1
Kindergarten Cluster Management
FINANCIAL
PROCEDURES
HANDBOOK
2015
UCVT Early Years Cluster – Financial Procedures Handbook
2
There are many acronyms used frequently throughout the handbook.
PAC
Parent Advisory Committee
Each kindergarten has a committee of elected members who contribute to the effective
operation of the kindergarten through some administrative tasks and fundraising.
UCVT
Uniting Care Victoria and Tasmania
A unit of the Uniting Church Victoria and Tasmania
DEECD
Department of Education and Early Childhood Development
The State government body that provides funding for four year kindergarten programs.
KFS
Kindergarten Fee Subsidy
DEECD provide a subsidy to reduce kindergarten fees for families who meet the eligibility
requirements
VECTAA
Victorian Early Childhood Teachers and Assistants Agreement
All staff employed to provide a care and education to children are employed under this
agreement.
ACECQA
Australian Childhood Education and Care Quality Authority
In January 2012 all Australian states legislated to participate in a national system of Law
and Regulations.
ELAA
Early Learning Association Australia (previously KPV)
Is the peak body for employers in the children’s services system in Victoria. The Cluster
membership with ELAA provides the cluster with industrial advice and support and
includes a membership for all cluster kindergartens on non-industrial issues.
LGA
Local Government Authority
All LGA’s have a Municipal Early Years Plan that provides direction and support to families
with young children; and services in the municipality re future directions. Many facilities
are owned and managed by LGA’s.
Preamble
Across Australia there are a multitude of services for children – kindergarten, preschool,
long day care, child care, occasional care, early learning service and many more. There is
very little uniformity of the names and they all meet the same legislative requirements.
This booklet uses the term Children’s Services to describe the services that the booklet
refers to – both child care and kindergarten programs.
UCVT Early Years Cluster – Financial Procedures Handbook
3
Index
Page
2
3
Acronyms and Preamble
Index
Part 1
Introduction
5
Part 2.1
Fee Invoicing and Collection
Fee Collection - Kindergarten
Flow Chart
7
9
Part 2.2
Payment of Accounts
Authorisation process
Account coding
Processing of Accounts
Flow chart
Notes
11
13
14
Part 2.3
Petty Cash
Flowchart
Part 2.4
Budgeting
Operational budget
Fundraising budget
Income and Expenditure
19
20
21
22
Part 2.5
Financial Reporting
24
Part 2.6
Payroll
Part 2.7
Fundraising Grants and Donations
Part 3
Code of Conduct and
Confidentiality
Flowchart
Flowchart
Process
16
17
25
26
27
Notes
29
A sample of each form is attached in a separate folder
and clearly referenced throughout the booklet. These forms will also be
available online.
UCVT Early Years Cluster – Financial Procedures Handbook
4
UCVT Early Years Cluster – Financial Procedures Handbook
5
Part 1
Introduction
The financial procedures handbook provides information, direction and
processes about all financial business of the children’s service. It clearly
identifies the tasks of all the parties – PAC members, staff and UCVT Cluster.
Each kindergarten is seen as a separate entity operating within the
parameters of the DEECD cluster management guidelines. The cluster
undertakes the major responsibilities of employer, legal entity, financial
manager, and operational manger of the kindergarten. The PAC Handbook
provides guidance to shared roles and responsibilities of the PAC, staff and
UCVT-Cluster.
The PAC has the responsibility for financial direction and UCVT ensures this is
within the parameters of good stewardship and the financial viability of the
kindergarten.
Difficulties can arise when financial procedures are not followed.
When the following practices are maintained there will be no problems.
1. Accurate and correct data provided to the UCVT Finance team in
relation to fee invoices.
2. Fundraising undertaken with accountability and clear reporting to PAC.
3. Monthly reports read, analyzed and processed.
4. Timely processing of financial transactions.
5. Oversight of kindergarten financial processes.
6. Coding correctly recorded when processing accounts.
The data collection and accountability in relation to this is undertaken by the
Cluster Coordinator, with support from the staff. DEECD officers undertake
the regular ‘ratings and assessment’ visits on behalf of the national body
ACECQA. These visits determine a rating for the children’s service that is then
publically listed on the ACEQCA site where it can be viewed by families.
