Introduction This guidance document is produced by the Education and Skills Funding Agency (ESFA). It provides clarification for each of the 25 questions on the schools financial value standard (SFVS) assessment form, the completion of which is a mandatory requirement for local authority (LA) maintained schools. The SFVS helps schools to manage their finances and to provide assurance to the LA that they have secure financial management in place. The guidance applies to: governing bodies of maintained schools management committees of pupil referral units LAs other interested parties Other schools are welcome to use any of the material associated with the standard, if they would find it useful. This guidance includes examples of good practice and details further support available to assist schools in addressing specific issues. We have produced additional resources to help schools complete the SFVS effectively. This includes guidance on reviewing and analysing the spread of skills and competencies amongst governors and staff with financial management responsibilities.
Section B: setting the budget Q10. Link with school budget and its plan Is there a clear and demonstrable link between the school’s budgeting and its plan for raising standards and attainment? Part 1: what does the question mean? What is a clear and demonstrable link between the school’s budget and its plan for raising standards and attainment? An effective budget must support the school’s priorities for raising standards and attainment. This can be done by ensuring that the school’s plan for improving education outcomes and the budget are closely aligned and that the budget reflects the school’s education priorities. See below for further information on how to achieve this. Why is it important that there is a clear and demonstrable link between the school’s budget and the plan for raising standards and attainment? It is important to ensure strategic spending and value for money. If a school has to fund activities designed to raise standards and attainment that have not been budgeted for, there is a risk that the school may get into deficit. The plan for raising education outcomes and the budget need to be integrated so that the school can weigh up whether it has enough funds to pay for the activities that it believes are necessary for the school to achieve its education objectives. Also, it will be easier to show value for money if objectives within the plan have been achieved within the budgetary constraints. Aligning the school’s budget and the plan to improve standards and attainment should: help the school understand the impact that its intended plans will have on the workload of its staff highlight the most effective way for the school to use their workforce to improve outcomes for their pupils help the school to assess whether the actions are viable and cost-effective Part 2: good practice How to link the school’s plan to raise standards and attainment to its financial plans and budget To ensure that the plan for improving education outcomes is viable and that its implementation is feasible, it should be supported by a financial plan that costs each
review your existing contract and lease arrangements to make sure they’re in line with DfE policy and guidance. Multi-Functional Devices (MFDs) are a key area where there could be scope for a better deal. Evidence and case studies show that there are many inappropriate leases in schools costing significantly more than they need to Part 3: what do you do if things are not right in your school? What to do if your school doesn’t have a procurement / purchasing protocol Use the suggestions set out above to improve knowledge and understanding of what procurement is and how it can help the school to deliver its objectives and make best use of the available budget. Then develop and use a protocol ensuring effective procurement controls. What to do if your school is not complying with procurement regulations or the school’s own established procedures Make sure all staff involved in procurement, including those who approve any spending decisions, understand the legal consequences of noncompliance. You may need legal or local authority advice if your school has signed contracts, which you think may be vulnerable because proper procurement procedures were not followed, or if you’re ‘trapped’ in a costly on-going contract. Further information Maintained schools should contact their local authority for further information and support. – provides information on local authority schemes for financing schools, which must include a provision requiring schools to abide by the local authority’s rules for purchasing, tendering and contracting. includes a wealth of information including best practice procurement, training, and model templates and data protection guidance. The DfE and ESFA provide , tools, training and guidance to help schools improve their financial management and efficiency, including on the benefits of workforce planning.