1011 Operations Policy Review - Finance - 30 November 2010

Review completed by:

Chicky and Don

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

2. Reflect the priorities as established by the board in the Governance Manual

Not okay

Okay

3. Comply with the requirement for a balanced budget

Not okay

Okay

4. Ensure adequate working capital

Not okay

Okay

5. Demonstrate an appropriate degree of conservatism in all estimates

Not okay

Okay

Comment/Evidence

We plan to end the year with $136,689 available funds. At 31 October we have $386,318 which is $161,239 better than predicted for this time 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

2. Violate generally accepted accounting practices or principles

Not Okay

Okay

3. Use tagged funds for purposes other than those approved

Not Okay

Okay

4. Spend more funds than have been allocated in the fiscal year

Not Okay

Okay

5. Fail to ensure all money owed to the school is collected in a timely manner

Not Okay

Okay

Comment/Evidence

The school's 2009 accounts have been audited. The auditor "found the financial control environment in place ... to be good".

6. Fail to make timely payment to staff and other creditors

Not Okay

Okay

7. Sell or purchase unauthorised property

Not Okay

Okay

8. Fail to ensure that all relevant government returns are completed on time

Not Okay

Okay

9. Fail to ensure that no one person has complete authority over the school’s financial transactions

Not Okay

Okay

10. Make any purchases or financial commitment of over $1,000 without obtaining competitive process and quality information

Not Okay

Okay

11. Make any purchases or financial commitment of over $1,000 without an adequate review of ongoing cost, value and reliability

Not Okay

Okay

Comment/Evidence

Kaikohe East continues to receive an unqualified audit report.

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

2. Allow unauthorised personnel to handle funds or school property

Not Okay

Okay

3. Subject plant and equipment to improper wear and tear or insufficient maintenance or inappropriate use

Not Okay

Okay

4. Fail to protect intellectual property, information and files from loss or significant damage or unauthorised access or duplication

Not Okay

Okay

5. Receive, process or disburse funds under controls that are insufficient to meet the auditor’s standards

Not Okay

Okay

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

Comment/Evidence

All accounts are interest bearing