Asset and Financial Management Policy

Reviewed November 2011

Pukeokahu School Board of Trustees Asset and Financial Management Policy NAG 4
Contents:
Asset and Financial Management Policy: Procedure 4.01 - Financial Management Procedure 4.02 - Property and Asset Management Procedure 4.03 - Credit Card Use and Management Procedure 4.04 - Theft and Fraud Prevention 2 4 6 7 8

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Asset and Financial Management Policy

Reviewed November 2011

Asset and Financial Management Policy:

A. Purpose

This policy documents how the Pukeokahu School Board of Trustees will ensure that it meets its obligations under National Administration Goal Four to: i. ii. iii. allocate funds to reect the schools priorities as stated in the charter; ' monitor and control school expenditure, and ensure that annual accounts are prepared and audited as required by the Public Finance Act 1989 and the Education Act 1989; comply with the negotiated conditions of any current asset management agreement, and implement a maintenance programme to ensure that the schools buildings and facilities provide a safe, healthy learning ' environment for students. The Board of Trustees will develop and implement the following procedures: 1. Financial Management

The schools nancial management procedures are designed to ensure that the Board: ' i. manages the funds responsibly in the interests of our pupils ii. iii. iv. 2. complies with GST regulations meets audit office requirements protects the physical and nancial resources of the school. Property and Asset Management

The Board aims to: i. provide an environment that supports students learning. ii. iii. iv. v. vi. 3. provide an excellent working environment for staff. maintain the school grounds, buildings, facilities and equipment in a clean, safe and hygienic condition ensure the school is attractive and welcoming to families and the community, and contributes to the schools positive image in the community. maintain the school in a way that makes good use of school funds. maintain the school house to a modern, healthy and attractive standard. Credit Card Use

The Board agrees that it has a responsibility to ensure that credit card expenditure incurred by the School must clearly be linked to the business of the School. The Board has agreed on the fundamental principles of this Policy, and has delegated responsibility for the implementation and monitoring of this Policy to the Principal. 4. Fraud and Theft Prevention

The Board accepts that it has a responsibility to protect the physical and nancial resources of the School. The Board has agreed that through its chief executive, the Principal, the School has a responsibility to prevent and detect theft and fraudulent actions by persons who are employed or contracted by the School or who are service recipients of the School. The Board accepts that any investigation into any theft or fraudulent actions will be conducted in a manner that conforms to the principles of natural justice and is procedurally just and fair.

This policy was formally adopted by the Pukeokahu School Board of Trustees on

01/01/2012

___________________________________ Date of Adoption Signed:

___________________________________ Chairperson, Board of Trustees 2 of 9

Asset and Financial Management Policy

Reviewed November 2011

01/01/2014

___________________________________ Date to be Reviewed

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Asset and Financial Management Policy

Reviewed November 2011

Procedure 4.01 - Financial Management

A. Purpose

The schools nancial management procedures are designed to ensure that the Board: ' i. ii. iii. iv. B. manages the funds responsibly in the interests of our pupils complies with GST regulations meets audit office requirements protects the physical and nancial resources of the school. Procedure 1. The Yearly Budget a. b. c. 2. The principal and the treasurer will prepare a budget in October each year to meet the school needs for the following year The draft budget will be presented at the Boards November meeting. The principal will present any proposal for variation from the approved budget in writing to the Board for their approval prior to committing any school funds.

Authority For Expenditure The Board authorises the principal to: a. expend the Boards funds within budget limits. ' b. have discretionary purchase approval for funds up to $500.00. Signatories to the Schools Bank Accounts The signatories to the schools bank accounts will be any two of: a. The Principal b. c. The Board Chairperson The Board Treasurer

3.

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Principals Responsibilities: The Principal : a. responsibility to make the best possible use of the available funds in the interests of the pupils and the school. b. c. d. e. f. g. h. delegated authority to purchase goods and services for their section of the school within the limits of the budget. responsibility to adhere to the schools nancial management procedures, bank money regularly and mark ' incoming cheques Not Transferable. responsibility to check monthly nancial reports check that all incoming accounts are correct and coded before handing to the Treasurer. Approval for payment must be evidenced by the Treasurer and the Chair. check SUE reports fortnightly report any donations to the BOT enter incoming money into the bank deposit schedule book with details of who has paid, reason and receipt number.

