Understanding School Governance
Ba
sic
M
5
s
l
o
anual
o
h
c
Fin
S
r
o
anc
f
ial Systems
)
l
(train
a
u
ing man
Materials developed by the Media in Education Trust (MiET) for the KwaZulu-Natal
Department of Education and Culture, under a subcontract with Aurora Associates
International, Inc., Washington, D.C., for the U.S. Agency for International Development.
This Manual was compiled and published for the KwaZulu-Natal Department of
Education by a team that included: Dr M Lötter, Department of Education; Mr C Waddy,
Education Consultant; Mr S Naicker, Education Consultant; and Mr F Goolam,
USAID/South Africa.
Material may be reproduced if full credit is given.
This manual is based on an earlier version produced by the School Governance Unit,
KwaZulu-Natal Department of Education and Culture.
Edited by:
Translated by:
Illustrations:
Design:
DTP:
K Jones
S Ngubane and L. Makhubu (isiZulu)
L Venter (Afrikaans)
Taken from ‘Account-ability’ by Jean de la Harpe
C vd Merwe & J Nicholson
C vd Merwe
This publication was made possible through support provided by the
U.S. Agency for International Development, under the terms of Contract
No. 674-I-00-00-00007-00. The opinions expressed herein are those of
the author(s) and do not necessarily reflect the views of the U.S.
Agency for International Development.
CONTENTS
Page
Introduction
i
Finance Committee
iv
Delegations
iv
Section 1: Banking
1
Section 2: Accounting Records
19
Section 3: Budgets
51
Section 4: Petty Cash
67
Section 5: Stock Control
73
Section 6: Registers
93
Section 7: Annual Financial Statements
113
Section 8: Answers
127
Index for manuals 4 and 5
151
A comprehensive index can be found at
the back of this manual.
Introduction
INTRODUCTION
This manual should be used in conjunction with Manual 4 which contains the
instructions of the KwaZulu-Natal Department of Education and Culture regarding
school funds. Section 37 of SASA makes it clear that a school’s governing body is
responsible for the school fund. The governing body, and especially the members of
its financial committee, should therefore clearly understand how the finances of a
school are administered.
This manual will help you to manage the money matters of the school. There are
very strict rules for controlling money. You need to know and understand these
rules so that your school fund meets legal requirements. These rules will also help
you to protect the school’s interests and protect yourself by doing the job
properly.
The financial guidelines given in this training manual are based on several important
documents:
The main rules are given in the South African Schools Act, 1996.
More guidelines are given in the Provincial Regulations.
Very specific instructions are provided in the ‘School Fund Department
Instructions’ issued by the KwaZulu-Natal Department of Education and
Culture. (See Manual 4)
It is suggested that, in order to preserve this manual, the
exercises should not be completed in the manual itself but
rather on copies of the relevant forms. Blank forms suitable
for copying have been provided throughout the manual.
Answers to all the exercises in this manual can be found in Section 8.
i
Introduction
Throughout this manual you will find additional information in boxes, The
boxes for different kinds of information look different from each other.
They are explained on this page.
Where there is information that is regulated by
legislation, you will see a box like this.
This box will tell you where to find more information in
another manual or part of this manual.
eg
This box will give examples.
This box will give you the definition or meaning of a word
or concept.
The information in this box is an exception to the rule or
a special case.
If there is more detailed information about how to do
something it will be in a ‘how to’ box.
The information in this box is something that you should
take particular note of.
ii
Introduction
Here is a useful diagram to help you to understand financial responsibilities and
delegations in a school.
SCHOOL GOVERNING BODY
(Ultimate responsibility for school’s financial matters)
Finance Committee, including Treasurer
PRINCIPAL
‘Accounting Officer’ (Legally accountable)
DISTRIBUTION REGISTER (Personally controls system of receipt books). For other tasks, should
delegate in writing - and check regularly
Delegation: FINANCE OFFICER
(Record Keeping)
SCHOOL FEE REGISTER
POSTAGE REGISTER
REMITTANCE REGISTER
COLLECTION SHEETS
Delegation: PETTY CASH
Delegation: TELEPHONE REGISTER
Delegation: STOCK CONTROL
Stock controller
Stock-taker (once a year)
Board of Survey
Delegation: TUCKSHOP
Tuckshop Committee
Tuckshop Manager
Delegation: FUND-RAISING
Fund-raising Committee
Delegation: PSNP
PSNP Committee Chairperson
Treasurer
Secretary
iii
Introduction
Finance Committee
The overall responsibility for the control of school money lies with the governing
body of the school. Usually the principal of the school is the ‘accounting officer’.
That is, s/he is ultimately accountable for the school’s money and property.
To help the governing body and the principal, the SA Schools Act says that the
school should set up a Finance Committee. The head of the finance committee is
the treasurer of the governing body.
Duties of the Finance Committee
The finance committee helps the school by providing a range of ‘high level’
Functions. The finance committee will:
Keep overall control of school money
Draw up the budget each year
Approve all expenditure (if it fits the budget)
Advise on ways of fundraising
Assist in drawing up annual financial statements
Advise on ways to invest surplus money
Check financial records internally
Suggest who should be appointed as the auditor
Advise the governing body on amount of school fees
Advise the governing body on exemptions from schools fees
Delegations
The finance committee will probably ‘delegate’ responsibility for money matters to
a person who will be available on a day-to-day basis to do the job. The principal and
the treasurer may be too busy to look after all the money. In this manual we are
assuming that the school has appointed a ‘finance officer’.
The finance officer may be an administrator (non-educator at the school), an
educator or a parent (who is available most of the time). The finance officer
records all financial transactions, and keeps the principal, the treasurer, and the
finance committee fully informed about financial matters. This delegation of
responsibility to the finance officer should be made in writing.
There may be other delegated tasks. For some financial jobs, e.g. looking after
petty cash, another specific person may be appointed to take responsibility. If
money is stolen or lost, that person will be responsible for the missing money. For
all these duties, the principal must make sure that responsibility is properly
delegated. If delegations are not properly done, then ultimately the responsibility
lies with the principal. So the principal should work closely with the finance officer
to ensure that all the rules are being followed.
iv
Introduction
Who is responsible for financial tasks in your school?
Every school should have a clear understanding of the responsibilities of the
treasurer, of the finance officer, of the principal, and other persons delegated for
specific jobs. These may differ from school to school.
Here are some of the financial tasks to be done in a school. When you have finished
this manual, you will have learned about some of the tasks to be done. You should
have discussions in your school then add the other tasks to be done. Tick the
person responsible for each task.
TASK
1
Receives money and writes
receipts
2
Banks money
3
Writes cheques
4
Records Receipts Cash Book
and Payments Cash Book
5
Records Petty Cash Book
6
Prepares draft Annual Budget
7
Prepares Annual Statements
8
Presents financial reports at
Annual General Meeting
9
Controls fund-raising
10 Checks all financial records
regularly
11 Controls stock in the school
12 Collects school fees from
learners
13
14
15
16
17
18
19
20
v
PRINCIPAL
TREASURER FINANCE
OFFICER
OTHER
(WRITE NAMES)
1
BANKING
This section will cover how to open and use a bank account on behalf of your
school’s governing body.
1.1 Why do we need a bank account?
Every school should have a bank account so that money can be safely stored, and
accounted for. You should never leave money lying around in the school. The Schools
Act and provincial regulations state that each school should open an account at a
bank. You can deposit the school’s money there, for safe-keeping and convenience.
You can also withdraw money when you need it by writing out a cheque.
The governing body (which includes the principal of the school) may open a bank
account on behalf of the school. The people involved must be elected adult
members of a governing body.
Legally, a school financial year starts on 1 January and ends on 31 December. So
you should open the bank account well in advance of the first day of school in the
new year (if your school does not already have a bank account).
1.1.1 Which bank should we use?
The governing body should decide on which bank to use. It must be a registered
commercial bank. Each member may have a different opinion about which bank
would be best, so the whole governing body should agree on the decision. A good
way to do this would be to vote. Before voting, the governing body may want to talk
to other members of the school community or get advice from more knowledgeable
people (for example, the finance committee).
After the governing body has agreed on which bank to use, the treasurer or
principal will make arrangements with the bank.
In deciding, you need to think about issues like:
How close is the bank to the school? Will it be convenient to go there
daily?
How safe is the area where the bank is located?
Which bank offers the best rates? Some banks offer a free banking
service.
Which bank will let your school deposit cash free of charge? There is
usually a charge for depositing cash. This is an important question for
schools that handle large amounts of cash from school fees.
Are electronic banking facilities available?
1
Section 1: Banking
1.1.2 What type of account should we open?
The South African Schools Act says that every school
must open a School Fund account. This needs to be a
‘current’ account. A current account is sometimes also
called a cheque account.
SASA Section 37(3)
A current account is an account where you deposit money and withdraw it as often
as you need to. It is called a ‘cheque account’ because you use cheques to withdraw
the money from the account. Most organisations have a cheque account.
You can deposit and withdraw money at any time, as often as you like.
You can use cheques to pay debts (and avoid carrying large amounts of cash).
At the end of each month the bank returns to you all the cheques you have
given to your creditors that have been cashed at the bank. These banked
cheques can be used as proof of payment.
By using cheques you can reduce fraud. Cheque payments are easier to trace
than cash payments.
If your school has extra money (called ‘surplus funds’), it should keep this money in
a bank or Post Office Savings Account, or a Fixed Deposit Account.
1.1.3 Who should be signatories of the account?
The governing body needs to decide which people may sign cheques on behalf of the
school. These people are called ‘signatories’.
The SA Schools Act specifies that there should be three signatories. One of them
should be the principal (since s/he is the accounting officer of the school), and you
can choose who the other two will be. You can choose any two members of the
governing body. Many schools choose the treasurer and the finance officer as
these people will know a lot about the school’s finances. You should arrange with
the bank that any two of these three people may sign a particular cheque.
You need to be very careful when choosing the signatories. They need to have a
good reputation as honest people. They also need to be easily available. There is no
point having a signatory who is a migrant worker and who will be away for months at
a time. Be sure that trustworthy people are chosen to be the guardians of your
school’s funds.
1.1.4 How do we apply for a bank account?
An official of the bank will be available to help you complete the forms when you
are applying to open an account. Don’t hesitate to ask questions. It is much better
to ask questions at this stage than to make mistakes because of ignorance.
2
Section 1: Banking
Each signatory will need to sign a form, giving ‘specimen signatures’, and stating
what position he or she holds, e.g. treasurer, secretary, chairperson.
The bank will also ask for a deposit to open the account. Some banks require a
specific amount as a minimum deposit e.g. R100, before they will open an account
for a client. The bank clerk will tell you what the amount is for your governing
body.
The bank may also ask for copies of the following documents:
a copy of your governing body’s constitution;
a copy of the South African Schools Act;
a copy of the Provincial Regulations for school governance;
a copy of the identity documents of the signatories.
1.1.5 How often should the signatories be updated?
Each year, after the office bearers of the governing body have been newly elected,
the secretary should write to the bank to inform them of the signatories for your
school. Most banks will probably also ask you to fill in a form to change the
signatories.
It would be a good idea to attach a copy of the Minutes of the Meeting when the
signatories were changed. You could also get a letter of support from your Circuit
(or District) Manager to support the change in signatories.
1.2 How do we receive money and write receipts?
The finance officer will receive money in a number of ways:
cash (handed over the desk/counter/table)
cheque
money order or postal order (received by post)
banker’s draft
When receiving cheques, you need take great care that they are correctly
completed, otherwise you will not be able to collect the money from the bank.
For hints about checking cheques, look at the
Department Instructions, Section 6.2.
When you receive money, in any form of payment, you always need to write a
receipt and hand it to the person who paid the money. The receipt is a ‘source
document’, that is, as proof of payment.
You can buy a Receipt Book from a stationery shop (e.g. CNA) or your school could
print special Receipt Books with the school’s name on each receipt.
3
Section 1: Banking
Here is an example of a receipt form. The numbers on the form
explain the important parts of the receipts:
eg
AMANDLA SECONDARY SCHOOL
12301 1
Date _________ 20____
2
3
Received from _________________________________________________
4
The sum of ______________________________________________Rands
and _____________________________________________________cents
5
For __________________________________________________________
R
6
:
7
CHEQUE
CASH
with thanks
Information on a receipt
1. Serial number of receipt. Each receipt has a different number.
2. Date on which the money was received.
3. Name of person who paid the money.
4. Amount written in words.
5. Reason for the receipt of the money.
6. Amount written in figures.
7. Signature of finance officer who received the money on behalf of the
school.
Receipt books have many receipts in them, each with a separate number, and each
with a self-carbonised duplicate. Write the receipt very clearly. You should give
the original to the person who is paying the money and you should keep the
duplicate in the
For more information about receipts, look at the
receipt book.
Departmental Instructions, Section 6.5.
Here are two examples of receipts, completed by the finance officer.
Example 1: Completed receipt form
On 17 May 2001; Mrs PN Ntuli sent R15 in cash with her daughter,
Thandi for school fees. Thandi handed this money to her class
educator, Mrs Gumede, who issued her with a receipt from her class receipt
book. Mrs Gumede then handed the money, the class receipt book and the
school fund register in to the finance officer, who issued the following receipt.
eg
4
RECEIPT
KWAZULU-NATAL DEPARTMENT OF EDUCATION
AND CULTURE
J GWALA PRIMARY SCHOOL
Official stamp
Date: 17 May 2001
Received from:
Mrs PN Gumede
The sum of:
Fifteen rands only (Cash)
In payment for:
School fees for Thandi Ntuli Grade 2
Allocation:
School fees
Number: 019
R15-00
Signature: J Xuma
Finance Officer
Section 1: Banking
eg
Example 2: Completed receipt form
Mr P Zondi gives the finance officer a cheque for R100 as a
donation to the school on 17 May 2001.
RECEIPT
KWAZULU-NATAL DEPARTMENT OF EDUCATION
AND CULTURE
J GWALA PRIMARY SCHOOL
Official stamp
Date: 17 May 2001
Received from:
Mr P Zondi
The sum of:
One hundred rands only (Cheque)
In payment for:
Donation to the school
Allocation:
Donations
Number: 020
R100-00
Signature: J Xuma
Finance Officer
1.3 How do we deposit money?
All money received by the school must be deposited on a daily basis. Banks have
specially printed forms to be filled in when you deposit money in your account. You
could ask the bank for a deposit book for the school. The advantage of a deposit
book is that all deposit slips are bound together so they cannot get lost. They are a
permanent record of all money deposited.
Each deposit form is printed in triplicate and is self-carbonised. You will need to
fill in the information and sign at the bottom of the page.
The bank teller will stamp all copies when s/he receives the money you are
depositing, and hand back the deposit book to you.
For further instructions about depositing, look at the
Departmental Instructions, (Section 6.11).
Now complete exercises 1.3a and 1.3b.
5
Section 1: Banking
Exercise 1.3a: Deposit slip
Look at this example of a deposit slip, and answer the questions
1.. On what date was the
money deposited?
2. Into whose account is
the money being
deposited?
3. At which branch is the
account kept?
4. What is the account
number of the school?
ABC BANK
Account Deposit/Rekening-deposito
Subject to conditions printed overleaf
Onderworpe aan voorwaardes op keersy gedruk
Date
21 February 2001
Datum _______________
Account Name
Boiteko School
Rekening Naam __________________________________________
Branch
Pietersburg
Tak ____________________________________________________
Branch No.
Tak-nr.
6 5 4 3 2 1
5. What type of account is
it?
Account No.
Rekening-nr.
1 2 3 4 5 6 7 8 9 0
6. Two cheques were
deposited. Who wrote
the cheques?
Type of Account
Tipe Rekening
7. In addition to the
cheques, some cash was
deposited. How much
cash was in notes?
Reference No.
Verwysings-nr.
Cheque
Tjek
N.B.: List money/postal orders
individually under cheques.
L.W.: Geld/posorders moet
afsonderlik onder tjeks aangedui
word.
Cheques/Tjeks
Savings
Spaar
Notes
Note
Coins
Munt
Sub Total
Sub-Totaal
Loan
Lenings
Time deposit
Termyn deposito
100 00
4 50
104 50
Drawer’s Name/Trekker se Naam
1.
8. What is the total
amount deposited?
X
2.
200 00
A. Sello
J. Hlope
35 00
3.
4.
9. Who signed the deposit
slip?
5.
6.
7.
10. How many copies of the
deposit slip are there?
What happens to the
top copy (original)?
8.
Paid in by:
Inbetaal deur:
Total
Totaal
R
Signature
Handtekening
For office use only
Slegs vir kantoorgebruik
Item No. 2250 (6/96) PMS
Answers to these questions are at the back of this manual.
6
339 50
Section 1: Banking
Exercise 1.3b: Deposit slip
Imagine that you are the finance officer of the school. Complete the
deposit slip using the following information. Sign your own name.
ABC BANK
Name of school:
BOITEKO SCHOOL
Date: Today’s date
Account Deposit/Rekening-deposito
Subject to conditions printed overleaf
Onderworpe aan voorwaardes op keersy gedruk
Date
Datum _______________
Account no: 1234567890
Branch: Pietersburg
Account Name
Rekening Naam __________________________________________
Branch no: 22-56-13-00
Branch
Tak ____________________________________________________
Money being deposited:
Branch No.
Tak-nr.
Coins
12 x 1c coins
10 x 5c
4 x R2
3 x R5
Account No.
Rekening-nr.
Bank notes
10 x R10
4 x R20
N.B.: List money/postal orders
individually under cheques.
L.W.: Geld/posorders moet
afsonderlik onder tjeks aangedui
word.
Reference No.
Verwysings-nr.
Type of Account
Tipe Rekening
Cheque
Tjek
Cheques/Tjeks
Cheques:
Savings
Spaar
Loan
Lenings
Time deposit
Termyn deposito
Notes
Note
Coins
Munt
Sub Total
Sub-Totaal
Drawer’s Name/Trekker se Naam
Drawer
Amount
M Bodika
R70.00
K Mbaya
R35.00
C Mgotsi
R35.00
1.
2.
3.
4.
5.
6.
7.
8.
Paid in by:
Inbetaal deur:
Total
Totaal
R
Signature
Handtekening
For office use only
Slegs vir kantoorgebruik
Item No. 2250 (6/96) PMS
Check your deposit slip against the one at the back of this manual.
7
Section 1: Banking
1.4 How do we withdraw money from our current
account?
Cheque: A cheque
is a written instruction to
the bank to take money
out of your account and
give it to someone else.
All payments from the School Fund account must be
made by cheque. A cheque is used to draw money out of
the current account. The bank will give you a cheque
book when you open the bank account.
There are three parties to a cheque:
the ‘payee’ (the person or school or business who will receive the money)
the ‘drawer’ ( the account holder - the person or school or business - who
writes the cheque)
the ‘drawee’ (the bank on which the cheque drawn)
In this section, you will get more information about cheques and how to use them.
For further instructions about making payments from the School
Fund, look at the Departmental Instructions, Section 6.19,).
eg
Example: A cheque
Here is an example of a cheque from Amandla Secondary School. The
numbers below explain the important parts of the cheque:
Date
Datum
To
Aan
For
Vir
ABC BANK
1
10
Balance brought
forward
Saldo oorgebring
Pay
Betaal
Total
Totaal
or Bearer
of Toonder
5
7
This cheque
Hierdie tjek
R
Withdrawals
Onttrekkings
9
}
1803
P O BOX 361 HOWICK 3290
}
4
1803 I: 220725I:
9000405043 02
1. Cheque counterfoil (also called ‘cheque stub’)
2. Name and branch of bank where the account has been opened
3. Date on which the cheque was written
4. Serial number on the cheque. Each cheque has a different number
5. Name of person who will receive the money
6. Amount of money written in figures
7. Amount of money written in words
8. Signatures of ‘signatories’
9. Bank account number
10. Reason for paying
11. The bank’s branch code
8
6
AMANDLA SECONDARY SCHOOL
Sub total
Subtotaal
369
22-07-25-44
Date
3
Datum
____________________
HOWICK 5061
Deposits
Inbetaalings
Balance carried
forward
Saldo oorgedra
11
2
(Registered Commercial Bank)
Now complete exercise 1.4a.
8
Section 1: Banking
Exercise 1.4a: Cheque
Look at this example of a cheque, and answer the following questions:
Cheque
Counterfoil
Date: 2001 June 4
B. Jabula
To: ___________
Settlement
For: ___________
______________
of debt
Amount:
R110-20
______________
ABC BANK le
b
22-07-25-44
ly
n
ra
Yeoville Branch
sfe yee O
an
r a Pa
Date: 2001 June 4
tT
No ount
c
A c B. Jabula
PAY _______________________________________
or bearer
One hundred and ten rand and twenty cents
THE SUM OF _______________________________________
__________________________________
R110-20
Cheque no. 64032
No. 64032
220725
90000405043 02
1. On what date was the cheque written?
2. What is the number of the cheque?
3. To whom was the cheque made out?
4. What is the purpose of the cheque ?
5. Who signed the cheque?
6. What is the amount of the cheque?
7. On the cheque, the amount is written twice (in words and in figures). Why do
you think this is done?
