2·&KLHVH)LUVW1DWLRQ6FKRRO Box 337, Rocky Mountain House, Alberta, T4T 1A3 Phone: 403-989-3911 Fax: 403-989-2122 2·&KLHVH(GXFDWLRQ$XWKRULW\&RPSUHKHQVLYH3ROLF\0DQXDO Financial Matters 601. 2·&KLHVH(GXFDWLRQ$XWKRULW\)LQDQFLDO3ROLFLHVDnd Procedures A. It is the responsibility of the Director/Principal and his/her financial assistant to keep records and enforce financial policies. B. 7KLVILQDQFLDOSROLF\DQGSURFHGXUHPDQXDOLVGHYHORSHGIRUWKH2¶&KLHVH(GXFDWLRQ$XWKRULW\7KHVH policies are designed to ensure that generally accepted accounting practices are followed. Furthermore WKHVHSROLFLHVDUHGHVLJQHGWRLPSOHPHQWWKHDXWKRULW\¶VREMHFWLYHIRUHIIHFWLYHLQWHUQDOFRQWUROV C. 7KH$XWKRULW\¶VREMHFWLYHLVWRHQVXUHWKHRUGHUO\DQGHIILcient conduct of the education department business including: x Discharge of statutory responsibilities x $FFRXQWDELOLW\WRPHPEHUVRIWKH2¶&KLHVH)LUVW1DWLRQDQGIXQGLQJDJHQFLHV x Prevention and detection of fraud and error x Safeguarding of assets x Accuracy, reliability of accounting records 602. Finance Operations A. Only finance staff are authorized to be in the finance office. B. Cheque requisitions must be signed by the Director/Principal before processing. They must be in no later than 11:00am daily for processing on the cheque distribution days. C. Cheques will be processed only on Mondays, Tuesdays, and Thursdays. D. Cheques will not be released until after 3:00pm. E. In order for a cheque to be released it must be signed by both signers. 603. Financial Management and Controls A. It is essential that the Authority set and periodically review specific written goals and objectives for the educational program. Since these goals will have financial implications, plans should include financial projections whenever possible. B. A clear and well-planned organizational chart shall be maintained for the proper definition and allocation of duties and responsibilities of officials and employees. In this way, duplication of work, overlapping of functions, omissions of important functions, misunderstandings and other situations that might weaken internal controls shall be avoided. C. 7KH2¶&KLHVH(GXFDWLRQ$XWKRULW\VKDOOKDYHDJHQHUDOOHGJHUWKDWLVUHFRQFLOHGPRQWKO\WRWKHIROORZLQJ control accounts: x Bank reconciliation x Prepaid schedule x Accounts payable listing x Operation and maintenance x Accounts receivable x Fixed asset listing x Authority of Education (OEA) x Educational capital D. All journal entries shall have appropriate supporting documentation and narrative explanations and be approved by the Administrator. E. All standard journal entries shall use pre-printed forms. The Director/Principal shall review all accounting records monthly. 604. Financial Reporting A. The presentation of financial and statistical data should be directed to the users of the information and should be presented in a clear and concise manner. The process of reporting begins with a clear understanding of the financial activities of the education programs. The Director/Principal must be knowledgeable about all aspects of the scKRRO¶VILQDQFLDODQGRSHUDWLRQDOV\VWHPV 605. Reports to the Authority A. Financial reporting to the Authority is an important and integral part of any reporting system and should identify all areas of their financial responsibilities. The Director/Principal must prepare reports and review information with the Authority as requested. B. All information, including finances, regarding the ongoing operations of the school should be available to the Authority. However, too much detail may obscure the significant trends and problem areas. Where areas of concern are indicated to the Authority after review of the summary reports, the Authority should request a more detailed report or explanation. The Director/Principal is expected to supplement reports with an oral or written report highlighting problem areas, and providing details in areas of concern to the Authority. Greater detail will be provided in preparation of the annual budget. A monthly accounts payable listing will be presented to the Authority for approval. 606. Reports to the Director/Principal A. The regular financial report to the school Director/Principal should contain data respecting education programs and school facility. Comparative data, however, should be available on a request basis. The Director/Principal and Band Administrator must work together to ensure that funds are expended to get maximum value for money. Authority members shall have access to monthly financial statements and accounting records (excluding personnel). 607. Budgeting A. The budget will serve a dual purpose. First, the budget is a plan of what is expected to happen on a receipts and disbursements basis. While at the same time, the budget serves as a target for performance at the school. The Director/Principal shall submit an annual preliminary budget to the Authority to approve before May 15th of each year. The budget will be revised from time to time until DFFHSWDEOHWRWKH$XWKRULW\7KLVLVWRHQVXUHWKDW2¶&KLHVH(GXFDWLRQ$XWKRULW\GRHVQRWJHWLQWRGHILFLW situations due to over-staffing, emergencies, or new regulations. 608. Purchasing A. To ensure that the Authority is receiving full value for each dollar collected and spent on goods and services, the Director/Principal must ensure that the procedures set out by the Authority are practiced. B. The maximum for the committal of funds can be exceeded only with prior approval by Authority motion or approval of the annual budget. C. Maximum for one invoice item: Director/Principal: $25,000;; Vice Principal: $15,000. D. Capital construction items or contract items shall be paid as per contractor billing. 