Audit Objectives - School
1. Salaries and Wages
To ensure that:-
- all charges to the school budget are valid; adequate arrangements exist for the completion and authorisation of salaries documentation;
- adequate arrangements exist for the monitoring of salary costs to the school budget.
2. Budgetary Control
To ensure that:-
- adequate and effective procedures are in place for the preparation, monitoring and control of the school’s budget;
- schools in a deficit budget position have adequate plans in place for the future recovery of any overspend;
- financial information given to Governors, Senior Management and budget holders is accurate and timely.
3. Local Cheque Account
To ensure that:-
- the local cheque account is being operated in accordance with the LEA’s Extended Bank Account scheme, by undertaking a test-check of transactions;
- regular bank reconciliations are being carried out;
- the use of petty cash is appropriately recorded and controlled;
- UK legislation regarding VAT, Construction Industry Tax and payments to individuals is being complied with.
4. Reserved Creditors
To ensure that:-
- expenditure is accounted for in the correct accounting year, so as not to distort the school’s year-end carry-forward figure.
5. Ordering Procedures
To ensure that:-
- adequate controls exist for the completion and authorisation of orders;
- the provisions of the LMS Scheme of Delegation are being complied with;
- payments are made only in respect of goods and services received, and have been properly certified as such;
- there is an adequate division of duties in the ordering and payment procedures.
6. Procurement of Large Valued Goods and Services
To ensure that:-
- the Authority’s Standing Orders are complied in the tendering and awarding of high value contracts;
- quotations are routinely obtained in order to achieve value for money.
7. Inventory
To ensure that:-
- the school’s assets and equipment are appropriately recorded on an appropriate inventory record;
- adequate steps are in place to ensure the such items are held securely;
- a physical check of all inventory items is undertaken annually, and the results of this check reported to the Governors;
- appropriate procedures are in place to authorise the disposal of surplus items and their subsequent removal from the inventory record.
8. Leasing of Equipment
To ensure that:-
- all qualifying leases are approved by the LEA beforehand.
9. Register of Business Interests
To ensure that:-
- a register of business interests is maintained for all Governors and any staff with influence over purchasing (e.g. budget holders);
- this register is updated annually to take into account changes in individuals’ personal and business interests.
10. Governance in Schools
To ensure that:-
- Governors have fulfilled their responsibilities under the LMS Scheme of Delegation;
- accurate and timely financial information is provided to the Governors regularly as an aid to effective decision making;
- delegation levels are established in writing and are reasonable;
- the roles and responsibilities of Senior Management, finance staff, Governors and their constituent sub-committees are set out in writing.
11. Form 7 Pupil Statistics
To ensure that:-
- pupil census data provided to the LEA by the school is accurate;
- such data is correctly used by the LEA in the calculation of the school’s annual budget share.
12. School Private Funds
To ensure that:-
- arrangements are made for the proper administration of unofficial funds in accordance with the LMS Scheme of Delegation;
- accounts for unofficial funds are subject to an annual audit carried out by a person of appropriate experience and independence, having regard to the size and complexity of the fund;
- audited accounts are presented to the Governors on an annual basis.
13. Income – General
To ensure that:-
- income is received in all appropriate circumstances;
- income received is suitably recorded and controlled;
- income collected is promptly banked and recorded on the school’s accounting system;
- VAT is accounted for in all appropriate circumstances.
14. Invoicing Procedures / Reserved Debtors
To ensure that:-
- the school’s invoicing procedures are adequate;
- invoices are promptly raised for relevant debts;
- outstanding debts are routinely identified and followed-up;
- VAT is charged in all appropriate circumstances;
- the reserved debtors return is completed correctly to ensure that all income due is accounted for in the correct financial year.
15. School Trips
To ensure that:-
- trip contributions are collected in full from all participating pupils;
- trip contributions received adequately cover associated trip expenditure.
16. Lettings
To ensure that:-
- income is collected in full for all lettings of the school premises;
- consistent charges are made that are subject to regular review;
- VAT is accounted for on non-regular sports lettings.
17. Security of Assets / Insurance and Risk
To ensure that:-
- cash held on the premises is retained securely, and within established insurance limits;
- adequate arrangements exist for the banking of income.
18. School Meals Provision
To ensure that:-
- income due from pupils for school meals is properly recorded and accounted for accurately;
- bad debts are routinely pursued;
- LEA procedures are followed with regard to the writing off of bad debts;
- free meals are given only to pupils with current authorisations;
- free staff meals are properly authorised, and the cost ultimately recharged to the school budget.
19. System Security / Access Rights
To ensure that:-
- SIMS access is given to current staff only, and access levels afforded on a ‘need-to-do’ basis;
- access levels are established so that there is an adequate division of duties between the processing of financial transactions and the signing of cheques;
- the school is appropriately registered as a data user under the Data Protection Act 1998;
- data is regularly backed-up as part of a disaster recovery plan.
AUDIT OBJECTIVES – COMMUNITY EDUCATION
20. Receipts and Bankings
To ensure that:-
- fee income is appropriately recorded and banked in full;
- the establishment performs an adequate reconciliation of receipts issued to bankings made.
21. Budgetary Control
To ensure that:-
- adequate and effective procedures are in place for the preparation, monitoring and control of the delegated community budget;
- there is a clear separation of community funds from school funds;
- establishments in a deficit budget position have adequate plans in place for the future recovery of any overspend;
- financial information given to Governors, Senior Management and budget holders is accurate and timely;
- transfers to the school budget in respect of shared costs are fully justified and authorised by community staff beforehand.
22. Fee Remission Scheme
To ensure that:-
- the termly fee remission claim is accurate;
- claimants have provided adequate supporting documentation to demonstrate their eligibility to remission under the LEA Scheme.
23. FEFC Funding
To ensure that:-
- FEFC funding is received in full, and is satisfactorily accounted for.
24. Community Class Programme
To ensure that:-
- income is collected from all persons attending community classes;
- enrolment forms (Learning Agreements) are completed by all enrolees;
- registers are maintained to a satisfactory standard for all classes.
25. Refunds
To ensure that:-
- refunds given are accurate, and made only in valid circumstances.
26. Part-Time Lecturing Staff
To ensure that:-
- appropriate procedures exist for the certification of staff claim forms;
- salary charges to the budget are checked for accuracy and validity.
27. Calculation of DCB Allocation
To ensure that:-
- the establishment holds sufficient backing information to support activity levels provided to the LEA and used in the calculation of the annual community budget share.
28. Lettings
To ensure that:-
- income is collected in full for all lettings of community facilities;
- consistent charges are made that are subject to regular review;
- VAT is accounted for on non-regular sports lettings.
29. Security of Assets / Insurance and Risk
To ensure that:-
- cash held on the premises is retained securely, and within established insurance limits;
- adequate arrangements exist for the banking of income.
30. Community Private Funds
To ensure that:-
- arrangements are made for the proper administration of unofficial funds in accordance with the DCB Notes of Guidance;
- accounts for unofficial funds are subject to an annual audit carried out by a person of appropriate experience and independence, having regard to the size and complexity of the fund;
- audited accounts are presented to the Governors / Community Association on an annual basis.
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