Financial Management Standard in Schools

Spring 2008

Vanessa Eddey Jill Masonv.a.eddey@dorsetcc.gov.uk

j.s.mason@dorsetcc.gov.uk01305 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