What Is a School Fund Audit?

Many maintained schools operate a separate account known as a School Fund. While not all schools have one, these accounts are often used to manage income from fundraising events, charitable donations, and other non-budgetary sources. The money collected can be used to enhance the school environment, fund enrichment activities, or contribute to resources not covered by the main school budget. But how are these funds managed and monitored? That’s where a School Fund Audit comes in.

A School Fund Audit can be purchased as a one-off or as part of an SLA with our Finance Consultancy.

What Is a School Fund Audit?

A School Fund Audit is a formal review of the income and expenditure recorded in a school’s private (but still publicly accountable) School Fund account. Even though this fund is separate from the school’s main budget, it is often still considered public money—especially when used to benefit pupils—and may be subject to oversight by the Local Authority (LA) or other regulatory bodies. The purpose of the audit is to ensure that:

• All income and expenditure is properly recorded and reconciled to prime financial documentation (usually bank statements)
• Funds are being used in accordance with local policies, financial guidelines, and the purpose for which the money was raised
• Records are clear, accurate, and well-maintained

Is It a Statutory Requirement?

While not a statutory requirement for all schools, some Local Authorities mandate that maintained schools submit an annual audit of their School Fund. Additionally, if the value of the School Fund exceeds a certain threshold and the school registers it as a charity with the Charity Commission, there may be a legal requirement for an annual audit or independent examination. Schools should consult the Charity Commission website to determine specific thresholds and obligations.

When Should the Audit Be Completed?

There is no fixed national deadline, the timeframe of a School Fund audit is specific to each Local Authority. Regardless of external requirements, an annual audit is strongly recommended as good practice for financial transparency.

What Does an SBS School Fund Audit Include?

When SBS carries out a School Fund audit for a maintained school, it typically involves:

• Verifying bank statements against recorded income and expenditure
• Reviewing financial reports from the system used to manage the School Fund
• Examining supporting documentation such as:
  
  
• Income slips
• Paying-in books
• Cheque books
• BACs remittances
• Invoices and receipts

These documents help verify that all transactions are legitimate, accurately recorded, and aligned with the intended use of the funds.

What Are the Benefits of a School Fund Audit?

Conducting an audit brings a number of clear benefits:

• Accountability – Demonstrates that funds are being managed responsibly.
• Transparency – Reassures staff, governors, parents, and donors that money is being used appropriately.
• Financial health – Ensures records are accurate and highlights any discrepancies.
• Continuous improvement – Offers recommendations to improve financial procedures, record-keeping, and internal controls.

 

How Can SBS Support?

SBS offers tailored support to help schools manage and audit their School Funds. Whether you need a full audit or advice on setting up better recording processes, our finance specialists can ensure your school is compliant, efficient, and confident in its financial governance.

Contact us