1. Financial Management Standard in Schools Spring 2008 Vanessa Eddey Jill Mason v.a.eddey@dorsetcc.gov.uk j.s.mason@dorsetcc.gov.uk 01305 225919 01305 225918

2. 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

3. Background Why do we need FMSiS? Effective financial management so that Schools can: Exercise proper controlAllocate and deploy and stewardship over theresources effectively significant amounts of publicto meet school priorities funding entrusted to them.for development and improvement.

4. What is FMSiS? General documents Summary documents Resource documents

5. Five key areas to the Standard 1. Leadership and Governance Clear Leadership and effective Governance 2. People Management Staff are well trained and ably led 3. Policy and Strategy Resources deployed to achieve objectives 4. Partnerships and Resources Efficient and effective use of resources 5. Processes Effective processes to achieve financial goals

6. www.fmsis.info

7. SAFSO Team web page

9. Timetable for schools Set by DCSF: Secondary Schools to meet the standard by 31 March 2007 40% of remaining schools by 31 March 2008 40% of remaining schools by 31 March 2009 20% rest of schools by 31 March 2010 In 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.

10. 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.

11. 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 components are in place.

12. 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.

13. Self-assessment tool (Schools)

14. 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.

15. Self-Assessment Activity

16. 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.

17. 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

18. File of Evidence : The Policy framework Dorset Scheme of Financial Manageme nt 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

19. 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….

20. File of Evidence Annual 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

21. FMSiS evidence Governors: 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)

22. File of Evidence School: Business as usual Monthly financial procedures: signed LMS returns Premier reports Bank reconciliations Autorecs Finance reports for staff? Annual returns CFR S52 sect B Budget Staff with financial resps Job Descriptions Recruitment- testing? PDRs Financial Objectives

23. External Assessment Approach Evidence Gathering Draft Assessment Consult Final Assessment Self Assessment Form Controls Assurance Statement Document Review Interviews Conditional pass - not meeting the standard in one subsection. 20 working days to provide additional evidence

24. 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?

25. 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

26. 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.

27. 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.

28. 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

29. 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

30. 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

31. 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