Hamilton Junior High School
Cash Management Policy
by the Board of Trustees on 16 December 2013
The Board of Trustees (the Board) of Hamilton Junior High School has consulted with staff and parents in the
formulation of this Policy (the Policy). The Policy was approved and adopted by
the Board at its meeting held on 16 December 2013 and became effective from 1
Board accepts that it has a responsibility to protect the cash resources of the
School. The Board has agreed on the fundamental principles of this Policy, and
has delegated responsibility for the implementation and monitoring of this
Policy to the Principal.
the formulation and approval of this Policy the Board has had due regard to the
accepted standards of sound financial management and applied these to the
School. The Board wishes to record that it sought the advice of a chartered
accountant and consulted with the School’s auditor in their role as agent of
the Controller and Auditor General before approving this Policy.
Board requires the Principal, as the chief executive and the Board’s most
senior employee, to implement and manage this Policy. The Principal may, from
time to time, further delegate some of their responsibilities, and all such
delegations must be attached as appendices to this policy.
Policy must be read in conjunction with other Board Policies, and the
exercising of all authority and responsibilities conferred under this Policy
must be in accordance with the Schedule of Delegations and may not exceed an
individual’s established level of delegated authority.
and Call Deposit Accounts
Board agrees that one cheque account shall be operated for Board general
receipts and payments. The only other cheque account permitted shall be for the
school’s trust funds account.
signatories to this cheque account shall be any two of the following:
· the Deputy Principal
no circumstances is a cheque signatory to sign a blank cheque.
cheques, except those for petty cash reimbursement, must be issued as ‘Not
Transferable – Account Payee Only’.
no time shall the cheque account be operated in overdraft without permission
from the bank and the Ministry if the overdraft exceeds the borrowing limits.
at-call interest bearing deposit account shall be operated to hold cash
resources not currently required for operating purposes. This account is only
to be operated by the Principal or Executive Officer, with any transactions reported
by the Principal at the next Board meeting.
at-call deposit accounts shall also be operated for Fixed Asset Replacement and
Cyclical Maintenance reserves as specified in the Board’s policies for these
at-call deposit accounts shall be operated in respect of specific
operations/projects where it is deemed appropriate to segregate the associate
funding from day to day operational funds e.g. Property Projects financed by
the Ministry of Education.
Trust Fund Account
separate bank account and call deposit account shall be used for the trusts
funds held by the Board in trust for donor-specified purposes. The terms and
conditions for the operation of these accounts shall be the same as for the
general operating account referred to above.
of School funds may only be made in accordance with the terms of Section 73 of
the Education Act 1989.
the requirements of Section 73, no investments may be made in equity stocks or
in synthetic money market products (e.g. Forward Rate Agreements and Interest
may only be made with the written authorisation of the Principal and the Board
Board acknowledges that under Section 73 of the Education Act 1989 some
professional fundraising contracts constitute an illegal fundraising contract.
No such fundraising contract will be entered into by the School. If doubt
exists about the legality of a proposed fundraising contract, the Principal
will contact the regional Financial Adviser of the Ministry of Education for
cash and cheques received must be paid into the school office and properly
receipted. This includes trading income, other local funds receipts and
reimbursements for learning materials.
cash received can be used to pay accounts in cash.
delegated staff may handle cash.
receipts must be banked as soon as possible and preferably within one working
day of receipt.
cash and cheques kept on the premises must be kept secure and under the control
of a delegated person.
accounts for payment, other than expense reimbursements and attendance fees,
must be supported by a copy of the:
school order form
invoice, with certification by the orderer that each item has been received,
prices and quantities are correct and the payee details are correct
correctly completed cheque ready to be signed.
person can sign off two of the documents that comprise the voucher except the
order and the invoice. The invoice must be certified by the person who
authorises the expenditure.
reimbursements must be certified by the Principal. An expense claim should be
supported by GST receipts or invoices. Claims for the use of private motor vehicle
usage must be certified by the Principal or delegate to indicate that approval
was given. Scale rates as per the award will be the basis of reimbursement per
kilometre. Expense reimbursements for the Principal must be certified by the
school will operate an Imprest Petty Cash account with a monthly limit of $500.
This account is to be reconciled monthly by the Executive Officer and ratified
any one of the cheque signatories. Reimbursement
claims from the petty cash fund shall not exceed $50 and must be accompanied by
a receipt and approved petty cash voucher.
cash advances will only be made for amounts up to $50. They must have an
approved petty cash voucher. A receipt for the actual expense with any unspent
cash must be provided within 2 working days of the advance.
Principal shall arrange for proper accounting records to be maintained. The
records must satisfy all requirements specified in Acts of Parliament,
financial reporting standards and other applicable standards.
financial system must be so organised by the Principal that the Principal and
Chairperson can sign without hesitation the annual Statement of Financial
Responsibility as required by Section 155 of the Crown Entities Act 2004.
and Annual Financial Statements
each calendar month the Principal shall prepare financial reports showing:
of Financial Performance, including comparison to budget
summary Statement of Cashflow and
summary Statement of Financial Position.
each month the Principal shall present a written summary report that describes:
(financial) achievements from the previous month
for the month ahead and
matters and/or risks that must be addressed by the School.
report shall be presented to the Finance Committee by the seventh working day
following the end of the month, and tabled at the next meeting of the Board.
recommendations made to the Board for the purchase of fixed assets, investments
and other use of cash resources must refer to the impact on the School’s
present cash resources and projected cashflows for the next 12 months.
the Board approved this Policy it agreed that no variations of this Policy or
amendments to it can be made except with the unanimous approval of the Board.
part of its approval the Board requires the Principal to circulate this policy
to all staff, and for a copy to be included in the School Policy Manual, copies
of which shall be available to all staff. The school policy manual shall also
be made available to students and parents at their request. The Board requires
that the Principal arrange for all new staff to be made familiar with this
Policy and other policies approved by the Board.
behalf of, and with the authority of the Board on _________________