NAG 4: FINANCE AND PROPERTY

TRENTHAM SCHOOL STATEMENT OF INTENT

SENSITIVE EXPENDITURE

Created – Feb 2019

Reviewed by BOT – Feb 2022 Board Presiding Member ____________________________

Ratified by BOT – Feb 2022 Date: ______/_____/______

Next review date – Feb 2025

PURPOSE

The board has a responsibility to ensure that all expenditure of board funds is clearly linked to the business of the school and does not at any time provide unreasonable and personal benefit from those funds to any individual or group of individuals (staff or students).

GUIDELINES

1. At times there are expenses which may be considered to be beneficial only to individuals or small groups of individuals, such as travel expenses, or koha, gifts and other payments to individuals. Any such expenditure will be carefully scrutinised by the board before approval and may require appropriate and specific fundraising.
   

2. Funds raised for specific expenditure which may benefit individuals or groups of individuals are raised with a full understanding of their purpose known to those contributing the funds - such as parents/caregivers or other funding sources (e.g. charities). The funds raised will cover all costs (including travel and accommodation costs for teachers who may be involved).
   

3. The board requires the principal to take account of the following prior to authorising expenditure which may be beneficial to an individual or group:

   1. Does the expenditure benefit student outcomes?

   2. Does the expenditure represent the best value for money?

   3. Is it in the budget?

   4. Could the board justify this expenditure to a taxpayer, parent/caregiver or other interested party?

   5. How would the public react if this expenditure was reported by the media?

   6. Would there be, or be perceived to be, any personal gain from this expenditure?

   7. Does this expenditure occur frequently?
      

4. All expenditure which is incurred on behalf of individuals or groups of individuals will be fully accounted for and a separate income statement for management reporting purposes showing all funds raised and expenditure incurred will be provided to the board.
   

Travel Expenditure

The board ensures that travel expenditure incurred by the school is clearly linked to the business of the school. The principal has responsibility for the implementation of the following:

• any travel expenditure is on the school’s business, and the school obtains an acceptable benefit from the travel when considered against the cost

• expenses are reimbursed on an actual and reasonable basis

• staff required to travel on business do not suffer any negative financial effect

• accompanying partners and/or dependants travel at their own cost.

Process for Making Travel Arrangements

• No staff members approves their own travel.

• All booking arrangements for any travel are conducted through the school’s normal purchase procedures. School credit cards should be used wherever possible to avoid large reimbursements and for tracking and auditing purposes. This includes the booking of accommodation, flights and rental cars.

Travel within New Zealand

• The justification for travel within New Zealand is to be transparent and must relate to school business.

• All domestic air travel is to be economy class.

International Travel

• Any international travel is authorised by the board before it is commenced. A proposal is put to the board detailing the purpose of the trip, the expected benefit to the board which will arise from the trip and an estimate of the costs of the trip.

• All personal expenditure is to be met by the staff member.

• If a staff member has a travel time without a stopover in excess of 20 hours, a rest period of 24 hours before commencing work is permitted.

Accommodation

• Staff should opt for accommodation of a good, reliable and comfortable standard without being excessive.

• Staff who stay privately will be reimbursed on production of receipts, for koha or for the cost of a gift given to the people they have stayed with.

Vehicles

• When using rental cars, staff choose good but not superior model vehicles.

• Use of private vehicles is approved by the principal and reimbursement is at the rate specified by their employment agreement.

• If taxis are used, then staff should seek reimbursement through an expense claim.

Reimbursement of expenses

• The reimbursement for business related travel expenses is on the basis of actual and reasonable costs. Actual and reasonable expenditure is defined as “the actual cost incurred in the particular circumstance, provided that it is a reasonable minimum charge”.

• All receipts must be retained and attached to the travel claim.

• For expenditure incurred in New Zealand of value greater than $50 (including GST) there should also be a GST invoice to ensure the GST can be claimed by the school.

