Finance

Effectively managing, recording and reporting the school's or trust’s finances, including budget planning, monitoring, control and adherence to regulatory requirements.

Notes for use:
This is an interactive version of the Professional Standards - for a PDF copy please download this from the Professional Standards page. Tasks and responsibilities associated with each function are set out below by practitioner level. To identify the associated knowledge and skills click the downward arrow symbol next to the descriptor.

Function: Financial administration and regulatory compliance

Foundation Practitioner

[2.1] Understands and complies with school or trust procedures and financial regulations in processing and recording financial transactions and producing financial information. Encourages compliance by others.
[2.5] Is aware of and complies with financial control procedures such as cash-handling protocols, segregation of duties and other payment procedures around financial transactions.

[2.13] Understands the importance of accurate financial information in informing decisions and the source of that information.

Associate Practitioner

[2.2] Understands financial accounts, financial statements and the principles of double-entry bookkeeping.
Understands and uses appropriate accounting methods to report financial information. Understands how financial information can be interpreted and used.
[2.6] Has a good understanding of financial control procedures. Can advise other staff on these requirements.

[2.14] Understands that the decision- making process relies on accurate financial information. Is competent in the use of recognised software and can confidently use financial systems to produce high-quality financial information.

Lead Practitioner

[2.3] Can prepare and explain key financial documents, including balance sheets and statement of financial activity.
[2.7] Can improve financial control procedures and, through regular review, ensure they are fit for purpose.

[2.15] Can use financial data to support strategic plans and investment decisions.

Strategic Practitioner

Function: Financial reporting and monitoring

References

Department for Education (DfE) (2022), Academy Trust Handbook. [Online] Available from: https://www.gov.uk/guidance/academy-trust-handbook

Acknowledgements

Ash House Consultancy Ltd Bishop Fleming LLP
Chartered Institute of Public Finance and Accountancy (CIPFA)
Department for Education (DfE) Improvement & Insight Division and School Funding Teams
IMP Software

[2.4] Can determine an appropriate approach to accounting for the school or trust in line with regulatory requirements, including consideration for trading subsidiaries and ancillary income.
[2.8] Can determine appropriate approaches to internal control procedures across all areas, which includes identifying relevant internal and external audit approaches as well as general fiscal protocols.

[2.5] Is aware of and complies with financial control procedures such as cash-handling protocols, segregation of duties and other payment procedures around financial transactions.

[2.6] Has a good understanding of financial control procedures. Can advise other staff on these requirements.

[2.7] Can improve financial control procedures and, through regular review, ensure they are fit for purpose.

[2.8] Can determine appropriate approaches to internal control procedures across all areas, which includes identifying relevant internal and external audit approaches as well as general fiscal protocols.

[2.16] Can critically evaluate financial information and use professional judgement to inform proposals and recommendations.

[2.5] Is aware of and complies with financial control procedures such as cash-handling protocols, segregation of duties and other payment procedures around financial transactions.

[2.6] Has a good understanding of financial control procedures. Can advise other staff on these requirements.

[2.7] Can improve financial control procedures and, through regular review, ensure they are fit for purpose.

[2.8] Can determine appropriate approaches to internal control procedures across all areas, which includes identifying relevant internal and external audit approaches as well as general fiscal protocols.

[2.17] Can accurately process data to support the accounting process and production of financial reports.

[2.18] Understands the importance of the timely submission of statutory reports.

[2.19] Is conversant with the financial regulatory frameworks and subsequent submission deadlines.

[2.7] Can improve financial control procedures and, through regular review, ensure they are fit for purpose.

[2.20] Has a deep understanding of financial assurance and regulatory frameworks.

[2.5] Is aware of and complies with financial control procedures such as cash-handling protocols, segregation of duties and other payment procedures around financial transactions.

[2.6] Has a good understanding of financial control procedures. Can advise other staff on these requirements.

[2.8] Can determine appropriate approaches to internal control procedures across all areas, which includes identifying relevant internal and external audit approaches as well as general fiscal protocols.

