DE-P1 - School Funds - Accounting

Responsibility

The Principal is responsible for all school funds.

Bank Accounts

1. The bank accounts should be an interest-bearing chequing account, when possible.

2. Accounts should require two signatures on all cheques one being the Principal/Vice Principal/President and the second being either another executive member/staff representative/student representative.

Receipts

1. Duplicate pre-numbered receipts should be issued for monies received and reconciled to deposit information.

2. The original should be given to the payer and second copy retained in the receipt book.

3. When a significant number of students are required to pay for a specific activity (e.g., Chocolate bar sales, hot dog day, etc.) a “Master Receipt” may be used for the group.

4. For events where cash collections are received, monies will be counted by two individuals and forwarded to the Treasurer, who will issue a receipt.

5. All receipts of funds are to be recorded in the financial records.

Deposit of Funds

Monies should be deposited on the day they are received.  When this is impossible or impractical, funds are to be safeguarded by the Principal or Treasurer until the earliest time a deposit can be made.  

In making a deposit the Treasurer will:

1. Verify the deposit agrees with the total of receipts issued since the previous deposit.

2. Note the date and deposit amount on the last receipt covered by the deposit.

3. Prepare a bank deposit slip in duplicate.

4. Submit the deposit to the bank, which will retain the original copy of the deposit slip and will validate and return the duplicate for the Treasurer’s files.

5. Enter the deposit date and amount in the financial records.

Disbursements

1. All disbursements must be made by cheque, numbered and issued sequentially.

2. All cheques must have two signatures.  The signing of blank cheques or use of a signature stamp is prohibited.

3. All cheque disbursements must be supported by invoices, vouchers and/or purchase orders approved for payment by the Principal/Vice-Principal/President or their designate.

4. Whenever possible, cheques will be made out to companies rather than individuals.  If possible, cheques made out to individuals should be avoided.

5. All invoices/vouchers should be checked for numerical accuracy, be marked or stamped “PAID” and have the date paid, cheque number and the approving signatures recorded on the invoice.

6. Chequebooks should be updated when a cheque is written recording date, payee, amount and running bank balance.

7. Each cheque disbursement is to be recorded in the financial records in cheque number order.

8. All invoices and/or requisitions should be kept and filed in numerical cheque number order.

9. Prepaid items or expense advances should be limited to unusual circumstances and such items should be filed separately until an invoice or other appropriate document is obtained.

10. Making cheques payable to “CASH” is prohibited.

11. Miscellaneous items such as interest expense or income, etc. that appear on the bank statement should be recorded in the financial records monthly.

Financial Reporting

1. The bank statement should be reconciled with the financial records and the chequebook balance on a monthly basis when received.  The Treasurer should sign the reconciliation form and forward it to the Principal who should retain a copy for the files and the original should be returned to the Treasurer. 

2. A summary of cash receipts and disbursements should be prepared monthly and a copy provided to the school Principal for review and filing.   Where this is excessive due to very few transactions, a Principal may increase the time period of these reports.

3. As of June 30 each year, the school fund accounts for the current fiscal period will be forwarded to the Division Office.  The fiscal period for certain groups does not necessarily parallel the school year, and may have a closing date other then June 30th.  The Treasurer will prepare a Cash Receipts and Disbursements Statement for the year showing:

   1. the opening bank balance;

   2. the total receipts for the year;

   3. total disbursements for the year; and

   4. closing bank balance (See DE-E1)

4. Quarterly (September 30th, December 31st, March 31st, June 30th) reports will be forwarded to the Secretary Treasurer’s Department.

5. The June 30th report will be reviewed and signed by the Principal.  It will be forwarded to the Division Office accompanied with the year’s documentation including bank statements, receipts, vouchers and reports.

Other

1. At no time shall a Principal permit an overdraft in any school funds bank account unless there has been a specific, clearly identified plan for removing same.  Such a plan shall be made in writing by the Principal and submitted to the Secretary Treasurer’s Department for their approval prior to the deficit being incurred.

2. Purchase of items by the school’s fund account for individual staff members is not permitted.