Financial Management Standard in Schools
Spring 2008
Vanessa Eddey Jill [email protected]
[email protected] 225919 01305
225918
Overview of Briefing• Background• Process and timetable• What is in the Standard• Self Assessment• Self Assessment Activity• Plan Ahead• File of Evidence• External Assessment• Statement of Internal Control• Governor involvement• Help• Questions and Answers
Background
Why do we need FMSiS?
Effective financial management so that Schools can:
Exercise proper control Allocate and deployand stewardship over the resources effectively significant amounts of public to meet school prioritiesfunding entrusted to them. for development and
improvement.
What is FMSiS?
IPF
Generaldocuments
Summary documents
Resourcedocuments
Five key areas to the Standard
1. Leadership and GovernanceClear Leadership and effective Governance
2. People ManagementStaff are well trained and ably led
3. Policy and StrategyResources deployed to achieve objectives
4. Partnerships and ResourcesEfficient and effective use of resources
5. ProcessesEffective processes to achieve financial goals
www.fmsis.info
SAFSO Team web page
SAFSO Team web page
Timetable for schools
• Set by DCSF:Secondary Schools to meet the standard by 31 March 200740% of remaining schools by 31 March 200840% of remaining schools by 31 March 200920% rest of schools by 31 March 2010In Dorset:
• Secondary schools to meet the standard by 31 March 2007 – secondary assessments Summer Term 2007.
• Special and Middle Schools to meet the standard by 31 March 2008 – assessments in Autumn Term 2007.
• Primary Schools – Chesil Education Partnership, Dorchester, Blandford and Christchurch to meet the standard by 31 March 2008 – assessments Spring and Summer Terms 2008.
Timetable for schools
To comply with the standard by 31 March 2009:
• Schools in Gillingham, Sherborne and Sturminster Newton and pyramids. External assessment Autumn term 2008
• Schools in Wimborne, Ferndown, Lytchett Minster, Purbeck and Bridport pyramids. External assessment Spring and Summer terms 2009.
To comply with the standard by 31 March 2010:
• Schools in Lyme Regis, Beaminster, Corfe Hills, and Shaftesbury pyramids. External assessment in Autumn term 2009 and Spring term 2010.
Self-Assessment
Schools can benchmark their own performance against a nationally recognised statement of good practices, as well as identify areas for development.
Shows the evidence that governors and senior managers in schools should expect to see to confirm compliance with the Standard.
Recognises that those undertaking the assessment will know from their own direct experience whether a number of the required componentsare in place.
Self-Assessment
• School to complete online self-assessment showing evidence in school. (see G4 and G5C)
• Single assessment tool for schools and the Assessor.• Look at the assessment criteria for each section - form a
view as to whether these are reflected in your school.• Evidence should be in document form.• Suggested ways of completion of self assessment:
1. Form completed by Finance Committee, Head and Bursar. Consensus version agreed at either Finance Committee or Full Governing Body.
2. Head / Finance Officer complete initial draft self assessment, which is then presented to the Finance Committee.
Self-assessment tool (Schools)
Final self assessment
• Final version should be as per the position agreed by Governors.
• Submit on-line, via the website.• Can save a draft and only submit to LA once all
agreed and before external assessment.• Evidence can be attached to the submission.
Self-Assessment Activity
Plan Ahead
• Use your first run through the assessment to identify what you need to do
• Prioritise, do quick fixes at next meeting, start work on anything that needs to be put in place
• How many governors meeting before the term of your assessment?
• Spread that load over the time you have left- so something on FMSiS at each meeting from now on.
• Plan to have completed everything and sign off the self-assessment at the last governors meeting before the term of your assessment.
File of Evidence
• Index – Use of cross referencing of documents to
competencies in self assessment– Build your own index. As you find
documents, file and reference. Let your evidence file build itself as you go along
File of Evidence :The Policy framework
Dorset Scheme
of Financial
Management
Whistleblowing Policy
Financial &
Admin Regs;
Standing Orders
on Contracts
Financial
Procedures
Policy
adopted by Governors
Evidenced in minutes
Available for Governors or Staff
Reviewed regularly
File of Evidence: Annual Reviews
Audit Reports
Financial Control & Risk Assessment
Governor competencies
(R20)Finance staff competencies
(R11)
Reviewed at Governors meetings
(minutes)
Action plans as appropriate
•Ownership
•Timescales
Plan in to annual cycle
SIC checklist (R15B)
SIC (R15A
or
Review by Head
Identify needs
Training
Mentoring….
