The document discusses financial management practices for schools. It covers several topics:
1) The importance of keeping accurate financial records and presenting information clearly under appropriate headings.
2) Having flexibility in allocating funds but also responsibility. Schools can switch expenditures between categories as needed.
3) Various sources of school funds including tuition fees set by the government, grants for specific purposes, and voluntary PTA/community funds controlled by the school management.
4) Proper procedures for receiving, recording, banking and withdrawing school funds including use of receipts, bank accounts, and checks. Financial policies must follow government regulations.
The document discusses cash handling procedures for petty cash transactions in organizations. It provides an example of using petty cash to pay a canteen boy Rs. 400 for refreshments. It notes that health sector organizations often keep petty cash in a locked box and use a petty cash register to record transactions. At the end of the month, receipts are sent to accounts which issues a cheque to replenish the petty cash funds. Proper cash handling includes securely storing cash, maintaining an accurate petty cash register, avoiding large transactions from petty cash, and setting petty cash limits below the custodian's salary.
The document provides guidance for student organization treasurers on cash handling responsibilities and best practices. It outlines the treasurer's duties to receive, record, safeguard, and report on organizational funds. It describes sources of funding and defines what is considered "cash". The document recommends separating financial duties, using a central mailing address, keeping records public, and defining consequences for embezzlement. It provides tips for cash handling, fundraising, depositing funds, and receiving donations.
Maintenance and other operating expensesCheryl Asia
This document outlines guidelines for mandatory operating expenses incurred by schools and school divisions in the Philippines. It discusses expense categories such as utilities, rent, insurance, supplies, and others. It also outlines requirements for implementing units to manage their own funds, maintain books of accounts, and submit regular reports on fund allocation and usage. Schools are to use funds to support approved school improvement plans, pay expenses like utilities, and procure supplies, within existing budgeting and procurement rules. Non-compliance may result in administrative penalties.
The beginners guide to venture capital by jimmy stepanianJimmy Stepanian
As a technology company, I like the idea of bootstrapping. In fact, that is how we are building I Like Fashion Retail as a company. We are bootstrapping my business thus far
The document defines key terms related to money and banking such as banks, financial markets, monetary theory, inflation, interest rates, and balance sheets. It provides examples to illustrate bank balance sheets and how transactions impact reserves. The central bank plays an essential role as the lender of last resort, implements monetary policy, and controls credit and cash availability. The central bank uses tools like open market operations, reserve requirements, and interest rates to influence the money supply. Money functions as a medium of exchange, store of value, unit of account, and measure of value in an economy.
D. Mishra, a former chief general manager of RBI, gave a presentation on savings, investment, banking, and regulation. The presentation covered several topics:
- The significance of financial literacy for financial inclusion, growth, and prosperity.
- Objectives of financial inclusion like affordable access to financial services for disadvantaged groups.
- Benefits of financial literacy like informed decision making and entrepreneurship promotion.
- Principles of financial planning and saving like understanding expenses, plugging non-essential spending to increase savings, and saving regularly in a bank account.
- Overview of the formal Indian financial system including regulators, banks, non-banking financial institutions, and capital markets.
The document discusses saving, investment, and the financial system. It defines key terms like financial system, financial markets, financial intermediaries, different types of saving and investment. It also explains the market for loanable funds, how interest rates balance supply and demand, and how policies like saving incentives can increase the supply of loanable funds. The document also provides information about US Bank's savings accounts, money market accounts, and retirement accounts. It includes references to articles about US Bank partnering with Intermountain Gas and financial data on US Bank stock.
The document discusses various sources of household income over a lifetime, including:
- Employment income, which is the primary source for most. Savings and investments can also provide reliable income depending on the risks taken.
- Income can also come from children as adults, pensions, social security, inheritances, and non-monetary sources like household production.
- Financial needs and planning change throughout life stages from youth to retirement. Both expected and unexpected events must be planned for.