5.

i. selling of large asset item require BOT approval. Placing Orders Orders are to be recorded in the school order book. Each order must include details of: a. the order date b. c. d. the suppliers name ' Summary of goods to be ordered copy must be kept in then Principals office of all orders.

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Receipt Of Goods When goods arrive at the school: The Principal: a. conrms the correct supply of the goods against the order

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b. conrms the goods match the packing slip and invoice. Processing Of Accounts For Payment The Principal a. b. c. Checks the invoice, signs and codes them By the end of the third week of each month prepares payment of all invoices received by the end of the previous month and hands the invoices to the treasurer. Annual review of xed asset register and depreciation schedule 4 of 9

Asset and Financial Management Policy The Treasurer a. b. c. d. 8.

Reviewed November 2011

Processes Creditors and Payment schedules Ensure that prior to sending the creditors and payment schedules to Education Services Ltd. that the payments in which the school is claiming GST are supported by a GST invoice. Present the nancial reports to the BOT at monthly meetings. Assist with annual audit

Payment Of Accounts Payment: a. It is preferred that all payments, within reason, are to be made through Education Services Ltd. b. c. The principal and chairperson/ treasurer or chairperson to sign any cheques. Treasurer arranges payments of invoices through Education Services.

9.

Account Reconciliation And Reporting a. Reconciliation of the bank account: The treasurer together reconciles the transaction list and the bank statement then prints off the reconciliation report and monthly report to the Board. Monthly Reporting a. When the accounts are reconciled the treasurer prints off the monthly income and expenditure reports and the b. c. d. a. b. ledger reports. The invoices and accounting documentation are led by the treasurer. The monthly report is presented to the BOT. All nancial records are to be freely available to all trustees and all staff. The Boards annual reports will be prepared in compliance with the Ministry of Education requirements and with the assistance of the schools accounting service. The draft report for the previous year will be presented to the Boards April meeting and forwarded to the Ministry by the required date.

Annual Reporting

10. Cash Management Cash handling a. All monies received by the school will be banked in the school bank account. No payments will be made directly from cash received. Receipt book and deposit forms must be used for all incoming money and cheques. This procedure was formally adopted by the Pukeokahu School Board of Trustees on

01/01/2012

___________________________________ Date of Adoption Signed:

___________________________________ Chairperson, Board of Trustees

01/01/2014

___________________________________ Date to be Reviewed

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Asset and Financial Management Policy

Reviewed November 2011

Procedure 4.02 - Property and Asset Management

A. Purpose

The Board aims to: i. ii. iii. iv. v. vi. B. provide an environment that supports students learning provide an excellent working environment for staff maintain the school grounds, buildings, facilities and equipment in a clean, safe and hygienic condition ensure the school is attractive and welcoming to families and the community, and contributes to the schools positive image in the community maintain the school in a way that makes good use of school funds maintain the school house to a modern, healthy and attractive standard. Procedures 1. Health and Safety Committee a. b. 2. The schools Health and Safety Committee plays a key role in monitoring safety in the schools facilities. All Health and Safety should be brought up during the monthly BOT Meetings where a delegated Board Member

will rectify any issues. Property planning a. b. The 10 year maintenance and 5 year property plan programme will be managed in keeping with the Ministry of Educations requirements. The annual budget will include provision for property maintenance and development

3.

Safety and maintenance inspections a. The Principal and Property Manager will conduct regular checks of fencing, buildings, pool and grounds for b. maintenance and safety purposes and record any necessary actions. Monthly Safety and Maintenance reports will be recorded by the Principal. The Principal will keep an Asset Register recording all assets in keeping with Ministry of education guidelines. All furniture and equipment over the value of $300.00 will be recorded in the register. The budget will include provision for asset replacement. The principal can authorise the use of school equipment and resources away from the school site

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Asset management a. b. c.

