SCHOOLS FINANCIAL VALUE STANDARD (SFVS)

Transcription

1 What is the SFVS? Schools manage many billions of pounds of public money each year. Effective financial management ensures this money is spent wisely and properly, and allows schools to optimise their resources to provide high-quality teaching and learning and so raise standards and attainment for all their pupils. The SFVS replaces the Financial Management Standard in Schools (FMSiS) and has been designed in conjunction with schools to assist them in managing their finances and to give assurance that they have secure financial management in place. Who is the SFVS for? The standard is a requirement for local authority maintained schools. Other schools are welcome to use any of the material associated with the standard, if they would find it useful. Governing bodies have formal responsibility for the financial management of their schools, and so the standard is primarily aimed at governors. What do schools need to do? The standard consists of 23 questions which governing bodies should formally discuss annually with the head teacher and senior staff. The questions which form the standard are in sections A to D. Each question requires an answer of, In Part, or No. o If the answer is, the comments column can be used to indicate the main evidence on which the governing body based its answer. o If the answer is No or In Part, the column should contain a very brief summary of the position and proposed remedial action. In Section E, governors should summarise remedial actions and the timetable for reporting back. Governors should ensure that each action has a specified deadline and an agreed owner. The governing body may delegate the consideration of the questions to a finance or other relevant committee, but a detailed report should be provided to the full governing body and the chair of governors must sign the completed form. The school must send a copy of the signed standard to their local authority s finance department. There is no prescription of the level of evidence that the governing body should require. The important thing is that governors are confident about their responses. What is the role of local authorities (LAs)? Unlike FMSiS, the SVFS will not be externally assessed. LAs should use schools SFVS returns to inform their programme of financial assessment and audit. LA and other auditors will have access to the standard, and when they conduct an audit can check whether the selfassessment is in line with their own judgement. Auditors should make the governing body and the LA aware of any major discrepancies in judgements. Timetable key dates Maintained schools which had not attained FMSiS by the end of March 2010 must complete and submit the SFVS to their local authority by 31 March 2012; and conduct an annual review thereafter. For all other maintained schools, the first run through is required by 31 March 2013; and an annual review thereafter. Schools Financial Value Standard (SFVS) 1

2 The DfE website includes support notes for each question, which governing bodies can use if they wish. The notes provide clarification of the questions, examples of good practice and information on further support to assist schools in addressing specific issues. School name: Grimsargh St Michael s Cof E Primary School LA and school DfE numbers: 888/ 3580 LIST OF QUESTIONS ANSWER (/In Part/No) COMMENTS, EVIDENCE AND PROPOSED ACTIONS A: The Governing Body and School Staff 1. In the view of the governing body itself and of senior staff, does the governing body have adequate financial skills among its members to fulfil its role of challenge and support in the field of budget management and value for money? The governor skills audit is reviewed annually and any new governors are asked to complete the forms as and when they join the governing body. The Governor matrix is reviewed annually to identify skills amongst governors. All our governors have different areas which they specialise and their skills are used on different committees. Tessa Fryer is a Chartered Accountant The LCC Finance Officer offers advice and draws up reports which are presented to governors. Schools Financial Value Standard (SFVS) 2

3 2. Does the governing body have a finance committee (or equivalent) with clear terms of reference and a knowledgeable and experienced chair? The terms of reference were reviewed in the finance and staffing committee meeting and they were approved on the 3 rd February Is there a clear definition of the relative responsibilities of the governing body and the school staff in the financial field? The statement of roles and responsibilities continues to be addressed and approved by governors. It was last approved at the finance and staffing meeting 6 th May The Internal Financial Regulations were last approved by the finance and staffing governors at the meeting dated 3 rd February Does the governing body receive clear and concise monitoring reports of the school s budget position at least three times a year? The school s finance officer drafts up monitoring reports 3 times a year. Budget monitoring is a permanent agenda item in the finance and staffing meetings and is discussed in depth. Any questions and answers are in the minutes of the finance and staffing meetings. Monitoring reports are presented at finance and staffing committee meetings. Schools Financial Value Standard (SFVS) 3

4 5. Are business interests of governing body members and staff properly registered and taken into account so as to avoid conflicts of interest? The school holds a register of business interests (held in the head teacher s office and on the school website) for all governors and staff with any responsibilities.eg bursar, head teacher, ICT coordinator. Business interests of the governors are also on the school website. This is updated annually in the autumn term. Any new governors are asked to complete the form as part of their induction. 6. Does the school have access to an adequate level of financial expertise, including when specialist finance staff are absent, eg on sick leave? In part The school buys into the full finance support package and this gives access to an adequate level of financial expertise. The school hold a staff competency matrix. This is located in the head teacher s office. Finance training is ongoing for Mrs Elspeth Towers. Following the appointment of Mrs Caroline Towers, deputy headteacher, training of the finance 6 system is planned to start. If needed, Tessa Fryer would be able to assist on all aspects of finance. The accman password is stored in the safe. Schools Financial Value Standard (SFVS) 4

