School budget management report - SRP- first page only Calculates the likely surplus or deficit in SRP funding at the end of the year Investment register Where the school has investments other than the high yield investment account, shows amounts invested, terms of investment, types of investment, where invested and interest rates to be earned Note: that the investment register, cash flow forecast report, purchasing card statements and school budget management report are not generated through CASES21. Victorian government schools use accrual accounting. This means that the operating statement, annual program budget report and annual sub-program budget reports show revenue when it is earned, and costs when they are incurred. This will usually be before the school receives funds or pays bills. This is normal accounting practice. A sample of each of the CASES21 reports is attached to this unit, with notes to help councillors understand the reports. The below shows other reports to which the finance sub-committee may refer. Report Details YTD additions – accounting (AR21122S) Shows new assets (such as equipment) YTD disposals – accounting (AR21131S) Shows assets sold or of no value Cash payments greater or to $1,000 (GL21007) Lists payments made which were greater than or equal to $1,000 Sundry debtor balance (DR21101) Shows debtors (those who owe the school money) and the period the amount has been owed Family balance (DF21102) Shows debtors (those who owe the school money) and the period the amount has been owed by families Creditors balance (CR21101) Shows creditors (those to whom the school owes money) and the period the amount has been owed Reviewing reports and taking action Generally speaking, the treasurer and finance sub-committee at each meeting receive copies of the main reports from the principal or business manager with advice concerning any issues that require council action. They discuss the issues with the principal or business manager to achieve a shared understanding and make recommendations to council. For example:
Family Credit Notes Report From family ABS0050 to ZUC0050 Family Credit Note No Date Detail GST Amount Credit Note Amount (Incl GST) BRO00008 Ms BROWN DFI0001575 21/05/20XX Didn’t Attend Science Works Exc $0.00 $15.00 Family Total $15.00 Grand total $15.00 Invoices Awaiting Payment – Detailed From creditor 2FORTHERD to ZZZZZZZFTC | From Sub-program 1301 to 9601 | From Program 130 to 960 | From Initiative 000 to 000 Invoice Number PSW Invoice Date Invoice Due Date PSW Invoice GST Type Invoice GST Rate Invoice GST Amount Invoice Amount (incl GST) Credit Note Number Credit Note GST Amount Credit Note Amount (incl GST) WH Tax Amount WH Tax Rate WH Tax Type Order Number GL Code Program Initiative 3.59 39.50 89101 730 7302 000 0.00 0.00 3.59 39.50 0.00 Nett amount outstanding: -39.50 Invoice Number STATE SUPPL Invoice Date Invoice Due Date State Supply Invoice GST Type Invoice GST Rate Invoice GST Amount Invoice Amount (incl GST) Credit Note Number Credit Note GST Amount Credit Note Amount (incl GST) WH Tax Amount WH Tax Rate WH Tax Type Order Number GL Code Program Initiative 19530626 24/08/ 20XX 04/09/ 20XX G11 10.00 1.20 13.18 86104 490 4923 000 19535313 24/08/ 20XX 05/09/ 20XX G11 10.00 50.08 550.93 86104 490 4922 000 19535313 24/08/ 20XX 05/09/ 20XX G11 10.00 3.90 42.90 86104 700 7001 000 19550060 24/08/ 20XX 09/09/ 20XX G11 10.00 1.39 15.31 86104 490 4923 000 56.57 622.32 0.00 0.00 0.00 Nett amount outstanding: 622.32 Total Nett Amount Outstanding For All Creditors: 582.82
No cancelled payments for Bank Account 10001 High Yield Bank Account 10001 Official Account Date Cheque Number Description GL code Program Sub-Program Initiative Amount 29/04/20XX CRP0004120 #CAN# The Friendly Company Pty Ltd – Incorrect Creditor cheque 12310 999.99 Total Cancellations for 29/04/20XX 25/05/20XX CRP0004141 #CAN# TRUenergy Pty Ltd – Overpmt – Cheq (1500.64) 173.55 Total Cancellations for 25/05/20XX 28/07/20XX CRP0004297 #CAN# Calculated Industries – Reverse Payment Cheque 84,000.00 CRP0004298 #CAN# Nice Neighbours Systems Group Pty Ltd – CRP0004283 Reversed 22.00 Total Cancellations for 28/07/20XX 84,022.00 Total Unallocated Cancellations for the period 0.00 Total Cancellations for Bank Account 10002 Official Account 85,195.54 Bank Account 10003 Building Fund Date Cheque Number Description GL code Program Sub-Program Initiative Amount Total No cancelled payments for Bank Account 10003 Building Fund
Handout C2 Internal controls: answer Statement Is this statement true or Feedback to participants If there is no one else available, it is okay for the person who approved the order of goods to record them as received in the finance system. Separating the approval and receipt of goods or services is an important internal control for purchasing. Even though it is known that 10 purchases will be required for a product (valued at $3,000 each), it is okay for one written quote to be sought on each occasion. The procurement process should take the total cost of goods and services into account. This purchase should therefore consider the total value as $30,000 (i.e. 10 purchases of $3,000 each) and seek three written quotes. Both the finance sub-committee and the school council are responsible for reviewing the financial reports. True Most school councils have a finance Both the finance (where it exists) and school council review financial reports, and the finance sub-committee recommends action to be taken to the council. An annual stocktake of all assets on the asset register must be conducted. False In line with annual reporting of the school’s financial accounts, a bi-annual stocktake of assets must be conducted. It is okay for the chair of the finance sub-committee to be the school business manager, as long as they are not an employee of the Department. False The chair of the finance sub-committee cannot be the business manager. The school council approves a budget three years. False Council approves the budget before the start of each new year. An external auditor must audit the school’s financial statements at least once every four years. All payments require two signatories: the principal and a nominated councillor. True Payments, including made online, must be approved by two signatories. The business manager cannot be a signatory.
A school councillor who has a question about compliance with an internal control can't ask the question unless they are the school council chair. False Council is responsible for ensuring that the school maintains and monitors a system of internal controls. All councillors can and should ask questions when they have them. Handout 1 Financial reports: reports typically provided to finance GL21150 – operating statement (detail) GL21157 – annual sub-program budget Bank reconciliation GL210006 – journal report GL21151 – cash flow statement DR21101 – sundry debtor balance DF21102 – family trial balance DR21309 – sundry debtor credit notes DF21309 – family credit notes CR21118 – invoices awaiting payment GL21161 – balance sheet GL21005 – cancelled payments GL21004 – cancelled receipts GL21002 – cash receipts report GL21003 – cash payments report GL21152 – Bank Account Movements Details Purchasing Card Statements (if applicable) School Budget Management Report. Financial reports provided to council operating statement (detail) balance sheet. Reviewing reports Operating statement (detail) This report: compares actual to budgeted revenue and expenditure by category for the whole school for the month and year to date