• participating in any consultation with the LA on funding reviews and amendments to the Scheme for Financing Schools, and, annually, making recommendations to the governing body as to the formal approval and adoption of the Scheme for Financing Schools
• reviewing, annually, and making recommendations to the governing body to the formal approval and adoption of the LA's Schools' Financial Regulations and Standing Orders
• ensuring compliance with the LA’s Schools’ Financial Regulations and Standing Orders
• adopting the LA's whistle blowing policy
• providing guidance and assistance to the head teacher and governing body in all matters relating to budgeting and finance, and to clearly define any delegation of financial responsibilities (see Appendix 1)
• reporting all decisions taken by the committee to the next governing body meeting
• preparing a 1-year balanced budget plus projected plans for 2 years, which is: a) in a format approved by the LA; b) based on the priorities of the School Improvement Plan; and c) presented to the governing body for approval
• reviewing quarterly budget monitoring reports containing detailed income and expenditure from original system data, ensuring explanations are available and, if necessary, revising the budget
• reporting to the governing body on the school's current financial position and the performance of the annual budget plan, providing supplementary information as may be required
• completing, annually, a benchmarking exercise which, in the Consistent Financial Reporting (CFR) format, compares this school's financial performance with others, the criteria for benchmarking being determined by the committee
• authorising expenditure and virements between budget headings as per the limits delegated (see Appendix 1)
• ensuring there is a recovery plan should the budget go into deficit; equally, that there is a spending plan should the budget have a surplus
• developing a framework of performance indicators and targets in accordance with the Best Value Policy, which will provide a clear, practical expression of the school's achievement of best value, and submitting a Best Value Statement to the LA

• ensuring that each committee member completes a written declaration of interests form, stating any business and/or other financial interest they, or their family or close acquaintances, may have with the school and advising of any changes annually.
• ensuring that, at the commencement of any meeting, all financial interests are declared and recorded in the minutes
• reviewing tenders received for contracts, up to the limits delegated, agreeing which contractors are to be awarded contracts, and making recommendations to the governing body
• reviewing, at a minimum every 3 years and in conjunction with the head teacher,
  1. the continuation or cessation of all contracts, including LA-sourced services;
  2. the effectiveness of the computer accounting system, the financial processes and procedures of the school, and the policies and framework which support the school's financial management, and to take remedial action should this be required
• reviewing, at a minimum every 2 years, the extent of specific delegated powers to the head teacher and others for the administration of finances
• reviewing Internal Audit reports, drawing up any necessary action plan for recommendation to the governing body, and ensuring implementation
• reviewing, annually:
  1. these terms of reference and proposing any amendments to the governing body;
  2. the fees and charges contained in the school's lettings policy;
  3. governors' allowances
• ensuring, annually, a self-assessment of financial competency is completed by all who have financial responsibilities, and, from this, reviewing the training needs of each
• reviewing all statutory and non-statutory policies and procedures relating to this and other committees at the school, which have financial implications and impact on the budget
• reviewing the school improvement plan where this relates to the responsibilities delegated to the Finance committee
• ensuring the school maintains an up-to-date asset register (inventory)
• approving inventory written off, seeking approval of the governing body where delegated authority is exceeded
• To ensure the management and audit of school non-public funds

• reviewing, annually, the school's pay policy (for approval by the governing body) and to undertake any formal consultations on personnel matters, ensuring these comply with the various regulatory guidance notes
• keeping under review, the personnel procedures and making recommendations for change to the governing body:
  1. redundancy
     • to draft and review, in consultation with the LA and staff, criteria for possible redundancy, for approval by the governing body
     • to form a committee from within its members (of which one member must be the head teacher), with delegated powers being agreed by the governing body, to deal with cases of redundancy
  2. discipline and grievance
     • to review, regularly, the procedures for dealing with discipline and grievance and ensure staff are informed of these
     • to form a discipline and grievance committee from within its members (of which one member must be the head teacher), with delegated powers being agreed by the governing body
  3. managing health attendance
  4. premature retirement
  5. leave of absence

• participating in staffing reviews and implementing pay policies, as appropriate
  1. salaries
     • to draft criteria, for approval by the governing body, regarding the use of discretionary elements of pay provisions and make recommendations about implementing them
     • establish the annual and longer-term salary budgets and other costs relating to personnel, eg, training
  2. staffing structure
     • to review the staffing structure whenever a vacancy occurs and, at least annually, in relation to the school improvement plan
• considering and make recommendations relating to staffing to the governing body
• To establish and review a Performance Management policy for all staff
• To consider any appeal against a decision on pay grading or pay awards.
• other responsibilities, including:
  • assisting with drafting job descriptions, where appropriate
  • considering requests for leave of absence in line with the policy agreed by the governing body
  • taking part in a selection panel (although this will be restricted to those who have had the appropriate training)
  • receiving and determining any applications for premature retirement

The chair of this committee must be a non-staff governor and will be elected in the autumn term. The membership must be a minimum of 4, of which at least 3 should be non-staff members.

