National Programme of Training for Boards of Management of Primary Schools Handouts Board Finances & the Role of Treasurer June 2012 (Amended Version)
Education Act 1998 S. 18 (1) A board shall keep all proper and usual accounts and records of all monies received by it or expenditure of such monies incurred by it and shall ensure that in each year all such accounts are properly audited or certified in accordance with best accounting practice. Slide 1 Slide 2 Accounts Proper accounts and records kept… Proper books, records and accounts maintained in a format which is… To ensure accurate information is available on a regular basis Easily understood To ensure that decision making is based on accurate Meaningful – provides information for budgeting and information projection To ensure that the Board can fulfil its responsibilities as a Accurate board. In accordance with recommended Accounting Practices Subject to audit by Department of Education & Skills. Slide 3 Slide 4 The board shall elect a treasurer Board is accountable to… based on… School community Parents Capability Staff Experience Pupils Responsibility Patron Interest Trustees and their auditors DES and their auditors (internal auditors, C&AG, EU) Slide 5 Slide 6 The Duties of the Treasurer The Duties of the Treasurer Keep the school accounts Comply with Revenue requirements – P30/P35, P60, P45 Prepare budgets Comply with procurement procedures when Make lodgements awarding contracts Arrange for payments Keep vouchers of payment for inspection Arrange for petty cash Present an up to date statement of accounts at Deal with payrolls, including PAYE, PRSI, USC, each Board meeting PRSAs Arrange for payment of insurance . Slide 7 Slide 8 2
Keeping accounts Systems of Bookkeeping Manual Analysis Books Keep it simple Computer Spreadsheets Avoid duplication Software Accounting Packages. Analyse information Slide 9 Slide 10 Bank Accounts… Accounting practice… All State grants from the DES shall be used only for the purpose for which they were provided Limit the number of bank accounts A total account of the BoM income and expenditure shall be prepared at the end of the DES pay into one account. school year Accounts should be properly certified or audited. Slide 11 Slide 12 Accounting Practice Accounting Practice Ensure all funds due are When recording income, note… claimed the date received the source recorded the amount All monies received must be lodged to the the purpose for which the money was school bank account. provided. Slide 13 Slide 14 Maintenance of Receipts Maintenance of Receipts contd . Remittance advice from DES Lodgement Book Supplied by bank Statement of grants issued Stored in secure place Lodge all cash/cheques received Cross reference with date and amount of Electronic Funds Transfer (EFT) Lodge regularly File in remitter and date order. Analyse lodgement Large sums of cash should never be held on school premises. Slide 15 Slide 16 3
Payments … Recording details of payments All payments should be made by cheque or direct debit All cheque payments/withdrawals should be signed by • Date Chairperson and Treasurer Chairperson may nominate another board member other • Payee than the treasurer to sign in his/her absence All payments to be… • Cheque number • authorised • recorded • Amount • paid on a timely basis • according to plan/budget. • Analyse. Slide 17 Slide 18 Cheque Book… Cheque Book cont’d… Supplied by the bank Payment never made without supporting Stored in a secure place documentation Cheques always payable to third parties Invoice checked for evidence of receipt of All cheques crossed “a/c payee only, not negotiable” goods/services/quantity/quality/price Cheques for Petty Cash made out to Petty Cash On making payment Cancelled cheques retained Mark invoice paid Cheques cancelled after issue – notify bank Cross reference with cheque number Date of payment Cheque only issued where Cheque stub – insert invoice number Invoice has been issued, checked and approved Following payment - file invoice. Wages – when allowances, deductions have been calculated. Slide 19 Slide 20 Preparing a Budget Maintenance of cheque payments At start of financial year the Board should prepare and adopt a budget for the year Write up on a timely basis Board expenditure should not exceed annual income Total on a monthly basis and accumulate year to date at the end of each month Budget should provide for all relevant items of expenditure e.g. operating costs, insurance, classroom Payment analysed across main expenditure headings requisites etc. All entries in cheque number sequence Budget for substantial expenditure which arises only Where cheque is cancelled write in date, cancelled periodically under Payee column and ‘Nil’ in cheque amount column Savings possible through National Procurement Service Ensure all direct debits and bank charges entered. Finance subcommittee if needed. ( See Section 19 (e) P. 28-29, DES Constitution & Rules of Procedure) Slide 21 Slide 22 Sample Income Preparing a Budget Capitation Grants Ancillary Services Grant No one method of budget preparation is suitable for all Minor Works Grant (unlikely to be available in future) boards Emergency Works Grant (in certain circumstances) Should be broken into shorter periods – terms / months Supervision Grant (balance of hours/opt outs/subs) Starting points Standardised Test Grant overall income Hire of School Premises definite liabilities Voluntary Contribution Considerations Fund Raising cash flow - time of year when grants are paid Other. priorities for BoM. Slide 23 Slide 24 4
Capital Grants… Capitation Grant Received from the Department of Education and Skills Capitation Grants (based on number of pupils in the school as of 30/09 of school year) Not to be used for general maintenance or repairs € 178.00 per pupil ( Feb 2012 ) Capital grants can only be used for major capital Received from the Department of Education and Skills expenditure e.g. extension Money used to meet the operating costs of the school Approval in writing from Patron and Trustees Heating Written sanction from the Department of Education and Cleaning Skills Insurance Comply with current building regulations and planning Teaching materials regulations. Maintenance of school premises and grounds. Slide 25 Slide 26 Relevant Contracts Tax Other DES Grants Applies to school building projects from January 2012 School Accommodation Funding Board of Management as “Principal Contractor” Disadvantage Schemes Tax to be deducted by the principal contractor from payments due to the construction contractor. School Books Grant Scheme Filings and notifications must be done online through the School Transport Revenue ROS system Supervision Contact local Revenue district seeking confirmation if the board is to be treated as a “Principal Contractor” for the Other contract Information Note on www.cpsma.ie Slide 27 Slide 28 Fundraising Sample Budget - Expenditure Fundraising in the name of the school must have prior consent of the Board Classroom Wages Parents’ Association should consult with the Board about Consumables Caretaker Equipment/books fundraising for the school or school projects Cleaning Secretary BoM The expenditure of these funds is by the Board in Utilities Training & staff development consultation with Parents’ Association Pastoral/ethos Electricity All monies raised for an agreed project should be lodged Expenses Telephone to the school account Oil Maintenance Water Monies raised should be used for the purposes for which Repairs & Maintenance Cleaning materials Minor building works the money was collected Administration Grants e.g. Parents’ Association entitled to raise funds for own Office Book Grant administration. Banking Taxes Insurance Slide 29 Slide 30 Payroll Payslip PAYE/PRSI/USC/Levies Personal Retirement Savings Accounts Compliance with Revenue Requirements P30 Remittance to Revenue (monthly) P35 Annual Return to Revenue P45 Termination to employee + copy to Tax Office P60 Annual (to employee). Slide 31 Slide 32 5
Recommend
More recommend
