Once the Financial Plan has been approved by the Governing Body and submitted to the Authority it is often the case that the Governing Body will need to make changes to the Plan during the financial year. The process of transferring budget provision between budget headings is known as virement. It is important that each school has in place a formal arrangement for approval of any revision of the Financial Plan. Such approval up to a specified limit may be delegated to the Headteacher or to a committee of the governing body, who should define the appropriate limit in accordance with Terms of Reference for Finance Committee. Whilst it is open to the Governing Body to authorise such virements as it sees fit, any changes to the Financial Plan should be notified to the Finance Team so that the statutory accounting system is updated accordingly. These regulations set out the relevant procedures.
4.1 The Governing Body is empowered to vire between the various headings of income and expenditure within the delegated budget.
4.2 Where authority to vire has been formally delegated to the Headteacher or to a Committee of the Governing Body, details of each virement must be reported and minuted at the next ordinary meeting of the Governing Body.
4.3 The Governing Body shall ensure that virement is undertaken as necessary to maintain the accuracy of budget monitoring and shall inform the Finance Team as soon as practicable so that the central accounting system is updated accordingly to reflect the revised school Financial Plan and assist the monitoring process.
4.4 Schools are required to revise their Financial Plan where there is a change to the level funding received during the financial year, for example, additional grants or changes to the budget share.