output specification: finance march 2013

Output Specification: Finance

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March 2013


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1 Contents 1 Contents ................................................................................................................................................................................................................. 2

2 Document Ownership .............................................................................................................................................................................................. 2

3 Definitions .............................................................................................................................................................................................................. 3

4 Scope...................................................................................................................................................................................................................... 6

5 Data Room Documents ............................................................................................................................................................................................ 9

6 Service Requirement...............................................................................................................................................................................................14

7 Performance Indicators...........................................................................................................................................................................................69

2 Document Ownership

Document signed off by Anisa Darr, Head of Finance on 19th February 2013

Document Owner John Hooton, Deputy Chief Operating Officer, LBB (Head of Finance)


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3 Definitions The words in this Finance Output Specification shall have the meanings attributed to them in the Agreement where the context so permits and unless

otherwise stated.

In this Finance Output Specification, unless the context otherwise requires, the following words and expressions shall have the meanings given below:

Term Definition

ACR means AXIS Cash Receipting

AIM means AXIS Income Management

BACS means Bankers Automated Clearing System

Barnet Homes means Barnet Homes Limited, (Company registered number 04948659) whose registered office is at Barnet House, 1255 High Road, Whetstone, London N20 0EJ

CAFT means the Authority's corporate anti -fraud team

CFO means the Authority's Chief Finance Officer who also fulfi ls the role of S151 Officer

CFR means Consistent Financial Reporting

CHAPS means the Clearing House Automated Payment System

CIPFA means the Chartered Institute of Public Finance and Accountancy

CIS means the Construction Industry Scheme as set out in the Finance Act 2004 and the Income Tax (Construction Industry Scheme) Regulations 2005 or any subsequent scheme which may supersede it from time to time

Council Tax means the tax levied and collected by each bil l ing authority in accordance with section 1 of the Local Government Finance Act 1992 (as amended from time to time)

Council Tax Benefit means a benefit provided for by virtue of the scheme under Section 123 of the Social Security Contributions and Benefits Act 1992 (as amended from time to time) which is administered by the bil l ing authority in the form of a payment of payments by the authority to the

entitled person or a reduction in the amount of Council Tax payable by the entitled person or both Council Tax Support means the scheme operated by local authorities which replaces Council Tax Benefit from 1 April 2013 and provides relief to an individual

on low income in respect of their Council Tax l iability.

CRC means the Authority's cabinet resources committee

DCLG means the Department for Communities and Local Government

DfE means the Department for Education

DFG means Disabled Facilities Grant DPR means an Authority delegated powers report


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Term Definition

DSG means the Dedicated Schools Grant

EASEN means Exceptional Additional Special Educational Needs

FICO means Finance and Controlling

FFP means Authority's financial forward plan

Funding Strategy Statement shall have the meaning given to it in FIN010 below

GLA means the Greater London Authority

HMRC means Her Majesty’s Revenue and Customs

Housing Benefit means the payment made by local authorities on behalf of an individual on low income in respect of housing costs

HR means the Authority's human resources department HRA means the Authority's housing revenue account

HWBB means the Health and Well Being Board

IAB means the Investment Approval Board

IAS means International Accounting Standards

IFRS means the International Financial Reporting Standards

ISA 260 means International Standard on Auditing (UK and Ireland) 260

LAAP means the Local Authority Accounting Panel

LACSEG means the Local Authority Central Spending Equivalent Grant

MTFS means the Authority's medium term financial strategy

NLWA means the North London Waste Authority which is a statutory waste disposal authority for seven boroughs of which the Authority is o ne and whose primary function is to manage the disposal of waste collected by these seven boroughs and to promote waste minimisati on

and recycling. NNDR means National Non-Domestic Rates being a tax on properties which are not used for domestic purposes

ONS means the Office of National Statistics

OSC means the Authority's overview and scrutiny committee

QRW means the quarterly return of wages and salaries RAS means the Resource Allocation System

REFCUS means the Revenue Expenditure Funded from Capital Under Statute

RM means Research Machines

S151 Officer means the Officer appointed by the Authority in compliance with its obligations under section 151 of the Local Government Act 1972

SAP means the SAP – Enterprise Resource Planning (ERP) Software

SEN means special educational needs

SeRCOP means the Service Reporting Code of Practice

SLT means the service leadership team


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Term Definition

SMT means the service management team

SOA means a statement of account

Statement of Investment Principles

shall have the meaning given to it in FIN010 below

The Barnet Group means the Authority's trading company, Thebarnetgroup Limited, (Company registered number 07873964) whose registered office is at Barnet House, 1255 High Road, Whetstone, London N20 0EJ and which is parent company to Barnet Homes

YPLA means the Young People’s Learning Agency


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4 Scope The Service Provider shall at the Service Transfer Date take over the delivery of the finance service as described in this Output Specification (but not including those items listed as "out of scope" below).

Financial Services

The Service Provider shall provide the following services:

1. Closing and Monitoring:

The Service Provider shall be responsible for the SoAs, advising the finance department and the organisation on Technical Accounting treatments / changes and issues from the Code of Practice, implementing the IFRS, producing and presenting finance and performance monitoring reports to the Council Directors Group and the CRC, managing the external audit and ensuring an unqualified report and submitting returns to the DCLG (revenue outturn, QRW, etc).

The Service Provider shall be responsible for accurately maintaining the cashbook and carrying out bank reconciliations. 2. Exchequer:

The Service Provider shall be responsible for accounts receivable (debt collection, cashiers and cash collection)

The Service Provider shall be responsible for accounts payable (administering payments on the Authority’s behalf) 3. Financial Support Teams - The Service Provider shall provide finance support to:

adult and children’s services (including schools accountancy and the schools Traded Service)

environment, planning and regeneration departments central Authority services (such as the chief executive directorate, the commercial directorate and the corporate governance and deputy chief

executive directorate of the Authority)

The Service Provider shall provide a comprehensive range of accounting, revenue and capital budgeting, financial planning, quarterly monitoring, advising

on scenario planning, compiling statistical trend analysis, forecasting, payment processing, cash collection, debt collection and related accountancy

functions on behalf of the CFO to the Authority’s services, directors, heads of service, budget managers and elected Members.

Strategic Finance


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The Service Provider shall ensure the fulfilment of the Authority’s, and the CFO, statutory responsibilities including (but no t limited to) the setting of a

balanced budget, maintenance of adequate levels of reserves and balances and maintaining the Authori ty’s cash flow. The Service Provider shall undertake

the following strategic areas:

Forward Planning and Technical: The Service Provider shall coordinate the authority’s budget setting process and production o f medium term financial strategy, capital programme monitoring and analysis of funding and grant settlement matters;

Strategic Projects: The Service Provider shall provide finance services for the One Barnet transformation programme and regeneration programme; and

Treasury, Pensions and Taxation: The Service Provider shall maintain and update the Authority’s treasury management strategy, monitor the Authority's Pension Fund, produce the Pension Fund accounts and provide advice on tax and VAT matters.

The Service Provider shall carry out the finance service's statutory functions in accordance all relevant legislative and regulatory frameworks (as amended

and updated from time to time including (but not limited to):

Local Government Act 1972

Local Government Finance Act 1988

Local Government Acts 2000, 2003

Accounts and Audit Regulations 2011

Audit Commission Act 1988

Authority’s Constitution

relevant financial regulations

Best Value Accounting Code of Practice and Service Reporting Code of Practice for Local Authorities

Code of Practice on Local Authority Accounting in the United Kingdom

CIPFA Code of Audit Practice

Localism Act 2011

Schools Finance (England) Regulations 2011


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The Service Provider shall use reasonable endeavours to meet the key objectives of the service which are:

Managing a successful budget process engaging with all stakeholders;

Providing financial advice and support to the One Barnet Programme;

To enable financial information to be transparent and accessible to citizens of the Authority; Timely and high quality financial information for improved decision making; and

The provision of high quality assurance to all stakeholders on a timely basis.

Services not in Scope

The following roles and activities shall be retained by the Authority:

The role of statutory S151 Officer and deputy S151 Officer.

Strategy and decisions relating to the strategic direction of the Authority.

Finalisation of the budget document and MTFS

Finalisation of policy documents

Final liaison with external auditors


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5 Data Room Documents The parties recognise and agree that the inclusion of the Data Room documents in Schedule 1 (Output Specification) is for inf ormation only and is not

intended to give rise to legally binding rights and obligations between the parties except where these documents are specifically referred to in Section 4 or

6 of this Output Specification.

Data type File name File contents Function/s related to it File type

Strategy

Policy

FIN_Strategy_Business Planning 2012-13 – 2014-15 - Medium Term Financial Strategy

FIN_Strategy_Business Planning 2012-13 – 2014-15 - Treasury Management Strategy (Appendix 6)

FIN_Financial Regulations_May 2011

Sets out how the Authority will structure and manage its financial resources in the medium to long

term to ensure they are deployed effectively to achieve corporate objectives.

Sets out how the Authority will manage its investments, cash flows, money market and capital market transactions;

Sets out how the Authority

undertakes financial forward planning, annual budget setting, budget monitoring and closing of the accounts – setting out the

responsibilities of Authority, the Authority's cabinet (and cabinet committees), the CFO (Deputy

Chief Executive), Corporate Directors, Heads of Service and Managers and governs the way

FIN001 - Strategic Finance and Financial Services

FIN007 - Corporate Reporting

FIN001 - Strategic Finance and Financial

Services

word

word

pdf


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Business Planning

Procedure documents

FIN_Strategy_Business Planning 2012-13 – 2014-15 - Policy_Reserves and balances

policy (Appendix 9) FIN_LAAP77_Local Authority Reserves and Balances_Nov 88

Fin_Policy_Debt Policy_Mar 08

FIN_Strategy_Business Planning 2012-13 – 2014-15

FIN_Accountancy Procedures Manual

day to day financial administration

is conducted and financial controls are exercised

Sets out the Authority’s approach to reserves and balances.

Provides guidance to local authority chief finance on the establishment and maintenance

of local authority reserves and balances.

This provides the framework for a commercially orientated, consistent and cohesive approach

to bil l ing, collection and recovery across all Authority services

Business Planning 2012-13 – 2014-

Procedure for staff handling debit and Credit cards



FIN018 – Income (Accounts Receivable)

FIN002 - Financial Planning and Strategy

FIN001 - Strategic Finance and Financial Services

word

word

word

pdf

word


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Guidance

FIN_Guidance_Local Transparency A Practicitioner’s Guide to publishing local

spending data_Nov 2010 FIN_Guidance_Close of Accounts – Guidance for Budget Holders and Service

Managers _2010

FIN_Guidance_Close of Accounts – Guidance for Finance Staff _2010 FIN_LBB VAT Manual_2011

Fin_Guidance_Income Collection and Debt Management Guidance

FIN_Financial Guide for Schools

HRA Guidance

Procedures

Guide to publishing expenditure

Closing of accounts guidance for budget holders and service

managers

Closing of accounts guidance for Finance staff Guide providing information to

assist with compliance with the basic rules of VAT.

