Nag 4 - Finance

Outcome statement

The school is financially viable, manages risks effectively and resources are targeted to where they make the most difference to outcomes for students.

Scoping

The board of trustees has overall responsibility for the financial management of the school. The principal is the day-to-day manager of the school and responsible for achieving legislative requirements and charter/strategic aims and targets within board policy objectives.

The financial viability of the school must be protected at all times, and every practicable effort is made to eliminate the risk of theft or fraud.

Delegations

The principal, in association with the financial office, is responsible for recommending an annual operating and capital budget including professional development budget allocation for the principal and staff  to the board within the timelines specified as in the attached annual calendar.

The board delegates the day-to-day management of the school’s finances and budget to the principal. Including appplications for sponsorship funding.

The board delegates the monthly and Annual accounting including GST returns to Education Services

The principal is required to ensure robust, clear procedures are in place to safeguard the integrity of financial management.

Annual accounts audited by appointed Auditor.

_{Delegated Authority}

_{The financial officer and principal are responsible to the board for:}

_{Determining the level of budgetary discretion available to the principal}

_{Monitoring and reporting on the annual budget via the principal}

_{Reviewing on behalf of the board accounts passed for payment by the school}

_{Advising on additional funding sources}

_{Financial report provided by Education Services presented at every board meeting}

_{Recommending changes to financial policy}

_{Overseeing the preparation of the annual accounts for board approval}

_{Reporting financial performance to parents and the community}

_{Preparing special reports for consideration by the board}

_{Annually reviewing the school’s risk management needs and insurance cover}

_{Assessing and making recommendations to the board on requests for spending on individual items outside of the budget.}

Expectations and limitations

Budgeting shall not fail to reflect the annual plan, risk financial jeopardy nor fail to show a generally acceptable level of foresight. The budget should:

• reflect the results sought by the board
• reflect the priorities as established by the board
• comply where the board’s requirement is for a balanced budget
• demonstrate an appropriate degree of conservatism in all estimates.
• Draft budget acceptance to be minuted.
• Budget can be amended at any point during the year through a motion at BOT Meeting.  Must be minuted.
• The principal must ensure:
• unauthorised debt or liability is not incurred
• generally accepted accounting practices or principles are not violated
• tagged/committed funds are not used for purposes other than those approved
• more funds than have been allocated in the fiscal year are not spent without prior board approval
• all money owed to the school is collected in a timely manner
• timely payment to staff and other creditors is made
• unauthorised property is not sold or purchased
• all relevant government returns are completed on time
• no one person has complete authority over the school’s financial transactions
• Principal Cheque account used for discretionary purposes, miscellaneous ;emergencies and contingencies
• Principal Cheque account at TSB Waitara – Principal Signatory.  Receipts to accompany all purchases.
• when making any purchase:
• of over $1000, comparative prices are sought
• of over $500, an adequate review of ongoing costs, value and reliability is undertaken
• of over $1000 on a single item, board approval is first sought if not in annual budget
• effective systems are in place to meet the requirements of the payroll system.

Fundraising

Funds to be raised in a lawful manner

All funds to be banked into TSB cheque account

All transactions to be documented

Annual fundraising target is budget deficit when applicable.

Procedures/supporting documentation

Annual budget

Audited Year Financial Accounts

Monitoring

The principal is responsible for financial reporting and demonstrating budget compliance. Where there is non-compliance, variances are to be reported to the board with recommendations on the actions required to meet compliance.

Legislative compliance

Refer to the Ministry of Education website for information on managing school finances and the Financial Information for Schools Handbook (FISH).

Fraud and Theft Prevention

Outcome statement

To protect any physical and financial resources of Ahititi School and establish systems and procedures to guard against the actions of theft and fraud

Principal to ensure that preventative measures against theft and fraud are in place

School/s physical resources kept secure and accounted for

Financial systems designed to prevent and detect the occurrence of fraud

All such systems to meet the requirements and standards as set out in the Public finance Act 1989, Section 45C(b)

Staff members made aware of their responsibility to immediately inform the Principal should they suspect or become aware of any improper or fraudulent actions by staff, suppliers, contractors, students or other persons associated with the School.

Any investigation into theft or fraudulent action to be conducted in a manner that conforms to the principles of natural justice and is just and fair.  In the event of an allegation of theft or fraud the Principal shall act in accordance with the following procedures

Report to Police within 24 hours – record the details of the allegation, the person or persons involved quantity and or value of the theft or fraud.

Request a written statement from the persons who has informed the Principal with details as to the nature of the theft or fraud, time and circumstances, quantity/value of theft.

Seek appropriate advice

Inform the Board chair.

On the basis of advice received and after consultation with the board chair, the Principal shall decide whether or not a prima facie case of theft or fraud exists, and if not, to document this decision and record that no further action is to be taken.

The Principal shall then carry out the following –

Investigate the matter further

If a prima facie case is thought to exist to continue with investigation.

Invoke any disciplinary procedures contained in the contract of employment should the person be a staff member.

Lay a complaint with the New Zealand Police

If necessary commission an independent investigation

In the case of fraud, require a search fro written evidence of the possible fraudulent action to determine the likelihood or not of such evidence.

Seek Legal advice

Inform the Manager, National Operations, Ministry of Education Local Office and the school’s auditors.

Once all available evidence is obtained the Principal shall consult with the Board.

If a case is considered to exist the Principal or a person designated by them shall, unless another course of action is more appropriate –

Inform the person in writing of the allegations that has been received and request a meeting with them at which their representative or representatives are invited to be present.

• Meet with the person who is the subject of the allegation and their representative to explain the complaint against them.
• Obtain a verbal or preferably a written response
• Advise the person in writing of the processes to be involved from this point on.

The Board recognizes that supposed or actual instances of theft or fraud can affect the rights and reputation of the person or persons implicated.  All matters to remain strictly confidential with all written information kept secure.

The Board affirms that any allegation of theft or fraud must be subject to due process, equity and fairness.  Should a case be deemed to be answerable then the due process of the law shall apply to the person or persons implicated.

Any intimation or written statement made on behalf of the school and related to any instance of supposed or actual theft or fraud shall be made by the Board  who shall do so after consultation with the Principal and if considered appropriate after taking expert advice.

Any allegation concerning the Principal should be made to the Board.  The Board will then investigate in accordance with the requirements of this policy.

Any allegation concerning a member of the Board of Trustees should be made to the Principal.  The Principal will then advise the manner of the local office of the Ministry of Education and commence an investigation in accordance with the requirements of this policy.