Financial Management Standard in Schools
The purpose of the Standard
The purpose of FMSiS is to make the best use of resources in the education system and to achieve the best possible outcome for children.
The Standard and the supporting toolkit are designed to allow schools to take better informed decisions about the allocation of resources (that is time and money) at school level, supported by better information, planning and management.
What does the Standard include?
The Financial Management Standard itself is a simple statement of what a school that is managed well financially would look like. Good practice in a school, which meets the Standard, can be analysed under five headings as follows:
- Leadership and Governance - good financial management requires clear leadership and effective governance
- People Management - the staff who are responsible for financial management must be well trained and ably led
- Policy and Strategy - resources are deployed carefully to ensure the school meets its objectives, achieves Best Value, and undertakes activities that it can afford
- Partnerships and Resources - the school uses its resources efficiently and effectively, and seeks to access additional resources through partnerships and other arrangements
- Processes - financial management includes effective processes for budgeting, monitoring, control and reporting to ensure that financial plans are achieved, loss and waste are minimal, and that safeguards against fraudulent practice are robust.