School Governors Forum Audit Briefing

Transcription

1 School Governors Forum Audit Briefing January 2016 Presenters : Peter Jackson, Audit Manager Nicola Burton, Senior Auditor

2 Introduction Welcome Housekeeping Registration

3 Briefing Content 1. School Financial Value Standard (SFVS) Update SFVS background information Previous years submissions SFVS issues Moving forward Documentation Additional SFVS Questions

4 Briefing Content 2. School Voluntary Fund Update Governor Responsibilities Issues Actions needed Key Actions / Arrangements 3. Questions?

5 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 /13 was the first year Doncaster schools completed the new standard Submissions administered by Local Authority (Internal Audit) on behalf of DfE

6 SFVS Background Information Previously 23 questions, 2015/16 includes 2 additional questions regarding pay decisions Annual deadline date of 31 st 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 plan

7 Previous 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.

8 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 delays

9 SFVS Issues Governors unable to evidence that they are effectively carrying out their financial management role Not LA responsibility to ensure the forms are completed

10 Moving forward 43 working days left until deadline, 3 forms received to date but 2 returned as used superceded forms Deadline date falls during Easter holiday!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 to deadline to discuss (can be Finance Committee (if previously delegated) but reported to full GB) Action plan items monitored at subsequent meetings

11 Moving 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 programmecheck how accurate the SFVS return is May also select a sample to visit and check robustness of financial management process and governance SFVS is a continuous cycle

12 A continuous cycle Undertake Assessment, approve, submit & monitor Review, update, approve, submit & monitor Review, update, approve, submit & monitor

13 Documentation Access to the Doncaster SFVS is via Doncaster Council s Internet Site Includes 2016 SFVS return and instructions Evidence list with support notes SFVS additional resources includes skills matrices SFVS example timetable

14 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 Committee minutes regarding Headteacher pay decisions.

15 What support is available Internal Audit Team / address Schools.InternalAudit@doncaster.gov.uk Website

16 ANY QUESTIONS???????

17 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 funds

18 School Voluntary Fund Update Parents/guardians support school fundraising activities 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 responsibilities

19 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 these procedures and is operating in accordance with them

20 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 used

21 Governor 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 by them that bank statements and bank reconciliations for all bank accounts are examined monthly and signed 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

22 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 an independent person. that policies are established regarding the levels of income held, the petty cash float and the maximum value for a petty cash purchase

23 Governor Responsibilities that a Summary of Accounts Statement and other end of accounting year statements are correctly prepared covering all School Voluntary Fund transactions that all accounting records, documentation and year-end statements are available for audit promptly that when required a Headteacher/Treasurer Handover Form is properly completed

24 Issues 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 Flowers

25 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 Financial Regulations or School Fund Policy and Guidance issued No Mission Statement for the use of the voluntary funds Records held were insufficient

26 Issues No cross referencing in the record to supporting documentation or receipts No independent spot checks carried out on records Information regarding voluntary funds only presented 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 minutes Auditor not a sufficiently independent person

27 Key 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.

28 Key Actions / Arrangements full accurate financial records are maintained to ensure a full audit trail. This will include cross referencing receipts and invoices, regular reconciliations 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.

29 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 summary accounts 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.

30 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.

31 Key Actions / Arrangements Summary accounts with supporting transactional information 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.

32 Action Needed check at your school Payments valid, justified and necessary? Information for Governors sufficient to discharge responsibilities Information for parents they are major stakeholders what information is available