Cash advances are made to cheque books schools in April,
September, January and March.
They represent the conversion of the formula allocation and
standards funds into actual cash. Devolved capital (XI21 Fund 48)
and schools standards grant (XI10 Fund 01) are allocated in full at
the beginning of the financial year.
The amount of the cash advance will be based on the school's
cash
flow forecasts, if received one month before the advance is
made. In the absence of a cash flow forecast being received, the
funds are given in a ratio of 40% : 35% : 25% and remaining balance
at the end of March.
The net amount of the cash advance, after deducting the foregone
interest is credited to the school's bank account by North
Somerset. A Cash Advance Notice detailing the amounts and ledger
codes is sent out by the Schools Funding Officer.
All entries should be entered on FMS6 as Cash Book Journal.
These amounts can be checked through Reports\General
ledger\Bank\Bank History – select Bank Account and
dates.