8. There is a ‘perforation’ between the counterfoil and the cheque. This helps in
tearing out the cheque. What is the purpose of the counterfoil?
Answers are given at the back of the manual.
9
Section 1: Banking
1.4.1 What are the rules for writing cheques?
These rules are
given in more detail
It is very important to use cheques in a responsible and
in Section 6.20 of
accountable way. There are many cases of cheque
the Departmental Instructions.
fraud, so banks have lots of rules about how cheques
should be completed. Here are some of those rules:
1.
Always cross your cheques with the words ‘not transferable’ or ‘nontransferable’ in bold print across the face, (preferably by using a
rubber stamp) in red ink. Delete the words ‘or bearer’. A crossed
cheque can only be paid into a bank account. This means that the
person to whom the cheque is made out must have a bank account into
which the cheque can be deposited. This helps to prevent fraud. You
will have a claim against a bank that negligently pays the cheque to a
wrong person. Once you have marked a cheque with the words ‘not
transferable’ or ‘non-transferable’ you may not cancel these words and
the law requires that any purported cancellation should be ignored. If
a person does not have a bank account, then you may issue an
uncrossed cheque in the name of the individual. If a cheque is not
crossed a person can have payment in cash across the counter.
2. Always use an ink or ballpoint pen, not a pencil. It should be a black or
a blue pen.(Not red or green, which are used by auditors).
3. Write very clearly. It is important to be able to read the words and
the figures.
4. Preferably write the date in this order: year, month, day. (Cheques
are valid for six months only, so the date needs to be clear.)
eg
Write the date like this:
2001 June 04
or
2001/06/04
Always make sure the date is written clearly.
5. Write the amount of money in words and in figures. The amounts must
be the same, otherwise the cheque is invalid.
6. The signatures on this cheque should be the same as the signatories
used on the bank application form. If the signatures are different, the
bank will reject the cheque.
7. The Departmental Instructions and the banks themselves insist that you
may not make alterations when writing a cheque.
8. If you make a mistake when writing the cheque, cancel the cheque by
drawing a line across it and print the word ‘CANCELLED’ on the
cheque. If you have removed the cheque from the cheque book, pin it
back in. Then write a new cheque very carefully.
9. When writing the cheque, write the figures as near as possible to the
left-hand side of the space (so that extra figures can’t be filled in).
In the section with words, draw a line across any blank spaces (so that
extra words can’t be written).
10
Section 1: Banking
10. Always fill in the counterfoil, giving the date, the name of the payee
(person receiving the money), reason for payment, and amount.
Now complete exercise 1.4b.
Exercise 1.4b: Writing a cheque
Can you find at least three mistakes in the cheque and counterfoil
below?
Date:
ABC BANK
T. Mbeki
To: ___________
Yeoville Branch
Deposit on
For: ___________
______________
car
T. Mbeki
PAY _______________________________________
or bearer
Amount:
R3000-00
______________
__________________________________
22-07-25-44
Date: 2001 June 4
thousand rand
THE SUM OF Three
_______________________________________
R3300-00
Cheque no. 64034
No. 64034
220725
90000405043 02
Answers are given at the back of this manual.
1.5 How can we make cheques safer?
When you receive the cheque book from the bank, keep it locked away, in a safe
place.
You should always check that all the pages are in a new cheque book. (There
have been cases when one cheque has been torn out and has been used to steal
money from the school).
The governing body should have a rule about who is responsible for writing
cheques. Cheques should be written by one person only, usually the finance
officer. Each cheque needs to be signed by two of the signatories.
Write the name of a particular person (or school or business) in the ‘PAY’ line.
Cross out the words ‘or bearer’. If you don’t cross out these words, then anyone
who is ‘bearing’ (holding) the cheque could collect the money. If ‘bearer’ is
crossed out, then only the person or school named may collect the money.
‘Cross’ the cheque. To do this you draw two parallel lines across the cheque. The
cheque then cannot be cashed over the bank counter; it must be paid into a bank
account.
Write the words ‘Not transferable’ between the crossed lines. This means that
the money can be paid only into the bank account of the person named. (Or, you
could use a special ‘Not transferable’ stamp).
An unusual way of making a cheque safer is to write the maximum amount in
words at the bottom of the cheque, e.g. ‘Not more than R100’.
11
Section 1: Banking
eg
Here is a cheque, made as safe as possible:
Date: 4 June 2001
ABC BANK
B. Jabula
To: ___________
ab
Yeoville Branch
fer
t
No
22-07-25-44
le
ns
Tr a
Date: 2001 June 4
Settlement
For: ___________
______________
of debt
B. Jabula
PAY _______________________________________
or bearer
Amount:
R110-20
______________
__________________________________
One hundred and ten rand and twenty cents
THE SUM OF _______________________________________
Cheque no. 64032
No. 64032
220725
R110-20
not more than R111.00
90000405043 02
Now complete exercise 1.5.
Exercise 1.5: Writing a safe cheque
We have an account with Sipho’s Stores and we owe them R75.00.
Complete the cheque and counterfoil below (using today’s date). Assume that you
are one of the school signatories, and that your partner will sign as principal.
Make the cheque as safe as possible.
Date:
ABC BANK
To: _____________
Yeoville Branch
For: ____________
PAY ______________________________________________ or bearer
________________
THE SUM OF ______________________________________________
Amount:
________________
_________________________________________
22-07-25-44
Date:
Cheque no. 64032
No. 64032
220725
90000405043 02
Check your example with that at the back of the manual.
12
Section 1: Banking
1.6 What are dishonoured cheques?
Sometimes cheques are ‘dishonoured’. This means that the bank refused to pay
money to the person (or school or business) presenting the cheque for payment.
There can be many reasons for dishonouring a cheque. Some of them are:
The drawer (the person who wrote the cheques) may not have enough
money in his or her account to meet the cheque. This is called ‘insufficient
funds’. You should never write a cheque if you know that there are
insufficient funds in your account to meet the cheque.
The cheque may be ‘stale’. Cheques are usually valid for six months only. If
the cheque is stale, it will be dishonoured.
The cheque may be ‘post-dated’. This means that the date on it is some
time in the future. If the cheque is presented for payment before the
correct date, then it will be dishonoured.
The drawer may have stopped the cheque. For some reason, the drawer may
have contacted the bank and asked them not to pay the money.
Correcting fluid may have been used on the cheque
Torn or ‘mutilated’ cheques that have been stuck together with sticky-tape.
The bank will also dishonour these.
eg
For example, you may have bought a computer and paid for it by
cheque; but the computer was not delivered on the due date. You
could then contact the bank and tell them to stop payment of the
cheque (if it has not already been cashed).
1.7 What supporting documents should we have for
payments?
When any kind of payment is made, these rules are usually followed:
All payments must be made by cheque.
Very small payments are made from Petty Cash.
It is important to prepare a Payment Advice Form (also called ‘Cheque Requisition’
form) when making cheque payments. Each cheque should have its own ‘Payment
Advice Form’. This form records all the essential information about cheques:
Date of cheque
Reason for payment
Number of cheque
Signature of official, and date signed
Amount of cheque
Approval of principal, and date signed
Name of payee (receiver)
You should attach the cheque to the bottom of the Payment Advice so that
signatories can check everything before signing their names.
13
Section 1: Banking
eg
Example of a payment advice form:
(NAME OF SCHOOL)
PAYMENT ADVICE
CHEQUE DATE: _____________________
SCHOOL
STAMP
CHEQUE NO: ____________________
The Principal
PAYMENT FROM SCHOOL FUND
Kindly approve the payment of ____________________________________________
(Amount in words)
to ________________________
(Name of Payee)
_____________________________________
for ____________________________
(nature of goods supplied or services rendered).
PURPOSE: ____________________________________________________________
______________________________________________________________________
I hereby certify that the payment is a proper charge against school funds, is correct with
regard to computation, is fair and reasonable and is duly supported by the attached
authorised vouchers. The payment is in accordance with estimates of expenditure and will
be met from the amount budgeted for ________________________________________
(which budget will be debited)
__________________________
NAME OF OFFICIAL AND DESIGNATION
__________________
DATE
APPROVED: ________________(Principal)
__________________
DATE
AFFIX CHEQUE HERE
(Preferably so that the Reverse of the Cheque Leaf is accessible).
1.7.1 What should signatories check?
If you are a signatory to the school’s cheque account, you have a real responsibility
to look after the financial interests of the school. Before signing any cheque,
always check the following:
Was approval obtained for this service, e.g. plumbing repair?
Are there proper signatories on the source documents, e.g. Invoice?
(That prove that the service was delivered correctly, or that all the
goods were received).
14
Do the charges on the invoice match those on the quotation or contract?
Section 1: Banking
Is the calculation on the invoice correct?
Are the ‘source documents’ attached to the cheque? (That is, invoice and
payment advice).
Now complete exercise 1.7.
Exercise 1.7: Payment advice form
(NAME OF SCHOOL)
SCHOOL STAMP
PAYMENT ADVICE
632
CHEQUE NO: ___________________
2001-06-11
CHEQUE DATE: _____________________
The Principal
PAYMENT FROM SCHOOL FUND
(One hundred rand)
R100-00
Kindly approve the payment of ____________________________________________
(Amount in words)
S Dlamini
to ________________________
(Name of Payee)
_____________________________________
plumbing services
for ____________________________
(nature of goods supplied or services rendered).
Leaking tap in staffroom
PURPOSE: ____________________________________________________________
Fix toilet flushing mechanism
______________________________________________________________________
I hereby certify that the payment is a proper charge against school funds, is correct with
regard to computation, is fair and reasonable and is duly supported by the attached
authorised vouchers. The payment is in accordance with estimates of expenditure and will
Repairs
be met from the amount budgeted for ________________________________________
(which budget will be debited)
Finance Officer
__________________________
NAME OF OFFICIAL AND DESIGNATION
2001-06-11
__________________
DATE
APPROVED: ________________(Principal)
2001-06-11
__________________
DATE
AFFIX CHEQUE HERE
(Preferably so that the Reverse of the Cheque Leaf is accessible).
Questions:
1. On what date was the cheque written?
2. What is the number of the cheque?
3. What is the amount of the cheque?
4. Who is the payee (receiver) of the cheque?
5. Why is this person receiving payment?
6. Which two officials are the signatories here?
7. Did the principal approve this payment?
Check your answers against those at the back of the manual.
15
Section 1: Banking
1.8 What is a BANK STATEMENT?
Each time you issue a cheque and give it to another person, that person will deposit
the cheque into his or her bank account. That person’s bank will claim the money
from your bank. When the cheque is ‘presented’ at your school’s bank, the bank will
check that the cheque is correct in every way. If everything is in order your bank
will pay the money. They will take the money out of your account, and ‘debit’ your
account. This will decrease your balance in the bank.
Similarly, when you deposit cash or cheques into your account, the bank will ‘credit’
your account - thereby increasing your bank balance.
Once a month, the bank will send you a bank statement. You should ask the bank to
issue your statement on the last day of every month. They usually send the cheques
that have been presented for payment during the month along with your statement.
The bank statement is a copy of your account in their records. Bank statements
usually have the following information:
Opening balance.
If there is a favourable balance, it is called a ‘credit’ balance; that is why the
letters CR are shown next to the balance. If the balance is an overdraft, it is a
‘debit’ balance, and the letter DR will be shown.
Debit column
When one of your cheques is presented at the bank, the money will be taken out of
your account and given to the person presenting the cheque. The amount will be
written in the debit column, and the balance will be reduced.
Credit column
When money is deposited into your account, the amount is written in the credit
column, and the balance will be increased.
Bank charges
The bank has the right to take money out of your account for bank charges. These
are the bank’s administrative expenses. These will reduce the balance further.
Bank orders
This is an instruction by you to the bank to pay a certain amount to a third party at
the same time of every month.
Debit orders
The school may have arranged for regular monthly payments (eg electricity) to be
deducted from the account.
Now complete exercise 1.8.
16
Section 1: Banking
Exercise 1.8
AFRICA BANK
YEOVILLE BRANCH
Account of: People’s Co-op
Account no. 987 654 321
Statement No. 16
DATE
PARTICULARS
July 1
2
5
Balance
Deposit
Service Charge
Cheque no. 1234
Dishonoured cheque 787
Deposit
Cheque no. 1236
Ledger fees
Deposit
Cheque book
Cheque no. 1235
Deposit
6
10
15
18
23
28
DR
CR
189.40
56.42
653.80
410.00
1734.00
240.90
11.20
329.10
3.00
430.40
230.45
BALANCE
902.45 CR
1091.85
1035.43
381.63
28.37 DR
1705.63 CR
1464.73
1453.53
1782.63
1779.63
1349.23
1579.68 CR
1. What is the balance in our bank account on 1 July?
2. When we deposited money, did this increase or decrease the bank balance?
3. On 6 July, the bank debited our account with R410. We are told that this is a
dishonoured cheque. When we deposited the cheque last month, the bank
would have credited our account (and increased our balance). Now that the
cheque has been dishonoured, the earlier entry is being reversed. Is the
entry increasing or decreasing our bank balance?
4. How many times did we deposit during the month?
5. How many cheques that we issued were presented to the bank during the
month?
6. When cheques were presented for payment, did they increase or decrease
the balance in the bank?
7. What is the balance on the last day of the month?
Check your answers against those at the back of the manual.
17
Section 1: Banking
The Bank Statement is a very important document. It should be filed for safekeeping. The Statement is important for the following reasons:
18
There is information on the Statement that you can only get from this
document.
At the end of each month, you will need the Statement to ‘reconcile’ the
school’s records with the bank’s records.
When the auditor checks your school’s financial records, s/he will ask for
all the Bank Statements.
2
ACCOUNTING RECORDS
In this section you will learn about three sets of financial records kept in a school:
Receipts Cash Book
Payments Cash Book
Bank Reconciliation Statements
The accounting system you are going to learn in this section is a very basic one. It
is a very simple adaptation of the ‘double entry system’. This section will teach you
how to keep careful and accurate records without having to learn the complications
of double entry accounting!
Some schools keep their financial records by using special accounting programmes
on a computer. Computer systems are a version of double entry accounting.
Basically, the accounting system used in a computer programme is the same as the
system you are going to learn about in this section.
2.1 What is the Receipts Cash Book?
The easiest way to keep a record of all money received is to use a columnar
‘Receipts Cash Book’.
As you know, you issue a receipt each time you receive money (cash in the office, or
through the post). Receipts should be recorded on a daily basis.
Look at the example of a Receipts Cash Book in Exercise 2.1a. There is a main
heading (RECEIPTS CASH BOOK) and the month (June 2001) Then there are many
columns:
Date (Year, month and date)
Name of payer
Receipt number
Many money columns
The first money column is called the ‘Control’ column, and then there are several
specialised money columns. Your school can change these specialised columns to suit
its activities.
For more details on how to complete the Receipts Cash Book,
look at the Departmental Instructions, Section 6.17.9.
Now complete exercise 2.1a.
19
June
MONTH: .............................
RECEIPTS CASH BOOK
YY-MM
DD
RECEIPT CONTROL
NO.
TOTAL
01-06
018
FEES
c
R
DONATIONS TUCKSHOP
SCHOOL
R
SUNDRIES
PSNP
c
R
c
R
c
500
R
c
SUNDRIES
R
c
R
R
c
13
M Moosa (Tuckshop)
13
Deposit
15
EN Gumede (Educ.)
019
15
P Zondi
020
100 00
100 00
R Patel CC
021
100 00
50 00
50
00
D Smith
022
180 00
100 00
80
00 Brochure
15
Deposit
17
D Jones (Principal)
500 00
BANK
DETAILS
RECEIVED
c
00
500 00
00
15
00
Brochure
395 00
023
50 00
50
00
Exercise 2.1a: The Receipts Cash Book
1. How many receipts were issued on 15 June?
Section 2: Accounting Records
INTEREST
2. To whom did we issue receipt no.019?
3. Why did this person pay?
4. How much did P Zondi pay?
5. Why did P Zondi give the money?
6. R Patel CC (a business) gave R100.00. This amount was
given for two reasons. What were they?
50 00
7. Once a day, all money received must be deposited in the
bank. Notice that a line is drawn under the amounts in
the Control column, and the total is written in the Bank
column. What was the amount deposited on 15 June
2001?
8. When money is deposited in the bank what is the
‘source document’ to prove that the bank received the
money?
Check your answers against those at the back of the
manual.
20
MONTH DAY DETAILS
YEAR: 2001
.............................
Section 2: Accounting Records
2.1.1 How do we receipt direct deposits?
Sometimes parents do not hand in money at the school. They go straight to the
bank and deposit the money directly into the School Fund account. This is called a
direct deposit. These days, many schools are encouraging parents to pay School
Fees by direct deposit.
If a direct deposit has been made, the parents should complete the Deposit Slip in
triplicate:
The bank will stamp and keep the top copy.
The bank will stamp and give the second and third copies to the parent.
A parent who has made a direct deposit may send the second copy (via the child) to
the school, and keep the third copy as proof of payment. (Deposit slips are ‘source
documents’ that prove that the money has been deposited into the school’s account
at the bank.)
The officer responsible for the keeping of the cash books shall implement a
register wherein all details of these direct deposits are recorded. The proof copies
of the deposit slips must be maintained and recorded in the register in date order.
The finance officer must identify these direct deposits in the bank statement on a
monthly basis. The proof copy of the deposit slips recorded in the register must be
reconciled with the direct deposits appearing in the bank statement. The total
amount received through the direct deposits, which is recorded in the register on a
daily basis, must be brought into account in the Receipts Cash Book by issuing a
School Fund receipt in the name of the principal in his/her official capacity. Any
other direct deposits not accounted for in the register must be identified and an
entry must be made in the Receipts Cash Book as an adjustment, as well as in the
register. This procedure must be done prior to the bank reconciliation statement
being prepared.
This rule is stated in the Departmental Instructions, Section 6.2.2.
Look again at the Receipts Cash Book. On 17 June, a direct deposit has been
recorded. Notice the following:
The receipt is made out to ‘D Jones, Principal’ The receipt No. is 023.
R50.00 was deposited for School Fees. There is a line under the amount in
the CONTROL column. The amount is then repeated in the School Fees
column and the Bank column. This shows that it was a direct deposit. It will
not be included in the next Bank deposit.
21
Section 2: Accounting Records
Here is a useful table, to show an example of how the receipts process
could work.
PARENTS PAY
Day 1:
Parent A pays R15
Parent B pays R15
RECEIPTS ISSUED
Educator issues receipt
1 for R15
Educator issues receipt
2 for R15
PROCEDURE IN SCHOOL
1. Educator gives R30 to
Finance Officer
2. Finance Officer writes receipt A
for R30 using Educator’s name
Educator records both
Learners’ fees in School
Fee Register
Day 2:
Parent C pays R15
Educator issues receipt
3 for R15
Parent D pays R15
Educator issues receipt
4 for R15
Parent E sends
Deposit Slip for R15
Educator gives no receipt
for Deposit Slip
Educator records all three
Learners’ fees in School
Fee Register
Now complete exercise 2.1b and 2.1c.
22
1. Educator gives R30 + Deposit
Slip to Finance Officer
2. Finance Officer writes two
receipts:
(i) Receipt B in Educator’s
name for R30
(ii) Receipt C in Principal’s
name for R15
Section 2: Accounting Records
AMANDLA SECONDARY SCHOOL
Exercise 2.1b:
Writing receipts
Date _________ 20____
Received from
________________________________________________
The sum of _________________________________Rands
and ________________________________________cents
For _____________________________________________
R
As the finance officer of the
school, it is your job to prepare
receipts for money received in the
office. Use the four blank receipt
forms on the right.
Note: All money received was in
cash, unless another form of
payment is stated.
Amounts received were as follows:
Feb 8
Mr Chauke, an educator, handed in
R78,00 for his class’s school fees.
12301
:
CHEQUE
CASH
with thanks
AMANDLA SECONDARY SCHOOL
12302
Date _________ 20____
Received from
________________________________________________
The sum of _________________________________Rands
and ________________________________________cents
For _____________________________________________
R
:
CHEQUE
CASH
with thanks
Feb 8
Coca Cola Company has sent us a
cheque for R200.00 as a donation
towards our fund-raising concert.
Feb 9
The tuckshop manager, Ms Moloi,
handed over R150.00 for sales
that day.
AMANDLA SECONDARY SCHOOL
Date _________ 20____
Received from
________________________________________________
The sum of _________________________________Rands
and ________________________________________cents
For _____________________________________________
R
:
Answers are given at the back
of this manual
CHEQUE
CASH
Feb 9
Mrs Sapi, an educator, handed in
R45.00 for school fees collected
from her class.
