It's time to review our financial policies. Please read and make any comment to seanhogan@broadbay.school.nz by Monday, 21 May, 5pm so we can include the communities voice in our review, thanks.


4. Financial Planning Policy


The board of trustees has overall responsibility for the financial management of the school but delegates the day-to-day management of the school’s finances and budget to the principal. The principal, in association with the Finance Committee, is responsible for recommending an annual operating and capital budget to the board within the timelines specified in the Finance Committee terms of reference.


Budgeting shall not fail to reflect the annual plan, risk financial jeopardy nor fail to show a generally acceptable level of foresight.


Thus the budget should:

  1. reflect the results sought by the board.

  2. reflect the priorities as established by the board.

  3. comply where the board’s requirement is for a balanced budget.

  4. demonstrate an appropriate degree of conservatism in all estimates


Review schedule: Triennially


5. Cash Management Policy


Adopted by the Board of Trustees on 22 September 2014

The Board of Trustees (the Board) of Broad Bay School (the 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 22 September 2014 and became effective from that date.

Introduction

  1. The 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.

  2. In 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.

  3. The 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.

  4. This 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.

Cheque and Call Deposit Accounts

  1. The 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.

  2. The signatories to this cheque account shall be as follows:

  • the Board Chairperson

  • the Principal

  • the Secretary and

  • one other parent representative Board member.

  1. All cheques for operating expenses shall be signed by at least one Board member and either the Principal or the Executive Officer. All cheques for fixed assets and long-term investments are to be signed by the Board Chairperson and the Principal.

  2. Under no circumstances is a cheque signatory to sign a blank cheque.

  3. All cheques, except those for petty cash reimbursement, must be issued as ‘Not Transferable – Account Payee Only’.

  4. At 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.

  5. One 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 operated under the control of the Principal.

Investments

  1. Investments of School funds may only be made in accordance with the terms of Section 73 of the Education Act 1989.

  2. Notwithstanding 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 Rate Swaps).

  3. Investments may only be made with the written authorisation of the Principal and the Board Chairperson.

Fundraising

  1. The 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 advice.

Cash Receipts

  1. All 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.

  2. No cash received can be used to pay accounts in cash.

  3. Only delegated staff may handle cash.

  4. All receipts must be banked as soon as possible and preferably within five working day of receipt.

  5. All cash and cheques kept on the premises must be kept secure and under the control of a delegated person.

Accounts for Payment

  1. All accounts for payment, other than expense reimbursements and attendance fees, must be supported by a copy of the:

  • official school order form

  • the invoice, with certification by the orderer that each item has been received, prices and quantities are correct and the payee details are correct

  • the correctly completed cheque ready to be signed.

  1. The invoice must be certified by the person who authorises the expenditure.

  2. Expense 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. Scale rates as per the award will be the basis of reimbursement per kilometre.

Petty Cash

  1. A petty cash fund of no more than $100 shall be held.

  2. Reimbursement claims from the petty cash fund shall not exceed $50 and must be accompanied by a receipt and approved petty cash voucher.

  3. Petty cash advances will only be made for amounts up to $20. 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.

Accounting Records

  1. The 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.

  2. The 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.

Periodic and Annual Financial Statements

  1. For each calendar month the Principal shall forward financial reports showing:

  • Statement of Financial Performance, including comparison to budget

  • a summary Statement of Cashflow and

  • a summary Statement of Financial Position.

  1. For each month the Principal shall forward a written summary report that describes:

  • key (financial) achievements from the previous month


  • significant matters and/or risks that must be addressed by the School.

  1. This report shall be presented to the Board at the next scheduled Board meeting.

  2. Any 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.

Approval

  1. When 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.

  2. As 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.



Review 2017



6. Asset Protection Policy


Adopted by the Board of Trustees on 22 September 2014

The Board of Trustees (the Board) of Broad Bay School (the 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 22 September 2014 and became effective from that date.

Introduction

  1. The Board accepts that it has a responsibility to protect the assets 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.

  2. In the formulation and approval of this Policy the Board has had due regard to the accepted standards of sound asset 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.