To be quorate, the meeting should have at least 3 members, of which 2 should be non-staff members.

Each committee will meet at least once per term, at which the school will provide:

once a term

• a budget monitoring report, comparing expenditure (including commitments) and income to the current budget
• notes to explain the current position
• an outturn forecast

once a year, in different terms

• a 3-year budget plan
• benchmarking data
• updated policies and procedures

Role of the Co-Heads

The Co-Heads have joint responsibility for the overall supervision of the day-to-day running of the financial affairs of the school.

The Co-Heads can delegate specific responsibilities to members of staff as appropriate to their job descriptions, ensuring adequate separation of duties in both manual tasks and financial systems (see Appendix 2).

The Co-Heads are responsible for monitoring the financial position of the school on a regular (not less than monthly) basis.

The Co-Heads are responsible for the preparation and presentation to the Finance committee and to the governing body, of reports on the school's finances, in accordance with a pre-determined timetable and on an ad hoc basis, as necessary.

The Co-Heads are responsible for initiating consultations with the chair of governors and the chair of the Finance committee on any significant and exceptional financial circumstances, or any financial matter that is causing concern. They should also report to the chair of governors:

• any failure in any material respect of any member of the school staff to comply with these procedures
• any circumstances which could adversely affect the school's finances
• any matter of serious concern in relation to the school's finances

The Co-Heads can amend the agreed budget by virement between any budget heading up to the limits set out in Appendix 1, and can authorise the purchase of individual items up to the limits indicated in Appendix 1. In exceptional circumstances, or in an emergency, additional authority may be obtained from the chair of governors and the chair of the Finance committee acting jointly.

Role of the Finance Officer

The Finance Officer has responsibility for:

• monitoring all day-to-day records of the school and reconciling them with the records of the LA, as appropriate
• regularly preparing, from the school's accounting system, reports that reflect the position of the school's finances, as may be required by the Co-Heads and the governors
• ensuring, on a day-to-day basis, that the financial procedures as set out in this document, and the documents referred to herein, are followed by all who may be involved in any way in the school's finances
• reporting to the Co-Heads any failure, in any material respect, by any member of the school staff to comply with these procedures; any circumstance which could adversely affect the school's finances; or any matter of serious concern in relation to the school's finances

Administration

1. Keys to the safe are held by the head teacher and the school business manager and are removed from the premises each evening or kept in a locked drawer, the keys of which are removed from the school site at the end of each day.
2. Cheque signatories are as per the bank mandate, and cheques are held securely in a locked cabinet. The majority of payments are made by BACs by both schools.
3. No petty cash system is operated by the Infant office. Petty cash is currently administered by the Junior School, but is being phased out. The level of petty cash will not exceed £250, individual claims will not exceed £50. Claims of up to £10 can be authorised by the Office Manager. Claims of up to £50 can be authorised by the Co-Heads. Exceptions to this will be for Summer School and residential journeys where an authorised float will be taken.
4. A backup of the Infant's financial data is performed every day and stored off premises. The Junior's financial data and files are backed up on the School's server. These files are protected by network security and are backed up daily via a Secure Remote Backup service we have subscribed to. The data is backed up every night and is encrypted before it leaves site. The data goes off to two data centres just outside London via the internet, where it is stored securely. The data can be restored to our servers and in the event of complete failure, it can be downloaded to any machine connected to the internet. If no internet connection is available, it can be retrieved on a hard drive directly from the data centre.
5. The Junior School operate a Procurement Card. Two cards have been issued to named members of staff; Paul Clayton and Tracey Overington. The total credit limit is £2950. Transactions must be reported to the Finance Committee on a termly basis.

Appendix 1
At all times, the principles contained in the school's Best Value Policy will apply.