609. A. B. C. D. 610. Purchase Orders Purchase orders shall be used for purchase of all goods and services. Purchase orders shall be pre- numbered and the numerical sequence shall be checked periodically. The purchasing agent receives the purchase order and prior to issuing ensures that there are efficient budgeting funds to cover the purchase. The information on the purchase order will include: x Complete name and address of the supplier;; x School, address, location and the name of the recipient;; x Quantity required;; x Complete description;; x Unit price and total amount;; x Authorized signature: Director/Principal. There shall be 3 copies of the purchase order: 1) Suppliers copy;; 2) Invoice copy (to be attached prior to payment);; 3) File Copy (filed in numerical sequence). To ensure all goods and services ordered have been properly processed;; purchase order (copy 2) shall be attached to the invoice prior to payment of the invoice. Exceptions to PO A. The Director/Principal or Vice Principal may authorize, without use of purchase order, daily expenses by staff members for small daily items such as student rewards, emergency supplies or for public functions. B. Purchases out of the student fund are to be handled by staff and there shall be at least 2 signers, one of which shall be the finance clerk. 611. Receiving A. Invoices or packing slips shall be used as the receiving reports. Processing and filing of such reports is the responsibility of the Finance Clerk. B. Director/Principal shall be assigned to receiving and to draft purchase orders and the finance clerk records the payable in the accounting records. Appropriate supervisors must be present during receiving of specialized orders as required. The individual receiving shall sign the invoice or packing slip to indicate that the quantity and quality of goods received has been checked. Packing slips and invoices shall be forwarded immediately to the Financial Controller. 612. Payables A. Signing authorities for cheques: Chairperson, Authority Members B. All cheques over $3000.00 must be approved by the Authority. Cheque signing authorities shall examine WKHLQYRLFHVSXUFKDVHRUGHUVVXSSOLHUV¶VWDWHPHQWVDVGRFXPHQWDWLRQIRUWKHFKHTXHVEHIRUHVLJQLQJ and initial the invoice. C. Cheque signing authorities shall ensure invoices have been approved prior to signing. The Financial Controller shall maintain unused cheques. The Financial Controller shall check serial continuity of cheques monthly to ensure all cheques are accounted for. D. Once the yearly budget is approved for the year, all expenditures exceeding the allotted budgeted amount must be approved by the Authority before payment. E. Proposed over expenditures shall be presented to the Authority with an explanation as to why the over- expenditure is required. F. The Authority must approve over-expenditures by a formal motion which shall be documented in the minutes. G. There shall be no inter-budget transfers unless approved by the Authority by a motion recorded in the minutes. 613. Salary Philosophy A. 2¶&KLHse Education Authority is committed to a compensation system that: a. Ensures all teachers receive fair and equitable salaries relative to their colleagues in the school and relative to teachers elsewhere in the province;; b. Reflects the teachers education and experience;; and c. Enables us to recruit and retain qualified teachers. B. Compensation for all teachers shall be based on the salary grid and calculated on the basis of teacher education and experience. C. Increases within the established salary grid are within the discretion of the principal and are intended to reflect inflation and changes in the job market conditions applicable to teachers. 614. Payroll A. All staff are paid on a bi-weekly basis. B. All teachers are paid on a bi-weekly basis throughout the entire calendar year (as opposed to the school year). C. Support staff will negotiate payment duration at the time of signing annual position acceptances. D. Provided that all requirements of Canada Customs and Revenue Agency are met, the salary of a teacher with Indian status may be exempt from income tax remittances. E. The following requires a motion by Authority: x Employee added to payroll x Employee removed from payroll x Rates of pay 615. Payroll Advances A. There shall be no payroll advances provided to any staff member. 616. Time Sheets A. All hourly employees shall record their own time and present to the Director/Principal for final review before issuing payroll. The Financial Controller will keep a copy of their time sheet on file. 617. Travel and Other Expenses A. Travel expense rateVZLOOUHIOHFWWKRVHVHWE\WKH2¶&KLHVH)LUVW1DWLRQ%DQG$GPLQLVWUDWLRQ B. It is expected that all staff will respect that the school operates under budgetary limitations and that everyone will see to minimize expenses. C. All expenses sought to be reimbursed must be approved by the Principal in advance of being incurred. D. An expense report must be approved by the Principal to obtain payment of any expenses. In order that we may verify that the expense claim is proper and due to the employee, all expense reports must be submitted with original receipts attaches and must be submitted no later than 60 days from the date the expense was incurred by the employee. 618. Fundraising Money A. The fundraising committee shall maintain a $50.00 float and $150.00 to purchase necessary supplies for fundraising events. B. $Q\DGGLWLRQDOGROODUVHDUQHGPXVWEHSURYLGHGWRWKHILQDQFLDOFRQWUROOHUWREHSODFHGLQWKH³)XQGUDLVLQJ´ Account. C. Cheques and/or POs can be requested for additional funding at anytime. D. If certain classes earn the money, those dollars can be allocated to that class within the accounting system to keep track. E. $OOIXQGUDLVLQJGROODUVDUHFRQVLGHUHGUHYHQXHVRI2¶&KLHVH(GXFDWLRQ$XWKRULW\7KHIXQGUDLVLQJ committee may make recommendations for the expenditure of the raised funds, however, all decisions made by the Director/Principal are binding.