Budgets - year end balance
The schools financial procedures provides maintained schools with guidance on a range of financial management processes that are set out as individual sections.
A central feature of the delegation of the control of school budgets to governing board (GB) is the ability to carry forward any underspend and over-spend at the financial year end into the next financial year.
Year end balance regulations
The size of any under-spend or over-spend at the year-end shall be determined solely by reference to the central statutory accounting system.
School budget underspend
Where a GB under-spends the school budget allocation for a financial year, it shall retain and carry forward the total under-spend into the next financial year. Separate rules relate to devolved capital balances.
Where the total surplus balance exceeds a defined level of the school’s annual individual schools budget share, this excess will be subject to clawback:
- 8% primary school
- 5% high school
The GB may be requested by Ealing LA to provide explanation on the intended purpose/s of any surplus balance.
School budget overspend
Where a GB overspends its budget allocation for a financial year, the sum will be a first charge against the succeeding year's budget allocation. Where an agreed deficit is in operation, the proportion to be repaid in a subsequent year will be a first charge against that year’s budget allocation.
Contact
School accountancy service, SchoolsAccountancyServices@ealing.gov.uk