• Authorisation can still be given for expenditure less than $50 where there is no receipt, for example if it is not practical to obtain a receipt or if the receipt is lost. The expenditure can be reimbursed provided there is no doubt about its nature or the reasons for it.

Entertainment Expenditure

The school may incur costs of this nature through:

• social functions such as internal functions, representing the school socially, team building and goodwill, and providing hospitality to people in the course of school business.

• meetings, conferences, seminars, etc.

This expenditure must be monitored and linked to the business of the school. The amount spent must be shown to be reasonable and appropriate.

In selecting venues and catering the school takes account the nature of the event, total cost, and quality required. Alcohol would only be purchased for social functions, as appropriate.

Gifts

The board ensures that expenditure on gifts incurred by the school is clearly linked to the business of the school. The board has delegated responsibility for the implementation and monitoring of this process to the principal.

• The value of gifts to be presented to staff on leaving the school is determined using a consistent formula based on the length of service.

• All gifts are purchased through the school’s normal purchase procedures.

• The cost of a gift should be reasonable and appropriately reflect the benefit received.

Receiving Gifts

• Gifts should not be accepted if there is concern that acceptance could be seen by others as an inducement or a reward that might place the staff member under an obligation.

• If gifts received are small and of little value (under $50) then the recipient may keep the gift.

• If the gift is larger and more valuable, then the recipients must advise the board of the gift. The gift will be given to the school to use unless the board agrees to an exception to this procedure.

Gifts and Koha Given

• The line between gifts given as a token of appreciation and those that might compromise the school is not easily defined but as a general standard Koha is acceptable if it is a token gift, and which would not be seen by others as an inducement or a reward.

• All hospitality and/or corporate gifts and/or Koha must be from approved budget provisions and, as a general rule should not exceed $100 per recipient. Principal approval is required for gifts and Koha over $100 per recipient.

• Under no circumstance can gifts given be exchanged with the school for cash.

• To meet with the Inland Revenue Department guidelines the following conditions must be met - the Koha must be linked to the school’s activities, and adequate records must be kept to support the payment and this linkage.

• Koha is recognised as a discretionary contribution which is distinct from actual expenditure and which is appropriate to the occasion and incurred for services supplied or culturally appropriate.

School Credit Cards

The board ensures that credit card expenditure incurred by the school must clearly be linked to the business of the school. The board has agreed on the fundamental principles of these procedures, and has delegated responsibility for the implementation and monitoring of these procedures to the principal.

Process for Issue of Credit Cards

• Credit cards should only be issued to staff members after being authorised by the board.

• Prior to the card being issued, the recipient must be given a copy of this policy to ensure they have read and understood it.

Procedures to be Followed when Using a Credit Card

• The credit card is not to be used for any personal expenditure.

• The credit card will only be used for:

  • payment of actual and reasonable travel, accommodation and meal expenses incurred on school business; or

  • purchase of goods within the expenditure limits outlined in the Financial Delegations.

• All expenditure charged to the credit card should be supported by:

  • a detailed invoice or receipt to confirm that the expenses are properly incurred on school business

  • for expenditure incurred in New Zealand of value greater than $50 (including GST) there should also be a GST invoice to support the GST input credit

• The credit card statement should be certified by the cardholder as evidence of the validity of expenditure.

• Authorisation for the expenditure should be obtained on a one-up basis (e.g. the principal should authorise expenses by the Office Manager and the board should authorise any expenses by the principal). Cardholders are not allowed to approve their own expenditure.

Cardholder Responsibilities

• The cardholder should never allow another person to use the card and must protect the pin number of the card.

• The cardholder must only purchase within the credit limit applicable to the card,

• The cardholder must notify the credit card bank and the school immediately if the card is lost or stolen.

• The cardholder must return the credit card to the school upon ceasing employment there or at any time upon request by the board.

• Delegated board member is to check and sign the visa account - monthly.