The document discusses cash handling procedures for petty cash transactions in organizations. It provides an example of using petty cash to pay a canteen boy Rs. 400 for refreshments. It notes that health sector organizations often keep petty cash in a locked box and use a petty cash register to record transactions. At the end of the month, receipts are sent to accounts which issues a cheque to replenish the petty cash funds. Proper cash handling includes securely storing cash, maintaining an accurate petty cash register, avoiding large transactions from petty cash, and setting petty cash limits below the custodian's salary.
The document provides guidance for student organization treasurers on cash handling responsibilities and best practices. It outlines the treasurer's duties to receive, record, safeguard, and report on organizational funds. It describes sources of funding and defines what is considered "cash". The document recommends separating financial duties, using a central mailing address, keeping records public, and defining consequences for embezzlement. It provides tips for cash handling, fundraising, depositing funds, and receiving donations.
Maintenance and other operating expensesCheryl Asia
This document outlines guidelines for mandatory operating expenses incurred by schools and school divisions in the Philippines. It discusses expense categories such as utilities, rent, insurance, supplies, and others. It also outlines requirements for implementing units to manage their own funds, maintain books of accounts, and submit regular reports on fund allocation and usage. Schools are to use funds to support approved school improvement plans, pay expenses like utilities, and procure supplies, within existing budgeting and procurement rules. Non-compliance may result in administrative penalties.
The beginners guide to venture capital by jimmy stepanianJimmy Stepanian
As a technology company, I like the idea of bootstrapping. In fact, that is how we are building I Like Fashion Retail as a company. We are bootstrapping my business thus far
The document defines key terms related to money and banking such as banks, financial markets, monetary theory, inflation, interest rates, and balance sheets. It provides examples to illustrate bank balance sheets and how transactions impact reserves. The central bank plays an essential role as the lender of last resort, implements monetary policy, and controls credit and cash availability. The central bank uses tools like open market operations, reserve requirements, and interest rates to influence the money supply. Money functions as a medium of exchange, store of value, unit of account, and measure of value in an economy.
D. Mishra, a former chief general manager of RBI, gave a presentation on savings, investment, banking, and regulation. The presentation covered several topics:
- The significance of financial literacy for financial inclusion, growth, and prosperity.
- Objectives of financial inclusion like affordable access to financial services for disadvantaged groups.
- Benefits of financial literacy like informed decision making and entrepreneurship promotion.
- Principles of financial planning and saving like understanding expenses, plugging non-essential spending to increase savings, and saving regularly in a bank account.
- Overview of the formal Indian financial system including regulators, banks, non-banking financial institutions, and capital markets.
The document discusses saving, investment, and the financial system. It defines key terms like financial system, financial markets, financial intermediaries, different types of saving and investment. It also explains the market for loanable funds, how interest rates balance supply and demand, and how policies like saving incentives can increase the supply of loanable funds. The document also provides information about US Bank's savings accounts, money market accounts, and retirement accounts. It includes references to articles about US Bank partnering with Intermountain Gas and financial data on US Bank stock.
The document discusses various sources of household income over a lifetime, including:
- Employment income, which is the primary source for most. Savings and investments can also provide reliable income depending on the risks taken.
- Income can also come from children as adults, pensions, social security, inheritances, and non-monetary sources like household production.
- Financial needs and planning change throughout life stages from youth to retirement. Both expected and unexpected events must be planned for.
This document provides an overview of a presentation on financial education management. It includes:
1) Definitions of financial education management and its aims.
2) An outline of the legal requirements and legislation related to financial matters for schools.
3) Guidelines for financial management including fundraising strategies and the importance of budgeting.
4) Details on creating and managing a school budget, including goals, principles, elements, and control.
