The Kaikohe East Board's Financial Policies are part of the board's Operations Policy and are published on the school website.
The polices are restated here for board members' convenience:
Reflect the results sought by the school
Reflect the priorities as established by the board
Comply with the requirement for a balanced budget
Ensure adequate working capital
Demonstrate an appropriate degree of conservatism in all estimates
Incur unauthorised debt
Violate generally accepted accounting practices or principles
Use tagged funds for purposes other than those approved
Spend more funds than have been allocated in the fiscal year
Fail to ensure all money owed to the school is collected in a timely manner
Fail to make timely payment to staff and other creditors
Sell or purchase unauthorised property
Fail to ensure that all relevant government returns are completed on time
Fail to ensure that no one person has complete authority over the school’s financial transactions
Make any purchases or financial commitment of over $1,000 without obtaining competitive process and quality information
Make any purchases or financial commitment of over $1,000 without an adequate review of ongoing cost, value and reliability
Fail to insure assets
Allow unauthorised personnel to handle funds or school property
Subject plant and equipment to improper wear and tear or insufficient maintenance or inappropriate use
Fail to protect intellectual property, information and files from loss or significant damage or unauthorised access or duplication
Receive, process or disburse funds under controls that are insufficient to meet the auditor’s standards
Invest or hold operating capital in insecure accounts, or in non-interest bearing accounts except where necessary to facilitate ease in operational transactions
My interpretation of the board's requirements in this area is that the board wants to be assured that:
Its assets are protected,
Financial procedures are monitored and there is no possibility of fraud or inappropriate financial practices,
The reports the board receive fairly reflect the school's financial position and financial performance.
The board receives regular Financial Reports from Education Services that show income and expenditure against budgets and highlight any areas of concern.
The board received an unqualified audit (i.e. no major concerns) for the 2013 financial year.
The auditor's Management Letter for the 2013 year noted that.
"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."
The auditor made several recommendations to improve our financial practice:
As part of my review in preparation for this report I have reviewed the board's financial policy statements point by point (below).
Chicky Rudkin
Principal
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
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
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