UCVT Early Years Cluster – Financial Procedures Handbook
6
UCVT Early Years Cluster – Financial Procedures Handbook
7
Part 2
Fee Invoicing and Collection
Kindergarten Enrolment Officer (PAC)
TASK 1: Provide children’s data to UCVT for each terms’ invoices (Form 2.5) including a
copy of the Children Eligible for a Kindergarten Fee Subsidy (KFS) (Form 2.6)
TASK 2: Provide Notification of Change for each additional enrolment or departure
throughout the year. (Form 2.7)
TASK 3: Provide data re Term Fees; Deposit amounts; Levies (Form 2.8)
TASK 4: Provide written advice in relation to processing and distribution of invoices (Form 2.8)
UCVT Invoice Processing team
TASK 1: Process invoice for each enrolment and distribute as
negotiated
TASK 2: Process all payments
TASK 3: Process statement each month for outstanding debtors
TASK 4: Outstanding fees are followed up with a phone call
TASK 5: Process of late collection of fees implemented
TASK 6: Families provided with receipt per term
Invoice Payment
Parents pay invoice within 2 weeks
by BPay, cheque to UCVT, Direct Deposit
UCVT Collection of
Late Fees Process
TASK 1: phone call to family
TASK 2: letter to family stating
enrolment will be cancelled
if fee remains unpaid
TASK 3: family data sent to UCVT
Debt Collection Agency
UCVT Early Years Cluster – Financial Procedures Handbook
8
UCVT Early Years Cluster – Financial Procedures Handbook
9
Fee collection Process- Kindergarten
UCVT undertakes the ‘work’ of fee invoicing and fee collection for all children enrolled in a
children’s service of the Cluster.
1. Collection of Children’s details and Children’s Services operating schedule.
The Enrolment Officer of the children’s service provides the following information and this
forms the basis of the UCVT work. This information is provided in templates provided by
UCVT.
Child’s name; enrolment status ( name of group, full
fee paying or KFS recipient); address of child; contact
details for parent responsible for payment of fees
Form 2.5
Fees for each program; Deposits- refundable; levies –
refundable
Form 2.8
List of children in receipt of Kindergarten Fee
Subsidy (KFS)
Form 2.6
Method of delivery of invoices to families
Form 2.8
Time frame for production of invoices
Form 2.8
Any changes to enrolments throughout the year –
children commencing through the year and children
leaving through the year. Generally families will not
receive a refund for fees paid for a child’s enrolment
and children will be invoiced for the percentage of
the term they attend if starting throughout the year.
Form 2.7
Forms 2.5 and 2.8 must be completed and returned to the UCVT Finance team. Two
weeks must be allowed for the UCVT Finance team to process the fee invoices after
receipt of data. Form 2.6 can only be completed during the first week of each term
when parents are required to show the current details of KFS eligibility to a staff
member.
2. Payment of Fees
All families will receive a fee invoice on a per term basis. They are requested to pay this
invoice within 2 weeks. B Pay or Direct deductions from an account are the preferred
manner of payment.
Each kindergarten has a Fee Policy that defines the parameters of this process.
UCVT Early Years Cluster – Financial Procedures Handbook
10
3. Late payment of fees process
Any invoices unpaid after 4 weeks will be processed according to the following plan:
 The person listed as responsible for payment of the invoice will receive a
reminder phone call. If requested a payment plan will be implemented with
a clear time frame for full payment of the invoice.
If this plan is not complied with a further phone call will follow requesting
immediate payment and will be reinforced with a letter stating that the
child’s enrolment is in jeopardy if the invoice is not paid.
A child is not entitled to attend the next term of kindergarten if there is an
outstanding invoice.
The debt will be referred to the Debt Collection Agency.
4. Receipts
Receipting is available on a termly basis for fees paid - both four, three and additional
programs. Kindergarten fees are claimable from Centre Link if a person providing care in
the kindergarten has a current CRN (Customer Reference Number). Not all kindergartens
offer this rebate. Check the individual kindergarten’s handbook for details.
Notes
1. Fee invoices are recorded as income in the financial monthly report when the
invoice is generated.
2. Fees outstanding appear on the monthly report.
3. Families experiencing long or short term difficulties with fee payment are
encouraged to contact UCVT and we will establish a payment process with them.
4. Costs incurred through the use of the approved Debt Collection Agency will be
attributed to the kindergarten.
