Summary See complete responsesReview completed by: Don & Chicky Financial PlanningBudgeting shall not fail to reflect the school’s strategic results, risk financial jeopardy nor fail to show a generally acceptable level of foresight. Thus financial processes must: 1. Reflect the results sought by the school | | | 1 - | Not okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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2. Reflect the priorities as established by the board in the Governance Manual | | | 1 - | Not okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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3. Comply with the requirement for a balanced budget | | | 1 - | Not okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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4. Ensure adequate working capital | | | 1 - | Not okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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5. Demonstrate an appropriate degree of conservatism in all estimates | | | 1 - | Not okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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Comment/Evidence #2. Need to delete reference to the Governance Manual in the policy now that all policy is on-line. #5. Although the 2011 Budget was for a deficit $60,678, we actually ended the year with a surplus of $136,981. This was mainly because Government Grants were more than budgeted for. A deficit budget has been approved for 2012, and this will probably be commented on in the auditor's letter. However, even with the 2012 deficit budget we expect a working capital surplus of $227,000 at the end of the year. Financial ConditionThe financial viability of the organisation must be protected at all times. Therefore, the principal shall not: 1. Incur unauthorised debt | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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2. Violate generally accepted accounting practices or principles | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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3. Use tagged funds for purposes other than those approved | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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4. Spend more funds than have been allocated in the fiscal year | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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5. Fail to ensure all money owed to the school is collected in a timely manner | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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Comment/Evidence #2. As Landlord we should ensure that the rental for 22 Purdy Street is fair to the school and to the tenant. A recent rent review by the company that manages teacher housing suggests that the market rent should be $220, and recommends a Teacher adjusted rent of $165. 6. Fail to make timely payment to staff and other creditors | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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7. Sell or purchase unauthorised property | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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8. Fail to ensure that all relevant government returns are completed on time | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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9. Fail to ensure that no one person has complete authority over the school’s financial transactions | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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10. Make any purchases or financial commitment of over $1,000 without obtaining competitive process and quality information | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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11. Make any purchases or financial commitment of over $1,000 without an adequate review of ongoing cost, value and reliability | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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Comment/Evidence There have been some payroll errors over the last few months, both overpayments and underpayments. Corrections have been made in each case. Asset ManagementAssets may not be unprotected, inadequately maintained or unnecessarily risked. Accordingly, the principal may not: 1. Fail to insure assets | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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2. Allow unauthorised personnel to handle funds or school property | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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3. Subject plant and equipment to improper wear and tear or insufficient maintenance or inappropriate use | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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4. Fail to protect intellectual property, information and files from loss or significant damage or unauthorised access or duplication | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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5. Receive, process or disburse funds under controls that are insufficient to meet the auditor’s standards | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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6. Invest or hold operating capital in insecure accounts, or in non-interest bearing accounts except where necessary to facilitate ease in operational transactions | | | 1 - | Not Okay | 0 | 0% | | 2 | | 0 | 0% | | 3 | | 0 | 0% | | 4 | | 0 | 0% | | 5 - | Okay | 1 | 100% |
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Comment/Evidence #3. We may have to reconsider the cleaning contract. This may mean finding another contractor, or employing cleaners as part of the school staff. Education Services Ltd continues to provide an outstanding service that is transparent, and ensures that we comply with all requirements. |
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