This document sets out a standard

approach to income collection

and debt management to be

adopted across all services within

the Authority.

provides specific guidance to

schools on details of Authority specific procedures and forms ; technical details for example

taxation and details of items not available elsewhere provides specific guidance on

FIN001 - Strategic Finance and Financial

Services FIN007 - Corporate Reporting



FIN 012 - VAT Accounting


FIN023 – Schools Finance Support Service (Traded Service)

FIN002 – Financial Strategy & Planning

pdf

pdf

pdf

pdf

pdf

word

Pdf

word


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Schools Finance Regulations

management of the Housing

Revenue Account provides specific guidance on management of Schools Finances

FIN002 – Financial Strategy & Planning

word

Process maps FIN_Process_general debtors

FIN_Process_dispute resolution

Process mapping for general debtors

Process mapping for dispute resolution



word

word

Performance data

Fin_Pension Fund Performance_june 2011

Fin_Pension Fund Performance_March 2011

Fin_Pension Fund Performance_December 2010

Fin_Pension Fund Performance_September 2010

This report advises the Committee of the performance of the

Pension Fund for the quarter January to March 2011

This report advises the Committee of the performance of the Pension Fund for the quarter

October to December 2010 This report advises the Committee of the performance of the

Pension Fund for the quarter July to September 2010

This report advises the Committee of the performance of the Pension Fund for the quarter March to June 2010

FIN010 – Pension Investment Management and Pension Fund

Administration

FIN010 – Pension Fund Investment Management and Pension Fund Administration

FIN010 – Pension Fund Investment Management and Pension Fund

Administration

FIN010 – Pension Fund Investment Management and Pension Fund Administration

Pdf

pdf

pdf

pdf


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FIN_Creditor Performance Data_2009-10

and 2010-11

Percentage of creditors paid

within 30 days

FIN019 – Payments (Accounts Payable) word

Service Level Agreements Fin_Schools Support Portfolio_2011/12

in SBM.doc

Traded Service Agreements

Schools Support portfolio which

contains details of service frequency of visits

Details of the Finance services

provided

FIN023 – Schools Finance Support Service

(Traded Service)

FIN018 – Income (Accounts Receivable) FIN 020 – Security Collections

word

pdf

Other documents referred to

in the service requirements section 6

FIN_Statutory_Statement-of-

accounts_2010-11 FIN_Pension Fund Annual report_June

2011 FIN_Scheme for financing Schools_jan -2010

Statement of Accounts

Annual Report

Sets out the relationship between

the school and the LA.

FIN007 – Corporate Reporting

FIN010 – Pension Fund Administration

pdf

pdf

Pdf


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6 Service Requirement The following table indicates the service requirements for the Finance function. The Service Provider shall adhere to the standards listed in the final column of the following table.

Reference Service Area Function Service Requirement Key volumes or frequency

requirement

Applicable service standard

FIN001 Strategic Finance and Financial Services

Financial Administration and Stewardship

The Service Provider shall work with the CFO to ensure good financial administration and stewardship on behalf of the general public and to ensure that the Authority's resources are managed in accordance with Legislation, financial regulations and guidance provided by CIPFA and

other relevant Guidance. The Service Provider shall ensure that as business practices , Legislation, financial regulations, GIPFA guidance and other relevant Guidance change

the Service Provider's procedures shall be updated with immediate effect. The Service Provider shall ensure that there are effective systems of

internal financial control in place including (but not l imited to) reviewing, maintaining and updating on an on-going basis the following:

the accountancy procedures manual;

financial regulations;

the scheme for financing schools;

the VAT manual;

the finance scheme of delegation; and

the recommended scheme of delegation for services (finance

responsibility section).

The Service Provider shall implement recommendations arising from internal and external audits in respect of services that the Service

On-going In accordance with: Legislation

Financial

regulations CIPFA guidance

Other relevant

guidance


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requirement


Provider controls. FIN002 Financial

Planning and Strategy

The Service Provider shall validate and challenge the assumptions and

information provided by services to ensure that the financial consequences of activities are fully evaluated and embedded within planning and decision making. The Service Provider shall support planning

and decision making by providing relevant and timely financial information. The Service Provider shall provide comprehensive, professional, timel y

(up to date) and accurate information and provide financial advice to services in relation to revenue budgets and capital programmes for the Authority, in l ine with the budget setting timetable and Authority

guidance. In addition to the finance service, the Service Provider shall provide:-

any activity reasonably included within the scope of a

professional financial planning service;

any activity which the Authority currently provides as part of its

financial planning service; and a level of service delivery in accordance with appropriate

professional standards and codes of practice. The Service Provider shall assist the Authority in the preparation and

maintenance of the financial strategy. The Service Provider shall provide information, advice and support to the

Authority (including budget holders, staff and schools) to including (but not l imited to):

Costing of:

o Commitments arising from existing policies; o Development costs of proposed changes in policy or

performance targets; o Savings from proposed changes in policy or


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requirement


performance targets; and o Proposed capital programmes and assistance with bids

for the IAB to ensure that all funding sources are identified;

Consultation with budget holder’s service management in their

preparations of: o Detailed budget projections in a format/template

agreed by the Authority;

o Detailed budget representing Authority policy / corporate plan objectives; and

o Full working papers where appropriate.

The Service Provider shall record, process and provide detailed information on agreed budgets and capital programmes to budget holders.

The Service Provider shall support the Authority in updating the HRA thirty year business plan and prepare the HRA revenue and capital budgets by reviewing and challenging the information provided and to

ensure that it is in accordance with proper accounting practices and the relevant Legislation. The Service Provider shall l iaise with Barnet Homes where appropriate and in particular in relation to the HRA.

The Service Provider shall review and challenge the information provided in The Barnet Group business plan.

As part of the annual business planning process, the Service Provider shall support the relevant services by reviewing the financial information required to agree the management fee payable to The Barnet Group for

incorporation in the budget in l ine with the budget timetable.

Annually

Monthly partnership meetings and

monthly meetings between respective finance heads for Barnet Homes.

Monthly meetings with Your Choice (Approximately half

(½) a day per month)

In accordance with housing revenue

account guidance


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requirement


The Service Provider shall review and report to the Authority on: The financial impact of the Authority's strategic priorities;

The financial impact on Service Delivery Plans;

Funding and funding substitutions on service capital

programmes and the Service Provider shall report all changes to the CRC as set out in the scheme of virements in the financial regulations.

The Service Provider shall provide on-going support to service SLTs to ensure decisions and priorities from a finance perspective are compliant with financial regulations/Legislation/Guidance and offer value for

money. This shall include (but shall not be limited to): advising on the use of funding and funding substitutions in

relation to the service capital programme and reporting all changes to the CRC;

reviewing performance indicators of Authority services to evaluate the finance impact of trends and advising the Authority

on such impacts; calculating and reviewing performance indicators;

responding to consultation documents / evaluating documents;

Contribute to the finance directorate's service plan; and

attending Authority / partnership meetings as the Authority's

finance representative (for example with The Barnet Group)

The Service Provider shall ensure that national and local policy is reflected in the schools budget and that Authority policy is supported by evidence. The Service Provider shall document the schools budget formula and present it for agreement by the schools forum each year. The Service

Provider shall ensure that the schools budget formula is within the government guidelines specified in the regulations. The Service Provider shall produce current supporting evidence in the form of a report to the schools forum (and published on the Authority's website) explaining the

In accordance with schools finance

regulations and any other national or local policies


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requirement


formula, backed up by a spreadsheet with the calculation embedded to give all schools' allocations and a summary by school. The Service Provider shall advise the Authority and its management

teams of government announcements, policy and statutory changes and their impact on the Authority and its finances.

FIN003 Financial Management

Budgets and Budget Setting

The Service Provider shall support the Authority in its preparation of the budget in accordance with the prevailing Finance Act and for approval by

the Authority's cabinet / the CRC and the Authority by the dates set. The Service Provider shall ensure that a balanced budget is completed

and approved within budget timetable deadlines. The Service Provider shall ensure that budgets are set for each Authority service. The Service Provider shall work with services, challenge the data

the services provide and check the validity of information provided to ensure that budgets are within the cash limit set by the Authority. The Service Provider shall work with Authority services to ensure that

actions required for meetings and throughout the budget process as set out by the Authority are met within the agreed timescales and in the specified format.

The Service Provider shall support Authority services in ensuring that they:

Construct their budgets for approval by challenging, checking the

validity of information provided by services and providing quality

assurance; and Are informed of their grant and funding all ocations (including

revenue and capital as appropriate). In setting budgets the Service Provider shall:

Balanced budget by 1st week in March (in

order for Council Tax bil ls to be sent out)

Process is usually run from June to January.


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requirement


Ensure inflation is applied appropriately where required;

Ensure budgets are in l ine with salary agreements/uplifts; and

Work with Authority services to ensure that efficiencies, income, service reductions, growth and pressures are reflected in the FFP

and MTFS. Ensure that confidentiality is maintained and budgets are

cleared with the S151 Officer.

The Service Provider shall support services by checking and providing the relevant challenge, to ensure that Authority and school budgets reconcile to HR headcount/establishment.

The Service Provider shall support the Authority by working with services to prepare and validate alternative budget motions as requested by councillors.

The Service Provider shall create and process virements (as per the financial regulations and cleared with the S151 Officer) to reflect agreed budget changes and ensure that an audit trail of adjustments is

maintained. The Service Provider shall ensure that budgets are accurately loaded onto the general ledger to the correct codes by dates agreed with the Authority.

The Service Provider shall ensure that i nsurance budgets are vired to the correct cost centres to reflect the actual spend for each cost centre. The Service Provider shall produce insurance budgets within two (2) weeks of

the information being received from the insurance team. The Service Provider shall work with the Authority's revenues and benefits team on the collection fund balances and tax base. The Service

Provider shall obtain authorisation from the S151 Officer as required for tax base and collection rate calculation. (The Service Provider shall comply with the details set out in the Revenues and Benefi ts Output

In accordance with finance regulations

In compliance with

the Revenues and Benefits Output Specification


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requirement


Specification in respect of the service requirements for this function area). The Service Provider shall l iaise with preceptors and levying bodies to

inform them of the Council Tax base. The Service Provider shall ensure payments to levying and precepting bodies are paid in a timely manner.

The Service Provider shall apply, where applicable, for capitalisation from DCLG (Gate 1 and Gate 2).

The Service Provider shall confirm payment amounts and dates with the GLA.

The Service Provider shal l provide financial forward summaries (budget book) within the agreed timescales.

The Service Provider shall assist with finance input into the Council Tax leaflet. The Service Provider shall produce a 5 year (minimum) capital

programme, which forms part of the budget process and shall include (but shall not be limited to) project spend and sources of funding.

FIN004 Costing, Modelling and Option Appraisals

The Service Provider shall assist the Authority in strategic and operational decision making. Budgeting

The Service Provider shall produce financial forecasts and financial models for strategic decision making and budget proposals and shall

Budgeting: Provision of forecasts and models to guide operational activity

as requested by the finance department


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requirement


provide tools to guide operational activity as requested by the Authority's finance department or Authority services. The Service Provider shall carry out options appraisals including (but not

l imited to) the development of financial baselines and the review of financial assumptions and the implications on the Authority’s budgets as requested by the Authority's finance department or Authority services.

Projects The Service Provider shall undertake financial evaluations for contracts as requested by Authority services and provide a written conclusion /

recommendation of the evaluation within five (5) Business Days of receipt of all the specified documentation or other such period as agreed with the requesting Authority service (such period to be agreed having regard to (inter alia) the complexity of the company structure, the number of

companies to be evaluated and whether the Service Provider is given advance notification of the request by the Authority service)

The Service Provider shall, dependent on the number of companies to be evaluated, provide an estimate within five (5) Business Days from the time the all the information requested has been received.

The Service Provider shall provide conclusion on the financial standing of the company and assessment of the financia l risk, ensuring that Experian reports and financial ratios calculated are correct and have used the right figures from the SOA’s.

The Service Provider shall assist the Authority in developing financial models to support business cases by providing challenge and validation of

the data to enable informed decision making. Modelling and other required financial inputs shall be provided within project timescales and produce accurate results

or Authority services. In l ine with project timescales In 2010/11 ninety-

eight (98) evaluations were undertaken for seventeen (17) contracts. Since April

2011 two hundred and thirty-six (236) companies were

evaluated for twenty (26) contracts


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requirement


The Service Provider shall support project managers in budget monitoring of projects by reviewing, checking and challenging the assumptions and information provided to enable informed decision making within the

timelines specified in the project plan. The Service Provider shall advise the Authority on the financial a spects

and implications of restructuring proposals including (but not l imited to); Calculating restructuring costs and advising accordingly; and

Processing virements as per restructuring proposals.

The Service Provider shall develop where necessary financial modelling techniques and conduct financial modelling as required for current and

future activity, including major service restructures. The Service Provider shall create, evaluate, update and maintain the RAS as required to ensure that the tool reflects service need in accordance

with the Personalisation Agenda. The Service Provider shall assist all Authority services in their analysis of

fees and charges where required by challenging and validating the

relevant information. With regards to adul t social care and health, for

example, this shall take account of Department of Health Guidance on

Charging for Residential Accommodation Guide (CRAG), S17 of the Health

and Social Services and Social Security Adjudications Act 1983,

Department of Health Fairer Charging Policies for Home Care and other

Non-residential Social Services and Fairer Contributions Guidance.

Frequency of

attendance varies depending on project – usually monthly

In accordance with Department of Health Guidance on

charging for residential accommodation, S17

of Health and Social Services and Social Security Adjudications Act


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requirement


The Service Provider shall analyse service proposals and assist in the formal approval of proposals. The Service Provider shall evaluate the financial impact of proposed

legislative changes/developments and shall advise the Authority on the implications. The Service Provider shall provide support to the Authority by providing

financial advice, challenging, checking and validating the financi al aspects of service based projects and attend project team meetings as agreed.

Schools The Service Provider shall research and model the impact of changes in schools funding and regulations on the Authority's children's service, schools budget and children's centres.

The Service Provider shall organise and analyse consultations with schools and respond to government consultations on behalf of the Authority

within the timescales provided. The Service Provider shall calculate academy recoupment and LACSEG when required with respect to the Authority and shall calculate the

impact and advise the Authority on any school funding changes The Service Provider shall collate data from different Authority sources for use in the funding formulae as determined by section 251 of the

Apprenticeships, Skil ls, Children and Learning Act 2009 (and associated Guidance) and school funding regulations.

The Service Provider shall maintain and update as necessary the local formula for distributing budgets to schools and other formulas with respect to the Authority (for example early years / children centres).

1983, Department of Health Fairer Charging Policies for Home Care and other

Non-residential Social Services and Fairer Contributions Guidance

In accordance with proposed legislative changes

In accordance with

school funding regulations

In accordance with section 251 of the Apprenticeships,

Skil ls, Children and Learning Act 2009 (and associated guidance)


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requirement


FIN005 Budget Monitoring

The Service Provider shall provide monitoring of all Authority budgets which shall include (but shall not be limited to) maintaining accurate, consistent and complete financial records and providing timely, correct, relevant information to the Authority and its services. In providing such

monitoring the Service Provider shall undertake tasks including (but not l imited to) obtaining projections, forecasts, budget maintenance and providing support to services on:

Projects -information on variances from budget to enable

analysis, comment and decision making;

Capital and revenue – updating and reporting on information on

variances from budget to enable analysis, comment and decision making; and

Capital funding/project slippage – reviewing capital funding /

project slippage and providing advice on maximisation of

resources relating to funding sources. The Service Provider shall coordinate the budget monitoring process in l iaison with the Authority’s performance team for reporting to service

management teams, the Authority’s directors group and relevant committees. The Service Provider shall ensure the provision of SAP budget and outturn

information (both revenue and capital), and salaries information within two (2) Business Days of period end.

The Service Provider shall update revenue and capital budgets on financial systems within fourteen (14) days of committee approval (including approval of virements).

The Service Provider shall provide challenge and validation of the financial information provided by revenue and capital budget managers and project managers to ensure accurate reporting. The Service Provider shall coordinate and collate the information across directorates for

May and March (Month 2 - May) and provisional outturn

April Quarters 1, 2 and 3 June

Monthly


25


requirement


presentation to SMTs/SLTs and for corporate reporting including at director and committee level. The Service Provider shall provide standard budget monitoring training to

newly appointed budget holders within four weeks of being notified by the Authority that new staff require training. The Service Provider shall maintain the chart of accounts or coding

structure for recording of financial accounts in accordance with CIPFA SeRCOP and shall ensure that the chart of accounts is accurately maintained and updated within ten (10) business days of the period end.

The Service Provider shall correct all coding errors as advised by the Authority or otherwise. This shall include (but shall not be limited to) all revenue spend funded from capital (REFCUS) in accordance with CIPFA

LAAP Bulletin 84. The Service Provider shall carry out full bank reconciliation activities every

month, as part of the cashbook function, for the main income account, three expenditure accounts and the income and expenditure account for the Pension Fund. The Service Provider shall ensure that bank reconciliations are complete and accurate and reconciled within ten (10)

Business Days of the month end. The Service Provider shall reconcile control accounts and monitor progress of control accounts and income reconciliations across the

relevant service areas. The Service Provider shall prepare and produce budget monitoring

information, in a pre-agreed format (subject to variation depending on which Authority team or department it is being presented to) by the deadlines set by the Authority. Presentation shall include, but not be limited to, the Authority’s directors group, statutory officers group and

No. of new starters variable

Monthly

Approximately forty-one (41) control accounts of which 28

are reconciled monthly, 12 quarterly and 1 annually

CIPFA SeRCOP

CIPFA LAAP Bulletin 84


26


requirement


the CRC The Service Provider shall provide a financial information service to departments to enable and enhance budget monitoring.

The Service Provider shall produce a budget monitoring timetable to enable key deadlines to be met and shall communicate the timetable to all relevant parties within one week of the committee dates being agreed.

The Service Provider shall prepare and di stribute monthly details of salaries to budget holders within two (2) Business Days of the start of

each calendar month and expenditure details for directorates within two (2) Business Days of the period end from SAP for services to complete within the required timescales to enable timely reporting.

The Service Provider shall prepare and distribute the capital monitor to project managers to complete and comment on within two (2) Business Days of the period end. This shall include (but shall not be limited to)

identifying slippage, additions, deletions and funding to capital projects/programmes. The Service Provider shall review the status of capital projects at least

quarterly and carry out all necessary checks and transactions. The Service Provider shal l coordinate and liaise with The Barnet Group (and other partnerships as agreed/necessary) regarding information to be

incorporated into the budget monitoring by agreed timescales.

The Service Provider shall provide information, advice and support for

revenue and capital budget monitoring to budget holders/project managers by validating the information provided and addressing queries arising from budget holder’s completion of the budget monitoring.

Monthly distribution to approximately two

hundred and nine (209) budget holders

Quarterly – Two (2) Business Days following the period

end Monthly – high level

monitoring Five times per year

Quarterly


27


requirement


The Service Provider shall produce a report in an agreed format for reporting to the Authority's corporate directors group and the CRC the forecast outturn positions throughout the year at the relevant specified times.

The Service Provider shall support the children’s service to prepare and report to the schools forum the position on the DSG and schools budget on dates specified.

The Service Provider shall review projections provided on an on-going basis and respond to reasonable requests as and when necessary to

ensure proper monitoring of budgets including (but not l imited to) verifying and where necessary challenging the projections submitted and obtaining explanations for significant variations in consultation with budget holders.

The Service Provider shall review and where required recalculate the bad debt provision and incorporate changes into the budget monitoring

process on a quarterly basis within ten (10) business days of the end of a quarter. The Service Provider shall obtain the quarterly control accounts from

Barnet Homes within ten (10) days of the quarter end to review and calculate the bad debt provision and incorporate this into the quarter forecast for reporting.

The Service Provider shall, in consultation with the budget holder, compile a cost centre/project summary incorporating specific issues, emerging pressures and risks for submission to and clearance by the

relevant SMT/SLT in l ine with the monitoring timetable. The Service Provider shall l iaise with directors and service management teams for budget challenge and attend SMT/SLT meetings to obtain

Quarterly


28


requirement


clearance of the service monitoring reports by the required deadlines. The Service Provider shall ensure that revenue and capital budgets are up to date on the financial systems within fourteen (14) days of approval by

committee or relevant service area.

The Service Provider shall make amendments to financial transactions requested in the financial system prior to the next period in full

compliance with the scheme of virements. The Service Provider shall seek prior agreement from the CFO/deputy

S151 Officer regarding the allocation of contingency monies. The Service Provider shall coordinate and action the monthly period close with the improvement and control team, closing and monitoring team

and Barnet Homes the seventh (7th

) Business Day after the end of each month (except month 12) which shall form part of the closing of accounts process.

The Service Provider shall manage the component parts of the schools budget relating to individual schools’ budget shares and reporting variances as necessary.

The Service Provider shall, in conjunction with project managers, produce capital tables for agreement including year to date spend and projections. The Service Provider shall be responsible for project profil ing

amendments. The Service Provider shall make amendments to capital programmes via

financial transactions requested in the financial system.

In accordance with the scheme of

virements in finance regulations

FIN006 Strategic

Projects

The Service Provider shall provide finance or project management

support (as set out below) to those projects which are of critical importance to the Authority, enabling it to deliver its business strategy.

Current Major

Project – ‘One Barnet’


29


requirement


The Service Provider shall support the Authority as a finance lead in delivering its major projects. Current examples of major projects are those contained with the regeneration schemes and, the "One Barnet"

transformation programme. In providing such support the Service Provider shall (inter alia):

The provide advice on the financial aspects of project

implementation (for example financial structure);

provide costing/modelling as required for options appraisal and

business cases; monitor the project spend (for example construction costs),

monitor outputs and project activity (for example number of

classrooms built); monitor outcomes (for example pupils on roll) and impact (for

example improved school results); attend at project team meetings and project board meetings as

required;

review the financial elements contained in committee reports

including use of resources and risk; and set up project codes.

The Service Provider shall provide a flexible and appropriately qualified

resource to be deployed to projects to enable project milestones and committee reporting deadlines to be met. In addition, the Service Provider shall provide resource to attend meetings as required by the lead officers on corporate projects.

Current Regeneration Projects : 6

FIN007 Corporate

Reporting

The Service Provider shall ensure financial information in reports to

external bodies, individuals, members and senior officers is accurate, consistent, complete and timely. The Service Provider shall ensure decisions are taken in accordance with the Authority's constitution, relevant financial regulations and the Authority's scheme of delegation.


30


requirement


The Service Provider shall produce capital and revenue monitoring reports and covering reports for committees in l ine with committee papers deadlines and the committee timetable.

The Service Provider shall assist the service on the financial aspects to be included in papers for the schools forum. The Service Provider shall attend school forum meetings as the

representative of the S151 Officer and shall present papers relating to financial matters on pre-arranged dates.

The Service Provider shall coordinate responses from Authority services and prepare an expenditure report for monthly publication by no later than the end of the following month in accordance with recommended practice produced by the DCLG.

In preparing an expenditure report the Service Provider shall have regard to the relevant codes of practice and Legislation, (currently ‘Local

transparency: a practitioners’ guide to publishing local spending data’ November 2010), the Data Protection Act 1998, Freedom of Information Act 2000 and the Environmental Information Regulations 2004 when preparing the information to be published.

The Service Provider shall prepare covering reports for external audit reports for the audit committee including (but not l imited to) grants audit, audit memorandum letter, annual audit letter, audit plan and

external audit fees and annual report to those charged with governance each in accordance with ISA 260. The Service Provider shall ensure that External audit is completed with a draft ISA 260 by the required deadline

(currently 31st

May) with an unqualified audit opinion. The Service Provider shall carry out all the required year end processes to prepare and deliver the annual SOAs report including (but not l imited to) HRA, collection fund and group accounts in accordance with Legislation,

As required

Annually

In accordance with recommended

practice from DCLG In accordance with relevant codes of

practice and legislation (currently: Local transparency: a

practitioners guide to publishing local spending data, Data Protection Act 1998,

Freedom of Information Act 2000 and Environmental Information

Regulations 2004


31


requirement


current guidance (currently 'The Code of Practice on Local Authority Accounting in the United Kingdom') and SeRCOP. In doing so the Service Provider shall (inter alia):

l iaise with and respond to external auditors; and

publish a notification to view the accounts.

The Service Provider shall prepare the SOAs to be reported to audit committee as follows:-

1. un-audited accounts currently by 28th

June 2. audited accounts currently by 28

th September

Prior to the close of accounts, the Service Provider shall provide appropriate and relevant training to budget holders and provide them

with guidance notes and deadlines to enable them to carry out their tasks throughout the accounts closure process. The Service Provider shall accurately complete the "Whole of

Government" accounts as required and by the deadlines set by the DCLG and shall ensure that clearance is given by the S151 Officer and the Authority's legal and procurement teams. The Service Provider shall

submit whole of government accounts, grant claims and returns, statutory, statistical and other returns as required and in l ine with externally set deadlines.

The Service Provider shall, in accordance with the Audit Commission Act 1988 and the Accounts and Audit Regulations 2003 and 2011:

l iaise with the S151 Officer and place the agreed advertisement

in the local press; and make available documents requested for public inspection to

persons entitled to inspect.

Code of Practice on Local Authority Accounting in the United Kingdom and

SeRCOP

Audit Commission Act 1988 and

Accounts and Audit Regulations 2003 and 2011


32


requirement


The Service Provider shall clear all documents to be inspected with the Authority’s legal and procurement teams and the inspection of documents shall be at the Authority's offices.

The Service Provider shall prepare accurate capital and revenue monitoring reports (including (but not l imited to) the special parking account, the HRA and the dedicated schools budget) in consultation with budget holders and service management teams and the Authority’s

performance team. The Service Provider shall present such reports as are required by the Authority to the CRC as specified in the Constitution, currently:

o 2 summary monitoring reports at the beginning and end of the financial year (months 2 and provisional outturn)

o 3 detailed monitoring report (quarters 1, 2 and 3) o 1 outturn report

The Service Provider shall support the Authority's departments in producing updates on the progress of savings as requested by challenging

and validating the data provided. The Service Provider shall include in the monitoring report any such information as requested by councillors (for example the reporting of

expenditure for agency and consultancy staff). The Service Provider shall use the monitoring reports to obtain approval from the CRC for new capital projects or changes to existing projects in

accordance with financial regulations. The Service Provider shall obtain appropriate approval of revenue

virements including reporting to the CRC in accordance with financial regulations. The Service Provider shall accurately calculate and report the Authority’s

May and March (Month 2 - May) and

provisional outturn April) Qtrs 1, 2 and 3

June

Authority’s reserves and balances policy and LAAP Bulletin 77


33


requirement


balances position to the CRC and have regard to the Authority’s reserves and balances policy and LAAP Bulletin 77 (Local Authority Reserves and Balances) – the current one being issued in November 2008.

The Service Provider shall, where required under the constitution, prepare DPRs and all relevant committee reports including (but not l imited to) budget overview and scrutiny reports.

The Service Provider shall where required, review and provide financial clearance of DPRs and reports to committees by the required timescales - currently five (5) Business Days (clearance where DPR/Committee Report

is supplied fully completed to Finance). The Service Provider shall attend committee meetings (including pre-meetings) where relevant and required either as the representative of the

S151 Officer or to support a report by presenting the report, providing explanation or answering questions.

The Service Provider shall respond to councillors' requests for information. The Service Provider shall, through and in consultation with the Authority,

respond to enquiries from the press within the timelines advised by the Authority's communications team. The Service Provider shall report in accordance with agreements under

section 75 of the National Health Service Act 2006 and attend the mental health partnership board and learning disability partnership board to present the finance report as per the agreement and respond to

questions. The Service Provider shall assist the Authority in reporting the agreement under s256 of the National Health Service Act 2006 and shall present the

Minimum quarterly attendance

Quarterly or Annually

Quarterly

Section 75 of NHS Act 2006

Relevant guidance


34


requirement


finance report to the health and wellbeing board as per the agreement. The Service Provider shall respond to government and/or CIPFA benchmarking requests for information within the timelines set.

Returns The Service Provider shall prepare all statutory, statistical and other actual returns and statements in accordance with relevant Guidance and

deadlines (statutory, government departmental or otherwise) including (but not l imited to):

Capital Payments and Receipts;

Capital Outturn;

Capital Estimates Returns;

Revenue Actuals;

Quarterly Accrued Revenue Expenditure;

Revenue Outturn;

Personal Social Services Expenditure; and

Section 251 Budget and Outturn Statements (as required under

Section 251 of the Apprenticeships, Skil ls, Children and Learning Act 2009)

The Service Provider shall complete the QRW return liaising with income and treasury for interest figures.

The Service Provider shall prepare benchmarking and other statistical returns or surveys as required by the Authority (for example CIPFA or ADASS statistics).

The Service Provider shall provide quarterly agency/consultancy reconciliations for performance reporting.

Quarterly

Quarterly Quarterly

Quarterly

FIN008 Financial Advice The Service Provider, if requested, shall act as the finance lead and provide financial advice on projects developed by the Authority.


35


requirement


The Service Provider shall evaluate the robustness and viability of financial recovery plans, business plans and project plans as required to ensure financial viability.

The Service Provider shall provide on-going, ad hoc financial advice as agreed with service directors at the beginning of the financial year and during each quarter.

The Service Provider shall attend senior management team meetings to raise issues arising of a financial nature and to provide challenge on

budget monitoring, budget proposal s, outturn etc. The Service Provider shall review performance indicators of Authority service to evaluate the financial impact of trends and provide advice to

service managers in relation to such trends. The Service Provider shall carry out financial evaluations on the financial

impact that changes in legislation may have on Authority services and shall report on such impacts to the Authority as and when required. The Service Provider shall provide support to Authority services by

providing financial advice and by challenging, checking and validating the financial data of service based contracts and agreements. The Service Provider shall provide advice on and assess the financial

impact of DPRs, committee reports, briefings and shall l iaise, where

required, with contributing Officers prior to providing finance clearance.

The Service Provider shall provide advice on capital financing as required in order to ensure that appropriate funding is available and the best use is made of resources.

Annually and quarterly


36


requirement


The Service Provider shall attend the HWBB financial planning group meetings to provide assistance as required. The Service Provider shall attend partnership meetings with the

Authority's recycling contractor and The Barnet Group to provide financial advice and challenge.

Monthly Monthly

FIN009 Treasury Management

The Service Provider shall provide treasury management services including (but not l imited to) the management of cash flows, banking, money-market and capital -market transactions, the effective control of

the risks associated with those activities and the pursuit of optimum performance consistent with those risks.

The Service Provider shall secure effective arrangements for treasury management in accordance with the CIPFA code of practice on treasury management and in accordance with the Authority’s standing orders and financial regulations.