  3. The 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.

  4. This 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.

Acquisition of Assets

  1. The Board agrees to review the asset management plan annually and agree a budget for tri-annually asset acquisitions.

  2. The Principal shall have delegated authority to purchase assets within the annual asset acquisition budget, following good procurement processes, provided that the value of any individual asset is no more than $1,000.

  3. The decision to purchase any asset with a cost of over $1,000 must be made by the Board, not the Principal alone.

  4. The Board shall consider the most cost efficient acquisition method for each new assets acquisition decision i.e. whether to buy or lease, and whether to acquire by operating or finance lease.

  5. The Boards shall follow good procurement processes for the acquisition of assets over $1,000. This may include placing a notice on the Government Electronic Tendering System (GETS) for acquiring assets with a combined value over $5,000; obtaining several quotes to compare value for money; and managing any potential conflicts of interest appropriately.

Information Technology Assets

  1. All information technology assets, such as computers and laptops and associated software, must be compatible with the standard operating platform used within the school.  

  2. The Board aims to provide and maintain a suite of IT assets that provides the best possible learning tools for students, within budget constraints, including a replacement programme that matches the expected useful life of each asset.

Expected Useful Lives

  1. The Board agrees on the expected useful lives of the following types of assets:

Buildings – School 18-40 years

Building improvements – Crown 10–20 years

Furniture and equipment 10–15 years

Information and communication technology 4 years

Motor vehicles 5 years

Textbooks 3 years

Leased assets 4 years

Library resources 8 years

Maintenance of Assets

  1. The principal shall have delegated authority to maintain the school’s assets in good working order, within the approved budget.

Asset Records

  1. A fixed asset register for all assets with a cost of $1,000 or more shall be recorded in the fixed asset register.

  2. Assets that cost less than $500 shall be recorded in a register of valuable assets.

  3. A review of assets against the fixed asset and valuable asset registers shall be undertaken at least once a year.

Disposal of Assets

  1. The Principal shall have delegated authority to dispose of any asset that has reached the end of its useful life (as recorded in the fixed asset or valuable asset registers), provided the original cost of that asset was less than $1,000. The Principal shall report to the board about reasons for disposal, disposal process and any net disposal proceeds.  

  2. The Board shall approve the disposal of any asset that had an original cost of over $1,000, including the reasons for disposal, disposal process and use of any disposal proceeds.

Approval

  1. When 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.

  2. As 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.


Review 2017

7. Schedule of Delegations Policy


Adopted by the Board of Trustees on September 2014

Introduction

  1. This Schedule of Delegations (the Schedule) was approved by the Board of Trustees (the Board) of Broad Bay School at its meeting on September 2014 and became effective at this date. The Schedule sets out those responsibilities that can only be exercised by the Board, the responsibilities delegated to the chief executive (the Principal), and those responsibilities that the Principal can delegate to specified staff positions.

  2. The purpose of the Schedule is to ensure that the effectiveness of the governance and management of the School is maintained, to provide an agreed basis by which the School’s executive management can exercise its responsibilities, and to enable the responsibilities delegated to be monitored. It is the Board’s expectation that delegations made will be properly exercised and the persons who hold such delegations will be held accountable. If these principles are observed then the Board can be certain its responsibilities in terms of the Education Act 1989, the Crown Entities Act 2004 and the Financial Reporting Act 1993 will have been properly fulfilled.

  3. If persons who exercise responsibilities on behalf of the Board have any doubts or concerns in the execution of a specific action the expectation is that they will check with the person or group who made the delegation in the first place. The intention of this expectation is that should doubt arise in the exercise of a delegated responsibility it is preferable to verify the bona fides of the intended action rather than make an error of judgement and be held accountable for this.

  4. This Schedule does not in itself provide the right to executive management and staff to exercise the responsibilities delegated. The right to exercise these responsibilities must be set out in a Memorandum of Delegations which sets out the delegations and is signed by the parties involved. An outline example is set out at the end of this Schedule.

  5. The Principal shall ensure that a copy of each memorandum is safely retained and shall be made available to the Board, the school’s auditors and officers of any Court hearing a case related to the School’s finances.

Approval

  1. This Schedule was unanimously agreed by the Board and approved as a policy document at its meeting held on 22 September 2014

  2. When the Board approved this Schedule it agreed that no variations of this Schedule or amendments to it can be made except by the majority approval of those trustees present at the Board meeting.

