Income

The schools financial procedures provides maintained schools with guidance on a range of financial management processes that are set out as individual sections.

The following Financial Regulations seek to ensure that all official income collected at Schools is properly receipted and banked promptly and intact either to the School's Local (direct credit) Bank Account or to the LA’s Main Account, as appropriate.

Requirements concerning the writing-off of uncollected official income are also covered to ensure compliance with the Accounts and Audit (England) Regulations 2015.

Income regulations

Income raised by Schools accrues to the School's Budget and is additional to their formula and other grant allocations and balances. Schools may raise income from a range of different sources, except where the activity puts the School's Budget Share at risk.

All systems for the collection and recording of monies due to the LA for payment into the LA Main Account or the School's Local Bank Account where applicable shall be approved in writing by Ealing LA. Schools must maintain records of all sums due, by either the raising of an invoice through the corporate debtor’s system or by an alternative approved invoicing system.

Each Headteacher shall supply Ealing LA at the end of each financial year, with such particulars of all monies due as may be required by them to record correctly all sums due to the LA. Also, each Headteacher shall supply at the end of each financial year, detail of individual debts that are proposed for write off.

Ealing LA shall be notified promptly of all monies due to the LA under contracts, leases, tenancy and other agreements, conveyances and other arrangements entered which involve the receipt of money and the Chief Finance Officer (CFO) or their representatives along with Schools Accountancy shall have access to the original documents or relevant particulars.

Acknowledgement for money received on behalf of the LA shall be given by the issuing of a receipt signed by a designated School Employee using an official form approved by Ealing LA.

All official receipt forms, tickets, documents, and vouchers representing money or having a money value, which are printed to acknowledge income due to the LA, shall be ordered and issued under arrangements agreed by Ealing LA. The documents referred to in this instruction shall be kept securely and records of use maintained.

Manual systems or cash receipting machines used for the purpose of receipting official income shall only be used in accordance with procedures agreed in writing with the CFO or their representatives.

All sums of official income received by School Employees shall be banked intact and without delay to the appropriate account.

The headteacher, or an employee designated by them, shall keep an accurate and chronological account of all receipts and deposits into the LA Main Account or the School's Local Bank Account or passed to Ealing LA and shall keep any other records as may be required by the LA. This also includes the completion of the paying-in slip, including the particulars of each cheque and the reason for the income.

Official money received shall not be used to cash personal or any other cheques.

Headteachers must make all reasonable efforts to ensure that income due to the School or to the LA (e.g. school meals) is collected. Where such efforts have failed, details of outstanding debts should be referred to Ealing LA.

Once identified, no debt may be cancelled except by full payment, or by writing-off in accordance with approved procedures. The Headteacher shall submit regular reports to the Governing Board (GB) of amounts proposed for write-off. The debts shall be formally considered and endorsed by the GB and recorded in the minutes. A schedule of proposed write-offs shall be submitted to the LA.

A credit note to amend a debt can only be issued to correct a factual inaccuracy or administrative error in the calculation and / or billing of the original debt.

Adequate arrangements for the separation of duties shall be made by the Headteacher in relation to the control of arrears and the collection and banking of income and the preparation and monitoring of accounts.

No money due to the LA over £10,000 plus VAT shall be written off without the written authority of the CFO or their representatives and approval of the Cabinet. Subject to the written approval of the CFO or their representatives, the Director for Children and Adults Services:

• Authorising the write-off of any loss of money not exceeding £10,000 including VAT
• Approving the abandonment or remission of any claim for money due to the LA when the sum does not exceed £10,000 including VAT provided that in either case writing off, and abandonment or remission is not due to fraud, theft or irregularity by an employee or governor of the school.

For write offs from SAP, these invoices may be written off by the Headteacher as soon as the write off becomes apparent in line with financial regulations. These write offs must be declared at year end to Ealing LA.

Income from the sale of assets purchased from the School Budget Share or Delegated Funds can be retained by the School and spent for the purpose of the School. Where the asset was purchased from non-delegated funds or is owned by Ealing LA, the LA will decide whether the School should retain the proceeds.

Scale of charges for services shall be reviewed at least annually by the GB. This shall also include the school’s charging policy.

Schools will be required to apply proper procedures for the accounting and collection of VAT on fees and charges arising from fund-raising activities and the sale of assets.

Contact

Schools accountancy service, SchoolsAccountancyServices@ealing.gov.uk