Guidance

Guidance for completing simplified financial plan template

Published 9 July 2014

Applies to England

© Crown copyright 2014

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This publication is available at https://www.gov.uk/government/publications/sfa-capital-funding-support-for-leps/sfa-capital-guidance-for-completing-simplified-financial-plan-template

1. Financial plan template

  1. The Skills Funding Agency (the Agency) has produced a financial plan template for providers who are applying for funding from the Skills Infrastructure Capital Fund (SICF). Providers will need to complete the template for the first year after your latest audited financial statements, and for each subsequent year, until at least two years after the project completion.

  2. The purpose of the template is that the information supplied will be assessed by the Agency to determine whether the provider will remain financially stable after taking account of their contribution to the project, including any associated borrowings. This assessment will form part of the overall assessment that the Agency will make of each application.

  3. The template is made up of four input worksheets that providers will need to complete. These worksheets are:

  • Cover Sheet
  • Income and Expenditure Account
  • Balance Sheet
  • Income Schedule.

2. Guidance

  1. The following sections provide some guidance on the completion of each worksheet, but providers may also wish to refer to the document Financial Health Assessment of Non-College Providers which outlines the Agency’s approach to the financial health assessment of non-college providers. Providers may also wish to refer to the Accounts Direction Handbook 2013/14 which provides generic advice on completing financial statements etc.

  2. A detailed commentary of the assumptions made must be provided to accompany the financial plan. In particular the provider must distinguish between those income/expenditure figures that will occur as a result of the project and those figures that will be produced by the rest of the provider’s on-going business.

  3. Any cells which are shaded in blue contain formula and will not allow data to be input.

3. Cover Sheet

  1. Providers will need to complete lines 1 to 7 of the cover sheet. Most of the details are self explanatory but of particular importance are:
  • Line 1a Type of Provider. Select non-college provider from the drop down list
  • Cell D 14. Enter the day and month of your year end accounting period e.g. 31st July.

4. Income and Expenditure

  1. This worksheet needs to be completed for a period commencing with first year after your latest audited financial statements and for each subsequent year until at least two years after the project completion.

  2. The first line in the income schedule (line 1) will automatically be populated from the information recorded in the Income Schedule. The other income lines should be used where appropriate.

  3. Some of the lines in the template are only for use by colleges. These are lines 17 to 22.

  4. Line 15 should be used to record the tax charge for the year and should normally be recorded as a negative figure.

  5. Line 16 will record your profit after tax total for each year.

  6. Any dividends for the year should be recorded in line 23.

5. Balance Sheet

  1. The balance sheet is broadly similar to the format that you will use to produce your accounts. Where any headings are slightly different comment boxes have been provided for assistance.

  2. Any balances with related parties, for example group companies or directors should be recorded in either line 4c or 7b, depending on when the amount is due to be repaid. The commentary provided with the financial plan template should provide details of what the end of year balances relate to.

  3. One area on the worksheet that is slightly different to the accounts format generally used by non-college providers, is the capital and reserves part of the balance sheet. For assistance, your share capital and other balances (apart from revaluation reserves and profit and loss account) should be entered on line 14. Your profit and loss account for each year should be entered on line 15.

6. Income Schedule

  1. This schedule should be used to record your expected income from the funding bodies (Agency, EFA and HEFCE).

  2. Comment boxes have been provided on some of the lines to assist providers in completing this schedule.

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