School Finance Manual

The School Finance Manual is a comprehensive reference guide to the financial procedures for schools in North Yorkshire.

The School Standards and Framework Act 1998 (Section 48) requires the financial controls within which delegation works to be set out in an LMS Scheme for the financing of schools prepared by the Local Authority and approved by the Secretary of State for Education.

The LMS Scheme is the funding framework for schools. It sets out the financial relationship between the Local Authority and the maintained schools it funds. Within it are requirements relating to financial management and associated issues which are binding to both the Local Authority and the schools. The Scheme is updated to reflect Governmental advice. The North Yorkshire Scheme can be found in Chapter 2 of the School Finance Manual.

The LMS Procedure Rules form a part of this overall control framework. They aim to facilitate service delivery by setting out best practice for the administration of all financial matters within schools. This, then, ensures a high quality of financial information thereby enabling better decision making. They should not be viewed as a barrier to executive action and are constantly kept under review to ensure that they remain relevant to the day to day activities of schools.

The School Finance Manual contains both of the above documents as well as giving more detailed information in relation to particular areas such as budgets and forecasting, banking arrangements, VAT and charging for school activities. The manual is produced by North Yorkshire County Council for its schools. It is updated to reflect any changes of a local or national nature.

Other guidance and policies for schools are produced by the Local Authority outside of the LMS Scheme and LMS Procedure Rules. These are either reproduced within the Schools Finance Manual or are referred to with links as to where they may be found on the cypsinfo website.

Introduction - the school finance manual in context

Chapter 1 - List of Contacts

Chapter 2 - LMS Scheme & Procedure Rules (Annex F in this document was updated in Nov 17)

Chapter 3 - Revenue Budgets & Long Term Financial Forecasts (updated August 2021)

Chapter 4 - Capital Expenditure (updated September 2021)

Chapter 5 - Banking Arrangements (updated September 2021)

Chapter 6 - Purchasing (updated August 2021)

Chapter 7 - Ordering (updated August 2021)

Chapter 8 - Payment of Invoices

Chapter 9 - Construction Industry Scheme (updated July 2021)

Chapter 10 - Catering

Chapter 11 - Income

Chapter 12 - Hire of Educational Premises         Chapter 12 - Hire of Educational Premises (word document)

Chapter 13 - Private & Commercial Sponsorship (updated July 2021)

Chapter 14 - School Private Funds (updated June 2021)

Chapter 15 - Earmarked Funds (updated August 2021)

Chapter 16 - Value Added Tax (updated March 2021)

Chapter 17 - Governors

Chapter 18 - Bank Reconciliation (updated September 2021)

Chapter 19 - School Accounting

Chapter 20 - Payroll (updated August 2021)

Chapter 21 - Security

Chapter 22 - Audit Arrangements

Chapter 23 - Insurance Services to Schools

Chapter 24 - Charging for School Activities (updated August 2021)

Chapter 25 - Glossary of Terms