5 7. Does the school review its staffing structure regularly? There has been and continues to be changes to the staffing structure. All discussions that take place are documented in the finance and staffing minutes and any costings are carried out by the finance officer. The school has a robust management team with a wealth of knowledge. This comprises of the head teacher, the deputy headteacher and a full time teacher with TLR responsibilities and one part time teacher with TLR responsibilities. 8 Have your pay decisions been reached in accordance with a pay policy reflecting clear performance criteria? The Governors adopt the Lancashire County Council s pay policy. This was adopted at the finance meeting dated 7 th October We buy into the LCC Schools HR & Payroll services and they advise us as and when needed. 9. Has the use of professional independent advice informed part of the pay decision process in relation to the headteacher? The schools adviser is present at the headteacher s appraisal meeting and advises the governors in the performance criteria in order for the governors to makes an informed decision. We buy into the LCC Schools HR & Payroll services and they advise us as and when needed. Schools Financial Value Standard (SFVS) 5

6 B: Setting the Budget 10. Is there a clear and demonstrable link between the school s budgeting and its plan for raising standards and attainment? 11. Does the school make a forward projection of budget, including both revenue and capital funds, for at least three years, using the best available information? The finance officer prepares the full budget in accordance with the School Improvement Plan. The school budget has a cost centre heading for the school improvement plan. The School Improvement Plan has an action plan for every area of the curriculum and these are each costed with an aim to raise standards. As detailed in the SIP English and maths continue to be a priority and in the financial year 2015/2016 the school spent 2700 on maths resources and 3800 on English resources which includes Oxford university Press and SPAG.com. Computing also continues to be a priority with 7960 being spent on resources and updating an interactive whiteboard in one of the classrooms to the new pro-wise multi touch board. These will continue to be replaced on a year by year rolling programme. Funds are allocated in the school budget to provide support to raise standards and achievements through the appointment of teaching assistants and the continued running of a nurture group. The school does have a long term financial plan and the schools finance officer prepares this and it is presented to the finance governors. The long term plan can be located in the finance and staffing minutes file in the head teachers office. A buildings condition survey has been completed on the 26 th January The report has now been sent out for Schools Financial Value Standard (SFVS) 6

7 tender to local builders to rectify an items that need addressing. An LCVAP bid to renew the boiler and controls has been submitted to the diocese. The governors are aware that if accepted, 10% of the total project will be paid by the school and this will be factored in to budget preparations for 2017/ Does the school set a well-informed and balanced budget each year (with an agreed and timed plan for eliminating any deficit)? 13. Is year end outturn in line with budget projections, or if not, is the governing body alerted to significant variations in a timely manner, and do they result from explicitly planned changes or from genuinely unforeseeable circumstances? The full budget preparation service is used and together with the finance officer the school sets a balanced and well-informed budget. In the financial year 2016/2017, a deficit budget has been set. The governors are happy to use a small proportion of the schools reserves to set the budget. The governors are aware of the clawback amount and that this amount fluctuates. The governing body review the budget actual spend against budget throughout the year and the governing body are aware of any variances through the monitoring reports prepared by the finance officer and the reasons for them. In 2015/2016, the estimated carried forward was greater than the actual. The governors monitored this closely and our actual carried forward meant that no clawback was applied. Schools Financial Value Standard (SFVS) 7

8 C: Value for Money 14. Does the school benchmark its income and expenditure annually against that of similar schools and investigate further where any category appears to be out of line? School undertook a benchmarking exercise in January This was previously undertaken in October Benchmarking is a useful tool for the Governors to see how the school compares to other both statistical neighbours and also nationally. 15. Does the school have procedures for purchasing goods and services that both meet legal requirements and secure value for money? The school applies best value in purchases. As set out in the Internal Financial Regulations, which the governors have approved, any purchases over 5,000 and less than 50,000, three written quotes are obtained. 16. Are balances at a reasonable level and does the school have a clear plan for using the money it plans to hold in balances at the end of each year? The governors have plans in place to spend the money allocated to the school but are very mindful of increased costs e.g. Salaries/ pensions/ utility bills. In the financial year 2016/2017, a deficit budget has been set. The governors are happy to use a small proportion of the schools reserves to set the budget. The governors are aware of the clawback amount and that this amount fluctuates. Schools Financial Value Standard (SFVS) 8