5. Debtors reports are available monthly.
References:
The Kindergarten Guide 2015 – DEECD (not available yet – see 2014 version)
This document provides the data required by the Department of Education and Early Childhood
Development in relation to funded kindergarten programs. This document is updated annually and
includes details related to KFS eligibility and grant amounts; Early Start eligibility and grant
amounts
www.education.vic.gov.au
Fee Collection process is undertaken in Long Day Care services and complies with
DEEWR requirements and managed through Child Care Management System.
UCVT Early Years Cluster – Financial Procedures Handbook
11
Payment of Accounts Flow Chart
Treasurer/ Authorized person (PAC)
TASK 1: Operation of the kindergarten will produce accounts for all goods ordered
and services received.
TASK 2: Treasurer to ‘approve’ all accounts for payment that are received for the
kindergarten. The approval process is to stamp, add the required code for
each account and sign the document.
TASK 3: Complete list of these accounts and forward all documentation to UCVT.
(Form 2.1)
TASK 4: Ensure that approval authority limits are maintained.
TASK 6: The PAC can provide written direction to UCVT to pay specific invoices
automatically.
Reimbursement
of costs to
individuals –
staff or PAC
members
TASK 1: Individual to
complete form and
return to UCVT for
reimbursement.
Receipts must be
attached. (Form 2.2)
Emergency Payments
TASK 1: Emergency payments can be negotiated
between the PAC and UCVT.
UCVT Account Processing team
TASK 1: Approved accounts are processed and
paid on Tuesdays and Fridays and the
transaction recorded in kindergartens
financial report.
TASK 2: Payments are made by Direct Deposit
into the business bank account.
TASK 3: Petty cash will be reimbursed on
receipt of a completed Petty Cash
reimbursement form.
Petty Cash
TASK 1: Staff will be provided with a
Petty Cash amount.
TASK 2: Staff will complete a
Reimbursement of costs form and
forward with all original
receipts attached. (Form 2.2)
UCVT Early Years Cluster – Financial Procedures Handbook
12
UCVT Early Years Cluster – Financial Procedures Handbook
13
Payment of Accounts Notes
It is the responsibility of the PAC and staff to order all equipment, goods and services for the
children’s service within the authorized limits – up to $5,000 for PAC and $500 for the staff.
Approval for goods and services outside these limits requires the written approval of the UCVT
Director. A written request to the UCVT Director will be processed promptly and if sufficient funds
have been allocated in the budget and are available, approval will be immediate.
Authorization of accounts
Annually the PAC will complete the Cost Centre Authorisation Form (Form 2.4) for both operational
and fundraising activities; and return to UCVT. The people listed on the Authorization Form for
both the Operational budget and the Fundraising budget are the people who can authorize
payments. These people will be nominated and recorded in the minutes at the first meeting of the
PAC.
Fundraising budget
To provide clearer accountability for fundraising activities a separate budget with related account
codes (Attachment 1) has been set up for each children’s service. When coding fundraising related
accounts the specific coding will clearly identify the transactions and minimize mistakes.
Processing of accounts
The Treasurer/ Authorised person will process all accounts on a regular basis. UCVT provides a
partially pre-coded stamp for each children’s service for the operational account CK4.... and the
fundraising account CK45..
The Treasurer/ authorized person will:
1. Check each account is an approved expenditure
2. Ensure it is within the budgeted amount for the item
3. Stamp all accounts
4. Complete the remaining coding and sign
5. Complete the List of Invoices to be paid (Form 2.1)
6. Attach all documentation – stamped accounts
7. Forward all documentation to UCVT.
There are three means of forwarding stamped accounts to UCVT:
 Delivered through Postal system
 Scanned and forwarded to Hang at hang.nguyen@victas.uca.org.au or
accounting@victas.uca.org.au
 Email. An approved invoice sent via email will require prior authorization
from UCVT Finance team that emails received from that address are
authorized for payment.
UCVT Early Years Cluster – Financial Procedures Handbook
14
Automatic payments for invoices directed to UCVT can be approved on an annual basis. This will
be approved by the PAC and forwarded in writing to the UCVT Kindergarten Coordinator.
UCVT undertake payments twice per week and the preferred manner of payment is directly into a
bank account. If these details are not recorded on the invoice a request will be made to the
authorized person to provide these.
Emergency payments can be made with a written request and approval from the PAC/Treasurer
and the UCVT Kindergarten Coordinator. An example of this would be payment of a plumber
undertaking an emergency plumbing situation.
If a PAC proposes a purchase or plans a financial activity that is outside of budget
parameters the PAC will need to discuss this at a meeting and have the outcome recorded in
the minutes.
