Administrative Procedure 513: School Generated Funds - Accounting Procedures

Legal References

Related References

Preface

• Provide appropriate guidance, authority, and protection to school staff and fundraising volunteers by providing specific administrative procedures for the administering, recording and reporting of school generated funds;
• Meet the public’s expectations and validate the public’s trust regarding the stewardship of school based funds;
• Provide consistent accounting practices for schools as well as supporting those staff members involved with school generated funds; and
• Meet the Board’s requirement under Provincial regulations and the Ministry of Education Fundraising Guideline (2012) for the financial accountability of school councils involved in fundraising and for all school generated funds in general.

1.0 Definition of School Generated Funds

2.0 Sources and Uses of School Generated Funds

2.1 Objective

• • To identify and categorize the sources of school generated funds to which these procedures apply.
  • To outline generally acceptable uses of these funds.

2.2 Categories and Use of School Generated Funds

2.3 Fundraising for Capital Projects

• • • When planning and selecting capital projects which will be purchased in whole or in part by school generated funds the school must consider:
      • The need to complete a viability review that examines alignment with the school board’s overall capital priorities and planning processes, the school
        improvement plan, and Ministry of Education priorities;
      • The costs of future maintenance and repairs; and
      • Restrictions related to conflict of interest and procurement policies.
    • In order to ensure that the planning of capital projects supported by school generated funds will comply with the above requirements the school must consult
      with:
      • Financial Services regarding the appropriateness of the fundraising initiative(s);
      • Facilities Department regarding the appropriateness of the capital project and the impact to the school building/property; and
      • Senior Business Official to ensure compliance.
    • The Province provides capital funding for the construction of new schools and additions, for repairs and renovations, and for the operation and maintenance of schools. Funds raised for school purposes are to be used to complement, not replace, public funding for education. As such, capital projects supported by
      school generated funds must:
      • Be complementary to publicly funded education;
      • Not result in an increase in student capacity of a school;
      • Not impact other regulations or requirements; and
      • Not result in a significant increase in school or board operating or capital costs.

2.4 Caution

• • • Schools are the only vehicles through which funds may be raised. No person(s) shall engage in fundraising without the consent of the principal.
    • All funds must be raised for a specific purpose as communicated to the school community and noted in the annual Plan for School Generated Funds. Funds
      must be used for that intended purpose. Projects supported by school generated funds shall be reviewed annually to examine alignment with the school board’s
      strategic plan, the school improvement plan, and Ministry of Education priorities.
    • Fundraising must be compliant with:
      
      • Municipal, provincial, and federal legislation; and
      • Ministry of Education guidelines and policies such as School Food and Beverage Policy, Equity and Inclusive Education Strategy, Facility
        Partnerships Guideline, and the Broader Public Sector Procurement Directive.
    • Funds that are lost or stolen must be reported immediately to the Senior Business Official or designate immediately upon discovery. For any individuals who are
      apprehended, it is the intention of the Board to pursue the individuals for restitution of all losses incurred by the Board. Lost or stolen funds will not be
      replaced with board funds.
    • All purchases made using school generated funds must comply with board policy and procedures including Administrative Procedure 516 Purchasing Procedures.
    • Expenditures related to each of the above sources shall not exceed revenue received from that source, except where prior approval is received from the
      Principal.
    • The accounting records must track each activity separately. If the activity is of an ongoing nature (such as student activity fees), residual amounts in that category at the end of one school year must roll forward to the next year and cannot be used for another purpose. Category balances carried forward year-to-year must be kept to a minimum. At the conclusion of a specific event or activity, if the category has a remaining balance, refunds shall be issued or funds transferred to a category of a similar purpose.
    • Payments for benevolent purposes shall be made only for the benefit of students.

• • • • Unacceptable uses of school generated funds includes, but is not limited to:
        • Items that are to be purchased from the school’s allocation budget (e.g. textbooks, classroom learning materials).
        • Goods and/or services from employees, where such purchase would contravene the Education Act. A fundraising activity must not result in any
          staff or volunteer benefiting materially or financially from the activity.
        • Administrative expenditures, including mileage reimbursement to employees, which must be reimbursed through the school’s allocation budget.
        • Investments other than those permitted by the Board and Regulation 471/97 of the Education Act.
        • Professional development including support for teacher attendance at professional development activities.
        • Support for partisan political activity, groups or candidates.
        • Facility renewal, maintenance, or upgrades funded through provincial grants (e.g. structural repairs, sanitation, emergency repairs, flooring, etc.).
        • Infrastructure improvements that increase the student capacity of a school or that are funded by provincial grants (e.g. classrooms, additions, gyms,
          labs, etc.).

3.0 Accountability – Roles and Responsibilities

3.1 Objective

• • • To clarify the roles and responsibilities of the individuals involved in school generated funds, and to assist with the day-to-day operation, control, and
      management of such funds.

3.2 Roles and Responsibilities

1. 1. Senior Business Official or Designate
      • Establish procedures for school generated funds.
      • Ensure that schools have suitable accounting systems and/or technology available for the administering of school generated funds.
   2. Superintendent of Education
      • Reinforce to Principals the need to adhere to Board policy and procedures relating to school generated funds.
      • Verify that schools are complying with the reporting requirements as indicated in the Management and Reporting section below. Follow up on school compliance reports prepared by Financial Services that indicate issues with respect to the administration of school generated funds.
      • Report to the Senior Business Official or designate:
        • if any funds are lost or stolen;
        • any noted misuse of funds; or
        • any noted failure to follow any policy or procedures.
   3. Financial Services
      • Provide support and training to staff/volunteers on the appropriate application of the procedures and software.
      • Completion and review of annual school generated fund financial statement reports. Follow up with schools and copy Superintendent of Education with any concerns. Maintain a central file of financial reports as indicated in the Management and Reporting section below.
      • Conduct random compliance reviews of school generated fund transactions processed in schools including disbursements, deposits, analysis of cash collections and adherence to policies. Upon completion, a compliance report will be distributed to the school principal, and copied to the school superintendent and the Senior Business Official. Follow up will occur for all recommendations.
      • Keep schools informed concerning changes in applicable legislation.
   4. Principal
      • Ensure that the procedures for school generated funds are implemented in accordance with the Board Administrative Procedure.
      • Ensure that processes are in place to adequately control the funds within the school, including physical security over cash and records including but not limited to changing safe/vault combinations, keys and passwords if applicable when staff involved in the administration of school generated funds change.
      • Notify the following individuals immediately if funds are lost or stolen:
        • Superintendent of Education
        • Senior Business Official
        • Superintendent of Human Resources
        • Finance Manager – School Services
      • Communicate responsibilities for receipts, disbursements, banking and record keeping with the school secretary and other staff members.
      • Ensure that the school council chair is aware of and understands their role and responsibilities with respect to school generated funds.
      • Act as one of the approved signing officers on the school’s bank account(s).
      • Ensure that no staff members or members of the community are collecting and managing funds in their own bank account(s) or any other account(s).
      • Manage school generated funds including but not limited to:
        • Maintenance of a list of classes and clubs noting the responsible person and signing authorities.
        • Review of financial records and reports on an ongoing basis (initial and date to indicate review) including but not limited to: annual financial statements and reports, monthly bank reconciliations, class and club balances/activity, and bank account balances.
        • Distribution of the financial reports as outlined in Section 4.0 Management and Reporting.
        • Question and determine how to address any shortages or overages associated with the various activities.
        • Ensure that funds received are disbursed as per the intent of the funds raised/collected.
        • Review bank account balance(s) periodically to determine need to invest. Contact Financial Services if investing and provide them with a copy of all certificates.
        • Determine when a second bank account is required either by legislation or by other circumstance and contact Financial Services for approval.
        • Ensure that the school or any individual associated with the school does not enter into contracts in the name of the school or the Board.
        • Make available to the school council, on a regular basis, information regarding their receipts and disbursements recorded in the school’s accounting records.
   5. Teachers and Other Staff Members
      • Ensure details of financial activity relating to their classes or clubs are recorded accurately through review of monthly reports (as outlined in Section 4.0 – Management and Reporting).
      • Ensure that funds received are disbursed as per the intent of the funds raised/collected.
      • Ensure that payments do not exceed amount collected by the class/club. Advise the principal of any discrepancy.
      • Provide guidance to students to assist and train them.
      • Receipt of funds:
        • Provide the school secretary with a completed Event/Item Request Form (see Form 513G) prior to commencing collection ensuring that items are available through School Cash Online for online payment.
        • Collect cash/cheque(s) from students or other sources as applicable.
        • Count cash/cheque(s) collected. Complete and seal the Deposit Envelope (as referred to in Section 6.0 – Receipt of Funds) including a list of student names and method of payment (cash or cheque).
        • Deliver funds collected to the school secretary daily in accordance with the collections over a period of time process in Section 6.2 - Receipts (Cash and Cheques).
        • Record deposit in the Receipt Log upon submission of the Deposit Envelope.
      • Disbursement of funds:
        • Complete Voucher Slip requesting payment/reimbursement and ensure that the original itemized receipt/ invoice is attached. Sign or initial all transactions brought forward by students assisting.
        • Deliver to the School Secretary for payment in a timely manner.
   6. School Secretary
      • Implement the procedures for school generated funds as directed by the principal.
      • Advise principal of deviations from the procedures outlined.
      • Participate in Board sponsored training relating to school generated funds.
      • Provide assistance during the internal and/or external audit process.
      • Liaise with teachers and other staff members.
      • Record Keeping:
        • Maintain appropriate supporting and financial documentation.
        • Maintain an efficient filing system for accounting records (as outlined in Section 4.4 – Records Retention).
        • Record transactions on behalf of staff/volunteers/parents on a regular basis ensuring details of all transactions are properly recorded.
        • Create and attach School Cash Online items for all collections in the School Cash Catalogue.
        • Complete Bank Reconciliations monthly.
        • Print monthly transaction reports and distribute to those responsible for classes or clubs.
        • Perform year-end procedures as directed by Financial Services.
      • Receipt of funds:
        • Count funds received and verify amounts.
        • Where feasible record cash/cheque receipts in the School Cash Register (as outlined in Section 6.6 – School Cash Register).
        • Prepare bank deposits and deposit funds at the bank on a regular basis.
        • Note date deposited in Receipt Log.
        • Prepare and distribute online payment/order reports from the School Cash Catalogue.
        • Disbursement of funds:
          • Receive Voucher Slip requests for payment and ensure each is supported by a receipt (as outlined in Section 7 – Disbursement of Funds).
          • Act as one of the approved signing officers on the school bank account(s).
          • Provide all Voucher Slips and supporting documentation to the principal for approval prior to cheque generation.
   7. School Council Chair
      • Communicate with the principal to ensure that the sources and uses of school generated funds comply with Board policies and administrative procedures.
      • Communicate with the principal to ensure that processes are in place to adequately control funds.
      • Ensure that fundraising activities involving the students and/or the school council comply with Board policies and administrative procedures, and that no direct or indirect benefit is derived from a member of the school council.
      • Ensure that school council members are aware that where conflicts of interest exist they are to be disclosed.
      • Ensure that school council is aware that all funds shall be included as part of the school bank account and that school councils will not maintain a separate bank account.
      • Ensure that all school council collections are available for online payment through School Cash Online.
      • Provide the school secretary with a completed Event/Item Request Form (see Form 513G) prior to any school council fundraising initiative.
      • The school council chair shall ensure that members understand their responsibilities as outlined in this administrative procedure communicating with school council to ensure that the receipt, disbursement, and recording of all transactions under the responsibility of the school council follows the same procedures as those for in school transactions as noted below.
      • Ensure that school council members receive a summary of the monthly transaction detail as provided by the school council treasurer.
      • Attend Board sponsored training relating to school generated funds.
   8. School Council Treasurer
      • It is recommended that the school council treasurer position be for a term not to exceed two years.
      • Function as the conduit for all things financial between the school office and the school council.
      • Review monthly school council financial reports in detail. Work with school secretary on:
        • any clarifications and questions;
        • status of balances; or
        • queries on the business case/value of a program or fundraising initiative.
      • Communicate with principal regarding questions or concerns related to school council funds record keeping.
      • Work with principal to draft budgets for annual Plan for School Generated Funds. Present draft budgets related to school council initiatives for inclusion in the annual Plan for School Generated Funds to school council for approval. Present summary (rolled-up) of school council financial reports to school council. Respond to questions of school council and/or school parents with respect to school council fundraising activities. Attend Board sponsored training relating to school generated funds.

4.0 Management and Reporting

4.1 Objective

• • • To provide a guidance with respect to:
      
      • Accounting records
      • Documentation
      • Records retention
    • To identify the minimum information to be recorded while:
      
      • Safeguarding the funds;
      • Protecting those responsible for collecting and handling the funds; and
      • Maintaining a thorough set of records regarding the receipt and disbursement of funds.
    • To provide a format for financial reporting including:
      
      • The reports that are required and the fiscal period that will be covered;
      • Who will be responsible for preparing the reports;
      • What will be included in the reports; and
      • When the reports will be distributed and to whom they will be distributed.

4.2 Accounting Records and Documentation

1. 1. Description of Classes and Clubs
      • The category name shall be reflective of the purpose of the funding received/expended.
   2. Revenue and Expenditure Records
      • All revenues and expenditures must be recorded promptly.
      • Schools must use the functionality of School Cash Online for all collections providing parents/guardians with the option to pay online.
      • It is recommended that where possible the School Cash Register be used to track cash/cheque payments (as outlined in Section - 6.6 School Cash Register).
      • For cash/cheque received the following information is required and must be documented (as outlined in Section - 6.0 Receipt of Funds):
        • date received
        • amount collected
        • purpose of funds and category name and signature of person submitting cash/cheque for deposit date deposited
        • deposit number
      • For payments made, the following information is required (as outlined in Section 7.0 – Disbursement of Funds):
        • date cheque issued
        • amount of cheque
        • name of payee
        • reason issued
        • category and class description
        • approved by
        • approval date
      • Note: All funds must be deposited intact. Expenditures cannot be paid from cash collected. The total funds must be deposited to the bank and an electronic cheque written to pay for the expenditure.
   3. CAUTION: To ensure appropriate controls are in place, it is critical to keep accurate, up-to-date records regarding the receipt and disbursement of funds. This will ensure that the money is handled appropriately, that staff are protected, and that written records exist which can be relied on for review/audit purposes. The controls are only as good as their enforcement. It is important that school administrators support and follow the established practices.

4.3 Financial Reporting

• • • • • All financial reports shall be prepared under the direction of the principal.
        • The reports shall encompass all money generated in the name of or under the auspices of the school regardless of its source or use.
        • The fiscal year for the reports shall be August 1 to July 31.
        • The reports shall be reviewed by the principal, signed and dated, and shall be kept with the records for school generated funds for seven years.

• • • • • The purpose for which the net proceeds will be used;
        • The cost of the item/service to be purchased with net fundraising proceeds;
        • The source of revenue/funding;
        • The time period during which funds will be generated;
        • The person responsible for the activity; and
        • The anticipated net proceeds.

• • • • • Future Maintenance and repair costs need to be considered when developing the Plan for School Generated Funds.
        • The number and extent of fundraising activities shall be limited to those required to raise the funds for those items included in the Plan.
        • The impact on classroom time for staff and students, and administrative time for principals and support staff shall be limited.
        • Fundraising initiatives that involve the sale of food products must adhere to Administrative Procedure 218 Food, Beverages and Nutrition.
          Statement of Student Funds Balance: The Statement of Student Funds Balance (see Appendix A) provides a summary of school generated fund activity for the fiscal year and is used to facilitate the year-end audit process.

• • • • • • The opening school generated fund balance at the beginning of the year (August 1). The total opening balance must agree to the prior year closing
            balance reported.
          • The receipt and allocation of funds. The total allocations must agree to the revenue total per the Summary of Closing Balances for the School Year
            report for the year-ended July 31.
          • The disbursement of funds. The total disbursements should agree to the expenses total per the Summary of Closing Balances for the School Year
            report for the year-ended July 31.
          • The balance in the fund at the end of the year (July 31). The total ending balance will agree to the total per the Summary of Closing Balances for the
            School Year report for the year-ended July 31.
          • Board funds and petty cash. The total board funds and petty cash must agree to the closing balance per the Summary of Closing Balances for the School Year – Not Reported report for the year-ended July 31.
          • Outstanding or uncleared transactions including outstanding cheques and deposits. These balances should agree to those reported in the July Bank
            Reconciliation.
          • The cash balance at the end of the year. The total of the ending balance will agree to the closing balance in the bank statement at July 31.

• • • • • • Ensure that the ending bank statement balance agrees with the amount reflected in the Bank Reconciliation.
          • Ensure that the closing balance as per the school records (trial balance) agrees with the Bank Reconciliation.
          • Review all adjustments (outstanding deposits, outstanding cheques, miscellaneous charges) for legitimacy.
          • Ensure that NSF cheques are taken into consideration when the Bank Reconciliation is completed.
          • Review all category balance transfers and transaction modifications.
          • Sign and date all reports as required.

• • • • • • Prepared monthly by an individual other than the person who physically replenishes the ABM;
          • Reviewed by the principal; and
          • Filed at the school.

4.4 Records Retention

• • • monthly bank statements/passbooks;
    • deposit books;
    • month-end bank reconciliations;
    • cancelled cheques (i.e. cheques which have been cashed by the payee and returned by the bank with the bank statement);
    • void cheques (i.e. those cheques which were erroneously completed and/or never issued);
    • deposit slips, deposit envelopes, receipt logs, voucher slips (with invoices, receipts or other supporting documentation attached);
    • accounting reports (i.e. the month-end general ledger and/or the general ledger by account reports); and
    • other reports as noted above.

5.0 Banking

5.1 Objective

5.2 Bank Account

5.3 Investments

6.0 Receipt of Funds

6.1 Objective

• • • To ensure the security of incoming funds.
    • To protect those responsible for handling the funds received.
    • To maintain accurate records on behalf of the school, board, and Ministry of Education.

6.2 Receipts (Cash and Cheques)

• • • The staff member, student or parent who submits a Deposit Envelope shall record the date, their name, the class/club, and the amount of the deposit in the
      respective Receipt Log columns.
    • The office staff member who accepts the Deposit Envelope shall initial the Receipt Log to indicate that the Envelope was received by the school office.
    • The Envelope shall then be secured, unopened, in a designated locked safe that has limited access and is locked at all times.

6.3 Post-Dated Cheques

• • • Remove the post-dated cheque(s) from the bank deposit and ensure that the Total Funds on the Deposit Envelope and the Receipt Log are updated to
      exclude said cheque(s).
    • Prepare a new Deposit Envelope for each uniquely dated post-dated cheque. The office staff shall complete the details on the new envelope; “Source and
      Purpose of Funds” shall explain that the contents are “post-dated cheques relating to Deposit Envelope X”.
    • Write the date that the cheques can be deposited across the top of the new Deposit Envelope. The new envelope must be recorded in the Receipt Log and
      then placed in a designated locked vault/safe which has limited access and that is locked at all times until the scheduled date of deposit.

6.4 Cheques Pertaining to Multiple Classes or Clubs

6.5 Preparing Bank Deposits

• • • The contents of each Deposit Envelope must be verified by the school secretary (or another staff member in the event that the envelope was originally completed by the school secretary) and the bottom section of the envelope completed. If the contents differ from the amount noted on the envelope by the individual depositing the funds, the individual verifying the contents must ensure that the balance is updated on the Deposit Envelope and the Receipt Log to reflect the actual amount received. The individual who submitted the Deposit Envelope shall be notified of any difference immediately. It is recommended that the individual who submitted the Deposit Envelope initial the corrected Deposit Envelope and Receipt Log entries.
    • The back of all cheques must be marked “For Deposit Only”
    • The bank deposit must be detailed through the use of the One Page Bank Deposit and Deposit Statement forms within School Cash Accounting. An Adding Machine Tape of the cheques deposited from School Cash Accounting shall be attached to the retained copy of the One Page Bank Deposit and the copy sent to the bank.
    • The actual date of the deposit to the bank and the School Cash Accounting deposit number must be noted in the corresponding columns on the Receipt Log. The school secretary shall ensure that all Envelopes recorded in the Receipt Log, but not deposited, have been included in the bank deposit (with the exception of post-dated cheques that have been logged by office staff for future deposit). The bank deposit total shall be balanced to the total amount of the Deposit Envelopes that support the deposit as noted in the Receipt Log. The Envelopes must be filed with the school copy of the above School Cash Accounting documents.

6.6 School Cash Register

• • • The school secretary shall verify the contents of each Deposit Envelope and complete the bottom section of the Envelope. Refer to Section 6.5 Preparing
      Bank Deposits for guidance on how to handle discrepancies noted upon verification.
    • Using the class/group list provided, the school secretary will itemize the cash and cheque collected in the School Cash Register. The printed Close Out/Group
      Collection report(s) shall be printed and filed with the One Page Bank Deposit.
    • The back of all cheques must be marked “For Deposit Only”.
    • The School Cash Register will detail the deposit upon close out. All deposits must be detailed through the use of the One Page Bank Deposit and Deposit
      Statement forms within School Cash Accounting. An Adding Machine Tape of the cash and cheques deposited from School Cash Accounting shall be attached to the retained copy of the One Page Bank Deposit and the copy sent to the bank.
    • The actual date of the deposit to the bank (must be the same as the verification date and the date of entry in the School Cash Register) and the School Cash
      Accounting deposit number must be noted in the Receipt Log. The school secretary shall ensure that all Envelopes recorded in the Receipt Log, but not
      deposited, have been included in the bank deposit (with the exception of postdated cheques that have been logged by office staff for future deposit). The bank deposit total shall be balanced to the total amount of the Deposit Envelopes that support the deposit as noted in the Receipt Log. The Envelopes must be filed with the school copy of the above School Cash Accounting documents.

• • • • If there is no order form, the school secretary shall create a list as funds are received noting the student’s name, homeroom, amount collected, and payment
        method (cash or cheque).
      • As cash and cheque payments are received the school secretary shall place the funds and order forms (if applicable) in a collection envelope. The collection
        envelope must be secured in a designated locked and safe location (e.g. school safe/vault) that has limited access and which is locked at all times.
      • Using the student list or order forms collected, the school secretary will itemize the cash and cheque collected in the School Cash Register. The printed Close Out/Group Collection report(s) shall be printed and filed with the One Page Bank Deposit.
      • The school secretary will create a Deposit Envelope for each deposit form created in School Cash Accounting and log the Envelope in the Receipt Log.
      • A staff member, other than the school secretary, must initial the Receipt Log to indicate that the envelope was received by the school office.
      • A staff member other than the school secretary must verify the contents of each Deposit Envelope and complete the bottom section of the Envelope. Refer to Section 6.5 Preparing Bank Deposits for guidance on how to handle discrepancies noted upon verification.
      • The back of all cheques must be marked “For Deposit Only”.
      • The School Cash Register will automatically detail the deposit upon close out. All deposits must be detailed through the use of the One Page Bank Deposit
        and Deposit Statement forms within School Cash Accounting. An Adding Machine Tape of the cash and cheques deposited from School Cash Accounting
        shall be attached to the retained copy of the One Page Bank Deposit and the copy sent to the bank.
      • The actual date of the deposit to the bank and the School Cash Accounting deposit number must be noted in the Receipt Log. Note that the deposit/verification date may differ from ledger date if close outs are completed daily. Daily close outs are recommended. All such Deposit Envelopes must be verified and physically deposited by the end of the week of entry unless significant funds in which case deposits of such funds should be more frequent.
        The school secretary shall ensure that all Envelopes recorded in the Receipt Log, but not deposited, have been included in the bank deposit (with the
        exception of post-dated cheques that have been logged by office staff for future deposit). The bank deposit shall be balanced to the total amount of the Deposit Envelopes that support the deposit as noted in the Receipt Log. The Envelopes must be filed with the school copy of the above School Cash Accounting documents.

6.7 Deposits to the Bank

6.8 Receipt of Funds from Another School

6.9 Night Deposits

• • • The staff/school council member responsible for the event shall prepare the Deposit Envelope and a second teacher/school council member shall verify and
      initial.
    • A Bank Deposit Slip will be prepared using a multi-part bank deposit form: two  copies along with the proceeds are placed in the deposit bag and taken to the
      bank.
    • The next school day the staff/school council member will record the details of the Deposit Envelope in the Receipt Log and give the Envelope and the third
      copy of the Bank Deposit Slip to the school secretary.

6.10 NSF Returns

6.11 School Cash Online Rejected Payments

7.0 Disbursement of Funds

7.1 Objective

• • • To ensure that funds are spent for the designated and allowable purposes as communicated in the annual Plan for School Generated Funds.
    • To protect those responsible for the handling of disbursements.
    • To maintain accurate records.

7.2 Cheque Requests

• • • Payments cannot be made from company statements, debit/credit receipts or credit card statements (original itemized invoices/receipts are required).
    • Cheques made payable to cash or payments in advance to employees are not acceptable.
    • Where floats are required, the cheque shall be issued in the name of the bank account, and returned and reconciled in a timely manner.
    • Pre-signing of cheques and signature stamps are not acceptable. Cheque stubs and supporting documentation should be attached to the Voucher Slip and the Cheque Statement as produced by School Cash Accounting. Using the number control feature, all cheques must be accounted for. All disbursements shall be made by electronic cheque. Unused cheques must be stored in a designated, secure location that is locked at all times in order to prevent loss or theft.

