PREAMBLE

The Niagara Catholic District School Board recognizes that funds may be generated at the school level from a number of different sources. School Generated Funds apply to all funds that are received, raised, or collected in the name of the school or school activity. The Administrative Operational Procedures on School Generated Funds operate in conjunction with existing Provincial Legislation, Board Policies, and publicly accepted accounting principles.

The Board has a mandate and fiduciary responsibility to ensure proper management of the funds to protect public interest and trust.

The accounting and control of the proceeds of School Generated Funds must be conducted in accordance with these Administrative Operational Procedures.

SOURCES AND USES OF SCHOOL GENERATED FUNDS

School Generated Funds shall have a defined purpose and must be used for its defined purpose. Funds must be categorized for each specific event or activity and accounted for separately. Residual amounts for a specific event/activity at the end of the school year shall roll forward to the next year, and where possible used against the same or similar event/activity.

Superintendent of Business & Financial Services or designate

· Provide training to staff on the appropriate application of the administrative procedures.

· Complete and/or follow-up on financial review reports.

· Receive and maintain a central file of annual financial reports for all school bank accounts and investments.

· Report to the Family of Schools Superintendent when SGF are

o Lost or stolen

o Misused

o Failure to follow any policy or administrative procedures

Family of Schools Superintendent

· Review with Principals current Board policy and Administrative procedures.

· Verify that schools are complying with the reporting requirements of the Administrative Procedures for School Generated Funds

· Family of Schools Superintendent’s may request financial records at their discretion.

· Report to the Senior Business Official or designate when SGF are

o Lost or stolen

o Misuse

o Failure to follow any policy or administrative procedures

Principal

· Ensure that the Administrative Procedures for School Generated funds are implemented in compliance with Board Policy and or Administrative Memorandum

· Encourage a cashless environment in the school by utilizing the school finance system’s online payment module.

· Act as one of the approved signing officers on the school bank account.

· Appoint the Designated Secretary responsible for receipts, disbursements, banking and record keeping and communicate those responsibilities.

· Ensure that processes are in place to adequately control the funds within the school including security over cash and records.

· Ensure that no staff members or members of the community are collecting and managing funds in their own bank account.

· Communicate responsibilities to staff members.

· Ensure that there is a primary contact for each club or class involved with financial transactions.

· Review, initial and date the monthly bank reconciliation.

· Review records periodically.

· Review, sign and date the annual Financial Reports.

· Distribute and/or make available the annual financial reports as outlined in the section on Financial Reporting.

· Notify the Family of Schools Superintendent and the Senior Business Official or Designate immediately upon suspicion of lost or stolen funds without beginning any form of internal investigation.

· Ensure that the school or any individual associated with the school does not enter into contracts in the name of the school or the Board.

· Ensure that the Catholic School Council chair is aware and understands their roles and responsibilities.

· Provide summary financial reports for the Catholic School Council to review as they pertain to Catholic School Activities on a quarterly basis as a minimum.

Designated Secretary in the School

· Implement the administrative procedures for school generated funds as directed by the Principal.

· Act as one of the approved signing officers on the school bank account.

· Count and verify funds received for deposit.

· Prepare bank deposits and deposit funds at the bank on a regular basis.

· Issue cheques ensuring that all requests for payments are properly supported and approved by the Principal.

· Record transactions on a regular basis.

· Complete the monthly bank reconciliation and review list of outstanding deposits and cheques.

· Prepare transaction reports as required.

· Advise the Principal of deviations from the administrative procedures outlined in this manual.

· Prepare annual financial report and submit to Principal.

· Assist during financial review.

· Participate in board sponsored training relating to school generated funds.

· With approval of the principal, delegate some of these duties to another staff position directly involved with school generated funds.

· Analysis category balances on a regular basis, advise Principal of variances and/or discrepancies in category balances.

Staff Members

· Collect money from students or other sources as applicable.

· Count money collected and record amount and intended use on the Deposit Voucher as indicated in the section on, Receipts.

· Ensure funds collected are delivered to the Designated Secretary on a daily basis.

· Complete cheque requests for payment of invoices/receipts and request appropriate approval as indicated in the section on Disbursements.

· Ensure details of financial activity related to their class or club are recorded correctly.

· Ensure that funds received are disbursed as per the intent of the funds raised or collected.

· Request and review transaction reports on a regular basis and advise the Designated Secretary of any discrepancy.

Catholic School Council Chair

· Work with the Principal to ensure that the sources and uses of school generated funds comply with Board policy and the established Administrative Operational Procedures.

· Ensure fundraising activities involving the students and/or the school are in compliance with Board policies and no direct or indirect benefit is derived by a member of the Catholic School Council.

· Ensure that Catholic School Council members are aware that where conflicts of interest exist, they are disclosed.

· Review, sign and date the annual Catholic School Council financial reports.

· Attend board sponsored training relating to school generated funds.

· Ensure that all records and financial reports are available for review at the school as indicated in the section on Catholic School Councils.

BANKING

· The school must have only one school generated funds general bank account.

· Where schools participate in Lotteries and Games of Chance; a second separate bank account must be maintained.

· The bank account must be in the name of the school.

· Cheques for the school bank account must be pre-numbered.

· The account must require two signatures on all cheques.

· Acceptable signing officers are the Principal, Vice-Principal and designated Secretary with Finance responsibilities.

· Bank account established must be such that statements are issued on a monthly basis along with returned cheques.

· The bank statement must be cut-off on the last day on the month.

RECEIPTS

· All money received must be stored on site in a designated locked and safe location, with limited access.

· All money collected must be deposited intact to the bank account promptly. This means that expenditures are not paid using collected cash. The total funds are deposited to the bank and a cheque is written to pay expenses. All funds received need to be recorded on a Deposit Voucher.

