Financial management regulation
The Inspectorate also assesses the financial management of the governing body during the four-yearly inspection of governing bodies and schools. This assessment is part of the inspection of quality assurance and financial management. It focuses on the question: are the governing body’s quality assurance procedures in order and is its financial management sound?
Our assessment of the governing body’s financial management results in a judgement on continuity and legitimacy. These aspects may be judged as adequate or inadequate.
We assess the governing body’s current financial condition to arrive at a judgement on continuity. We also assess the governing body’s understanding of its current financial condition and of likely developments over the next three years, along with the policies it has developed for this period.
In assessing legitimacy, our aim is to ascertain whether the governing body acts transparently and with integrity, and whether it properly accounts for the way it secures and spends its funding from the central government. The institution’s own accountant is primarily responsible for auditing this. In most cases, the Inspectorate can rely on the accountant’s report.
At this point, we do not yet judge efficiency. We do, however, assess whether the institution is allocating its government funding to the benefit of its own ambitions regarding effective education and the development of all of its pupils. The ambitions must be specified in the school plan. We discuss this with the governing body and we report on our findings.