7.3 Voided, Mutilated or Stale-dated Cheques

7.4 Replacement of Cheques

7.5 Refunding Amounts Collected

• • • If the arrangements for the activity are under contract to a commercial organization (e.g. travel agency), the terms and conditions of the contract will
      apply to the school, the participants, and their parent(s)/guardian(s).
    • If the arrangements for the activity are organized by the school and advance payment or deposit is required to be made by a student or parent/guardian toward the individual student’s projected personal cost of participation, an amount will be refunded according to the following criteria:
      
      • The refundable portion will be calculated taking into account individual fundraising profits, non-refundable deposits, cancellation fees, and other
        non-recoverable expenses.
      • Under no circumstances shall profits from a fundraiser be returned to a parent/guardian. All fundraising profits must remain with the school and be used for the intended initiative. Only those deposits paid by the parent/guardian may be refunded.
      • All refunds will be by electronic cheque or through the School Cash Catalogue (online payments). All requests for refunds (online or cheque) shall be submitted to the school secretary on a Voucher Slip. Documentation supporting the original amount received and deposited, the amount to be refunded, and the reason for refund must be attached to the Voucher Slip. Authorization by the principal is to be received before the cheque is generated or refunds are processed online through the School Cash Catalogue.

7.6 Automated Banking Machines (if applicable)

8.0 Lotteries and Games of Chance

8.1 Objective

• • • To provide information for schools and school councils so that they can readily comply with the rules and regulations of the Alcohol and Gaming Commission as they relate to lotteries and games of chance in which schools and school councils may be involved.

8.2 General

• • • bingo events with prize boards of up to $5,500;
    • media bingo events with prizes up to $5,500;
    • break open tickets for local organizations;
    • raffle lotteries for total prizes of $50,000 and under; and
    • bazaar lotteries that include wheels of fortune with a maximum bet of $2.00, raffles not exceeding $500, and bingo events up to $500.

8.3 Application Process

8.4 Banking

8.5 Reporting

8.6 Audit

9.0 School Council

9.1 Objective

• • • To clarify ownership of school council funds.
    • To clarify banking procedures.
    • To clarify financial reporting requirements.
    • To clarify record retention.

9.2 Ownership of School Council Funds

9.3 Banking Procedures

9.4 Financial Reporting Requirements

• • • Administrative Procedure 113: School Councils and O. Reg. 612, Section 24 states “every school council shall annually submit a written report on its activities
      to the principal of the school and to the Board”. It further states, “if the school council engages in fundraising activities, the annual report shall include a report
      on those activities”. This annual report should be a summary of the monthly reports received by the council from the school for the period ending July 31.
    • O. Reg. 612, Section 16 states “a school council shall keep minutes of its meetings and records of all of its financial transactions. The minutes and records
      shall be available at the school for examination without charge by any member of the public.” As a matter of consistency, all records are to be retained on school premises for a period of seven (7) years.

10.0 Home and School Associations

11.0 School Financial Review

11.1 Objective

• • • To provide a description of a financial review of school generated funds.

• • • • • Review and assessment of the adequacy and application of financial and other operating controls.
        • Review of compliance with Board policies and administrative procedures as they relate to school generated funds.
        • Evaluation of the timeliness, accuracy, and usefulness of the school’s records and reports.
        • Ensuring that school generated funds are properly accounted for and safeguarded from loss.
        • Commenting on the extent to which funds raised are used for the purpose stated prior to the funds being raised

• • • • A meeting with the school principal and school secretary.
      • Gathering of relevant records from the school, banking institutions, and school council as necessary.
      • Review of records and detailed testing of sample transactions and reports.
      • Preparation of a draft report and meeting with the principal to discuss and review findings. This meeting will give the auditor the opportunity to informally
        discuss findings and to give the principal the opportunity to identify any errors or omissions in the draft report.
      • Preparation of the final report incorporating any comments/responses from the principal.

12.0 Changes in Principal and School Secretary

12.1 Objective

• • • To ensure that when the principal and/or school secretary changes, basic financial information is transferred to the new principal and/or school secretary.

12.2 General