The regulations give guidelines for schools to manage their finances.
Auditors expect schools to follow the guidance in the school financial procedure manual. Not following it may lead to unfavourable comments in audit reports.
Governing bodies must officially adopt both the manual and the regulations that apply to their school. This should be recorded in the meeting minutes.
Key documents – school financial procedure manual
Section 1: governance and record keeping
- Accountabilities, financial duties and responsibilities
- Audit arrangements
- School bank account administration
Section 2: financial management
- FM1 Budget planning and forecast
- FM2 Purchasing and procurement
- FM3 Payroll management
- FM4 Petty cash management
- FM5 Risk management
- FM6 Schools in financial difficulty
- FM7 business plan template
Section 3: reporting and taxation
Scheme for financing schools
See GOV.UK guidance for local authorities on schemes for financing schools.