1. 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

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

3. 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”

4. 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

5. 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.

6. 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.

7. 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

8. 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

9. 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

10. 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

11. 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
to internal audit by end of summer term

12. 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

13. 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

14. 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

15. 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.

16. 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’

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