Transworld Systems White Paper EducationDoug Graham
This document discusses the challenges higher education institutions face in balancing enrollment goals, retention rates, and cash flow. It explores ways for institutions to improve cash flow without compromising retention, such as by establishing policies for managing student accounts receivable and outsourcing early-stage debt collection to specialized agencies. Outsourcing can help optimize limited institutional resources, increase early collection efforts, and reduce uncollected debt while supporting retention. The document advocates outsourcing as a way for institutions to yield higher returns compared to handling collections internally or using percentage-based agencies.
"You would be surprised that in some schools, the restriction appears to be implicitly understood, since they neither have a line for temporarily restricted funds on their balance sheet nor the statement below in their respective financial statement notes".
The document discusses financial management in schools, including defining financial education management, legal requirements, legislation related to financial matters, guidelines for financial management like budgeting, fundraising strategies, and the importance of creating and managing a school budget. It provides details on the budgeting process and principles of budgeting for a school.
Telling Your School’s Story through Your Financial Statements: A Lender’s Poi...Nonprofit Finance Fund
This document discusses how charter school financial statements help tell potential lenders the story of a school's past, present, and future financial situation when applying for loans. It outlines the key factors lenders evaluate, including the school's financial systems, historical financial statements like income statements and balance sheets, and forward-looking statements like budgets, cash flow projections, and income statement projections. Being able to clearly articulate the school's financial story through these documents is important for obtaining a loan.
A college education increases your child’s ability to think critically, advance in a career, contribute to the community and better understand the world. No wonder choosing the right college is such an important task. Your child and you must carefully consider the many aspects of a college – academic offerings, size, location, and campus life – to ensure the best possible match with his/her academic, personal and career interests. The right college choice must be affordable as well. Financial aid is available in many forms to help students meet college costs. This assistance is intended to supplement, not replace, the efforts of students and families. This guide gives parents and students the basic information needed to begin securing financial aid. It will help you find the information you need to ask the right questions and make informed decisions about managing college costs.
Source: https://ebookschoice.com/making-money-wise-college-decisions/
How To Manage Finances & Funding for Educational InstitutionsProcurify.com
Every organization and every person has a spend culture.
Spend culture is a set of shared beliefs and practices that informs a person how, why and when money should be spent.
Whether planned or random, all organizations have a spend culture.
Culture is fluid. It evolves with time and with each additional person. Understanding your spend culture and how it affects the people who work in your organization will influence how much value you get out of your spending.
Find out what your Spend Culture is: https://spendculture.procurify.com/
Did you know that September is College Savings Month? One of our goals at MEFA is to make sure that families have the best possible information on saving for college.
This document provides an overview and guidelines for school-based financial management for non-implementing units (non-IUs). It discusses the learning objectives, key activities involved in school-based financial management including fiscal planning, budgeting, cashiering, accounting, procurement, asset management, and reporting. Specific guidelines are provided for granting cash advances, maintaining cash disbursement registers, and preparing liquidation reports. The roles and responsibilities for financial management differ between implementing units and non-implementing units.
This document outlines the governance structure, policies, and procedures for managing school finances in Zambia. It discusses the composition and responsibilities of the School Finance Committee, which oversees the school's finances. It also covers the roles of the school bursar/accountant and headteacher in implementing the approved budget. The document provides guidance on preparing an annual school budget, including sources of funds and permissible expenditures. It establishes rules for managing bank accounts and petty cash, as well as requirements for maintaining cashbooks and supporting documentation.
Ethics of Higher Education Finance Page 2 of 3 .docxSANSKAR20
Ethics of Higher Education Finance Page 2 of 3
By the end of this lesson, students should be able to:
Discuss what acting for the public good means to higher education finance.
Explain how to distinguish between a self-promoting gift and one that is not.
Explain ways universities have attempted to handle finances and fundraising in an effort
to act in the most ethical way possible.
Describe how to ensure that donors are treated fairly and their wishes are followed.
Financial management in higher education has been under scrutiny for the way money is
handled. There are many opportunities for employees to personally benefit from the money
designated for universities. All universities should strive to educate and monitor financial
transactions to ensure that the public trust is unquestioned.
