1. Budget Monitoring - Forecasting Ann Sambrook Education Financial Services EFS

2. A – Z has ALL documents from EFS http://www3.hants.gov.uk/education/schools/efs/occschoolsfinance.htm Add the above link to your favourites http://www3.hants.gov.uk/education/schools/efs/occschoolsfinance.htm

3. Future Training New user training courses in progress Finance E store HR Existing user training – survey of requirements

4. Budget Monitoring Two Key Controls Pupil Regular Numbers Reports

5. Budget Monitoring Forecasting

6. Budget Monitoring - Forecasting 1.Key processes 2.Getting to know your IBC transactions 3.Getting to know your BPS report 4.Forecasting

7. Key Processes Month End processes Salary reconciliation Update the current budget

8. Getting to know your IBC transactions Drilldown into transactions to date Ledger codes as per budget? Transactions as expected? Check out commitments too How is the total made up? Will all help you to forecast

9. Getting to know your BPS Report From IBC upload file you created From budget marked as current & selected when creating the report You enter Calculated 1 Calculated 2 Calculated 1. % Budget = Actuals as percentage of Revised Budget 2. Projected Outturn = Inc/Exp to Date + Calculated from forecast + Adjustment 2. Variance = Revised Budget – Projected Outturn

10. Using the BPS comments boxes Comments boxes available – 1.Ledger code level 2.CFR code level 3.Summary Report

11. Using the BPS comments boxes 1.Ledger code level For yourself For your EFS adviser Important facts about expenditure to date About the forecast you have made Pull through from previous report Add simple date – Oct or 02/10

12. Using the BPS comments boxes 2. CFR code level Summary of significant ledger code issues For Everyone 3. Summary level Overview of current situation Changes since last report For Everyone

13. Forecasting

14. Like budget creation, but for less time Should be more accurate as the year progresses By period 11 result should be very close to outturn Makes budget setting for next year easier Regular forecasting and keeping notes

15. Forecasting Why is it important that it is accurate? To ensure the SDP can be implemented To enable leadership to make decisions To keep the budget on a three year track To avoid deficit or excess balances

16. Forecasting 1.Salaries 2.Earmarked funds 3.Rates 4.Service Orders 5.Off Setting accounts 6.Contracts 7.General income / expenditure

17. Forecasting - Salaries 80% of expenditure Salary reconciliation Update employee scenario Ask for any known changes

18. Forecasting - Salaries Employee scenario in current budget Current Re-post

19. Forecasting - Salaries

20. Forecasting – Earmarked Funds Example - CERA 1.Forecast as spent. Clear commentary that this funding is earmarked as spent & whether any still available to spend. 2.Alternative don’t forecast as spent and show variance – comment needed that this is expected to roll forward. Harder to monitor overall school position

21. Forecasting - Rates Invoicing plan in place should be correct IBC data taken after 1 st month? Need to add an extra month Should be the variance amount Keep a note of monthly charge

22. Forecasting - Rates Download on 1 st of the month First payment for the next month has already been deducted – but doesn’t appear in actuals to end of last month PO commitments are as at the day you run the report in IBC

23. Forecasting – Service Orders Is budget amount still correct ?

24. Forecasting – Off setting entries Trips / sale of goods Transactions to date – do they offset? Time delays Forecast accordingly Catering Income plus UIFSM grant Is grant level realistic? Sept to March estimate based on last year

25. Forecasting - Contracts Grounds maintenance Cleaning OCC services Insurances

26. Forecasting

28. Ask budget holders plans Awareness of actual expenditure to date Best value Add explanation to notes

29. Forecasting -Under spend to date What caused this? 1.Forecast at the same rate as budget 2.Forecast at the same rate as to date 3.Total spend still the same as budget

30. Forecasting – Underspend to date Ledger code level note Reasons for variation to date & forecast CFR level note Summarise if significant Note any uncertainties in forecast Overall level note Is a leadership decision required ? Same process for overspend to date

31. Is the forecast logical? Comment – Spending to budget / expect full spend

32. Forecasting – More complex Combination service order and general expenditure Total Budget 3,500 Service order 2,000 General expenditure 1,500 Service order spending to plan – 1,000 left – on PO General expenditure under spend, only 500 spent to date Forecast 400 of general expenditure Automatic forecast 6/12ths of budgeted 3,500 i.e. 1,750 1,750 - 400 = 1,350 so enter adjustment of -1,350

33. Forecasting - Income Funding changes SEN Early Years Pupil Premium – expenditure to match Sports Grant – expenditure to match Lettings, donations etc.

34. Forecasting -Capital Remember to include capital in IBC upload Create a variant for monitoring reports Update progress on latest project Useful record of issues Revenue transfer to capital

35. Forecasting The only certainties in life are ……………. Things change, including budgets Unlikely everything will be to budget Year end outturn should match projections You should know the reason for any differences

36. Commentary High level comments 1.What is the position compared to the budget for the year ? 2.How does this effect the three year plan? 3.What has changed since your last report to governors? 4.How is the excess balance being reduced?

37. Commentary - uncertainties Forecasting is not an exact science There will be uncertainties in report I have assumed (x) but if (y) happens the out turn could be higher / lower Warnings of over / under expenditure in individual areas Material variances – three year plan

38. Revised budget Revised budget – Expect match budget monitoring out turn and budget. Update Pupil numbers

39. Budget Monitoring Report Period 6 report due by 17 th October July returns significant numbers overdue

40. Questions