Administrative Procedure 511

School Generated Funds

Background

School Generated Funds are for goods and services or activities that are only for enhancements or extras that parents and staff want for their schools. School divisions may not fundraise for instructional services or basic instructional needs for ECS-Grade 12.

An independent review and audit of school generated funds, which are administered at the school level, and form part of the Division’s financial statements and monthly reporting, is essential for maintaining credibility and financial accountability for the funds that are generated.

Procedures

  1. The purpose/use for School Generated Funds for activities must be clearly identified to parents/guardians.  Where surplus funds are not expected to be refunded to parents/guardians, the alternative use must be communicated at the time of collection. School Generated Funds profits from rentals and the sale of goods or services must be included in the budget planning of the school and reporting to School Council and the Division.
  2. The Division requires that the general principles of accounting practice be applied to the management of all funds collected by schools.
  3. The Principal shall be responsible for the administration of school generated funds and shall do monthly reconciliation of the accounts, review of any surpluses, and their uses for students.
  4. Principals shall use an accounting system in the format prescribed by the Associate Superintendent, Business and Finance or designate.
  5. All transactions shall be controlled and recorded in the school’s prescribed accounting system and bank account, and are subject to audit by the Division’s internal and external auditors.
    1. Disbursements from each account must have supporting documentation and shall be maintained on file for audit purposes.
    2. All revenues are to be recorded in the Division’s online fees system and reconciled to the bank deposit books.
    3. If rhe school has a bank account, it shall be reconciled each month, verifying all deposits and disbursements.
    4. The school shall do a monthly review of the individual school generated funds to ensure no deficits or surpluses are returned or collected.
  6. There shall be two (2) signing authorities for each bank account, one (1) of which must be the Principal and one (1) of which must be the school Accounting Clerk or Senior Administrative Assistant where there is no Accounting Clerk and Associate Superintendent of Business and Finance and the Director of Business Services. Each cheque shall require two (2) signatures.
    1. An internal audit of the school accounts will be conducted when one (1) of the school signing authorities leaves the school.
  7. All monies collected by the school for a designated purpose must be used for the purpose so designated.
  8. All undesignated monies collected by the school are to be recorded as revenue and may be spent in the manner determined by the Principal in consultation with staff and the School Council to enhance educational offerings. The revenue generation and expenditure activities shall be consistent with the District’s Three-Year Education Plan/Annual Education Results Report and School Growth Plans, and follow intent and procedures of Administrative Procedure 520: Fundraising.
  9. Money from school generated funds is not for the personal use of staff, students or others.
  10. An internal auditor shall visit each school periodically during the school year to review the accounting records and procedures.
    1. Internal process and control will also be subject to review during the audit process.

Adopted:

September 21, 2016

Amended:

February 19, 2020

Reference:

Section 52, 53, 55, 68, 137, 138, 139, 140, 141, 142, 143, 197, 222 Education Act

Societies Act

Funding Manual for School Authorities

Guide to Education ECS to Grade 12

Policy and Requirements for School Board Planning and Reporting

School Authority Planning and Reporting Reference Guide

Cross Reference

AP 520: Fundraising