Background

The Division recognizes the requirement to account for and report school generated
funds (SGF) in its annual financial statements in accordance with the Public Sector Accounting Board (PSAB).

In accordance with Section PS 1000 of the CICA Public Sector Accounting Handbook, the financial statements of the Division must reflect the full nature and extent of its resources, obligation and financial affairs. In this regard, full nature includes school generated funds under the control of the Division.

Control is inferred when the Director is in an authoritative capacity such as determining the purpose of the funds and its acceptable dispersal.

School Generated Funds apply to all funds that are received, raised, or collected in the name of the school or school activities. Such fees can include, but are not limited to the following:

• Fees from students for curricular activities such as materials, industrial art and home economics fees, and special physical education fees;
• Commercial sales revenue generated from vending machines and canteen sales;
• Fundraising revenue from funds raised for specified projects (i.e., playground purchases) and from sports teams and club fundraisers from items such as magazine sales, entertainment books, and bottle drives;
• Grants and partnership revenue from Kid Sport grants, community organizations, and various corporate sponsorships;
• Fees from students for non-curricular activities such as sports teams, graduation fees, Student Representative Council, and yearbook; and
• Other non-curricular revenue such as external cash contributions, interest income and GST rebate.
  

Expenses related to the school generated funds are paid with the funds collected from students and the public. The expenses incurred are not a part of the school’s decentralized budget and can include, but are not limited to the following:

• Academic supplies such as IA, technology and/or auto body fees, and band charges to cover sheet music;
• Cost of sales from vending machines and canteen sales;
• Academic equipment purchased to augment equipment in the science, audio-visual, and computer labs, as well as sound equipment, sound-field systems and playground equipment; and school funded expenses for operating sports teams, school clubs, SRC operational costs, and graduation costs.
  

Procedures

1.  The classification of school generated funds will be determined by the Chief Financial Officer or designate considering the direction of the Ministry of Education and the Division’s auditors.

2.  School generated funds will be a component of the Division budget.

3.  Each month, the school secretary will provide the  Superintendent of Finance with a bank reconciliation that has been signed by the secretary and principal, and a Profit & Loss statement for review.

4.  The Month-End Checklist provided to each secretary must be filled out each month to verify the completion of month-end tasks.

5.  The Accounting Records Checklist will be used as the basis for record keeping in order to ensure PSAB requirements are met. The following summarizes the checklist requirements:

Receipts/Deposits:

• Receipts must be pre-numbered;
• Receipts must be provided for cash/cheques received equal to or greater than $20;
• The deposit book entries must reference the receipt numbers to which they correspond;
• Funds received from canteens/fundraising activities must be counted and cash tally sheets prepared and signed by at least two people;
• Cash tally sheets will be retained on file in date order; and
• Deposits will be made in a timely manner, with random deposits being made.
  

Cheques/Withdrawals:

• All payments must be supported by an invoice;
• Expense forms will be used to support payments to individuals, and the payments must be approved by an applicable individual;
• Cheque numbers must be written on all paid invoices;
• Invoices will be filed in cheque number order;
• Withdrawals from the bank (other than cheques) must be supported by documentation;
• Cheques must be signed by at least two signing authorities; and
• Cheques must never be pre-signed.
  

At the August 31st year-end, the school secretary will provide the Superintendent of Finance with a final bank reconciliation signed by the secretary and principal, a Year-to-Date Profit & Loss statement, a Transaction Detail by Account report, and a Trial Balance report printout.

Each school may be the subject of an internal or external audit of funds and accounts at the discretion of the Superintendent of Finance.


Reference:  Sections 85, 87, 109, 110, 142, 171, 173, 175, Education Act
CICA Public Sector Accounting Handbook (PS1000)

March 7, 2011