Determine whether to treat the funded works as Capital or Revenue. As a rule expenditure of less than £10,000 will be treated as revenue.
Both the income from the loan and expenditure relating to the use of the loan needs to be recorded in the schools accounts.
Receipt of the loan for revenue work must be coded to I06 (4190160) and for capital work to CI01 (4190172).
Expenditure incurred for revenue work should be coded E12 (6121000) and the management fee to E28 (6170110); and for capital works to CE02 and/or CE03 as appropriate.
The repayment of the loan will be made over a period of up to a maximum of 5 years. The instalments of the loan should be coded to E16 - Energy.
Schools are expected to have achieved energy savings from the investment. They will not be expected to create a sundry creditor equivalent to the value of the repayable loan. The loan repayments should be funded from energy savings.
Some schools have been advanced a loan to pay the contractors. Others the contractors invoice has been paid centrally.