  3. As part of its approval the Board requires the Principal to circulate this Schedule 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 Board requests that the Principal arrange for all new staff to be made familiar with this Policy and other policies approved by the Board.

Delegations Retained by the Board

  1. The Board retains for itself and does not delegate to any executive management or staff position the following responsibilities:

    1. Approval of all operating, capital, cashflow and property maintenance budgets and amendments to these budgets;

    2. Commitment of operating expenditure for any invoice in excess of $1000;

    3. The commitment or purchase of capital expenditure;

    4. The disposal of fixed assets with a cost price in excess of $1,000;

    5. The transfer of money between any Board cheque and term deposit account in excess of $5,000 and for a period longer than 12 months;

    6. The appointment of any permanent staff and the salary and terms of conditions on which they are employed which are in excess of positions funded by Ministry of Education salaries grants;

    7. Leave on full pay granted to non-teaching staff to attend training sessions or courses outside the school for a period greater than 6 half-days;

    8. The termination of employment of any paid employee;

    9. Signing applications for special grants for additional buildings, agreements to build via the Ministry of Education’s local office;

    10. Formal communication and agreements with the Minister of Education and any other Minister of the Crown or Member of Parliament;

    11. Responses to the Secretary of Education or any other permanent head of a Government department which was initiated by a report, written communication, request for information or required declaration received from such persons and addressed to the Board or Board Chairperson;

    12. Interviews with the media and the distribution of media releases on any matter which  involves the School;

    13. The initiation of any legal actions and any communications in relation to these actions;

    14. Signature of any formal or legal agreement which is in the name of the School and must involve the Board.

Note: These responsibilities are in addition to those specified in Acts and regulations by which the Board is bound.

Board Delegations to the Principal

  1. The Board delegates to the Principal the responsibilities listed below:

  1. The day-to-day curriculum and resource management of the school and the achievement of the Government’s key achievement areas and requirements as specified in official educational policy documents;

  2. The implementation of any other requirements specified by Act of Parliament, the Secretary of Education, any other permanent head of a Government department and for individual and collective employment contracts;

  3. Approval of any orders for goods and services up to the value of $1000 and provided such an order will not exceed the Board approved budget allocation for the expenditure item involved;

  4. Transfers to at-call deposits of amounts less than $5,000 and for periods less than 12 months;

  5. Ordering fixed assets for which the capital expenditure has the prior approval of the Board;

  6. The appointment of relieving and casual staff provided such appointment is within the budget allocation for this particular person and provided this delegation is not given to any other staff member;

  7. Communication with parents, officials, representatives of educational organisations and other firms and organisations with whom the Principal deals as part of their curriculum and resource management responsibilities; and

  8. Delegation in writing to specified staff positions of responsibilities according to the format set out below.

Notes:

These responsibilities complement those responsibilities and achievements specified in the Principal’s annual performance agreement with the Board.

During any absence of the Principal from the School for more than 5 days these delegations shall be exercised by the Acting Principal with the separate and prior approval of the Board Chairperson. In such an absence the Acting Principal shall sign a copy of this Schedule.


8. Theft and Fraud Prevention Policy


Adopted by the Board of Trustees on March  2016


Introduction

1.                  The Board accepts that it has a responsibility to protect the physical and financial resources of the School. The Board has agreed that through its chief executive, the Principal, the School has a responsibility to prevent and detect theft and fraudulent actions by persons who are employed or contracted by the School or who are service recipients of the School. The Board accepts that any investigation into any theft or fraudulent actions will be conducted in a manner that conforms to the principles of natural justice and is procedurally just and fair.

2.                  The Board, therefore, requires the Principal to establish systems and procedures to guard against the actions of theft and fraud. The Principal is to report such actions to the Board Chairperson as prescribed in the procedures set out below.


General

3.                  As preventative measures against theft and fraud the Board requires the Principal to ensure that:

a.             The School’s physical resources are kept secure and accounted for.

b.             The School’s financial systems are designed to prevent and detect the occurrence of fraud. All such systems must meet the requirements and standards as set out in the Crown Entities Act 2004  and of generally accepted accounting practice promulgated and supported by the Institute of Chartered Accountants of New Zealand.

c.             Staff members who are formally delegated responsibility for the custody of physical and financial resources by the Principal are proven competent to carry out such responsibilities and that such persons are held accountable for the proper execution of their responsibilities.

d.             All staff members are aware of their responsibility to immediately inform the Principal should they suspect or become aware of any improper or fraudulent actions by staff, suppliers, contractors, students or other persons associated with the School.

