ST BENEDICT S FINANCIAL POLICY DOCUMENT

Transcription

1 ST BENEDICT S FINANCIAL POLICY DOCUMENT

2 CONTENTS 1. THE PURPOSE OF THE FINANCIAL POLICY 2. FUNDAMENTAL PRINCIPLES 3. DEFINITIONS 4. THE FINANCE COMMITTEE 5. MANDATE TO THE FINANCE COMMITTEE 6. RECEIPTS OF INCIDENTAL PAYMENTS 7. MANAGEMENT OF THE SCHOOL BUDGET 8. PURCHASING 9. SCHOOL FEES 10. HANDLING OF CHEQUES, INTERNET PAYMENTS AND PETTY CASH 11. THE BURSAR AND THE FINANCE OFFICE MANAGEMENT OFSCHOOL FEES/MONIES RECEIVED PURCHASES SALARIES GENERAL LEDGER AND BUDGET SCHOOL ACCOUNTS 12. FUNDRAISING 13. LOANS 14. EQUIPMENT 15. FINANCIAL AID, BURSARIES AND SCHOLARSHIPS 16. PARENTS' DEPOSITS 17. RECOGNITION OF SERVICE TO THE SCHOOL

3 1. THE PURPOSE OF THE FINANCIAL POLICY The purpose of this policy document is to set out and regulate the school s financial practices. It outlines administrative procedures for the funding of St Benedict s and includes issues such as : Financial assistance and legislated application forms Rights and obligations of parents School fees and collection thereof Data capturing and recording Fundraising Banking Collection of monies by teachers and parents School tours and outings 2. FUNDAMENTAL PRINCIPLES The School finances will always be handled according to good financial governance practices and will always be within the laws of the country. 3. DEFINITIONS In this policy, unless the context indicates otherwise: Constitution means the constitution of the Board of Governors of St Benedict s; Board of Governors means the Board of Governors as constituted and approved by the St Benedict s Trust. 4. THE FINANCE COMMITTEE The Finance Committee will consist of the following members: 4.1. The Headmaster; 4.2. The College Principal (if applicable); 4.3. The Principal/s of the Preparatory and Elementary schools; 4.4. The School Bursar; 4.5. The Treasurer of the Board of Governors; 4.6. Any other member/s invited by members of the committee, and approved by the Board of Governors. 5. MANDATE TO THE FINANCE COMMITTEE 5.1. To annually compile a projected budget before the 30th September for the following year and to present this projected budget to the Board of Governors for discussion and approval To apply sound financial control over income and expenditure in line with the terms and parameters of the approved budget To suggest to the Board of Governors certain adjustments within the budget for authorisation by the Board of Governors to cover unexpected essential expenditure.

4 5.4. To consider and approve fund raising events and to monitor and control the income and expenditure of such events To exercise efficient control and to determine monthly and incidental rentals of school facilities to be paid to the school To meet fortnightly to consider the budget. Minutes of meetings should be kept To keep a proper record of all funds received and issued by all sections of the school To implement proper write-off procedures of bad debts The Financial Committee will consider and approve Bursary Applications To review the financial policy of the School annually and present it to the Board of Governors. 6. RECEIPTS FOR INCIDENTAL PAYMENTS (OTHER THAN SCHOOL FEES) 6.1. If incidental monies are collected by teachers or sports coaches for any reason these must be handed to the finance office immediately. No school monies or any other monies are to be taken home by a staff member or left overnight in any classroom. If parents are involved with the collection of any monies these are also to be handed to the finance office. Receipts for these monies will be issued. Teachers and sports coaches must take special precaution when handling any school money as any shortages remains the educator s and sports coach's responsibility until the money is handed to the finance office In the event that the incidental monies are for tours or camps i.e. large amounts, the letter of invitation/information letter must include the amounts that will be charged to parents' accounts. All such letters must be countersigned by the appropriate Headmaster. Such charges must be done prior to the tour or camp and not after the fact. Budgets for outing and tours must be approved by the sectional headmaster before they will be added to a school fee account All fundraising drives must be approved by the Sectional Headmaster. Any monies collected for fund raising activities must immediately be handed to the finance office for banking. A receipt will be issued by the finance office to the person responsible for the fund raising activity. These amounts will be credited to the relevant fundraising account in the schools books of account and a reconciliation of the account may be requested. No monies are to be banked in any account other than the school s banking account. 7. MANAGEMENT OF THE SCHOOL BUDGET 7.1. The management and control of the school budget is delegated by the Board of Governors to the Finance Committee. The Finance Committee accepts responsibility for the management of the budget and manages the budget according to standard accounting procedures. The day-to-day management of the budget is delegated to the Headmaster and School Bursar The Headmaster and Bursar will work closely with the Finance Committee in