The Service Provider shall manage the Authority’s use of capital and project financings, borrowing, investment and hedging instruments and techniques in l ine with the Authority’s treasury management strategy and

industry guidelines such as the CIPFA Code of Practice for Treasury Management in the Public Services, the Prudential Code for Capital Finance in Local Authorities: Fully Revised Guidance Notes for

Practitioners (2007) and the Practitioners’ Guide to Capital Finance in Local Government (2008). The Service Provider shall adhere to the Authority's treasury

management strategy which will be prepared by the Authority on an annual basis Cash management

The Service Provider shall manage all aspects of the daily cash flow of the

Two accounts – General fund and

Pension Fund accounts

CIPFA code of

Practice for Treasury Management in the Public Services,

Prudential Code for Capital Finance in Local Authorities: fully revised

Guidance notes for Practitioners (2007) and the Practitioners Guide to Capital

Finance in Local Government (2008)


37


requirement


Authority in a manner that ensures l iquidity and security of short term assets in l ine with the Authority's treasury management strategy. In providing such management the Service Provider shall undertake

activities including (but not l imited to): Management of daily cash flows and cash flow forecasting;

Daily dealing of cash including deposits and investments;

Facilitation of CHAPS payments;

Monitoring of cash balances including accurate monthly

reconciliations; Management and administration of the Authority bank

accounts; Cash flow forecasting and comparing forecasts to actuals;

Banking relationship management;

Ensuring counterparty l imits are not breached;

Updating deals in the Authority’s current treasury management

system (currently Logotech)

Investment and Borrowing The Service Provider shall:

Provide rigorous analysis of treasury management decisions;

Assist those responsible for treasury management decisions to

identify, measure and fully understand the implications of those

decisions particularly with regard to the risks to the Authority;

Ensure all transactions with counterparties are in compliance

with the Authority’s treasury management strategy; and

Ensure Compliance with CIPFA’s treasury management code.

Reporting

Daily Daily On average sixty-five

(65) per month Monthly

Approximately twenty-five (25) book transfers per month

Approximately four hundred and fifty (450) investments

per year

CIPFA’s treasury

management code


38


requirement


The Service Provider shall: Produce accurate and relevant reports so as to enable the

Authority to make informed financial decisions based on accurate reporting of treasury management balances on a daily, weekly, monthly and annual basis;

Properly record and account for the results of treasury

management decisions and transactions; Provide required information for month end and year end

accounting and in response to audit queries; Maintain full audit trails so that it can respond with a full audit

trail to any queries raised by the audit committee or scrutiny committee.

Report to CRC on Treasury activities on a quarterly basis

Capital financing The Service Provider shall:

Ensure compliance with CIPFA’s code on Prudential Framework

for Local Authority Capital Finance or any subsequent regulatory requirements;

Ensure that any capital financing is affordable, prudent and

sustainable and conducted in l ine with the Prudential

Framework and Authority’s prudential indicators, ensuring that there is no breach of the Authority’s prudential l imits.

The Service Provider shall undertake the above in accordance with

appropriate accounting practices and standards and within statutory and regulatory requirements.

The Service Provider shall calculate the minimum revenue provision for current and future years in l ine with Authority policy and the prevailing Finance Act.

Quarterly

As and when required

CIPFA’s code on Prudential

Framework for Local Authority Capital Finance, Prudential Framework

Authority’s minimum revenue provision policy and prevailing Finance Act


39


requirement


FIN010 Pension Fund

Investment Management and Pension

Fund Administration

The Service Provider shall manage and administer the Pension Fund in

compliance with the relevant Local Government Pension Scheme regulations and shall report to the Authority on the financial standing and performance of the Pension Fund account.

Governance The Service Provider shall review and refine on an annual basis (or as necessary), for agreement by the Authority, the statement of investment

principles relating to the Pension Fund (the Statement of Investment Principles).

The Service Provider shall review and update, for approval by the Authority, the funding strategy statement relating to the Pension Fund (the Funding Strategy Statement) in l ine with the triennial valuation of the Pension Fund.

The Service Provider shall publish a governance policy statement as approved by the Authority as the Administering Authority.

Management The Service Provider shall ensure that the Pension Fund is administered in l ine with the Statement Of Investment Principles and its Funding Strategy

Statement. In administering the Pension Fund the Service Provider shall (inter alia):

Review and monitor the performance of the Pension Fund's

investment managers against their benchmarks;

Monitor the performance of the Pension Fund as a whole against

the objectives of the Funding Strategy Statement; Perform the required reconciliations on a monthly basis to

ensure the accuracy of the fund; and Provide all required information to the fund actuary.

Annually


40


requirement


Reporting The Service Provider shall report on the Pension Fund in accordance with statutory and legislative requirements including (but not l imited to)

reporting fund accounting, reporting to the Pension Fund committee, producing an audited annual report and publishing documents required by statute.

The Service Provider shal l provide accurate reporting on the following: Quarterly reporting on Pension Fund performance to pension

fund committee; Production of annual Pension Fund report;

Quarterly ONS reporting.

The Service Provider shall provide the actuary with the information required for the completion of IAS 26 reports and triennial valuations. The Service Provider shall produce annual SOA and Pension Fund

accounts in accordance with a timetable which enables reporting of un-audited accounts to the audit committee and Pension Fund accounts to Pension Fund committee by 28th June, and audited accounts by 28th September.

Quarterly

Quarterly Annual

Quarterly

FIN011 Cash Book and

Banking

Cash Book

The Service Provider shall deal with all cashbook related activities which shall include (but shall not be limited to):

Dealing with all bank queries in a timely manner ensuring that these adhere to financial regulations;

Transferring bailiff fi les by 3pm on the day of receipt for

inclusion in the end-of-day processes in AXIS cash receipting (cleared and included in the relevant manual exception postings

as required);

Daily No later than 3pm on

date of receipt


41


requirement


Importing bank data to and from the Authority’s bank on a daily

basis using financial director for the Co-operative Bank and Santander and providing this to the improvement and control team in the Authority's information systems department to

upload into relevant receipting systems. The Service Provider shall carry out this function at the beginning of the Business Day

Obtaining at the start of each Business Day a positive pay report

from the Co-Operative bank financial director to identify any

cheques that are l isted where the value is shown as differs to that issued by the Authority.

Immediately investigating and, if necessary, applying stops to

cheques by notifying the Authority’s Bank by 12pm of stops to be placed and informing CAFT of the details.

Ensuring that the Authority's main bank accounts stay within the

agreed overdraft l imits as stated in the Authority's banking

contract. Maintaining bank mandates so that all signatories to the

Authority’s bank accounts are up-to-date and any changes notified to the bank immediately in accordance with the banking

mandate.

Ensuring all expenditure cheques (payments, Council Tax and

NNDR refunds/Housing Benefits/salary and wages) are shown as

cancelled on the cheque register and the expenditure reversed.

Ensuring that all monies banked by cashiers are correct and

reconciled to AIM daily and monthly to take account of cash in

Daily

Daily

By 12pm each day.

Thirty-six (36) stops applied in the first quarter of 2011-12

Three (3) main bank accounts

Daily and monthly reconciliations


42


requirement


transit. Processing chargeback (Streamline payments) transactions as

notified by Streamline on a daily basis including processing journals to the correct cost centres and general ledger codes and

notifying the relevant services by sending the chargeback letter to them.

Administering cheque control for cheques produced for

payments, salary and wages and Barnet Homes. The Service

Provider shall check all cheques against the list produced with the cheques, distribute and (where applicable) envelope cheques and pass them to the Authority's mail room for postage.

The Service Provider shall ensure that cheques over a specified value, currently thirty-five thousand pounds (£35,000), are signed for in accordance with financial regulations by two persons from the list of signatories on the mandate.

Ensuring that the cash receipt number is correctly assigned to

transactions.

Ensuring that income from credit cards, direct debits and unpaid

direct debits are correctly coded to the correct cost centres and

general ledger codes on a daily basis. Processing exceptions on AXIS relating to Direct Debits/BACS

payments for (Council Tax, rents, Housing Benefit).

Clearing of expenditure on a daily basis by clearing or posting to

the correct general ledger and cost/profit centre. This shall include (but shall not be limited to):

Daily

All transactions are

assigned a cash receipt number and are correctly coded

Daily


43


requirement


o overseas payments, merchant services and CHAPS which credit/debit the payments/salary and wages accounts;

o BACS fi les from the Housing Benefit, payments, salary

and wages accounts; o expenditure direct debits; and o expenditure reconciliation.

Ensuring all expenditure cheques (payments - including Council

Tax and NNDR refunds/Housing Benefits/salary and wages) are stopped and reversed in l ine with bank's automatic stop.

Clearing processing and posting all unidentified income to the

correct budget area within the main general account clearing on a daily basis.

Sorting and fi l ing daily statements relating to accounts (currently

eighteen (18) accounts) and distribute copies to business

partners (such as Barnet Homes).

Clearing Housing Benefit credits and allocating expenditure

relating to recalled/returned Housing Benefit BACS payments to the correct Housing Benefit codes

Reconciling income (including Pension Fund) between the

Authority’s bank account and the accounting system to ensure

that all items are posted correctly and that the accounting system balances with the bank statement. This includes daily reconciliation of the Co-operative, Santander, Internet / Touchtone, cashiers and PAYE.Net fund at least monthly.

Processing internal fund transfers requested by Authority

Daily

Currently eighteen

(18) accounts

Daily


44


requirement


services.

Pension Fund post with clearing.

Processing of all unidentified income relating to the Pension

Fund.

Checking and sending out BACS remittance advice

Administering and processing returned cheques relating to

income receipts and undertaking all the relevant transacti ons to ensure that these are correctly reflected in SAP.

Reconciling all items in the returned cheque suspense account

and balance with the bank statement

Ensuring that all the accounting system accounts receivable

transactions are correctly processed. This shall include (but shall

not be limited to):

o Ensuring that all transactions processed through AXIS

Cash Receipting / AIM are allocated daily. o Ensuring that all income transactions in cash receipting

reconciles to the accounting system daily. o Processing transactions to ensure that returned

cheques and bounced direct debits are correctly reflected in the relevant accounts using relevant reports.

o Processing transactions relating to unallocated income correctly to customer accounts daily.

Posting income received on staff banking slips into the

Approximately two thousand five hundred (2,500) per

month

Monthly


45


requirement


appropriate profit centre/general ledger no later than five (5) Business Days after the period end and production of the staff banking breakdown slip.

Applying stops to cheques as requested from the relevant

service using the Co-operative Bank's financial director and obtaining the necessary confirmation and advising the person(s) requesting the stop.

Daily clearance of suspense accounts.

Processing salary BACs credits resulting from recalled/returned

salary's back to net pay account.

Processing CHAPs debits relating to salaries unpaid back to net

pay account The Service Provider shall deal with cheque custodianship, control cheque stationery for the main bank accounts and receivership accounts and

ensure the secure storage of cheque stationery. The Service Provider shall maintain records in sufficient detail to enable an audit trail to be followed.

Approximately four hundred and twenty

(420) per month Approximately fifty

(50) in first quarter of 2011-12

As and when

required

FIN012 VAT Accounting The Service Provider shall provide advice to the Authority to ensure that it is fully compliant with all applicable taxation Legislation including (but

not l imited to) VAT and the CIS. This includes statutory reporting to and liaison with HMRC as well as ad hoc requests for information and submissions.

