School Governors Forum
Audit Briefing
January 2016
Presenters : Peter Jackson, Audit Manager Nicola Burton, Senior Auditor
Introduction
•
Welcome•
Housekeeping•
RegistrationBriefing Content
1. School Financial Value Standard (SFVS) Update
• SFVS background information
• Previous years’ submissions
• SFVS issues
• Moving forward
• Documentation
Briefing Content
2. School Voluntary Fund Update
• Governor Responsibilities
• Issues
• Actions needed
• Key Actions / Arrangements
School Financial Value Standard Update SFVS Background Information
•
2015 /16 will be the fourth year that Doncaster’s maintained schools complete the SFVS•
Mandatory Department for Education (DfE) requirement•
Replaced the Financial Management Standard in Schools (FMSiS) in September 2011•
2012/13 was the first year Doncaster schools completed the new standard•
Submissions administered by Local Authority (Internal Audit) on behalf of DfESFVS Background Information
•
Previously 23 questions, 2015/16 includes 2 additional questions regarding pay decisions•
Annual deadline date of 31st March•
To give assurance that secure financial management is in place•
Aimed at Governors as they are responsible for schools financial management•
Internal Audit use SFVS returns to inform their audit planPrevious Year Submissions
•
All schools completed returns for 2014/15•
Many not received by deadline date, some not received until May 2015•
Internal Audit MUST submit the SFVS Assurance Statement by the stipulated date•
Late submissions from schools creates resource issues•
Excessive Internal Audit hours spent administering the 2014/15 SFVS returns.•
Majority of time spent contacting schools regarding late or incomplete SFVS returns and supporting information.SFVS Issues
•
Common issues are:• Late submission of forms • Incorrect forms completed
• Previous years forms submitted • Incomplete forms
• No actions plans submitted where questions
not all fully compliant
• Un-approved forms
•
Apparent that lack of forward planning causing completion and authorisation delaysSFVS Issues
•
Governors unable to evidence that they are effectively carrying out their financialmanagement role
•
Not LA responsibility to ensure the forms are completedMoving forward
•
43 working days left until deadline, 3 forms received to date but 2 returned as usedsuperceded forms
•
Deadline date falls during Easter holiday!•
Plan ahead – ensure that the preparation of the SFVS form is planned in throughout the year•
GB meeting should be scheduled prior todeadline to discuss (can be Finance Committee (if previously delegated) but reported to full GB)
•
Action plan items monitored at subsequent meetingsMoving forward
•
Governors must be completely satisfied that the responses on the return are a true representation of their school’s financial management•
Governors can complete the SFVS at any time of the year•
SFVS questions form part of audit programme- check how accurate the SFVS return is•
May also select a sample to visit and checkrobustness of financial management process and governance
A continuous cycle
Undertake Assessment, approve,
submit & monitor
Review, update, approve, submit &
monitor Review, update,
approve, submit & monitor
Documentation
•
Access to the Doncaster SFVS is via Doncaster Council’s Internet Sitehttp://www.doncaster.gov.uk/services/schools/the-school-s-financial-value-standard
•
Includes• 2016 SFVS return and instructions • Evidence list with support notes
• SFVS additional resources – includes skills matrices • SFVS example timetable
Additional SFVS Questions
•
Two additional questions;Question 8 - Have your pay decisions been reached in accordance with a pay policy reflecting clear performance criteria?
Suggested evidence - Pay policy, Governing Body / Management Committee minutes, Pay decision documentation.
Question 9 - Has the use of professional independent advice informed part of the pay decision process in relation to the headteacher?
