Rules AND RESPONSIBILITIES
Role of the GOVERNING BODY
The statutory responsibilities of the governing body are detailed in section 21 of the Education Act 2002. Governors have collective responsibility for the financial decisions and are answerable to parents and the wider community.
The governors have a strategic responsibility for managing the college finances and resources to optimize the standards of education.
The Governor role will be to:-
· Manage the college budget. Consider and approve the annual budget in line with the college improvement plan, by the second Friday in June each year.
· Decide whether to delegate responsibilities to the Finance Committee, Chief Tutor and Director of Finance and establish the level of responsibility and financial limits.
· To determine the staff establishments in line with the College improvement plan/ strategic forward planning document and pay policy for the college.
· To determine a procedure for ensuring these are adequate cover arrangements for teaching and support staff absences taking into account budget limitations.
· Receive and consider information received from the LA regarding changes to the funding formula.
· Ensure accurate accounting records maintained and retained for appropriate periods of time.
· To provide support, advices and act as a ‘critical friend’ to the Chief Tutor.
· Receive budget monitoring reports and consider changes to the budget plan in the light of information contained in the monitoring reports.
· Ensure the college meets all the statutory financial responsibilities through the establishment and annual review of a financial policy and financial procedures, taking into account the LA financial regulations.
· Ensure the college achieves ‘Best Value’ from its budget.
· Ensure that a register of Business interests is maintained for all governors and those staff who are in a position to influences financial decisions.
· Ensure that prompt responses are made where necessary to audit and other inspections and improvement action plans are followed.
· Authorize the disposal of inventory items and ‘written off stock’.
· Ensure that a statement of internal control is considered and signed annually by the Chief of Governors, Chair of Finance Committee and Chief Tutor.
· Ensure the college has an appropriate confidential Reporting code or ‘whistle Blowing’ policy, and staff is made aware of it.
The Governing body can delegate some of its responsibilities to a committee (Finance or Resources). If this decision is taken, the main Governing body will:-
§ Define the terms of reference of the committee.
§ Define the extent of delegation.
§ Ensure the main Governing body receives minutes and reports from the committee.
§ Annually review the committee’s remit and responsibilities.
§ Ensure there is a formal link between the committee and the Governors’ committees where decisions of one affect the other.
ROLE OF THE CHIEF TUTOR
The Chief Tutor will be responsible for the day to day leadership and financial management of the college. The level of those responsibilities and maximum limits of expenditures will be determined by the governing body and formally minted.
The key responsibilities of the chief tutor will be:-
· The internal organization of the college to ensure the sound management of financial systems and procedures.
· Formulate the draft budget plan for submission to the governors and line with the college improvement plan and agreed staffing establishment.
· To monitor the college budget monthly and provide reports to the governors/Finance committee each term.
· Formulate and implement financial policies and procedures to ensure efficient and effective management and control.
· To ensure there is adequate supply cover for teaching and support staff absences in line with Governors procedures and strategies.
· Ensure all staff with financial responsibilities receives training and advice on financial policies and procedures.
· Implement budget virements up to 2, 00000 as agreed by the Governors’ and obtain Governors’ approval for virements above that level.
· Respond to the audit report and action plan and provide reports to the Governors.
· Ensure the maintenance of an up to date inventory of equipment which is reviewed annually.
· Ensure the college has appropriate insurance cover for public liability, building and contents etc.
· To sign official orders for the purchase of goods and services up to the limit of 200,000. The Governors will be responsible for approving orders above that limit.
· Be responsible for the authorization of employee timesheets/ starters/ leavers/ changes forms.
· Ensure that the following key financial documents are drawn up for consideration and approval by the Governors:
(a) Best value statement.
(b) Statement of internal Control
ROLE OF THE DIRECTOR FINANCE
The level of responsibility of the Director Finance will be determined by the College Governors on the advice of the Chief Tutor who will be the employee’s Line manager. The bursar may be given responsibility for the level of expenditure determined by the Governing Body and formally minted.
The key responsibilities of the Director Finance are:-
· The general administration of the College Finance systems and procedures ensuring good practice and efficiency.
· Working with the chief Tutor to formulate a draft annual budget plan for submission to the Governing body.
· To maintain accurate and up to date financial records and accounts which will be retained for the statutory length of time.
· To monitor expenditure against budget headings in respect of the College’s formula budget and standard funding and provide reports to the Chief Tutor.
· To sign official orders for the purchase of goods and services up to the limit of RS. 100,000 the Chief Tutor and Governors will be responsible for orders above limit.
· The management and training of staff with financial responsibilities under the guidance of the chief Tutor.
· Work with the Chief Tutor to respond to audit reports and action plans.
· Maintain the college inventory in conjunction with Chief Tutor and assist with its annual review.
· Maintain the college petty cash system and provide reports for the Chief Tutor.
· To bank all cash income, working with a second employee where necessary for verification purposes ensuring cash held in College is securely stored and does not exceed Rs. 150,000.
· Ensure invoices are paid promptly in line with the college’s financial procedures.
· Ensure all “postings” are checked and ‘signed off’.
· Be responsible for the completion of all employee leaver / starter / changes forms for the authorization by the Chief Tutor and onward submission to the LA personnel section.