Supervision of financial management

The Inspectorate’s supervision of financial management is an integral part of the supervision of educational quality. This means that we examine the financial management of every governing body in primary and secondary education and vocational education.

We assess continuity and legality annually (if the governing body receives a four yearly governing body inspection we inspect this as part of the whole inspection. In other years we assess them separately). Effectiveness is only assessed during four yearly inspections of governing bodies.

If our standards on legality or continuity are not met we impose a recovery order. This can be in the report of our four yearly governing body inspection or a separate financial supervision report. Both are published on our website.

Risk-based supervision of financial continuity

The Inspectorate annually (more often if necessary) assesses whether any financial risks are present at governing bodies or institutions that could jeopardize the continuity of education.

The governing bodies send their annual report to the Education Executive Agency (DUO) by 1 July. The Inspectorate carries out an automatic risk detection procedure on the institutions’ key financial indicators. If these indicators are below certain values, then there may be a financial risk. In this case, we will conduct further analysis.

If we detect a threat that may jeopardize the continuity of education within the next two years, we will place the institution under modified financial supervision. The governing body or institution must then prepare an improvement plan that will lead to the continued provision of good education and conscientious financial management within two years. Under certain circumstances, the Minister of Education may intervene by issuing a directive.

We publish a monthly list of boards that have been placed under modified financial supervision on our Dutch website. This list is only available in Dutch.

Supervision of financial legitimacy

The Inspectorate relies on the annual accountant’s audit of the governing body. To this end we have an educational protocol which specifies points of scrutiny for the accountant’s annual audits. If the accountant sees something that is not permitted, we inspect legitimicy. 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.

Supervision of effectiveness

We look into whether educational resources have been allocated efficiently and cost-consciously. We 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.