Financial Management Standard in Schools Sue Parker Richard Scott School Support Team - Finance Introduce yourself Explain fire procedures etc. Establish what committees the delegates are on – not all will be a part of the finance committee so may need to tailor some discussions with this in mind

What we are going to cover Brief overview of FMSiS Standard agenda items Documents to be reviewed annually Meeting minutes

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”

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

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.

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.

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

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

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

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

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

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

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

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

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.

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’

Useful Contacts fmsis@essexcc.gov.uk WWW.FMSIS.INFO For self evaluation tool external accreditation tool resource documents fmsis@essexcc.gov.uk Questions/clarification on any aspects of FMSiS