Chapter 3.1: Financial management
This section provides a list of indicators that show a school's finances are being well managed.
- Positive working capital – short-term assets (cash and assets that can be converted to cash quickly) are greater than short-term liabilities (payments that have to be made soon) - shows the school can pay its current debts.
- Operating surplus – income is greater than expenses.
- No unauthorised orders for goods and services.
- Bank reconciliations up to date and complete.
- Sufficient cash is held to represent all reserves and funds held on trust.
- Financial queries are answered promptly and completely.
- Monthly financial reports are accurate, complete, timely and useful.
- Annual reports are produced on time and receive an unqualified audit report.
- The management letter received from the school’s auditor contains no adverse comments.
- Budgets approved by the board are in place and are monitored monthly by the board.
- Financial policies are in place, have been approved by the board and are reviewed annually.
- There are written delegations from the board to committees and staff and signed copies of the delegations are kept on the Delegations File.