Funds Management

1. In accordance with policy P.133.FIN Management of School Council Funds, the School Council will determine whether the banking arrangements for funds managed by the council will be:.
   • Provided by the school office with the approval of the school principal; or
   • Administered by the School Council through a recognized financial institution
2. The policy requires that the Declaration of School Council Banking Arrangements be completed each year. This requirement recognizes that School Council membership changes over time and completion of the declaration helps new members recognize the importance of School Council’s responsibilities to properly manage financial matters.
3. A new declaration must be completed if banking arrangements change. A change in financial institution where the School Council banks or a decision to have banking arrangements provided by the school are two examples that will result in the need to complete a new form.
4. Bank arrangements provided by the school office will use the school’s financial institution and District’s financial management practices. Funds held for School Council purposes will be accounted for separately from other funds managed by the school.
5. A School Council that administers its own banking arrangements will maintain all of its funds in one bank account under the School Council’s name. The bank account must provide monthly statements and ensure that cleared cheques are returned in either hardcopy or electronic format.
6. The declaration is included in the Sample Forms and Templates section of the Guide.

A School Council will summarize its financial activities in a financial report which is also referred to as a financial statement. The report will show the School Council’s revenues and expenses as well as assets, liabilities and net financial position. The sources and use of funds as well as net financial position should be analyzed to show how the money was, or will be, used. The nature of School Council activities allows for a highly simplified yet informative report format.

Discussing financial information at each meeting of the School Council helps ensure that fundraising initiatives remain on track.

1. The treasurer must prepare and present a financial report at each meeting of School Council.
2. The report should be in summary form and not present personal information that should be held in confidence.
3. The report should summarize the opening balances, receipts, expenses, and closing balances for each fundraising activity undertaken by School Council.
4. Opening balances must match the closing balance shown on the previous report. The opening balance plus receipts minus expenses must equal the closing balance.
5. The report should be posted on the school’s bulletin board (and ideally its website) to inform the broader school community of School Council activities.
6. In addition to regular reporting to School Council, the treasurer must prepare a year end financial report for inclusion in the School Council’s annual report of activities for the year. The requirement for an annual report is established by Ontario Regulation 612/00.
7. A sample financial report is provided in the Sample Forms and Templates section of the Guide.
8. Year end financial reports must be submitted through an online form each year. A link to the form and instructions on how to submit the report are shared on the Supporting School Councils webpage and newsletter.

One of the best financial controls is an informed school community. The treasurer should proactively share financial information with the School Council and be ready to respond to questions from council members. The importance of maintaining timely and detailed financial records is reinforced by the School Council’s desire to review its financial position.

School Council members are encouraged to ask questions and review the financial information. Some questions to ask are:

1. Are those responsible for presenting financial information or managing financial transactions attending School Council meetings?
2. Is a financial report and bank reconciliation presented at each meeting of School Council?
3. Are bank reconciliations completed each month and approved by the council chair?
4. Are there unexplained or excessive adjustments on bank reconciliations?
5. Is the supporting information presented with the bank reconciliation? Supporting information includes the bank statement, a list of banking transactions from the School Council records, a list of outstanding cheques and actual cleared cheques (or bank provided images (front and back).
6. Are all cheques issued by the School Council accounted for, including those that are cancelled after issuance?
7. Are stop payments being issued on stale-dated cheques and supported by a reversing entry in the register?
8. Are cheques ever signed without being fully completed and supported by backup documentation?
9. Are deposit envelopes entered into the register in a timely manner? Do the entries correspond with the entries shown on the bank statement?
10. Are suppliers calling regarding unpaid invoices or commenting about invoices that are paid after they are due?
11. Are refunds of overpayments supported by detailed information from suppliers (e.g. credit note)?
12. Are refunds being issued to the same individual/company on a regular basis?
13. Are excessive amounts of supplies purchased relative to needs?

