Guidelines For
School Generated Funds
PRAIRIE SOUTH SCHOOL DIVISION NO. 210
TABLE OF CONTENTS
1. Introduction
2. Sources and Uses of School Generated Funds
3. Accountability-Roles and Responsibilities
4. Banking/Receipts/Disbursements
5. Financial Reporting
6. Accounting Systems
7. Financial Audit
8. Goods and Services Tax
9. Provincial Sales Tax
10. Charitable Donations
11. Entering into Contracts
12. School Community Councils
13. Student Representative/Leadership Councils
14. Changes in Principal
Prairie South School Division No. 210
Guidelines for School Generated Funds
Section One
Introduction
Background:
Changing attitudes in society require schools and school boards to be
increasingly accountable for the use of public funds. Funds are generated at
the school level from a number of different sources and used in a number of
different ways to enhance the development of educational programs and to
support school initiatives.
The guidelines included in this manual identify the key recording, reporting
and reviewing requirements for school generated funds, tax reporting (GST
and PST), and parent/student groups associated with the school.
Objectives:
• Provide appropriate guidance, authority and protection to school staff and
fundraising volunteers by providing specific administrative procedures
for the administering, recording and reporting of school generated funds.
• Meet the public’s expectations and validate the public’s trust regarding
the stewardship of school generated funds, both school and parent
administered.
• Ensure consistency and standardization of guidelines across all schools in
Prairie South School Division No. 210.
• Meet the board’s requirement under provincial regulations for the
financial accountability of School Community Councils involved in
fundraising.
Specifics:
Key Considerations in the Development of the Manual
• The guidelines have been developed and written with the Principal and
Administrative Assistant in mind.
• They attempt to simplify (as much as possible) the procedures which will
assist schools in administering, recording and reporting the various types
of funds and expenditures flowing through the school.
• Recognizing the time constraints which exist at all schools, they establish
the minimum requirements which should be followed to address
accountability relating to the management of school generated funds.
About The Manual
• Although each section is divided by tab, the information presented in a
particular section is not exclusive and should not be read in isolation from
another section
• It is expected that this document will be updated on a periodic basis to
reflect changes as required.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
Acknowledgements
On behalf of Prairie South School Division No. 210 we would like to
acknowledge the following:
The Ontario Association of School Business Officials who provided the
groundwork for these guidelines.
Saskatchewan
School
Boards
that
shared
their
procedures/guidelines relating to school generated funds.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
existing
Page 3 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Section Two
Sources and Uses of School Generated Funds
Background:
Funds are generated in schools from a number of different sources and used in
a number of different ways. This manual applies to all funds that are received,
raised, or collected in the name of the school or school activity. These funds are
under the direction and control of the school Principal. Generally this will mean
all funds available to the school, other than funds provided by the approved
budget of the board.
Objectives:
• To identify and categorize the sources of school generated funds to
which this manual applies.
• To outline generally acceptable uses of these funds and some
unacceptable uses of these funds.
Specifics:
Types of School Generated Funds Revenues (GL Codes in SchoolCash)
1. Student fees - Curricular: In previous years, some schools collected fees
at the beginning of the school year to cover the costs related to such
things as use of lockers, purchase of yearbooks, or to cover costs of
special programs, etc. Often these were referred to as student activity
fees and in some cases, such as book deposits, they were reimbursed.
Student fees have also been charged, in previous years, for such things
as field trips, practical and applied arts materials, physical education
programs, learn-to-swim programs, etc. Due to changes in allowable
school fees, this type of fee should not be charged for 2010-2011 and
subsequent years, except in the situation where the fee is to be applied
to upgraded materials used in practical and applied arts classes.
2. Student fees – Non-curricular: At both the secondary and elementary
level, student fees may be charged for sports and extra-curricular club
activities, ski trips, graduation, etc. which would be classified as noncurricular and which would be allowable under the new rules.
3. Commercial Sales GST taxable: Under federal GST rules, a school is not
required to collect GST as long as the total supply (sale) of taxable goods
and services does not exceed $50,000 in a year. Each school, therefore,
must keep track of these sales in order to ensure that the GST regulations
are followed. GST taxable supplies include most goods that are sold by
schools, including sales of magazine subscriptions, books, yearbooks,
school clothing, public transit passes, locks, chocolates, hot lunches,
canteen items, etc. and also include admission charges to entertainment
events such as dances and sporting events. While the purpose of these
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
types of sales may be fundraising, they are to be reported as sales, not
as fundraising revenue.
4. Commercial Sales non–GST: School sales that are not GST taxable would
be limited to such things as water, basic groceries (eg. uncooked pasta),
other food in sizes greater than single servings and baked goods in
multiples of six or more.
5. Fundraising:
Fundraising revenue for School Division reporting
includes such things as small donations collected for school use that do
not require a Prairie South charitable donation receipt and received due
to fundraising initiatives, raffle proceeds and other means of fundraising
that do not provide an immediate good or service to the donor.
6. Charity Fundraising Revenue: Charity Fundraising Revenue for
School Division reporting includes donations collected for charity (for
example a Terry Fox walk-a-thon or Diabetes dress down day) received
due to fundraising initiatives, raffle proceeds and other means of
fundraising that do not provide an immediate good or service to the
donor. These donations are tracked separately, as they are not reported
on our financial statements, it is money that never belongs to us.
7. Grants and partnerships: This revenue includes funds received from
service groups or other agencies which has been provided for a specific
purpose, such as sporting equipment or a breakfast or arts program,
which does not require a Prairie South charitable donation receipt and
which will be administered and reported through school generated
funds.
8. 68% GST and 100% GST: Record all amounts received for GST
reimbursement in the corresponding account.
9. Reimbursements: After submitting a GL Reimbursement Report, record
the amount reimbursed from Prairie South for decentralized purchases
made by the school into this account (will offset the E-Reimbursements).
10. Other: Revenue not included in any other category, including interest
on school investments and bank accounts, school picture rebates and
external non-receiptable cash donations for clubs and teams.
Types of School Generated Funds Expenditures (SchoolCash GL Codes)
In order to comply with the Ministry of Education’s reporting requirements,
expenditures made from school generated funds must be allocated to a limited
number of expense accounts. Following are descriptions of the types of
transactions to be recorded to each SchoolCash GL Code:
1. 68% GST and 100% GST: No payments will be recorded to these GL
Codes, amounts will be allocated automatically by SchoolCash based on
the GST recorded on payment of School Generated Funds (SGF)
expenses. When recording a SGF expenditure that is not an item sold
by the school and that will not be reimbursed, the amount of GST paid
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
2.