9 17. Does the school maintain its premises and other assets to an adequate standard to avoid future urgent need for replacement? The school buys into Total Property Management for its premises and the governors believe in a proactive maintenance approach rather than a reactive. We have a strong buildings committee and they advise and make decisions on all aspects of the school building. The recent buildings condition survey will also assist governors in scheduling and budgeting of maintenance. The completion of the areas mentioned in the report will help maintain the premises to a good standard. 18. Does the school consider collaboration with others, eg on sharing staff or joint purchasing, where that would improve value for money? Some inset training days are with other cluster schools. We also carry out moderation with other cluster schools. The school works closely with cluster schools sharing ideas and costs e.g. coach travel for the Shakespeare festival. The head teacher, the deputy headteacher and the bursar attend cluster meetings. These meetings are invaluable as ideas and knowledge is shared. 19. Can the school give examples of where it has improved the use of resources during the past year? LED lighting has been replaced fluorescent lighting throughout the school. This will prove cost efficient and help to reduce future electricity bills together with the solar panel installed in the previous financial year. Schools Financial Value Standard (SFVS) 9

10 The ICT suite is used for the Quiet club and also for KOGS. KOGS and Nursery pay an annual buildings and admin support charge. Governors review this charge and this has been increased for KOGS. The school hall is used for holiday clubs, exams for dance, the community choir, Dance lessons, Nippon (martial arts) and tennis. The sports apprentice is used by the school to offer more after school activities. Purchases are linked to priorities detailed in the School Improvement Plan. Staffing resources have been reviewed and a full time HLTA allows supply cover at short notice. D: Protecting Public Money 20. Is the governing body sure that there are no outstanding matters from audit reports or from previous consideration of weaknesses by the governing body? An internal audit was completed in June Audits are undertaken by the finance officer on a monthly basis. An internal audit is planned for Schools Financial Value Standard (SFVS) 10

11 21. Are there adequate arrangements in place to guard against fraud and theft by staff, contractors and suppliers (please note any instance of fraud or theft detected in the last 12 months)? All financial transactions are carried out under a dual control. Finance 6: The bursar inputs the orders, the head teacher authorises them and then Mrs Towers or a teaching assistant will mark off orders to the delivery note when they arrive. Banking: the banking is undertaken by Mrs Elspeth Towers and then the bursar inputs this on to the oracle and an is sent to the finance team. Equipment Register: When goods are ordered that are over the value of 100, the bursar inputs them onto the asset register. Each year, Mrs Towers will undertake an audit of the asset register. Any changes to the asset register are brought to the attention of the finance and staffing governors and they then have to agree to the disposal of assets. School Fund accounts: These are drawn up by the bursar. They then get signed off by the head teacher and the chair of the finance and staffing committee and then they go to the auditor. Once audited and approved by governors the figures are input onto the portal for the LCC finance team. 22. Are all staff aware of the school s whistleblowing policy and to whom they should report concerns? All members of staff and governors are aware of the whistleblowing policy. A poster is on display in the staff room. Schools Financial Value Standard (SFVS) 11

12 23. Does the school have an accounting system that is adequate and properly run and delivers accurate reports, including the annual Consistent Financial Reporting return? The school uses the Finance 6 system. Reports are generated from this system to report to finance governors and the finance officer generates the long term plans and CFR returns. 24. Does the school have adequate arrangements for audit of voluntary funds? Donations are paid into the school fund. These are logged in the cash book records and recorded on the accounts. The school fund accounts are checked and signed by the head teacher and the chair of the finance committee. These are then audited by an independent body Mr Baty. Once approved by the governors, the accounts are then registered on the schools portal as being completed together with the profit, income and expenditure amounts. 25. Does the school have an appropriate business continuity or disaster recovery plan, including an up-to-date asset register and adequate insurance? In Part There is an up to date equipment register and insurance is arranged through the diocese and LCC. Going forward school will backup not only to the curriculum server but also online. This package is being purchased through Ed-It, the IT company the school uses. The school emergency plan has been completed and will be signed off by Governors at the Buildings meeting in 26 th January The school emergency plan is to put on to the school website under a password protected section. Schools Financial Value Standard (SFVS) 12

13 OUTCOME OF SELF-ASSESSMENT E: Summary of agreed remedial action and timetable for reporting back: Training on finance to continue for Mrs Elspeth Towers Ongoing. Training on finance to be planned for Mrs Caroline Towers. The buildings condition report has been sent out for tender - March 2017 [signed] Date: February 2017 Chair of Governors Schools Financial Value Standard (SFVS) 13