Administrative Procedure 511

School Generated Funds

Background

An independent review and audit of school generated funds, which are administered at the school level, and form part of the District’s balance sheet, is essential for maintaining credibility and financial accountability for the funds that are generated.

Procedures

  1. The District requires that the general principles of accounting practice be applied to the management of all funds collected by schools.
  2. The Principal shall be responsible for the administration of school generated funds and shall submit a financial statement including balance sheet and statement of profit/loss to the Associate Superintendent, Business and Finance or designate each year in early October.
  3. Principals shall use an accounting system in the format prescribed by the Associate Superintendent, Business and Finance or designate.
  4. All transactions shall be controlled and recorded in the school’s accounting system and bank account, and are subject to audit by the District’s internal and external auditors.
    1. Disbursements from each account must have supporting documentation and shall be maintained on file for audit purposes.
    2. All revenues are to be recorded in pre-numbered receipt books and reconciled to the bank deposit books.
    3. The school bank accounts shall be reconciled each month, verifying all deposits and disbursements.
  5. There shall be a minimum of two (2) signing authorities for each bank account, one (1) of which must be the Principal or designate. Each cheque shall require two (2) signatures.
    1. An audit of the school accounts will be conducted when one (1) of the school signing authorities leaves the school.
  6. All monies collected by the school for a designated purpose must be used for the purpose so designated.
  7. All undesignated monies collected by the school are to be recorded as revenue and may be spent in the manner determined by the Principal in consultation with staff and the School Council.
  8. Money from school generated funds is not for the personal use of staff, students or others.
  9. Cash surpluses may be invested in savings accounts and/or guaranteed term deposits. Interest earned is to be recorded as revenue.
  10. An internal auditor shall visit each school periodically during the school year to review the accounting records and procedures.
    1. Internal process and control will also be subject to review during the audit process.

Adopted:

September 21, 2016

Amended:

 

Reference:

Section 20, 22, 60, 61, 113, 116, 145, 146, 147, 148, 149, 150, 151, 152 School Act

Societies Act

Funding Manual for School Authorities

Guide to Education ECS to Grade 12

Policy and Requirements for School Board Planning and Reporting

School Authority Planning and Reporting Reference Guide