3.
4.
5.
6.
7.
should be recorded in the box indicated – “68%” for most purchases or
100% for books purchased.
Academic Supplies: This GL Code will be used for purchases made from
School Generated Funds that will not be reimbursed by Prairie South
School Division, are not sold and that fit the description of academic
supplies as described for purchases from school decentralized budgets.
Furniture & Equipment: This account is used to record purchases of
physical assets including furniture, classroom equipment, whiteboards,
tackboards, lockers, other equipment, computer hardware, technology
hardware, etc.
Cost of Sales: Payments made for the purchase of items sold by the
school will be recorded as cost of sales. Included are payments for
magazine subscriptions sold, books, yearbooks, school clothing and any
other items that are sold. If the sale of any item is included in
Commercial Sales – GST or Commercial Sales – non-GST, the purchase
of the item must be recorded as Cost of Sales. Where admission to an
event is charged and included in Commercial Sales – GST, expenses
relating to the event may or may not be recorded as Cost of Sales,
depending on the situation. GST should not be recorded on any
payments recorded as Cost of Sales or on any payments for expenses
relating to events where admission is charged.
Charity Fundraising Payments: Record the costs associated with the
fundraising events, as well as the recording of payment to the charity.
This account should net a zero amount against the R-Charity Fundraising
Revenue.
Reimbursements: Prairie South School Division has made available petty
cash to all schools in the division, to be used to pay for small purchases.
Some schools hold this petty cash in their bank account and issue
cheques for the expenditures – in this case the payments will be
recorded using the Reimbursement GL Code, with a Decentralized
Account chosen and the E – Reimbursements category. No GST will be
recorded in these payments as they will be reimbursed. The
expenditures will then be reimbursed by submitting a GL
Reimbursement report, along with the related receipts. If the school is
holding the cash on hand, the cashbox function can also be used, which
will also generate a GL Reimbursement report that can be submitted for
repayment.
School Generated Funds expenses: This GL Code will be used for
expenditures not falling into any other GL Code, including remittance of
funds collected in fundraising for the school, bank service charges and
costs of events such as graduations or author presentations where no
admission is charged.
School Categories
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
School generated funds are held by the school for the general or specific
benefit of the students of the school.
Categories have been set up in SchoolCash so that each school’s funds can be
allocated according to the purpose for which the funds were raised. These
categories are designed to provide for consistent reporting across the school
division, however some customized categories can be created. Each time a
deposit or a cheque is recorded in SchoolCash, a category must be chosen. For
example, if a school does fundraising and charges students fees for a Senior
Boys’ basketball trip, the “Basketball – Sr. Boys” category would be chosen for
the deposits and for the related expenditures. In this way, it can be
demonstrated that the funds have been used for the specified purpose. The
SRC/SLC category must be used for funds raised and used with the direct
involvement of the Student Representative/Leadership Council. The School
Community Council category must be used for funds raised and used with the
direct involvement of the SCC. If the school has generated funds with no
designated purpose or use (such as fundraising sales with profits that having
no specified use), the Miscellaneous Funds or Principal’s General categories
can be used. Other categories may also be used as needed by each school.
Acceptable and unacceptable uses of school generated funds:
All purchases made using school generated funds must comply with board
policy and procedures. Relevant board policies with which to ensure
compliance would include School Community Council policy and purchasing
policy. Funds raised for a specific purpose must be used for the intended
purpose. For example, student activity fees charged for upgraded practical and
applied arts supplies should be used for the purchase of these items. The
accounting records should track each category separately. If the category is of
an ongoing nature, residual amounts in that category at the end of one school
year should roll forward to the next year, and not be used for another purpose.
Residual amounts in one-time categories should be disclosed as such, if they
are to be transferred to other categories. Refunds should be considered where
large surpluses remain in one-time categories. Deficits for any category are not
permitted, unless subsidized by other general fundraising activities.
Funds raised for a general purpose with no specific intent must be used for
school related activities, at the discretion of the school Principal, and as
described above, may require School Community Council/Student
Representative/Leadership Council input.
A list of unacceptable uses of school generated funds would include:
• Items that are to be purchased from the Board’s budget except to the extent
that petty cash has been advanced by Prairie South School Division.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
• Goods or services from employees, where such purchase would
contravene Section 368 of The Education Act, 1995.
• Mileage reimbursements to employees.
• Monetary payments to employees for services.
• Investments other than those permitted by the Board and Section 87(1) of
The Education Act, 1995.
Caution:
Expenditures made from school generated funds that do not directly benefit
the students in the school are subject to greater scrutiny and may require
further justification.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 8 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Section Three
Accountability –
Roles and Responsibilities
Background:
The Board has a responsibility to ensure that all school generated funds are
collected in accordance with Board policies and municipal, provincial and
federal laws and regulations. This responsibility includes ensuring that all
funds are adequately protected, that they are controlled through proper
accounting procedures and that accountability for the funds is maintained.
Objectives:
To clarify the roles and responsibilities of individuals involved in school
generated funds.
Specifics:
Roles & Responsibilities of the Accounting Manager:
• Establish guidelines for school generated funds.
• Provide training to staff on the appropriate application of the guidelines.
• Complete and/or follow-up on audit reports.
• Receive and maintain a central file of annual financial reports from each
school as indicated in the Financial Reporting section.
Roles & Responsibilities of the School Superintendent:
• Reinforce to Principals the need to adhere to Board policy and
guidelines.
• Report to the Accounting Manager:
o if funds are lost or stolen
o any misuse of funds
o failure to follow any policy or guidelines
Roles & Responsibilities of the Principal:
• Ensure that the Guidelines for School Generated funds are implemented
in compliance with Board Policy.
• Act as one of the approved signing officers on the school bank account.
• Appoint the designated individual responsible for receipts,
disbursements, banking and record keeping and communicate those
responsibilities.
• Ensure that processes are in place to adequately control the funds within
the school including security over cash and records.
• Ensure that no staff members or members of the community are
collecting and managing funds in their own bank account.
• Communicate responsibilities to staff members.
• Ensure that there is a primary contact for each club or class involved with
financial transactions.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
•
•
•
•
•
•
•
Review, initial and date the monthly bank reconciliation.
