18
sector PFOs
DIARY
From SBM to finance officer: the fundamental shift
AS THE NUMBER OF SCHOOLS CONVERTING TO ACADEMY CONTINUES TO RISE, THE WORLD OF EDUCATION BRINGS SIGNIFICANT CHALLENGES FOR SBMS-TURNED-PRINCIPAL FINANCE OFFICERS. CONSULTANT MARIA MORRIS IS ONE OF THEM. SHE TELLS HER STORY
regulations and the law. The role of such individuals is voluntary and, while there have been isolated stories in the press regarding poor financial conduct of ATs, they are usually able and dedicated individuals who wish to make a positive contribution. . The accounting officer (AO), usually the principal or headteacher, is personally
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responsible to Parliament for propriety and regularity of the public finances and assuring the AT is compliant with all aspects of the education regulatory framework, company and charitable law. S/he cannot delegate this responsibility. I would contend that such an individual, although highly experienced in his/her field and primarily concerned with educational standards and attainment of young people is, justifiably, unlikely to hold the credentials necessary to give such assurances to Parliament. While avoidance of waste and extravagance, ensuring value for money and efficient
and effective use of resources in the AO’s charge seems a reasonable expectation of him/her, and is normally routinely exercised, accountability to Parliament for high standards of probity in the management of public funds brings new levels of accountability, which I believe are not always fully appreciated. The role of a principal finance officer (PFO) in an academy is to provide technical
advice to the AT and lead in financial matters. In the private sector a finance director, often a key member of the board of directors, plays a crucial, complex role ensuring that financial strategies support corporate aims. In academies there is generally no such role with comparable status. Not only has full responsibility been passed to a professional, the AO, whose
expertise lies elsewhere, but passed to an individual who cannot overrule a governors’/ trustees’ decision regarding the use of public funding. The governors/trustees are appointed to extend the skills pool in such areas and to offer their expertise. They, also being the employer of the AO and PFO, may proceed with buying or investment decisions, against advice from the AO or PFO, yet the AO (and perhaps the PFO by definition) is responsible. Surely, it is more logical for the body responsible for the decision to be held accountable? I note the academies financial handbook refers to procedures for whistleblowing,
however what mechanisms exist to offer support and protection to AOs and PFOs in this vulnerable position are unclear. I recognise that the academy framework is relatively recent and continually developing, however I believe that greater regulation would sense with a framework of confidential support and protections for AOs and PFOs who are concerned at potential consequences of unwelcome challenge, and with the accountabilities to Parliament resting firmly with the body responsible for the outcome.
In the private sector a finance director is often a key member of the board. In academies there is generally no such role
september 2013 \
www.edexec.co.uk
cademy status brings greater freedoms, which necessitate sharper accountability due to responsibilities for use of taxpayers’ money. In managing public funds an academy trust (AT) must ensure regularity, propriety, value for money, and adherence to the law at all times. An AT appoints governors and trustees to oversee proper governance and conduct thorough reference to relevant guidance,
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