Management Information Sheet

The SFVS is designed to assist schools and their Governing Bodies to ensure there are secure financial management systems in place. In June and July 2015 Norfolk Audit Services visited eight NCC maintained schools, as part of a thematic audit to review how they completed their SFVS return and if they achieved compliance with the standard. The visits highlighted that all the schools could not provide sufficient evidence to support their responses to all SFVS questions in the return. Lack of supporting evidence results in limited assurance that the judgements made by schools and governors in terms of their financial management systems may not be reliable, thus increasing the risk of fraud and error.

Our audit findings

Our audit work within the schools visited focused on the processes and supporting documentation in place to support the judgements made by schools and governors when completing their SFVS return. The following is an overall summary of the areas within the SFVS where questions were consistently insufficiently answered and evidenced:

• Question 3: the Governing Body has not reviewed and approved their Schools Finance Policy on an annual basis. Evidence of the approval should be minuted and Governors and staff should be made aware of and follow, the agreed financial processes in place at the school.
• Question 12: Schools are not adequately benchmarking their income and expenditure annually against similar schools, highlighting any areas for improvement and presenting the information to the Governing Body. Please see the benchmarking data provided on the Schools Finance Team website.
• Question 19: There are often not adequate arrangements to guard against fraud and theft, schools should maintain written fraud logs so that if an instance should arise with staff, contractors or suppliers there is an agreed place to record the details.
• Question 22: Schools could not provide evidence in Governing Body minutes that audited unofficial fund accounts are being discussed and approved by their Governing Body, ensuring the funds are accounted for in a proper manner and in a form which can be used to satisfy public accountability.
• Question 23: schools do not have a completed and up to date business continuity plan/disaster recovery plan in place and adopted by the Governing Body. Please use the NCC schools business continuity plan template found on the Norfolk Schools website or contact the Resilience Team on 01603 222016.

Both Norfolk Audit Services and the Schools Finance Team recommend that the above issues are specifically considered by each school's leadership team and Governing body when completing the next SFVS return to ensure that these areas are sufficiently answered and evidenced within your school. Any issues and proposed actions to address any improvements required should be discussed by the relevant committee of the Governing Body for approval, monitoring and evaluation. Question 18 of the SFVS also makes reference to schools taking into account audit findings raised from these audits.

In general when completing your schools SFVS return please also consider the following points:

• Evidence to support the answers you are giving is easily accessible and readily available if requested.
• Refer to the supporting guidance notes provided by the DfE when answering the questions. The notes provide clarification of the questions, examples of good practice and can be accessed through the DfE website. Each question requires a Yes, In Part, or No answer.
• If you complete an answer with In Part or No a remedial action point should then be raised in section E of the return.
• All remedial action points raised should be clearly delegated to a member of staff or Governor to complete and a time period by which it will be fully completed by.
• The Governing Body should review all action points raised periodically confirming they are adequately completed before the next return is submitted.

For any further guidance or support when completing your SFVS return please either contact your Finance Support Officer or visit the DfE website.

Please remember to submit your completed 2015-16 SFVS return to Children's Services Finance by 28 February 2016.