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Finance and SFVS for School Governors

Finance and SFVS for School Governors. Core Responsibility: Overseeing the financial performance of the school and making sure it is money well spent. Finance for School Governors - Purpose.

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Finance and SFVS for School Governors

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

  2. Finance for School Governors - Purpose 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.

  3. Three Channels of Income LA BudgetThe School Budget Share from your LA covers the majority of your budget for all pupils aged 3-16. This is your core budget. GrantsYour school may receive funds or grants from the government to support specific initiatives and strategies Other incomeOther income is income derived from a variety of sources, and may include: - income from lettings - contributions from parents - parental fundraising - sponsorship

  4. 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. Plus Sports Premium

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

  6. Possible School Budget Allocation

  7. Your Governing Body Role • 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 • Safeguards public money (Best Value)

  8. Process for Monitoring School Finance • There is no set process for governing bodies to monitor a school's finances. How governors choose to do this will depend on a range of factors, including: • Whether it is an academy or maintained school • The size of the school and the budget • The structure of the governing body • Many schools (maintained and academies) choose to have a finance committee – (Structures) • At these meetings, the headteacher, school business manager (SBM), and any other budget holders report to the committee on matters of school finance

  9. Some Example Reporting • The SBM presenting the financial monitoring report • The special educational needs co-ordinator (SENCO) presenting a proposal for a new piece of equipment  • The headteacher presenting on a possible change to the staffing structure • Link governors, for example for the pupil premium or P.E and sport premium, could also be asked to present to the finance committee.

  10. Important Factors for Monitoring School Finances The Governing Body oversees how the school budget is spent.Governors need to ensure that resources are spent according to identified priorities, such as those set by the SIP. It is best practice for the Governing Body to set up a finance committee. The finance committee should have delegated powers. This committee should probably meet about 4-6 times a year How does your Committee feed back?

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

  12. Evidencing Effective Monitoring of Finances Governors should ensure they carefully document monitoring activity. You can do this by: • Ensuring that questions relating to finance in full governing body and committee meetings, as well as the responses given, are detailed in full in meeting minutes • Writing up detailed reports of any financial monitoring visits • Including copies of any reports from staff (such as the headteacher’s report) and any data with governing body minutes

  13. Budgetary Control (Triangulation) • 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 • (Triangulation)

  14. Medium Term Financial Plan

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

  16. Asking Probing Questions • Are resources allocated in line with the school’s strategic priorities? • Does the school have a clear budget forecast, ideally for the next three years, which identifies spending opportunities and risks? • Does the school have sufficient reserves to cover major changes such as restructuring, and any risks identified in the budget forecast? • Does the school plan its budgets on a bottom up basis driven by curriculum planning (i.e is the school spending its money in accordance with its priorities) or simply making minor adjustments to last year’s budget to ensure there is a surplus? • How can better value for money be achieved from the budget?

  17. Schools Financial Value Statements The Financial Management Standard in Schools (FMSiS) was withdrawn by the Secretary of State with effect from 15 November 2010. The Schools Financial Value Standard (SFVS) replaces the FMSiS. The DfE worked with schools to design the SFVS. The SFVS assist schools in managing their finances and helps 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.

  18. How do Schools Complete SFVS The SFVS contains 25 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.

  19. Section 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 • Have your pay decisions been reached reflecting your pay policy? • Has the use of professional independent informed part of the HT pay process?

  20. Section B:  Setting the Budget 10. Link with school budget and its plan 11. Forward projection of budget 12. Well-informed and balanced budget 13. Outturn in line with budget projections

  21. Section C:  Value for Money 14. Benchmarking15. Procedures for purchasing goods and services 16. School balances17. Maintenance of premises and assets18. School collaboration with others19. Improved the use of resources

  22. Section D:  Protecting Public Money 20. No outstanding matters from audit reports21. Guard against fraud22. School’s whistleblowing arrangements23. Accounting system that is adequate and properly run24. Adequate arrangement for audit of voluntary funds25. Appropriate disaster recovery plan

  23. Good Practice What can governors do to create an efficiency culture? • Make the link between spending and pupil outcomes to improve attainment • Ensure schools have access to effective financial management • Establish efficiency as a norm • Ensure the school uses all the information available • Challenge the efficiency – ask the question

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