1.1    The governing body of Welkom High School has decided that the provisions of the South African Schools Act                 (SASA), Act No 84 of 1996, and the Provincial School Education Act (each province will have its own description)           and all legally accepted regulations promulgated there under, will be honoured and executed.

1.2    This financial policy aims to give practical effect to SASA, as well as to regulate the management of finances and           school property.

1.3    The financial policy aims to give direction on how school funds should be utilized and accounted for.


2.1    Annually, deputy chairperson of the SGB as the chairperson of the Finance Committee, puts together the (FC)               Finance Committee

2.2    The FC consists of the following members:
2.2.1  the school principal
2.2.2  the financial officer of the school
2.2.3  the treasurer of the governing body
2.2.4  the chairperson of the governing body
2.2.5  one educator representative of the governing body
2.2.6  the deputy chairperson that will act as chairperson


3.1    To draw up an annual draft budget for the following year, and submit it to the governing body before end of                   October annually and parental approval before end of November annually.
3.2    SGB to authorize the amendment of school budget (when the need arises)
3.3    SGB to determine the maximum amount of petty cash to be kept in the school safe.
3.4    SGB or SMT after approval of the Finance Committee consider and approve fundraising projects.
3.5    SGB or SMT after the approval of the Finance Committee appoint someone to control and manage the financial             matters of the Uniform Shop and ensure that it is run in a profitable manner.
3.6    To meet at least once per term.  All meetings must be minuted and an attendance register kept.
3.7    SGB appoint a Financial Officer who will exercise proper control over records of school funds received or spent.
3.8    SGB through Finance Committee appoint someone who will ensure proper control over records/inventories of all             the school
3.9    SGB through Finance Committee ensures that the school financial statements are audited by an Audit Company             appointed by SGB.  The school will appoint the auditor every five (5) years.  Such audit is done or performed on             an annual basis before 31 March of every year.
3.10  Finance Committee to ensure that the audit report is submitted to the SGB on or before end May every year.  To             submit the audited statements to the Department of Education (DOE) before 20 June each year.  
3.11  SGB through Finance Committee ensure that any financial allocation, as the Department requires from time to                 time are claimed and accounted for.
3.12  Finance Committee to ensure that quarterly financial management statements are submitted to the school governing body.


3.13   SGB shall appoint the Principal, SGB Treasurer and Financial Officer to be responsible for             internet                      banking.
          Only those officials shall have the pin code which they are expected to sign for and declare that         they will                not disclose to anyone.


4.1    The school should have a register for all receipt books in which it is recorded which book is issued to whom.
4.2    In the case of cheque payments, ensure that the cheque is not post-dated.  If it is, it is kept in the office until it               becomes valid.
4.3    All monies must be deposited with the financial officer before 11:00 each day, except Fridays when it has to be             deposited before 13:00.
4.4    No person may hold over any money until the following day.
4.5    Receipts for any school fees must be issued on an official receipt, and handed to the relevant payer.  Please                 ensure that the amount received corresponds with the amount on the receipt.
4.6    Receipts may not be amended in any way.  If an error is made when issuing a receipt, the receipt must be                     cancelled and pasted on the corresponding number in the receipt book.  No duplicate may be removed from the           receipt book.
4.7    Each person depositing money at the office of the financial officer will be issued a receipt.
4.8    All monies collected by educators, to be deposited to Pay office immediately after being collected, together  with           a control list.
4.9    Monies received must be banked at least every second day.
4.10   Money is secured in the school safe until it is banked.
4.11   Banking is never done at a scheduled time or on a specific day.
4.12   The school principal, or such other person whom the FC from time to time appoints for this purpose, is                            responsible to spot-check and sign the deposit and receipt books.
4.13   The school principal or another person appointed for the purpose must see to it that no cheques are rolled over              to allow for the immediate detection of possible fraud.
4.14   The office worker who issues receipts in the main receipt book may not make up the bank deposits.
4.15   A post register must also be kept in which all correspondence and monies received are recorded.
4.16   When monies received through the post are handed to the financial officer, he/she must acknowledge receipt in            the post register.
4.17   A receipt must be issued and sent to the payer.
4.18   The total of the main receipt records must correspond with the day’s total deposits.
4.19   If money gets lost or is stolen from a classroom, the particular educator will be held liable for the repayment                    thereof.
4.20   No-one may exchange for cash or draw a personal or any other cheque.


5.1    The FC appoints responsible persons to manage monies during fairs/fetes and other events.
5.2    All monies are deposited with the financial officer; whereafter the latter will issue a receipt to the organizer.
5.3    All payments shall be done by cheque or internet banking.
5.4    An educator does not accept any money.  If an educator does collect funds, there must be strict control of this               and the educator is personally responsible for the money (see 4.21).



