Section 1: Introduction and overview print

Mon 19. Jun 17 07:52

Managing School Finances

Module study guide

Read the study guide below before studying the units in this module.

The study guide introduces the purpose of school financial management. It also sets out the learning objectives for the module.

In this module, you will cover all the key aspects of managing school finances, including the principles of school finance, financial planning and budgeting, financial monitoring, reporting and evaluation, cash management and procurement. 


Financial decision-making was devolved to schools by Local Management of Schools (LMS), introduced in the late 1980s, and Fair Funding, introduced in April 1999.

In 2006, the School Funding Settlement for 2006–08 provided schools with more stable funding and greater freedom to innovate through the introduction of multi-year budgets. More recent government education policy has been guided by the three principles of freedom, responsibility and fairness.

This has included improving choice for parents and raising standards for all young people through encouraging a diverse range of schools, including academies, trust schools, free schools, federations, voluntary aided and maintained schools. Although many of these schools have greater freedom, they are all state funded.


State funded schools are required to apply sound financial principles to ensure that the public money is managed honestly, reliably and efficiently, with regard to obtaining value for money. The role of the school business manager has evolved since LMS and the need for someone with sound financial management skills is even greater.


State funded schools are required to apply sound financial principles to ensure that the public money is managed honestly, reliably and efficiently, with regard to obtaining value for money. The role of the school business manager has evolved since LMS and the need for someone with sound financial management skills is even greater.

School business managers make a significant contribution to the effective financial management of a school, saving on average 0–33% of a headteacher's time and covering their own salary in savings.

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Underpinning all of these modules are the financial regulations and financial procedures that all schools should have in place. This includes the Schools Financial Value Standard (SFVS).

Sound financial management practices, functions and objectives must be reflected in your school's financial regulations and financial procedures manual.

As a school business manager, you will be the gatekeeper of these practices, ensuring:

  • compliance with legal, regulatory and ethical requirements
  • management of financial risk
  • achievement of value for money and best value
  • support for your school’s educational priorities and goals through the budget and financial information
  • consideration of innovative approaches to income raising and resource management
 
Please note that while the module follows general accounting principles, it is not a course in accounting. It provides an overview of the necessary requirements for the operation of school accounting systems.

During the module, you will need to refer to your financial regulations and procedures manuals, your latest audit report and other documents that highlight best practice.

Learning objectives

At the end of this module, you will be able to:

Further Resourses




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