The Service Provider shall ensure submission of monthly VAT (including the partial exemption calculation) and CIS returns and the annual information return to HMRC are on time and accurate and supported by a


46


requirement


complete audit trail. The Service Provider shall provide the Authority with all advice required on taxation related queries and shall respond to ad hoc VAT claims. The

Service Provider shall ensure that advice provided is be up to date with legislative requirements and shall ensure that staff are aware of the VAT implications of actions within the service.

The Service Provider shall ensure that the Authority’s VAT manual for staff is kept up to date, accurate and accessible to all staff.

The Service Provider shall ensure that staff are briefed as required on taxation legislation that has an impact on Authority services and shall deliver training as requested.

The Service Provider shall provide all required information and supporting evidence required for the year end accounting process including liaison with and provision of information to the auditor.

The Service Provider shall provide VAT training to those that require it.

FIN013 Grants The Service Provider shall consider and investigate external funding opportunities and advise services accordingly for incorporating into the

budget setting or the on-going budget monitoring process. The Service Provider shall review grants in l ine with grant conditions to ensure correct application and maximisation of external funding

opportunities The Service Provider shall monitor grants as part of the budget monitoring process and consider opportunities for substitution where

required.


47


requirement


The Service Provider shall maximise the amount of grants that can be claimed with eligible expenditure as per the relevant grant conditions. The Service Provider shall, where relevant, prepare grant and other

claims or returns with supporting evidence on behalf of the Authority and liaise with government departments, internal and external audit in connection therewith including (but not l imited to):

Ensuring that all grant income is received and correctly coded;

Identifying areas where substitution can be made to maximise

grant income for the Authority in l ine with grant conditions;

Coordinating with internal and external audit to provide formal

annual training to grant compilers annually; and Liaising with the relevant services to ensure that the informati on

required to complete the return or claim is provided (for example Housing Benefit and Council Tax Benefit/Council Tax

Support).

Where grant claims, other claims or returns are prepared by Authority services, the Service Provider shall review these prior to submission to

ensure that they are correct and in accordance with the grant conditions or other guidance issued by the deadlines set out and in preparation before they are sent to the external auditors (where required).

The Service Provider shall review grant claims / returns for compliance with grant conditions and completeness and accuracy of completion prior to submission to the funding body by the deadlines set out and in

preparation before they are sent to the external auditors by the deadlines set out in the certification instruction. Authority services must provide grant claims at least five (5) Business

Days before the submission deadline. The Service Provider shall ensure that all grant claims are submitted to

Currently eight (8) as


48


requirement


the external auditors and/or relevant government department by the deadlines set in the auditor’s certification instruction (CI Index) and in accordance with the grant conditions.

The Service Provider shall make the necessary arrangements required to assist the external auditor in its audit of grant claims in a timely manner and respond where possible on the same day as the request.

set out in the CI Index

FIN014 Internal Audit The Service Provider shall agree on an annual basis the annual audit plan

and desired timing of audits. In the case of ad hoc pieces of work the Service Provider shall agree the scope of these audits within a reasonable timescale.

The Service Provider shall agree individual audit terms of reference and have staff available to respond to individual internal audits and implement action plans within a reasonable timescale in respect of those

areas that are in direct control of the Service Provider. The Service Provider shall make the necessary arrangements required to assist the internal audit team with its reviews by providing access to all

relevant documentation and ensuring the relevant staff are available for interviews and meetings. The Service Provider shall respond to internal audit draft reports within ten (10) Business Days. The Service Provider

shall make staff available to respond to follow up audits, where a recommendation was rated as a priority one (high) recommendation, a nd shall provide information to allow appropriate assessment of how the recommendation has been implemented. The timescales shall be agreed

between internal audit and the Service Provider.

FIN015 Risk Management

The Service Provider shall be responsible for the identification, assessment and prioritisation of strategic, reputational, corporate, project, operational and service financial risks.


49


requirement


The Service Provider shall use due dil igence and peer review in order to ensure that the risks are identified and assessed and shall develop mitigation strategies through (inter alia) the following:

Project reviews;

Reviews of budget proposals for financial risks;

Service risk associated with financial proposals

The Service Provider shall provide information to the Authority on identified risks, highlighting best and worst case scenarios, and shall provide action plans where possible on mitigating risk.

The Service Provider shall maintain and update on a regular basis (as the nature of the risks dictates or as and when a risk is identified) a

comprehensive service risk register in the format required by the Authority shall and report to the Authority in relation to any updates. The Service Provider shall notify the Authority of a risk as soon as i t

becomes apparent that it is l ikely to affect the objectives of the Authority. Other than when a risk requires immediate notification to the Authority, the Service Provider shall provide information on a monthly and quarterly basis regarding risks and incorporate such information into management

reports. The Service Provider shall ensure that staff have the required level of

awareness of the Authority’s risk management strategy and policy statement and corporate plan in order that operational, strategic, financial, reputational and project risks can be identified and mitigated.

FIN016 Systems Accounting

The Service Provider shall maintain the chart of accounts or coding structure for recording financial transactions and review this on an on-

going basis. The Service Provider shall maintain the SeRCOP and RECHARGES

SeRCOP


50


requirement


hierarchy in the financial system in accordance with the most up to date code (currently SeRCOP for Local Authorities 2011/12) produced by CIPFA.

The Service Provider shall maintain and update the fixed asset register throughout the year and as part of the process of closing the accounts and shall ensure that it is accurate.

The Service Provider shall work with services and obtain information to correctly process recharges relating to all relevant central support services in accordance with SeRCOP on a quarterly basis, ensuring that

the correct cost centres (receivers) are recharged. The Service Provider shall set up project codes within five (5) days , and emergency codes within twenty-four (24) hours, of receipt from the

project manager and after appropriate authorisation has been obtained from the CRC.

The Service Provider shall maintain settlement rules associated with each project on an on-going basis. The Service Provider shall forward requests for coding of new cost/profit

centres/internal orders to the improvement and control team within five (5) Business Days after appropriate validation checks. The Service Provider shall verify and post approved Purchasing Card

transaction journals parked by services in the financial system on a weekly basis. Posting shall be within five (5) Business Days of parked journals being approved.

The Service Provider shall oversee the operation of imprest accounts in accordance with financial regulations which shall include (but shall not be limited to):

Quarterly

Ongoing

Approximately one

hundred and eighty seven (187) active cards

Total cards = three hundred and fifteen (315)

SeRCOP


51


requirement


The undertaking of periodic checks to ensure that imprest

accounts reconcile to the original advance at any point in time and to ensure the single transaction limit is not exceeded;

the investigating of all incidences where the account does not

reconcile or transaction limits are exceeded and the taking of appropriate corrective action in respect of the imprest holder;

the reviewing each imprest level on a continuous basis and at

least annually.

The Service Provider shall coordinate and action the monthly period close with The Barnet Group which shall take place on the seventh (7

th)

Business Day after the end of each month (except following month 12 which shall form part of the annual closing of accounts process and except in the first few months of a new financial year in when the Service

Provider shall wait until the prior year has been closed before continuing with the monthly closure.) The Service Provider shall undertake reconciliations quarterly (and weekly

during the year end closing process) of FICO modules within the financial system to ensure that they are balanced. Where this is not the case, the Service Provider shall undertake all necessary investigations to identify and make the necessary adjustments to ensure that the two are aligned

and balanced.

Monthly

Quarterly (weekly

during year end closing process)

FIN017 Cashiers The Service Provider shall provide an efficient cashiering service processing cheques, cash and other payment instruments within twenty-four (24) hours of receipt. This is primarily for the Authority's revenue

services and its accounts receivable team but it the Service Provider shall also make this available as required on an ad-hoc basis by other services.

The Service Provider shall:

Provide for secure opening, checking, and distribution of

Approximately fifty-two thousand three hundred (52,300)

processed annually Daily

Daily


52


requirement


incoming post;

Process cheques and other payment instruments, through the

Axis cash receipting system, within the same day of receipt;

On a daily basis, scan the processed cheques and prepare these

for despatch to the Authority's bank;

At the end of each day perform a process that balances all

receipted items.

In addition to the processing of physical payments the Service Provider shall also provide the capability to receive payments via the telephone and process these using the Pay.Net functionality.

The Service Provider shall process post-dated cheques and negotiate the clearance of cheques received and drawn in a foreign currency.

On request from services the Service Provider shall physically count cash received and arrange for the secure banking of such monies daily.

The Service Provider shall investigate and resolve any unidentified cheques, l iaising with services and customers as necessary.

In addition to these duties the Service Provider shall prepare and make cash payments for disadvantaged children and adults and the reimbursement of imprests as requested by the respective services.

The Service Provider shall:

Liaise with the Authority’s bank to ensure sufficient cash is

available to fulfi l these requests and prepare these in accordance with a pre-supplied schedule or an imprest reimbursement claim, arranging for the secure collection and

Daily

Daily

Approximately fifty

(50) separate occasions per year


53


requirement


delivery of these cash payments to the recipients.

Receive cash bags from the security collection service on a daily

basis and process in readiness for despatch to the bank.

Ensure that procedures are maintained and that staff receive all

appropriate training and support to enable the provision of an efficient cashiering service

Interpret and implement legislative changes that impact on the

cashiers service and disseminate to staff and front l ine managers as appropriate.

Daily

FIN018 Income (Accounts

Receivable)

The Service Provider shall provide an efficient income recovery service

which maximises income recovery from initial customer creation through

to successful debt recovery in l ine with financial regulations and the

Authority's debt management strategy.

The Service Provider's recovery service provision shall include (but shall

not be limited to):

A full customer creation/amendment service, following the

agreed process and timescales and responding appropriately to

the requirements of both the external customer and the internal

services.

The production of invoices and reminders and the checking of

accounts to identify customers in arrears . Invoices shall be raised

and despatched within one (1) Business Day of sales invoice

being created

The taking of appropriate action to recover the outstanding

Sixty thousand (60,000) invoices

Seven thousand two hundred (7,200) credit notes issued

per year

Four thousand (4,000) per year

Twelve thousand five

hundred (12,500) reminders Twelve thousand (12,000) final notices

In accordance with Traded Service

Agreements


54


requirement


debt, including (but not l imited to):

o Contacting the customer using the most appropriate

and efficient method to facil itate debt recovery which

may include arranging, and attending home visits to

discuss outstanding debt with customers and agreeing

payment methods.

o Where these methods of communication do not work,

escalating the debt recovery process to include the use

of external debt collectors and the instigation and

progression of court proceedings.

o Communicating with customers and services to

progress debt recovery.

Commencing recovery for unpaid accounts no later than twenty-

one (21) days after reminder letter is issued (reminder letter

issued followed by a final reminder fourteen (14) days later)

Ensuring all income collected is accurately allocated to the

correct customer account on a timely basis.

Creating invoices and recovering debts for mortgages, equity

share properties, car loans and commercial properties.