Review records periodically.
Review, sign and date the annual Financial Reports.
Distribute and/or make available the annual financial reports as outlined
in the section on Financial Reporting.
Notify the School Superintendent and the Accounting Manager
immediately if funds are lost or stolen.
Ensure that the school or any individual associated with the school does
not enter into contracts in the name of the school or the Board.
Ensure that the School Community Council chair is aware and
understands their roles and responsibilities.
Roles & Responsibilities of the Designated Individual in the school:
• Implement the guidelines for school generated funds as directed by the
Principal.
• Act as one of the approved signing officers on the school bank account.
• Count and verify funds received for deposit.
• Prepare bank deposits and deposit funds at the bank on a regular basis.
• Issue cheques ensuring that all requests for payments are properly
supported and approved by the Principal.
• Record transactions on a regular basis.
• Complete the monthly bank reconciliation.
• Prepare transaction reports as required.
 Prepare GL Reimbursement Request (Petty Cash reimbursement) forms
and provide proper documentation for reimbursement of expenditures
made from Division-provided petty cash funds.
 Prepare GST Rebate forms and attach proper documentation for
reimbursement of the appropriate percentage of GST on school
generated funds expenditures. Once authorized by the principal,
forward to the School Division office.
 Prepare PST self-assessment forms for remittance of PST where taxable
goods or services are purchased but Saskatchewan PST is not charged,
such as taxable items purchased from out of province.
• Advise the Principal of deviations from the guidelines outlined in this
manual.
• Prepare annual financial report and submit to Principal.
• Assist during audit.
Roles & Responsibilities of Staff Members:
•
•
Collect funds from students or other sources as applicable.
Count funds collected and record amount and intended use on the Funds
Received Form as indicated in Section 4 on Banking, Receipts and
Disbursements.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
•
•
•
•
•
Ensure funds collected are delivered to the designated individual on a
daily basis.
Ensure that invoices have the appropriate approval and are delivered to
the designated individual for payment.
Ensure details of financial activity related to their class or club are
recorded correctly.
Ensure that funds received are disbursed as per the intent of the funds
raised or collected.
Request and review transaction reports on a regular basis and advise the
designated individual of any discrepancy.
Roles & Responsibilities of School Community Council Chair:
•
•
•
•
Work with the Principal to ensure that the sources and uses of school
generated funds comply with Board policy and the established
guidelines.
Ensure fundraising activities involving the students and/or the school are
in compliance with Board policies and no direct or indirect benefit is
derived by a member of the School Community Council.
Ensure that School Community Council members are aware that where
conflicts of interest exist, they are disclosed.
Upon review of all financial information received from the designated
individual report any errors or omissions in the financial records.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
Section Four
Banking/Receipts/Disbursements
Background:
All schools should have a bank account for school generated funds and a
process to record transactions. It is essential that controls be in place to assist
in the management of these funds.
Objective:
To simplify banking practices while
• ensuring security of funds
• protecting those responsible for handling the funds
• maintaining adequate records
Specifics:
The following practices represent the minimum procedures recognizing the
balance between limited staffing and the need to meet basic security and
reporting requirements.
Establishing a Bank Account
• The school should have a maximum of two bank accounts. One “school
generated funds” bank account and the other for funds that do not fall
under the scope of the Board (e.g. staff coffee fund).
• The bank account(s) shall be in the name of the school.
• Cheques for the school bank account(s) shall be pre-numbered.
• The account must require two signatures on all cheques.
• It is acceptable to have up to four signing officers. The Principal must be
one of the four.
• The bank account(s) established should be such that statements are
issued on a monthly basis along with returned cheques.
• The bank statement should cut-off on the last day of the month.
Receipts
• All funds received at the school are to be stored on site in a designated
locked and safe location which has limited access.
• All funds collected are to be deposited intact to the bank account
promptly. This means that expenditures are not paid from the cash
collected. The total funds are deposited to the bank and a cheque written
to pay expenditures.
• All staff collecting funds must complete the attached “Funds Received
Form” and forward both to the designated individual in the school
office. Alternately, the deposit form generated from SchoolCash can be
generated and signed by the individual who has collected the funds.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 12 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
•
•
•
•
Where possible, funds should be counted in the presence of two
individuals.
When the funds have been counted and prepared for deposit by the
designated individual, a copy of the “Funds Received Form”, or a
SchoolCash deposit form or receipt, indicating the actual funds count is
returned to the staff member originally submitting the funds.
You shall use the same procedure for receipting funds received directly
from individuals or groups not employed by the Board.
The forms must be filed with the school copy of the bank deposit form.
Disbursements
• All disbursements should be recorded promptly (within one week).
• All payments should be made by cheque.
• Pre-signing of cheques is not acceptable. Signature stamps are not
acceptable.
• Payments should only be made upon the presentation of original
invoices, receipts or other appropriate supporting documentation
approved by the Principal.
• When a cheque is issued the invoice must be marked paid and the
cheque number and date recorded on the original documentation.
Payments should not be made from company statements.
• Cheques made payable to cash or payments in advance to employees
are not acceptable.
• Reimbursements to Principals above the amount of $99.99 must be
approved by their Superintendent.
• Using the number control feature, all cheques should be accounted for.
Voided cheques must be retained.
• Unused cheques should be stored in a designated, secure location in order to
prevent loss or theft.
Investments
Where a school has excess funds, they may be invested in the name of the
school as permitted by Section 87(1) of The Education Act, 1995 and Board
policy and practices (eg. term deposits, GIC’s, etc.). These funds should be
invested on a short term basis.
Bank Reconciliation
• Monthly bank reconciliations must be completed.
• Cheques not cashed within six months are stale-dated and should be
reversed in your records.
• The Principal shall review the monthly bank reconciliation, sign it and retain
on file.
• The monthly bank reconciliation must be prepared following the
procedures outlined in the SchoolCash manual and must be “signed
off” in order to move forward to the next month.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
Records Retention
•
All original documents, including paid invoices, cancelled cheques,
bank statements, support for deposits and bank reconciliations shall be
retained. It is recommended that the records of each year be boxed,
labeled and stored in the school. After seven years, a request may be
made to the School Division to destroy the records or to send them in to
the Division office for storage.