5 monitoring the school s finances. An up to date written statement of the school finances shall be included in the Headmaster s report to the Governing Body meetings (at least every term). It shall be written and in sufficient detail for the Governors to fully understand the school s financial position. The report will be available prior to the arranged meeting. The review and any action shall be minuted A budget spending plan shall be constructed in line with the School Development Plan to ensure that the educational requirements of the pupils are met and that the environment within the school is at an acceptable standard. As the school s budget is based entirely on enrolment, fluctuations in enrolment should also be monitored closely by the Headmaster Strict control is be exercised over all expenditures. Before any purchase can be made a requisition form must be completed and presented to the Headmaster or principal for approval. Only after Headmaster and bursar have approved the purchase can the applicant go ahead with the actual buying of the item needed Requisition forms are used by the bursar to keep track of all expenditure under that budget item Requisition Forms may be collected from the Headmaster and Principal's secretaries Budget amounts may not be exceeded. Budget management forms part of the performance appraisal conducted for Heads of Department and Masters-in-charge of specific sports. In the case of a possible exceeding of the budget, prior approval must be obtained from the Headmaster and the bursar. Items exceeding R have to have full Finance Committee approval All money, being for school fees or fund raising, is trust money and the relevant legal implications for trust monies must be adhered to. 8. PURCHASING 8.1. The Headmaster will ensure that the principles of obtaining best value are always followed when obtaining quotations and tenders As part of the budgetary report to the Board of Governors, the Headmaster will review existing contracts and methods of supply. This would include obtaining the annual value of all purchases by type and present suppliers and assessing whether or not alternative methods of supply are available and testing the market through the use of tenders and quotations The Headmaster has delegated responsibility to authorise purchases of goods and services approved in the budget. However, in emergencies for amounts above R not included in the original budget or development plans, the Chair of Board of Governors should be consulted and the expenditure reported retrospectively to the next meeting of the Board of Governors All purchases over R10000 will be subject to quotations. The lowest quotation shall be accepted unless there are exceptional circumstances approved by the Finance Committee. For purchases over R , tender procedures shall be carried out unless there are exceptional circumstances approved by the Board of Governors.

6 8.5. All orders for budgeted goods over R must be approved by the Headmaster and Bursar to ensure that sufficient funds are available. 8.6 Goods and services shall be checked against orders for accuracy by someone other than the Bursar. Wherever possible the suppliers goods received note should be retained with the school s copy order Payment shall not be made until a proper invoice has been received, checked for accuracy and delivery and certified as such by the Bursar or School Buyer. 9. SCHOOL FEES 9.1. School fees are set annually during the compilation of the budget. The % increase is decided; and - based on the expected income from these fees - the rest of the budget is finalised School fees include all costs for compulsory tours and outings i.e. items which all boys in a grade are involved in School fees exclude costs for voluntary tours and outings that involve inviting a selected team or group of boys Three payment methods are available to parents: Monthly fees payable from the 31 st January to end November An annual discounted fee payable by the 31st January A further discounted Annual fee, payable by the 25th November of the preceding year Strict debt control is practised by the finance office. In addition to sending monthly statements electronically, a reminder SMS is sent for payment after the due date Parents who are clearly either unable or unwilling to pay, are called in to see the Principal./Bursar. Under exceptional circumstances, the Bursar or Sectional Headmaster recommend to the Finance Committee to offer the parent financial assistance, subject to the parent completing the appropriate Financial Assistance Form. Financial Assistance is only available to those parents whose school fees accounts are up-to-date at the time of application. 9.7 Alternatively the parent may be given a term s notice, in writing, and their son will no longer be able to attend St Benedict s A term s notice has to be given if a pupil is leaving the school. Failure to do so will result in 4 months fees being added to a school fee account. 10. HANDLING OF CHEQUES, INTERNET PAYMENTS AND PETTY CASH All expenditure and purchases must be paid for by means of a school cheque or via the internet unless they are cash purchases The maximum amount of petty cash to kept in the Finance Office at one time is

7 R The maximum amount to be paid for any single item out of petty cash will be R 1 000, except by special permission granted by the Principal Petty cash refund will be placed in an envelope for collection from the finance office on a daily basis Cheques should be seen as security items and the utmost care should be taken for the safe keeping of a cheque once it has been issued to a person The two signatories of the school s bank account shall any two of the Executive Headmaster, the Preparatory School Headmaster and the bursar. At least one headmaster s signature as well as a second signature shall appear on all cheques. No cheque is ever to be made out payable as cash. Cheques should always be made out to a beneficiary who will be the supplier of a product of a service All cheques should be crossed. 11. THE BURSAR AND FINANCE OFFICE The duties of the bursar/finance office of the school includes the following: MANAGEMENT OF SCHOOL FEES / MONEY RECEIVED Issue receipts for all school fees received Write all deposits in the deposit book Bank all money on a regular basis Process and reconcile all credit card payments monthly school fees statements to parents Handle all enquiries from parents regarding school fees Exercise credit control and collection of all outstanding school fees Keep record of all communications with parents regarding bad debts Keep record of all financial aid applications received Manage recipients of Financial Aid and Scholarships Compile and submit a list of names to Finance Committee meeting of bad debts Bring to the appropriate Headmaster's attention when accounts have fallen into arrears that suspension for non-payment of fees is pending Receipt and control all monies of any fund raising in any section of the school Adding additional charges and levies to accounts subject to the instruction of the Bursar or Headmaster/s PURCHASES Issue and receive requisition forms for purchases Issue cheques or make payments via the internet after the necessary forms have been completed and approved by the Headmaster Receive till slips of purchases made for the school, for example, purchase of paint, with signature of person who purchased, process and reimburse.

