AUDIT in Education

Leicestershire County Council web-site has been updated to bring you a vast amount of additional information and advice.

On the site you will find information on how the Internal Audit Section works along with more general advice:

Also on the site are a number of Self – Assessment questionnaires that schools can download and use: -

And many other documents are available for you to access.

Past issues of this bulletin are available within the web-site.

At the recent round of LEA Registrar / Bursar / Secretary meetings we introduced a document compiled by the Education Audit Team on the subject of identifying and making efficiency gains.   This document contains over 80 examples of areas where schools may be able to make efficiency gains, or indeed direct cash savings, by changing, automating, streamlining, and in some cases doing away with, current procedures.   Many of these examples have been identified by us as working well in other individual schools, and the purpose of this document is to index all of these ideas together and to raise all schools’ awareness of it.   Of course, not all suggestions will work in your particular case, but we are confident that there will be several worthy of further consideration.

The document on efficiency gains can be accessed on the LCC web-site

We would be pleased to hear of any other ideas that you may have that we could incorporate in this document.   Clearly, the need to retain effective internal control is important when systems and procedures are being changed, and we are only too happy to offer further advice in individual cases.

The new financial year is a good opportunity to undertake some general housekeeping functions:-

* reconciling the VAT control account

* deleting any historic cost centres that are no longer used (e.g. old trip cost centres)

* deleting any ex-employees as users from the SIMS system

* considering cancelling any old unpresented cheques

* considering cancelling any old outstanding orders

* inputting new year pay scales, NI rates, superannuation rates, allowances etc. onto SIMS Personnel

* reviewing any outstanding debts (and referring to Governors if any are considered uneconcomical to pursue)

* updating the register of pecuniary interest (if not updated in the past 12 months)

* linking devolved capital cost centres to devolved capital specific ledger codes

* ensuring that there are no (old) unreconciled credits showing on the SIMS bank reconciliation

A Schools should look to have a consistent year-end date.   There is no LEA stipulation to what this date should be and it is commonplace to find year-end dates of 31st March, 31st July, 31st August and 31st December (amongst others).   Schools should select a year-end date that is workable for themselves, and prepare accounts up to that date each and every year.   By having a standard year-end date, and preparing accounts for a consistent 12 month period, it enables comparisons to be made year on year.

Just to remind schools that registrations now have to be renewed on an annual basis, rather than three-yearly as before.

A number of schools have been audited recently who had let their registration lapse.   The importance of continuous registration cannot be stressed enough, and is a legal requirement under the 1998 Act.

Unfortunately, the Information Commissioner does not send out renewal reminders, hence it is the school's responsibility to renew at the appropriate time.   It is advised that schools check to ensure that their registration is up-to-date.

Schools are strongly advised to set up payment with the Information Commissioner by direct debit.  Payment by direct debit means that you do not have to take any action to renew your registration in subsequent years and would reduce the risk of making payments to bogus companies.

The National Westminster Bank has now formally agreed to allow schools to include more than one source of income into a single sealed Kings collection bag. These sources of income could include the General County Fund (Dinner Money), Local Cheque Account (School Money) and Private Fund Money.

This may result in large efficiency savings for schools, savings in staff time not having to physically bank, savings in mileage, security benefits etc.).   Even if schools do not have dinner money / a CTSS-funded dinner money collection, it may well pay them to pay for a Kings' collection which could still collect LCA and private fund money.

Schools wishing to take advantage of this service should bank with the National Westminster bank and complete an ‘enclosure form’

Q  If a member of my school staff transports a pupil or pupils in their own vehicle are they insured?

A. If the member of staff has ‘business insurance’ cover on their private Insurance, then yes they are insured. Not only should the school check the relevant member of staff’s insurance details but also a check on the staff member’s driving licence, Car tax and MOT, prior to allowing a member of staff to transport a pupil in their own vehicle.

Does your school possess/hire/use a Minibus?

Are you aware that the law has recently changed regarding who may and may not drive a vehicle - different criteria for drivers dependant upon when they passed their driving test (prior/after 1.1.1997)?

Are you complying with the required checks (ensuring the possession of a correct licence category, clean driving licences, vehicles are roadworthy etc.)?

Are you aware there is a copy of the Corporate Vehicle and Driver Safety Policy on the LCC web-site?