Finance and SFVS for School Governors Core Responsibility Overseeing the financial performance of the school and making sure its money is well spent

To ensure children get the best outcomes. Schools must show parents, auditors and regulators that they are achieving value for money. Schools have a delegated budget to cover salaries, running costs, maintenance and equipment. The Governing Body is responsible for managing this budget. Finance for School Governors

LA Budget The School Budget Share from your LA covers the majority of your budget for all pupils aged This is your core budget. Grants Your school may receive funds or grants from the government to support specific initiatives and strategies Other income Other income is income derived from a variety of sources, and may include: - income from lettings - contributions from parents - parental fundraising - sponsorship Three Channels of Income

Dedicated Schools Grant The numbers of children used in this calculation are obtained from the schools census taken in January to give a figure for April.

Pupil Premium The Pupil Premium is additional funding given to schools so that they can support their disadvantaged pupils and close the attainment gap between them and their peers.

Possible School Budget Allocation

Your Governing Body Deploys resources in line with the school’s priorities Governing Body Approves the annual budget – May delegate this responsibility to a Finance or Resources Committee to review Works within the limits of the delegated budget Monitors expenditure against budget Safeguard public money (Best Value) Completes the Schools Financial Value Statement every year (SFVS) and submits it to your Local Authority.

Monitoring School Finances The Governing Body oversees how the school budget is spent. The Governing Body should be concerned with how money is being spent, rather than what is being spent. Governors need to ensure that resources are spent according to identified priorities, such as those set by the SDP. It is best practice for the Governing Body to set up a finance committee. The finance committee should have delegated powers. The committee should probably meet about 4-6 times a year

Budgetary Control Activity One: How do you as governors monitor your budgets over time?

Budgetary Control As part of your budgetary control measures your governing body will: receive reports via Finance Committee (if applicable) at least termly conduct financial analysis and produce explanatory notes relating to the school’s budget; compare the budget against the actual expenditure to the year end Do you monitor: Expenditure on teaching staff, activates and learning resources

Medium Term Financial Plan This represents in financial terms a plan for at least the next three years. It anticipates and allocates resources in accordance with the School Improvement/Development Plan. It should: reflect school vision, aims and objectives; include all information sources of income projected over the next three years together with detailed information on costs, particularly staffing;

Factors affecting Medium Term Financial Plan Staff Cost Pupil numbers Long term commitments Budget Changes Continuous review 3 Year Plan and School Priorities

Financial Control The Governing Body must be sure that the school maintains proper accounting records For a school to manage its budget to the best of its ability and ensure that pupils gain the maximum from the expenditure, Governors must ensure effective control over payroll – (Effective workforce deployment) purchasing (Procurement) school assets voluntary funds income received the banking system financial management system petty cash holdings and payments The Governing Body must be sure that the LA is provided with accurate and up-to-date information on demand or when necessary.

Schools Financial Value Statements The Financial Management Standard in Schools (FMSiS) was withdrawn by the Secretary of State with effect from 15 November The Schools Financial Value Standard (SFVS) replaces the FMSiS. The DfE worked with schools to design the SFVS. The SFVS will assist schools in managing their finances and help ensure that they have secure financial management in place. Unlike FMSiS, SFVS is not externally assessed. Because Governing Bodies have formal responsibility for the financial management of their schools, the standard is primarily aimed at Governors.

How do Schools Complete SFVS The SFVS contains 23 questions in four sections (A-D) which Governing Bodies should formally discuss annually with the head teacher and senior staff. In the section E, Governors should summarise actions and the timetable for reporting back. Each action should have a specified deadline and an agreed owner. The Governing Body may delegate the consideration of the questions to a finance or other relevant committee. However, a detailed report should be reviewed by the full Governing Body. The Chair must sign the completed form. The school must send a copy of the signed standard to their LA's finance department.

Schools Financial Value Standard What does this look like

Schools Financial Value Standard A: The Governing Body and School Staff 1.Governing body and staff have adequate financial skills 2. Governing body have a finance committee (or equivalent) 3. Definition of responsibilities of governing body and school staff 4. Monitoring reports of the school’s budget position 5. Business interests of governing body members 6. Access to an adequate level of financial expertise 7. Review of staffing structure

Schools Financial Value Standard B: Setting the Budget 8. Link with school budget and its plan 9. Forward projection of budget 10. Well-informed and balanced budget 11. Outturn in line with budget projections

Schools Financial Value Standard C: Value for Money 12. Benchmarking 13. Procedures for purchasing goods and services 14. School balances 15. Maintenance of premises and assets 16. School collaboration with others 17. Improved the use of resources

Schools Financial Value Standard D: Protecting Public Money 18. No outstanding matters from audit reports 19. Guard against fraud 20. School’s whistleblowing arrangements 21. Accounting system that is adequate and properly run 22. Adequate arrangement for audit of voluntary funds 23. Appropriate disaster recovery plan

Schools Financial Value Standard C: Value for Money What does this look like for you? 12. Benchmarking 13. Procedures for purchasing goods and services 14. School balances 15. Maintenance of premises and assets 16. School collaboration with others 17. Improved the use of resources

Schools Financial Value Standard The Year Planner for SFVS

Schools Financial Value Standard Good Practice What can governors do to create an efficiency culture? Make the link between spending and pupil outcome to improve attainment Ensure schools have access to effective finanical management Establish efficiency as the a norm Ensure the school use all the information available Challenge the efficiency