[2.9] Is aware of VAT regime and has an appreciation for tax and VAT liabilities.

[2.10] Has a good understanding of VAT and the need to adhere to accounting regulations and internal controls when processing transactions in respect of any tax and VAT considerations.

[2.11] Has a very good understanding of VAT and is fully aware of the areas of the school's or trust’s financial undertakings that are subject to tax and/or VAT.

[2.12] Has an excellent understanding of VAT and can ensure compliance with tax and VAT regimes as applicable to the school or trust.

[2.7] Can improve financial control procedures and, through regular review, ensure they are fit for purpose.

[2.5] Is aware of and complies with financial control procedures such as cash-handling protocols, segregation of duties and other payment procedures around financial transactions.

[2.6] Has a good understanding of financial control procedures. Can advise other staff on these requirements.

[2.8] Can determine appropriate approaches to internal control procedures across all areas, which includes identifying relevant internal and external audit approaches as well as general fiscal protocols.

[2.1] Understands and complies with school or trust procedures and financial regulations in processing and recording financial transactions and producing financial information. Encourages compliance by others.
[2.13] Understands the importance of accurate financial information in informing decisions and the source of that information.

[2.2] Understands financial accounts, financial statements and the principles of double-entry bookkeeping.
Understands and uses appropriate accounting methods to report financial information. Understands how financial information can be interpreted and used.
[2.14] Understands that the decision- making process relies on accurate financial information. Is competent in the use of recognised software and can confidently use financial systems to produce high-quality financial information.

[2.3] Can prepare and explain key financial documents, including balance sheets and statement of financial activity.
[2.15] Can use financial data to support strategic plans and investment decisions.

[2.4] Can determine an appropriate approach to accounting for the school or trust in line with regulatory requirements, including consideration for trading subsidiaries and ancillary income.
[2.16] Can critically evaluate financial information and use professional judgement to inform proposals and recommendations.

[2.1] Understands and complies with school or trust procedures and financial regulations in processing and recording financial transactions and producing financial information. Encourages compliance by others.
[2.13] Understands the importance of accurate financial information in informing decisions and the source of that information.

[2.2] Understands financial accounts, financial statements and the principles of double-entry bookkeeping.
Understands and uses appropriate accounting methods to report financial information. Understands how financial information can be interpreted and used.
[2.14] Understands that the decision- making process relies on accurate financial information. Is competent in the use of recognised software and can confidently use financial systems to produce high-quality financial information.

[2.3] Can prepare and explain key financial documents, including balance sheets and statement of financial activity.
[2.15] Can use financial data to support strategic plans and investment decisions.

[2.4] Can determine an appropriate approach to accounting for the school or trust in line with regulatory requirements, including consideration for trading subsidiaries and ancillary income.
[2.16] Can critically evaluate financial information and use professional judgement to inform proposals and recommendations.

[2.13] Understands the importance of accurate financial information in informing decisions and the source of that information.
[2.17] Can accurately process data to support the accounting process and production of financial reports.

[2.14] Understands that the decision- making process relies on accurate financial information. Is competent in the use of recognised software and can confidently use financial systems to produce high-quality financial information.
[2.18] Understands the importance of the timely submission of statutory reports.

[2.15] Can use financial data to support strategic plans and investment decisions.
[2.19] Is conversant with the financial regulatory frameworks and subsequent submission deadlines.

[2.16] Can critically evaluate financial information and use professional judgement to inform proposals and recommendations.
[2.20] Has a deep understanding of financial assurance and regulatory frameworks.

[2.13] Understands the importance of accurate financial information in informing decisions and the source of that information.
[2.17] Can accurately process data to support the accounting process and production of financial reports.

[2.14] Understands that the decision- making process relies on accurate financial information. Is competent in the use of recognised software and can confidently use financial systems to produce high-quality financial information.
[2.18] Understands the importance of the timely submission of statutory reports.

