In 2002 the DCSF undertook a pilot study of the audit and accountability framework (IPF). As a result of this study the DCSF concluded that financial management in schools could benefit from support for self improvement and capacity building. The DCSF formed the view that in order to do this schools needed a financial management standard, a self evaluation and external evaluation tool, a guide on existing sources of what constitutes good financial management and a guide to good practice on those areas not covered by existing guidance. The Financial Management Standard itself is a simple statement of what a school that is managed well financially would look like.
The Standard covers strategic audit and other activities that schools should already be completing. This is assessed under 5 headings; Leadership and Governance, People Management, Policy and Strategy, Partnership and Resources and Processes.