Caution:
Deviation from the above guidelines will leave the school vulnerable to
potential problems. The need to have guidelines in place is often not
recognized until something goes wrong. The goal is to have controls that ensure
funds are handled appropriately, that staff are protected and that records are
accurate, up to date and useful. The controls are only as good as their
enforcement. It is important that school administrators support and follow the
established practices.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
School Generated Funds
Funds Received Form “A”
School Name: _______________________________________
Amount of Funds:
See Form “B”
(C)
Source and Purpose of Funds:
(i.e. car wash for grade 8 trip)
Name:
Signature:
Date:
Actual Funds Counted:
Difference:
Verified by: ________________________
(Name)
(Signature)
Date:
Retain original and forward a copy to the individual who submitted the funds.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 15 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
School Generated Funds
Funds Received Form “B”
Coin
=
x 1.00
=
x 2.00
=
x 5.00
=
x 10.00
=
x 20.00
=
x 50.00
=
x 100.00
=
Total Cash
(A)
$
Cheques
Received From
Amount
Total Cheques
(B)
$
Total (A) + (B)
(C)
$
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 16 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Section Five
Financial Reporting
Background:
A substantial amount of money is generated in schools for the benefit of
students. The Principal is accountable for the funds to both the school
community and the Board. Financial statements demonstrate accountability
and, at the same time, provide information for decision-making needed by the
school community and the Board.
Objective:
To provide a format for financial reporting including:
• Who will be responsible for preparing the reports
• What will be included in the reports
• The fiscal period that will be covered
• The reports that are required
• When they will be distributed
• To whom they will be distributed.
Specifics:
• The financial reports shall be prepared under the direction of the
Principal.
• The reports shall encompass all funds generated in the name of or under
the auspices of the school regardless of its source or use.
• The fiscal year for the reports shall be September 1 to August 31.
• The Principal shall review, sign and date all reports.
• The reports shall be made available at the school to the members of the
school community upon request.
• The reports shall be kept with the records for the school generated funds
for seven years.
Required Reports
Bank accounts must be reconciled monthly, with copies of the bank statements
sent to the Accountant as soon as the November, February, May and August
bank reconciliations are completed. The bank reconciliation will be printed,
then reviewed and signed by the principal.
A “Trial Balance (Category)” report (#8 in the SchoolCash Reports Menu) will
be printed, then reviewed and signed by the principal.
At yearend, an annual transaction listing shall be generated, showing all
transaction details for the year including the Category and GL Code recorded
for each. The “Customized Transaction Report” (SchoolCash report 11) can be
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
used for this reporting - when producing this report, be sure to select the “Show
– GL Codes” option. The principal will review this report and sign it to indicate
that he/she has done so.
Once the principal has reviewed the yearend information, he/she will send an
email to the accounting manager indicating that to the best of his or her
knowledge, the bookkeeping records accurately reflect the transactions for the
year.
Yearend Accounts Payable and Accounts Receivable reports – see the forms
following in this section.
Distribution of Required Financial Reports
Monthly
Quarterly
SemiAnnually
Annually
1 Trial Balance
(Category)
Report
2 Accounts
Payable
listing
3 Accounts
Receivable
listing
4 Annual
transaction
listing,
yearend
Accounts
Payable and
Accounts
Receivable
5 Bank
Reconciliation
Principal,
SCC
Principal,
SCC
Accounting
Manager
30-Sep
Principal,
SCC
Accounting
Manager
30-Sep
Principal,
SCC
Accounting
Manager
30-Sep
Principal
6 GST Report
7 PST Report
Completion
Date
Accountant
responsible
for SGF
31-Dec, 31Mar,
31May,
30Sep
Accounting
Dept.
Accounting
Dept.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
Other Reports
1. GST Reports
Should be generated from SchoolCash, as discussed in the section titled
“Goods and Services Tax” (Section Eight).
2. PST Reports
Will be prepared as discussed in the section titled “Provincial Sales Tax”
(Section Nine)
3. Individual Fundraising Reports
“Detailed Category Summary” reports (SchoolCash report 1) can be generated
to show the revenues and expenses that have been recorded. Any given
fundraiser may require more detailed reporting than is given in the required
reports or by the accounting system if a separate category is not set up for a
specific fundraising initiative.
4. T4A Reportable income - reporting of payments for scholarships, services
provided to the school and purchases of gift cards or gift certificates given to
employees.
The school division is required by Canada Revenue Agency to prepare T4A
forms to report various forms of revenue. This revenue includes payments for
scholarships and payments to individuals who provide services to the
division, where the payments made from the division as a whole total $500.00
or more. When schools make payments to individuals for services, including
such things as refereeing, author visits, etc., this information must be
provided to the accounting department, no matter how small the payment.
When schools purchase gift cards or gift certificates that are given to
individuals, the name of the recipient must be provided to the accounting
department. Gift cards or gift certificates given to Prairie South School
Division employees are taxable to the employee and will be reported on a
T4A form.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 19 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Section Six
Accounting Systems
Background:
The SchoolCash online accounting program is currently being used by all
schools to record and report on School Generated Funds. This program
provides information for school Category reporting, as well as information
required by the Ministry of Education to be reported in the School Division
financial statements.
Objective:
To identify the minimum information to be recorded while:
• Safeguarding the money
• Protecting those responsible for handling the money
• Maintaining a thorough set of records regarding the receipt and
disbursement of funds.
Specifics:
Revenue and Expenditure Records:
• All revenue and expenditures must be recorded promptly (within one week).
• For money received, the following information is required:
o Date received
o Amount collected
o Purpose of funds
o Name and signature of person from whom money is received
o Date deposited.
o SchoolCash GL Code.
o SchoolCash Category.
• For payments made, the following information is required:
o Date cheque issued
o Amount of cheque
o Name of payee
o Reason issued
o SchoolCash GL Code.
o Decentralized account, if payment is to be reimbursed by Prairie South
School Division
o SchoolCash Category.
NOTE: All funds are to be deposited intact. This means that expenditures are not
paid from cash collected. The total funds are deposited to the bank and a cheque
written to pay for expenditures.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 20 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
• The accounting system must track and report revenue and
expenditures for each school activity. The accumulated balance of all
school activities should equal the bank balance.
• The revenue and expenditure records should be reviewed periodically
by the Principal.
Caution:
As with all other electronic systems, the records are only as good as the
information entered. It is important that the records be kept up to date and
errors corrected promptly.