There are several issues that require consideration.
 Talk to the UCVT Kindergarten Coordinator.
 Does the children’s service have accumulated reserves from previous years that can
be transferred to the operational budget?
 Can the project be delayed until funds have been accumulated through fundraising?
 Can reconsideration of the project occur at another meeting?
Account codes (Form 2.20)
UCVT provides a list of Account Codes for all transactions related to the operation of the children’s
service. Brief explanations of each code are provided. The consistency of coding is an important
aspect of accuracy in financial reports.
The coding ensures transactions match the income and expenses of the budget pro forma and are
accurately reported.
For example the code CK 40..– 4730 reflects that for this children’s service the electricity bill has
been approved for payment. This amount will be recorded in the transactions for that children’s
service and will be reflected in the next month’s financial report.
Purchases of capital equipment will be coded CK 40.. - 7100, and the UCVT Finance team will
calculate depreciation and finalize the activity.
Petty Cash and Debit cards
Petty cash by definition is for purchase of low cost items. Each children’s service has an approved
amount for petty cash purchases. This can be varied with written approval from the PAC. Staff
generally manage this process. Petty cash forms are completed with all transactions listed including
coding for each item and then submitted to UCVT with all receipts attached. UCVT Finance team
will process this and reimburse the petty cash ‘tin’ promptly. Petty cash reimbursements are
signed off by the senior staff member.
UCVT Early Years Cluster – Financial Procedures Handbook
15
Preferred providers
Most children’s services purchase the majority of their goods from a small list of providers. E.g.
Bellbird, MTA, Officeworks, Educational Experience and others. In 2014 UCVT will undertake the
task of negotiating with regular suppliers to establish a list of Preferred Providers where a discount
will automatically apply to all cluster members.
GST
This is claimed back for each relevant transaction as UCVT is a GST exempt business. This is
processed by the UCVT Financial team.
UCVT Early Years Cluster – Financial Procedures Handbook
16
Petty Cash Process Flow chart
Cash Purchases

Receipts
Debit card purchases

Reimbursement of
approved expenditure

- date, product and cost
+
Hang Nguyen
Accounts Accounting Officer
Finance team
130 Little Collins St
Melbourne 3000
OR
Hang.nguyen@victas.uca.org.au

Mailed or
scanned to
Completed form
-Petty Cash Claim
-Reimbursement form
– dated and signed
UCVT Early Years Cluster – Financial Procedures Handbook
17
Petty Cash and Debit Cards Notes
Petty cash by definition is for purchase of low cost items – less than $20.00. Each kindergarten has an
approved amount for petty cash purchases. This can be varied with written approval from the PAC.
Staff generally manage this and submit a completed Reimbursement form ( Form 2.2) on a regular basis
to reimburse the amount of petty cash.
Some PAC’s have also requested petty cash amounts and these are processed in the same way.
Generally petty cash transactions are for items that meet the criteria for Consumables – code – 3260; or
Teaching Materials – code - 2225.
Reimbursements are made in the form of a CASH cheque or a transfer of funds to the Debit Card.
Prompt and accurate completion and submission of these forms ensures petty cash is always available in
the kindergarten.
A system of Debit cards will be introduced shortly. These cards hold a pre-loaded amount of money for
larger purchases. The Debit Card system will be acquitted in the same manner as Petty Cash with each
transaction coded and supported with a receipt.
The Debit Card use is similar to a credit card, however there is a limited amount of pre-loaded money.
For a larger approved purpose e.g. replacement sand for the sand pit; an additional sum of money can
be ‘loaded’ on the Debit card to cover the cost of the purchase. Approval for these transactions must be
planned prior to the activity.
The Treasurer/ Chairperson and Kindergarten Coordinator can request UCVT Finance team to increase
the funds on the debit card. This request can be made during business hours or via email for the amount
quoted for the purchase.
Reimbursements will be made when petty cash is insufficient. There are occasions when a staff member
or individual PAC member has paid for an approved purchase ‘out of their own pocket’ that requires
reimbursement. Approval from the PAC or Kindergarten Coordinator must be gained prior to the
purchase. Reimbursements will not be made unless correctly authorised. For example a staff member
on holiday overseas purchases a number of cultural interesting items. They will be reimbursed on
receipt of the completed form and substantiation of the cost of the purchase.