File of EvidenceAnnual activities (Govs/School)
Benchmarking
Contract Review
School Development Plan
Budget3 year financial plan
Reviewed by Governors (minutes)
Have working papers available
Looking for costs in SDP
Signed Best Value statement
Delegation of authority to Headteacher,-minuted
FMSiS evidenceGovernors: Business as Usual
Minutes
•Decisions clear
•Evidence of discussion
•Attendance
Register of Business Interests
Individual signed forms
Agenda item
GB Committees
Terms of Reference
GB Standing Orders
Induction process/pack
Refer to Dorset Scheme of Fin Management
Regular Finance Reports
Virements
•Check these are available
•Reviewed as required
•Mentioned in minutes
Programme of meetings for the year
Delegation of authority to Headteacher,-minuted
Licensed Deficit Agreement (if appropriate)
File of EvidenceSchool: Business as usual
Monthly financial procedures: signedLMS returnsPremier reportsBank reconciliationsAutorecsFinance reports for staff?
Annual returns
CFR
S52 sect B
Budget
Staff with financial resps
•Job Descriptions
•Recruitment- testing?
•PDRs
•Financial Objectives
External Assessment Approach
Evidence Gathering
Draft Assessment
Consult
Final Assessment
Self Assessment FormControls Assurance StatementDocument ReviewInterviews
Conditional pass - not meeting the standard in one subsection.20 working days to provide additional evidence
External Assessment
• Questions the auditors may ask….– Look at Premier Finance v FIS report and
ask for reconciliation of an account / code– Make up of Finance Committee and how
they support the school / key decisions.– Whole staff review? Part of curriculum
planning / budget setting process – how have you evidenced this?
– If you are in deficit – how do you expect to repay?
– If you have an excessive surplus – how will you utilise these extra funds?
Statement of Internal Control
• Purpose - To give the reader a reasonable assurance that all the funds managed by a school have been properly controlled and accounted for.
• However - The statement does make it clear that absolute assurance cannot be given as internal control procedures, no matter how sophisticated, cannot prevent errors or irregularities.
• Who signs - Headteacher, Chair of Governors, Chair of Finance Committee
• How Often - A statement of internal control would be signed at the end of each financial year
Statement of Internal Control
• See R15 - Guide to the Statement of Internal Control• R15A - A Specimen Controls Assurance Statement• R15B - Pre-Certification Checklist for Governors
Financial Risk and Control checklist can help to inform Governors before signing the SIC.
Governor Involvement
• Governing Body legal responsibility for use of public funds – Accountability– Best Value / Value for Money
• FMSiS extra workload for governors?– Initially yes, but long term no, as FMSiS
should form part of Finance Committee agenda over the course of the year.
Governor Involvement
• Competency check (see example)– Identify training needs– Identify expertise in Finance Committee– Not a device to question Governor
capabilities
• Governor decisions / reviews / recommendations are minuted
• FMSiS as a standing agenda item
Governor Involvement
• Do not over load governors with paperwork• Opportunity for governors, Headteacher and
Finance Officer to demonstrate good practice already in place.
• What is FMSiS about? What needs to be done?– The key documents governors need to see / sign
off• Best Value Statement• Pre-certification checklist• Statement of Internal Control• Policies
Governor Involvement
• Provide a summary of evidence and how this supports each competency (self assessment tool)
• Agree at Finance Committee timetable for governors to achieve the standard
• Report to Full Governors FMSiS
Help
• If you have problems getting started or with completing the assessment ask for help
• Jill Mason (01305 225918) for support/advice on FMSiS
• Your SAFSO for problems with your financial systems
• Governor Services (01305 224156) for issues regarding the running of the Governing Body
• Someone who has ‘done it’ for advice, reassurance, examples
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