When a person acts for the public good they strive to increase the welfare of those around
them other than themselves. Our policies should be established in a way that does not require
a person to act against their own self-interest. The policies should provide a well thought-out
framework in which to work so that the temptation to benefit one is not an option. People have
a tendency to operate from a position of self-interest. Self interest can be referred to as
“egoism”. Acting for the public good requires that the person is motivated by their own ego but
the action is to increase the public good.
Collectivism is when a group of persons are benefitted by a certain action. In higher education
we work individually and in groups to accomplish the goals of the university. When a group
works to better the institution in which they also benefit is collectivism. Social dilemmas arise
when a person or group have to choose who will benefit from a particular action. Some groups
benefit while others do not. Another dilemma is when the benefits of a decision are greater for
one group than another.
We say that a person is altruistic if their motives are to benefit one or more persons other than
themselves. Principlism is motivation to uphold a morale principle. It is necessary to
understand these various concepts to lay the foundation for understanding how to properly
manage money.
As administrators in higher education we are expected to act in a manner that is ethically and
fiscally responsible. We have a social responsibility to do the jobs we are paid to do to the best
of our abilities. Fiduciary responsibility means that we are responsible for the proper financial
management of the money we control. Anyone who experiences the effects of the activities of
the university are called “stakeholders”. A healthy tension occurs when our fiduciary
responsibilities are contrasted with our social responsibilities. This tension is called the
“stakeholder’s paradox”.
Ethics of Higher Education Finance Page 3 of 3
Universities were established to promote an increase in intellect and social ide ...
This document discusses household budgeting and family accounting. It explains that a family budget allows families to spend money wisely by allocating income to necessary expenses without going into debt. Creating a budget provides a financial map that shows where income is spent each month. The document then discusses the benefits of a household budget, including getting finances under control, teaching the value of money, and alerting families to potential cash flow issues. It also explains how to make a budget by identifying income, prioritizing expenses, keeping records, and limiting spending to allotted amounts.
Connor Grieb completed a 291-hour internship from May 18, 2015 to August 14, 2015 at the Coweta County School System Central Office in Newnan, GA. His primary tasks involved auditing financial records for 25 schools, entering transportation employee timesheets, preparing vendor checks, and updating employee salary sheets. The internship provided real-world experience in accounting and payroll departments that will benefit his future career. Connor indirectly managed bookkeepers for 31 schools by performing audits and providing written reviews to improve their record keeping. The goal of the internship was to gain skills applicable to efficiently operating a large school system.
This document summarizes key financial information needs for effectively managing school resources, including cash flow projection, budget allocation and mobilization, the financial position of the school, and accounting and financial policies. The response then shares the best practices of the institution where the author is currently employed related to delegating financial tasks with strict confidentiality, cash flow projection through treasurers and an organizational adviser, budget allocation through administrative prerogative, the school's financial position being used to build infrastructure, and accounting and financial policies being handled by a financial secretary without direct teacher involvement.
Potential employers check credit scores as an indicator of responsibility. Developing good money management habits begins with tracking cash flow - income vs. expenses and savings vs. debt. For college students, income comes from scholarships, loans, work, savings or family. Expenses include necessities, extras and emergencies. Students should develop short, mid and long-term financial plans using bank accounts, credit/debit cards responsibly, and applying for financial aid like grants, work-study and loans.
UHY Hacker Young provides a variety of services to support academy schools including audit and assurance, accounts preparation, payroll services, and support for finance teams. They aim to offer a personal touch and have received positive recommendations from satisfied clients such as Dane Court Grammar School who said UHY have a helpful manner. The document provides details on the various services offered and contact information for the UHY academy schools team.
Managing the Risks - Cash Handling - Presentation 9 of 9t_lewis
This document provides information and guidelines around cash handling responsibilities and best practices for student organizations at UT Dallas. It discusses the treasurer's responsibilities, fiscal responsibilities of student organizations, sources of funding, examples of cash handling controls like separating financial duties and record keeping, fundraising guidelines, and receiving donations. The presentation aims to manage risks and ensure compliance with university policies regarding financial activities of student groups.