Claim forms process
Completed forms plus all receipts are submitted by mail or scanned to:
Hang Nguyen – UCVT Finance team
9251 5239 or hang.nguyen@victas.uca.org.au
UCVT Early Years Cluster – Financial Procedures Handbook
18
UCVT Early Years Cluster – Financial Procedures Handbook
19
Budget Development - Funding and Budget Notes
The development of an annual budget provides a framework within which the children’s service
operates. This process will include a review of current operations and anticipated operations for
the following year.
The demographics of each community changes and the kindergarten must reflect parent
expectations for their children’s kindergarten years. Groups change as the demand for four or three
year old programs rises and falls. Kindergartens are being asked by the government to be creative
in planning for kindergarten sessions as the current trend is parents preferring longer sessions.
Government funding
The government through DEECD provides a per capita grant to kindergartens offering a four year
old kindergarten program. This is a per capita funding and is received by the Cluster manager and
allocated in each budget. DEECD requires the cluster to maintain current enrolments on the DEECD
data base- Kindergarten Information Management (KIM) and the funding is based on this data.
The government also provides additional funding – Kindergarten Fee Subsidy (KFS) for families
in specific situations: holders of Health Care Cards; specific Visa restrictions, triplets. The full
details for this can be found on www.deecd.com Families are requested to inform the enrolment
officer or educators in the kindergarten to ensure the KFS is applied for in a timely way.
Setting fees
Setting the term fee is the most critical aspect of the budget process.
INCOME
DEECD Funding
Children’s fees
Other–bank interest
-
Expenditure
Staff salaries
Operating
expenses
=
Small
operating
surplus
A small operating surplus allows peace of mind for contingencies that may arise.
When all costs have been determined including staffing requirements; the income is identified.
Government kindergarten funding is based on enrolments and the only remaining factor is
children’s fees. They must be set to balance the budget. The general ‘rule of thumb’ is to increase
fees by 2-3% annually to meet general increasing costs. However if there are changes in
anticipated enrolments this can have a dramatic impact on the budget. Budgets must be developed
on anticipated enrolments and this must be addressed in a conservative manner. Kindergartens
who are members of a Central Enrolment Register are provided with regular data of enrolment
numbers in both three and four year old programs.
The Treasurers role is to present the proposed budget to the PAC for approval. The PAC role is to
monitor and review monthly financial reports to ensure the kindergarten is operating within the
budget structure.
UCVT Early Years Cluster – Financial Procedures Handbook
20
Operational Budget
Each children’s service operates within the financial parameters of a ‘break even – small surplus’
budget to ensure ongoing financial viability. This process occurs towards the end of the preceding
year. The UCVT Finance Team assist the PAC members, especially the Treasurer with this process.
Staff input is sought throughout the process. When the budget is completed it will be Moved and
Accepted by the PAC at their next meeting.
Development of Operational Budget
There is specific information to gather prior to developing the budget:
 Proposed operating schedule – anticipated enrolments for four and three year olds, group
sizes, hours of sessions; fee amounts; staffing requirements; anticipated expenses
 Current years financial reports and an understanding of the present financial position of
children’s service
 Any major activities proposed – playground renovation; replacement of children’s tables
and chairs; purchase and installation of rain water tanks etc.
The process
1. Ensure the three tasks above have been completed and information available.
2. Discuss any significant changes of operation with the UCVT Kindergarten Coordinator.
3. Initiate meeting with UCVT Finance Team and UCVT Kindergarten Coordinator.
4. UCVT Finance team will meet with the PAC members to upload data into the Budget
software. UCVT will have preloaded payroll data; DEECD grants in the budget pro forma.
5. The purpose of the meeting is to create a first draft budget.
6. The outcome of a surplus or deficit will determine the adjustments and negotiations to
occur. Fees can be raised or lowered; costs reduced where possible; alternative sources of
income explored. (It is financially sensible to increase all fees in line with increased costs
each year.)
7. The PAC and UCVT Kindergarten Coordinator will adjust the budget to achieve a positive
outcome and a financially viable children’s service.
8. At no time will a budget be approved with fundraising as an integral aspect of the budget to
achieve a break-even point. However fundraising can be identified and used to assist with
the achievement of a particular goal.
9. The final budget will be presented to the next PAC meeting for approval. When this is
complete UCVT Finance Team will insert the data into the reporting format for the following
year.
