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!