Ensuring that procedures are maintained and that staff receives

all appropriate training and support to maximise income

recovery.

Interpreting and implementing legislative changes that impact


55


requirement


on accounts receivable and disseminate to staff and front l ine

managers as appropriate.

In addition to the matters set out above, the Service Provider shall

undertake:

All activities reasonably included wi thin the scope of a debt

recovery service.

debt reporting to agreed requirements on the following:

o Monthly statistics to the leader of the Authority on

performance of the exchequer function

o Monthly write off reports for debts under five thousand

pounds (£5,000) for agreement by the CFO and

retrospective reporting to CRC

o Annual write off reports for debts over five thousand

pounds (£5,000) for approval at the CRC (currently

January meeting)

Delivery in accordance with appropriate professional standards

and codes of practice.

The Service Provider shall annually review, in discussion with the

Authority, the Authority's debt management strategy and update

accordingly.

Monthly Monthly

Annually (usually January CRC meeting)

Annually

FIN019 Payments (Accounts

The Service Provider shall provide an efficient accounts payable service in

l ine with financial regulations. In addition to this core requirement the


56


requirement


Payable) Service Provider shall provide the following :

A full vendor creation/amendment service, following the agreed

process and responding appropriately to the needs of both the

vendor and the services. Vendor records shall be created /

amended, following the agreed process and responding

appropriately to the needs of both the vendor and the services.

The Service Provider shall create / amend records within forty-

eight (48) hours of being notified.

A payment maintenance function to ensure that rejected

payments are replaced within seventy-two (72) hours of the

corrected details being supplied.

A document storage facil ity to allow all documents to be

retained for the statutory period and allowing the retrieval of

individual documents within 24 hours.

Sufficient contact methods to ensure that all cus tomer enquiries

and requests for advice are dealt with within twenty-four (24)

hours.

Sound advice to managers, including at the most senior level and

supporting management reports/data fi les as required.

Improvement year on year in the number of payments, as a

percentage of all payments that are made electronically.

A function that returns a payment document to the relevant

Authority Service within twenty-four (24 hours) once an


57


requirement


error/inaction by the service that prevents the payment

document being processed has been identified.

All appropriate training and support to staff to minimise the

making of incorrect payments and to ensure that procedures are

maintained.

Interpretation and implementation of legislative changes that

impact on accounts payable and di sseminate relevant

information and training to staff and front l ine managers as

appropriate.

Any legislative changes

FIN020 Security Collections

The Service Provider shall provide a security collection service to collect and deliver cash and cheques from stakeholders within the Authority,

arranging for the banking of any monies collected. Schools The Service Provider shall use a secure vehicle to collect security bags

containing cash or cheques from schools located within the Authority on a rotational basis, pre-determined by an agreed timetable, and shall store such security bags securely until banked. This service shall form part of

the Traded Services portfolio with schools advising of their preferred collection days at the start of the financial year. The Service Provider shall arrange for the security bags containing cash

collected on behalf of schools to be securely transported to the Authority’s bankers in Kings Cross. The Service Provider shall operate a system of cheque control for cheques

collected involving the listing of details of all outgoing cheques prior to being despatched to the Authority's bankers using a secure courier.

Approximately two thousand four

hundred (2,400) visits per year to eighty-two (82) schools

located within the Authority. Twice weekly

Approximately one

In accordance with Traded Service

Agreements


58


requirement


Other establishments The Service Provider shall use a secure vehicle to securely collect and distribute cash, as and when required, between Authority establishments.

The Service Provider shall ensure that security procedures are maintained at all times to ensure risk to staff and cash is minimised.

The Service Provider shall be responsible for the security and safe keeping of keys, ensuring that records are maintained of all keys issued to staff. The Service Provider shall maintain service level agreements and

statistical information relating to performance and shall update the income manager as required.

The Service Provider shall, as and when requested, provide advice on security issues. The Service Provider shall issue controlled stationery as and when

requested by services, maintaining records in sufficient detail to enable an audit trail to be followed and periodic recharging to take place.

thousand seven hundred (1,700) visits per year to sixty (60) stakeholders located

within the Authority

As and when

requested

FIN021 Financial Administration-

Contracts

In conjunction with the Procurement team, the Service Provider shall

ensure that contracts for the finance service are accurately maintained,

managed and administered as per the finance (deputy chief executive

service) contracts register. Current contracts include:


59


requirement


Banking contract

VAT helpline contract

Treasury advisors

Pension Fund investment managers

Pension Fund advisors

Actuarial services

Merchant machines

Loans

The Service Provider shall process annual season ticket loans requested by staff on form SW90 within the number of days determined by the chief financial officer (currently ten (10) Business Days).

The Service Provider shall prepare quotations for applica tions received

from The Barnet Group (Barnet Homes) for right to a loan, service charge

loans and discretionary loans in accordance with the legislative

requirements and shall advise The Barnet Group (Barnet Homes) thereon.

The Service Provider shall produce quotations for applications, ensuring

the correct rate is used, in l ine with the latest guidance from the

Secretary of State within five (5) Business Days.

Twenty-six (26) loans issued in

2010-11 8 quotations

provided in 2010-11 5 Business Days

FIN022 Schools Finance Support Service

The Service Provider shall provide a support service to schools on a traded basis in accordance with that set out in the Authority’s portfolio of


60


requirement


(Traded Service) This is a face to face support service

Traded Services. The Service Provider shall be required to meet existing demand from schools in the first twelve (12) months of the Partnership shall vary

provision thereafter only in such a way as to allow schools to meet their reporting requirements to the local authority. The Service Provider shall deliver the following services to schools and

academies:

Helpdesk services –

a) The provision of a combined helpdesk including RM Finance

module, telephone advice and financial administration telephone advice.

b) RM Finance Module telephone advice on the use of the accounting module.

c) Financial administration telephone advice on budget spreadsheets, the requirements of the scheme and financial procedures.

Basic Accounts Service - On-site preparation of accounts,

production of budget monitoring reports, validation and processing of income, expenditure and petty cash disbursements, maintenance and reconciliation of computerised

accounts, completion of returns to the Authority, cash flow monitoring, preparation of year end procedures and returns, compliance with VAT regulations.

Accountancy Service - The basic accounts plus advice on

financial administration and management. Monthly budget

monitoring including detailed salary checking. Regular reporting

to head teachers and budget holders. Updating budgets and

Approximately

ninety-two (92%) of Authority schools

Approximately

forty-six (46) in 2012/13


61


requirement


l iaising with head teachers regarding budget virements.

Finance Support Visits. The Service Provider shall review the

financial policies and procedures against a checklist. The Service

Provider shall report at the end of the visit on areas of weakness

or suggest action.

Setting up Financial Systems and other services. The Service

Provider shall prepare financial policies and procedures and

undertake a pre-audit review. The Service Provider shall also

set up lettings systems and private funds and assist with end of

month problem solving and balancing RM Finance. The Service

Provider shall assist with the preparation of year end accounts

including balancing school accounts to the local authority and

provide one to one training on RM Finance.

Recruitment and Selection for Finance related posts. The

Service Provider shall prepare the advertisement , job

description and or/person specification, shortlist candidates,

prepare interview questions and/or tests and attend the

interview.

School based Induction Training and Workshops. An onsite one

to one training session for new head teachers and governors.

On site workshops for teachers, governors and finance staff on

financial procedures.

Attendance of Meetings of Governors – attendance at daytime

or evening meetings with governors to present budgets, budget

Between fifteen (15) and (20) meetings per year


62


requirement


monitoring reports, budget forecasts and general advice.

Budget Preparation - The Service Provider shall hold budget

preparation workshops in late February and early March to enable school teams to prepare their budget with advice from school accountants (ratio 1 to 4). The Service Provider shall issue salary/budget spreadsheets to schools attending these

workshops

School Business Manager Service - the Service Provider shall

provide a school business manager service for schools that

already purchase the accountancy service in order to provide

additional support to the head teacher in areas of the head

teacher’s choosing in order to relieve pressure and/or to provide

expertise in key areas. The service shall be provided on a time

allocated basis of one additional half day per week by the

schools accountant allocated to the school al though they may be

assisted by other colleagues with experience/expertise in some

areas.

The Service Provider shall offer schools support in six possible areas:

1. Management support

2. Finance/accountancy plus 3. HR administration 4. Facilities management

5. Risk management/health and safety 6. Procurement and contract management

Because of the time limited nature of the service it is necessary for the school to give an indication of priorities - preferably three areas

Annually

Annually


63


requirement


and recognise that the service cannot cover all six modules.

Services to Academies - Services similar to those described

above are available to Academy schools but the detail of the

service and the price will be subject to discussion as the

accounting regime of Academies is different to Authority funded

schools.

The Service Provider shall organise pooling arrangements for the

Authority schools for sickness and maternity. The Service Provider shall financially manage the pools to balance the budget. The pools shall not make a profit but in the event of

either pool making a loss this shall be recharged back to the participating schools.

The Service Provider shall prepare the following in accordance with the

corporate timetable for the production of the Traded Services for schools

(Authority maintained schools and Academies) portfolio:

A description of the services to be offered to schools in the

following financial year;

The prices those services are to be sold to schools for in the

following financial year.

The Service Provider shall deliver all Services within the standards, KPIs and PIs specified within the Output Specification or Traded Services agreement, and to satisfaction of the Traded Services client being either:

As specified in the Output Specification or Traded Service agreement;

As agreed between the Authority and the customer; or

As efficiently and effectively as practically possible

Annually Annually


64


requirement


FIN023 Schools Accountancy and Financial Administration

The Service Provider shall undertake all specific duties required for the administration of schools finances in accordance with the School Standards and Framework Act 1998 and other Legislation. The Service Provider shall maintain and implement the scheme for financing schools

as approved by the schools forum and the Authority. The Service Provider shall undertake all specific duties required for the administration of schools finances in accordance with Legislation and

regulations.

The Service Provider shall maintain and implement the scheme for

financing schools and provide a financial guide for schools setting out accounting requirements and good financial practice. The Service Provider shall update financial guide for schools on a regular

basis and at least annually, including with regards to VAT.

The Service Provider shall deal with telephone and email enquiries from schools regarding any aspect of the schools accountancy.

The Service Provider shall maintain the Authority’s accounts in relation to schools, including (but not l imited to) monitoring the accuracy of coding

as far as practical and investigating anomalies. The Service Provider shall provide advice to the Authority on the financial administration and management of schools and the completion of schools and the Authority’s financial statements of accounts and outturn statements.

The Service Provider shall maintain accurate information on all schools as required to complete statutory reporting duties, including (but not l imited to) the CFR return and grant certificates. The Service Provider

shall produce reports from the Authority’s accounts to enable schools to reconcile their local accounts.

