Practical Steps for Strengthening Financial Controls in Schools

In the last article we explored why internal financial controls are so important in schools. They are not just about paperwork or compliance—they are the backbone of trust, safeguarding public money, and making sure every pound is spent wisely. But what does this look like in practice? How can school leaders and staff actually strengthen financial controls in their everyday work?

Let’s dig into some practical steps schools and Multi Academy Trusts (MATs) can take to build confidence and reduce risk.

1. Make Roles and Responsibilities Crystal Clear
Clarity is the foundation of good controls. Everyone who touches money, from the office administrator who collects trip payments to the headteacher signing off the annual budget, needs to know exactly what they are responsible for—and just as importantly, what they are not. For example, no one person should be able to both order goods and authorise the payment for them. Where schools are small and staff wear many hats, compensating controls such as a second signature or governor oversight can keep things balanced.

2. Keep Processes Simple but Consistent
A control system only works if people actually follow it. That means procedures should be straightforward, not overly bureaucratic. Clear step-by-step guides for tasks like processing invoices, recording cash income from school meals, or checking payroll are invaluable. The goal is to build habits of consistency, so that even when staff change, the process stays secure.

3. Use Technology Wisely
Most schools now rely on financial software, whether that’s for payroll, procurement, or parent payment systems. These tools can automate controls like approval workflows or spending limits. But technology isn’t foolproof—it still needs human oversight. Password protection, user access restrictions, and audit logs are all part of keeping systems secure. And given the growing cyber-security risks, it is essential to keep systems updated and train staff in safe digital practices.

4. Build in Regular Reviews and Spot Checks
Internal controls should not just be set once and forgotten. Periodic checks help ensure they are being followed and remain fit for purpose. This can be as simple as a governor asking to see supporting invoices for a random payment, or a headteacher cross-checking trip payments against attendance lists. In a MAT, central finance teams may run reviews across schools to spot inconsistencies and share good practice. The key is that checks are regular, unpredictable, and documented.

5. Foster a Culture of Transparency
Controls are about culture as much as systems. Staff should feel comfortable raising concerns if something doesn’t look right. Creating a culture where asking questions is welcomed—rather than seen as interference—strengthens controls. For example, if a teacher queries why a particular supplier is always chosen, or a governor asks why a trip ran at a loss, that curiosity is part of good governance. Transparency also extends to clear reporting, so that governors and trustees can see financial performance and challenge it constructively.

6. Train and Support Staff
Finance may not be everyone’s passion, but training makes a huge difference. Even a short induction on handling money or using finance systems can prevent errors. For school leaders and governors, training in reading budget reports, understanding audit recommendations, or recognising red flags can be transformative. The DfE and National Governance Association both provide accessible resources to help non-finance experts develop confidence.

7. Learn from Audit and Scrutiny
For academies, internal scrutiny is mandatory, but even maintained schools can benefit from inviting an external pair of eyes to review financial systems. An audit is not a criticism—it is a health check. Acting promptly on recommendations, and explaining to staff why changes are needed, helps embed improvements. Over time, these cycles of scrutiny and improvement build resilience.

8. Balance Control with Practicality
Finally, schools must strike the right balance. Too many layers of sign-off can slow down simple processes, frustrating staff and even leading them to bypass systems. Too few, and the risks multiply. The best schools review their controls regularly, streamline where they can, and focus on the areas of greatest risk—big contracts, payroll, or income collection—without creating unnecessary red tape for low-value items.

Why It Matters
Good financial controls don’t just prevent fraud or error—they protect the resources schools need to deliver education. In a climate where budgets are under severe strain, every safeguard matters. They also protect reputations: a breach of financial integrity can quickly erode trust with parents, staff, and regulators. By putting practical measures in place—clear roles, simple processes, technology safeguards, reviews, transparency, training, and responsive audit—schools can strengthen their financial health and ensure that public money is used exactly as intended.

For teachers and school staff, the takeaway is simple: financial controls are not just the domain of finance managers. Everyone has a part to play. Whether it’s following the right steps for trip payments, keeping receipts safe, or asking questions when something doesn’t seem right, those small actions contribute to a bigger system of accountability and trust.