This document provides an overview of a presentation on financial education management. It includes:
1) Definitions of financial education management and its aims.
2) An outline of the legal requirements and legislation related to financial matters for schools.
3) Guidelines for financial management including fundraising strategies and the importance of budgeting.
4) Details on creating and managing a school budget, including goals, principles, elements, and control.
Transworld Systems White Paper EducationDoug Graham
This document discusses the challenges higher education institutions face in balancing enrollment goals, retention rates, and cash flow. It explores ways for institutions to improve cash flow without compromising retention, such as by establishing policies for managing student accounts receivable and outsourcing early-stage debt collection to specialized agencies. Outsourcing can help optimize limited institutional resources, increase early collection efforts, and reduce uncollected debt while supporting retention. The document advocates outsourcing as a way for institutions to yield higher returns compared to handling collections internally or using percentage-based agencies.
"You would be surprised that in some schools, the restriction appears to be implicitly understood, since they neither have a line for temporarily restricted funds on their balance sheet nor the statement below in their respective financial statement notes".
The document discusses financial management in schools, including defining financial education management, legal requirements, legislation related to financial matters, guidelines for financial management like budgeting, fundraising strategies, and the importance of creating and managing a school budget. It provides details on the budgeting process and principles of budgeting for a school.
Telling Your School’s Story through Your Financial Statements: A Lender’s Poi...Nonprofit Finance Fund
This document discusses how charter school financial statements help tell potential lenders the story of a school's past, present, and future financial situation when applying for loans. It outlines the key factors lenders evaluate, including the school's financial systems, historical financial statements like income statements and balance sheets, and forward-looking statements like budgets, cash flow projections, and income statement projections. Being able to clearly articulate the school's financial story through these documents is important for obtaining a loan.
A college education increases your child’s ability to think critically, advance in a career, contribute to the community and better understand the world. No wonder choosing the right college is such an important task. Your child and you must carefully consider the many aspects of a college – academic offerings, size, location, and campus life – to ensure the best possible match with his/her academic, personal and career interests. The right college choice must be affordable as well. Financial aid is available in many forms to help students meet college costs. This assistance is intended to supplement, not replace, the efforts of students and families. This guide gives parents and students the basic information needed to begin securing financial aid. It will help you find the information you need to ask the right questions and make informed decisions about managing college costs.
Source: https://ebookschoice.com/making-money-wise-college-decisions/
How To Manage Finances & Funding for Educational InstitutionsProcurify.com
Every organization and every person has a spend culture.
Spend culture is a set of shared beliefs and practices that informs a person how, why and when money should be spent.
Whether planned or random, all organizations have a spend culture.
Culture is fluid. It evolves with time and with each additional person. Understanding your spend culture and how it affects the people who work in your organization will influence how much value you get out of your spending.
Find out what your Spend Culture is: https://spendculture.procurify.com/
Did you know that September is College Savings Month? One of our goals at MEFA is to make sure that families have the best possible information on saving for college.
This document provides an overview and guidelines for school-based financial management for non-implementing units (non-IUs). It discusses the learning objectives, key activities involved in school-based financial management including fiscal planning, budgeting, cashiering, accounting, procurement, asset management, and reporting. Specific guidelines are provided for granting cash advances, maintaining cash disbursement registers, and preparing liquidation reports. The roles and responsibilities for financial management differ between implementing units and non-implementing units.
This document outlines the governance structure, policies, and procedures for managing school finances in Zambia. It discusses the composition and responsibilities of the School Finance Committee, which oversees the school's finances. It also covers the roles of the school bursar/accountant and headteacher in implementing the approved budget. The document provides guidance on preparing an annual school budget, including sources of funds and permissible expenditures. It establishes rules for managing bank accounts and petty cash, as well as requirements for maintaining cashbooks and supporting documentation.
