Administrative Procedure 503: Accounting

Education Act: Part VIII Compliance with Board Obligations; Education Act: Part IX Finance; Education Act: Section 265 Duties of Principal: Reports to Supervisory Officer; Education Act: Section 286 Duties of Supervisory Officers: Supervise Business Functions; O. Reg. 277/19 Grants for Student Needs; O. Reg. 361/10 Audit Committees; O. Reg. 395/11 Accounting Policies and Practices

Board Policy 10 Committees of the Board; Administrative Procedure (AP) 500 Budget Development and Implementation; AP 501 Financial Integrity; AP 513 School Generated Funds (Accounting Procedures); AP 516 Purchasing Procedures

1.1 The intent of this Administrative Procedure is to detail the financial reporting and accounting standards adhered to by the Avon Maitland District School Board (“AMDSB’).

1.2 As prescribed by the Ontario Government, the AMDSB follows the Public Sector Accounting Standards (PSAB) except for revenue recognition for capital contributions, where the board is required to adopt Ontario Regulation 395/11 Accounting Policies and Practices. Annual financial statements are prepared and presented using this modified PSAB basis of reporting.

1.3 The fiscal year for AMDSB is September 1st to August 31st, as prescribed by the Ontario Government.

1.4 This procedure also speaks to the financial reporting expectations of departmental leaders and school principals within AMDSB.

 

1.5 The roles and responsibilities over the annual budget processes are detailed in Administrative Procedure 500 Budget Development and Implementation.

1.6 Controls governing the collection, distribution, use and reporting of School Generated Funds are detailed in Administrative Procedure 513 School Generated Funds (Accounting Procedures).

 

2.1 The Audit Committee, reporting to the Board of Trustees, is responsible for overseeing the financial accounting and reporting practices, systems of internal controls, internal and external audit functions, systems for monitoring compliance with legislative requirements and risk management processes.

2.2 The purpose, powers, duties, membership and meetings of the Audit Committee are set out in Board Policy 10 Committees of the Board and as prescribed by Ontario Regulation 361/10.

2.3 The Senior Business Official, who is defined as the Treasurer of the Board, is responsible for the budget processes and for financial reporting to the Audit Committee, Finance Committee, Board of Trustees and Ministry of Education.

2.4 The annual, audited Financial Statements will be presented to the Audit Committee for review in November of each year, for the prior year-ended on August 31st, the only exception being when directed or approved by the Ministry of Education.

2.5 Monthly expense statements presenting the financial status of AMDSB shall be presented to the Board of Trustees monthly, beginning in January of each year for the month ended December 31st. Monthly expense statements will continue to be presented at the second board meeting of the month until the Board of Trustees breaks for summer.

 

3.1 The Senior Business Official shall ensure that accounting and/or reporting systems for monitoring revenues and expenses are available to department leaders with budget responsibility and to school principals.

3.2 The department leader or school principal shall ensure maintenance of complete records of all accounts outlined in their budget and/or under their control.

3.3 All departmental and school accounts shall be subject to audit and open to the Senior Business Official or delegate at all times. Department leaders and school principals will cooperate fully during internal, external or Ministerial audits.

3.4 The Financial Services Department will provide training and guidance to those leaders or principals with budget responsibility, regarding the tracking, reporting and acceptable use of funds.

 

4.1 The following internal controls are recognized as sound financial practice. These controls will be followed by the Financial Services Department and are expected to be followed by departments and schools.

4.1.1 All receipts shall be deposited intact and shall be recorded in the accounting software system(s) in use by the Financial Services Department.
4.1.2 The preferred form of payment by AMDSB is Electronic Funds Transfer, with cheques also used. The only exception is distributions from a properly kept petty cash fund.
4.1.3 All cheques shall require the signature of two authorized signing authorities.

4.1.4 Supporting invoices, vouchers or receipts shall be obtained for all       

disbursements and shall be kept on file per AMDSB’s record retention schedule.
4.1.5 All disbursements shall be made via or recorded in the accounting software system(s) in use by the Financial Services Department.
4.1.6 Monthly bank reconciliations shall be prepared for all bank accounts, reviewed and approved by a department manager or principal. Copies of bank reconciliation paperwork are to be maintained per AMDSB’s record retention schedule.
4.1.7 All events and activities involving funds shall be recorded in the accounting software system(s) in use by the Financial Services Department. A final report (financial statement) shall be prepared for each fund showing the final disposition of any surplus/deficit.
4.1.8 Every effort will be made to ensure appropriate segregation of duties are in place, or in absence of the ability to segregate duties, compensating controls are put in place. Appropriate segregation and/or compensating controls are as defined by the Senior Business Official or delegate.

 

Updated September 2019