6.1  Annually the FC, in conjunction with all stakeholder groups, draws up a draft budget, and submits it to the school           governing body before the end of October.  The governing body deals with it in terms of its constitution.  After a             parent meeting has approved the budget, the FC starts to implement it according to prescribed procedures.
6.2  All stakeholder groups, when submitting their budgets, must submit detail submissions with 1 (one) quotation and         motivations for all proposed budget expenditures.
6.3  The Principal as Accounting Officer is responsible and entrusted by the SGB to control and manage the school             budget.
6.4  Each year the SGB appoints the following persons who accept to take control and manage school funds as per             their job descriptions:  Principal (Accounting Officer), Finance Officer, Hostel Financial Officer, Uniform Shop                 Manager and SGB Treasurer.
6.5  Accurate record must be kept of each and every amount spent.
6.6  Should it become evident that the budget will be exceeded, report should be submitted to the school principal in           good time to enable the Finance Committee to deal with the matter.


7.1  Prior approval for any purchase should be obtained from the Accounting Officer (Principal).
7.2  Prior to granting approval, the Accounting Officer must ensure that the expenditure falls within his/her budget.
7.3  Subsequently the purchaser must obtain an order form (annexure 1) from the financial officer, and complete  it in           full.
7.4  Purchases may only be made after the school principal, or such person whom the FC has appointed for this                   purpose, has granted approval under the following conditions:
7.4.1  Money is available in the specific budget
7.4.2  There are the necessary funds in the school’s current account
7.5  If the school does not have an account with the relevant institution, a cheque may be requisitioned.
7.6  Institutions could also provide their banking details for the electronic payment of accounts.  The same                             authorization  procedures apply.
7.7  Order forms must be checked against the invoice prior to payment.
7.7.1  Once the item has been purchased the invoice or cash slip must be handed to the pay office.
7.7.2  No payments will be made on a quote alone.
7.7.3  If an article is a fixed asset and stock item, copies of the invoice must be handed in to the stock controller.


8.1    All expenditure and purchases can be paid by means of a cheque, EFT or petty cash.
8.2    All cheques must bear TWO signatories.
8.3    The School Governing Body annually appoints the following three persons to be signatories for the school                       cheques:  The Principal (Accounting Officer), SGB Chairperson and SGB Treasurer.
8.4    All cheques must bear any two signatories.  At least two persons must therefore sign cheques.
8.5    No cash cheques may be made out.
8.6    All cheques must be made out to a person or an institution.
8.7    Cheques must be crossed, and the bearer cancelled.
8.8    Endorsement of expenditure and the making out of cheques are verified on a cheque requisition form                             (annexure 2).
8.9    Salaries are paid electronically into beneficiaries’ bank accounts by the end of each month.
8.10  The financial officer punches in all details of electronic payments and the school principal and other authorized             party approve the payment by means of a special banking code.




9.1    Based on the school’s needs, the governing body determines the accounting system that is to be used.
9.2    Systems must be backed up on a weekly basis.


10.1    The financial officer:
10.1.1    implements the accounting system prescribed by the governing body
10.1.2    keeps accurate weekly record of all income and expenditure
10.1.3    issues receipts for all monies received
10.1.4    manages the debit order system
10.1.5    manages electronic transfers according to the prescribed procedure
10.1.6    provides the school principal and FC chairperson with a weekly updated trial balance
10.1.7    keeps record of applications for exemption from school fees, and must submit to an FC meeting a name list                    and all application details in accordance with the parent meeting resolutions
10.1.8    keeps record of all parents who receive reminders to pay as well as those who are summonsed
10.1.9    assist the allocated educator in co-ordinating the asset registers
10.1.10  prepares cheques and keeps accurate record of invoices and proof of expenditure
10.1.11  checks that total expenditure does not exceed the budget
10.1.12  provides each parent/guardian with a monthly account statement
10.1.13  on a quarterly basis submits to the principal and FC chairperson a name list of parents in arrears
10.1.14  prepares FC meeting documentation
10.1.15  immediately reports any irregularities and deviations to the Accouting Officer and then to the SGB
10.1.16  manages petty cash in accordance with the amounts approved by the FC
10.1.17  acts as FC secretary and is assisted by the school governing body independent scribe