· All staff collecting money must complete a Deposit Voucher and include a class list of who has paid.

· All money received into the school office must be logged onto the Deposit Log

· Funds logged onto Deposit Log must be verified and counted in the presence of the School Secretary and Individual handing in the Deposit Voucher and funds.

· Once the Designated Secretary receives the money, they will sign for receipt of funds on the Deposit Log. Designated Secretary will note the reference number from the Deposit Log on the Deposit Voucher.

DISBURSEMENTS

· All disbursements must be recorded promptly.

· All payments must be made by cheque or School petty cash.

· Pre-signing of cheques is not acceptable. Signature stamps are not acceptable.

· Payments must only be made upon the presentation of a cheque request approved by the Principal with an original invoices, receipts or other appropriate supporting documentation.

· Hand written cheques are not acceptable.

· When a cheque is issued the cheque stub must be stapled to the cheque request providing proof of payment. Payments should not be made from company statements.

· Cheques made payable to cash or for the purchase of cash equivalents such as gift cards or payments in advance to employees are not acceptable.

· Reimbursements to Principals above $250.00 must be approved by their Superintendent.

· All cheques should be accounted for. Voided cheques should be retained. If lost, a stop payment must be applied against the cheque.

· Unused cheques must be stored in a designated, secure location in order to prevent loss or theft.

BANK RECONCILIATION

· Monthly bank reconciliations must be completed.

· Cheques not cashed within six months are stale-dated and shall be voided. Stop payments should be applied to staled dated cheques that become voided.

· The Principal shall review the monthly bank reconciliation, sign it and retain on file.

· Reconciliation outstanding list of transactions should be reviewed on a monthly basis.

FINANCIAL REPORTING

The Principal is accountable for the money to both the school community and the Board. Financial statements demonstrate accountability and, at the same time, provide information for decision-making needed by the school community and the Board.

· The financial reports shall be prepared under the direction of the Principal.

· The reports shall encompass all money generated in the name of or under the auspices of the school regardless of its source or use.

· The fiscal year for the reports shall be September 1 to August 31.

· The Principal shall review, sign and date all reports.

· The reports shall be made available at the school to the members of the school community upon request.

· The reports shall be kept with the records for the school generated funds for seven years.

FINANCIAL REVIEW

The Board’s appointed Auditors will conduct audits of school generated funds. This will occur on a cyclical basis, so that each school is audited periodically. Board staff will periodically conduct a financial review and/or finance field visit to analysis, recommend and provide support around School Generated Funds. The financial review function reports to the Director of Education.

New Principal appointments require all financial information transferred to the new Principal and a review of current finances shall be completed by both Administrators.

HARMONIZED SALES TAX

All items purchased through the school generated funds bank account are eligible for HST rebate.

To obtain a rebate of the HST paid on items purchased through school generated funds, HST rebate applications must be prepared by the school and submitted online to CRA by Board staff. HST rebate applications are prepared as part of the year-end process. Original invoices that support the amounts shown on the HST Rebate Claim must be kept on file at the school for audit purposes for a period of 7 years.

CHARITABLE DONATIONS

The Canadian tax system encourages taxpayers to support the activities of registered charities by allowing a tax credit to be claimed by a donor. To qualify as a donation, the transfer of funds must be voluntary and made without benefit to the donor.

To receive a tax receipt, cheques issued by the donor to support a school must be made out to Niagara Catholic District School Board or the Foundation for Catholic Education and not be payable directly to the school.

LOTTERIES AND GAMES OF CHANCE

A license from the Alcohol and Gaming Commission of Ontario (AGCO) is required for all lotteries and games of chance. The application process for most lotteries and games of chance can be done through the local Municipality. The application should be in the name of the school and signed by the Principal.

A separate intrust lottery bank account needs to be used for tracking revenue and expenses. A condition of all licenses is that you report on the financial activity of the project.

ENTERING INTO CONTRACTS

Board Administration, in consultation with schools, will determine the extent to which schools can enter into individual school contracts. Board policy, procedures, and administrative operational procedures will establish the parameters regarding the dollar amount and the duration of contracts into which schools can enter into a contract agreement.

Schools should refer to specific board policies/practices with particular attention given to the Board’s Purchasing/Supply Chain Management policy (600.1).

CATHOLIC SCHOOL COUNCIL

Under the Education Act Regulation 612, school boards in Ontario are required to establish a Catholic School Council for each school within the board. These Councils are advisory bodies that may make recommendations to the school Principal or the board on any matter. Many Catholic School Councils perform fundraising activities in the name of the school and as such are required to conform to the appropriate sections of Regulation 612 that deal with fundraising issues. The Principal is ultimately responsible for activities related to the school and therefore is also responsible for Catholic School Council activities.

Catholic School Councils are not to be incorporated. Any funds and assets generated through fundraising activities in accordance with Board policies and procedures assisted by the Catholic School Council are the property of the Board.

Catholic School Councils shall not maintain their own bank accounts or establish ownership of School Generated Funds in specific categories.

Catholic School Councils shall:

· Record in each Catholic School Council meeting minutes that a financial report was presented and approved by the Catholic School Council members in attendance;

· Annually submit a written summary of revenue and expenses on all fundraisers and activities in collaboration with the Principal of the school to the Board.

The Principal shall, on behalf of the Catholic School Council, provide the annual report to parents by posting the report in the school in a location that is accessible to parents.

Niagara Catholic District School Board *SCHOOL GENERATED FUNDS* ADMINISTRATIVE OPERATIONAL PROCEDURES
300 – Schools/Students	No 301.6

Adopted Date April 25, 2006	Latest Reviewed/Revised Date April 28, 2020