How will a Stocktake Benefit My School?
Stock is a recognised and legitimate financial management practice. It is used in many parts of the public and private sector. The health sector have been carrying out stock takes and including stock in their accounts for a number of years as have schools in other parts of the UK.
Stock covers items that are still on the school premises at 31 March and that are available for use in future years. Examples would be ipads, unopened craft packs and some playground equipment.
Undertaking a stocktake will increase the spending power of your school in the first year in which you count your stock and will ensure that you are not charged for those items of stock which have not been fully used up. It effectively reduces your expenditure in that first year.
Schools can undertake a stock count and send the counts to EA who will calculate the value of your stock
By counting your stock and including this as closing stock you will reduce the amount spent in 2017/18. This will improve your financial position at year-end and also your opening position for the 2018/19 year. A healthier opening position creates a benefit for your school.
A school has a closing deficit of £5,000 at the end of the 2017/18 financial year before any stock count is carried out. The school carries out a year-end stock count which is valued at £20,000.
The value of the stock reduces the schools expenditure in 2017/18 by £20,000. This changes the deficit of £5,000 into a surplus of £15,000. This has improved the overall school‘s positon by £20,000
The school financial plan for 2018/19 records that the school has an opening accumulated surplus of £15,000
The schools financial plan also shows the closing stock of £20,000 in 2017-18.
In 2018-19 the schools expenditure will show the difference between the closing stock in 2017-18 and the closing stock in 2018-19.
The links below provide details and guidance on schools stocktake 2018.
Should you have any queries regarding the content of these links or any issues accessing these documents, please contact Joanne.McKenna@eani.org.uk or email@example.com