12303
with thanks
AMANDLA SECONDARY SCHOOL
12304
Date _________ 20____
Received from
________________________________________________
The sum of _________________________________Rands
and ________________________________________cents
For _____________________________________________
R
:
CHEQUE
CASH
with thanks
23
MONTH DAY DETAILS
YY-MM
DD
MONTH: .............................
RECEIPT CONTROL
TOTAL
NO.
R
c
DONATIONS TUCKSHOP
SCHOOL
FEES
R
INTEREST
SUNDRIES
PSNP
c
R
You are now going to record the four receipts in
the Receipts Cash Book.
Note these important rules:
1. Write on the first open line. Do not leave a line open.
This would leave room for fraud
2. If you make a mistake, rule a line across the mistake line.
Re-write the whole line. In accounting, we never use
correcting fluids. This could also lead to fraud.
c
R
c
R
c
SUNDRIES
BANK
DETAILS
RECEIVED
Exercise 2.1c: Recording receipts in the
cash receipts book
Section 2: Accounting Records
YEAR: .............................
R
c
R
c
R
c
Start by filling in the month and year.
Then record the first two receipts and show the deposit
in the bank for 8 February.
Record the second two receipts and show the deposit in
the bank for 9 February.
After you have recorded the four receipts, record the
following direct deposit:
On 10 February, Jabu Mabundla, a learner, brought a
deposit slip from his parents to show that fees have been
paid, R15.00 Receipt no 12305 (Note: The name of the
principal is ‘D Jones’.)
Check your page against that at the back of the manual.
24
RECEIPTS CASH BOOK
Section 2: Accounting Records
2.1.2 How do we fill in deposit slips?
Here are two deposit slips, showing that we deposited the money that was received.
(in Exercise 2.1b)
ABC BANK
Account Deposit/Rekening-deposito
The first deposit slip shows the money
that was received on 8 February.
Subject to conditions printed overleaf
Onderworpe aan voorwaardes op keersy gedruk
Date
8 Feb 2001
Datum ______________
Account Name
Amandla Sec. School
Rekening Naam ___________________________________
Cash
Branch
Howick
Tak _____________________________________________
Rec no. 12301 R78.00
Branch No.
Tak-nr.
Cheque Rec no. 12302 R200.00
Account No.
Rekening-nr.
1 2 3
4 5 6
7 8 9
Reference No.
Verwysings-nr.
ABC BANK
Account Deposit/Rekening-deposito
Subject to conditions printed overleaf
Onderworpe aan voorwaardes op keersy gedruk
Date
9 Feb 2001
Datum ______________
Account Name
Amandla Sec. School
Rekening Naam ___________________________________
Branch
Howick
Tak _____________________________________________
Branch No.
Tak-nr.
Type of Account
X
Tipe Rekening
Cheque
Tjek
N.B.: List money/postal
orders individually under
cheques.
L.W.: Geld/posorders
moet afsonderlik onder
tjeks aangedui word.
Savings
Spaar
Time deposit
Termyn deposito
70
Notes
Note
Coins
Munt
Sub Total
Sub-Totaal
Cheques/Tjeks
Loan
Lenings
8
00
00
78
00
200
00
Drawer’s Name/Trekker se Naam
1.
Coca Cola
2.
3.
Account No.
Rekening-nr.
1 2 3
4 5 6
7 8 9
4.
5.
Reference No.
Verwysings-nr.
Type of Account
X
Tipe Rekening
6.
Cheque
Tjek
N.B.: List money/postal
orders individually under
cheques.
L.W.: Geld/posorders
moet afsonderlik onder
tjeks aangedui word.
Cheques/Tjeks
Savings
Spaar
Loan
Lenings
Time deposit
Termyn deposito
7.
8.
190
Notes
Note
Coins
Munt
Sub Total
Sub-Totaal
5
00
00
195
00
Drawer’s Name/Trekker se Naam
Paid in by:
Inbetaal deur:
J. Twala
Total
Totaal
R
00
278
Signature
Handtekening
For office use only
Slegs vir kantoorgebruik
Item No. 2250 (6/96) PMS
1.
2.
3.
The second deposit slip shows the
money that was received on 9 February
4.
5.
6.
7.
8.
Paid in by:
Inbetaal deur:
J. Twala
Signature
Handtekening
Total
Totaal
R
195
00
Cash
Rec no. 12303 R150.00
Cash
Rec no. 12304 R45.00
For office use only
Slegs vir kantoorgebruik
Item No. 2250 (6/96) PMS
25
Section 2: Accounting Records
2.2 What is the Payments Cash Book?
The Payments Cash Book is the book where you will record all payments that are
made by cheque.
Detailed instructions for making cheque payments are given in
the Departmental Instructions, Section 6.19.
2.2.1 What supporting documents are required?
Before writing a cheque, the finance officer must ensure that s/he has the
following:
1.
An authorisation docket (also called ‘Payments Advice’ or ‘Cheque
Requisition’). This form must be signed by the principal.
2. An invoice giving full details of the purchase.
3. A signature on the invoice to indicate that the goods were actually
delivered (or the service actually received).
Note that if for some reason a supporting document (example, an invoice) is
not available, a certificate for the non-availability of the document must be
completed. An example of a supporting document is the transport claim form
shown on page 28.
An invoice is a document that shows that you owe money because you have bought
goods or you have received a service. Our sample school, Amandla Secondary
School, will issue four cheques to pay the following four invoices which it has
received.
Invoice 1
Buses for the soccer team, R342.00 (from J. Dube Transport)
Invoice 2
New soccer balls, R240.00 (from Hlubi Sports)
Invoice 3
Paper for the photocopier, R150.00 (from Beju Stationers)
Invoice 4
Repairs to the windows of classroom, R80.00 (from J Khoza)
Now complete exercise 2.2a.
26
Section 2: Accounting Records
eg
(NAME OF SCHOOL)
CERTIFICATE FOR THE NON AVAILABILITY OF VOUCHERS
SCHOOL
STAMP
I, _________________________________________________________________
hereby certify that I have actual knowledge of the services or supplies rendered to the
school and thus acknowledge that the goods supplied/services rendered were in fact
required for school educational purposes, were correct and in good condition; that the
goods have been entered in the records; that the rates were fair and reasonable; and
that the supplier is entitled to payment.
___________________________
SIGNATURE OF OFFICER
___________________________
DATE
___________________________
DESIGNATION
APPROVED/NOT APPROVED
REMARKS:
___________________________
SIGNATURE OF PRINCIPAL
___________________________
DATE
27
Section 2: Accounting Records
eg
(NAME OF SCHOOL)
CLAIM FOR TRANSPORT
NAME: ___________________________
CHEQUE NO: ________________
PERSAL/REFERENCE NO.: _________
AMOUNT :
________________
REASONS FOR UNDERTAKING JOURNEY: _____________________________
__________________________________________________________________
__________________________________________________________________
DATE
POINT TO POINT
DESCRIPTIONS
NO. OF
KILOMETERS
ODOMETER READING
BEGINNING
END
TOTAL NO. OF KILOMETERS
R
MAKE OF VEHICLE : _______________
ENGINE CAPACITY: ___________
_________________________________
SIGNATURE OF CLAIMANT
_________________
DATE
APPROVED BY:
AUTHORISED BY:
NAME: ______________________
NAME: ______________________
RANK: ______________________
RANK: ______________________
SIGNATURE: _________________
SIGNATURE: _________________
DATE: _______________________
DATE: _______________________
28
Section 2: Accounting Records
Exercise 2.2a: The invoice
Read this invoice carefully and answer the questions.
TAX INVOICE
NO. 2314
FROM:
J Dube Transport
Box 345, Pietermaritzburg
TO:
Amandla Sec. School
QUANTITY
1
DATE:
6 June 2001
PRICE
DESCRIPTION
300.00
Supply 80 seater bus: Return trip to Estcourt
Sub-total
Terms
30 days
VAT @ 14%
TOTAL
Received in good condition
300.00
42.00
342.00
J. Gwala (Principal)
Signature of recipient ______________________
Signature of supplier _______________________
1. Every invoice has a number. What is the number on this invoice?
2. Who sent the invoice to us?
3. On what date was the invoice issued?
4. What goods or services were provided to our school?
5. How much money do we owe to the service provider?
6. Who signed the invoice (to show that these goods or services were actually
provided)?
Check your answers against those at the back of the manual.
29
Section 2: Accounting Records
2.2.2 How do we prepare the cheques?
The principal needs to approve payment. S/he does this by signing the Payment
Advice, and checking the invoices to see that these services or goods have been
received by the school. After that, you can prepare the cheques. You already know
that each cheque should be signed by two signatories.
Here is the cheque to pay Dube Transport. As you know, the cheque will be torn out
and sent to the service provider. The ‘cheque counterfoil’ will stay in the cheque
book, and be saved as one of the ‘source documents’. One day it may help to remind
you that you have actually made the payment. Remember to ask for a receipt to
prove that you really did pay this money.
eg
Date: 2001 June 28
Dube transport
To: ___________
of bus
For: Hire
__________
______________
Amount:
R342-00
______________
ABC BANK
ble
22-07-25-44
a
nly
fer ee O
s
Yeoviller aBranch
n ay
P
tT
No ount
c
Ac
Date: 2001 June 28
Dube Transport
PAY _____________________________________or
bearer
Three hundred and forty-two rand only
THE SUM OF _____________________________________
R342-00
_________________________________________________
under three hundred and fifty rands
Cheque no. 64032
No. 64032
220725
90000405043 02
Now complete exercise 2.2b
Exercise 2.2b: Writing a cheque
Use the blank cheque below to pay R240 to Hlubi Sports for soccer
balls. Date the cheque today. Assume that you are one of the signatories, and
you will have to ask your neighbour (as principal) to be the second signatory.
Date:
ABC BANK
To: ___________
Yeoville Branch
For: __________
______________
PAY _____________________________________or bearer
Amount:
______________
22-07-25-44
Date:
THE SUM OF _____________________________________
_________________________________________________
Cheque no. 64032
No. 64032
220725
90000405043 02
Check your example against that at the back of the manual.
30
June
MONTH: .............................
PAYMENTS CASH BOOK
MONTH DAY DETAILS
CHEQUE BANK
YY-MM
NO.
DD
CHARGES
R
01-06 28
Dube Transport
64032
28
Hlubi Sports
28
Beju Stationers
64033
64034
c
STATIONERY CLEANING TRANSPORT TELEPHONE SPORT
& TOILETRY
EXPENSES
& PRINTING
R
c
R
c
Name of payee
Cheque number
c
R
SUNDRIES
BANK
DETAILS
c
R
c
00
R
c
342 00
240 00
200 00
200 00
Many money columns, with a Bank column at the
end. Your school may want to change the headings
of the specialised columns.
For more details about
using the Payments
Cash Book, look at the
Departmental Instructions,
Section 6.17.10.
31
Complete exercises 2.2c to 2.2f.
Section 2: Accounting Records
R
c
SUNDRIES
240 00
Look at the example of a Payments Cash Book above. There
is a main heading (PAYMENTS CASH BOOK) and the month
(June 2001), followed by many columns:
Date (month and day)
R
342
2.2.3 How do we record cheques in the Payments
Cash Book?
YEAR: 2001
.............................
Section 2: Accounting Records
Exercise 2.2c: Recording cheques in the Payments Cash Book
The Payments Cash Book on page 31 shows three cheques. You will see
that it is similar to the Receipts Cash Book, but there is no CONTROL column.
There is a main BANK column on the right-hand side.
Each amount is written in one of the specialised columns, and repeated in the
Bank column.
Fill in the 4th line to show that we paid the following:
On 28 June, we issued cheque no. 64035 to J Khoza, R80.00 for repairs.
Check your entry with that shown at the back of this manual
Exercise 2.2d: Writing cheques
Use the three cheque forms on the next page to pay the following:
1
On 12 July, paid Coca Cola Company for new tuckshop supplies, R202.58.
2
On 13 July, paid Howick Stationers, R108.64 for stationery bought.
3
On 14 July, paid E Dlamini for repairs, R85.00.
Make the cheques as safe as possible, assuming that the payees have bank
accounts. Sign each cheque yourself as finance officer, and ask your neighbour to
sign as principal.
Check your entry with that shown at the back of this manual
32
Section 2: Accounting Records
Date
Datum
To
Aan
For
Vir
(Registered Commercial Bank)
Balance brought
forward
Saldo oorgebring
HOWICK 5061
ABC BANK
Deposits
Inbetaalings
22-07-25-44
Date
Datum
____________________
Pay
Betaal
Total
Totaal
or Bearer
of Toonder
R
This cheque
Hierdie tjek
AMANDLA SECONDARY SCHOOL
Sub total
Subtotaal
P O BOX 361 HOWICK 3290
Withdrawals
Onttrekkings
Balance carried
forward
Saldo oorgedra
369
1803
1803 I: 220725I:
9000405043 02
Date
Datum
To
Aan
For
Vir
(Registered Commercial Bank)
Balance brought
forward
Saldo oorgebring
HOWICK 5061
ABC BANK
Deposits
Inbetaalings
22-07-25-44
Date
Datum
____________________
Pay
Betaal
Total
Totaal
or Bearer
of Toonder
R
This cheque
Hierdie tjek
AMANDLA SECONDARY SCHOOL
Sub total
Subtotaal
P O BOX 361 HOWICK 3290
Withdrawals
Onttrekkings
Balance carried
forward
Saldo oorgedra
369
1804
1804 I: 220725I:
9000405043 02
Date
Datum
To
Aan
For
Vir
(Registered Commercial Bank)
Balance brought
forward
Saldo oorgebring
HOWICK 5061
ABC BANK
Deposits
Inbetaalings
22-07-25-44
Date
Datum
____________________
Pay
Betaal
Total
Totaal
or Bearer
of Toonder
R
This cheque
Hierdie tjek
AMANDLA SECONDARY SCHOOL
Sub total
Subtotaal
P O BOX 361 HOWICK 3290
Withdrawals
Onttrekkings
Balance carried
forward
Saldo oorgedra
369
1805
1805 I: 220725I:
9000405043 02
How do yours compare with those at the back of the manual?
33
PAYMENTS CASH BOOK
MONTH DAY DETAILS
DD
NO.
CHARGES
R
Section 2: Accounting Records
STATIONERY
CHEQUE BANK
c
YEAR: .............................
TRANSPORT EDUCATION
TUCKSHOP
EXPENSES
& PRINTING
R
c
R
c
R
c
SUNDRIES
SPORT
R
c
R
c
R
SUNDRIES
DETAILS
c
Exercise 2.2e:
Recording cheque payments in cash book.
There is no specialised column for ‘Repairs’, so you need to
write the amount in the ‘Sundries’ column.
Record the three cheques payments in the
Payments Cash Book.
Next to the amount, in the Details column, write the word
‘Repairs’.
BANK
R
c
Note:
The third cheque was issued to pay for repairs.
Check your example against that at the back of the
manual.
34
YY-MM
MONTH: .............................
Section 2: Accounting Records
Exercise 2.2f: Recording transactions in the cash book.
Use copies of a Payments Cash Book page and a Receipts Cash Book
page to record the following:
The following transactions took place during the month of March 2001.
Mar 1
Purchased education aids from Educational Science Services, cheque no
345, R95.42.
Mar 5
Received school fees from one of our educators, B Fazel, R125.00.
Gave him receipt no. 88.
Mar 5
Received cash from Mrs Yum, tuckshop manager, R66.50. Gave her
receipt no.89.
Mar 5
Deposited money received today in the bank.
Mar 6
Received a claim from the principal (Mr Mmeti) after he travelled to a
workshop, 50 kms there and 50 kms return, at R1.00 per km. Gave
cheque no. 346.
Mar 8
Paid Hi-Tech Stores for computer repairs, cheque no. 347, R150.00.
Mar 8
Issued receipt no. 90 to Mr Mmeti (the Principal) when we received a
Deposit Slip (direct deposit) for school fees, R15.00.
Mar 8
Paid Simba for tuckshop supplies, R202.40, cheque no. 348.
Mar 8
Received excursion money via one of our educators, W Peters, R310.00.
Issued receipt no. 91.
Mar 8
Deposited money received today in the bank.
Mar 12
Received R35.20 for a raffle held by Grade 5 learners. Issued receipt
no. 92 to B Jabula, the educator in charge.
Mar 12
Paid R77.19 to Eshowe Sports Shop for volleyballs purchased, cheque
no. 349.
Mar 12
Received R100.00 donation from Sappi Papers. Issued receipt no. 93.
Mar 12
Deposited money received today.
Check your answer against the one at the back of this manual.
35
Section 2: Accounting Records
2.3 What is a bank statement?
Each time you issue a cheque and give it to another person, that person will deposit
the cheque into his or her bank account. That person’s bank will claim the money
from your bank. When the cheque is ‘presented’ at your school’s bank, the bank will
check that the cheque is correct in every way. If everything is in order, your bank
will pay the money. They will take the money out of your account, and ‘debit’ your
account. This will decrease your balance in the bank.
Similarly, when you deposit cash or cheques into your account, the bank will ‘credit’
your account - thereby increasing your bank balance.
The bank statement is the bank’s records of your account which they send to you
every month. It will show all the credits and debits in your account during that
month.
Exercise 2.3: The bank statement
A copy of a bank statement that belongs to Amandla Secondary School
appears on the next page. Use the statement to answer the questions below.
1. What is the amount of the opening balance in the bank statement?
2. The letters CR are printed next to the balance. This means that it is a
‘credit’ balance. Is this a favourable balance or an overdraft?
3. On 1 October (10/01), cheque no. 1769 was presented. The amount of the
cheque is R1083.00. Did our balance increase or decrease?
4. Also on 1 October, cheque no. 1773 was presented. What was the amount of
this cheque?
5. On 2 October (10/02), we made a deposit of R720.00. Did this increase or
decrease our balance?
6. After the deposit, the bank charged us a ‘cash deposit fee’. How much did
they charge? Did this increase or decrease our balance?
7. You will notice that all the cheques decrease the balance, and all the deposits
increase the balance. Bank charges also decrease the balance. What was the
closing balance?
8. On 6 October (10/06), a Funds transfer took place. Did this increase or
decrease the balance? Why do you think this money was transferred? (Hint:
Look at cheque no. 1783)
Check your answers with those at the back of the manual.
36
Section 2: Accounting Records
ABC BANK
STATEMENT/TAX INVOICE
P O Box 10
Howick
FIRST CHEQUE
Howick 3290
Tel: 302105
The Treasurer
Amandla Secondary School
P O Box 361
Howick
3290
ACCOUNT NUMBER:
DELIVERY METHOD:
CASH DEP FEE:
900040504
P/15&31 / WV
0.115 PER R100
OPENING BAL AS AT 2001/09/30
PLUS
5 DEPOSITS/CREDITS
LESS
22 CHEQUES/DEBITS
BAL AT END OF 2001/10/15
SERVICE FEE RATE: 055/055/0660
DETAILS OF TRANSACTIONS
# = SUBJECT TO VAT (EXCLUSIVE)
VAT REGISTRATION NO: 4210102051
OPENING BALANCE
CHEQUE
1769
CHEQUE
1773
DEPOSIT
HOWICK
# CASH DEPOSIT FEE
CHEQUE
1777
CHEQUE
1767
CHEQUE
1778
CHEQUE
1770
DEPOSIT
HOWICK
TOA 000253904006124 FT CDS FUNDS TRANSFER
# CASH DEPOSIT FEE
CHEQUE
1779
CHEQUE
1771
CHEQUE
1776
CHEQUE
1780
CHEQUE
1784
DEPOSIT
HOWICK
# CASH DEPOSIT FEE
CHEQUE
1781
CHEQUE
1785
CHEQUE
1783
CHEQUE/DEBIT
1786
CHEQUE
1787
DEPOSIT
HOWICK
# CASH DEPOSIT FEE
CHEQUE
1788
CHEQUE
1789
AMOUNT
1 083.00
113.80
720.00CR
0.92
100.00
350.00
1 171.60
194.03
948.60CR
25 000.00CR
1.15
64.96
538.02
51.35
300.00
142.26
690.00CR
0.80
525.00
612.00
22 230.00
277.15
606.59
3 405.99CR
0.69
75.00
199.17
FEE
6.05
1.10
0.92
0.55
2.20
6.60
1.10
1.15
0.55
3.30
0.55
1.65
1.10
0.50
3.30
3.85
6.60
1.65
3.85
0.69
0.55
1.10
23.689.71 CR
30.764.59 CR
28.637.49 DR
25.816.81 CR
SHEET NO. 208
DATE
BALANCE
10/01
10/01
10/02
10/02
10/02
10/03
10/03
10/04
10/06
10/06
10/06
10/07
10/08
10/08
10/08
10/08
10/09
10/09
10/09
10/09
10/10
10/10
10/10
10/14
10/15
10/15
10/15
23.689.71 CR
22.606.71
22.492.91
23.212.91
23.211.99
23.111.99
22.761.99
21.590.39
21.396.63
22.344.96
47.344.96
47.343.81
47.278.85
46.740.83
46.689.48
46.389.48
46.247.22
46.937.22
46.936.42
46.411.42
45.799.42
23.569.42
23.292.27
22.685.68
26.091.67
26.090.98
26.015.98
25.816.81 CR
37
Section 2: Accounting Records
2.4 How do we do a Bank Reconciliation?
Always check the Bank Statement very carefully. When you compare the Bank
Statement with your Cash Books, there will always be differences. These
differences need to be ‘reconciled’. You must make the Bank Statement agree with
your Cash Books:
1.