11.1  FORMAT

11.1.1  The school must keep an asset register of all movable and fixed school property
11.1.2  The asset register must contain the following sections but is not limited to these sections  Furniture:  classrooms  Furniture and equipment:  offices  Media centre  Literature  Hardware  Software  Computer centre  Sports equipment:  A separate register for each sporting code  Vehicles  Gardening tools  Textbooks  Music:  Instruments and other equipment  Catering committee:  Cutlery and other equipment  Academics:  A separate register for each subject and learning area
11.1.3    All asset registers must be made available on a quarterly basis to the FC chairperson
11.1.4    He/she shall spot-check whether new purchases have been entered into the register
11.1.5    Each Accounting Officer is responsible for updating the asset register with his/her portfolio




11.2.1    All purchases of non-consumable stock must be properly documented in the asset register.
11.2.2    The date of purchase/acquisition, price and/or any guarantee period must be mentioned

11.3    WRITE-OFFS

11.3.1    Annually before 30 November, each Accounting Officer submits to the FC a list of items recommended to be                  written off.
11.3.2    All write-offs must be motivated in writing.
11.3.3    Recommendations must be made on how to deal with the written off items, e.g. items can no longer be                            serviced, have been destroyed, are dated;  items must be donated to an outside institution;  items must be                    sold on tender following approval to alienate as envisaged in Section 58A of SASA etc.
11.3.4    Items must be destroyed under the supervision of the relevant committee chairperson.  The aforementioned                    chairperson must certify in writing that the items have been destroyed.
11.3.5    The FC consolidates the different committees’ or Principal Officer’s requests, and at the following school                        governing body meeting submits to the governing body a complete list of recommended write-offs.
11.3.6    Following the governing body’s approval of write-offs, the lists are returned to the respective Accounting                        Officers. The relevant write-offs are entered into the asset register in red ink, and the original list is filed.


12.1    Stocktaking must be done before 30 September each year.
12.2    The school must have a management plan on stocktaking.
12.3    Each budget manager determines the date and method for such stocktakings.
12.4    A written report on the stocktaking must be submitted to the FC chairperson before 30 November each year.
12.5    Subsequently, the FC chairperson will report on it to the following governing body meeting.


13.1    Salaries are transferred electronically on or before the end of each month.
13.2    Full particulars of all staff members must be continuously updated.
13.3    Where applicable, it must be ensured that PAYE and unemployment insurance deductions are made from all                 salary drawers on a monthly basis.



13.4    The following parties must be paid promptly:
13.4.1   the Unemployment Insurance Fund
13.4.2   tax authorities
13.4.3   the Compensation Commissioner
13.5    Each person’s monthly income and deductions must be fully recorded
13.6    All staff members must be issued IRP5/IB3 certificates at the end of February
13.7    IRP5 reconciliations must also be promptly submitted
13.8    - No person will be granted a loan from school funds
           - Salary advances will only be applicable to SGB paid staff.  
           - Salary advances will be granted, but not more than 10 % of a person’s gross monthly salary 
           - The full salary advance must be deducted from the employee’s salary at the end of the month     immediately                  (the month of the advance)
           - The Principal may grant the advance on condition the Bursar notifies the Finance Chairperson and     informs                  the Treasurer at the Treasurer/Bursar meetings.
13.9    Salaries paid under Article 38(a), i.e. any additional income, must be taxed.

14.    OTHER

14.1    Sponsorship. When requesting sponsorships, the following procedure must be followed:
14.1.1    The Principal or Deputy Principal has to approve all requests.
14.1.2    Contact the Public Liaison Officer/admin office for the list of names.
14.1.3    All letters have to be on official Welkom High stationery and stamped with a school stamp.
14.1.4    Make sure that the letter is proof-read by the Head of the English department to eliminate errors.
14.1.5    All monies have to be receipted by the pay office.
14.1.6    “Thank you” letters have to be sent to all donors and sponsors after the event.
14.1.7    The school will appoint a school attorney every five (5) years.
14.2   Out of pocket claims
14.2.1    These claims must be restricted to a minimum and are usually an indication of bad planning.
14.2.2    Out of pocket expenses must first be cleared by the principal or deputies.
14.2.3    When using own vehicles because school vehicles are not available, the necessary claim forms (annexure 3)                  must be filled in and approved by the principal or deputies.
14.3    Terms and conditions for school fee payments
14.3.1   The terms and conditions for school fee payments is attached as annexure 4.
14.4    R100 per year of service will be spent on a gift for any staff member who is leaving.


Annexure 1:  Order form
Annexure 2:  Cheque/requisition form
Annexure 3:  Transport and out of pocket claims
Annexure 4:  Terms and conditions of school fee payment
Annexure 5:  Salary advances
Annexure 6:  Travelling and subsistence policy
Annexure 7:  Fleet management policy
Annexure 8:  Text book retrieval policy
Annexure 9:  Cell phone allowance policy