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Procedures for School Council Funds

Procedures for School Council Funds. Presented by Terry Jakobsmeier. Part I - Ontario Regulation 612/00 and PSAB Part II - TDSB Financial Management Procedures Part III - Funds Available to Support School Councils Part IV - Insurance. Part I.

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Procedures for School Council Funds

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  1. Procedures for School Council Funds Presented by Terry Jakobsmeier

  2. Part I - Ontario Regulation 612/00 and PSAB Part II - TDSB Financial Management Procedures Part III - Funds Available to Support School Councils Part IV - Insurance

  3. Part I Ontario Regulation 612/00 and PSAB

  4. Ontario Regulation 612/00 • Regulation is found in Ontario Ministry of Education booklet entitled ‘School Councils - A Guide for Members’ • Item #22 - Fundraising • Item #24 - Annual Report 1

  5. PSAB • Public Sector Accounting Board standards were implemented for School Boards in 2004 after consultation with School Boards, Boards’ external auditors and Canadian Institute of Chartered Accountants • PSAB has set financial reporting standards and generally accepted accounting principles for governments 2

  6. PSAB • requires that School Council financial information BE REPORTED AS A CONSOLIDATED ONE LINE ITEM IN THE BOARD’S FINANCIAL STATEMENTS • Clarification from Ministry 2

  7. What does PSAB mean for School Councils • Prepare and submit an annual financial report to the Board (called the PSAB report) • Includes: • Bank Reconciliations • Bank Statements • Cash Flow Report

  8. Part II TDSB Financial Management Procedures

  9. School Council Funds Procedures • Accountability • Definition of School Council Funds • Plan (Budget) • Use of School Council Funds

  10. Accountability • Ensure all funds received are adequately safeguarded • Controlled through proper accounting procedures • Transparency protects you, the school council, the school and the Board • not vulnerable to suspicions 3

  11. Definition of School Council Funds • Funds raised or collected to enhance programs and to support specific school initiatives • Funds raised may not be used to provide resources necessary for the delivery of curriculum or a safe learning environment, i.e. structural repair, sanitation, emergency repair, textbooks required to delivery curriculum, school administration, and staff positions covered under collective agreements 4

  12. What is a Fundraising Plan • A plan or budget should address the following issues: • Use of surplus funds (from prior year) • Fundraising initiatives to be undertaken for the coming school year • Use of other School Council funds anticipated during the school year 4

  13. Who should develop the Plan? • Develop the Plan in consultation with the Principal and School Community • Principal must pre-approve all fundraising activities • School / System fundraising calendar • Competition for the same dollar 4

  14. Use of School Council Funds • Funds raised must be used for their intended purpose • Must be clearly defined prior to start of fundraising event • Used within school year, unless designated for a specific future project 4

  15. Use of School Council Funds • Expenses cannot exceed revenue (unless prior approval from Council) • Account cannot be in a deficit position • Income and expense for a specific project must be reported annually • Cannot be used to offset or pay salaries of permanent or casual employees 4

  16. Donations and Gifts-In-Kind • All accepted donations/gifts-in-kind become exclusive property of TDSB • Board will administer donated funds according to the intent of donor • Every attempt will be made to honour the intent of non-monetary gifts • Use, replacement or disposal at the discretion of TDSB 5

  17. Registered Charitable Organizations + Foundations • Separate legal entities registered with Canada Revenue Agency • Must comply with Income Tax Act • Must have approval of Board to be affiliated with school • Must show proof of current registered charity status • employees cannot be officers of organization 5

  18. General Fundraising • Other fundraising in support of non-profit and charitable organizations cannot be of a religious or political nature 5

  19. TDSB Fundraising and Advertising Policy • To provide guidelines to direct schools when planning fundraising activities • Policy applies to all fundraising activities • Policy P.021 BUS and Operational Procedure PR.508 BUS (Fundraising) • Policy P.006 BUS and Operational Procedures PR.507 BUS (Advertising) 34

  20. Financial Management • Accounting Controls • Quicken • Banking Arrangements • Banking Processes

  21. Accounting Controls • Ensure that School Council Funds are kept in a separate bank account in the name of the Council. • Ensure that proper accounting records are maintained and up-to-date for all School Council revenues and expenses. 6

  22. Accounting Controls • Monitor the status of the funds on a monthly basis by reviewing and signing the Bank Reconciliation Summary Report and Cash Flow Report. • Report status of funds to School Council members on a monthly basis. 6

  23. Accounting Controls • Ensure that division of duties exists so as to maintain adequate internal controls. • Records must be retained for 7 years 6