To ensure appropriate controls are in place, it is critical to keep accurate, upto-date records regarding the receipt and disbursement of funds. This will
ensure that the money is handled appropriately, that staff are protected and
that written records exist which can be relied on for review/audit purposes.
The controls are only as good as their enforcement. It is important that school
administrators support and follow the established practices.
The Board will provide technical support in the use of SchoolCash. A
designated accounting technician/clerk/accountant will be available to assist
with difficulties on line in the use of this piece of software.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 21 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Section Seven
Financial Audit
Background:
The school division appointed auditor shall conduct audits of school generated
funds. This will occur on a cyclical basis determined by our auditor, so that each
school is audited periodically.
Objectives:
To provide:
• A description of an audit of school generated funds
• Outline the process involved, including the five basic objectives of internal
controls
Specifics:
Description of an Audit:
1. Purpose
An audit is an independent review of specified activities, which is used to assist
management in the assessment of whether the organization’s plans are carried
out; policies and procedures are observed; and assets, liabilities, revenues,
and expenses are properly accounted for and reported on a timely basis. The
review usually consists of analysis, recommendations, and comments
regarding the activities audited.
For purposes of this manual, this type of review will be limited to an
examination of school generated funds as outlined in the section on Sources
and Uses of School generated funds.
2. Scope
The scope of the audit activities includes:
• Review and appraise the adequacy and application of financial and other
operating controls.
• Review compliance with Board Policies as they relate to school
generated funds.
• Evaluate the timeliness, accuracy, and usefulness of the school’s records
and reports.
• Ensure that school generated funds are properly accounted for and
safeguarded from loss.
• Comment on the extent to which funds raised are used efficiently,
effectively, and for the purpose stated prior to the funds being raised.
For comparative purposes, audits will cover fund raising activities and
reporting for a one-year period. The time period may be expanded depending
on the frequency of the audit or where extenuating circumstances exist.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Prairie South School Division No. 210
Guidelines for School Generated Funds
3. Involvement of Superintendent/Principal/School Staff/School Community
Council/Student Representative/Leadership Council
It is expected that the School Superintendent, Principal, Vice-Principal(s) if any,
other school staff, and representatives of the School Community Council and
Student Representative/Leadership Council, where one exists, will be called
upon at times to provide information and records and to clarify such
information. It is expected that full cooperation will be given to the auditor in
order to complete the review.
4. Reporting
Following completion of the audit, the final report shall be formally submitted
to the Superintendent of Business and Operations for action, as required.
Depending on the extent of fund raising activities in a given school, some of the
above may be less critical than others, however, all schools should have a
general expectation that their procedures and controls meet these standards
and objectives. The audit report should assist schools in achieving these goals
by identifying omissions and/or problem areas and recommending corrective
action, where necessary. It should identify best practices that already exist and
may be shared with other schools.
Final Report
The final report will be formally submitted to the Superintendent of Business
and Operations. Any recommendations from the auditor will be addressed with
each Principal, and may, with the Director of Education’s approval and, at the
discretion of the Superintendent of School Services and the Principal, be shared
with the School Community Council for information.
Follow-up Review and Reporting
Depending on the nature of the auditor’s findings and need for implementation
of corrective measures, the Accounting Manager will conduct a follow-up
review to determine that such corrective measures have been implemented
and that they are achieving the desired results.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
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Guidelines for School Generated Funds
Section Eight
Goods and Services Tax (GST)
Background:
Administration of the GST pertaining to school generated funds represents an
administrative challenge. The issues surrounding GST are complex and, as
such, any general rules or administrative guidelines that are developed can
always be challenged given the specifics of the situation and the fact that GST
Regulations are subject to change. However, there is still need to standardize
the approach to GST rebates at the school level while complying with GST
legislation. There is no single approach that will apply to all schools.
Within the GST legislation, there are a number of broad exemption categories that
apply to school generated funds. These categories, in hierarchical order, are as
follows:
Public Sector Body
Includes federal government, provincial
governments, a municipality, a school
authority, a hospital authority, a public college
or a university.
Public Service Body Includes a non-profit organization, a charity, a
municipality, a school authority, a hospital
authority, a public college or a university.
Public Institution
A school authority, a municipality, a hospital
authority, a public college or a university;
which are registered charitable organizations.
Educational Services Supplies of goods and services provided by a
school authority for courses primarily for
elementary or secondary students.
Schools, School Community Councils, and other bodies affiliated with the
school shall neither have, nor obtain, GST registration status with CRA.
Objectives:
To simplify the GST process while:
• Complying with GST legislation
• Minimizing potential exposure to tax liabilities as a result of government
audit
• Maximizing GST rebates
Specifics:
Taxable Sales Less than $50,000
As a Public Institution, schools which have less than $50,000 in taxable sales
each year are exempt from collecting GST. The school division has made
application for “small supplier branch designation” (CRA Form GST 31) for
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 24 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
each school location and are, therefore, not required to collect GST on sales. In
order to track the total amount of taxable sales made by the school, the
“Commercial Sales – GST taxable” GL Code must be selected for recording of
all revenue collected that would have GST charged on it if it was collected by a
GST registrant.
Schools are also eligible for a rebate equal to 68% of the GST paid on all
purchases of items that are used in the school and are not resold or reimbursed.
GST must not be claimed, and so must not be entered when recording the
purchase, for any items that are resold
SchoolCash will automatically calculate the GST Rebate receivable, based on
the information entered, and can produce a form to request repayment of the
GST rebate. To generate this report, on the Reports menu, select “Tax Rebate
Reports for Board Submission”, then Detailed. This form should be submitted
at least semi-annually, at January 31 and June 30;
To obtain a rebate of the GST paid on items purchased through school
generated funds, or the School Community Council funds held at the school:
• The GST Rebate report must be reviewed and signed by the Principal;
• The GST Rebate report is to be forwarded to the board office;
• The board will process the rebate under the board GST registration
number;
• The rebate will be received from the government at the board office;
• The rebate will be forwarded to the school once the GST Rebate form has
been processed by the accounts payable department.
Original invoices that support the amounts shown on the GST Rebate Claim
must be filed with the GST Rebate Form and submitted to the division office. In
the case of an audit by CRA all invoices regarding the GST rebate claim will be
located in one location for the ease of the auditor.