UCVT Early Years Cluster – Financial Procedures Handbook
21
Fundraising Budget
Each children’s service will also develop a Fundraising budget for the year. This budget operates on
the same basis as the Operational budget (codes and reporting). The purpose of this budget is to
ensure costs relating to fundraising activities are attributed to the income from each activity. This
will assist the PAC to ensure an effort for reward balance is working.
A primary goal of fundraising is to provide additional resources and activities that allow the
children’s service fees to remain lower. Fundraising activities should always have an identified goal
for parents to relate to and an outcome that parents can see. The funds should be used to purchase
equipment or provide an outcome for the children enrolled in that year. Funds can be accumulated
over several years for an identified purpose – major renovation.
When the PAC make a decision to spend fundraising oncome on equipment or opportunities for
children Form 2.9 Request for Transfer of Fundraising funds will be completed by the PAC. This
money will then be transferred from the fundraising budget to the operational budget.
Development of Fundraising Budget
1. Gather all necessary resources and data – current years fundraising data; identified unspent
fundraising from previous year. Check reports of all fundraising activities in the previous
and current year to determine activities that are financially successful.
2. Propose a calendar of fundraising events for the following year. This will include successful
activities from current year and proposed new activities. When planning social activities
determine the focus – fundraising or social. Some activities can be planned with an
outcome for low fundraising goal and others for profit.
3. Identify an achievable goal for the year.
4. Discuss any significant projects for the following year – funding to replace children’s tables
and chairs; purchase and installation of rain water tanks, etc.
5. Discuss any significant changes of activity with the staff.
6. This data will be included in the meeting with UCVT Finance team and UCVT Kindergarten
Coordinator at the same time as the operational budget is developed.
Monthly financial reports for both the operational and the fundraising budget will be forwarded to
the Treasurer and PAC regularly.
UCVT Early Years Cluster – Financial Procedures Handbook
22
Income and Expenditure Notes
Income
The two major items of income of the children’s service are the fees paid by the family and the
funding from government. Kindergarten funding is the responsibility of DEECD - per capita grant
and KFS, and Child Care Benefit in long day care settings is the responsibility of Family Assistance
Office and DEEWR. Interest from bank investments, grants, donations and fundraising are the
remaining income sources.
Grants received by UCVT on behalf of a children’s service are recorded as income. UCVT will
request support from the PAC to complete the accountability reports when required.
Expenses
Salaries for staff are the most significant component of the expenses of operating a children’s
service. All staff are employed under the relevant awards or agreements.
 Kindergarten staff are employed under the Victorian Early Childhood Teachers and
Assistants Agreement (VECTAA)
 Child Care staff are employed under the Children’s Services Award
 Administration staff are employed under the Clerks Private Sector Award 2010
The ratios of adult to child and qualified teacher to child are determined by Australian Children’s
Education and Care Quality Authority (ACECQA) – the national body that provides the National Law
and Regulations and this data prescribes the number of staff required.
An amount is budgeted annually to replace children’s equipment due to wear and tear. To ensure
children are accessing current educational and cultural materials some new equipment should be
purchased each year. The day to day operational costs of the materials used to present the
children’s program – paint, paper, buckets and spades, scientific materials, foodstuffs etc. are quite
significant and essential.
Training is an essential component of educators’ lives. There are requirements for staff to have
training in first aid, asthma, anaphylaxis, child protection as identified in the ACECQA Regulations
to ensure children’s wellbeing is met. In addition to this is the expectation that all educators will
update and extend their knowledge regularly to ensure children are offered appropriate challenges
and relevant programs based on current research. There is a requirement in the VECTAA for
minimum hours of training for all educators.
UCVT Administration charge. The services provided by the Cluster – UCVT are charged to the
children’s service as 6% of the income of fees and government grants. This has been varied in some
cases where some tasks have been undertaken by PAC or Administration Officers based in the
UCVT Early Years Cluster – Financial Procedures Handbook
23
children’s service. This amount is charged monthly on actuals. This will cause significant variation
across the months as it is based on real income. However it will also be an accurate record and not
require an adjustment at the end of the year.
Budget outcomes
It is an assumption that each annual budget will have a break-even or small-surplus outcome. Some
years of low enrolments challenge this premise and if the children’s service has significant reserves
and the PAC make a written request to the UCVT Director they can continue to operate. However if
there are not reserves the children’s service will need to re-plan the operating schedule.
Financial reserves
All children’s service financial reserves are held in accounts in UCA Funds Management. Interest
accrued from these accounts is attributed to the children’s service.