Ethics of Higher Education Finance Page 2 of 3 .docxSANSKAR20
Ethics of Higher Education Finance Page 2 of 3
By the end of this lesson, students should be able to:
Discuss what acting for the public good means to higher education finance.
Explain how to distinguish between a self-promoting gift and one that is not.
Explain ways universities have attempted to handle finances and fundraising in an effort
to act in the most ethical way possible.
Describe how to ensure that donors are treated fairly and their wishes are followed.
Financial management in higher education has been under scrutiny for the way money is
handled. There are many opportunities for employees to personally benefit from the money
designated for universities. All universities should strive to educate and monitor financial
transactions to ensure that the public trust is unquestioned.
When a person acts for the public good they strive to increase the welfare of those around
them other than themselves. Our policies should be established in a way that does not require
a person to act against their own self-interest. The policies should provide a well thought-out
framework in which to work so that the temptation to benefit one is not an option. People have
a tendency to operate from a position of self-interest. Self interest can be referred to as
“egoism”. Acting for the public good requires that the person is motivated by their own ego but
the action is to increase the public good.
Collectivism is when a group of persons are benefitted by a certain action. In higher education
we work individually and in groups to accomplish the goals of the university. When a group
works to better the institution in which they also benefit is collectivism. Social dilemmas arise
when a person or group have to choose who will benefit from a particular action. Some groups
benefit while others do not. Another dilemma is when the benefits of a decision are greater for
one group than another.
We say that a person is altruistic if their motives are to benefit one or more persons other than
themselves. Principlism is motivation to uphold a morale principle. It is necessary to
understand these various concepts to lay the foundation for understanding how to properly
manage money.
As administrators in higher education we are expected to act in a manner that is ethically and
fiscally responsible. We have a social responsibility to do the jobs we are paid to do to the best
of our abilities. Fiduciary responsibility means that we are responsible for the proper financial
management of the money we control. Anyone who experiences the effects of the activities of
the university are called “stakeholders”. A healthy tension occurs when our fiduciary
responsibilities are contrasted with our social responsibilities. This tension is called the
“stakeholder’s paradox”.
Ethics of Higher Education Finance Page 3 of 3
Universities were established to promote an increase in intellect and social ide ...
This document discusses household budgeting and family accounting. It explains that a family budget allows families to spend money wisely by allocating income to necessary expenses without going into debt. Creating a budget provides a financial map that shows where income is spent each month. The document then discusses the benefits of a household budget, including getting finances under control, teaching the value of money, and alerting families to potential cash flow issues. It also explains how to make a budget by identifying income, prioritizing expenses, keeping records, and limiting spending to allotted amounts.
Connor Grieb completed a 291-hour internship from May 18, 2015 to August 14, 2015 at the Coweta County School System Central Office in Newnan, GA. His primary tasks involved auditing financial records for 25 schools, entering transportation employee timesheets, preparing vendor checks, and updating employee salary sheets. The internship provided real-world experience in accounting and payroll departments that will benefit his future career. Connor indirectly managed bookkeepers for 31 schools by performing audits and providing written reviews to improve their record keeping. The goal of the internship was to gain skills applicable to efficiently operating a large school system.
This document summarizes key financial information needs for effectively managing school resources, including cash flow projection, budget allocation and mobilization, the financial position of the school, and accounting and financial policies. The response then shares the best practices of the institution where the author is currently employed related to delegating financial tasks with strict confidentiality, cash flow projection through treasurers and an organizational adviser, budget allocation through administrative prerogative, the school's financial position being used to build infrastructure, and accounting and financial policies being handled by a financial secretary without direct teacher involvement.
Potential employers check credit scores as an indicator of responsibility. Developing good money management habits begins with tracking cash flow - income vs. expenses and savings vs. debt. For college students, income comes from scholarships, loans, work, savings or family. Expenses include necessities, extras and emergencies. Students should develop short, mid and long-term financial plans using bank accounts, credit/debit cards responsibly, and applying for financial aid like grants, work-study and loans.