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Property works in the school grounds a. All work involving regulated services will be carried out by qualied trades people b. Trades people working on the school site will where appropriate comply with the schools Occupational Safety and Health Procedures and the schools Police Vetting Procedures School house a. School house is checked by the Board of Trustees annually to check that it is being maintained and to assess where any improvements may be made.

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This procedure was formally adopted by the Pukeokahu School Board of Trustees on

01/01/2012

___________________________________ Date of Adoption Signed:

___________________________________ Chairperson, Board of Trustees

01/01/2014

___________________________________ Date to be Reviewed

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Asset and Financial Management Policy

Reviewed November 2011

Procedure 4.03 - Credit Card Use and Management

A. Purpose

The Board agrees that it has a responsibility to ensure that credit card expenditure incurred by the School must clearly be linked to the business of the School. The Board has agreed on the fundamental principles of this Policy, and has delegated responsibility for the implementation and monitoring of this Policy to the Principal. B. Procedure 1. Process for Issue of Credit Cards a. b. c. d. 2. Credit cards should only be issued to staff members after being authorised by the Board. A register of cardholders should be maintained. The limits set for credit card use should not exceed the overall nancial delegation of the cardholder. Any variations require Board approval. Prior to the card being issued, the recipient must be given a copy of this policy and be required to sign it off to

signify that they have read and understood it. Procedures to be Followed when Using the Card a. b. The credit card is not to be used for any personal expenditure. The credit card will only be used for: i. ii. c. payment of actual and reasonable travel, accommodation and meal expenses incurred on School business; or purchase of goods where prior authorisation from the Board is given.

All expenditure charged to the credit card should be supported by: i. A detailed invoice or receipt to conrm that the expenses are properly incurred on School business ii. iii. For expenditure incurred in New Zealand of value greater than $50 (including GST) there should also be a GST invoice to support the GST input credit The credit card statement should be certied by the cardholder as evidence of the validity of expenditure.

3. 4. 5. 6. 7.

All purchases should be accounted for within 5 working days of receiving a credit card statement. Cash advances are not permitted except in an emergency. Where cash advances are taken, the cardholder must provide a full reconciliation, with receipts wherever possible, of how the cash was used. Any unspent monies must be returned to the School. Discretionary Benets: Any benets of the credit card such as a membership awards programme are only to be used for the benet of the School. They should not be redeemed for personal use. Cardholder Responsibilities a. b. c. d. e. The cardholder should never allow another person to use the card. The cardholder must protect the pin number of the card. The cardholder must only purchase within the credit limit applicable to the card. The cardholder must notify the credit card company and the school immediately if the card is lost or stolen. The cardholder must return the credit card to the School upon ceasing employment there or at any time upon request by the Board.

This procedure was formally adopted by the Pukeokahu School Board of Trustees on

01/01/2012

___________________________________ Date of Adoption Signed:

___________________________________ Chairperson, Board of Trustees

01/01/2014

___________________________________ Date to be Reviewed 7 of 9

Asset and Financial Management Policy

Reviewed November 2011

Procedure 4.04 - Theft and Fraud Prevention

A. Purpose

The Board accepts that it has a responsibility to protect the physical and nancial resources of the School. The Board has agreed that through its chief executive, the Principal, the School has a responsibility to prevent and detect theft and fraudulent actions by persons who are employed or contracted by the School or who are service recipients of the School. The Board accepts that any investigation into any theft or fraudulent actions will be conducted in a manner that conforms to the principles of natural justice and is procedurally just and fair. B. Procedure

The Board, therefore, requires the Principal to establish systems and procedures to guard against the actions of theft and fraud. The Principal is to report such actions to the Board Chairperson as prescribed in the procedures set out below. General As preventative measures against theft and fraud the Board requires the Principal to ensure that: a. b. The Schools physical resources are kept secure and accounted for. The Schools nancial systems are designed to prevent and detect the occurrence of fraud. All such systems must meet the requirements and standards as set out in the Crown Entities Act 2004 and of generally accepted accounting practice promulgated and supported by the Institute of Chartered Accountants of New Zealand. c. Staff members who are formally delegated responsibility for the custody of physical and nancial resources by the Principal are proven competent to carry out such responsibilities and that such persons are held accountable for the proper execution of their responsibilities. d. All staff members are aware of their responsibility to immediately inform the Principal should they suspect or become aware of any improper or fraudulent actions by staff, suppliers, contractors, students or other persons

