Student Resource Package – Managing the Budget

Cash

Quarterly cash grant

The cash component of the Student Resource Package (SRP) is paid over four quarterly cash grant (QCG) payments on the first day of each term. These payments are based on:

• Term 1 grant – Indicative SRP using projected enrolments
• Term 2 grant – Confirmed SRP using February census enrolments, with a retrospective adjustment (increase or decrease) for Term 1
• Term 3 grant – Revised SRP using audit corrections to the February enrolments
• Term 4 grant – Revised SRP using audit corrections to the February enrolments

Note: Census enrolments are subject to audit corrections. In this event both credit allocations and cash grants are adjusted.

The QCG can include:

• cash allocations from the SRP
• credit to cash transfer amounts from the SRP
• other cash grant amounts such as school support
• deductions for long term sick leave premium
• other departmental deductions.

Electronic Funds Transfer (EFT) remittance advice (how SRP cash appears)

The Accounts Payable area in the department's Financial Services Division provides schools with remittance advice for every payment that is made to the school. Schools should email Cash Management Unit cashmanagement@education.vic.gov.au for assistance with EFT queries.

This remittance advice provides a breakdown and a description for each component of the payment. Payments made from the SRP or strategic programs will appear on this remittance advice. There are three different types of descriptions that may appear on the remittance advice for a QCG payment:

1. SRP quarterly cash grant payment

This payment includes SRP budget allocations, credit and cash transfers and any deductions:

• STUDENT RESOURCE PACKAGE (SRP) - BATCH <Batch number> - <Term 1-4> QUARTERLY CASH GRANT - CASES21 Finance General Ledger <GL Code>: Sub Program <Sub Program Code>

2. Other payments

Some schools will receive other forms of payment through the SRP payments system at the same time as the QCG:

• STUDENT RESOURCE PACKAGE (SRP) - BATCH <Batch number> - <Term 1-4> QUARTERLY CASH GRANT – Other Cash Grants - <Other Cash Grants - CASES21 Finance General Ledger <GL Code>: Sub Program <Sub Program Code>

Definitions

In the samples above, some placeholders were left using <>, please see the below table for definitions:

Credit and cash transfers

School’s allocation of credit and cash is set automatically by the SRP. However, schools can request:

• a credit-to-cash transfer (CCT) where they transfer funds from their credit balance to cash
• a cash-to-credit transfer.

Credit allocations should support staffing requirements for schools. In some cases, a CCT may be required to align the funding to the nature of the expenditure. For example, a school may have unavoidable reasons why it would need a casual relief teacher (funded via cash) rather than staff on payroll at a particular time.

In line with the overriding principle that in-year funding should benefit the same cohort of students (rather than future students), from 1 January 2024 CCTs should not be used to fund expenses that are not designed to be covered by the credit allocation of the SRP, such as for capital investment.

In line with the credit carryover requirements set out above, schools have until 31 December 2027 to spend credit balances accumulated prior to 31 December 2023 and can request a CCT for the purposes of capital investment for these balances only.

Schools that want to request a CCT must do so through the SRP Portal. As part of the request, the school is required to:

1. select whether the CCT is to come from a current year projected surplus or an accumulated surplus (surplus accrued prior to 2023 reconciliation)
2. choose an expenditure option:
   • requests for capital works will no longer be considered for current year projected surpluses
   • requests for capital works from the accumulated balance will be permitted. However, schools must attach supporting documentation, such as an invoice from the VSBA, demonstrating the amount required, and confirm that they have explored options to invest the accumulated balance in staffing and student support
3. outline the reason for the request (for example, to meet large, unexpected CRT costs)
4. demonstrate that they do not have sufficient cash balances available in their bank account:
   • schools that have more than 12 months’ worth of operating expenditure (6 times their operating reserve) in their bank account will have their requests automatically rejected on the basis the school has sufficient funds available
   • schools that have more than 12 months’ worth of operating expenditure in their bank account will be permitted to request CCTs from their accumulated surplus balance on a case-by-case basis
5. provide a copy of their cash budget that has been approved by school council:
   • the need for a CCT request should be outlined in the cash budget.

Further information on the CCT process can be found in the Resources tab, including a list of expenditure options for schools with SRP credit surpluses.

Timeline

CCT requests will open on the SRP Portal on the first day of Term 1 and will close on the last day of Term 3.

CCT requests made outside of these timeframes will only be reviewed in exceptional circumstances, such as genuine cash flow need.

Approved requests made from current year projected surpluses will be paid out over the remaining quarterly cash grants.

Approved requests made from the accumulated balance will be paid out in a lump sum.

While each CCT request will continue to be reviewed on a case-by-case basis, schools that cannot demonstrate why they require a CCT or schools that have sufficient cash balances available will have their request rejected.

Cash to credit transfers and end of year deficit adjustment

Cash to credit transfers may occur if a school wishes to better align credit expenditure with the appropriate funding source (for example, if a school decides to use over 50% of equity allocation on salary costs). If sufficient cash is available these requests will generally be supported.

Eligibility

Schools can undertake a credit to cash transfer for uncommitted credit allocations in the SRP for certain types of expenditure. Schools will not be permitted to submit a credit to cash transfer without a valid reason. In addition, schools may undertake cash to credit transfers in instances where it is planned to use the cash component of the SRP to appoint ongoing or fixed-term staff on eduPay. Care must be taken when appointing ongoing staff in this way to ensure the position can continue to be funded in future years. Cash to credit transfers must include provision for salary on-costs (payroll tax and superannuation).

