Financial Management Standard in Schools

Contact us

Frequently Asked Questions

Q:	When will the FMSiS be next updated?
A:	Annually, next planned May 2008.

Q:	Will Third Party Assessors receive training from the DfES?
A:	Yes, this should be available from August 2006.

Q:	Can authorities see the reports of third party assessors and do they have a right to reject the decision reached by Third Party Assessors?
A:	LAs should expect to see a summary report of the assessment. LAs should also ensure that even if 3rd parties are being engaged to perform the assessment that they pass on any information held centrally to the assessor, this would include the most recent audit report any any concerns about the schools financial management. LAs will not have the right to reject a decision reached by 3rd party assessors.

Q:

Can authorities see the reports of third party assessors and do they have a right to reject the decision reached by Third Party Assessors?

A:

LAs should expect to see a summary report of the assessment. LAs should also ensure that even if 3rd parties are being engaged to perform the assessment that they pass on any information held centrally to the assessor, this would include the most recent audit report any any concerns about the schools financial management. LAs will not have the right to reject a decision reached by 3rd party assessors.

Q:	What happens with a school where the delegation has been withdrawn. Who is assessed?
A:	If delegation has been withdrawn the school cannot possibly meet the FMSiS. No assessment would be necessary to reach this conclusion.

Q:	What happens with Academies or are they excluded from the FMSiS?
A:	Academies are excluded from the requirement to meet the standard by March 2007. Academies are on a different system of financial accountability to maintained schools and as such are subject to their own regular external audit. Of course, we would encourage all schools to work towards the relevant sections of the standard for their own self-management and reassurance.

Q:	Will external assessors be assessed in the future?
A:	There is no plan at this time to formally assess those that are performing the external assessment, although we will be evaluating the process next year and collecting examples of evidence provided by schools as a check for consistency and to allow schools to see the types of evidence they might provide.

Q:	Can the FMSiS Certificate be withdrawn, e.g. if a school has delegation withdrawn?
A:	We would leave this as a decision for the CFO. The assessment is a snap-shot and, of course, circumstances can change quite quickly in schools - with new leadership etc. But the assessment isn''t the end of it. LAs should be encouraging schools to continue with self-evaluation between the three year cycle of external assessment. This way we shouldn''t ever reach the situation where delegation needs to be withdrawn. All warning signs will have been picked up and addressed long before this is necessary. The standard is about being more honest and open about your situation with regard to financial management and dealing with it as opposed to trying to cover up a bad situation.

Q:

Can the FMSiS Certificate be withdrawn, e.g. if a school has delegation withdrawn?

A:

We would leave this as a decision for the CFO. The assessment is a snap-shot and, of course, circumstances can change quite quickly in schools - with new leadership etc. But the assessment isn''t the end of it. LAs should be encouraging schools to continue with self-evaluation between the three year cycle of external assessment. This way we shouldn''t ever reach the situation where delegation needs to be withdrawn. All warning signs will have been picked up and addressed long before this is necessary. The standard is about being more honest and open about your situation with regard to financial management and dealing with it as opposed to trying to cover up a bad situation.

Q:	When should the Statement of Internal Control - SIC be signed? **please note that this used to be called the Controls Assurance Statement - CAS
A:	The SIC can be signed at anytime throughout the year and should relate to the financial processes for the previous 12 calendar months from when the statement is signed.

Q:	Who should sign the Statement of Internal Control - SIC? **please note that this used to be called the Controls Assurance Statement - CAS
A:	The governors should have agreed on the Pre-Certification checklist before giving approval for the SIC to be signed by the Head Teacher, the Chair of the Governing Body, and the Chair of the Finance Committee of the Governing Body. If any governor has a concern about any of the Pre-Certification checklist questions, they should disclose these in Paragraph 4 before giving approval for the statement of internal control to be signed.

Q:

Who should sign the Statement of Internal Control - SIC? **please note that this used to be called the Controls Assurance Statement - CAS

A:

The governors should have agreed on the Pre-Certification checklist before giving approval for the SIC to be signed by the Head Teacher, the Chair of the Governing Body, and the Chair of the Finance Committee of the Governing Body. If any governor has a concern about any of the Pre-Certification checklist questions, they should disclose these in Paragraph 4 before giving approval for the statement of internal control to be signed.

Q:	Does each member of the governing body have to demonstrate the competencies in R20: Financial Management Competencies Matrix for School Governors?
A:	No, the competencies matrix is designed to assess whether the competencies are present across the governing body as a whole, not as individuals. It could be that a small number of governors demonstrate all the competencies or that they are shared across several or all members. The important factor is to demonstrate that the governing body as a whole has the necessary financial competence to fulfil their responsibilities or to take action if gaps are discovered.

Q:

Does each member of the governing body have to demonstrate the competencies in R20: Financial Management Competencies Matrix for School Governors?

A:

No, the competencies matrix is designed to assess whether the competencies are present across the governing body as a whole, not as individuals. It could be that a small number of governors demonstrate all the competencies or that they are shared across several or all members. The important factor is to demonstrate that the governing body as a whole has the necessary financial competence to fulfil their responsibilities or to take action if gaps are discovered.

Q:	By which date are secondary schools expected to meet the Standard?
A:	All secondary schools are expected to meet the Financial Management Standard in Schools (FMSiS) by 31 March 2007. Local Authorities will be required to submit to the DfES the number of schools achieving the Standard as part of the Section 52 outturn statement. Although this report is submitted in August it should reflect the position of schools as at 31 March 2007.