Financial Management Standard in Schools

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Financial Management Standard in Schools

• Andrew Webster
• Value for Money Unit
• Department for Children Schools and Families

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Content

• FMSiS
• What we intended
• What has happened
• What we need to do about it

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Principles of FMSiS

• FMSiS is a simple statement of what a well
  financially-managed school would look like.
• Does not raise the bar of FM about doing the
  basics well.
• Provides a more consistent approach to FM across
  22,000 schools, formalising what schools should
  already be doing

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Change of status

• Originally a self-improvement tool
• As part of the deal to introduce the multi-year
  Dedicated Schools Grant, NAO asked to make FMSiS
  compulsory
• Funding was included in the 2005-06 baseline to
  cover this

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Meeting the Standard

• Ministers announced an expectation that secondary
  schools would meet the FMSiS by March 2007, and
  that other schools would meet it by March 2010
• Now written into LA Schemes for Financing Schools
• Local authorities are required to report to the
  DCSF that their schools have met it

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Lets be clear

• Schools must meet the Standard
• Section 151 officers must report how many schools
  meet the FMSiS and ensure schools are brought up
  to the Standard
• There is no set way for LAs to reach a decision
  on whether schools meet the FMSiS
• There is no set evidence that needs to be
  provided to prove you meet the Standard

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FMSiS secondary schools

• Most schools worked through the self-assessment
  process via www.fmsis.info
• Over 2,000 schools have received certificates and
  logo
• 79 of secondary schools had passed FMSiS (based
  on returns from 92 LAs) - more have passed since
  March

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Looking ahead

• 40 of primary, middle and special schools by
  2008
• 80 of schools by 2009
• All remaining schools by 2010
• Very flexible approach to give LAs more options
  over which schools to assess first
• Not a tick-box approach aim to embed practice

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Resources

• Online self-evaluation tool is a one stop shop
  for finance resources including word templates
  for personalising documents
• Annually updated latest version is available
  now www.fmsis.info
• Training available all LAs have received
  funding from us

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FMSiS website updates

• Self-assessment/external assessment docs have
  been merged
• Evidence has been made more flexible
• More guidance provided
• Statement of Internal Control

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Good Practice Wiltshire CC

• Realised early on that getting Governors on board
  has been key to getting smaller Primaries up to a
  sufficient level before an external assessment
  can take place
• Held twilight/evening training sessions
  specifically aimed at Primary Governors, have
  proved to be very successful
• Secondary schools support primary schools in
  their area

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Good Practice Wiltshire CC

• Grouped schools into small clusters of around 6-8
  schools. Schools sent head / governor / finance
  officer to cluster meetings to go through the
  process which included
• Logging on to the web site to look at using the
  assessment tool
• Looking at likely gaps in information such as the
  statement of internal control
• Looking at the documentation required.
• Looking at preparing for the external assessment.
  
• Looking at a previously assessed schools
  portfolio of evidence.

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Good Practice Leics CC

• Light touch approach
• All schools complete their self-assessment
• The LA undertakes a risk assessment
• Schools that do not score well enough are
  required to undertake a full external assessment
• Schools that qualify for a light touch approach
  are required to submit their self-assessment for
  review and a few key documents

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Good practice Notts CC

• A primary schools perspective
• several training sessions
• written information
• advice from the LA finance consultants (very
  approachable)
• a local evidence list making it very easy to
  understand exactly what is required for each area
  of the assessment

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Good practice Notts CC

• because the LA are carrying out the assessment
  there is evidence they hold centrally, such as
  budget plans, audit reports, Scheme of Financial
  Delegation etc, that we do not have to provide
  and if we buy into our LA Governor Services
  package then that takes care of the governor
  induction aspect
• told not to compile a huge paper file of evidence
  but just to attach documents to the self
  assessment electronically

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Concerns from IRU

• Where the FMSiS is externally assessed, timing
  and content need to be coordinated with the work
  of the internal audit
• Smaller schools need assistance from their
  authority, even where the authority does not
  carry out much of the finance function on the
  schools behalf.

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Other practice we have been informed about

• Some schools have been given a deadline for
  meeting the FMSiS with no further support or
  guidance in one case, the school was not even
  given the link to the FMSiS website
• Schools in one LA were working through the
  self-assessment only to be called by their LA to
  say that they had passed the Standard
• Schools are being asked to provide specific
  pieces of evidence, sometimes that have
  absolutely no relevance to the FMSiS

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Top tips for schools

• Dont panic
• Familiarise yourself with the Standard and
  suggested evidence cross-reference as you do
  the job
• Start at section 5 and work backwards
• Ask your LA for help/examples of evidence that
  other schools have provided
• Be honest

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Any questions?
Contact andrew.webster_at_dcsf.gsi.gov.uk pauline.she
ehy_at_dcsf.gsi.gov.uk
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Questions for you

• What good practice do you have in supporting your
  primary schools to meet FMSiS, particularly in
  minimising burdens?
• What have been the key issues to implementing
  FMSiS to primary/special schools and how have you
  overcome them?
• Which aspects of the Wiltshire, Leicestershire
  and Nottinghamshire models do/can you adopt? What
  do you do differently?