[2.15] Can use financial data to support strategic plans and investment decisions.
[2.19] Is conversant with the financial regulatory frameworks and subsequent submission deadlines.

[2.16] Can critically evaluate financial information and use professional judgement to inform proposals and recommendations.
[2.20] Has a deep understanding of financial assurance and regulatory frameworks.

[2.21] Understands the importance of helping to minimise financial risk, including fraud.

[2.22] Has an awareness of key financial risks, including fraud.

[2.23] Understands key areas of operational and system vulnerability in relation to financial risk and fraud and can propose appropriate mitigations.

[2.24] Understands the need for proportionate measures and systems to limit and, where possible, eliminate financial risk and fraud.

[2.25] Is aware of business continuity arrangements.

[2.26] Understands their role in ensuring business continuity.

[2.27] Understands the role of key personnel in the implementation of business continuity arrangements.

[2.28] Understands the key components of a robust business continuity plan.

Function: Resource management

[2.29] Understands the budget planning and review cycle and their role in contributing to the collation of data supporting the overall process.
[2.33] Understands the steps involved in budget setting.
[2.37] Has a basic understanding of how schools or trusts are financed.
[2.41] Has an awareness of Department for Education (DfE) and sector- endorsed tools and principles (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP).
[2.45] Understands the principles of integrated curriculum financial planning (ICFP) and can apply these when considering curriculum needs in financial planning.

[2.30] Understands how to facilitate the budget planning process by providing key financial and census data to support assumptions.
[2.34] Can contribute to the budget planning process by providing data to support assumptions.
[2.38] Has an understanding of education funding streams.
[2.42] Has experience of using DfE and sector-endorsed tools and principles (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP).
[2.46] Can apply ICFP principles by considering curriculum needs in financial planning and model alternative approaches.

[2.31] Understands how to develop and maintain budget planning processes that are able to withstand scrutiny as part of the overall governance and approval process.
[2.35] Understands how to develop robust evidence-based income and expenditure assumptions.
[2.39] Understands national and local formulae and how these affect the school’s or trust’s allocation.
[2.43] Can lead on the implementation of DfE and sector-endorsed tools (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP).
[2.47] Can analyse data to identify trends.

[2.32] Can make effective use of historic and current data alongside the school's or trust’s curriculum ambition and improvement strategy to develop sustainable budget plans, including longer-term forecasts.
[2.36] Can draw on intelligence from a variety of sources to develop short-, medium- and longer-term assumptions.
[2.40] Has a deep technical understanding of national and local funding formulae and can assess and challenge allocations. Contributes to or participates in Schools Forum discussions.
[2.44] Can develop a culture of benchmarking using DfE and sector-endorsed tools (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP). Promotes the use of data to support strategic decision-making across the school or trust.
[2.48] Can evaluate data to inform recommendations.

[2.33] Understands the steps involved in budget setting.
[2.37] Has a basic understanding of how schools or trusts are financed.

[2.34] Can contribute to the budget planning process by providing data to support assumptions.
[2.38] Has an understanding of education funding streams.

[2.35] Understands how to develop robust evidence-based income and expenditure assumptions.
[2.39] Understands national and local formulae and how these affect the school’s or trust’s allocation.

[2.36] Can draw on intelligence from a variety of sources to develop short-, medium- and longer-term assumptions.
[2.40] Has a deep technical understanding of national and local funding formulae and can assess and challenge allocations. Contributes to or participates in Schools Forum discussions.

[2.33] Understands the steps involved in budget setting.
[2.37] Has a basic understanding of how schools or trusts are financed.

[2.34] Can contribute to the budget planning process by providing data to support assumptions.
[2.38] Has an understanding of education funding streams.

[2.35] Understands how to develop robust evidence-based income and expenditure assumptions.
[2.39] Understands national and local formulae and how these affect the school’s or trust’s allocation.

[2.36] Can draw on intelligence from a variety of sources to develop short-, medium- and longer-term assumptions.
[2.40] Has a deep technical understanding of national and local funding formulae and can assess and challenge allocations. Contributes to or participates in Schools Forum discussions.