Submitting requests

Schools can undertake CCT request using the online Credit Cash Transfer module by selecting ‘CCT’ (Credit Cash Transfer) on the SRP Portal. Access to the Credit Cash Transfer module is limited to the principal or the principal’s delegate and requires an authenticated username and password.

Since 2019, schools are required to nominate a category that identifies the purpose of the CCT. In addition, there is the ability to attach supporting information to the request.

The list of categories, and some suggestions as to the type of supporting information required, are outlined below. Where possible or relevant, schools should try to link the submission back to Annual Implementation Plans, School Strategic Plans, Professional Learning Plans or the School Cash Budget.

1. Capital works

This category relates to school capital works, such as building additions or refurbishment of buildings or facilities. If the project is being undertaken with the Victorian School Building Authority (VSBA), noting this and providing a VSBA reference would be useful information to provide. If the project is not being undertaken with the VSBA support, schools must attach relevant project information.

Under the SRP principles that in year funding should support the current cohort of students, CCT requests for capital works will not be approved unless the transfer is coming from an accumulated surplus balance. That is, the surplus balance accumulated up until reconciliation 2023.

Schools will no longer be permitted to submit CCTs for capital works using their surplus achieved through current year underspend.

2. Equipment

This category relates to the purchase of new equipment. As an example, supporting information may be a quote/scheduling for the installation, etc. (Note: If the equipment is being purchased to support a curriculum program then it should be categorised as part of the curriculum program)

3. Maintenance

This category relates to general maintenance in schools. As an example, supporting information may include the type of maintenance to be undertaken.

4. Staffing costs

This category includes costs directly related to staffing, such as Casual Relief Teaching (CRT), local payroll reimbursement or professional development. Specific examples of support information could include CRT costs to replace someone on sick leave or to top up the CRT budget for the school as specified in the annual budget.

5. Curriculum programs and student support

This category relates to specific curriculum programs schools operate or support being provided to students.

6. Other

Any other reason for the CCT request.

Requests must be based on the annual amount of the transfer (not monthly or quarterly) except where the transfer relates to a surplus brought forward from the previous year. Approved transfers against a current-year surplus will be apportioned equally over the remaining quarterly cash grants for the year. Approved transfers relating to a surplus brought forward from the previous year or the accumulated balance will be paid as a lump sum.

Credit to cash transfers are paid and cash to credit transfers are committed quarterly with schools’ quarterly cash grants. Amounts paid or committed can no longer be adjusted and a new request will need to be submitted.

Enquiries can be addressed to the SRP Service Desk and information should be provided in writing to:

• Services Portal or
• Log a call on 1800 641 943

Verification

Schools are only able to enter a CCT amount up to the value of the ‘Available SRP Credit’ or ‘Available SRP Cash’ amounts. If a school wants to make a larger transfer, then a service call will need to be logged through the Services Portal.

Offline payments

Offline payments can occur at any time throughout the year. Common reasons for an offline payment to be made are:

• credit to cash transfer against previous year SRP surplus
• leave reimbursement payments.

Offline payments can also be triggered by cash flow support payments or other cash grants.

The description for offline payments will take the form:

• STUDENT RESOURCE PACKAGE (SRP) - BATCH <Batch number> - OFFLINE PAYMENT - <Program> - <Description> - <GST Status> - CASES21 Finance General Ledger <GL Code>: Sub Program <Sub Program Code>

Definitions

In the sample above, some placeholders were left using <>, please see the below table for definitions:

Example:

The below example would relate to a school that is receiving a basic payment against the SRP relating to a budget adjustment occurring after the Term 4 QCG.

• STUDENT RESOURCE PACKAGE (SRP) - BATCH 000999 – OFFLINE PAYMENT - Not Subject to GST (Code NS6) – CASES21 Finance General Ledger 70001

Examples:

The below examples would relate to a school that is receiving payment for the SRP, two strategic programs and one other payment. This would represent a complex example of what would be seen on the remittance advice:

• STUDENT RESOURCE PACKAGE (SRP) - BATCH 000999 - TERM 2 QUARTERLY CASH GRANT - Not Subject to GST (Code NS6) - CASES21 Finance General Ledger 70001
• STUDENT RESOURCE PACKAGE (SRP) - BATCH 000999 - TERM 2 QUARTERLY CASH GRANT - Other Cash Grants - Repayable Cash Flow Support - Not Subject to GST (Code NS6) - CASES21 Finance General Ledger 70001

The below example would relate to a school that is receiving a payment against the SRP relating to a Credit to Cash Transfer against previous year surplus.

• STUDENT RESOURCE PACKAGE (SRP) - BATCH 000999 – OFFLINE PAYMENT – Credit to Cash Transfer – Previous Year - Not Subject to GST (Code NS6) – CASES21 Finance General Ledger 70001: Sub Program 9611

Cash payment statement

A ‘cash payment statement’ is produced for every payment made via the SRP Payment System. It is available to schools on the reports page of the SRP Portal. This report provides a detailed breakdown of every payment, including the budget lines from which the payment was made, and any deductions held against the payment.

End of year cash balance

Due to budget changes or other adjustments that occur after the Term 4 QCG, there will often be an outstanding cash balance for a school at the end of the calendar year. A positive cash balance will be paid through the following year’s QCG. A negative cash balance will be deducted from the following year’s QCG.

CASES21 Finance

All cash payments must be recorded appropriately in CASES21 Finance using the general ledger and sub-program codes provided in the EFT remittance advice descriptions.