Tairangi School Procedure Statement

CASH RESOURCES MANAGEMENT        NAG 4 Finance & Property

        NAG 6 Legislation and              Adminstration

Introduction:

  1. This Cash Resources Management Policy has been approved by the Board of Trustees
  2. The Board accepts that it has a responsibility to protect the cash resources of the school.  The Board has agreed on the fundamental principles of this policy and in turn has delegated many of these responsibilities to its Chief Executive, the Principal.  In the formulation and approval of this policy the Board has had due regard to the accepted standards of sound financial management and applied these to the school with reference to its roll size.
  3. The Board requires the Principal, as Chief Executive and the Board’s most senior employee to implement and manage this policy.  To this policy and attached as appendices are the Principal’s requirements of those staff involved in account for the school’s cash resources.
  4. This policy must be read in conjunction with other Board policies particularly the Schedule of Delegation of Responsibilities and the Theft and Fraud Prevention policy.
  5. The sections which follow set out details of the Board’s policy and refer to delegations where these are applicable.

Cheque and Call Deposit Accounts

  1. The Board agrees that one cheque account shall be operated for Board general receipts and payments.
  2. The trustees to this cheque account shall be approved by the Board and are as follows:
  1. All cheques shall be signed by the Principal and one other of the listed signatories.  If the cheque is payable to the Principal for reimbursement of expenses etc it will be signed by two other signatories and not the Principal.
  2. No cheque signatory will under any circumstances sign a blank cheque.
  3. All cheques, except for those for petty cash reimbursement, must be issued at “not transferable”.
  4. At no time shall the account be operated in overdraft except in terms for borrowings as required by the Public Finance Act 1989.
  5. The bulk of the Board’s funds will be managed by Education Services Ltd through its combined banking resources based at B.N.Z.
  6. Term deposits may be operated from time to time as required.

Cash Receipts

  1. All cash and cheques received must be paid in to the school office and properly receipted.  No cash received can be used to pay accounts in cash.
  2. Only delegated staff may deal with cash.
  3. All receipts must be banked regularly.
  4. All cash and cheques kept on the premises must be kept secure and under the control of a delegated person.
  5. The Treasurer will be given full details of all fixed assets sold.  Note that the Board’s prior approval is required for assets with a net depreciated value of more than $1,000 (exl. GST) to be sold.
  6. In order to ensure that it achieves the best value for its money, the Board requires quotes to be obtained from three reputable firms for all asset purchases where the value of such purchases is expected to be in excess of $2,000.

Accounts for Payment

  1. Reimbursement for expenses incurred must be certified by the person to whom the person is responsible provided the person who signs has delegated authority to sign.  An expense claim must be supported by GST receipts or invoices.  Claims for private motor vehicle usage must be certified by the Principal or delegate to indicate prior approval was given.  Scale rates will be the basis of reimbursement for mileage.
  2. All accounts for payment must have approved by an authorised delegate, using the official school order book.
  3. Staff will receive an amount of money each term to use for personal reimbursement expenses.  This amount will be determined annually.

Periodic Financial Statements

  1. Board Members will receive an up to date summary of income and expenditure at each month’s Board Meeting.
  2. The Board will receive and approve the school’s budgets each year in January and February.

General

  1. The Principal shall arrange for proper accounting records to be maintained.  The records must satisfy all requirements specified in Acts of Parliament, financial reporting standards and other applicable standards.  Education Services Ltd will be contracted to carry out this activity.
  2. The financial system must be so organised by the Principal that the Principal and the Board Chairperson can sign without hesitation the annual Statement of Financial Responsibility as required by the S42, Public Finance Act 1989.

File:cashresources4.doc        Policy Statement – Cash Resources Management