Finance Policy


Potchefstroom Central School has S21 status

The School Fund will be controlled and administered according to the S.A.S.A (1996) and all the regulations promulgated by virtue of this Act. In accordance with this Act, the S.G.B., who also act as a Trust Committee, will be responsible for the effective control and administration of the Fund.

ESTABLISHMENT OF SCHOOL FUND

  • A school fund shall be established for Potchefstroom Central School.
  • The responsibility to establish the school fund is vested in the S.G.B.
  • The S.G.B. shall control the school fund and shall be held responsible for the overall accountability of the fund.
  • The Principal, or Deputy Principal (in absence of the Principal) shall be the Executing Officer of the school fund according to the budget as delegated by the S.G.B.
  • The Bookkeeper shall manage the day-to-day treasury duties in consultation with the Principal but the responsibility of keeping the records will be the duty of the Principal.

CONTRIBUTION TO THE SCHOOL FUND

  • The school fund shall consist of money collected by the S.G.B. by means of:
    • School Fee
    • Fundraising even / Donations and bequest
    • Hiring out of school facilities, e.g. classrooms, swimming pool, grounds
    • Contributions by learners for special purpose
    • State subsidies
  • The amount of the school fees per annum shall be determined by the S.G.B. and approved by parents at the A.G.M.
  • No learner or parent shall be subjected to any form of discrimination or victimisation in the basic education of the learner, due to the inability to make a contribution to the school fund.
  • The S.G.B. will legally enforce payment of the school fees by parents who are able to pay and who neglect their commitment.
  • Specific donations shall be only used for the purpose for which it was donated.

FINANCIAL ADMINISTRATION AND BOOKKEEPING

General

  • The financial year of the school fund account shall be from 1 January to 31 December.
  • The S.G.B. shall open a bank account in the name of the school for all money under its control excluding where donors stipulate otherwise.
  • Sub-accounts will be created under the umbrella General Account.
  • No account may be overdrawn.
  • No loans may be made from the school fund unless the N.W. Education Department is late with payment of salaries.
  • The S.G.B. shall grant approval for the bookkeeper to keep a petty cash account, not exceeding R……………….., according to an imprest account system and replenishment of and payments out of petty cash shall be properly recorded in the Petty Cash ledger. The bookkeeper "exchanges" payment vouchers for cash (cheques issued) up to the amount of the petty cash float. No cash / blank cheques shall be issued.
  • 'The Principal' cheques shall be issued for the purpose of replenishment of the petty cash account.
  • Reporting and Depositing of money received.
  • Receipts shall be issued for all money received over the counter.
  • Receipts shall be made out in their serial number and no alterations to the name and amount are permissible.
  • Both the original and duplicate copies of cancelled receipts must be retained in the receipt book.
  • All old receipt books / records must be kept in safekeeping.
  • New receipt books shall be signed for and must be issued in following numbers order.
  • Where applicable all funds received must be banked in tact on the following day. No disbursements out of collected funds are permitted.

Withdrawals / Payments

  • All purchases must be made out on an order form which is authorised by the Principal or Deputy Principal or person designated by Principal.
  • All requests for purchases should have been budgeted for. Any purchases not budgeted for must be authorised by at least 3 of the following members of the Finance Committee: Treasurer, Chairperson, Secretary, Deputy-Chairperson.
  • Approval from the Finance Committee and 2/3 of the S.G.B. for amounts of R20 000 + is necessary of items / services are beyond budget limits. Quotes must be obtained to ensure fair practice.
  • Regular suppliers will be used by the school for the normal day to day needs / services of the school.
  • Withdrawals from the bank account may only be made per cheque, withdrawal slip or on Internet Banking.
  • Cheques shall only be valid if signed by the Principal and one of the 3 signatories designated by the S.G.B.
  • No blank cheques may be signed.
  • All payments must be made from a proper invoice, which must be married to the original requisition form (order) form and the delivery note, the latter reflecting acknowledgement of receipt. Invoice prices and calculations must be checked. All accounts / invoices to be scrutinised by the Principal / Bookkeeper before payment is made.
  • The amount for which a cheque is issued must be exactly the same as the amount specified on the invoice.
  • Cheque book counterfoils must be completed and kept for audit purposes. Cancelled cheques must be attached to the relevant counterfoils and be kept for audit purposes.
  • Receipts / proof of payment must be obtained for all money expended.

Bookkeeping

  • A Cash Book of all transactions, income as well as expenditure, must be kept.
  • A Petty Cash Ledger must be kept for petty cash expenses.
  • Bookkeeping Method: EDUPAC / PASTEL
  • No tippex to be used for alterations / mistakes
  • Revenue Budgets are drawn up by all stakeholders at school. These are presented to the Finance Committee, which then draws up the budget for approval at the A.G.M.
  • Capital Budgets that cover a period of a year or longer are prepared by the Finance Committee and are then discussed with the S.G.B. and are either accepted or returned to the Finance Committee for further investigation.

FINANCE MEETINGS

  • The Principal and Bookkeepers meet 2 x month to discuss finances, budget, planning, etc.
  • The Chairperson of the Finance Committee meets with the Principal 2 x term and then reports at the S.G.B. meeting.
  • Finance Committee meetings are called when necessary.

AUDITS

  • Audits are held annually at the beginning of the new year.
  • Audited financial statements are forwarded to the N.W. Education Department within 3 months of the year-end.
  • Independent auditors are used by the S.G.B.

APPROPRIATION OF SCHOOL FUNDS

The 3 main categories as set out in the annual budget are as follows:

  • Education / Tuition
  • Sport / Extra-curricular Activities
  • Operating Costs

RESERVE (SURPLUS) FUNDS

These require special attention to ensure that the funds are adequately invested in order to take full advantage of current interest rates offered by banking institutions. The liquidity of the investment must be carefully considered with a view to the requirements of funds in the short term.

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