If you find information in the Bank Statement that you did not know
about, this information should be updated in your Cash Books.
2.
If there is information in your Cash Books that did not appear in the
Bank Statement, this information will be written in a ‘Bank
Reconciliation Statement’
In the end, the Bank Statement balance should agree with your Cash Book balance.
For detailed instructions on Bank and Cash Book Reconciliation,
look in the Departmental Instructions, Section 6.17.12.
2.4.1 Compare the Bank Statement with the Cash Books
Carefully compare the Bank Statement with your Cash Books. Tick the items that
‘agree’ (that is, that appear in both the Bank Statement and in one of the Cash Books).
After you have made the comparison, you will find some items that are not ticked.
These unticked items are the reasons for the different balances in the Bank
Statement and in your Cash Books.
Here is a list of the differences you are likely to find.
Reasons for differences
After you have compared a Bank Statement with your Cash Books, you will find
some differences. Here are some possible reasons for the differences:
1.
Deposits outstanding. Every day’s cash receipts are deposited into the bank,
normally on the same day or early the next day. It is possible that the deposit
from the last day of the month is not yet recorded in the Bank Statement.
2. Cheques not yet presented for payment. As you know, cheques are valid
for six months. So it often happens that a cheque is not presented to the
bank for payment within the month in which is drawn.
3. Dishonoured cheques. All cheques received by the school are deposited in
the bank and you assume that your bank balance is increased. However if
one of those cheques is dishonoured you need to show this in your Cash
Books. The way to cancel a dishonoured cheque is to make the ‘opposite
entry’. When you received the cheque, it was recorded in the Receipts Cash
Book. To cancel a dishonoured cheque, you must now record it in the
Payments Cash Book.
38
Section 2: Accounting Records
The entry will look like this:
July 31 G Smith (Dishonoured cheque) R15.00 (in Sundries column and in
Bank column)
4. Debit orders. Our school may sign a debit order instructing the bank to
pay money from our account, e.g. insurance, or rental on a photocopier.
These payments appear in the Bank Statement but not in the Payments Cash
Book. At the end of the month, we write them in our Payments Cash Book.
5. Direct deposits. If parents have made direct deposits, but have not sent
the Deposit Slip to the school’s office, these deposits will appear in the
Bank Statement but not in the Receipts Cash Book. At the end of the
month, you need to write these deposits in your Receipts Cash Book.
6. Interest received. If we have negotiated a good arrangement with the
bank, they will pay us interest if we have a large favourable bank balance.
This interest amount will appear in the Bank Statement but not in your
Receipts Cash Book. At the end of the month you need to write the amount
in your Receipts Cash Book.
7. Errors (Mistakes). It is possible that you could have made a mistake in
writing down the amount - or the bank could have made a mistake. You need
to check very carefully so that you can correct mistakes if necessary.
2.4.2 Balance according to Cash Books
Remember, you are trying to ‘reconcile’ your Cash Books balance with the Bank
Statement balance. So you need to ask this question:
How do you know what the balance is according to our Cash Books?
Follow these steps to calculate the balance according to the Cash Books.
1.
First thing, fill the balance from the previous month. If you had R500.00
left over from the previous month, you write the following in your Receipts
Cash Book:
May 31
Balance brought down
R500.00
(In the Bank column)
2. At the end of each month, rule a line across all the money columns of both
Cash Books.
3. Receipts Cash Book: Find the totals of each specialised money column, as
well as the BANK column. The total of the BANK column should be the
same as all the specialised columns added together (not counting the
opening balance, if there is one). This is a way of checking our work.
4. Payments Cash Book: Find the totals of each specialised money column, as
well as the BANK column. The total of the BANK column should be the
same as all the specialised columns added together.
39
Section 2: Accounting Records
5. Work out-the ‘Balance according to Cash Books’ by comparing the Cash
Book totals. For example:
Total of Receipts Cash Book BANK COLUMN
(This includes the balance brought down from
the previous month)
R1445.00
Total of Payments Cash Book BANK COLUMN
Balance according to Cash Book
R 820.00
R 625.00 (favourable)
6. Step 5 above shows that we have R625.00 available in the bank.
The next two pages show the Cash Books closed at the end of the month
40
June
MONTH: .............................
RECEIPTS CASH BOOK
MONTH DAY DETAILS
RECEIPT CONTROL
YY-MM
NO.
DD
TOTAL
R
01-06 01
Balance brought down
SCHOOL
YEAR: 2001
.............................
DONATIONS TUCKSHOP
FEES
c
500 00
R
INTEREST
SUNDRIES
PSNP
R
c
R
c
500
R
c
R
c
R
c
R
13
M Moosa (Tuckshop)
13
Deposit
15
EN Gumede (Educ.)
019
15
P Zondi
020
100 00
100 00
R Patel CC
021
100 00
50 00
50
00
D Smith
022
180 00
100 00
80
00 Brochure
15
Deposit
17
D Jones (Principal)
018
500 00
BANK
DETAILS
RECEIVED
c
SUNDRIES
c
500 00
00
500 00
00
15
00
Brochure
395 00
023
50 00
50
00
65
00
50
250 00
2.4.3 Receipts Cash Book closed at end of month
The Receipts Cash Book above has been closed at the end
of the month. Notice the following:
2. At the end of the month, a line is drawn across all the
money columns (except the Control column).
41
Then all the specialised money columns are added
together:
R
65.00
1445 00
School fees
R 250.00
Donation
R 500.00
Tuckshop
R 130.00
Sundries
R 945.00
Total
3. Add the Bank column. If you include the opening
balance, the total is R1445.
The difference between R945 and R1445 is R500
(which was the opening balance brought down).
4. A double line is drawn under the totals. (The double
line shows that the calculations have been completed.)
Section 2: Accounting Records
1. On 1 June, a balance was brought down from the
previous month. The balance was R500.00. The amount
is written in the Bank column.
130 00
500 00
00
June
MONTH: .............................
MONTH DAY DETAILS
YY-MM
DD
CHEQUE BANK
NO.
CHARGES
R
Dube Transport
64032
28
Hlubi Sports
28
Beju Stationers
64033
64034
28
J Khoza
64035
01-06 28
c
STATIONERY CLEANING TRANSPORT TELEPHONE SPORT
& TOILETRY
EXPENSES
& PRINTING
R
c
R
c
R
c
342
R
c
R
SUNDRIES
SUNDRIES
c
R
c
R
00
The Payments Cash Book above has been closed at the end
of the month.
Notice the following:
1. There is a single line drawn across all the specialised
columns.
2. The totals for all the specialised money columns have
been filled in:
R 200.00 Stationery & Printing
R 342.00 Transport
R 240.00 Sport Expenses
R 80.00 Sundries
R 862.00 Total
c
342 00
240 00
200 00
200 00
Payments Cash Book closed at end of month
BANK
DETAILS
240 00
200 00
Section 2: Accounting Records
2001
YEAR: .............................
342
00
240 00
80
00
80
00
Repairs
80
00
862 00
3. The total of the specialised columns is the same as the
total of the bank column.
Balance according to Cash Books
Once you have closed the two Cash Books, you can
calculate the balance according to the Cash Books:
Total of Receipts Cash Book: R1445.00
Total of Payments Cash Book: R 862.00
Balance acc. to Cash Books:
R 583.00
42
PAYMENTS CASH BOOK
Section 2: Accounting Records
Bank Reconciliation Statement
After you have checked the Bank Statement for new information, and after you
have compared the Bank Statement with your Cash Books you are ready to draw up
a Bank Reconciliation Statement.
Each month, write this Statement at the bottom of the Payments Cash Book. It
should look like this:
eg
BANK RECONCILIATION STATEMENT OF J GWALA PRIMARY SCHOOL AS
AT (date: end of month)
Receipts Cash Book (total of bank column)
(including opening balance)
R
Less: Payments Cash Book (total of bank column)
R
Balance as per Cash Book
R
Balance as per Bank Statement (No. X, dated xxx)
R
Add Deposits not yet credited to our account
R
R
Less: Outstanding cheques:
Cheque no. A
Amount R
Cheque no. B
Amount R
Cheque no. C
Amount R
Balance as per Reconciled Bank Statement
Total
R
R
The Cash Book balance should be the same as the Reconciled Bank Statement
balance.
43
Section 2: Accounting Records
Summary of steps to do bank reconciliation
Step 1:
During the month, record all receipts in the
Receipts Cash Book. Also, record all cheque
payments in the Payments Cash Book.
Step 2:
At the end of the month, compare the Bank Statement with the
two Cash Books. Tick the items that agree.
Compare the ‘credits’ in the Bank Statement with the deposits in the
Receipts Cash Book.
Compare the ‘debits’ in the Bank Statement with the
cheques in the Payments Cash Book.
Step 3:
The Bank Statement may have information that we didn’t know
about e.g. bank charges, dishonoured cheques, stop orders, direct
deposits.
This information must be recorded in the Cash Books. Then
close the Cash Books and fill in totals.
Step 4:
The Cash Books will show information that we know about, but the
bank doesn’t know about, e.g. deposits not yet credited, or cheques not
yet presented.
This information must be recorded in the Bank Reconciliation
Statement. Write this statement in the Payments
Cash Book.
Step 5:
At the end of the process, the balance in the
Cash Books must be ‘reconciled’ with the
closing balance in the Bank Statement.
44
Section 2: Accounting Records
Exercise 2.4: Step by step exercise on Bank Reconciliation
You need a page of a Receipts Cash Book and a page of a Payments
Cash Book for the exercise.
The following transactions took place at Sunset Primary School during the month of
June 2001. Use the information to draw up:
Receipts Cash Book
Payments Cash Book
Bank Reconciliation Statement as at 30 June 2001.
Step 1: Write the Receipts Cash Book for the month
Important: The closing Cash Book balance (in the BANK column) at the end of May
2001 (previous month) was R375.00.
Information was taken from duplicate receipts (Receipts issued by finance officer).
Remember: All money received must be banked on the same day.
On 5 June receipt no 103 for R250.00 was issued to Mr NP Nkosi for sale of school
uniforms to children in his class.
Mr D Naidu, the educator in charge of the tuckshop, paid R350.00 on 6 June 2001
for tuckshop sales and receipt no. 104 was issued to him.
Receipt no 105 dated 10 June 2001 was issued to Miss P Heartstone, an educator,
who paid in R400.00 collected from learners for school fees.
Also on 10 June 2001, Mr T Zulu (a local business-person) donated R225.00 to the
school. Receipt no. 106 was issued to him.
Receipt no. 107 for R300.50 dated 15 June was issued to Mr D Naidu, the teacher
in charge of the tuckshop, being tuckshop sales.
On 29 June 2001, receipt no. 108 was issued to ABI for an amount of R275.00
being refund of cold drinks returned to ABI by Sunset Primary.
Important note:
Do not close the Receipts Cash Book for the month.
You will be making more entries before closing it.
45
Section 2: Accounting Records
Step 2: Write the Payments Cash Book for the month
Information taken from cheque counterfoils
DATE
CHEQUE PAYEE
NO
REASON
AMOUNT
4/6/2001
52
Simba
Chips purchased for tuckshop
R435.50
8/6/2001
53
Telkom
Telephone account payment
R 90.00
11/6/2001
54
Makro
Office stationery purchased
R275.00
15/6/2001
55
Gestetner
Servicing of photocopying
machine
R125.00
Hire of minibus for volley ball
tournament
R 50.00
Trophies purchased for
sports day
R575.00
19/6/2001
28/6/2001
56
57
M Smith
Steelware
Important note:
Do not close the Payments Cash Book for the month.
You will be making more entries before closing it.
Step 3: Compare the Bank Statement with the two Cash Books
Imagine that you have received a Bank Statement from the Bank at the end of
the month.
You would then compare the Bank Statement with your Cash Books. There will be
some information in the Bank Statement that does not appear in the Cash Books.
There will also be some information in the Cash Books that does not appear in the
Bank Statement
Discrepancies (differences) noted from Bank Statement for June 2001:
Information that appeared in the Bank Statement (but not in your Cash book):
1. You have learned about the following information from the Bank Statement.
Add all the ‘bank charges’ together and write the total in the Payments Cash
Book (because we have already paid this):
46
Section 2: Accounting Records
2.
(a)
service fees
R 7.50
(b)
cash deposit fee
R12.00
(c)
cheque book fee
R15.00
The bank has paid ‘interest received’ by increasing your balance. Write this
amount in the Receipts Cash Book (because you have already received this):
(a)
interest received on a favourable balance, R5.00
Step 4: Finish the Cash Books and write the totals
After you have recorded the above information in the Cash Books, close the Cash
Books.
Reminder: Draw a line under all the money columns.
Write the total for all the columns.
Check that the total of the specialised money
columns is the same as the total of the Bank column
(including the opening balances in the Receipts Cash
Book).
Step 5: Do the Bank Reconciliation Statement
Information that appeared in your Cash Books (but not in the Bank Statement):
1. The deposit made on 29 June 2001 for R275.00 has not yet been credited to
the school’s account.
2. The following cheques have not yet been paid out of your account by the bank:
cheque no. 53 paid to Telkom for R90.00
cheque no. 57 paid to Steelware for R575.00
3. The closing balance on Bank Statement (number 21) as at 30 June is R985.50.
This information needs to be recorded in the Bank Reconciliation Statement. The
next step will help you to do this.
Copy this Bank Reconciliation Statement in the Payments Cash book, filling in the
correct amounts (on the dotted lines…………):
47
Section 2: Accounting Records
BANK RECONCILIATION STATEMENT OF SUNSET PRIMARY SCHOOL AS
AT 30 JUNE 2001
Receipts Cash Book (total of bank column)
Less: Payments Cash Book (total of bank column)
R
R
Balance as per Cash Book
R
Balance as per Bank Statement (No. 21, dated 30 June)
R
Add: Deposits not yet credited to our account
R
R
Less: Outstanding cheques:
Cheque no. 53
Amount R
Cheque no. 57
Amount R
Balance as per Reconciled Bank Statement
Total
R
R
Is the balance from the Cash Books the same as the balance from the Bank
Statement?
Well done! You have completed your first Bank Reconciliation task.
48
RECEIPTS CASH BOOK
MONTH: .............................
MONTH DAY DETAILS
RECEIPT CONTROL
YY-MM
NO.
DD
TOTAL
R
SCHOOL
YEAR: .............................
DONATIONS TUCKSHOP
FEES
c
R
INTEREST
SUNDRIES
PSNP
R
c
R
c
R
c
BANK
DETAILS
RECEIVED
c
SUNDRIES
R
c
R
c
R
c
PAYMENTS CASH BOOK
MONTH: .............................
MONTH DAY DETAILS
CHEQUE BANK
YY-MM
NO.
DD
CHARGES
R
c
YEAR: .............................
STATIONERY CLEANING TRANSPORT TELEPHONE SPORT
& TOILETRY
EXPENSES
& PRINTING
R
c
R
c
R
c
R
c
R
SUNDRIES
SUNDRIES
BANK
DETAILS
c
R
c
R
c
3
BUDGETS
The South African Schools Act says that a governing body must prepare a budget
every year.
The budget is prepared by the Finance Committee of the school governing body,
then presented to the parents at a general meeting. Many of the parents are not
trained in financial matters, so the budget must be a simple and easy-tounderstand document.
When you prepare a budget you are planning for expenses and income for the next
year.
3.1 What is a budget?
The budget is an estimate of the school’s income and expenditure for the following
year. The budget is a plan of expenditure and income activities for next year.
For more details about budgeting, look at the Departmental
Instructions, Section 11.
The main reasons for drawing up budgets are:
To plan expenditure and income for the next year.
To provide a way of allocating expenditure to different activities. The
school has to make choices.
For example, should we buy more books for the library?
or, should we re-paint the classrooms?
or, should we buy new sports equipment?
Once the budget has been agreed upon, the document serves as a control
of spending during the next year.
3.1.1 When do we draw up a budget?
The Finance Committee should start preparing the next year’s budget during the
3rd term of the school year. After the Finance Committee and the whole governing
body have agreed on it, the budget must be presented to the parents at a meeting
early in the 4th term. Remember, for this meeting, parents must be given at least
30 days’ notice.
51
Section 3: Budgets
3.1.2 Who should draw up the budget?
As you know, the governing body has a Finance Committee to take special care of
money matters.
When preparing the budget, it is good to involve all the staff who spend the
school’s money, e.g. school governing body, principal, HoDs (heads of department),
subject department heads, sports coaches, choir staff, learners, etc. The process
of budgeting provides a good opportunity for discussions about school policy, school
activities, and school priorities.
3.2 What is included in the budget?
You need to think of all possible income and expenditure very carefully. You need to
prioritise, that is, decide on which expenses are essential and which are optional.
Below are lists of possible income and expenditure. Of course, your school may be
different. It may have income and expenditure items that are not listed here.
Examples of expected income:
School fees (school fee per learner x number of expected learners)
Expected interest to be earned from bank current account and investments
Expected tuckshop income (if there is a tuckshop)
Expected fund-raising income
Expected state contribution
Expected income from any other sources, e.g. donations
Rent for use of school assets, e.g. school hall
How do we fundraise?
Fund raising is a lot of work. Schools should appoint a special
fundraising committee. Here are some of the ways in which a school
can raise extra funds:
Raffles
Concerts
Fun runs
Civvies days
Fêtes
Cake sales
Fairs
Vegetable plots
Selling vegetables grown by the school
How much money will each event raise? Be realistic. Every effort must be
made to raise the amount budgeted for.
Another way to fundraise is to ask for donations. Here are some questions to
ask yourselves:
Which companies will you approach?
Why should they give money to your school?
Who will actually ask for the donations?
Will you be able to reach the target amount?
52
Section 3: Budgets
Examples of possible expenditure:
When you are drawing up a list of expected expenses for next year, think of the
following examples:
Lights, water, and sanitary expenses
Bank charges
Tuckshop payments (if there is a tuckshop)
Telephone payments
Repairs to and maintenance of equipment and property
Improving school grounds and property
Petty cash
Insurance
School and office equipment to be bought
Sports equipment to be bought
Annual treats
Sports and athletics meetings
Awards day expenses (e.g. buying trophies)
Affiliation fees (sporting, cultural bodies, etc)
Library - books and periodicals
Security bars, doors, services
Cleaning materials and services
Transport
First aid equipment
Rental and leasing of equipment
Postal services
Cultural activities
Incidental (various, also called ‘miscellaneous’) expenses
Catering for functions
Bursaries
53
Section 3: Budgets
3.3 How do we prepare a budget?
Note: In the examples that follow, the State contribution (allocation)
is not included in order to simplify understanding. Schools should,
however, include their expected allocations in their actual budgets.
It is the responsibility of the governing body to ensure that income and
expenditure is carefully controlled so that the school can provide the best possible
education to the learners. You should ask these questions:
Which services are essential at the school?
What are your school’s priorities (when spending limited funds)?
What are the most efficient and economical ways for the school to get the
services it needs?
What are the most economical ways to spend allocated funds?
Continually ask: How are we doing? How can we improve? What do we need
to change?
The governing body must make sure that the school stays within the limits of the
budget. It must make sure that there is no over-spending. And it must make sure
that there is no ‘fruitless spending’, for example, catering too generously for a
function.
The treasurer may design a special Budget Preparation Form, asking every person
responsible for an activity in the school to draw up a budget for that activity for
the next year.
eg
Different activity heads may include the Chairperson of the governing
body, HoDs, Subject Heads responsible for sports, cultural activities, etc.
If necessary, the budget should be supported by a ‘motivation’ explaining items in
the budget, for example, why the amounts are more this year than last year.
eg
This example of a Budget Preparation Form was drawn up by the
soccer coach. Would you agree to all the requests?
Activity
e.g. Soccer
54
Line item (things to be
done for each activity)
Affiliation fees
Soccer tournaments
Soccer equipment
Refreshments at matches
Cost of each item Total cost
R
R2
R
R
150.00
000.00
800.00
400.00
R3 350.00
Section 3: Budgets
The treasurer will check all the Budget Preparation Forms, checking all details,
calculations, sub-totals and totals. The final total of all activities is an estimate of
the total cost to run the school programme for the next year, that is, the annual
expenditure budget. The governing body also needs to evaluate the requests and
decide whether or not they are affordable.
