Financial Management Standard in Schools Sue Parker Richard Scott School Support Team - Finance.
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Transcript of Financial Management Standard in Schools Sue Parker Richard Scott School Support Team - Finance.
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Financial Management Standard in SchoolsSue ParkerRichard Scott School Support Team - Finance
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What we are going to cover
• Brief overview of FMSiS
• Standard agenda items
• Documents to be reviewed annually
• Meeting minutes
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Why is a standard necessary?
“Effective financial management and benchmarking is essential for schools in order that they can:– Exercise proper control and stewardship over
significant amounts of public money– Allocate and deploy resources effectively to meet
school priorities for development and improvement”
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Objectives of FMSiS
• To define a clear and consistent standard for financial management.
• To enable schools to self assess their own strengths and weakness and prioritise action for improvement.
• To allow external assessors to validate schools self assessment
• To provide guidance on good practice
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Five Key Areas
Five Key Areas– Leadership & Governance
• Terms of Reference, Financial Regulations– People Management
• Performance Management, Competencies– Policy & Strategy
• Strategic management, forward planning– Partnerships & Resources
• Best Value– Processes
• Accounting procedures
• Internal financial controls must be subject to an independent external check in the 12 months preceding assessment.
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Standard agenda items – every meeting
• Matters arising – minutes from the previous meeting– Minutes should clearly show any matters arising
from the previous meeting have been addressed.– All actions from previous meetings should be
discharged or included in the current meeting and addressed accordingly.
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Standard agenda items – every meeting
• Register of Business Interests– There must be an opportunity to declare Business Interests
at the start of every Governing Body and every committee meeting.
– Anything relevant in the agenda• Reports from Committees
– Governing Body should receive minutes and if necessary a verbal report from chair
– Budget monitoring, probably delegated to Finance Committee
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Documents to be reviewed annually
• Financial Regulations – Annual review is an Essex requirement .– Can include Whistleblowing policy– Can include Best Value Statement– Must be consistent with Terms of Reference for Finance
Committee.– Delegation of authority– Review can be delegated but must be approved by the
Governing Body
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Documents to be reviewed annually
• Terms of Reference for Finance Committee– Must be consistent with Financial Regulations– Do they have authority to approve the budget?– Review can be delegated but must be approved by the
Governing Body• Best Value Statement
– May be included in the Financial Regulations– Must be personalised to the school– Approval must be minuted – Must be signed by Chair of Governors
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Documents to be reviewed annually
• Budget approval– May be delegated– Late March/April– Must be submitted by 1st May or at the latest 31st May
• Brought Forward Balance Return– Should be signed at the same time as budget approval– Same carry forward figures as included in the budget
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Documents to be reviewed annually
• Statement of Internal Controls (SIC document R15)– May be delegated– Essex requirement that the SIC must be completed
at the end of each financial year– Independent check – not necessarily required– Action plan– Governors’ Checklist– Email to internal audit by end of summer term
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Documents to be reviewed annually
• Benchmarking– DCSF website up dated during October with previous years
data– Can be done interactively as a live presentation
• Contract renewals– May be delegated
• Register of Business Interest annual review– Usually in the Autumn term – All Governors and staff with significant financial responsibility
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Documents to be reviewed annually
• School Development Plan/Asset Management Plan– 3 year rolling program– Detailed first year– Further two years overview– Costs must be reflected in the forward financial plan
• Forward Financial Plan– May be delegated– Must be for a minimum of 3 years but could be 5 years– Clear links to the SDP
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Documents to be reviewed annually• Competency Matrices
– R20– collectively ascertain the Governing Body’s financial
management competencies.– Identify any training needs– make sure Governing Body is not over reliant on one
individual.
• Operational Procedures Manual– Amended for any changes
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Meeting Minutes
• Governors have collective responsibility for financial decisions and are answerable to parents and the wider community.
• Minutes are the key piece of evidence that demonstrate sound financial decisions have been made.
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Minutes• Minutes need to:
- be accurate- be complete- be timely- clearly allocate actions and responsibilities- demonstrate that governors question and
challenge, acting as ‘critical friend’
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Useful Contacts• WWW.FMSIS.INFO
– For self evaluation tool– external accreditation tool – resource documents
• [email protected]– Questions/clarification on any aspects of FMSiS