Investments

It is acknowledged under the Scheme of Financing Schools, there will be occasions when schools wish to set aside sums to meet significant future costs, as such schools have the opportunity to transfer funds from their budget, into the Shropshire Council Investment Fund.

School investments are instant access so you can add or deduct from them at any time.  We do however ask for 3 months notice to apply transfers into the investment fund, ideally annual transfers around budget setting are preferable in the summer term.  However in terms of withdrawals these can be requested at any time.  A notice to invest must be made in writing by the head (email) to the schools finance team.

If a school with an investment balance closes the year with a deficit then an automatic ‘disinvestment’ is applied at year end in order to pay off the deficit.  Interest is removed for the previous 6 months when a year end deficit disinvestment is made.

Where will the money be invested?  Shropshire Council invests in ‘money market funds’ based on professional financial advice.  This would include investing in banks and building societies in order to achieve the best return. School investments are part of the whole council investment so schools will benefit from economies of scale.

Will we receive a contract with terms and conditions of the investment to sign?  There is no contract or terms and conditions to sign.