Note these important points about budgeting:
Just because a senior person at the school in charge of an
activity (e.g. head of sports department) has asked for some
items does not mean that s/he will get it! You must all be
realistic.
Don’t forget that it is the parents who will have to pay. You
will need to justify the budget at the parents’ meeting. There
may be some parents who are financial experts, and who
will ask difficult questions. There may be other parents who
refuse to pay for some activities, e.g. they may refuse to pay
for sports-related expenses.
3.4 What is the difference between incremental budgeting
and zero-rated budgeting?
‘Incremental’ means ‘growing’. If your new budget is to be ‘incremental’, you build
next year’s budget on this year’s expenditure and income. You then allow for any
expected changes next year. There may be predictable changes, for example
inflation or increased student numbers.
eg
Incremental example:
In 2001 we spent R3000 on stationery.
In 2002 we expect two changes:
Increase in price of stationery, 10%
Enrolment of pupils will increase by 20%
Stationery budget for 2002
10% inflation on R3000
20% increase in pupils
R3 000
+ 300
+ 600
2002 stationery budget amount R3 900
Zero-rated budgeting is very strict. Each year we ask ‘Is this expense really
necessary?’ Each year, the school governing body and principal re-think each
expense.
eg
Zero-rated example:
This year our total cost of photocopying was R2200. Instead of
assuming that we should increase the expected cost, the principal
may say, ‘Let’s sell the photocopying machine, and buy a duplicator
which would be cheaper.’
55
Section 3: Budgets
It is best to combine the two ways of budgeting. As you prepare for next year,
ask both questions:
Can we avoid or reduce this expense?
If we can’t avoid the expense, in what ways should we expect it to
increase?
3.5 How do you use a Receipts and Payments Statement?
Before you do an exercise on budgeting, let’s look at one of the documents that is
drawn up at the end of each year. The Receipts and Payments Statement is a document
that shows the actual amounts that we received, for example, for school fees,
donations, etc and the actual amounts paid, for example, on stationery, repairs, etc.
Here is an example of a Receipts and Payments Statement. Remember, it is drawn up
at the end of the year, and it shows the actual amounts spent. (The amounts below
are fictitious; they are made up for an imaginary school and do not include the
State’s contribution. Your school’s receipts and payments will be different).
eg
AMANDLA SECONDARY SCHOOL
2000 RECEIPTS AND PAYMENTS STATEMENT
AS AT 31 DECEMBER 2000
ACTUAL RECEIPTS
School fees
Donations
Rent - school house
TOTAL RECEIPTS
27
3
1
31
000
000
200
200
ACTUAL PAYMENTS
56
Photocopying
Media centre
Outings
Travel
Stationery
Sport
Electricity
Furniture and equipment repairs
Repairs and maintenance
Rates
Water
Catering
200
500
000
000
000
000
000
300
100
000
600
2 000
28 700
SURPLUS OF RECEIPTS OVER PAYMENTS
TOTAL
2 500
2
2
2
3
5
3
2
2
3
1
31 200
Although the State’s allocation is not included in this
example, you must include it when you are drawing up the
actual Receipts and Payments Statement for your school.
Section 3: Budgets
This Receipts and Payments Statement shows all the receipts categories first, and it
gives a total of receipts (R31 200). It then lists all the categories of payments, and
gives a total of payments (R28 700). You then find the difference between the two
totals. If the receipts were more than the payments, you have a ‘surplus’ (in this
example, R2 500). If the payments were more than the income, you have a ‘deficit’.
3.6 How can the previous year ’s receipts and payments
statement help us to budget?
You can draw up a budget for the next year, using the end of the year’s actual receipts
and payments to guide you. In this example, some of the receipts and payments
categories have been increased by 10% (incremental budgeting), and some are the same.
If your income is limited you have to find ways to keep payments to a minimum.
Here are examples of school budgets.
eg
AMANDLA SECONDARY SCHOOL
2001 BUDGET
DRAWN UP IN OCTOBER 2000
ACTUAL RECEIPTS
29 700
School fees
1 300
Donations
1 200
Rent - school house
32 200
TOTAL RECEIPTS
ACTUAL PAYMENTS
3 420
Photocopying
2 280
Media centre
3 200
Outings
3 000
Travel
3 000
Stationery
3 000
Sport
2 000
Electricity
2 000
Furniture and equipment repairs
3 000
Repairs and maintenance
1 000
Rates
800
Water
2 500
Catering
3 000
Unexpected expenses
TOTAL PAYMENTS
32 200
57
Section 3: Budgets
Example 2
In this example the expected receipts are shown on the left side, and the
expected payments on the right. You can choose the layout that suits you
best. Note that the State’s allocation is not shown in this budget.
eg
JABU GWALA SCHOOL BUDGET: ESTIMATES OF INCOME AND
EXPENDITURE FOR 2001
EXPECTED RECEIPTS AMOUNT
PLANNED PAYMENTS
AMOUNT
School fees
(500 learners at
R50 per year)
R25 000
Tuckshop purchases
R 7 000
Donations (Pick & Pay) R 5 000
Uniform purchases
R 2 500
Tuckshop income
R10 000
Library books
R 2 500
FUNDRAISING:
Transport
R 1 000
Fun run
R 4 000
Office stationery
R
500
Concert
R 3 500
Consumables
(Tea, coffee, etc)
R 2 500
Cake sales
R
500
Postal services
R
500
Civvies Day
R 1 000
Bank charges
R
500
Tournaments
R 4 000
Sports equipment
R 4 000
Photocopies
(Our machine used by
other schools)
R 2 500
Awards day (trophies, etc) R 2 000
Income from Investments R 1 500
First aid
R
500
Sale of uniforms
R 4 000
Cultural activities
R 2 000
Affiliation fees (sport)
R
500
Sports & athletics meetings R 3 500
Rental of equipment
R 4 000
Cleaning services
R12 000
Audit fees
R 3 500
Incidental expenditure
R 2 000
Security
R10 000
R61 000
58
R61 000
Section 3: Budgets
eg
Example 3: A school with a larger budget
Note that the State’s allocation is not shown in this budget.
BRILLIANCE PRIMARY SCHOOL
BUDGET: ESTIMATES OF INCOME AND EXPENDITURE
2000 FINANCIAL YEAR (ZERO BASED)
EXPECTED INCOME
PLANNED EXPENDITURE
School fees (Mainstream)(Note 1)
(600 learners @ R120 per learner)
School fees (Pre-primary additional)
(35 learners @ R560 per learner)
Interest
Tuckshop sales (20% mark-up)
Income from assets: use of hall
Swimming pool/classrooms
Fundraising:
Various activities
Fun run
Concerts/shows etc
Civvies Day (twice per annum)
R72 000-00
R19 600-00
R 1 000-00
R36 000-00
R20 000-00
R1
R7
R2
R1
R11 500-00
300-00
000-00
000-00
200-00
Photocopier meter charges
Learners annual treat
Bank charges
Swimming gala
Annual athletic meeting
Springhills sports affiliation
Sporting equipment
Office stationery & printing
R
R
R
R
R
R
R
R
Telephone & Facsimile
R 5 000-00
Textbooks/Library books
Postal service
Swimming pool expenses
Repairs to building
Maintenance of swimming pool
Backup alarm system
(Total Highway)
Transport:
Sports
Incidental
Improvement of grounds
Arbor day
Awards function
Pre-school salary (educator)
LRC study aids
Tuckshop purchases
Petty cash
Security services
Cleaning services/materials
Audit fees
Miscellaneous expenditure
R
R
R
R
R
R160 100-00
1 000-00
4 000-00
700-00
3 000-00
5 000-00
1 000-00
3 000-00
2 000-00
7 500-00
700-00
2 500-00
5 000-00
3 000-00
R 4 000-00
R 2 000-00
R 2 000-00
R 2 000-00
R 5 000-00
R19 600-00
R 3 000-00
R30 000-00
R
500-00
R19 000-00
R25 000-00
R 2 600-00
R 2 000-00
R160 100-00
Approved at a meeting of Parents held on ________________________.
_____________________________
SIGNATURE: CHAIRPERSON
_______________________________
SIGNATURE:TREASURER
DATE: _______________________
DATE: __________________________
NOTE 1
Total Planned Expenditure
Less: Expected income derived from
other sources excluding
mainstream school fees
Shortfall to be divided per learner to
ascertain mainstream school fees
:
R160 100-00
:
88 100-00
:
R72 000-00
R72 000 divided by 600 learners
= R120 per learner
59
Section 3: Budgets
3.7 How do we determine school fees?
The S.A. Schools Act says that school fees at a public school must be approved by
the majority of parents attending a meeting specifically held to discuss the school
budget and fees. This meeting is held in the 4th quarter of each year. The process
is as follows:
The governing body should prepare a budget.
The printed budget should be sent to parents before the general meeting.
The budget must be presented to parents at a general meeting.
30 days’ notice must be given for this meeting.
There should be discussion. The treasurer will answer most of the
questions assisted by other members of the finance committee and
governing body.
If they wish, parents can suggest changes.
The criteria for total, partial or conditional exemptions from the payment
must be discussed.
Then there must be a formal resolution on the amount of school fees, and
voting on the budget.
The budget must be approved by majority vote at the meeting.
Parents must then be informed in writing of the amount of school fees to
be charged. This information should reach the parents before the
beginning of the new year.
For further information on School
Fees, refer to the Departmental
Instructions, Section 5.
SASA Sect. 38 & 39
KZN Notice no. 47/98, Reg. 4.
60
Section 3: Budgets
Exercise 3.7: Calculating school fees
Imagine that you are the treasurer of the governing body of
BRIGHTKID PRIMARY SCHOOL. Work with your partner to calculate the
amount of school fees to be charged per learner during 2002. The governing
body wants the figure to be as realistic as possible so that it will be easy to
explain to the parents at the general meeting.
The following information is available:
1. During 2001, 400 learners attended the school. It is expected that the
number of learners attending the school will increase by 20% during 2002.
Thus means that there may be 480 learners.
2. Look at expenditure during 2001. The governing body calculates that the
total expenditure during 2002 will be as follows:
Stationery
2 000.00
Annual treat
2 200.00
Postage
250.00
Photocopying charges
1 500.00
Bank charges
420.00
Telephone
1 440.00
Transport
1 550.00
Awards ceremony
1 500.00
Petty cash float
560.00
Annual athletic meeting
3 000.00
Library books
1 700.00
Total expenditure
R16 120.00
3. The governing body expects to receive the following income next year.
This is a list of expected income - excluding school fees:
Interest on favourable balance in bank
R 300.00
Donations
R1 500.00
Fundraising (various activities)
R2 620.00
Total income
R4 420.00
(Note that the State’s allocation is not shown above)
4. During this year, 2001, the parents of 10 learners (that is, 2.5% of the
total learner population) were unable to afford the school fees. We
accepted their reasons as valid and acceptable.
Calculate the school fees:
How much would you charge?
Compare your answer with the one at the back of this manual.
61
Section 3: Budgets
3.8 How do we monitor the budget?
During the year, the school governing body needs to monitor the budget. This
means that you will need to check that expenditure and income stay more or less in
line with the budget.
A good way to ensure that this happens is for the treasurer to prepare a Budget
Control Statement for each meeting of the governing body. This way the budget is
monitored, reviewed and discussed at each meeting.
It is important to monitor the budget to ensure that spending is controlled. It is
also very important to ensure that the ‘cash flow’ is good, that is, that there are
sufficient funds at the times when they are needed.
The Budget Control Statement will help you to see if any items are being overspent
or if any items need to be re-allocated (that is, savings on one item may be moved
to another item).
eg
The next page shows a Budget Control Statement drawn up on 30 June
2001. The first two columns help you to compare anticipated expenses
with actual expenses thus far.
Exercise 3.8a: Monitoring the budget (for discussion)
Imagine that your group is the governing body of the school. This
Budget Control Statement has been presented at a meeting. At this point (halfway through the year), we should have spent about half of the money and
collected at least half.
Examine the Statement. Use the third column to indicate whether income and
expenditure at this point in the year are more than anticipated (mark with +) or
less than anticipated (mark with -). Think of possible reasons for the
differences (also called ‘variances’).
Compare your answers with those at the back of the manual
62
Section 3: Budgets
How are we doing?
AMANDLA SECONDARY SCHOOL
BUDGET CONTROL STATEMENT
As at 30 June 2001
2001 Total
2001 Income
Anticipated
to date
Income
(6 monhs)
School fees
Donations
Rent received (school house)
TOTAL INCOME
Photocopying
Media centre
Outings
Travel
Stationery
Sport
Electricity
Furniture and equipment repairs
Repairs and maintenance
Rates
Water
Catering
Incidental/miscellaneous
TOTAL EXPENDITURE
26 000
1 500
1 200
R28 700
Anticipated
Expenses
1 850
3 600
1 400
4 000
2 800
2 800
1 750
2 000
3 500
1 000
500
1 800
1 700
28 700
Differences
(Variances)
(Reasons?)
20 000
1 500
800
R22 300
Actual
Expenses
(6 months)
1 500
1 200
400
3 200
2 200
1 800
800
1 800
1 500
500
400
900
500
16 700
(Note that the State’s allocation is not shown above.)
63
Section 3: Budgets
Exercise 3.8b: Assessing a budget
Here is the budget from Silly Secondary School. There are a number
of problems with this budget.
Discuss them, and then compare your answers with those at the back of the
manual.
SILLY SECONDARY SCHOOL
BUDGET: ESTIMATES OF INCOME AND EXPENDITURE
FOR 2001 FINANCIAL YEAR
INCOME
School fees
EXPENDITURE
150 000
Tuckshop profit
8 000
Donations
2 000
Fund raising:
Fun walk R5 000
Debs ball R18 000
School fete R13 500
Civvies day (twice)
36 500
1 500
198 000
Lights and water
Locum & additional educators
School clerk
Cleaning staff
Security guard
Repairs & maintenance
Awards function
Bank charges
Sanitary exps. (toilet rolls, etc)
Duplicating paper
Office stationery
School functions (sports, etc)
Telkom (telephone and fax)
Insurance
Consumables (tea, coffee, etc)
Postage
65
50
30
50
24
40
4
2
7
20
2
10
7
5
5
2
000
000
000
000
000
000
000
000
000
000
000
000
500
000
000
000
Legal fees
6 000
Alarm monitoring
1 000
Auditor’s fees
2 500
Sports affiliation
1 000
Transport (sports, etc)
3 000
337 000
(Note that the State’s allocation has not been shown above but must be included
when you draw up your school’s budget.)
64
Section 3: Budgets
3.9 What are budget projections?
The best way to monitor the expenses of a school is to draw up a projection for the
whole year. When doing a projection you spread out the expenses over the 12
months of the year, showing when you actually expect to spend each category of
money, e.g. tuckshop, uniform, library books, etc.
Doing a projection will help you to answer very important questions as the year
proceeds. It will also help you to make some important decisions.
Exercise 3.9: Budget projections
This projection is based on the Budget example 2 (Jabu Gwala School) in
Section 3.6. From the budget, you can see that we are assuming that the total
income for the year is R61 000. This projection shows how the funds are spread
over 19 categories, and how spending will be spread over the coming 12 months.
(For this part of the exercise, you will assume that income is certain, you are
now distributing the expenses throughout the year.)
Look at the projection on page 66 and answer the following questions:
1. Why is tuckshop expenditure expected to be lower in January, July and
December?
2. Why is expenditure on uniforms spread out only between January and May?
3. Expenditure on sports is divided into four equal payments. Do you think this
has anything to do with the four terms of the school year?
4. Expenditure for Awards Day is left completely for November. Why?
5. All expenditure on Affiliation Fees takes place in January and February.
Why?
6. There is no expenditure on sports meetings in June and December. Why?
7. Expenditure on rental of equipment is evenly spread over the whole year.
Why?
8. How much money do we pay the cleaner throughout the year? Should the
amount of R1 000 per month allow some money for cleaning materials, e.g.
polish and soap? Should we pay the cleaner less?
9. How much money do we pay the security guard throughout the year? If we
needed to install security bars in the administration offices, where would the
money come from? Would we have to pay the security guard any less?
Compare your answers with those at the back of this manual.
65
PROJECTION FOR JABU GWALA SCHOOL 2001
PROJECTED PAYMENTS
TOTAL
RECEIPTS
Total for
JAN
year
FEB
MAR
APR
MAY
JUN
JUL
1
Tuckshop
7000
350
650
650
650
650
2
Uniforms
2500
500
500
500
500
500
3
Library books
2500
500
400
400
400
400
400
4
Transport
1000
100
100
100
100
100
5
Stationery
500
100
50
50
50
6
Tea, coffee, etc
2500
300
200
200
200
200
200
7
Post
500
100
30
30
30
100
8
Bank charges
500
42
42
42
42
42
42
9
Sports equipment
4000
1000
10 Awards Day
61000
(Based on Budget Example 2)
11
First Aid
12
13
14
15
16
17
18
19
Cultural activities
650
OCT
650
NOV
650
650
TOTALS
400
100
100
100
100
1000
50
50
50
50
50
500
200
200
200
200
200
200
2500
30
30
30
100
20
500
42
42
42
40
40
500
42
4000
1000
2000
2000
500
250
250
200
2000
200
200
200
7000
100
2000
500
DEC
2500
1000
200
200
200
200
200
2000
200
500
250
250
Sports meetings
3500
350
350
350
350
350
Rental of equip
4000
333
333
333
333
333
12000
1000
1000
1000
1000
1000
Cleaning services
400
SEP
2500
1000
500
Affiliation fees
650
AUG
3500
350
350
350
350
350
333
333
333
333
333
333
337
4000
1000
1000
1000
1000
1000
1000
1000
12000
3500
3500
Auidt fees
3500
Incidental exps
2000
166
166
166
166
166
166
166
166
166
166
166
174
2000
Security
10000
833
833
833
833
833
833
833
833
833
833
833
837
10000
Total
61000
5974
5174
4854
5854
4804
4024
4924
3954
3954
4954
6022
6508
61000
4
PETTY CASH
The finance committee should appoint (in writing) the person responsible for
looking after petty cash.
4.1 What is petty cash?
Petty cash is money that is used for payments that are too small to pay by cheque.
This section will cover how to control petty cash using the ‘imprest system’. It will
also teach you how to record all payments and store the petty cash at the end of
each month.
Many offices have had big problems with petty cash. Even though the amounts of
money involved are small, it is important to be very strict about controlling petty
cash.
67
Section 4: Petty Cash
4.2 How do we prove that we have made a payment?
For each payment from petty cash, there should be at least two items:
1) a petty cash voucher.
2) a receipt to prove that the money was paid.
Here is a petty cash voucher to prove that
we spent R4.00 when we bought milk.
And here is the cash
slip received from the
shop.
XYZ BAZAARS
4 December 2000
4 December 2000
4
Milk
00
Milk
4.00
Amt tendered
10.00
Change
6.00
With thanks
Office expenses
4
00
All petty cash vouchers should be kept in a numerical and date order. They should
be kept in a safe place. Each voucher should have stapled to it a receipt or
document that proves that the money was paid.
4.3 What if there is no receipt?
Sometimes you don’t get a receipt when you pay money, for example for taxi fare.
If there is no receipt to prove how you spent the money, you need to use a special
certificate that is signed by the principal. It looks like this:
(school stamp here)
Certificate no. _____________
CERTIFICATE IN SUPPORT OF PETTY CASH PAYMENT
I hereby certify that the following goods/services were paid from school fund petty cash, that no
receipts or other documentary proof are available, and that the expenditure was necessary and
incurred for school fund purposes.
DATE
Signature of Principal
68
TO WHOM PAID
DETAILS OF
SERVICES/GOODS
Date
AMOUNT PAID
Section 4: Petty Cash
4.4 What is the imprest petty cash system?
The imprest system is the most popular way of controlling petty cash.
For detailed information on ways to control Petty Cash, refer to the
Departmental Instructions, Section 6.13.
In the Imprest System, we always start the new month with the same amount, for
example, R100.00. This is known as the ‘imprest amount’. It is also sometimes
called a float. This money is usually kept in a small tin, which is kept locked. The
tin should be kept in a safe place.
The governing body of each school will decide how much it needs for the imprest
amount. It should be enough money to keep the school going for one month in
making small payments, for example, buying stamps and newspapers. The imprest
amount may be any amount.
eg
If you started with R100.00 and you have spent R79.00, you will have
R21.00 left in the tin. You will have vouchers to show how you spent the
R79.00, and receipts.
The amount of money left in the tin, plus the total of vouchers, must equal the
imprest amount.
Imprest amount
Vouchers for money spent
Money left in tin
R100.00
R79.00
R21.00
69
Section 4: Petty Cash
Here are some rules about the imprest system:
At the beginning of the month, write down the amount received as
‘imprest’ on the RECEIPTS side of the Petty Cash Book.