Suggested evidence - Documented Independent advice, Pay decision documentation, Governing Body / Management
What support is available
•
Internal Audit Team - 01302 862934 / 862651•
Email address –•
Websitehttp://www.doncaster.gov.uk/services/schools/the-school-s-financial-value-standard
School Voluntary Fund Update
•
Provide clarity over current guidance we are providing to schools•
Why are we here? - differing practices that don’t meet the criteria we expect•
Why is it important? – School funds are primarily parents money – not the schools•
Governors are responsible for proper, effective stewardship of fundsSchool Voluntary Fund Update
•
Parents/guardians support school fundraisingactivities and have a reasonable expectation that these funds are being spent for the benefit of
their children and not for other purposes
•
Session is seeking• to provide clarity over what money should be spent on • and how governors can discharge their
Governor Responsibilities
Governors are responsible for ensuring:
•
a Treasurer is appointed to be responsible for administering the School Voluntary Fund•
that proper procedures, records and security arrangements are maintained to account for all School Voluntary Fund transactions•
that the Treasurer has a copy of theseprocedures and is operating in accordance with them
Governor Responsibilities
•
that others handling Voluntary Fund money are aware of the requirements of these procedures and that they are also operating in accordance with them•
that all bank accounts must be in the School's Voluntary Fund name•
that there is only one current account, where there are surplus funds an interest bearing account can be usedGovernor Responsibilities
•
that at least three people are authorised to sign cheques, with two signatures required at any one time. Any change of signatory is approved bythem
•
that bank statements and bank reconciliations for all bank accounts are examined monthly andsigned as correct by the Headteacher or by
another independent responsible officer who is suitably skilled /experienced. This is to ensure that reconciliations are properly prepared and that bank accounts are not overdrawn
Governor Responsibilities
•
that if there is a debit card attached to the School Voluntary Fund bank account (to enable on-line purchases to be made) it does not have a cash withdrawal facility and that all transactions made using the debit card are countersigned by anindependent person.
•
that policies are established regarding the levels of income held, the petty cash float and theGovernor Responsibilities
•
that a Summary of Accounts Statement and other end of accounting year statements are correctly prepared covering all School Voluntary Fundtransactions
•
that all accounting records, documentation and year-end statements are available for auditpromptly
•
that when required a Headteacher/Treasurer Handover Form is properly completedIssues
•
Funds being used to purchase items outside usual scope of school fund• Refreshments for staff meetings and visitors • Gift vouchers for staff
• School meals arrears
• Travel expenses, eg petrol, parking costs • Gifts
Issues…
•
Financial information provided to GB was not sufficiently detailed to enable them to carry out their roles and responsibilities as custodians of the funds•
Voluntary fund policies in place not sufficiently transparent and not in line with FinancialRegulations or School Fund Policy and Guidance issued
•
No Mission Statement for the use of the voluntary fundsIssues…
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No cross referencing in the record to supporting documentation or receipts•
No independent spot checks carried out on records•
Information regarding voluntary funds onlypresented to GB at the time of the annual audit, not at regular intervals throughout the year
•
Appointment of the voluntary fund auditor was not documented in the GB minutesKey Actions / Arrangements
All schools will ensure that:
•
the voluntary fund is only used to purchase items within the scope of the fund. Schools will not use the voluntary fund to purchase refreshments for staff meetings or visitors, gift vouchers for staff, gifts or flowers, pay for school meals arrears or travel expenses. The school’s voluntary fund mission statement will document what it should be used for.Key Actions / Arrangements
•
full accurate financial records are maintained to ensure a full audit trail. This will include cross referencing receipts and invoices, regularreconciliations evidenced in the records with a signature and date, paying in slips marked to show that bankings are undertaken by 2
members of staff, random spot checks will be carried out and evidenced in the records with a signature and date.
Key Actions / Arrangements
•
the school fund is audited by an appropriately independent person.•
the appointment of the independent auditor is documented in the Governing Body minutes.•
the appropriate Committee receives summaryaccounts with supporting transactional
information on a termly basis so they can query any transactions or voice any concerns they
have and such scrutiny and conclusions will be appropriately reported to the full Governing Body.
Key Actions / Arrangements
•
the School Voluntary Fund Policy is kept up to date and is line with Financial Regulations and the School Voluntary Fund Policy and Guidance issued by Internal Audit.•
they have a voluntary fund mission statement which documents the uses of the school fund. This will be published on the school website.Key Actions / Arrangements
•
Summary accounts with supporting transactionalinformation should be made readily available to any interested party (e.g.via the school website) to ensure there is full transparency over these funds. This will take the form of the information presented to the Finance Committee each term to minimise additional work.
Action Needed – check at your
school
•
Payments – valid, justified and necessary?•
Information for Governors – sufficient todischarge responsibilities