Monthly


65


requirement


The Service Provider shall make all the required arrangements for new schools becoming maintained by the Authority or schools leaving the Authority to become academies.

The Service Provider shall prepare funding advances into schools' local bank accounts for all schools according to their chosen funding option. The Service Provider shall ensure that the difference between funding advances and annual budget share is held centrally for salaries according

to the school’s funding option.

The Service Provider shall maintain the schools' budgets in the financial

system and liaise with head teachers regarding budget virements. The Service Provider shall review schools’ forecasts and monitor school budgets and challenge schools so as to avoid year end deficits or revenue

balances in excess of DfE guidelines The Service Provider shall, in providing challenge where a deficit is

anticipated, provide financial advice on alternative strategies to assist in

bringing spend in l ine with budget.

The Service Provider shall ensure the funding advance for each school is

correctly adjusted based on excluded pupils and other changes to a

school’s funding.

The Service Provider shall implement the “money following the pupil”

regulations, making payments to other authorities or collecting payments

from other authorities as necessary.

The Service Provider shall ensure that the Authority's treasury

management team has up to date and accurate data with regards to

Forecasts due end of September and December

As and when necessary


66


requirement


known school cash flows to and from the Authority's cash pool.

The Service Provider shall maintain oversight of all grant income due to

the Authority for schools and shall manage the receipt and budgeting of

grants and other income sources.

The Service Provider shall ensure schools are reimbursed on a monthly

basis any VAT expenditure incurred.

Once instructed by the school on receipt of the bank mandate, the Service Provider shall advise the Authority’s bank to update authorised signatories

The Service Provider shall require the completion of all private funds audits with a report to the relevant chair of governors and head teacher.

The Service Provider shall prepare reports to the director of children services and chief financial officer on applications received for new loan requests and shall administer such loans including (but not l imited to)

arranging for payments, managing loan repayments and charging interest. The Service Provider shall undertake the financial administration required

to support the operation of children’s centres including (but not l imited to):

Determination and payment of funding to the school/centre’s

local and central accounts as necessary and adjusting during the year if necessary;

Entering data into the Authority’s income / invoicing system on

behalf of children’s centres at schools; and Undertaking monthly debtor management reporting on aged

Annual

Monthly


67


requirement


debts to the children’s centres

FIN024 School Funding The Service Provider shall distribute funding reports for schools and

eligible settings via the Authority's website together with supporting

documentation and reports throughout the year.

The Service Provider shall advise schools and settings on school funding

matters, especially on the free early education entitlement as required by

schools funding regulations.

The Service Provider shall advise schools converting from independent to

maintained status of their local authority budgets in advance of their

conversion. The Service Provider shall model the existing funding formula

using the anticipated characteristics of the new school.

The Service Provider shall organise, facil itate and clerk SEN and EASEN

contingency panels five (5) times per year.

The Service Provider shall maintain and update the funding and finance

web pages of the Authority website.

The Service Provider shall provide advice to the children’s service and

schools forum on school funding regulations and local formula decisions in accordance with schools finance regulations.

The Service Provider shall correctly administer school budgetary funding including (but not l imited to) data collection and calculation of budget shares, former standards funds, free early years provision and minimum funding guarantee to schools. This shall include (but shall not be limited

to) the reconciliation of YPLA funding for sixth forms and the pupil premium. The Service Provider shall administer payments relating to the above.

Currently five (5) times per year


68


requirement


The Service Provider shall prepare and revise the devolved funding formula for children centres.

The Service Provider shall calculate the funding for children in need in children's centres.

FIN025 North London Waste Authority

The Service Provider shall attend meetings of the NLWA's waste strategy board as required.

The Service Provider shall attend NLWA meetings on behalf of the S151 Officer as requested.

Monthly (internal)

FIN026 CIPFA Trainees The Service Provider shall employ and support trainee accountants.

Three (3) CIPFA

trainees


69

7 Performance IndicatorsThe Authority's KPI and PI requirements are listed in the following table, and full details of methodology, baseline data, targets and reporting frequency are

set out in Schedule 4 Payment and Performance Mechanism.

Function KPI or PI

Performance Indicators the partner shall be required to report against Current baseline

2012/13 year end

projections

Partner year 1 target

Variance to Budget

FIN

KPI 29

coming in on budget - % or £ variance to budget for the Authority Variation of

forecast or actual outturn from latest budget

0.43% 0% 0%

Budget Savings FIN

KPI 30

Percentage savings implemented: quality of budget planning process outcome 100% 100% 100%

Draft Statement of Accounts

FIN KPI 31

Production of draft Statement of Accounts and to pass to the Authority's external auditors, and provide External Audit with all working papers to the Statement of Accounts

31st

May

At least 31st

May

At least 31st

May

External Audit FIN KPI 32

External audit completed and draft ISA 260 produced

18th

July At least by 18

th July

At least by 18

th July

Unqualified

Audit Opinion

FIN

KPI 33

Unqualified external audit opinion and submitted in line with required deadlines Unqualified

audit opinion

Unqualified

audit opinion

Unqualified

audit opinion

User Satisfaction FIN KPI 34

Percentage of users satisfied (Agree / Strongly Agree responses). Second to lowest

quartile (3.51)

Second to highest quartile (3.52)

Upper Quartile

Budget Setting PI Budgets to be realistic and valid, no material errors or omissions in revenue budget or the capital programmes

100% 100% 100%

Budget Setting PI Budget templates to be completed and submitted in accordance with the guidance

provided by the Authority and within deadlines

100% 100% 100%

Budget Setting PI Agreed budgets to be reflected in the accounting system by dates specified by the

Authority

100% 100% 100%


70

Function KPI or PI


2012/13 year end

projections


Budget

Monitoring

PI Budget monitoring reports (salaries and cost/profit centre reports) prepared and

available to budget holders within two (2) Business Days following the period end

100% 100% 100%

Budget Monitoring

PI Budget monitoring information (after full consultation with budget holders and sign off of service director) to be available by the deadline set in the monitoring timetable

100% 100% 100%

Budget Monitoring

PI Budgets to be updated within fourteen (14) Business Days of committee agreeing changes save in the case where the budget is called before the OSC in which case the deadline for updating budgets shall be within fourteen (14) Business Days of the OSC's

review.

100% 100% 100%

Corporate Reporting

PI A monthly report for all expenditure over £500 be produced and published on Authority website each month by the required deadline

100% 100% 100%

Corporate Reporting

PI All returns, statutory or otherwise, to be prepared and submitted within agreed deadlines

92% 100% 100%

Costing, Modelling and

Options Appraisals

PI Written conclusion of the financial evaluation within 5 working days or deadline agreed by service

100% 100% 100%

Treasury Management

PI Compliance with the Authority’s treasury management strategy Full compliance Full compliance

Full compliance

Treasury Management

PI Accurate reporting to CRC at least quarterly on treasury management activities 100% 100% 100%

Pension Fund

Investment Management and Pension Fund Administration

PI Accurate reports to Pension Fund committee by committee deadlines

100% 100% 100%

Pension Fund

Investment Management and Pension Fund Administration

PI Provision of Pension Fund accounts for incorporation in the SOA by the deadlines

specified

31-May / 06-

Jun

31-May / 06-

Jun

31-May / 06-

Jun


71

Function KPI or PI


2012/13 year end

projections


Pension Fund

Investment Management and Pension Fund

Administration

PI External Audit for Pension Fund completed and draft ISA 260 produced with an

unqualified opinion

31-Jul 18-Jul 18-Jul

Cashbook and

Banking

PI 100% of bank reconciliation carried out within ten (10) Business Days of the month end 100% 100% 100%

Cashbook and Banking

PI Stops to cheques applied by 12pm on the day in question 100% 100% 100%


PI Bank accounts do not exceed agreed limits 98% 100% 100%


PI To ensure Bankings made by Authority establishments are posted into the financial system within the agreed timescale of 5 working days

100% 100% 100%

VAT Accounting PI 100% of VAT claims and other tax returns made within the statutory deadlines 100% 100% 100%

VAT Accounting PI Immediate notification to the Authority of any potential to exceed the partial

exemption limit

100% 100% 100%

Grants PI All grant claims and returns accurately completed as set out in the grant conditions and submitted to the external auditors by the required deadline

100% for 2010/11 (91%

for 2009/10 and 83% for

2008/09)

100%

100%

Grants PI All grant claims and returns accurately completed as set out in the grant conditions and receive an unqualified audit opinion

83% 100% 100%

Risk Management

PI Period closed by the seventh (7th

) Business Day following the month end (for months 5-11)

100% 100% 100%

Cashiers PI 100% of transactions processed within one (1) working day 100% 100% 100%

Income (Accounts Receivable)

PI 100% of invoices raised and despatched within one (1) working day of sales invoice being created

100% 100% 100%

Income

(Accounts Receivable)

PI 1st reminder letter issued to customers no later than 21 days of date that sales invoice

was raised (unless there is physical block on individual invoices, i .e. in cases of dispute)

100% 100% 100%


72

Function KPI or PI


2012/13 year end

projections


Income


PI Final reminder issued fourteen (14) days after first (1st

) reminder letter issued 100% 100% 100%


PI Percentage of debt over six (6) months old but less than one (1) year old to be less than

three per cent (3%) of total debt.

The Authority is in the process of developing a revised Debt Management Strategy that is subject to the democratic approval process. Targets will

be established on approval.

Income


PI Percentage of debt over (1) year old but less than two (2) years old to be less than two

per cent (2%) of total debt

The Authority is in the process of developing a

revised Debt Management Strategy that is subject to the democratic approval process. Targets will



PI Percentage of debt over two (2) years old to be less than one per cent (1%) of total

debt

The Authority is in the process of developing a revised Debt Management Strategy that is subject to the democratic approval process. Targets will


Income


PI To increase the number that pay by direct debit by five per cent (5%) per year 27.18% for Q1

2012/13, 30.55% for Q2

2012/13,

5% increase

on current baseline for

Year 1 (year 2, 5% of year 1

target etc.)

Payments (Accounts Payable)

PI One hundred per cent (100%) of invoice documents processed within the agreed timescale

100% 100% 100%

Payments (Accounts

Payable)

PI Ninety-five per cent (95%) of local companies are paid within ten (10) Business Days and all other companies within thirty (30) Business Days

96% 95% 95%


73

Function KPI or PI


2012/13 year end

projections


Payments

(Accounts Payable)

PI Improve year on year the number of payments, as a percentage of all payments, that

are made electronically

85% 95% 100%

Schools Help

Desk

PI Provision of Helpdesk Service to schools 92% 92% 92%

CFR Return PI Completion of CFR return to DfE by deadline 100% 100% 100%

Scheme for

Financing Schools

PI Accurate notification of funding in l ine with the Scheme for Financing Schools by the

deadlines set including school budget shares

100% 100% 100%