At the end of the month, the finance officer (or whoever writes the
cheques) will write a cheque to replace the money that has been spent.
Once the money has been replaced, you have ‘restored the imprest’ to its
original amount.
Each time the petty cash is restored, you should show the Petty Cash
Book, together with all vouchers and receipts (in the correct order) to
the Finance Committee. The principal must also check the Petty Cash
records at least once a month.
If you make a mistake when writing in the Petty Cash Book, neatly cross
out the wrong entry and write the correct one above it. In accounting, it
is not acceptable to use correcting fluids or agents. You should also sign
next to the correction.
All pages in the Petty Cash Book must be numbered consecutively. The
Finance Committee will check that there are no missing pages.
Be very strict with yourself and other members of staff. Never lend
anyone money from the petty cash tin.
If any money is missing, it should be reported to the Finance Committee.
The money has to be replaced personally by the person in charge of petty
cash.
If the usual petty cashier is away for any reason, the person taking over
should check the Petty Cash Book with the vouchers. Both people should
sign a ‘handing-over certificate’.
Now complete exercise 4.4.
70
July
MONTH: .............................
PETTY CASH BOOK
RECEIPTS
DATE
YY-MM
PAYMENTS
DETAILS (incl. cheque no.)
DD
00-06 30
2000
YEAR: .............................
AMOUNT
R
M Zondo (Principal) Cheq 783
100
DATE
VOUCHER
TO WHOM
DETAILS OF GOODS
AMOUNT
R
c
YY-MM
DD
NO.
PAID
& SERVICES
00
00-07
03
01
Postmaster
Postage stamps
5
c
00
00-07
07
02
Planet Hardware
Doom insecticide
10
30
00-07
10
03
AB Pharmacy
Panado tablets
8
90
00-07
12
04
KZN Stores
Tea, sugar, milk
22 75
00-07
21
05
Proper Stationers
Duplicating paper
17
97
00-07
24
06
AL Copiers
Colour photocopies
10
00
00-07
31
Balance carried down
(Cash in tin)
25 08
100
00
00-08 01
Balance b/d (Cash in tin)
25
08
00-08 02
M Zondo (Principal) Cheq 800
74
92
R100 00
Look at the example, and answer the following questions:
Making payments
The PAYMENTS side of the Petty Cash Book is bigger.
It gives details of every payment made.
Starting the system
The RECEIPTS side of the Petty Cash Book shows the starting
entry.
3. On 3 July, R5.00 was taken out of the Petty Cash tin.
What was it used to pay for?
Exercise 4.4: Petty cash book
1. The governing body at J Gwala School approved an Imprest
amount of money. What was the imprest amount?
4. On 7 July, we bought Doom Insecticide from Planet Hardware.
What was the number of the voucher?
5. On 24 July, we spent R10.00. Why was the money spent? To
whom was it given?
Cheque no. 783 for the imprest amount was drawn in the name of
the principal, Mr M Zondo. The principal cashed the cheque on the
same day, and handed it over to the finance officer.
End of month
6. At the end of the month, how much money was left in the tin?
71
Check your answers with the answers
at the back of this manual.
7. On the first day of the next month, the petty cashier received
a cheque to replace the money spent in the previous month. How
much did s/he receive?
Section 4: Petty Cash
2. On what date was the system started?
PETTY CASH BOOK
MONTH: .............................
RECEIPTS
YY-MM
DETAILS (incl. cheque no.)
DD
PAYMENTS
AMOUNT
R
VOUCHER
DATE
c
YY-MM
DD
NO.
TO WHOM PAID
DETAILS OF GOODS
& SERVICES
AMOUNT
R
c
72
DATE
YEAR: .............................
5
STOCK CONTROL
This section deals only with items purchased from school funds, or donated to the
school. Non-consumable State-owned stock is recorded seperately.
Schools have many different kinds of ‘stock’ (also called ‘stores’). These are various
items of school property, for example, books, equipment, furniture. The school
needs to keep very careful control of all the stock so that it is well cared for, and
nothing goes missing.
The principal will appoint (in writing) one person to be the ‘stock controller’. This
person will keep two types of records:
1. Tally cards (for consumables, like stationery, etc).
2. A stock register (for books, furniture, etc).
The section will show you how to control stock by completing both of these
documents.
For more details, refer to Section 7 of the Departmental
Instructions.
5.1 How do we mark school fund stock?
Every item donated or acquired with school funds and which can be marked should
have the school’s ownership mark, using indelible (non-removable) ink if possible.
eg
The mark could look like this:
SF
PPS/001
In this school mark, the letters stand for
the following:
SF
School Fund
PPS
This represents the name of the school, e.g. ‘Park
Primary School’
001
This is the control number from the Stock Register.
The stock mark shows that the item belongs to the school. If any items are lost or
stolen, they could be traced back as property of the school.
73
Section 5: Stock Control
5.2 What are tally cards?
Each type of consumable stock has its own Tally Card. Consumable stock, like
stationery or toilet rolls, gets used up. The Tally Card is stuck to the shelf in the
Stock Room where the supplies are stored, or it can be kept in a file. It should be
updated every time there is a change. Your school could have more than 100 Tally
Cards, each recording a different item.
eg
For example: A Tally Card for pencils would reflect each occasion on
which new pencils are received and each time pencils are issued. The
balance on hand is continuously updated. See example on page 75.
Now complete exercises 5.2a and 5.2b.
74
NAME OF SCHOOL
TALLY CARD: STOCK CONTROL (CONSUMABLES)
Description: ___________________________________
DATE
STOCK
RECEIVED
STOCK
ISSUED
Balance carried over:
STOCK
BALANCE
DATE
Item No.: _____________________________
STOCK
RECEIVED
STOCK
ISSUED
Balance carried over:
STOCK
BALANCE
DATE
STOCK
RECEIVED
STOCK
ISSUED
STOCK
BALANCE
Balance carried over:
Section 5: Stock Control
75
TALLY CARD: STOCK CONTROL (CONSUMABLES)
DESCRIPTION: ....DUPLICATING PAPER ....
STOCK
RECEIVED
STOCK
ISSUED
(Quantity)
STOCK
ISSUED
(To whom)
STOCK
BALANCE
Balance brought down:
01.05.03
01.05.05
0
STOCK
ISSUED
(Quantity)
STOCK
ISSUED
(To whom)
STOCK
BALANCE
Balance brought down:
60 Reams
60 Reams
1 Ream
R Masondo
59 Reams
Exercise 5.2a: Tally card
Exercise 5.2b: Recording on a tally card
Look at the Tally Card above. There are only two
entries.
Use the same Tally Card to record the
following transactions:
1. On 3 May, we bought reams of duplicating paper.
How many reams did we buy?
1. On 1 August, we issued two reams of paper
to R Maphai.
This amount is repeated in the Stock Balance column.
Section 5: Stock Control
DATE
STOCK
RECEIVED
2. Since purchasing this stock, we have issued some
paper to R Masondo. How many reams did we issue?
3. How many reams are left?
2. On 13 September, we received a donation of 50
reams of paper from Sappi Papers.
3. On 30 October, we issued five reams of paper to L
Ramuselei (to print exam papers)
Check your answers at the back of this manual.
76
DATE
ITEM NO.: 142
Section 5: Stock Control
5.3 What are stock registers?
A stock register is kept for items that are not ‘consumables’ (used up). The stock
register also consists of many sheets. Each type of item of furniture and
equipment, as well as each group of textbooks, has its own sheet in the stock
register. The page has three sections: Receipts, Disposals, and Annual Stocktaking
information. The stock register should include all important information so that you
can keep very close control of all the school’s property. See the example that
follows.
Learn about the stock register by completing exercise 5.3.
77
Exercise 5.3: Stock registers
On 30 July 1997, Fernhill Secondary School purchased 10 Brother computers using school funds. Each computer has 3 parts:
a CPU (Central Processing Unit), a monitor (screen), and a keyboard. Every computer part comes with a serial number. These
serial numbers are mainly for guarantee purposes (usually one year), but they are also helpful if you want to identify the
parts (for the stock register).
We will need three sheets in our stock register for the three parts of each computer.
Read the three pages of Stock Register below. Note that each sheet gives the date, details about serial number, values, disposal
information (when we sell or scrap the item), and annual stocktaking information.
Then answer the questions that follow:
NAME OF SCHOOL: FERNHILL SECONDARY SCHOOL
STOCK REGISTER
Each
Quantity unit: ____________________
RECEIPTS
Date
97-05-14
STOCKTAKING
DISPOSALS
Requisition or Quan- Value
Cheque No.
tity
R
Ex-Stock
97-07-30 Cheque No. 146
B13451001
5
c
7500 00
10
25000 00
174
Folio: ____________________
CPU
Description: ____________________
Source
Date
Authority
No.
97-06-14 BS169/06/97
Quantity
Signature
Stock on
Hand
Date
5
Khumalo
10
97-11-30
Signature of
stocktaking officer
Khumalo
B13451002
B13451003
B13451005
B13451006
B13451007
B13451008
B13451009
B13451010
78
Section 5: Stock Control
B13451004
NAME OF SCHOOL: FERNHILL SECONDARY SCHOOL
STOCK REGISTER
Each
Quantity unit: ____________________
RECEIPTS
Date
97-05-14
STOCKTAKING
DISPOSALS
Requisition or QuanCheque No.
tity
Ex-Stock
97-07-30 Cheque No. 146
Value
R
5
c
2500 00
10
15000 00
Source
175
Folio: ____________________
Monitors
Description: ____________________
Date
Authority
No.
97-06-14 BS169/06/97
Quantity
Signature
Stock on
Hand
Date
5
Khumalo
10
97-11-30
Signature of
stocktaking officer
Khumalo
MP74197
MP74198
MP74199
MP74200
MP74201
MP74202
MP74203
MP74204
MP74205
MP74206
Section 5: Stock Control
79
NAME OF SCHOOL: FERNHILL SECONDARY SCHOOL
STOCK REGISTER
Each
Quantity unit: ____________________
RECEIPTS
DISPOSALS
Requisition or Quan- Value
Authority
Source
Date
Cheque No.
No.
tity
R
c
750 00
5
Ex-Stock
97-06-14 BS169/06/97
97-05-14
10 2000 00
97-07-30 Cheque No. 146
Date
176
Folio: ____________________
Keyboards
Description: ____________________
STOCKTAKING
Quantity
Signature
Stock on
Hand
Date
5
Khumalo
10
97-11-30
Signature of
stocktaking officer
Khumalo
KB8713
KB8714
KB8715
KB8716
KB8717
KB8718
KB8719
KB8720
KB8722
80
Section 5: Stock Control
KB8721
NAME OF SCHOOL
STOCK REGISTER
Quantity unit: ____________________
RECEIPTS
Requisition or
Date Cheque No. Quantity
Description: ____________________
DISPOSALS
Value
R
Source
c
Date
Folio: ____________________
STOCKTAKING
Authority
No.
Quantity
Signature
Stock on
Hand
Date
Signature of
stocktaking officer
Section 5: Stock Control
81
Section 5: Stock Control
Information and questions on the three Stock Register sheets in
Exercise 5.3.
1. The governing body conducted a Board of Survey (See Instruction 7.3) on
the existing five computers. The chairperson approved the Board’s
recommendation on 14 June 1997 to dispose of these items by inviting
tenders, and selling these computers to the best advantage of the school.
Every time that permission is given to dispose of stock, the document is
given an ‘authority number’. What was the number given to dispose of the
old computers?
2. What was the total value of the old computers?
3. The school then bought 10 new computers:
Each CPU costs R2 500
Each monitor costs R1 500
Each keyboard costs R200
The school issued one cheque no. 146 on 30 July 1997. What was the total
amount on the cheque?
4. We had five computers before, and have disposed of them.
Now we have bought ten computers.
The third section of the Stock Register Sheet shows how many computers
we now have. What is the number?
Compare your answers with those at the back of the manual.
82
Section 5: Stock Control
5.4 How should stock be stored and cared for?
The stock controller must take great care when storing the school’s property. If
possible there should be a storeroom, with suitable shelving. If you are storing
books, each book should be numbered, and all the books shelved in numerical order.
On the shelf there should be a copy of the school reference mark for that item of
stock, so that the item(s)can be linked with their tally card or the stock register.
eg
For example, to store reams of duplicating paper the shelf
may be marked ‘C142’. If the stock controller wants to remove
a ream of paper, s/he would go to Tally Card C142, and update
the card to show that there is one less ream in stock.
The stock room should be kept locked, with access only for the stock controller. If
the stock controller is away for any reason, a specially appointed person should be
made responsible for controlling stocks. (See section 5.8). No unauthorised person
should ever be allowed to enter the stock room.
5.5 Who should do the annual stock-take?
Each year you must do a stock-take of all items in the school. The principal should
appoint people to do the stock-take. There should be at least two persons to do
this job, and they should be different from the usual stock controller. Let’s call
the person in charge the ‘stock-taker’ and provide an assistant.
The stock taker and assistant should work as a team with the usual stock controller.
They walk around the school and count every item, check that it is in good condition,
update the tally cards and stock registers, and prepare a report for the governing body.
5.6 What is the purpose of the report to the governing
body?
After the annual stock-take, a report should be made to the governing body. The
stock-taking report should answer the following sorts of questions:
1. What is the general condition of items of stores and equipment, e.g. good, fair, bad?
2. Are there any surpluses? What is the value of these surpluses? Where did
these surpluses come from? Were these items missed in the stock-take last
year? (Of course, any surpluses should immediately be included in the Stock
Register as stock of the school.)
3. Are there any shortages? What is their value? Are there any explanations for
their being missing? For example, were items borrowed by someone (with
official permission)? If so, they should immediately be returned. Or perhaps
items have been stolen. If so, how did the thief/thieves gain access to the
stores? Who is responsible? Was the matter reported to the police? Did you
get a police reference number?
83
Section 5: Stock Control
4. Are there any redundant, obsolete, irreparable, or useless items? Make a
recommendation on ways to dispose of (or to scrap) these items. If possible, the
items should be sold or auctioned. In some cases, richer schools donate older
library books to poorer schools.
5. Can we justify the quantity and condition of stores in terms of the activities of
the department concerned? For example, departments like Physical Education,
Handicraft and Science Labs, use up their consumables and wear out their
equipment. We now need to ask: Have they taken enough care to use them
sparingly, or have they been wasteful?
6. It is possible that any shortages or damage may be the result of negligence on
the part of any particular staff member? If negligence is noted, this should be
included in the report.
If there are any large discrepancies (differences) between the written records and
the actual stores, or where redundant items have been found, the principal should
appoint a Board of Survey.
5.7 What is a Board of Survey?
Every year the principal should establish a Board of Survey. There are three
members of this board:
1. The principal
2. Two senior members of staff
It is their job to enquire about old and problematic items of stock. If any items
are unserviceable (not fixable), damaged or obsolete (too old to fix), they should
be disposed of; that is, either sold or scrapped. This process may go on at the same
time as the annual stock-take.
The Board of Survey should also enquire about any surpluses or shortages of stock
in the school.
When they have completed their inspection, they must draw up a report on their
findings, attach any documentation that supports their case, and forward the
report to the governing body. The chairperson of the governing body will sign the
report as the authorising officer. The unserviceable items of stock can then be
disposed of. These disposals should be recorded in the Stock Register.
If big problems have been discovered, the governing body should establish a Board
of Enquiry.
This process applies to items bought by the School Fund or items donated to the
school. For other items (which are owned by the State), for example, furniture, the
school needs to follow the normal procedure for State property. There are special
rules for this, given by the Department of Education and Culture.
84
Section 5: Stock Control
(NAME OF SCHOOL)
BOARD OF SURVEY
REPORT OF BOARD OF SURVEY CONVENED TO INQUIRE INTO SCHOOL FUND
PROPERTY ON CHARGE AT
(Name of School)
AND CONTROLLED BY
(Name)
(Rank)
1.
Stock of all school fund property under the charge of this officer has been taken on __________
(date) by this board/the following persons:
Name: [1]
[2]
[3]
2.
The Board assembled on __________ (date) at ____________________ (place) to inquire into
surplus, deficient, worn-out, useless, damaged, unserviceable, redundant or obsolete property and to
record such evidence as is necessarily required in support of these proceedings.
3.
The items listed on the schedule and numbered
have been disposed of in our/my presence.
4.
The following signed statements of officials are attached: (Annexures if any)
5.
The Board in its investigations has borne in mind the Departmental instructions and has
ascertained:(a) that the last board of survey dealing with school fund property at this place was held on
__________ (date).
(b) that the recommendations of that board dated __________ have been duly given effect to in
accordance with the Departmental Instructions ____________________ and that the necessary
entries have been made in the records. The articles not then dealt with have now been
disposed of in accordance with the approved recommendations and in the presence of this
board.
Name:
Rank:
Signature:
[1]
[2]
Ref. No. __________
The Chairperson of the Governing Body
[3]
(For use by the Governing Body)
APPROVED/NOT APPROVED
Approval Stamp
______________________________________
CHAIRPERSON: GOVERNING BODY
DATE: _________________________________
Authority No. ____________________________
85
Section 5: Stock Control
CONTINUATION SHEET
SCHEDULE
This Schedule contains items numbered 1 to ________________________
FOLIO
NO.
86
CONSECUTIVE
NO.
ARTICLE
QUANTITY
FINDINGS AND
PRESENT
RESPONSIBLE
ORIGINAL
RECOMMENDATIONS
ESTIMATED
OFFICER’S
COST
OF BOARD
VALUE
EXPLANATIONS
Section 5: Stock Control
5.8 How do we go about the ‘handing over ’ process?
In general, the issue of handing over in schools is very important. A strict process
of handing over ensures that responsibility and accountability are completely clear,
and the school will avoid arguments and denials in the future. If a new principal
takes over a school, all aspects of school management and administration should be
carefully and formally handed over.
Handing over is especially important in stock control. The stock controller may be
away from the school for a period of time, or s/he may for some reason decide to
discontinue doing the job. There needs to be a very clear handing-over time and
process, otherwise there may be disagreements at the end of the year when items
are discovered to be missing. Handing over must be done in the presence of a
witness.
Section 8.2.1 of the Department Instructions gives instructions
for handing over.
The following steps should be taken:
Step 1:
A complete stock-take should be done, so that the new person agrees that the
stock register and the physical stock on hand are the same. Any surpluses or
shortages should be noted.
Step 2:
If necessary, explanations should be given for discrepancies. If no discrepancies
are found, the certificate should indicate ‘nil’ surpluses or deficiencies. In other
words, the records are a perfect reflection of the stock on hand at the point of
taking over.
Step 3:
Both persons (outgoing and incoming) should sign the Handing Over Certificate.
87
Section 5: Stock Control
eg
The Handing Over Certificate should look like this.
HANDING OVER CERTIFICATE
NAME OF SCHOOL
ADDRESS
DATE OF HANDING OVER
In terms of the provisions of School Fund Departmental Instruction 8, we hereby certify that we have
completed the handing over of all School Fund property under the control of the official in charge of
and that, subject to the discrepancies enumerated on this and the following pages, numbered
__________________ the serviceable property on hand is in accordance with the balances of the
stock register, or other records.
We further certify that the list of discrepancies includes all items which have not hitherto been
submitted for authority to adjust.
Signature and designation of officer handing over
SCHOOL
STAMP
Signature and designation of officer taking over
Signature and designation of Witness
Quantities
Article
88
Unit
As per
stock
register or Actually
on hand
other
records
Value exclusive of
worn-out or broken
articles
Surplus
Deficiency
Now complete exercises 5.8a and 5.8b.
Explanation
Section 5: Stock Control
Exercise 5.8a: Handing over
The stock controller of Fernhill Secondary School was transferred to
Topkid Primary School with effect from 1 January 1998. Here is the Handing
Over Certificate. Answer the questions that follow:
HANDING OVER CERTIFICATE
Fernhill Secondary
NAME OF SCHOOL
Tweedie Avenue Howick
ADDRESS
23 January 1998
DATE OF HANDING OVER
In terms of the provisions of School Fund Departmental Instruction 8, we hereby certify that we have
completed the handing over of all School Fund property under the control of the official in charge of
Stock matters
and that, subject to the discrepancies enumerated on this and the following pages, numbered
1
__________________
the serviceable property on hand is in accordance with the balances of the stock
register, or other records.
We further certify that the list of discrepancies includes all items which have not hitherto been
submitted for authority to adjust.
K. Khumalo
Signature and designation of officer handing over
SCHOOL
STAMP
P. Pillay
Signature and designation of officer taking over
A.K. Singh
Signature and designation of Witness
Quantities
Article
Unit
As per
stock
register or
other
records
Actually on
hand
Surplus
Deficiency
Value
exclusive of
worn-out or
broken
articles
Explanation
Monitors
each
I75
10
NIL
NIL
N/A
Handing over
CPU
each
I74
10
NIL
NIL
N/A
Handing over
Keyboards
each
I76
10
NIL
NIL
N/A
Handing over
89
Section 5: Stock Control
Questions:
1. On what date did the hand-over take place?
2. What is the name of the out-going stock controller?
3. What is the name of the officer taking over?
4. Who witnessed the hand-over?
5. Three sets of items were handed over. What were they, and how many of
each were there?