UCVT Early Years Cluster – Financial Procedures Handbook
24
Financial Reporting Notes
Monthly financial reports are produced for each children’s service - reporting against the approved
budget. This is emailed to each Treasurer and Chairperson after it is produced –approximately 7 working
days into the following month.
This report includes all transactions processed in the previous month and reports include month to date
(MTD) and year to date (YTD) figures. It provides the PAC with the opportunity to analyze the current
financial position of the children’s service. A list of all transactions for the month can be provided to the
PAC on request.
Regular automatic transactions:
 DEECD grants are attributed monthly
 Salaries are attributed as actual cost in that monthly period
 Children’s fees are attributed when invoices are developed
 UCVT administration charge is calculated on a monthly basis of actual income
 Depreciation expenses are attributed on an annual monthly basis.
There is no January financial report produced by the UCVT Finance team to a children’s service as
minimal transactions occur in January. However during January the annual financial reports are
prepared for each children’s service for the previous calendar year. These will include adjusted amounts
including variations to DEECD payments and staff entitlements. When finalized this is provided to the
PAC for discussion and acceptance at the next PAC meeting.
The monthly financial reports are presented in three parts:
1. Income and expenditure – Profit and Loss Statement
Indicates the current ‘ytd’ and ‘mtd’ status of each cost centre. A full list of transactions
contributing to this is available through the Kindergarten Coordinator. Coding errors are often
discovered at this stage when a cost centre is outside the predicted figures.
2. Balance Sheet
This area reflects the accrued monies for fundraising, staff entitlements and funds.
The outstanding debts are listed here.
Capital values etc that do not reflect the manner in which children’s service’s budgets are
developed as facilities are usually owned by other bodies – the Uniting Church in Australia
Property Trust (Victoria); Local government bodies etc.
3. Summary of financial statement.
This section provides a quick overview of the report.
UCVT Early Years Cluster – Financial Procedures Handbook
25
Any further information can be sought from the UCVT Kindergarten Coordinator or the UCVT Finance
Team.
Payroll Process Flowchart
All employed staff of the UCVT Early Years Cluster
Kindergarten Staff
Child Care staff
Administration staff


No fortnightly time sheets.
Variation forms submitted
when leave is taken or
approved additional hours
worked
All forms to be signed by
senior staff member and
forwarded according to
payroll schedule
Time sheets
completed
fortnightly

Mail:
Faxed:
Email:
Scan:
Payroll Officer 130 Little Collins Street Melbourne 3000
Payroll Officer 9654 1019
Accounting@victas.org.au
Payroll Officer s Vivian.Farrugia@victas.uca.org.au
Michelle.Blackney@victas.uca.org.au
Queries can be addressed to
Kindergarten Coordinator Dannie Dupleix
9251 5696
Payroll Officers
Viv Farrugia
9251 5234
Michelle Blackney 9251 5240
UCVT Early Years Cluster – Financial Procedures Handbook
26
Payroll Processes
The payroll team process all cluster staff salaries according to the relevant awards:
VECTAA 2009
all kindergarten staff
Children’s Services Award
all long day care staff
Clerks – Private Employer Award
administration staff
Staff can access award information through the internet or by contacting the UCVT Kindergarten
Coordinator.
The payroll staff will pay all permanent staff according to the details in each staff member’s letter of
appointment in compliance with the relevant award. Payroll staff receive all updates and amendments
to awards and apply these in the correct time frame as per the advice from ELAA or Jobs Australia.
There are three payroll processes:
1. Auto pay
Kindergarten staff (permanent) are on ‘auto pay’. They do not submit regular
time sheets as they are paid their ‘normal hours’ and conditions as per their annual letter of
appointment.
Any permanent change of hours of employment will be confirmed in writing (Payroll Memo) by
the UCVT Kindergarten Coordinator.
All staff are required to complete a Staff Attendance Record each day of attendance. A draft
‘Sign In and Out” book is provided to each service.
All Payroll Forms are available from UCVT and available on line and are included in the Staff
Payroll Procedures.
2. Time sheets
Child Care staff are required to complete a fortnightly time sheet. Time sheets
are signed by the senior staff member prior to submission. Time sheets are submitted to payroll
as per annual schedule.
All staff are required to complete a Staff Attendance Record each day of attendance (Sign in and
Out Book).
