School Finance tips for 2024/2025

As our Schools and Charities team has been working on completing school accounts for the year ended 31st August 2024, we have noted some recent issues. In addition, we have seen various finance packs presented to boards of management which are lacking important detail.

Andrew Kevitt and Róisín O’Leary examine a number of elements which we recommend all schools' finance teams should consider.

Financial Services Support Unit (FSSU) Requirements

The Financial Services Support Unit (FSSU) recommends that the Board of Management Finance Pack includes:

• Trial balance

• Profit and loss – actual v budget

• Balance sheet

• Bank reconciliation

• Aged debtors

• Aged creditors

• Accruals list

• Prepayments list (debtors list)

• Deferred income list (recommended by WOBH)

• Capital project report

Questions to ask/Items to check in the finance pack

• Does the trial balance balance?

• Is the budget realistic?

• Review material variances, actual v budget for income and expenditure.

• Does the balance sheet balance?

• Does P&L surplus equal balance sheet surplus?

• Do bank reconciliations agree to the trial balance?

• Do creditors lists equal the trial balance?

• Do debtors lists equal the trial balance?

• Does deferred income equal the trial balance?

Charity Regulatory Authority (CRA)

• Schools are required to keep Charity Regulatory Authority information up-to-date (See here for details)

• Any changes to the board of management should be reflected on the CRA website.

Revenue Commissioners – Enhanced Reporting Requirements (ERR)

• Since January 2024, employers are required to report all travel and subsistence payments made to employees to the Revenue Commissioners.

• Any gifts or vouchers given to employees also need to be reported.

Pension Auto Enrolment

• From October 2025, employees who do not have a pension scheme, earn more than €20,000 per year and are aged between 23 and 60, will be automatically enrolled into the new system. Further details will issue from the Department of Social Protection in 2025.

Cash at Bank

• Existing deposit accounts are generally only earning 0.1% interest. It is possible to earn between 2% and 3% interest with most banks if funds are placed in new fixed term deposit accounts. It may be beneficial to speak to your bank.