[2.41] Has an awareness of Department for Education (DfE) and sector- endorsed tools and principles (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP).
[2.45] Understands the principles of integrated curriculum financial planning (ICFP) and can apply these when considering curriculum needs in financial planning.

[2.42] Has experience of using DfE and sector-endorsed tools and principles (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP).
[2.46] Can apply ICFP principles by considering curriculum needs in financial planning and model alternative approaches.

[2.43] Can lead on the implementation of DfE and sector-endorsed tools (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP).
[2.47] Can analyse data to identify trends.

[2.44] Can develop a culture of benchmarking using DfE and sector-endorsed tools (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP). Promotes the use of data to support strategic decision-making across the school or trust.
[2.48] Can evaluate data to inform recommendations.

[2.41] Has an awareness of Department for Education (DfE) and sector- endorsed tools and principles (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP).
[2.45] Understands the principles of integrated curriculum financial planning (ICFP) and can apply these when considering curriculum needs in financial planning.

[2.42] Has experience of using DfE and sector-endorsed tools and principles (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP).
[2.46] Can apply ICFP principles by considering curriculum needs in financial planning and model alternative approaches.

[2.43] Can lead on the implementation of DfE and sector-endorsed tools (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP).
[2.47] Can analyse data to identify trends.

[2.44] Can develop a culture of benchmarking using DfE and sector-endorsed tools (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP). Promotes the use of data to support strategic decision-making across the school or trust.
[2.48] Can evaluate data to inform recommendations.

Function: Continuous improvement and the use of data

[2.41] Has an awareness of Department for Education (DfE) and sector- endorsed tools and principles (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP).
[2.45] Understands the principles of integrated curriculum financial planning (ICFP) and can apply these when considering curriculum needs in financial planning.

[2.42] Has experience of using DfE and sector-endorsed tools and principles (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP).
[2.46] Can apply ICFP principles by considering curriculum needs in financial planning and model alternative approaches.

[2.43] Can lead on the implementation of DfE and sector-endorsed tools (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP).
[2.47] Can analyse data to identify trends.

[2.44] Can develop a culture of benchmarking using DfE and sector-endorsed tools (e.g. VmFI, Benchmarking, SRMSAC, SFVS and ICFP). Promotes the use of data to support strategic decision-making across the school or trust.
[2.48] Can evaluate data to inform recommendations.

[2.49] Understands their own capability and limitations in relation to finance- related activities.

[2.50] Knows how to monitor performance and support colleagues where there are identified skills gaps.

[2.51] Can assess levels of financial competency across the team and deploy staff accordingly.

[2.52] Understands the characteristics of a high-performing finance operation, consistently striving for continuous improvement.

*Integrated curriculum financial planning (ICFP) is a concept that has joined-up leadership at its heart. The underlying principles are designed to ensure curriculum ambitions can be delivered in an affordable and sustainable way, using nationally recognised metrics to help schools or trusts benchmark their approach.

Function: Non-grant income and trading activity

[2.53] Understands the administrative processes related to non-grant income.

[2.54] Understands the administrative and regulatory requirements related to the treatment of non-grant income. Understands that there are a range of non-grant funding sources available to school or trusts.

[2.55] Understands the regulatory and reporting requirements for non-grant income. Understands the process when applying for non-grant funding.

[2.56] Understands how to develop compelling bids to secure non- grant funding. Understands the key considerations when developing arrangements for any trading activity.

[2.53] Understands the administrative processes related to non-grant income.

[2.54] Understands the administrative and regulatory requirements related to the treatment of non-grant income. Understands that there are a range of non-grant funding sources available to school or trusts.

[2.55] Understands the regulatory and reporting requirements for non-grant income. Understands the process when applying for non-grant funding.

[2.56] Understands how to develop compelling bids to secure non- grant funding. Understands the key considerations when developing arrangements for any trading activity.

ISBL Professional Standards