3. Relief and emergency staff process (VECTAA)
Relief staff - If a permanent staff member is available to work to replace an absent staff
member from the cluster staff group they will be paid their normal hourly rate for the additional
time worked at 1.25% for assistants and 1.20% for teachers. Additional hours do not accrue
entitlements as per normal hours. A variation form will be submitted on a fortnightly basis
according to the payroll schedule.
Emergency Staff – If a staff member works as an emergency staff member they will be paid
according to the VECTAA.
If relief or emergency staff are recruited from an agency they will provide the staff member on
the premises with their time sheet for the period to be signed. They submit this to the agency
UCVT Early Years Cluster – Financial Procedures Handbook
27
who invoices the cluster. If these accounts are received at the kindergarten they are approved
through the normal accounts payable process.
Fundraising, Grants and Donations
Fundraising is an important task for the PAC. There are both social and financial goals and
these need to be clearly agreed to before any activity is undertaken. Activities to achieve a
financial outcome should be carefully planned and costed to ensure the work vs. financial gain
is balanced.
The PAC often includes a fundraising coordinator or fundraising team who develop an annual
calendar of activities for approval by the PAC.
Reports of current fundraising activities should be presented at each PAC meeting with the
financial monthly report. A risk assessment form will be completed for all fundraising activities
and forwarded to UCVT Kindergarten Coordinator. If the risk is seen as significant the UCVT
Kindergarten Coordinator may follow up with the UCVT Insurance team to verify the activity is
specifically covered by the insurance policy.
Planning Process









Plan activity
Complete JSA (Job Safety Analysis) – risk assessment form (Form 2.15)
Establish time frame and organizational costs
Estimate income
Present to PAC Meeting in a written format including all costs. (Form 2.11)
Prepare a separate running sheet/ budget for each fundraising activity
Code invoices correctly to ensure all costs are allocated appropriately and the true costs
of each activity are identified
Final task is to calculate surpluses
Bank money into UCVT account completing and forwarding coding form to confirm this
transaction
Each kindergarten has a separate code - CK 45…. The third digit is the identifier for the
kindergarten and the second digit indicates it is a fundraising budget code.
Throughout the year the PAC may have raised a $2,000 surplus from a significant activity and
then at the next meeting of the PAC agreed to spend this money on computer equipment such
as a tablet for the children’s program.
The money required for this purchase would be
transferred to the operational budget – code CK 40… and then the items purchased and the
invoice coded CK40… - 7100 and the GST will be claimed through the normal processes.
UCVT Early Years Cluster – Financial Procedures Handbook
28
Grants
The PAC will often have the opportunity to apply for a grant – local or state government,
philanthropic organisations or community organisations. When the application is complete it
must be forwarded to UCVT for sign off by the Director UCVT unit.
Successful grant applications are implemented by the PAC with the support of the UCVT
Kindergarten Coordinator and all related financial transactions and accountabilities are
undertaken by the UCVT Finance team.
Discuss any proposed grant applications with the UCVT Kindergarten Coordinator.
Donations
Financial donations will be banked through the UCVT banking processes.
The funds are then available to the PAC to expend. Receipts can be produced by the UCVT
Finance team.
UCVT Early Years Cluster – Financial Procedures Handbook
29
Code of Conduct and Confidentiality
Code of Conduct Policy
All members of the PAC will be asked to read the Code of Conduct Policy and complete a form (Form
3.2) acknowledging they understand and will comply with the policy.
Conflict of interest issues must be discussed at PAC meetings and individuals are required to declare any
conflict of interest they may have in any financial discussion.
The PAC is the body that plans and undertakes activities on behalf of the children’s service and all
financial transactions must be open and honest. All decisions must be recorded in the minutes of a PAC
meeting and approved by the majority of those present.
Remember the phrase- If it is too good to be true – then it probably is!
Privacy and Confidentiality Policy
All members of the PAC will be asked to read the Privacy and Confidentiality Policy and complete a form
(Form 3.2) acknowledging they understand and will comply with the policy.
The PAC is the body that plans and undertakes some activities on behalf of the Approved Provider of the
children’s service and all activities involving details of parents and children must be handled in a
confidential manner consistent with the Privacy and Confidentiality policy.
Remember the phrase- what happens in Vegas – stays in Vegas!
UCVT Early Years Cluster – Financial Procedures Handbook
30
UCVT Early Years Cluster – Financial Procedures Handbook