This Appendix 1 is to be read in conjunction with the Scheme of Delegation and the Spending and Virements Policy

Department for Education (DfE)

The DfE's overall role is to set the national financial framework and to provide high level support and coordination. In pursuit of this role it:

• maintains a national standard for schools (ie, the Schools' Financial Value Standard - SFVS)
• maintains a model financial scheme for schools under section 48 of the School Standards and Framework Act (SSFA) 1998
• requires annual assurance from Chief Finance Officers of Local Authorities (LAs) that:
  • the Dedicated Schools Grant (DSG) has been properly used
  • the LA has adequate audit and assurance arrangements in place for schools
  • schools are implementing the SFVS
• uses data collected to monitor and, where appropriate, challenge the LA on:
  • substantial overspend or underspend of the DSG
  • schools with persistent substantial deficits
  • failure to implement the SFVS
• publishes data on the budgeted and actual spend of LAs and schools
• on the national website, makes available for schools tools and case studies
• maintains the Schools' Financial Benchmarking (SFB) website for schools
• signposts schools to compliant contracts and frameworks for procurement and, in some cases, may arrange contracts and frameworks for schools to access
• hosts discussions with LAs and school partners on financial and procurement issues

Local Authority (LA)

The LA's role is to set and monitor a local financial framework and to provide local support for schools to help them provide an effective service to the local community. In pursuit of this role it:

• maintains and revises a local financial scheme for schools under section 48 of the SSFA 1998 (Scheme for Financing Schools)
• reviews schools’ budget plans as submitted
• agrees a recovery programme with schools that fall into deficit
• carries out high level monitoring of schools' budgets
• challenges excess surplus balances, held without good reason
• intervenes in schools causing financial concern, through issuing notices of concern or the withdrawal of delegation
• plans and carries out an audit programme for schools
• monitors the implementation of the SFVS and takes this into account in their programme of audit
• provides local guidance, tools and resources for schools (may be charged for)
• provides advice for individual schools on request (may be charged for)
• provides conferences and training for schools (may be charged for)
• provides LA-level procurement frameworks and deals for schools
• consults governing bodies on significant changes to funding

Heathfield Schools' Partnership

The school's role is to manage its delegated budget effectively and optimise the use of resources to raise standards and attainment for all pupils, working within the local financial framework set by the LA. In pursuit of this role it:

• seeks to secure good value for money at all times
• implements the SFVS
• ensures that the school has access to an appropriate level of financial expertise
• ensures that the governing body has adequate financial skills among its members to fulfil its role of challenge and support
• maintains effective financial management arrangements in the school
• maintains adequate accounting and management information systems
• follows procedures for purchasing or leasing goods and services that both meet the legal requirements and achieve value for money
• has adequate arrangements to guard against fraud and theft
• benchmarks income and expenditure annually against that of similar schools and investigates and takes action where any category appears to be significantly out of line

The governing body has a strategic role in the financial management of schools and its key responsibilities include:

• setting financial priorities through the
  • School Improvement Plan (SIP)
  • 3-year budget plan
  • the annual budget
• establishing formal procedures and a timetable for budget planning
• approving a balanced and sound annual budget
• ensuring the budget is managed effectively
• determining delegated powers in relation to approving spending and virement decisions and approving them within a formal scheme of delegation
• approving budget virements and spend decisions outside any delegated authority
• ensuring the school meets all its statutory obligations and, through the head teacher, complies with the LA’s financial regulations and standing orders
• ensuring there is a handbook containing appropriate information and description of financial systems and procedures for all staff with financial management responsibility
• ensuring, through this statement of roles and responsibilities, that financial duties of staff are clearly described to avoid potential conflicts
• ensuring that financial records are maintained that can provide auditors and inspectors with explanations they consider necessary

• responding promptly to recommendations made by auditors or inspectors
• as a joint responsibility with the head teacher and all staff at the school, advising internal audit of any financial irregularity at the school
• approving economic and effective debt recovery procedures and, subject to these procedures, writing-off of any debt in relation to the school budget
• ensuring that the school obtains best value when purchasing goods and services
• establishing and reviewing annually a charging policy for the supply of goods and services
• establishing and maintaining a register of business interests of governors and staff who influence financial decisions. This should be open to examination by governors, staff, parents and the LA
• deciding, after careful consideration, whether or not to insure risks not covered by the LA
• authorising the write-off and disposal of stock / stores and inventory items
• receiving the audited accounts of any voluntary funds managed by the school, within six months of their accounting year-end
• approving a data security and recovery plan that complies with the LA's minimum standards on computer security
• determining the staff complement and a pay policy for the school

The Finance committee is non-statutory and the governing body is free to determine its terms of reference, including the approval of the draft annual budget. Where the governing body wishes to delegate some of its financial management responsibilities to the Finance committee it must:

• define its terms of reference
• define the extent of its delegated authority
• ensure it receives minutes of the committee's meetings
• annually review the committee's terms of reference and membership

Linked with the responsibilities held by the governing body, as outlined above, the Finance committee's responsibilities include:

• drawing up the annual and 3-year budget plan for approval by the governing body
• exploring different expenditure options and assessing expenditure bids
• forecasting likely future pupil rolls and assessing the impact on funding levels
• monitoring budgeted income and expenditure
• monitoring and adjusting in-year expenditure levels
• ensuring accounts are properly finalised at year-end and the outturn reviewed
• evaluating the effectiveness of financial decisions
• evaluating the school's achievement of best value

Although the governing body has a statutory responsibility for the oversight of most areas of school life, including financial management, a great deal of responsibility is often delegated to the head teacher and other staff. It is important, therefore, that the head teacher's financial management roles and responsibilities are clear and understood by all who assist them with the school's financial management.

The head teacher provides vision, leadership and direction for the school and ensures that it is managed and organised to meet the aims and targets established by the governing body and, as such, has delegated responsibility for:

• leading on the creation of a strategic framework for the school (ie, formulate the aims and objectives of the school; establish the policies and development plan through which this will be achieved; and monitor progress towards achievement)
• developing the SIP based upon sound resource planning, which identifies priorities, targets and options for ensuring pupils achieve high standards and make progress, increasing teachers effectiveness and securing school improvement within a balanced budget
• advising on and implementing the governing body's strategic framework, and reporting on progress
• submitting the SIP and the 3-year budget plan for governors' approval
• planning, monitoring and evaluating the budget plan, managing expenditure and income
• drawing up and submitting to the governing body an annual budget plan for the school's voluntary fund(s)
• establishing sound internal financial controls, which are managed on a daily basis by the school business manager

• managing effective financial administration procedures to ensure financial probity and compliance with financial regulations, particularly:
  • the proper use of all items included in the inventory and ensuring an annual certified check is carried out to ensure that all inventory items are accounted for
  • the proper security for all buildings, stocks, stores, furniture, equipment, money, sensitive data, etc
  • to make recommendations to the governing body on the write-off of any inventory items or stocks / stores
  • to report annually to the governing body on recommended levels of fees and charges over which the school has discretion
  • that staff using their vehicle on school business, or taking school assets off-site, are properly insured
  • the safe retention of all invoices and financial records in accordance with statutory requirements
  • that the bank is reconciled on a monthly basis and the account not allowed to go overdrawn
  • to advise the LA if the school cannot agree the LA's outturn figures
  • as a joint responsibility with governors and other staff, advise internal audit of any financial irregularities at the school
  • identify and secure appropriate licences and insurance
  • give prompt notification to the insurance services section of the LA of all new risks, properties or vehicles, that are required to be insured; of any alterations affecting existing insurance; of any loss, liability, damage or other event likely to lead to an insurance claim

• approving any budget virements and spending decisions (orders / invoices / contracts / pay records) within delegated authority level
  • to maintain separation of duties Executive Head, Head of School and School Business Manager will sign Order Pro-forma, Purchase Order and Invoices to be passed for BACS authorisation and payment.
• managing all contracts and SLAs
• ensuring the effective implementation of financial systems / procedures contained in a financial management handbook (even in the absence of key staff)
• considering and responding promptly to recommendations in school audit / inspection reports, and advising governors of results and any remedial action required
• implementing school pay policy and appointment procedures
• managing, monitoring and reviewing the range, quality, quantity and usage of all available resources in order to improve pupils' achievements, and ensure best value
• managing the work of the finance and administration team so that an efficient and effective administrative and financial service is provided to the school
• managing the tendering arrangements on behalf of the governors, liaising with the LA, as appropriate

Be a member of the Senior Leadership Team (SLT) at the school and contribute to the strategic direction of the school on all aspects of school administration, including finance, personnel, and premises management. Specifically to, and under the overall direction of the head teacher:

• design, develop and manage effective financial administration procedures, including responsibility for compliance with financial regulations
• provide specialist advice and guidance to SLT and governors on national and local guidelines / policy / statute
• interpret matters of policy / procedure / statute to ensure the school's compliance, and initiate appropriate action arising
• ensure there is a handbook containing information and a description of financial systems and procedures for all staff with financial management responsibility (internal controls handbook)
• ensure that financial records are maintained that can provide auditors and inspectors with explanations they consider necessary (audit trail)
• monitor all accounting procedures and resolve any problems, including the ordering, processing and payment for all goods and services provided to the school; the operation and regular reconciliation of bank accounts; maintenance of an assets register; and preparation of invoices, collection of fees and other dues, and recovery of bad debts