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associated with the School. In the event of an allegation of theft or fraud the Principal shall act in accordance with the following procedures: a. b. Decide to either immediately report the matter to the New Zealand Police or proceed as outlined in this paragraph. So far as it is possible and within 24 hours: i. Record the details of the allegation, the person or persons allegedly involved, and the quantity and/or value ii. of the theft or fraud. Request a written statement from the person who has informed the Principal, with details as to the nature of the theft or fraud, the time and circumstances in which this occurred, and the quantity and/or value of the theft. iii. Decide on the initial actions to be taken including consulting with the person who provided the information and, if appropriate, condentially consulting with other senior members of staff about the person who is the subject of the allegation.

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iv. Inform the Board Chairperson of the information received and consult with them as appropriate. On the basis of advice received and after consultation with the Board Chairperson, the Principal shall decide whether or not a prima facie case of theft or fraud exists, and if not, to document this decision and record that no further action is to be taken. The Principal shall then carry out the following procedures: a. b. c. d. e. f. g. Investigate the matter further; If a prima facie case is thought to exist to continue with their investigation; Invoke any disciplinary procedures contained in the contract of employment should the person be a staff member; Lay a complaint with the New Zealand Police; If necessary, commission an independent expert investigation; In the case of fraud, require a search for written evidence of the possible fraudulent action to determine the likelihood or not of such evidence; Seek legal advice; or

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5. 6.

h. Inform the Manager, National Operations, Ministry of Education local office and/or the schools auditors. Once all available evidence is obtained the Principal shall consult the Board Chairperson. The Board Chairperson may, if they consider it necessary, seek legal or other advice as to what further action should be taken. If a case is considered to exist the Principal or a person designated by them shall, unless another course of action is more appropriate: a. Inform the person in writing of the allegation that has been received and request a meeting with them at which their representative or representatives are invited to be present. 8 of 9

Asset and Financial Management Policy b. c. complaint against them.

Reviewed November 2011

Meet with the person who is the subject of the allegation of theft or fraud and their representatives to explain the Obtain a verbal or preferably a written response (all verbal responses must be recorded as minutes of that meeting, and the accuracy of those minutes should be attested by all persons present).

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d. Advise the person in writing of the processes to be involved from this point on. The Board recognises that supposed or actual instances of theft or fraud can affect the rights and reputation of the person or persons implicated. All matters related to the case shall remain strictly condential with all written information kept secure. Should any delegated staff member or any other staff member improperly disclose information the Principal shall consider if that person or persons are in breach of condence and if further action is required. Any action the Principal considers must be in terms of the applicable conditions contained in their contract of employment and any code of ethics or code of responsibility by which the staff member is bound.

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The Board affirms that any allegation of theft or fraud must be subject to due process, equity and fairness. Should a case be deemed to be answerable then the due process of the law shall apply to the person or persons implicated. Any intimation or written statement made on behalf of the School and related to any instance of supposed or actual theft or fraud shall be made by the Board Chairperson who shall do so after consultation with the Principal and if considered appropriate after taking expert advice.

10. Allegations Concerning the Principal or a Trustee a. Any allegation concerning the Principal should be made to the Board Chairperson. The Chairperson will then b. investigate in accordance with the requirements of paragraph 4 of this Policy. Any allegation concerning a member of the Board of Trustees should be made to the Principal. The Principal will then advise the manager of the local office of the Ministry of Education and commence an investigation in accordance with the requirements of paragraph 4 of this Policy. This procedure was formally adopted by the Pukeokahu School Board of Trustees on

01/01/2012

___________________________________ Date of Adoption Signed:

___________________________________ Chairperson, Board of Trustees

01/01/2014

___________________________________ Date to be Reviewed

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