6. Were there any surpluses (that is, present but not in the written records) or
any deficiencies (that is, items in the records but not present at the time of
hand-over)?
Check your answers with those at the back of the manual.
Exercise 5.8b: Board of Survey Report
Let’s take a closer look at a Board of Survey Report. Read the two
documents that follow and then answer the questions:
During the stock-taking period which began on 5 November 1997, the principal of
Fernhill Secondary School, Mrs A K Singh, convened a Board of Survey to
enquire into damaged physical education items.
1. What is the name of the stock controller? (Hint: He is a Senior Education
Administration Clerk.)
2. The Board had three members. What were their names?
3. On what date did they meet?
4. The Report of the Board of Survey was approved by the Chairperson of the
governing body. What is the Chairperson’s name? On what date did he
approve the report?
5. What Authority Number was given to the report?
6. Seven items were reported damaged:
2 cricket bats, value R39.00 each
2 cricket balls, value R27.00 each
1 cricket bail, value R42.00
2 soccer balls, value R49.00 each
6 volley balls, value R27.00 each
3 netballs, value R42.00 each
1 tennis net, value R59.00
What is the present value of these items?
7. What was the recommendation of the Board?
Compare your answers with those at the back of the manual.
90
Section 5: Stock Control
BOARD OF SURVEY
REPORT OF BOARD OF SURVEY CONVENED TO INQUIRE INTO SCHOOL FUND
Fernhill Secondary School
PROPERTY ON CHARGE AT (Name of School)
AND CONTROLLED BY
K. Khumalo
(Name)
(Rank)
Senior Education Administration Clerk
1.
5 November 1997
Stock of all school fund property under the charge of this officer has been taken on __________
(date) by this board/the following persons:
P. Price
A.K. Singh
A. Ntuli
Name: [1]
[2]
[3]
2.
14 November 1997 (date) at ____________________________
Fernhill Secondary School
The Board assembled on _________________
(place)
to inquire into surplus, deficient, worn-out, useless, damaged, unserviceable, redundant or obsolete
property and to record such evidence as is necessarily required in support of these proceedings.
3.
The items listed on the schedule and numbered
1 to 7
have been disposed of in our/my presence.
4.
The following signed statements of officials are attached: (Annexures if any)
Annexure 1: A. Tysons statement
5.
The Board in its investigations has borne in mind the Departmental instructions and has
ascertained:(a) that the last board of survey dealing with school fund property at this place was held on
30 November 1996
___________________________
(date).
3 December 1996
(b) that the recommendations of that board dated _____________________
have been duly given
7.3
effect to in accordance with the Departmental Instructions ____________________
and that the
necessary entries have been made in the records. The articles not then dealt with have now
been disposed of in accordance with the approved recommendations and in the presence of this
board.
Name:
Rank:
Signature:
[1]
A.K. Singh
A. Ntuli
[2]
Prinicpal
XX XX
[3]
Head of Department
XX XX
FSS 3/97
Ref. No. __________
The Chairperson of the Governing Body
P. Prince
Head of Department
XX XX
(For use by the Governing Body)
APPROVED/NOT APPROVED
Approval Stamp
T. Smith
______________________________________
CHAIRPERSON: GOVERNING BODY
1997-12-06
DATE: _________________________________
BS171/12/97
Authority No. ____________________________
91
Section 5: Stock Control
CONTINUATION SHEET
SCHEDULE
7
This Schedule contains items numbered 1 to ________________________
FOLIO
NO.
CONSECUTIVE
NO.
ARTICLE
QUANTITY
FINDINGS AND
PRESENT RESPONSIBLE
ORIGINAL
RECOMMENDATIONS
ESTIMATED
OFFICER’S
COST
OF BOARD
VALUE
EXPLANATIONS
PE 022
1
Cricket Bats
2
R39.00 ea
Nil
PE 023
2
Cricket Balls
2
R27.00 ea
Nil
PE 024
3
Cricket Bails
1
R42.00
Nil
PE 030
4
Volley Balls
6
R27.00 ea
Nil
PE 032
5
Soccer Balls
2
R49.00 ea
Nil
PE 037
6
Netballs
3
R42.00 ea
Nil
PE 041
7
Tennis net
1
R59.00 ea
Nil
92
Refer to
statement
We concur with
the statement of
the responsible
officer and
recommend that
these items be
disposed of at a
municipal dump.
6
REGISTERS
6.1 What is a remittance register?
‘Remittance’
means ‘payment’.
A remittance register is the register of all the money that is
received by the school through the post. This money may arrive in the post as:
Cash (Coins or notes. But obviously it would be a mistake to send cash
through the post!)
Cheques
Postal orders
Money orders
Bank drafts
For more information about the Remittance Register, refer to
Departmental Instructions, Section 6.7.
Usually one person - probably the finance officer - is appointed (in writing) by the
Finance Committee to be responsible for opening the mail, and recording all money
received in the post. It is important to have another person present as well, as a
witness. The witness will verify (help to prove) that all money received was
recorded in the Remittance Register.
6.1.1 How is the Remittance Register checked?
When starting a Remittance Register for the first time, the principal must make
sure that all the pages are numbered consecutively, and that no pages are missing.
The principal should check this Register (and all other financial records) once a
week, making sure that receipts have been issued for all money received, and that
the receipts have been recorded in the Receipts Cash Book. Each time the principal
checks the register; s/he must sign and date the Register to show that it has been
checked.
6.1.2 What is the purpose of the column: ‘Nature of disposal/Receipt no.’?
Look at the example of the Remittance Register on the next page. There are many
columns to be completed. One column is particularly important for auditors: ‘Nature
of disposal/Receipt No.’ The auditors will always check the details in this column.
You need to fill in to whom the money was given, in this column.
eg
Example: If you receive a salary cheque for an educator on your
staff, you will immediately enter the details in the Remittance
Register. When you hand over the cheque to the educator,
make sure that s/he signs in the ‘Nature of disposal/Receipt No.’ column.
This confirms that the educator has actually received the cheque.
Now complete exercises 6.1a and 6.1b.
93
REGISTER OF REMITTANCES RECEIVED THROUGH POST
FROM WHOM RECEIVED
NATURE OF
REMITTANCE
(eg cheque)
NAME
PURPOSE
FOR WHICH
RECEIVED
ADDRESS
SIGNATURE
OF OFFICER
TO WHOM
HANDED
OVER
AMOUNT
R
SIGNATURE
NATURE OF OF OFFICIAL
CHECKING
DISPOSAL
RECEIPT NO. REGISTER
AND DATE
01.01.23
Ord
XN Ndlovu
Box 123, PMB
Cheque
Fees
15
00
J Twala/KP
K Patel
21
01.01.24
Reg
D Xuma
Box 21, PMB
Postal order
Fees
15
00
J Twala/KP
K Patel
22
01.01.25
Ord
T Gwala
Fund-raising
100
00
J Twala/KP
K Patel
01.02.05
Del
Educ Dept
Salary
5000
00
J Twala/KP
K Patel
Box 987, Ldsmth Money order
Box 1A, PMB
Cheque
Exercise 6.1a: Remittance Register
Look at the example of the Remittance Register
above. Read the example and answer the following
questions:
1. On 23 January, we received an ordinarily posted envelope.
Who was it from? What was the amount of the cheque?
Section 6: Registers
c
SIGNATURE
OF OFFICER
OPENING
POST
2. D Xuma sent R15.00 for school fees. What date was this
received? In what form was the money (cheque? postal
order?)
3. What is the name of the person who usually opens the post?
4. What is the name of the person who usually acts as witness?
23
X Smith (Ed)
V Singh,
01.01.26
V Singh,
01.02.09
5. What was the number of the receipt posted to Mr Ndlovu?
6. On 25 January we received a money order for R100.00.
Why did we receive this money? What was the number
of the receipt posted to Mr Gwala?
7. On 5 February, we received a salary cheque for one of
the educators. Who sent the cheque? Who signed to
prove receipt of the cheque?
8. At the end of each week, the principal, Mrs V Singh,
checked the Remittance Register. She signed and dated
it to prove she had checked it. How many times has she
checked the Register so far?
Check your answers at the back of this manual.
94
HOW
RECEIVED
(ORDINARY,
DATE
RECEIVED REGISTERED
or DELIVERED)
REGISTER OF REMITTANCES RECEIVED THROUGH POST
HOW
RECEIVED
(ORDINARY,
DATE
RECEIVED REGISTERED
or DELIVERED)
FROM WHOM RECEIVED
NATURE OF
REMITTANCE
(eg cheque)
NAME
PURPOSE
FOR WHICH
RECEIVED
ADDRESS
Exercise 6.1b
Use the Remittance Register above to record the
following payments received through the post.
On each day, sign your own name as the finance officer
who usually opens the mail. Also get your partner to sign
as witness that you have recorded all money received.
2001
Feb 5
95
Received R75,00 cheque no. 877 from M Naidoo
for her child’s (Zonki) school fees. Issued receipt
no. 101 (Address: Box 32, Zimbali).
R
c
SIGNATURE
OF OFFICER
TO WHOM
HANDED
OVER
SIGNATURE
NATURE OF OF OFFICIAL
DISPOSAL
CHECKING
RECEIPT NO. REGISTER
AND DATE
Feb 8
Received a salary cheque of R5 000 in favour of
A Buthelezi from the Education Dept. Cheque
handed to A Buthelezi (Address: Box 1A, PMB)
Feb 16
Received a cheque for R250 as registered post.
This was from ABC Performers for the use of
the school hall for their concert. Issued receipt
no. 144. (Address: Box 64, Vryheid).
Feb 22
A messenger from ABI arrived at the school with
a delivery book and an envelope containing a
cheque for R675 made payable to the school. The
cheque was for the refund of cold-drink returned
by the tuckshop. Sent receipt no. 160 (Address:
Box X204, Freetown).
Check your answers at the back of this manual.
Section 6: Registers
At the end of each week (9th, 16th and 23rd), the
Principal, Mrs Singh, will check and sign the Register.
AMOUNT
SIGNATURE
OF OFFICER
OPENING
POST
Section 6: Registers
6.2 What is the Distribution Register?
In many schools the class educators are responsible for the collection of school
fees from the learners. The school distributes a Receipt Book to each educator,
and makes a careful record of all Receipt Books issued. After that, the educator
will issue a receipt to each learner who brings fees. The educator will then hand
over the money for fees at the school office.
For detailed instructions about keeping Distribution Registers,
refer to the Departmental Instructions, Section 6.4.
You will need a very strict system:
to control the issuing of Receipt Books to educators;
to control the handing over of school fees by learners to their educators;
to control the handing over of school fees by educators to the finance
officer.
6.2.1 How do we start a Distribution Register?
When the principal receives a stock of Receipt Books from the supplier (printer)
s/he must check the following very carefully:
Each Receipt Book should have a unique number, and all the Receipt Books
should be present.
Each Receipt Book should be checked to see that no receipt forms are
missing and that receipts have been numbered in sequence.
Each Receipt Book should be entered in the Distribution Register.
The following small certificate should be stapled at the back of every
Receipt Book. (This ‘certificate’ could be hand-written.)
Checked
Receipt forms number ________ to number ________ received by me
Signature__________________
Date __________
Spare receipt books must be kept in a locked place. The principal must be
sure that no unauthorised person is given a Receipt Book.
The principal must control the system very carefully.
Now complete exercises 6.2a and 6.2b on the next pages.
96
AMANDLA SECONDARY SCHOOL
DISTRIBUTION REGISTER
DATE
RECEIVED
RECEIPT
BOOK NO
FIRST
RECEIPT
NO
LAST
RECEIPT
NO
01-01-22
1
1
100
R Twala
R Twala
01-01-22
2
1
100
S Dube
S Dube
01-01-24
3
1
100
J Patel
J Patel
01-01-25
4
1
100
P Smith
P Smith
01-01-29
5
1
100
P Zondi
P Zondi
01-02-01
6
1
100
L Zulu
L Zulu
01-02-14
2
46
100
01-03-05
5
17
100
SIGNATURE SIGNATURE
NAME OF
DATE
OF
OF
EDUCATOR EDUCATOR PRINCIPAL RETURNED
LAST
RECEIPT
ISSUED
01-02-14
45
01-03-02
16
SIGNATURE SIGNATURE
OF
OF
EDUCATOR PRINCIPAL
S Peterson S Peterson
R Maphai
R Maphai
Exercise 6.2a
3. On what date was it returned?
Look at the example of a Distribution Register
above.
4. What was the last receipt number issued in S. Dube’s book?
Notice that six Receipt Books were issued at the
beginning of the year.
Each book starts with Receipt No. 1 and ends with Receipt
No. 100.
Now answer the following questions:
97
1. To whom was Receipt book no. 2 issued first?
2. On what date was it issued?
6. What is the next receipt to be issued in Receipt Book
No. 2?
Check your answers at the back of this manual.
Note: It is possible to buy receipt books from a stationery
shop. However, it is better to get receipts specially
printed for your school. Each receipt should give the
school name and have a unique number.
Section 6: Registers
Each Receipt Book has a different number written on the
cover.
5. On 14 February, the same Receipt Book (No. 2) was reissued. To whom was it issued?
Section 6: Registers
Exercise 6.2b
In this exercise, the system is slightly different. There are 10 receipt
books, each with 200 receipts. So the receipts are numbered as follows:
Book no. 1
001- 200
Book no. 2
201- 400
Book no. 3
401- 600
Book no. 4
601- 800
Book no. 5
801-1000
Book no. 6
1001-1200
Book no. 7
1201-1400
Book no. 8
1401-1600
Book no. 9
1601-1800
Book no. 10
1801-2000
(All books were received on 22 January 2001)
Use the Distribution Register to record that you have issued the Receipt Books
as follows:
2001
23 Jan
Book 1
Book 2
K Smith
R Patel
24 Jan
Book 3
Book 4
V Georgiou
F Salamades
25 Jan
Book 5
Book 6
Book 7
H Buthelezi
L Marneweck
L Dube
29 Jan
Book 8
Book 9
Book 10
A Chanza
S Ndimande
B Brown
Of course, as principal (or finance officer), you would make sure that each
educator signs the Distribution Register when s/he accepts the Receipt book.
The principal should sign each step in the distribution process.
Compare your answers with those at the back of the manual.
98
__________________ SCHOOL
DISTRIBUTION REGISTER
DATE
RECEIVED
BOOK
NUMBER
(From
supplier)
(Consecutive
No.s)
RECEIPT SERIAL NO
FROM
TO
TO WHOM
ISSUED
SIGNATURE
OF
RECIPIENT
DATE
RECEIVED
DATE
RETURNED
LAST
RECEIPT
ISSUED
SIGNATURE SIGNATURE
OF
OF
EDUCATOR PRINCIPAL
Section 6: Registers
99
Section 6: Registers
6.3 What is a School Fee Register?
According to Departmental Financial Instructions, Section 6.5.8, class educators
are asked to collect school fees from learners in their classes. This process is
controlled in the following way:
1. Each class educator is issued with his or her own
Receipt Book.
See section 2 of
this manual.
2. When s/he receives it, s/he signs the Distribution
Register, which is controlled by the school principal. This signature is proof that
the Receipt Book has been handed over.
3. The educator writes all the names of learners in his/her class in alphabetical
order in a ‘School Fee Register’ (also called ‘Class Register for Collection of
School Fees’). The next page gives an example of the School Fee Register. This
Register is kept at the back of the Class Attendance Register.
4. Each time a learner pays school fees, the class educator gives him/her a receipt.
5. Each time a receipt is issued to a learner, the receipt number is entered in the
register.
6. When a learner brings a Deposit Slip to prove
that the parent has paid the fees at the bank
(direct deposit), this should also be recorded in
the School Fee Register, but not receipted.
See sections 1.2
and 2.1.1 of this
manual.
7. Once a day, if the educator has collected any money or deposit slips on that day,
s/he must personally hand over the following things to the finance officer:
all school fees money received from learners (plus any Deposit Slips to
prove direct deposits of fees)
the class receipt book
the school fee register
8. The finance officer will check the amount of money handed over, and also check
the Receipt Book and the School Fee Register.
9. The finance officer will then give one receipt (a School Fund receipt) for the
total amount of money to the class educator. S/he will also make out a receipt in
the name of the principal, to cover the Direct Deposit slip(s). S/he will hand
back the Class Receipt Book and the School Fee Register.
10.The class educator must stick (staple or pin) the School Fund receipt in the
Class Receipt Book on the back of the duplicate of the last receipt issued.
Here is an example of the School Fee Register. (Notice that this example is called
a Class Register for the Collection of School Fees.)
100
CLASS REGISTER FOR THE COLLECTION OF SCHOOL FEES
DATE
FEES
NAME OF LEARNER
R
RECEIPT NO.
c
FEES
R
RECEIPT NO.
c
FEES
R
RECEIPT NO.
c
FEES
R
RECEIPT NO.
c
Section 6: Registers
101
Section 6: Registers
6.4 What is a Postage Register?
The school must keep an accurate Register of stamps
bought and stamps used. We use a Postage Register to
record all outgoing mail (post). Here are the guidelines
for postal records:
See Departmental
Instructions,
Section 6.15.
1. The school must keep a Postage Register to record all outgoing mail and postage
stamps bought.
2. Priority mail and courier services are expensive. They should be used only when
really necessary.
3. The principal should appoint a person (in writing) to look after the stamps and to
record postage in the Register.
4. The Register should be balanced once a month - and compared with the actual
numbers of stamps on hand.
5. The principal must check the Register and the actual number of stamps once a
month. Once this checking has been done, the principal should sign and date the
page of the Register.
6. If there are any deficiencies (shortages), these should be reported to the
Finance Committee.
7. If your school uses a franking machine, the records are the same as with the
use of stamps.
What is a franking machine?
Some schools with many learners prefer to use franking
machines instead of stamps. This is how they work:
You can hire a franking machine from the Post Office;
You pre-pay an amount, eg. R300
Every time you put an envelope into the machine to
‘stamp’ it, you reduce the balance in the franking
machine.
When you have used up the whole R300,00 you have to
go back to the Post Office and pre-pay another amount.
Now complete exercises 6.4a and 6.4b on pages 104-107.
102
Section 6: Registers
6.5 What is a Telephone Register?
Another school record is a Telephone Register. This is a record of all telephone
calls made, and it shows whether the calls were for school fund purposes or for
private purposes. Members of staff are asked to pay for their calls at the end of
the month.
The rules of TELEPHONE USE AT SCHOOL are:
Rules according to
Departmental
Instructions, Section 6.14
A register must be maintained in which
details of all telephone calls will be
recorded.
The person who made the call must reimburse the cost of private calls to
the school fund account.
A register must be kept of all fax usage.
The principal must take care that there is no abuse of telephone and fax
services.
The finance officer will need to calculate the cost of calls. This can be quite
complicated!
The Telephone Register shows which calls were made, how much they cost, and
whether the money has been paid by the caller.
Complete exercise 6.5a on page 108 to practise completing a telephone
register.
103
Section 6: Registers
Exercise 6.4a: Postage register
Look at the Postage Register on the next page and answer the
following questions:
1. There were no stamps in stock at the beginning of the year. We then bought
a small supply of stamps. How much did we buy?
2. We used a cheque to pay for the stamps. What was the number of the
cheque?
3. On 22 January we sent an ordinary letter to Z Twala. What was the value of
the stamp put on the envelope?
4. How many stamps were left after posting to Z Twala?
5. On 23 January we sent a priority item to someone. To whom did we send it?
How much was the value of the stamps on the note? How many stamps were
then left over?
6. We posted one parcel. To whom did we post it? How many stamps did we put
on the parcel?
7. At the end of the month, how many stamps were left?
8. The principal, Mrs Singh, checked and signed the Register. On what dates did
she sign it?
9. Look at the Summary. What was the total value of stamps purchased this
month? What was the total value of stamps used? How many were left over?
The principal should check that the Postage Register information agrees with
the number of stamps available.
How do your answers compare with those at the back of the manual?
104
POSTAGE STAMP REGISTER
QUANTITY CHEQUE
NO. or
OF STAMPS
DATE
PURCHASED PETTY
RECEIVED e.g 20 x R1
CASH
01.01.22
15 x R1
Cheq 101
TYPE OF
POSTAGE
TOTAL
VALUE OF
STAMPS
DATE
USED
R15.00
VALUE
NO. OF
e.g.
