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FMSiS – what is to be covered

Financial Management Standard in Schools FMSiS Presented by David Dilling Wednesday 6 November 2008. FMSiS – what is to be covered. What it is Where to find it How to use it How it links to the audit process Understanding the requirements Governing Body role. FMSiS What is it?.

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FMSiS – what is to be covered

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  1. Financial Management Standard in SchoolsFMSiSPresented by David DillingWednesday 6 November 2008

  2. FMSiS – what is to be covered • What it is • Where to find it • How to use it • How it links to the audit process • Understanding the requirements • Governing Body role

  3. FMSiS What is it? • Clear and consistent standard for financial management • A benchmark to encourage self improvement • Self evaluation tool • A library

  4. FMSiS Requirements - s151 • s151 Local Government Act 1972 requires LAs to ‘make arrangements for the proper administration of their financial affairs and shall secure that one of their officers has responsibility for the administration of those affairs’ • The Standard requires that schools comply with the rules established by and the information requirements of the s151 officer.

  5. FMSiS Where to find it • Links from Finance Matters on Croydon EdNet • The main website http://www.fmsis.info/ • Search on Google for “Financial Management Standard & Toolkit” or just FMSiS

  6. FMSiS How to use it • Key stakeholders complete separately • Meet to review/develop action plan • Summarise for submission to LA • Governing Body/Finance Committee meet to review/approve action plan

  7. FMSiS – what is to be covered • What it is • Where to find it • How to use it • How it links to the audit process • Understanding the requirements • Governing Body role

  8. FMSiS and Audit • Croydon has an internal audit process that is operated by Deloitte • The FMSiS requirements were largely covered by the existing audit process • Hence decided to enhance the audit to include FMSiS at no cost to schools

  9. FMSiS Requirements - Timescales • Secondaries to meet criteria by Mar 07 • 40% of other schools by Mar 2008 • 80% of other schools by Mar 2009 • 100% of schools by Mar 2010 • For Croydon schools, they all needed to be ready from 1st April 2007. • Significant awareness raising was undertaken from September 2006

  10. Audit and FMSiS • So far most schools assessed are passing FMSiS but not the first time • However, many schools seem to be surprised by the audit process and end up doing last minute work to satisfy the requirements, including calling emergency governor meetings • In the current year 18 primary schools have been assessed to final report stage since April 2008 • Only 5 passed FMSiS at the draft stage • 5 had still not passed at final report stage • Only about 20 schools will not have had an audit and FMSiS assessment by the end of March 2009

  11. The Audit process • Visit is notified a few weeks in advance • Visit takes place and debrief given • Draft report is sent to school and a response is required for final report • Final report is issued • Various requests for information will be issued in following months asking for progress made. Schools must respond to these

  12. FMSiS Requirements

  13. FMSiS Leadership & Governance • Staff and Governors understand their financial management roles and responsibilities. • School governance enables Governors to fulfil their financial management roles and responsibilities. • Head teacher and Bursar lead by example with financial integrity. • The Governing Body has considered, signed and published controls assurance ensuring resources are managed correctly. • Effective Governance arrangements are in place covering issues including conflict of interest and whistle blowing.

  14. FMSiS People Management The Governing Body includes individuals who are able to: • Be an effective ‘critical friend’ • Provide strategic leadership • Ensure accountability Staff with financial management responsibilties are organised to allow them to: • Provide a strategic view. • Ensure accountability requirements are met. • Facilitate financial processes effectively.

  15. FMSiS Policy & Strategy • Financial performance is benchmarked against other similar schools. • The school’s Annual Budget is - Realistic and affordable - Approved by the Governors (timely) - Reflects the SDP - Consistent with longer term financial plans

  16. FMSiS Partnerships & Resources • The LA and school have agreed their respective financial management roles and responsibilities. • The school applies ‘best value’ principles when dealing with all suppliers and contractors.

  17. FMSiS Processes • Financial management information is Relevant Accurate Timely User Friendly • School provides the LA with accurate and timely information as required • Complies with CFR on a timely basis • Has current approved financial regulations and procedures that meet the school’s needs and are applied consistently. • Maintains proper accounting records • Evidences effective control over financial management systems/income/payroll/purchasing/ banking/petty cash/taxation/voluntary funds/assets

  18. Compliance is compulsory • Ofsted including the meeting of the Standard as one of their statutory requirements in the sef under Leadership and Management. Any schools failing the Standard will not be able to achieve an excellent rating • After the external assessment the DCSF will be advised of the result and will review schools that fail • Failure may result in additional financial audits that will be charged to the school

  19. Activity – The standard • In groups identify who you think should be concerned in each of the aspects of the standardUse G for governors H for headteacher B for bursar/finance officer Note can be 1 or 2 or 3

  20. The Activity answer • All areas are the responsibility of all three except for • Governors all but two ie not -role of bursar, -staff financial management etc • Headteachers involved in all of them • Bursars all but 9 ie notrole of head, governing body, governance, whistleblowing, culture, all people management, staff deployment • Important note – many schools do not have proper bursars so responsibility is probably even less

  21. FMSiS – what is to be covered • What it is • Where to find it • How to use it • How it links to the audit process • Understanding the requirements • Governing Body role

  22. Why are schools failing FMSiS? • Most schools that fail seem to be unaware of what is required • Few have completed the online self assessment which highlights areas that need to be addressed • Governance is often particularly weak • Competencies have not been assessed • Policies/scheme of delegation not in place or reviewed annually • Benchmarking not attempted • Various other smaller matters that are more numerous (25 in one school) than other schools

  23. Contact information • CYPL Finance (Schools) Team • schools.finance@croydon.gov.uk • 020 8760 5610 • FAX 020 8633 9577 • Finance Matters on www.croydon.lgfl.net

  24. Thank you

  25. FMSiS How to use it

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