Step by Step Guide (Local Payment Schools only)

Step by Step Guide (Local Payment Schools only)

1. Create a checklist of tasks to be completed, by whom and by when. It may be useful to paste this list into a new document and add columns for dates and personalities. It may be useful to refer to the list you prepared last year.

2. During the approach to end of year run housekeeping routines; aim to have resolved as much as possible before the end of March.

3. During the approach to end of year ensure bank reconciliation is completely up to date.

4. Review any balances remaining on the sundry debtors and creditors codes. (DEBS CREDS ICREDS IDEBS etc). These should be generally zero. If not zero and you don’t know how to clear them please ring the ScoMIS helpline 01392-385300.

5. Download March pay and clear suspense. Run the periodic balances report and agree the balance on payroll suspense to FC01..

6. Accrue a creditor for all work done in March that will be paid in April. Information can be obtained from the authorisation lists produced by the supply software. This includes additional hours for support staff, peripatetic and mentoring payments. Entries can be summarized at ledger code level. Travel claims should also be accrued.

7. Complete the March VAT return and immediately take a statement of balances & reserves, periodic balances report, creditors listing and sundry debtors accounts.

8. Run the VAT submittal report and reconcile the VAT personal accounts/codes.

9. Enter transactions to 31st March from the bank statement and complete the bank reconciliation. Ensure that these transactions are dated 31st March or before. Take a further statement of balances & reserves etc.

10. Check that the ledger code balances on the codes that relate to funding agree with the control totals, (Monthly Cash advance and in year spreadsheets), notified by FSDE. Ensure codes 9050-9059agree with notification received from Devon Finance Services.

11. Treat any adjustment to SBS dated April as if they had  happened 31st March.

12. Enter reversing journals for payments made in advance and income received in advance. This task will be required each year so consider setting up a template for this. To save time the template can be prepared before year-end. This accrual should be done as soon as the March bank receipts have been balanced.

13. Enter reversing journals for any amounts needing to be accrued for creditors. As old year invoices are accepted directly into the system the need for these should be minimal. (Where monthly accruals are in place then there will be a higher volume of transactions). These will represent any situation where value has been received but no invoice has been received or the invoice has a new year date. Any new year dated invoices relating to an old year delivery must be entered in the new year and an accrual raised. This is to meet HMCE requirements.

14. Enter reversing journals for any amounts to be accrued for debtors. As old year debtor invoices are accepted into the system until preliminary closedown the need for these should be minimal.

15. Accrue provision for bad and uncertain debt.

16. Carry out gross error checks.

17. Rerun  housekeeping routines

18. Run preliminary closedown.

19. Accrue a creditor for the difference between FC01 and payroll control.

20. Clear the balances on FC01 and payroll suspense.

21. Check there are no outstanding items on your closedown checklist.

22. Run a trial balance and carryout a final check.

23. Re run housekeeping

24. On confirmation that the school information has been accepted by DFS run Final closedown

25. At the end of the process create a fresh copy of the year end checklist and in the light of experience update it ready for next year.

Bank reconciliation

Ensure that the bank reconciliation is up to date and that there are no unresolved differences.

Give consideration to making arrangements with the bank so that the maximum information is to hand in time for the month 12 VAT return. If necessary obtain temporary statements. In any event ask for a statement that runs up to the end of March.

Ensure that the bank reconciliation to the 31st March is carried out. This will include all entries in the month 12 VAT return. At this point the balance at bank should agree with the total in FMS. If the figures do not agree, please try to establish why before sending the statements to the County Treasurer but do not delay unduly sending the return. If it is not possible to include all entries to 31st March in the month 12 VAT return these will need to be identified on the reconciliation return.

Reversing journal (recommended)

This is recommended for most situations. These can be entered in FMS6 before and after running preliminary closedown. This option will save work, as it will create the necessary ‘opposite’ entries in the New Year. If an adjustment does prove necessary after preliminary closedown you will be able to enter a further adjustment Journal (Year end adjustment reversing).

Do not use this option for standard fund income in advance.

Old year transactions

Old year transactions may continue to be posted until preliminary closedown is run.

The following may be entered

  • Suppliers invoices relating to the old year (These can be entered in SIMS. The cheques should not be produced until after preliminary closedown in the new year). This will reduce the number of creditors.
  • Debit entries on bank statements relating to dates before 1st April (direct debits, dishonoured cheques etc)
  • Credit entries on bank statements relating to dates before 1st April. (BACS & Standing Orders)·Reconcile cheques presented up to and including 31st March
  • Accounts receivable for services provided prior to 1st April

Gross Error Checks

A gross error check is intended to be a quick review of the final figures.

The process is often intuitive and will rely to some extent on the knowledge of the person producing the figures.

The starting point is whether or not :-

  • the figures look right
  • the overall answers are coming out as expected
  • there major variances from budget & are they explicable?

If not has some entry gone in the wrong way round?

It may be useful to:-

  • check by rough calculation
  • check by inspection.

A gross error check is intended to reveal obvious mistakes.