Why is this required?
It's a legal requirement
Schools operating a separate school fund must have it independently reviewed on an annual basis and report the results to the governing body. Each Local Authority may have its own specific rules on how this should be done.
What counts as independent?
The examiner must have no close relationship with the school or its trustees, must not be an employee or day-to-day administrator, and must have sufficient accounting skills for the level of review required. SMS meets all these requirements.
Surrey schools — specific requirement
Surrey LA requires a qualified accountant to carry out the review where school fund turnover exceeds £5,000. SMS can provide this where required.
How the review works
01
Initial questionnaire
SMS sends a questionnaire to understand the purpose and aim of your school fund and the procedures in place.
02
Portal access
SMS gives your school access to the portal to upload the required documents for review.
03
Initial review
An initial review of the submitted accounts is undertaken.
04
Transaction testing
A random sample of transactions is selected and supporting documentation requested.
05
Report issued
A full report is produced detailing findings and recommendations — ready to present to your governing body.
What the report confirms
Assuming no major issues, the report will state: "I can confirm that the School Fund accounts represent a true account of the income and expenditure for the financial year."
What you'll need ready
- School fund bank statements
- Income and expenditure records
- Supporting transaction documentation
- Details of any restricted funds
Related Tools & Services
Make your review easier with the SMS School Fund Spreadsheet
SMS has developed a spreadsheet tool that records income and expenditure against fund headings and auto-populates an Income and Expenditure statement — making it much easier to prepare for your annual review. Free for Core SLA clients. Available at £45/year for other schools.
More SMS tools
Schools Financial Value Standard (SFVS)
Independent check for governors and senior leaders
- All SMS SLA services comply with the SFVS as standard
- Independent check to confirm procedures and policies are in place
- Report provided with any remedial action required
- Gives governors assurance that the standard is met
Financial Management & Governance Self-Assessment (FMGS)
Required within 4 months of a new academy opening
- All SMS SLA services comply with FMGS as standard
- Available to all schools regardless of SMS service level
- We ensure policies and procedures meet EFA requirements
- Independent check of school's own work available
Related Services
School Fund Spreadsheet
Simplify your school fund record keeping and make the annual review much easier.
Learn more
Core Finance SLA
SLA clients get the school fund spreadsheet free and discounted rates on additional services.
Learn more
Additional Consultancy
Need help preparing your accounts ahead of the review? SMS can assist with year end preparation.
Learn moreNeed your school fund independently reviewed?
Get in touch for a quote — we'll confirm the right level of review for your school's turnover.