  24. Quicken Software • Quicken XG 2006 Accounting Software Package • Standard for the Board • Used to track all financial activity of the School Council Account • Quicken Training for School Council members 6

  25. Benefits of Quicken • Simple to use • Bank Reconciliations can be done quickly • Provides fast and easy reporting • by Account • by Category (Event) • Enables monthly reporting to Council in a consistent manner 6

  26. Banking Arrangements Bank Account • All School Council Funds should be maintained through one bank account. • The Bank Account must provide monthly statements (not a passbook) • TDSB recommends NYCCU. • No personal use of the bank account is allowed • Monthly bank reconciliations must be completed by the school council treasurer & reviewed (signed) by the school council chair. 7

  27. Banking Arrangements Signing Officers • School Council/bank agreements must indicate that a minimum of two signing authorities are required for a cheque. • The School Council Chair and Treasurer shall have signing authority on the bank account, with a recommendation that the Principal have co-signing authority. 7

  28. Banking Arrangements • Signature stamps must not be used. • Changes involving signing authorities must be communicated to the financial institution in writing as soon as known. 7

  29. Banking Arrangements Cheques • All cheques must be pre-numbered and used sequentially. • Blank cheques must not be pre-signed. • No cheque shall be signed unless the payee, date and amount have been recorded and supporting documentation provided. 8

  30. Banking Processes Separation of Duties • Ensure that division of duties exists so as to maintain adequate internal controls. 9

  31. Banking Processes Deposits: • One person to count the money in the presence of another person, complete the deposit voucher and record details in the deposit log • Funds are not to leave the school for counting 9

  32. Banking Processes • Another person to count money submitted and verify details • complete the Bank deposit slip and deposit funds in Bank, on a timely basis • Enter a transaction record in the Quicken register • Secure the Funds! At the school in the school safe, until time of deposit. 9

  33. Banking Processes Payments • All payments must be made by cheque - not by using cash collected • One person requests cheque, i.e. completes payment voucher and attaches Original receipts • Another person to record details of the cheque in Quicken Register and prepare cheque 10

  34. Banking Processes • Authorized signatories to review supporting documentation, verify expense, and sign cheque 10

  35. Banking Processes Adjustments (see Page 11) • adjusting entries can be made to the Quicken Register to: • record NSF cheque • record stale-dated/lost cheques • correct amounts, etc. 11

  36. Banking Processes Bank Reconciliation • complete bank reconciliation monthly, using Quicken • ending bank balance less: Outstanding Cheques plus: Outstanding Deposits • equals adjusted Bank Balance • which matches the Register Balance

  37. Banking Processes Records Maintenance • File and store monthly all documentation associated with the financial activity of the School Council Bank account • Package and store each reporting year at the school in a secure, accessible location • Records must be retained for 7 years as per Canada Revenue Agency 13

  38. Reporting • Monthly Quicken reports for review by School Council Chair • Reconciliation Summary • Copy of Register • Cash Flow Report 14

  39. Reporting • Yearly – Required by TDSB • Copy of Prior Year July 31 Bank Statement and Bank Reconciliation • Statement of Activities (Inflows/Outflows) from Quicken Report • Copy of Current Year July 31 Bank Statement and Bank Reconciliation 14

  40. PSAB Report Form

  41. Part III Funds Available to Support School Councils

  42. Money Money Money • TDSB Funds to Support School Council • Ministry Funds • Ministry Funds by Grant Application

  43. TDSB FUNDS TO SUPPORT SCHOOL COUNCILS • Elementary and Secondary schools $1.25 per pupil • Allocation is set no less than $300 and no greater than $1,000 per school • Allocation is for school council related costs that schools incur (photocopying, supplies, professional development, communications, meeting expenses)

  44. MOE FUNDS TO SUPPORT SCHOOL COUNCILS • Permanent Ministry funding, announced December 2005 • “Parent Involvement Funding” at $500 per school • To enhance school council involvement and school communications with parents • To provide stronger parent voice at the board level

  45. MOE FUNDS by Grant Application TO SUPPORTSCHOOL COUNCILS • Parents Reaching Out Grants (PROG) • 134 Schools will receive the Grant based on an application process • Reporting timelines • Specific Uses include: • Open Information Network, Parents for Parents, Literary Garden, Project Translation, etc.

  46. Part IV INSURANCE

  47. INSURANCE • Coverage for School Council members - OSBIE • Optional Coverage -- extended coverage for “named insured” members of School Council • not covered - “errors and omissions”

  48. INSURANCE Who to contact: Risk Management Department David Niven 416- 395-9780 or Sue Ferguson (Bus. Svs.) 416-395-8219

  49. Thank You

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