Caution:
Any financial liability resulting from a government audit of a school is the
responsibility of that school.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 25 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Section Nine
Provincial Sales
Tax Issues
Provincial Sales Tax
Background:
Most tax issues related to school generated funds deal with the federal Goods
and Services Tax (GST). There are, however, some Provincial Sales Tax (PST)
issues that schools should be aware of.
Objectives:
To simplify any matters related to PST that may arise at the school level by:
• Providing an understanding of what major items are PST exempt.
• Outlining the process to be followed if a vendor charges PST on an
exempt item, or is considering charging PST on such an item.
• Purchases completed with out of province vendors which are not
registered with a Saskatchewan PST number.
Specifics:
There are tax exemptions in Saskatchewan for certain books and other
publications for use by the general public. In addition, these tax exemptions
are broadened for specific purchasers, such as educational institutions.
General Exemptions:
The following major items are PST exempt:
•
•
•
•
•
•
•
Atlases but not maps and charts
Book binding materials
Books - curriculum, dictionaries, encyclopedia, library, literary papers
(unbound), printed and bound, school yearbooks, sheet music,
teacher's daily plan, workbooks (printed to accompany a
text/program), colouring, cook, paste but not tests. Refer to
Information Bulletin PST-9 for further information.
Children's clothing and children's footwear (age 14 and under)
including school uniforms, gym shorts and skirts, sport shoes without
cleats, sweaters, sweat suits and shirts and sport uniforms but not
hockey and football pants, athletic protective padding and sport gloves
(hockey, baseball and softball). Refer to Information Bulletin PST-1 for
further information.
Entomological specimens (live)
Equipment such as environmental controls, communication aids and
vocational aids that are specially designed for handicapped persons
and purchased by a school
Event programs
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 26 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
•
•
•
•
•
•
•
Fertilizer but not peat moss or vermiculite
Laboratory specimens (live)
Magazines
Newspapers
Oxygen and acetylene gases
Periodicals
Religious publications including Bibles, missals, prayer books, psalm
and hymn books, tracts, Sunday school lessons, books bound and
unbound, booklets, leaflets, scripture and prayer, hymn and mass
cards
Rentals of film, slides, slide films, film strips from the National Film
Board but not when purchased outright or the rental of other video
materials
Top soil, potting soil and other special mixtures of soil
Weed control chemicals and herbicides
Wheelchair motorizing kits.
•
•
•
•
Out of Province Vendors
If you choose to use out of province vendors, you will be subject to remitting
the applicable Saskatchewan provincial sales tax together with all
documentation regarding this purchase to the division office for inclusion in our
submission of self assessed taxes. Schools are not eligible to apply for a PST
consumer number. In the case of an audit all invoices will be on file at the
division office for ease of the auditor.
For example, if a school purchases supplies from another province that does
not charge Saskatchewan PST and the item purchased is not exempt from
Saskatchewan PST, the school must self assess the applicable rate of provincial
sales tax and remit that amount to the division office.
The following is an excerpt from PST-5 Bulletin Issued: June, 1984 Revised:
January, 2008
•
Pay the tax directly to the Revenue Division, when taxable goods and
services are purchased from a supplier who does not collect the tax
(usually a supplier located outside Saskatchewan).
•
Calculate the tax on the total cost of taxable goods and services,
excluding the GST. Transportation costs, custom duties, foreign
exchange and any other importation costs are all considered part of the
cost of the goods and must be included when calculating the tax on
goods purchased outside Saskatchewan.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 27 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Calculation of Self-Assessed PST
Any item that would normally have PST charged on it, but was purchased
outside of Saskatchewan or purchased from an in-province vendor that does
not charge PST, must be self-assessed. This means the PST is calculated on the
cost of the PST applicable goods, added to the cost of the goods in your records,
and remitted to the Minister of Finance through the Board Office.
Example:
A chair is purchased from a company outside of Sask. The cost of the chair is
$100.00 and had a freight charge of $20.00, for a total of $126.00, including the
GST. If the chair had been purchased in Saskatchewan, PST would be included
on the invoice.
The PST would be self-assessed as follows:
$100.00 X 5% = 5.00 PST
(Note: freight is not PST applicable, subject to change by Minister of Finance)
The vendor is paid $126.00 (total of their invoice) and $5.00 is remitted to the
Board Office for inclusion in the monthly Minister of Finance remittance.
Record the payment of the PST to the same Category and GL Code as the
original purchase.
Do not self-assess on purchases that will be reimbursed by Prairie South
School Division, we will self-assess the PST when we repay the school.


* PST rates do occasionally change, so the formula will need to be
adjusted according to the current PST rate at the date of purchase.
** Remittances to the Minister of Finance are currently completed
monthly, but are subject to change, determined by the Minister of
Finance office.
Forwarding Self-Assessed PST for Remittance to the Minister of Finance
Payment is forwarded to the Board Office for the total amount of self-assessed
PST calculated on school generated funds using the Self-Assessed PST Form for
Schools. The self-assessed PST for the entire division will be remitted on the
Prairie South School Division Provincial Sales Tax Return.
When you remit payment to the Board Office for the self-assessed PST, provide
copies of the invoices on which the PST was self-assessed.
Note: Our remittance to the Minister is due on the 20th of the following month,
so your remittance must be received at Board Office no later than the 15th of the
month following the cut-off date. (ex: March 31st report must be received by
April 15th )
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 28 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
PRAIRIE SOUTH SCHOOL DIVISION NO. 210
SELF-ASSESSED PST FOR SCHOOLS
School:
Date:
This claim form is to be used for remitting self-assessed PST from school generated
funds. PST paid by the School Division (such as through purchase orders, petty cash,
etc.) will be claimed by the Accounting Department.
Forward this form and a copy of invoices (originals to be attached to the GST rebate
claim form or kept by the school) to the Accounting Department, monthly as
required. This must be received at Board Office no later than the 15th of the
following month. A photocopy of this form is to be stored at the school with copies of
invoices/receipts.
Vendor Name
Invoice #
Item(s) Purchased
Cost of item
Before GST
(CDN $)
Total Self-Assessed
PST recorded for
current month {B}
Balance to remit to Board Office
Principal’s Certification
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
$
Date
Page 29 of 42
Self-assessed
PST
Calculated
Prairie South School Division No. 210
Guidelines for School Generated Funds
Section Ten
Charitable Donations
Background:
The Canadian tax system encourages taxpayers to support the activities of
registered charities by allowing a tax credit to be claimed by a donor. The
Board is a registered charitable organization.
