of the assets placed under management is to provide for the preservation of capital to support the needs of Chulmleigh Academy Trust. Until the cash flow needs of the organization are determined in more detail, the funds will be invested to preserve capital. IV. Investment Goals Based on the investment objectives stated above, the specific objectives for these assets shall be to achieve a competitive interest rate on the cash deposits. V. Investment Guidelines Asset Mix In general, the cash shall be invested in short term investment accounts, with an average duration of less than one year. It is desirable that the selection of the portfolio take into consideration the UK Financial Services Compensation Scheme (FSCS) insurance coverage and that no more than 85,000.00 shall be placed with any one individual financial institution without the authorisation of the Finance and Audit Committee. Permissible Investments CAT shall follow Generally Accepted Accounting Practices (GAAP) in regards to purchasing investments and are made at the initiation of The Finance and Audit Committee who will solicit the Executive Headteacher s and Business Manager s proposals typically in short-term certificate of deposits, after working capital needs are determined. The assets under the Executive Headteacher and Business Manager s supervision shall be invested in a manner that is consistent with generally accepted standards of fiduciary responsibility. The safeguards which would guide a prudent person shall be observed. All transactions undertaken on behalf of the Academy shall be for the sole benefit of the Academy. The following security classifications are permissible and suitable investments for the purpose of managing the assets: Cash Reserve The agreed reserve should be invested in interest bearing securities, free from risk of loss, price fluctuation and instantly saleable. The reserves shall be invested in interest bearing bank accounts with a withdrawal notice period of less than one year or invested in individual fixed income securities such as bank investment accounts, Certificates of Deposit, U.K Treasury Bonds, and other similar instruments with less 29
than one year to maturity Other Securities Will only be permissible with prior approval of the Finance and Audit Committee. Non-Permitted Investments and Transactions The Business Manager may not concentrate more than 10% of the portfolio in any security or issue other than Agencies of the UK Government, or bank account investments or money market instruments described above. Derivatives will not be permissible investments in this portfolio. V. Investment Review Portfolio measurement standards The portfolio will be reviewed termly against the performance of the assets relative to the stated objectives and guidelines applicable to each investment. The progress of the assets managed by the Executive Headteacher and Business Manager is to be compared to these measures (benchmarks) net of fees and expenses, withdrawals and contributions. Investment Decision External advise will be sought from nationally recognised bodies i.e. Banks, to inform the decision making process where practicably possible to assist with portfolio and related functions. Where such investment takes place, the Directors shall receive on a termly the following management reports: 1. Portfolio performance results over the last term and year 2. Performance results of comparative benchmarks for the same periods 3. End of term status regarding asset allocation The Executive Headteacher, Business Manager and the Directors will make appropriate asset allocation decisions based on the particular needs, objectives, and risk profile of the portfolio. The Executive Headteacher and Business Manager shall: 1. Advise the Directors about the selection and allocation of risk 2. Identifying specific investments within each asset risk 3. Monitoring the performance of all selected assets 4. Recommending changes to any of the above 5. Periodically reviewing the suitability of the investments in the portfolio 6. Preparation and presentation of appropriate reports VI. Review and Modification of Investment Policy Statement This Investment Policy Statement shall be reviewed annually to determine if modifications are necessary or desirable. If modifications are made, they shall be promptly communicated to the Executive Headteacher and Business Manager. 30
Annex C- Depreciation and Capitalisation Statement Depreciation Depreciation is provided as detailed below, on the cost of tangible fixed assets, to write them down to their estimated residual values over their expected useful lives. No depreciation is provided on freehold land. The principal annual rates used for other assets are: Furniture and Equipment: 20% Straight Line Computers: 33% Straight Line Motor vehicles: 25% Reducing Balance Freehold/Leasehold buildings: 50 years Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use. Capitalisation Fixed Assets costing less than 1000 are written off in the year of acquisition. All other Fixed Assets in excess of this sum are capitalised on the balance sheet. 31
CHULMLEIGH ACADEMY TRUST SEGREGATION OF DUTIES: HR & PAYROLL Admin Reception/ Primaries Finance Cover Manager Personnel Administrator Line Manager/ Senior Staff Academy Business Manager Deputy Executive Primary Board of Directors Executive Headteacher Recruitment: New Appointment New appointment form identifying need Detail of hours/wks/pay scale Temporary/Permanent (Temp reason) Approval of new appointment Preparation of job advertisement Approval of job advertisement Contracts (New & Changes): Issued Signed Letters of Appointment: Issued Signed Personnel files Issued/maintained & archived Accessed by Payroll: New appointment forms processed Signed Change in hours/wks: processed Signed Reconciled Casual Claims: (supply/extra hours) Form completed by employee Form initialled by line manager/slt Form coded & signed Reconciled Travel / Expenses Claims: Form completed by employee Form initialled by line manager/slt Form coded & signed Reconciled Absences: Reported to Approval of absence request Processed by SIMS Absence Insurance Claim processed Absence Insurance Reconciled 32
Admin Reception/ Primaries Finance Cover Manager Personnel Administrator Line Manager/ Senior Staff Academy Business Manager Deputy Executive Primary Board of Directors Executive Headteacher Annual Review of teaching salaries: Performance Management Recommendations Processing Payroll forms Recommendations approved Updating SIMS Informing Employee 33
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END OF POLICY 35