School Accounting

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The Budget

The financial planning year starts with the preparation of the annual budget, using a mixture of zero based and incremental budgeting techniques including the use of the SAFS salary calculator.  The salary calculator uses the most up-to-date salary scales available from the School Teachers Review Body (STRB) and the Local Government Employers’ Organisation and uses the Inland Revenue’s exact calculation method to derive NIC costs for staff and the appropriate employer’s pension rates.  It is updated annually.  All budget assumptions are carefully documented and agreed with the school’s management before presentation to the Finance Committee of the Governing Body and amended to their requirements ready for submission to the full Governing Body and then to the Local Authority (LA).

With effect form April 2008, LAs have been required to issue schools with three year projections of their likely income.  Using this data, SAFS will assist in the preparation of the school’s three year budget plan, taking into account the approved School Development Plan, using the budget format required by the LA and, if different, in CFR (or other agreed) format for approval by the Governing Body.