UHY Hacker Young provides a variety of services to support academy schools including audit and assurance, accounts preparation, payroll services, and support for finance teams. They aim to offer a personal touch and have received positive recommendations from satisfied clients such as Dane Court Grammar School who said UHY have a helpful manner. The document provides details on the various services offered and contact information for the UHY academy schools team.
Managing the Risks - Cash Handling - Presentation 9 of 9t_lewis
This document provides information and guidelines around cash handling responsibilities and best practices for student organizations at UT Dallas. It discusses the treasurer's responsibilities, fiscal responsibilities of student organizations, sources of funding, examples of cash handling controls like separating financial duties and record keeping, fundraising guidelines, and receiving donations. The presentation aims to manage risks and ensure compliance with university policies regarding financial activities of student groups.
Managing the Risks - Cash Handling - Presentation 9 of 9
Financial management
1. Financial management
You have learnt how to identify sources of school funds, budget for and secure the funds.
Financial management, amongst other things, involves recognizing and respecting
authorities, regulations and practices governing the receiving, keeping and spending of
funds. In this unit you will learn about the basic framework and mechanisms of financial
management and gain experience in applying appropriate financial management practices
and skills
You will realise that funds coming into a school are not entirely certain and are often not
adequate. To manage these limited funds, the school head, as a public employee and the
accounting officer, must be guided by the basic framework and mechanisms of financial
managment.
Framework for managing school funds
Keeping accurate financial information
You are expected to keep complete and accurate financial information and to present this
information properly. This information should include sources of revenue and accurate
entry of expenditure, avoiding errors or omissions as much as possible. Proper
presentation further demands that you always put any required financial information
under the correct heading and in the correct place.
The information should be arranged under broad headings, such as transport, and then put
under smaller headings, such as petrol and vehicle maintenance. Preferably you should
present the information under appropriate, clearly understood headings in a layout based
on the way in which education is actually provided. This will enable you to compare
costs of the range of services offered by the school.
Flexibility and freedom with responsibility
In managing school funds, you should enjoy some financial freedom and flexibility to
enable you consider a range of options. This demands a high sense of responsibility in
order to use the freedom and flexibility effectively.
Virement (switching expenditure)
In a school with a well-organised financial management system overall types of virement
can be applied. Under this system you, as the head of the school, can always agree with
the governing bodies to switch expenditure between one heading and another if they so
wish and if need be.
This depends on how you have prioritised the school services.
2. Purchasing Freedom
It is important for you as the head to enjoy freedom of purchase. Lack of purchasing
freedom restricts the freedom of schools as consumers and delays the purchasing process.
Financial Policies
The school should have financial policies to guide the financial administrators and
managers. These policies will assist financial control and regulate the processes of
receipting, keeping, withdrawing and expending funds. However these policies should
not clash with the official national policies on school finances.
Proper allocation of funds
To manage the school finances you should be conversant with what each department has
and what it needs. Involving teachers and heads of department in this process is very
important.
Authorities, rules and regulations governing school funds
It is important that you are equally conversant with the authorities, rules and regulations
that should guide you in the effective handling of school funds
Tuition fees
Reflecting upon the situation in your school:
(1) Who establishes the level of school fees? Where is this stipulated?
(2) Who pays tuition fees to the school?
(3) What rules and regulations governing fees, originate at:
- national;
- district;
- school level?
(4) To whom is the school head accountable over tuition fees
Tuition fees are gazetted, therefore government is the authority for these funds, which
must be expended as the law dictates. In the above activity your response might have
indicated that at national level, relevant government authorities are likely to determine
the level of fees, sources of fees and their purpose.
At district level, the District Education Officer and Treasurer are likely to monitor the use
of fees in schools under their jurisdiction. In some cases they may determine the level and
purpose of the fees. Whereas at school level, the management committee or board of
governors decides on specific items to be purchased and guides you the head to purchase
and account for the fees. This information should be found in government statutes and
standing instructions.
