Updates on School Finances: Deficits, Recovery Plans, and Scheme Revisions
The Department for Education has implemented changes regarding deficits in school finances, requiring submission of Deficit Recovery Plans and restricting the time frame for deficits. Schools are advised to avoid deficits, prepare recovery plans, and utilize available resources. Additionally, revisions have been made to the Scheme for Financing Schools including updates on financial forecasts, planning for deficit budgets, and guidance changes. The latest version of the Scheme is available for reference online.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Finance Finance Administrators and Administrators and Bursars Group Bursars Group 12th November 2020 Deficits and Recovery Plans Revisions to Scheme for Financing Schools
Deficits and Deficits and Recovery Recovery Plans Plans The DfE have reduced the time period allowed to be in a deficit from 5 years down to 3 years. The DfE have instructed that a Deficit Recovery Plan is required for any deficits over 5% of DSG Allocation
Deficits and Deficits and Recovery Recovery Plans Plans Schools should try to avoid going into a deficit position Must submit a Deficit Recovery Plan before going into a deficit Must show why you will go into a deficit and how you intend to come out of the deficit Maximum time period allowed to be in a deficit is three years Use all the resources available to you, e.g., LMS Team, HR, Admissions.
Revisions to Scheme for Financing Schools Latest version of Scheme for Financing Schools (August 20) can be found on the Luton Learning Grid/Schools and Colleges/Schools and Staff/Finance Documents for Schools/Policies and Guidance/Scheme for Financing Schools (PDF document) The DfE have made the following updates to reflect current policy positions and changes in legislation Changes are as follows :- Paragraph 1:2 added :- The most recent directed revisions are detailed below
Revisions to Scheme for Financing Schools Paragraph 1.2: Changes made to the guidance now reads For details of earlier directed revisions please see Annex D , section 20. Annex D covers the following :- Efficiency and Value for Money/SFVS/Fraud/Register of Business Interests/Borrowing by Schools/Loan Schemes Other changes include paragraph 4:3 - Submission of Financial Forecasts paragraph 6:5 - Planning for Deficit Budgets Section 16 gives the changes from April 20 version in more detail
