Schools Finance: A Headteacher’s Guide
Your Role Ensure School Set Realistic, Understand Procedures Operate Sustainable and Framework and to Ensure Financial Strategic Financial Environment Risks are Minimised Plans Collaboration and Monitor Your Encourage Strong the Financial Financial Position Governance Management Culture 2
Regulatory Framework Scheme of Delegation and Local Procedures
Finance Manual for https://www.services2schools.co.uk/resources Heads and SLT /finance/guidance/handbooks 4
Regulatory Framework - Academies Academy Funding Agreement Trust Financial Regulations Scheme of Delegation and Local Procedures
Key School Documents Your School • Scheme of Delegation • Your SFVS return/SRM • Local Finance Procedures • Authorisation Mandate • Latest Audit Report • Budget Plan and Monitoring/Latest Management Reports • Contracts and Asset Registers 6
Identifying Financial Risk Purchasing and Paying for Paying People Income goods Conflicts of Cash Assets Interest Sound Robust Financial Decision Planning and Oversight Making Monitoring
Key Internal Controls Separation of Duties Checks and Authorisation Process Reconciliation Clear Procedure Manuals and Policies Clear Audit Trail These controls exist to protect public money but also to protect Governors, Staff and You. 8
Signatures and Online Authorisation If controls do not mitigate risk effectively, they are wasting everyone’s time for no gain. 9
What should you (or an appropriately authorised person) be signing? Orders/Invoices/Contracts BACS Payments /Cheque Staffing Payment Reports/Reconciliation System Reconciliation (e.g. FMS to LA) Bank /Petty Cash Reconciliation Bank Mandate – for bank signatories Authorisation Mandate – lists several annual documents that need authorisation before submission. 10
Common Findings Purchase Orders Contracts and Asset Registers Local Finance Procedures Self Employment Checks Reconciliations Declarations of Interest Governing Board Minutes School Improvement Plan Budget Monitoring Voluntary Funds Public Liability Insurance
Rules = Freedom
SFVS and Resource Management A: Tool To Help Governance Governors: - Gain C: Setting Assurance B: Strategy A the Budget c t i - Identify Actions o A n A and c c t t i i o Improvements Financial n o n Health and Effective Resource n o i t c n A o E: Value i t c Management A D: Staffing For Money n n o o i i t t c c A A F: G: SFVS Protecting Public Dashboard Money 13
Setting The Budget Strategic Allocation Zero Based Balancing the of Resources Budgeting Budget Strategically Looking Beyond This Year and Identifying Scenario Planning Staffing Trends Full Commentary Tools and Explaining Incorporating Risks Benchmarking(SFVS) Assumptions 14
Monitoring The Budget Regular Monitoring Report (at least monthly) Update Year-End Forecast Assess Impact on Plans, Yr 2 and 3 Specific Grant Reporting Tools 15
Influence Your Culture Challenge the Think the Norm – Dare to be Myth Busting High Expectations Unthinkable different Finance is Everyone’s Open Encourage Deal with Reality Business – Involve Communication Challenge Everyone Use the Numbers Celebrate Success 16
Stop, Think and Talk Myths and Legends Discuss 17
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