Ministry of Education School Board Account & School Account Presented by: Mr. Terrance Bastian Auditor General Role of Auditor General In 1973 the Mandate for the Auditor General was established through Article 136 of the Constitution which states ”there shall be an Auditor General whose office shall be a public office, and the Auditor shall be appointed by the Governor General by instrument under the Public Seal, acting on the recommendation of the Public Service Commission made after consultation with the Prime Minister”. Role of the Auditor General continued The duties of the Auditor General are laid out in the Financial Administration and Audit Act, 1973. The Act gives the Auditor General the power to examine and enquire into and audit the accounts of all persons entrusted with the collection, receipt, custody or disposal of Public Moneys or Public Stores. Laws and Regulations Financial Administration and Audit Act, 1973 The Financial Regulations, 1975 Generally Accepted Accounting Principles The School Board Account is Governed by The Education Act Preface to Audit Annual Financial Audits of district school boards are required as stated in Chapter 46, Sections 58 and 60 (7) of the Bahamas Education Act. These guidelines are intended to, and do implement, interpret, or make specific certain statutory provisions which are within the authority of the Auditor General, in accordance with Section 29 of the Financial Administration and Audit Act, 1973 requires “the Auditor General to examine and audit the public accounts”. Responsibility The school’s Principal is in charge of all matters of administration and by virtue becomes the accounting officer. Proposed School Board Budget Line-Items & Description Item Nos. 302200 304160 401100 521200 522400 541700 542550 581900 611100 Descriptions Telephones Cooking Gas Printing and Duplication Professional Services (Audit/Accounting) Work Shop/Conference Seminars Janitorial (New Code) Security (New Code) Fees and Other Charges Office Supplies and Stationery Proposed School Board Budget Line-Items & Description Item Nos. 611300 655100 813300 822400 831770 Descriptions Cleaning and Toilet Supplies General Tuition Materials and Supplies Maintenance of School Equipment School Grounds Improvement & Upkeep Maintenance of Government Buildings Documents Examined Cash Book Expenditure Statement Vote Charge Book Bank Reconciliation Financial Statement Virement Form Treasury Form Letters Requisition Forms Purchase Order Register Purchase Order Cash Book Running Balance All revenue and expenditure be recorded. All information relating to a transaction be properly recorded i.e. date, cheque number, lineitem, description, amount, balance. Expenditure Statement Completed Monthly Properly recorded i.e. Budget allocation, virements, total commitment, total expenditure, total expenditure for the year, item numbers. Vote Charge Book Properly recorded i.e. date, description, cheque number, expenditure, expenditure to date, balance. All virement forms be completed and properly approved. Bank Reconciliation Statements Should be prepared on a monthly basis. The signatures of the Board Chairman and the school’s principal or their alternates are required on all cheques processed on behalf of the board. Under no circumstances should the Principal and the Vice Principal or Chairman or Deputy Chairman be the two signatories on a chequing account. Cheque stubs should contain all corresponding information as the cheque itself. Financial Statement should contain: Total amount deposited for the fiscal year. Breakdown of expenditure for the year by item. Remaining balance in the account at year end. Unpaid commitments at year end. Balance of funds available. Common Issues with School Board Account Cheques being process with one signature affixed. Commingling of the school board and school account. Filing – Locating all invoices/bills. Approval to vire funds not seen. Common Issues with School Board Account Account being overdrawn. No work schedule to pay janitress/security. School board paying for items not specified under any item number. Payee and signatory is the same person. School Account No formal structure like school board account. Too many cash transactions No cash book, daily in-take forms No bank reconciliations, Financial Statements prepared. No Segregation of Duties School Account Cheques being process with one signature affixed. Filing – Locating all invoices/bills. Account being overdrawn. Amount collected not verified by senior officer(s). Deposits are not made on a daily basis. School Account Recommendation Standards, policies and procedures be implemented to govern the school account. Deposits be made on a timely basis. Recording all transactions in cash book, and expenditure statements. Use of more cheques to satisfy financial commitments. School Account Recommendation Monthly bank reconciliations statements be prepared. Preparation of Financial Statement. Segregation of Duties. Training for persons responsible for the school account. Critical for School Board and School Account to have Record keeping and accountability. Monthly bank reconciliation. Expenditure Statements. Segregation of Duties AUDIT TRAIL Need Identified Requisition Form Record cheque in Cash Book 3 Quotes Select Vendor Record cheque in Expenditure Statement Purchase Order Purchase Order Register Goods Received (Invoice) Prepare Voucher Prepare Cheque Record cheque in Vote Charge Book Prepare Bank Reconciliation THANK YOU!