4.                  In the event of an allegation of theft or fraud the Principal shall act in accordance with the

               following procedures:

a.             Decide to either immediately report the matter to the New Zealand Police or proceed as outlined in this paragraph.

b.             So far as it is possible and within 24 hours:

                                         i                   Record the details of the allegation, the person or persons allegedly involved, and the quantity and/or value of the theft or fraud.

                                       ii                   Request a written statement from the person who has informed the Principal, with details as to the nature of the theft or fraud, the time and circumstances in which this occurred, and the quantity and/or value of the theft.

                                      iii                   Decide on the initial actions to be taken including consulting with the person who provided the information and, if appropriate, confidentially consulting with other senior members of staff about the person who is the subject of the allegation.

                                     iv                   Inform the Board Chairperson of the information received and consult with them as appropriate.

c.             On the basis of advice received and after consultation with the Board Chairperson, the Principal shall decide whether or not a prima facie case of theft or fraud exists, and if not, to document this decision and record that no further action is to be taken.

d.             The Principal shall then carry out the following procedures:

                                         i                   Investigate the matter further;

                                       ii                   If a prima facie case is thought to exist to continue with their investigation;

                                      iii                   Invoke any disciplinary procedures contained in the contract of employment should the person be a staff member;

                                     iv                   Lay a complaint with the New Zealand Police;

                                      v                   If necessary, commission an independent expert investigation;

                                     vi                   In the case of fraud, require a search for written evidence of the possible fraudulent action to determine the likelihood or not of such evidence;

                                   vii                   Seek legal advice; or

                                  viii                   Inform the Manager, National Operations, Ministry of Education local office and/or the school’s auditors.

e.             Once all available evidence is obtained the Principal shall consult the Board Chairperson. The Board Chairperson may, if they consider it necessary, seek legal or other advice as to what further action should be taken.

f.               If a case is considered to exist the Principal or a person designated by them shall, unless another course of action is more appropriate:

                                         i                   Inform the person in writing of the allegation that has been received and request a meeting with them at which their representative or representatives are invited to be present.

                                       ii                   Meet with the person who is the subject of the allegation of theft or fraud and their representatives to explain the complaint against them.

                                      iii                   Obtain a verbal or preferably a written response (all verbal responses must be recorded as minutes of that meeting, and the accuracy of those minutes should be attested by all persons present).

                                     iv                   Advise the person in writing of the processes to be involved from this point on.

5.             The Board recognises that supposed or actual instances of theft or fraud can affect the rights and reputation of the person or persons implicated. All matters related to the case shall remain strictly confidential with all written information kept secure. Should any delegated staff member or any other staff member improperly disclose information the Principal shall consider if that person or persons are in breach of confidence and if further action is required. Any action the Principal considers must be in terms of the applicable conditions contained in their contract of employment and any code of ethics or code of responsibility by which the staff member is bound.

6.                The Board affirms that any allegation of theft or fraud must be subject to due process, equity and fairness. Should a case be deemed to be answerable then the due process of the law shall apply to the person or persons implicated.

7.                  Any intimation or written statement made on behalf of the School and related to any instance of supposed or actual theft or fraud shall be made by the Board Chairperson who shall do so after consultation with the Principal and if considered appropriate after taking expert advice.


Allegations Concerning the Principal or a Trustee

8.                  Any allegation concerning the Principal should be made to the Board Chairperson. The Chairperson will then investigate in accordance with the requirements of paragraph 4 of this Policy.

9.                  Any allegation concerning a member of the Board of Trustees should be made to the Principal. The Principal will then advise the manager of the local office of the Ministry of Education and commence an investigation in accordance with the requirements of paragraph 4 of this Policy.


Approval

10.              When the Board approved the Policy it was agreed that no variations of this Policy or amendments to it can be made except by the unanimous approval of the Board.

11.              As 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 Broad Bay 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.

Review schedule: March 2019