8 Receive invoices for all purchases and attach these invoices to the requisition forms Internet payments will be processed at 13:00 every day. Any requests for payments after this time will be done the following day SALARIES In consultation with the Headmasters, calculate proposed salary packages for prospective members of staff Process salaries monthly for full-time staff, including, but not limited to: Extra hours worked and overtime payments, unpaid leave, loans, deductions (such as school fees or garnishees). Manage the medical aid and pension deductions and payments Process salaries monthly for locum teachers, part time staff and weekly for casual staff. Take on staff on bank for payment Make payments of staff salaries into the bank in time for processing by the bank on the 25th of the month Do all the returns from the salaries and pay over the salary deductions, like PAYE, UIF, Pension, Medical Aid, Garnishees etc. Also submit Pension and Group Life administrators, pay SDL and submit returns on PAYE, UIF and SDL to SARS GENERAL LEDGER AND BUDGET Implement the financial system ordered by the Board of Governors Capture all deposits, credit card payments, direct bank deposits, direct bank debits and other payments to the general ledger and reconcile the bank accounts Capture all the journals to the general ledger Compile a monthly trial balance and the school financial statements up to the end of month during the second week of the new month and present it to the Headmaster and Finance Committee during the second week of the new month Verify all purchase requests against the approved budget Manage all budget items and inform the principals of any budgets exceeding allocated amounts SCHOOL ACCOUNTS 12. FUNDRAISING The School has a main cheque account for controlling fees, payments etc. This account is kept at First National Bank. No other cheque accounts shall be opened in the name of St Benedict s unless it has the full authorisation of the Board of Governors. Fundraising must be mandated by the Finance Committee and endorsed by the Board of Governors. Any income derived from any fundraising in any section of the school is to strictly banked via the finance office into the schools banking account. Receipts for fundraising must be insisted upon.

9 13. LOANS Loans will be extended to full time employees only in cases of emergency The maximum amount loaned will be R In the case of a funeral of a parent or child the loan may be increased to R The repayment time on a loan is 3 months maximum. The first loan must be paid off in full before a second loan will be entertained Loans must be approved by the Principals irst. 14. EQUIPMENT No school property may be borrowed by staff for private use. The only exception is hospitality goods, which may be requisitioned on the correct form, barring December, when no goods are lent out. School property lent within the school must be followed up by the person who lent the item, to ensure it was returned. Only the Executive Headmaster has the right to grant permission for school equipment to be used for non-school purposes 15. FINANCIAL AID/ BURSARIES/ SCHOLARSHIPS Financial aid is available to parents who have a temporary financial setback and need assistance for a period of time. Applicants have to complete a form detailing income and expenses and motivating why they need assistance. Each case is reviewed individually Once financial aid has been approved, school fees have to be kept up to date, or the assistance may be withdrawn and the full amount becomes payable All extra costs, ie levies, books, tours etc are payable under all circumstances Scholarships are based on Academic and Sporting excellence with preference given to boys of colour and boys who are Catholic. Parents do not have to complete a financial aid form. Scholarships are to be reviewed annually and if the scholar is not maintaining appropriate standards, the scholarship may will be withdrawn. 16. PARENTS' DEPOSITS The deposit is currently R and is refundable without interest when the pupil leaves the school, providing they have been at the school for a full academic year and have given the required terms notice Current unclaimed deposits are written off after 5 years. 17. RECOGNITION OF SERVICE TO THE SCHOOL Farewell Gifts Upon termination of employment, departing staff members receive a monetary gift

10 determined by the following formula: 1 4 years service X R years service x R years service x R years service x R year service x R1000 A gift in lieu of cash may be purchased at the request of the departing staff member Long Service Awards Gifts The following Long Service Awards are made after periods of unbroken service to the school. 5 years = R years = R years = R years = R years = R15000 Long Service Awards are awarded at the Annual Prizegivings and are fully taxable unless an asset is bought with this money. R 2000 is awarded to a staff member who is getting married and R 1000 is contributed to a baby shower.

11 ST BENEDICT'S FINANCE DEPARTMENT - REQUISITION FORM REQUESTING STAFF MEMBER DATE SCHOOL SECTION College Preparatory Elementary BUDGET SECTION DESCRIPTION OF PURCHASE /PAYMENT/REIMBURSEMENT AMOUNTS PLUS VAT FINAL AMOUNT BANK DETAILS FOR INTERNET TRANSFERS Staff Member Head of Department Headmaster

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