1409 Operations Policy Review - Finance - 24 September 2014

Financial Policies

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: 

Financial Condition

The financial viability of the organisation must be protected at all times. Therefore, the principal shall not:

Asset Management

Assets may not be unprotected, inadequately maintained or unnecessarily risked. Accordingly, the principal may not:

Principal's Interpretation

Data to Verify that the Policy Interpretation is Being Fulfilled

 "Overall, based on our knowledge of your school and the results of our audit procedures, we again found that the financial control environment at your school to be good. The attitude towards controls and ensuring your school is being governed effectively is very positive. We were also impressed that your board appears concerned about planning and performance monitoring."

Chicky Rudkin

Principal

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

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 continue to finish the year with a strong working capital and although we have a plan for a deficeit budget for 2014 we will still finish the year with a positive working capital

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

no comment

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

no comment

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

no comment