Grants
Grants are funds that government or other non-government organisations give to run
schools. Reflecting on your school situation:
(1) List the various sources of grants to your school.
(2) What activities or items are financed from grants in your school?
(3) Who decides on how to spend the grants
3. Guidelines on the management of grants are usually contained in the rules and
regulations of school governing bodies. Grants are managed and controlled in a similar
way to school fees except that they have to be spent for the purpose(s) indicated against
the grant. Some grants have specific uses, for example, salaries; other grants may be
spent flexibly for example, block grant.
PTA or community group funds
(1) Does your school receive Parent-Teacher Association funds?
(2) If so, how are PTA. charges levied and controlled?
(3) What items are financed from PTA funds in your school?
(4) What other community groups contribute funds to your school
Comments
Your answers might have included the following:
1 PTA funds are not government gazetted fees.
2 They include funds that are voluntarily paid by parents as decided in the general
meeting of the PTA.
3 The funds are levied for the purpose agreed upon by the members of the association but
approved by the school management committee or governing board.
Since you are the day-to-day administrator of the school, the responsibility for collecting
and banking this money rests upon you, and you are accountable to the executive of the
committee and the electorate. The management committee or the board of governors
controls the PTA funds by ensuring that the money is expended in the manner and for the
purpose agreed upon by the members of the PTA and approved by the governing body of
the school
Other funds
All funds obtained from other sources are also controlled by the school governing body,
that is the school management committee or board of governors, which must sanction
their expenditure. You are the accounting officer of the school for these funds.
2. Receiving and banking of school funds
It is clear that funds coming into the school must be received according to set procedures
and kept safely. A receipt book is one of the commonest books of account. It is used in
the process of receiving funds into a school.
Receiving funds
Describe how you officially receive money in your school.
(2) What kind of information do you record about funds received?
(3) Look at the receipt leaf shown in Fig 3 and list the main information included on it.
(4) Describe the use of a receipt
4. Comments
Typically in a school, funds come in cash, cheque or drafts. These monies must be
received properly and kept safely.
A receipt book is designed for receiving real cash or cheques. A receipt must be made or
written out immediately on receiving the cash money or cheque, and the original should
be sent or given to the person(s) who has/have made the payment.
A receipt is used in a school to:
• acknowledge receipt of cash or cheque in settlement of school dues
• to provide proof to the school that the student has paid
• provide information for the cash book.
It bears the following basic information:
• the name of the person who paid the funds
• the name of the person who received the funds
• date received
• purpose of the funds
• type of funds (cash, cheque, etc.).
If money has to be kept before banking, it must be under lock and key or in a safe to
avoid theft or damage by fire, etc.
5. Banking
The head of the school should first bank all school funds and then withdraw as and when
necessary. You should avoid using cash before it is banked as much as possible
The school can have as many accounts as found necessary by the governing body. It is
always advisable for a school to deposit its excess revenue on fixed deposit accounts
which generate higher interest. Each account usually has two or three authorised
signatories, two of whom must sign a cheque before the bank can honour it. It is common
practice that the chairman of the board of governors or management committee is a
signatory. These signatories are usually introduced to the bank by the responsible officer.
The following are some of the bank accounts that can be opened and used by schools:
1 Current accounts (of various types) have deposit books both for cash and for cheques.
Cheque books are used for withdrawals or transfer of deposits. Interest payment on the
balance is usually high, for example, 20 per cent per annum.
2 Savings accounts.
3 Fixed deposit accounts/time receipts, where the customer is given a receipt and is only
allowed to withdraw the money when the receipt matures.
Withdrawing funds
Funds are withdrawn using a withdrawal form or a cheque leaf.
6. A
A cheque is a written order directing the bank or bankers to pay money as therein stated.
Fig 5 A typical cheque