Corporate finance - school bank accounts

Overview

The alternative to payments being made through the Authority's transactional systems is for schools to operate their own bank account facility.

The 'Guidelines for the Operation of a School Bank Account' (SBA) should be read in conjunction with Section three of Bury's approved Scheme for Financing Schools.

Schools are not empowered to have overdraft facilities, credit cards or any loan arrangements.

What the service provides

Whole Budget Account

Schools receive the total delegated budget in installments into their bank account.

Schools make all payments, including payroll and all associated on-costs.

Partial (Non-Staffing) Account

Schools receive the non-payroll budgets, except for internal recharge headings, in installments into their bank account.

Schools make all non-payroll payments from this account.

The Authority's Financial Management Section will facilitate and advise on the use of a school bank account and undertake to process and reconcile all transactions into the Authority's financial system.

Schools must submit monthly SBA (School Bank Account) returns within required deadlines.

Benefits to your school

Schools can make payments direct to providers of goods and or services.

Schools can produce their own cash flow statements.

As a separate arrangement to School Bank Accounts, schools may benefit from the provision and operation of a Purchasing Card.

SLA information

pdf icon School bank accounts SLA [69kb]

Costs

The cost of this service reflects charges incurred by the Authority associated with separate bank account  arrangements, and is set at a lump sum amount per school.

Schools are also responsible for any additional costs incurred by them operating their own bank account, e.g. bank statements and cheque stationery.