SCHOOL BASED FUNDS
School Based Funds: FIN 116
Adoption Date: October 25, 1999
Revised: April 2, 2007
This policy covers the administrative guidelines for the handling of school based funds under the jurisdiction of the Cape Breton-Victoria Regional School Board.
To develop guidelines that are consistent with acceptable accounting practices in the handling of school based funds.
It is the policy of the Cape Breton-Victoria Regional School Board that acceptable practices be implemented for the collection, custody, accounting, disbursement and reporting of all school based funds.
Annual financial statements of school based funds will be submitted to the Board for their review.
This policy has been authorized by the Board under motions number....
It is the responsibility of the Director of Finance to ensure that this policy and administrative procedures are implemented.
The School Principal will implement the policy and administrative procedures.
1. Bank Accounts
All monies collected by a school must be deposited to an account set up in a financial institution. In most cases, a chequing account is appropriate for this purpose. However, when a school carries a large cash flow for an extended period of time, consideration must be given to deposit in an interest bearing account/investment. School accounts must have at least two signing officers, and two authorized signatures must appear on each cheque issued.
A numbered receipt must be issued for all revenue received by the person responsible for depositing funds. When group sales are turned in, a single receipt must be issued for the total revenue amount received. Bank deposits are to be made on a regular basis. All receipts must be recorded in the cash receipt ledger with all the pertinent information ie: receipt number, date, amount, source and purpose. The receipt ledger is to be totalled and balanced at the end of each month.
All purchases of supplies, equipment, material, services, transportation, etc. must be supported by invoice or proper documentation. All cheques issued are to be entered into the disbursement ledger with pertinent information ie: cheque number, date, amount, payee name and purpose. The cheque number should be placed on the original invoice or appropriate documentation submitted for payment. Under no circumstances should a cheque be issued payable to cash. The disbursement ledger is to be totalled and balanced at the end of each month.
4. Bank Reconciliation
The bank statement and cancelled cheques are to be reconciled on a monthly basis. Upon receipt, the cancelled cheques are placed in numerical order and checked against the disbursement ledger. Also the bank deposits are to be checked against the cash receipts ledger.
5. Income & Expense Statement
At the end of each fiscal year - March 31/XX each school must submit a statement of school income and expenses to School Audit and Financial Services for the Cape Breton Victoria Regional School Board (copy attached).
6.1 Capital equipment and furnishings purchased from school based funds must be registered with the Finance Department for insurance and inventory purposes.
6.2 The teacher social, bereavement, or benevolent fund will not be included in the school funds. This must be an entirely separate account managed by the staff.
6.3 Records of school based funds must be kept on file for up to seven years. It is the responsibility of each school to process claims for the harmonized sales tax (HST) rebates.
6.4 The School Financial Services Officer is an available resource for Principals requiring advise or assistance in meeting the Board’s established policy directive.
6.5 All school based funds are subject to audit.
This policy will be reviewed by Director of Finance within three years from the authorization date.
All Policy Manual Holders