The membership of School Councils will change over time. A challenge for every council will be the continuity of operations as incumbent members leave and new ones join. Councils are encouraged to discuss and prepare for transition as part of an ongoing planning process.

The treasurer performs a key role on School Council. The procedure for the management of School Council funds requires that the outgoing treasurer facilitate the transfer of responsibilities to the incoming treasurer. Some key steps involved in the process are provided to assist councils and treasurers with the transition.

1. The outgoing treasurer will facilitate the transfer of responsibilities to an incoming treasurer. A transfer includes the transfer of cash and cheques not yet deposited remaining in the school or school council safe, physical and electronic records, software and equipment used to maintain electronic records and, as necessary, knowledge regarding past transactions.
2. The transfer is preferably made directly to the incoming treasurer and formalized in writing. If this is not possible, the transfer should be made to the School Council chair or school principal.
3. If possible, the outgoing treasurer would be available to respond to questions from the incoming treasurer for several months following the transfer of responsibilities.
4. The incoming treasurer should:

1. Review the banking arrangements and update the bank account signing officers on file at the financial institution. It is good practice to revoke all authorizations on file at the bank and to establish new ones for the current signing officers.
2. Ensure that the list of authorized signing officers for School Council transactions is updated by School Council. The list can be used to verify approval signatures.
3. Update access and passwords to systems, email accounts and other accounts.
4. Review physical records to familiarize oneself with the type of transactions encountered and to get a sense of the internal controls that have been used to manage financial activities.
5. Prepare a general ledger trial balance as at the date of transfer. Doing so ensures that all debit balances equal all credit balances. Accounting software often has a report that readily generates this list.
6. Confirm that the bank account balance as at the date of transfer agrees with the balance shown in the School Council’s financial records.
7. Review bank reconciliations to identify reconciling items that may affect future bank reconciliations.
8. Count and document money that has not yet been deposited into the bank. Both the outgoing and incoming treasurer should sign for the accuracy of money transferred.
9. Review cheque sequence numbers to ensure that there are no missing cheques.
10. Inquire and verify where records for prior years are located. The practice of storing records at the school is a recent recommendation.
11. Advise suppliers of changes in contacts (name, address, phone number).

At times, there may be differences of opinion between a principal and the School Council on the use and management of School Council funds. In such circumstances, both parties are encouraged to review the original intent of its fundraising activities as this may help resolve the issue. In addition, the school’s superintendent of instruction (SOI) may be able to assist in resolving the issue.

The District’s Chief Financial Officer (CFO) can, either directly or through other District staff, provide guidance to resolve issues. Provision is also included in the policy to allow the CFO to temporarily assume control of a School Council’s funds when an investigation of alleged financial irregularity indicates that such action is warranted. The intent of temporary control is simply to safeguard the School Council’s money for ultimate release back to the School Council. The majority of comments shown below are stated in Board policy P.133.FIN.

1. A School Council and the principal are encouraged to work collaboratively to resolve disagreements as to the appropriate use or management of School Council funds.
2. Issues which cannot be resolved through discussion and consultation with the principal can be referred to the SOI who will provide guidance. The SOI may request other District staff to assist in resolving the issue.
3. Where any individual has reason to believe that the management of School Council funds is not in accordance with the policy or may be subject to an irregularity, he or she shall bring his or her concern to the attention of the treasurer, the School Council chair, the school principal, the SOI or the CFO, as appropriate. Discretion must be exercised in determining to whom the issue should be escalated and is based on circumstances and dollar values.
4. The CFO of the District is authorized to initiate an investigation where there is reason to believe there has been financial irregularity.
5. When the results of an investigation warrant, the CFO of the District may temporarily assume control of the School Council’s funds. The assumption of control is solely focused on safeguarding the School Council’s money and to ensure the continued operations of the School Council.
6. The Director of Education will inform the Board of the assumption of control at the first available opportunity.
7. The CFO will present to the Board a plan aimed at restoring control to the School Council within 90 days of assuming control of School Council funds.