Objective:
To describe:
• the types of donations that qualify for tax receipts
• the types of donations that do not qualify for tax receipts
• a process for issuing tax receipts.
Specifics:
A charitable donation is a voluntary transfer of property or cash without
valuable consideration being received by the donor.
A donation is made when all three of the following conditions are met:
1) Property or cash is transferred by a donor to the Board. (Cheques should be
made payable to “Prairie South School Division”) Note: Contributions of
services (e.g. times, skills, effort) do not qualify. There is nothing to prohibit
the Board from paying for services and later accepting all or a portion of the
payment back as a donation, provided that it is returned voluntarily.
2) The donation is voluntary.
3) The donation is made without expectation of a return. No valuable
consideration (no benefit of any kind) to the donor or to anyone designated by
the donor may result from the donation.
Donations made to the Board can be subject to general direction (e.g. to the benefit
of a specific school) but cannot be directed to the benefit of a specific individual.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 30 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Gifts in Kind
A gift in kind is a donation other than cash. It does not include a gift of services.
Examples which would qualify are computer equipment, books, furniture etc.
The date of donation is the date that the donor transfers legal ownership to the
Board. This may not be the date of physical delivery since an object may be on
loan to the Board before the date of donation.
For donations of “gifts in kind”, the Board may issue a receipt stating the fair
market value of the donation once the object has been appraised.
New Items: The donation receipt will be equal to the original invoice amount
less GST and PST.
Used Items: The donation receipt will be based on the appraised fair market
value.
Although fair market value is not defined in the Income Tax Act, the generally
accepted meaning is the highest price, expressed in terms of money, that the
property would bring in an open and unrestricted market between a willing
buyer and a willing seller, who are both knowledgeable, informed, and
prudent and, who are acting independently of each other.
The person who determines the fair market value of the property must be
independent of the transaction, competent and qualified to evaluate the
particular property being transferred by way of a donation. They must also put
their evaluation in writing.
Property of little value will not qualify as a “gift in kind”. Used clothing would
be an example of a non-qualifying donation.
Inducements
The general rule that no benefit of any kind may be made available to the donor
does not include items of little or no value. For example, the school may wish
to give the donor a small token as a gesture of appreciation. These items (e.g.
a single flower, a pamphlet, a plastic pin, tag, envelope seals) have no resale
value, and accordingly, such inducements are to be ignored; they do not
disqualify the donation. However, an amount paid for chocolate bars, cookies,
etc. is not a gift.
Receipts
There are no regulations requiring the issuance of official donation receipts
within a particular time frame, but it is suggested that they be issued at least by
the last day of February following the calendar year when the donation was
made.
The more important date is the date of the donation. Donations received after
the end of the year may not be added to the prior year’s donations unless the
donation was postmarked in the previous year.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 31 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Receipts issued will be mailed directly to the donor.
Receipts will be issued for donations that are equal to or exceed $25.00.
Receipts for amounts less than $25.00 will be issued only upon request.
Submission of the completed “Charitable Donation Control Form” along with
the monetary donation and/or independent appraisal will trigger the issuance
of an official tax receipt from the board office.
Caution:
Schools, School Community Councils or other bodies affiliated with the school
shall neither have nor obtain Charitable Registration Status with Canada
Revenue Agency.
Before indicating that a tax receipt will be issued, the Principal must contact the
Accounting Manager to assess whether the activity qualifies for charitable
donation receipts.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 32 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Charitable Donations
Charitable Donation Control Form
School Name
Type
of Mark X in Name & Address of Purpose
Donation
applicable Donor
Donation
category
Cash
Cheque
Gift in Kind
of Amount
$
Issue Receipt
No Tax Receipt
Cash
Cheque
Gift in Kind
$
Issue Receipt
No Tax Receipt
Cash
Cheque
Gift in Kind
$
Issue Receipt
No Tax Receipt
Cash
Cheque
Gift in Kind
$
Issue Receipt
No Tax Receipt
Cash
Cheque
Gift in Kind
$
Issue Receipt
No Tax Receipt
Cash
Cheque
Gift in Kind
$
Issue Receipt
No Tax Receipt
Cash
$
Cheque
Issue Receipt
Gift in Kind
No Tax Receipt
Note: For Gifts in Kind, an independent written appraisal must accompany each
request for a tax receipt.
Principal
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Date
Page 33 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Section Eleven
Contracts
Background:
Board Administration, in consultation with schools, will determine the extent to
which schools can enter into individual school contracts. In many cases, Board
policy, procedures and guidelines will establish the parameters regarding the
dollar amount and the duration of contracts into which schools can enter.
Objective:
• To define different types of contracts
• To outline why some contracts require closer scrutiny
Specifics:
Corporate Sponsorship
The Board may enter into corporate sponsorships in order to enhance the
educational opportunities for an improved learning environment for students.
Corporate sponsors exchange goods, money or services in return for
advertising or other benefits. This type of contract may either be done on a
board wide basis or at the local school level. In most cases, schools will not
have the authority to unilaterally enter into this type of contract.
Sponsorship agreements will vary in nature depending on the situation;
however, all agreements must be in writing. Agreements should clearly outline
the expectations, roles and responsibilities of both parties. The agreement
should be signed by the Accounting Manager or designate.
Schools should refer to specific Board policies/practices and particular
attention should be paid to Board purchasing policies.
Lease Agreements
Lease agreements, by their nature, usually extend over multiple years. School
staff do not have the authority to enter into a lease agreement for either goods
or services since the commitment for future expenditure will often exceed the
term of their Principalship at that particular school. Where lease agreements
are being contemplated at the school level, the original agreement should be
sent to the Business Manager or designate for review.
Vending Machine
A steady and reliable source of revenue for many schools is derived from sales
made through on site vending machines. Each principal may enter into these
type of contracts for their particular school. A close review of your Boards
policies and practices will assist you in this type of contract.
Where schools enter into agreements, the school will bear the responsibility
for the collecting, reporting and remitting of applicable Provincial Sales Tax
and Goods and Service Tax to the division office for external reporting.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 34 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Day To Day Contracts
The agreement to purchase a good or service constitutes a contract. While it is
true that in most cases schools do not enter into long term contracts, certainly
on a day to day basis schools are within their rights to enter into contracts. For
example schools will regularly agree to purchase (contract for) a bus service
to transport students to or from a co-instructional event. Even in these normal
day to day contractual situations, schools are still required to follow Board
policies and procedures.