• prepare annual estimates and regular reports on income and expenditure, monitor accounts against budgets and report on the financial state of the school to the governors
• oversee the spending of the budget so that funds are spent as governors agreed, that there is scrupulous financial probity, and that audit recommendations and the financial requirements of the LA's delegation of powers are implemented
• closedown accounts and liaise with education finance and auditors
• prepare any required financial returns for the DfE, LA and other central and local government agencies within statutory deadlines
• support the head teacher in bringing greater openness and transparency to financial matters
• help the leadership group incorporate genuine financial forward-planning
• look for opportunities for the school to bid for funds, contributing to and leading bids as required
• maximize income generation within the ethos of the school through letting of the school premises and development of the school facilities for out-of-school use
• make recommendations to the head teacher and governors on the spending of repairs and capital budgets, according to an agreed development plan

• wherever possible, and once authorised, oversee the spending of these funds
• oversee tendering arrangements on behalf of the governors, liaising with the LA as appropriate
• liaise with contractors and maintenance staff
• ensure improved service, value for money, and fitness for purpose
• identify the need and be responsible for securing appropriate licences and insurance
• ensure the maintenance of accurate and current inventories of all assets (inventory)
• liaise with the LA on the provision of a comprehensive payroll service ensuring that salary payments are
  1. only made to school employees;
  2. made in accordance with appropriate conditions of employment; and
  3. only made for services provided to the school
• lead, manage and develop the support staff who provide administrative support to the school, through:
  • line management (this will include regular meetings, mentoring, co-ordination, monitoring, appraisals)
  • developing a programme of training for the administrative team
  • overseeing the work of the administration team so that an effective administrative service is provided to the school

The responsibilities of the department heads, who have been allocated a budget to manage. include:

• complying with the Schools' Financial Regulations and Standing Orders
• signing, annually, Appendix 1 - Register of Business Interests and Appendix 6 - Declaration of Understanding Schools' Financial Regulations and Standing Orders
• complying with governors' requirements for effective systems of internal control to ensure financial probity and safeguard all the resources delegated, granted or entrusted to the school
• planning, monitoring and evaluating their budget, managing expenditure and any source of income attached to that budget

• ensuring that:
  • spending decisions adhere to the school's spending and virements policy and are within delegated authority
  • the school's best value policy is adhered to and that best value is obtained on all expenditure
  • all orders are:
    • completed using the school's proforma order form and given to the school business manager
    • raised on the financial system as a commitment before the order is placed with the supplier
    • submitted with the specified number of quotations required for that level of spending
    • to maintain separation of duties Executive Head and Head of School and School Business Manager will sign Order Pro-forma, Purchase Order and Invoices to be pass for BACS authorisation and payment.
• monitoring the budget delegated to them, in conjunction with the school business manager, to ensure the budget is not overspent
• monitoring spending decisions to ensure improved outcomes for pupils and value for money for public finances (ie, the school's delegated budget)

• To provide support and guidance for the Co-Heads on all matters relating to the maintenance of school premises and grounds, security and health and safety and advise the Governing Body accordingly,
• To monitor and revise the premises elements of the Accessibility Plan,
• To inspect the premises and grounds annually and prepare a report on any issues identified and a proposed order of priorities for maintenance and development, for the approval of the governing body,
• To approve the costs and arrangements for repairs, maintenance and redecoration within the budget allocation and to oversee the preparation and implementation of contracts and advise the Finance Committee on related expenditure,
• To be aware of the respective responsibilities of governing body and LA in relation to premises, to ensure that the LA is informed of any matters for which it has responsibility and to monitor such issues in order to ensure that appropriate action is taken,

• To undertake an annual safety and security audit of the premises and report on same to the governing body and to ensure that the school complies with health and safety regulations,
• To report findings of inspections and audits to the Co-Heads and liaise with him/her to ensure that action is taken as appropriate,
• To seek advice from the LA as appropriate,
• To prepare a lettings and charges policy for the approval of the governing body and to monitor and evaluate the implementation of that policy,
• To consider and make recommendations on risk management and insurance arrangements with regard to vandalism and other premises related matters.
• To consider the COVID-19 risk assessment and have regard to the procedures and safety of all users of the premises.

Finance, Personnel and Pay

Pay Sub-Committee

Resources

Futures