1205 Operations Policy Review - Finance - 8 May 2012

Summary See complete responses
Review completed by:
Don & Chicky

Financial Planning

Budgeting 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
Not okay
Okay
1 -
Not okay
00%
200%
300%
400%
5 -
Okay
1100%
2. Reflect the priorities as established by the board in the Governance Manual
Not okay
Okay
1 -
Not okay
00%
200%
300%
400%
5 -
Okay
1100%
3. Comply with the requirement for a balanced budget
Not okay
Okay
1 -
Not okay
00%
200%
300%
400%
5 -
Okay
1100%
4. Ensure adequate working capital
Not okay
Okay
1 -
Not okay
00%
200%
300%
400%
5 -
Okay
1100%
5. Demonstrate an appropriate degree of conservatism in all estimates
Not okay
Okay
1 -
Not okay
00%
200%
300%
400%
5 -
Okay
1100%
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 Condition

The financial viability of the organisation must be protected at all times. Therefore, the principal shall not:
1. Incur unauthorised debt
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
2. Violate generally accepted accounting practices or principles
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
3. Use tagged funds for purposes other than those approved
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
4. Spend more funds than have been allocated in the fiscal year
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
5. Fail to ensure all money owed to the school is collected in a timely manner
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
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
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
7. Sell or purchase unauthorised property
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
8. Fail to ensure that all relevant government returns are completed on time
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
9. Fail to ensure that no one person has complete authority over the school’s financial transactions
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
10. Make any purchases or financial commitment of over $1,000 without obtaining competitive process and quality information
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
11. Make any purchases or financial commitment of over $1,000 without an adequate review of ongoing cost, value and reliability
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
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 Management

Assets may not be unprotected, inadequately maintained or unnecessarily risked. Accordingly, the principal may not:
1. Fail to insure assets
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
2. Allow unauthorised personnel to handle funds or school property
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
3. Subject plant and equipment to improper wear and tear or insufficient maintenance or inappropriate use
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
4. Fail to protect intellectual property, information and files from loss or significant damage or unauthorised access or duplication
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
5. Receive, process or disburse funds under controls that are insufficient to meet the auditor’s standards
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
6. Invest or hold operating capital in insecure accounts, or in non-interest bearing accounts except where necessary to facilitate ease in operational transactions
Not Okay
Okay
1 -
Not Okay
00%
200%
300%
400%
5 -
Okay
1100%
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.