Some examples of contracts that schools will enter into on a day to day basis
are:
• Yearbooks
• Agendas
• Busing (individual events by non school division bus)
• Picture Day
Caution:
When a school contract for a good or service spans an extended period of time
or commits to a significant amount of money, principals are strongly urged to
contact the board office to determine the appropriateness of such actions.
Contracts that are being contemplated may cover many areas of law and a
poorly executed contract can cost the board both in dollars and time.
Consideration needs to be given to the following:
• insurance
• safety standards
• competitive bidding
• criminal background checks
• conflict of interest
• etc.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 35 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Section Twelve
School Community Council
Background:
Under The Education Act, 1995 section 140.1, school boards in Saskatchewan
are required to establish a School Community Council for each school within
the board. These Councils are advisory bodies that may make
recommendations to the school Principal or the board on any matter. Many
School Community Councils perform fundraising activities in the name of the
school and as such are required to conform with the appropriate sections of the
Prairie South School Division No. 210 School Community Council Handbook.
The Principal is ultimately responsible for activities related to the school and
therefore is also responsible for School Community Council activities.
Objective:
To clarify:
• Ownership of School Community Council funds
• Bank Procedures
• Financial Reporting Requirements
• Record Retention
Specifics:
Ownership of School Community Council Funds
The Prairie South School Division No. 210 School Community Council
Handbook Budget and Expense Guidelines state “In the administration of
School Community Council budget allocations and funds generated through
fundraising activities, the School Community Council in coordination with the
school is bound to exercise diligence and care in the management of funds and
is responsible to provide public accountability for its activities.”
All fundraising activities and expenditures must be conducted in accordance
with Board policies. Particular attention needs to be paid to policies on
purchasing, conflicts of interest and other similar policies. This is clearly stated
in the Prairie South School Division No. 210 School Community Council
Handbook Budget and Expense Guidelines section 4.0.
Banking Procedures
Any expenditure of School Community Council money requires the approval of the
School Community Council chairperson.
The section in this manual dealing with Banking/Receipts/ Disbursements also
applies to School Community Council accounts. For the security of the funds
and to protect anyone handling money raised through School Community
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 36 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Council activities, all money needs to be counted and kept in the school for
prompt deposit to the bank account.
Financial Reporting Requirements
To enable the School Community Council to manage and monitor School
Community Council funds and fundraising activities, current financial
information is required. To achieve this goal, monthly reports outlining the
sources and uses of the funds and the current financial position of the School
Community Council are required.
Any schools with other groups administering fundraising under the name of the
school must follow the same processes prescribed for School Community
Councils.
The fiscal year for School Community Council is September 1 to August 31 of
the following year and will be reported in the audited financial statements of
the Board in the same manner as other school generated funds. Each School
Community Council will determine the reporting to be provided to them by the
designated school.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 37 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Section Thirteen
Student Representative/Leadership Councils
Background:
Student Representative/Leadership Councils often perform fundraising
activities. Keeping track of the money raised and spent is considered an
educational
experience
for
the
students
involved.
Student
Representative/Leadership Councils require financial reports that show the
results of their efforts.
Objective:
To clarify:
• Ownership of Student Representative/Leadership Council Funds
• Banking arrangements for Student Representative/Leadership Councils
• Reporting requirements for Student Representative/Leadership Councils
Specifics:
• Student Representative/Leadership Council funds and any assets
purchased with these funds belong to the Board.
• Banking transactions for Student Representative/Leadership Councils
should be integrated with the fundraising transactions in the school
generated funds bank account. There will not be a separate Bank
Reconciliation report for Student Representative/Leadership Councils.
• The accounting system should be such that transactions related to the
Student Representative/Leadership Council activities can be reported
separately.
• The reports for the Student Representative/Leadership Council should be
the same as those set out in the section titled “Financial Reporting” but
include
just
the
transactions
related
to
the
Student
Representative/Leadership Council activities.
Note:
Nothing in this section precludes Student Representative/Leadership Councils
from keeping a separate set of records to enhance their educational
experience. Such separate records can be used for comparable purposes with
the office records of the school.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 38 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Section Fourteen
Changes in Principal
Background:
Changes in Principal at schools are frequent and should not impact the day to
day administration of school generated funds.
Objectives:
To ensure that when the Principal changes, basic financial information is
transferred to the new Principal.
Specifics:
The accompanying form is to be completed by the exiting Principal and a copy
of the completed form is to be forwarded to the School Superintendent
immediately. Where possible, it should be reviewed with the new Principal in
person.
The new Principal, upon receipt of the completed document, is to verify its
accuracy and forward the original to the School Superintendent. Any
discrepancies should be clearly outlined.
If discrepancies exist, a copy should also be forwarded to the Superintendent
of Business or their designate.
The new principal should arrange for the signing authorities to be updated with
the financial institution.
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 39 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Changes in Principal
Changes in Principals
School Name: ____________________________
Incoming: ___________________
___
(Please print full name)
Date of Change: __________
________
Outgoing: _______________________________
(Please print full name)
School Banking Arrangements:
The following represents all bank accounts held in the name of the school:
Bank Account
Bank Name and Address
Names
of
Authorities
Signing Bank Balance (1)
Please be sure to attach:
� A copy of the most recent bank statement for each of the accounts listed above
� A copy of the most recent bank reconciliation for each of the accounts listed above
(1) Bank balance on date of change per school accounting system.
Initial
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 40 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Changes in Principal
Petty Cash: (from division)
� Does the school operate at petty cash fund?
If yes, the petty cash fund is what amount?
[
[
] Yes
[
]
] No
Total cash in Fund Today
Add: total Receipts on Hand
Total
$
The following represents a summary of all significant future commitments that have been entered into by the school
or School Community Council.
Initial
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 41 of 42
Prairie South School Division No. 210
Guidelines for School Generated Funds
Changes in Principal
Sign off:
The above information represents an accurate representation of the school finances as at the following date:
Signature of Exiting Principal
Sign off:
I have reviewed the above information and agree that it appears to accurately represent the financial position of the school
with the following exceptions:
Signature of Incoming Principal
Initial Release: June, 2008
Revision Date: February, 2011
Revision Date: May, 2014
Page 42 of 42