What is the return date for Year End closedown packs for MCC LA schools?
Completed year end packs are due back to LA by 20th April 2018
What is an accrual?
Income that is recognised before cash is actually received, or expenses that are recognised before cash is actually paid out i.e. you may have received some goods by 31st March 2018 but no invoice has been received/ recorded on school finance system, so this would have to be recorded as an ‘accrual’ at year end in order to ensure that it is accounted for in the correct finance year. Manual accruals can be in the form of debtors, creditors, payments in advance and receipts in advance.
Do I have to keep evidence of accruals?
Yes, keep supplier statements, delivery notes or remittance advices to evidence the values of any accruals for audit purposes
What should I do if I have already paid a service level agreement that crosses finance years?
Keep a copy of the invoice as this may need to be recorded as a ‘payment in advance’ (accrual) at year end. It is good practice to review any invoices paid for SLA/maintenance contracts prior to year end to ensure that is has been accounted for in the correct financial year, as not all contracts will align with the financial year.
Do I need estimates for utilities bills if they are not invoiced up to 31st March?
Yes, always check the charge period on the last invoice as they are often invoiced in arrears. It would be useful to keep a copy of the last invoice for reference at year end along with any workings for the estimated figure for the accounts.