OP5 Financial Condition Policy

Purpose

The purpose of the financial condition policy is to safeguard the financial viability of the school by outlining the accountabilities and responsibilities that are in place to minimise financial risk.

Policy

The financial viability of the school must be protected at all times. The Board understands that the possibility of theft or fraud cannot be entirely eliminated however the Principal is required to show there are in place safeguards and robust, clear procedures to minimise the risk of either event.

Responsibilities of the Principal

The Principal must ensure that:

  1. unauthorised debt or liability is not incurred.
  2. generally accepted accounting practices or principles are not violated.
  3. tagged/committed funds are not used for purposes other than those approved.
  4. more funds than have been allocated in the fiscal year are not spent without prior Board approval.
  5. all money owed to the school is collected in a timely manner.
  6. timely payment to staff and other creditors is made.
  7. unauthorised property is not sold or purchased.
  8. all relevant government returns are completed on time.
  9. no one person has complete authority over the school’s financial transactions.
  10. when making any purchase:
  • of over $5000 comparative prices are sought
  • of over $10000 adequate review on ongoing costs, value and reliability is undertaken
  • of over $20000 on a single item Board approval is first sought.
  1. effective systems are in place to meet the requirements of the payroll system

Relevant Legislation

Including but not limited to;

  • Education Act 1989
  • National Administration Guidelines
  • Financial Information for Schools Handbook- 5.4 (FISH)

Document Management and Control

Policy / Document Owner: Orakei School Board of Trustees
Operational Policy Number: OP5
Prepared or Reviewed By: W Pihema
Authorised By: The Board of Trustees
Date Policy Approved and Resolution No.: June 12 2017 / 2.6.17
Date Last Reviewed:
Review Frequency: Triennial
Date of Next Review: June 2020

 

Document History
Review Date: Review Outcome: