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.



Content last updated: 5 November 2009