Ordinary, STAMPS
Priority,
USED
Parcel
NAME OF
RECEIVER
ADDRESS
01.01.22
Z Twala
Box 24 Freetown
Ordinary
1
01.01.23
S Dlamini
1850 X Township
Priority
01.01.24
R Peters
54 Main Rd, PMB
01.01.29
Educ Dept
01.01.30
F Xuma
VALUE
SIGNATURE
DATE OF
OF
OFFICER CHECKING
c CHECKING
c
STAMPS
ON HAND
1
00
14
14
00
3
3
00
11
11
00
Ordinary
1
1
00
10
10
00
Box 1A PMB
Priority
3
3
00
7
7
00
32 High Rd Vryh
Parcel
5
5
00
2
2
00
R
R
R
R
R
R
V Singh
01.01.26
V Singh
01.02.02
0.00
15.00
15.00
13.00
2.00
105
Section 6: Registers
SUMMARY
Opening stock of stamps (Value)
ADD Purchase of stamps (Value)
TOTAL
LESS Stamps used (Value)
Stamps on hand (Value)
R
Section 6: Registers
Exercise 6.4b: Recording in a postage register
Use the Postage Register on the next page to record the following:
1. Balance of stamps from previous month: 2 x R1 = R2.
2. On 1 Feb, purchased R100 worth of R1 stamps. Gave cheque no. 136.
3. A salary sheet was posted to the Department on 5 Feb. It was A4 size (the
same as this training manual) and a standard envelope was used.
4. On 12 Feb, we posted a priority mail cheque to ABI (This costs R2).
5. On 13 Feb, an ordinary letter was posted to a parent, Ms M Maxwell.
6. On 20 Feb, sent 30 circulars to parents, each with a R1 stamp.
7. Complete the summary at the bottom of the page.
8. Ask your neighbour to sign the Postage Register as the principal, on the last
day of the month.
Compare your register with that at the back of this manual.
106
POSTAGE STAMP REGISTER
QUANTITY CHEQUE
NO. or
OF STAMPS
DATE
PURCHASED PETTY
RECEIVED e.g 20 x R1
CASH
TOTAL
VALUE OF
STAMPS
DATE
USED
TYPE OF
POSTAGE
NAME OF
e.g. Ordinary,
RECEIVER ADDRESS
Priority,
Parcel
R
R
R
R
R
VALUE
R
VALUE
c
STAMPS
ON HAND
R
SIGNATURE
DATE OF
OF
OFFICER CHECKING
c CHECKING
107
Section 6: Registers
SUMMARY
Opening stock of stamps (Value)
ADD Purchase of stamps (Value)
TOTAL
LESS Stamps used (Value)
Stamps on hand (Value)
NO. OF
STAMPS
USED
1. On 2 Feb 2001 Mr Naidoo, an educator, used the
school telephone to make an urgent private call to
his home, 29 kms away from the school. He spent
2 minutes on the call.
Exercise 6.5a: Telephone register
Enter the following information in the Telephone Register
below.
Lets assume that Telkom’s minimum charge is 58 cents. The
per minute charges are:
0 - 50km:
21c in stated time
50 - 100km:
60c in stated time
100 km or more: R1,22 in stated time
Total charges are per second.
Remember to tick
or a private call.
whether the call was a school fund call
2. The principal contacted the chairperson of the governing
body on urgent school matters on 9 Feb 2001. His call
lasted 4 minutes. The chairperson lives approximately 4
kms away from the school.
3. Mr Boyes, also an educator, phoned his wife, using the
school phone on 19 Feb 2001. His call lasted 6 minutes, and
the distance of the call was 75kms
Compare your register with that at the back.
TELEPHONE REGISTER
TELEPHONE
NUMBER
SCHOOL
FUND CALLS
PRIVATE
CALLS
DISTANCE
NAME OF
CALLER
SIGNATURE
OF CALLER
COST
R
c
RECEIPT NO.
(if applicable)
108
Section 6: Registers
DATE
Section 6: Registers
6.5.1 How do we total the Register?
Obviously, the school will pay for all telephone calls made on school matters. But
individuals have to pay for private calls. Some calls cost only a small amount, so it
would be silly to collect the money and issue a receipt for every single call.
However, it is important to keep the Telephone Register up to date, and total it at
the end of the month. The person in charge of the Telephone Register (appointed
in writing) should take the following steps at the end of the month:
1
Add up the total private calls money to be collected.
2
Work out how much each individual owes for private calls,
eg
For example:
Mr Bent owes R12.29
Mr Naicker owes R5.50
Ms Zuma owes R6.20
The telephone person will collect a total R23.99
from all the people who made private calls.
3
The total amount of cash is given to the finance officer, who will issue one
receipt for the total amount. As usual, when money is collected for school
matters, the receipt is written in the principal’s name (in his/her official
capacity).
4
This receipt number is repeated in the last column of the Telephone
Register next to each private call that has been paid for.
Now complete exercise 6.5b
109
Section 6: Registers
Exercise 6.5b: Discussion
When the finance officer issues a receipt for money collected for
telephone calls:
1. Who is the receipt made out to?
2. When will this receipt be made out?
3. What is the purpose of the receipt?
Compare your answers with those at the back of this manual.
6.6 What is a Collection Sheet?
Look at Departmental Instructions, Sections 6.22 to
6.25, for detailed guidelines on controlling small
amounts of money collected for the school, using
Collection Sheets.
Money may be contributed to the school fund in various ways. The most usual way is
through school fees. Another way is through fundraising activities. Money raised
through these activities also needs to be controlled. This can be done through using
collection sheets.
The example in the box on the next page shows a Collection Sheet, which was
handed in by a learner, Lethu Zulu, together with R50.00, which he collected for
the school. We can’t expect children to issue a receipt each time they receive a
donation for the school. So instead we ask them to present the Collection Sheet to
each person donating money.
110
Section 6: Registers
(NAME OF SCHOOL)
COLLECTION SHEET
SCHOOL STAMP
AND DATE
COLLECTION SHEET
NUMBER 001
DATE
01-01-23
MONIES RECEIVED FROM
R
AMOUNT
c
L. Chanza
10
00
R Maphai
15
00
D. Gumede
10
00
S. Marhule
10
00
R. Matoung
5
00
50
00
TOTAL
REMARKS
2345
SCHOOL FUND RECEIPT NO: _____________________________
Lethu Zulu
Fernhill Primary
________________________
of ____________________________
is given
(Name of learner)
(Name of school)
the authority to collect monies for the school.
____________________
CLASS EDUCATOR
____________________
PRINCIPAL
111
Section 6: Registers
6.6.1 How do we keep a Collection Sheet Register?
As soon as your school prints/photocopies a batch of collection sheets, they must
be numbered consecutively. We then start a new Collection Sheet Register, where
we record the number of the Collection Sheets issued to each learner.
When the fund-raising activity is finished, we need to be very strict about getting
the Collection Sheets back from the learners (otherwise they could keep the money
which really belongs to the school!) Here is an example of a Collection Sheet
Register, showing that Lethu Zulu has returned his sheet, together with R50.00.
(NAME OF SCHOOL)
COLLECTION SHEET REGISTER
NUMBER IN
NUMERICAL
SEQUENCE
001
002
003
004
005
006
007
008
009
010
011
012
013
014
015
016
017
018
019
020
112
SIGNATURE
TO
OF
WHOM
RECIPIENT
ISSUED
L. ZULU
DATE
01/08/01
SIGNATURE
SCHOOL OF OFFICIAL
NAME
RECEIVING
FUND
OF
NATURE OF
AMOUNT
DATE
COLLECTION ISSUING RETURNED COLLECTED RECEIPT COLLECTION
NUMBER
SHEET
OFFICER
Fun Run
G. Gina
01/08/15
50-00
2345
7
ANNUAL FINANCIAL STATEMENTS
7.1 What are Annual Financial Statements?
At the end of each year, the Finance Committee needs to prepare a set of annual
financial statements. The purpose of these statements is to provide financial
information to the governing body, parents, and other interested parties. These
statements form the basis of the governing body’s external responsibility to the
community.
It is an official requirement that the following statements be sent to the
Secretary of the provincial Department of Education.
1. Receipts and Payments Statement (Or an Income and Expenditure Statement)
2. Annual Bank Reconciliation Statement
3. Statement of Investments
4. Stock-take Certificates
5. Statement of Debts Outstanding
Criteria for a good financial statement
1. Information given in the financial statements must be easily understandable, so
when a person reads them s/he should have a reasonable understanding of the
financial position of the school.
2. All relevant information should be provided. For example, in the Stocktake
Certificate, if the school owns a computer, the statement should provide
important information about the computer, like Mecer computer no.
AZ34276895.
3. All information should be reliable, that is, there should be no errors (mistakes),
and there should be no ‘bias’ (inaccurate or skew information). If another person
were to draw up the statement, the result should be the same.
Section 10 of the Departmental Instructions gives more detail
about all the Annual Financial Statements that are required.
113
Section 7: Annual Financial Statements
7.2 How do we draw up a Receipts and Payments Statement?
We have already dealt with the Receipts and Payments Statement as part of the
Budgeting process. The difference between the two documents is:
Receipts and Payments Statement is a summary for the past year.
The Budget shows expected receipts and payments for the next year.
Section 10.1 of the Departmental Instructions states that you need
to draw up a Receipts and Payments Statement.
On the next page is an example of a Receipts and Payments Statement. It lists all
amounts that were actually received (total for the year), and all amounts that were
actually paid (total for the year). Compare the total receipts with total payments.
If receipts were greater, then there is a SURPLUS. If payments were greater,
then there is DEFICIT.
In the example, an opening balance (R3 700) has been ‘brought down’. This amount
was the surplus at the end of the previous year. The closing balance, that is the
surplus (R5 500) will be shown in next year’s statement as an opening balance.
At the bottom of the Statement, explanatory notes are given for some items.
Compare with budget
At the end of the last year (2000), we drew up a Budget for the next year (2001).
The Budget was a list of receipts and payments that we expected. At the end of
this year (2001), we draw up a Receipts & Payments Statement to show the actual
amounts received and paid. We should compare the Budget with the Receipts &
Payments Statement. Once again, we can see how important the Budget is for
controlling the school’s money.
114
Section 7: Annual Financial Statements
eg
J GWALA SCHOOL
RECEIPTS AND PAYMENTS STATEMENT
AS AT 31 DECEMBER 2001
RECEIPTS
Balance/Surplus brought down
1 Jan 2001
School fees
Excursion
Tuckshop
Fun run
Concert
Civvies day
Hiring of hall
Pre-primary school fees
Sundries (Note 1)
Interest received
TOTAL
PAYMENTS
3
72
12
36
7
2
1
20
19
1
1
700
000
000
000
000
000
200
000
600
300
000
Tuckshop
Excursion
Sport - Various codes
Repairs and maintenance
Security/Cleaning Services
Salaries (Pre-school)
Telephone
Bank Charges
Photocopier meter charge
Textbooks/Library/Study aids
Stationery
Sundries (Note 2)
Total
Balance/Surplus
31 December 2001
(Note 3)
175 800
TOTAL
30
12
14
12
44
19
5
1
10
2
19
170
000
000
000
500
000
600
000
700
000
500
000
000
300
5 500
175 800
NOTES:
1
2
3
Sundry Receipts:
Sundry Payments:
Cake sale
Clown show
Hot dog sale
300
600
400
1 300
Petty Cash
Back-up alarm
Postage
Awards function
Annual treat
Audit Fees
Transport
Refreshments
500
000
700
000
000
000
000
800
19 000
3
5
4
3
2
Total receipts were more than total payments. Therefore the difference is a
surplus.
_____________________________
__________________________
TREASURER
PRINCIPAL
___________________________________
CHAIRPERSON:
SCHOOL GOVERNING BODY
_______________________________
AUDITOR
115
Section 7: Annual Financial Statements
7.3 What is an annual Bank Reconciliation Statement?
In Section 2, you learned how to do a monthly Bank Reconciliation Statement.
eg
Here is an example of an annual Bank Reconciliation Statement:
BANK RECONCILIATION STATEMENT OF ROSEMOND SECONDARY
SCHOOL AS AT 31 DECEMBER 2001
Receipts Cash Book (Total of Bank column)
Less Payments Cash Book (Total of Bank column)
18 190.00
9 066.50
9 123.50
Balance as per Bank Statement No. 061 dated 01/12/31
Add Deposits not as yet credited
10 688.50
525.00
11 213.50
Less Outstanding cheques:
Cheque no.
Amount
218
300.00
223
480.00
225
275.00
226
1035.00
Total
2090.00
2 090.00
Balance as per reconciled Bank Statement
9 123.50
At the end of each year, the finance officer should send the 12th Bank
Reconciliation Statement to the Secretary of the Department of Education. If this
Bank Reconciliation Statement is correct (that is, if the bank balance is reconciled
with the Cash Book balance), then all the previous 11 Bank Reconciliation
Statements must have been correct.
The 12th Bank Reconciliation Statement (for December) is especially important
because it is one of the official Annual Statements that must be sent to the
Department of Education and Culture.
116
Section 7: Annual Financial Statements
7.4 What is a Statement of Investments?
Surplus funds in the current account may
be deposited into a Savings or Fixed
Deposit account in the name of the school,
with a registered financial institution or a
Post Office savings bank. Such deposits
must carry the approval of the governing body.
Departmental Instructions, 1.2.5,
Any proposed alternative investment should be detailed in
writing to the Secretary. His/her approval, in writing, must be
received before proceeding.
Deposits of surplus funds in the bank are known as ‘investments’. The bank will pay
interest on investments on a monthly, quarterly or yearly basis. Your school can
negotiate whichever it prefers. Normally, Savings Accounts and Fixed Deposit
accounts pay a higher rate of interest on favourable balances than current
accounts.
When you prepared the school’s budget, you may have allowed for Interest
received on investments as one of the expected incomes.
At the end of the year, the finance officer should prepare a Statement of
Investments to be sent to the Secretary of the Department of Education and
Culture. This Statement should include the following for each investment. Each
investment should have a separate Statement;
1.
Name of bank/institution
2. Account number
3. Type of investment (e.g. 32 day call, 3 months’ Fixed Deposit)
4. Amount invested
5. Date of investment
6. Total interest received
7. Maturity date (when the amount can be withdrawn, e.g. in 6 months’ time)
8. Rate of interest for this investment (e.g. 11%)
9. Any withdrawals since date of investment
10. Current balance of investment account.
These requirements are listed in the Departmental Instructions, Section 10.3.
117
Section 7: Annual Financial Statements
Certified copy
When you prepare the Statement of Investments for the Secretary of the
Department of Education and Culture you need to attach to it a certified copy of
the investment account as at 31 December each year.
To get a certified copy, you need to take the original copy and a photocopy to the
police station, or any other Commissioner of Oaths. The Commissioner will compare the
two copies, and if the photocopy is a true copy, then s/he will stamp and sign the copy.
It is also helpful to know that the principal of a school is empowered to certify
documents for school purposes.
Now complete exercise 7.4.
Exercise 7.4: Statement of Investments
Draw up a Statement of Investments for your school as at 31
December 2000, using the following information:
On 1 January 2000, your school deposited R10 000.00 into a one-year fixed
deposit account with HONEST BANK. The account received an interest rate of
11.00% per annum (year). The account number at HONEST BANK is 063 785
432. The investment was left untouched for the whole of 2000. There were no
withdrawals or further deposits during the year.
J GWALA SCHOOL
STATEMENT OF INVESTMENT
AS AT 31 DECEMBER 2000
NAME OF BANK
ACCOUNT NUMBER
TYPE OF INVESTMENT
ORIGINAL AMOUNT INVESTED
DATE OF INVESTMENT
TOTAL INTEREST RECEIVED
MATURITY DATE
RATE OF INTEREST
WITHDRAWALS SINCE INVESTMENT
CURRENT BALANCE OF INVESTMENT
A certified copy of the investment account as at the close of the financial year, 31 December 2000 is
attached.
We hereby certify that the above statement is, to the best of our knowledge, true and correct.
_________________________
TREASURER
________________________
PRINCIPAL
________________________
CHAIRPERSON,
GOVERNING BODY
_________________________
AUDITOR
118
Compare yours to the one at the back of this manual.
Section 7: Annual Financial Statements
7.5 What are Stock-take Certificates?
Once a year, the school must do a ‘stock take’ of all its property.
Read section 5 of this manual for more information.
Each school should take the following actions:
1.
The principal appoints one person who is responsible for keeping and updating a
stock register for all school fund items. Let’s call this person the ‘stock
controller’.
2.
The stock controller has a stock register that lists all items belonging to the
school. All items must be properly safeguarded, and neatly stored so that they
can easily be checked and audited.
3.
During the year, when the stock controller distributed items to class
educators, they signed the stock register to acknowledge receipt of those
items.
4.
Once a year, the stock controller together with class educators must check all
stock in the school.
If any items have been lent, there should be a receipt (called an
‘Acknowledgment of Loan’). This Acknowledgment must be pinned in the files
until the items have been returned. All loans must be returned before
stocktaking.
If there are any shortages or surpluses, these should be recorded on a
separate sheet.
5.
At the end of the year, the stock controller should prepare a Stock-Take
Certificate to be sent to the Secretary of the Department of Education and
Culture. This proves that a stock-take really did happen.
119
Section 7: Annual Financial Statements
eg
This is an example of a Stock-Take Certificate.
STOCK-TAKE CERTIFICATE
(NAME OF SCHOOL)
DATE: _________________ (end of financial year)
We, the undersigned, hereby certify that:
1. All stock received by the school has been taken on charge as per Departmental
Instruction 7.1.2.
2. The annual stocktake required in terms of Departmental Instruction 7.1.5 has
been conducted.
3. All deficiencies and surpluses are as per attached lists. (If there are no surpluses
or deficiencies, a ‘Nil’ return is to be submitted).
4. The necessary stock registers are being kept and the stocktake information
updated accordingly.
5. The information contained herein and in the attached lists is, to the best of our
knowledge, true and correct.
_________________________
PRINCIPAL
________________________
STOCK CONTROLLER
________________________
CHAIRPERSON,
SCHOOL GOVERNING BODY
_________________________
AUDITOR
7.6 What is a Statement of Debts Outstanding?
During the course of the year, the school tries many different ways to raise
money. Besides school fees, it may run a tuckshop, it may sell uniforms, it may hold
concerts, etc. Each of these activities will bring money into the school, so that the
school can offer improved education to its learners.
However, at the end of the year, there are often amounts owing to the school.
These are called ‘Debts Outstanding’. It is important that the governing body
should know about these amounts outstanding, so they are written in a Statement
that is presented to the governing body.
The governing body will have to decide what steps it will take to get the money. If the
members know that every effort has failed to get the money, they may even decide to
write the amounts off as ‘bad debts’. This, of course, should be the school’s last resort.
Now complete exercise 7.6 to practise completing a Statement of Debts Outstanding.
120
Section 7: Annual Financial Statements
Exercise 7.6: Statement of Debts Outstanding
Use the information below to complete the Statement of Debts
Outstanding for Excel Primary School:
1. The parents / guardians of 20 learners did not pay their fees of R50.00 each.
2. The following amounts are still outstanding from the sale of tickets for a
concert that was held:
Mr Zondi, 10 tickets at R20 each
Mr Chetty, 5 tickets at R15 each
Mrs Smith, 5 tickets at R5 each
3. Various items were sold to learners during the year, and the following have
not yet been paid for:
2 ties at R10 each
4 monograms (badges) at R5 each
EXCEL PRIMARY SCHOOL
STATEMENT OF DEBTS OUTSTANDING
Date:_______________
The following amounts are outstanding as at 31 December 2000.
DESCRIPTION OF DEBT
1.
2.
3.
AMOUNT OUTSTANDING
School fees
20 learners at R50 each
_____________?
Concert tickets:
10 tickets @ R20 (Mr Zondi)
5 tickets @ R15 (Mr Chetty)
5 tickets @ R5 (Mrs Smith)
________?
________?
________?
_____________?
Sale of uniforms:
2 ties @ R10
4 monograms at R5
________?
________?
_____________?
TOTAL DEBT OUTSTANDING
_____________?
_________________________
PRINCIPAL
________________________
TREASURER
________________________
CHAIRPERSON,
SCHOOL GOVERNING BODY
_________________________
DATE
Compare your statement with that at the back of the manual.
121
Section 7: Annual Financial Statements
7.7 What is a Cash Books Summary?
During the year, it is a good idea to fill in Summary Cash Books. Each month, the
finance officer writes the totals from the specialised columns from the Cash Books
into the Summary Cash Books. Each month you could pencil in the totals, and change
these after the next month’s expenses.
The Summary Cash Books can be presented at each monthly meeting of the school
governing body. You can then see at a glance how the school’s finances are going,
and whether the school is staying within budget limits. At the end of the year,
these summaries are useful when you are drawing up the new budget.
eg
Here are examples of two summaries after five months (end of May),
with totals ‘pencilled’ in:
SUMMARY OF RECEIPTS CASH BOOK - 2001
MONTH
SCHOOL FEES
DONATIONS
TUCKSHOP
January
12 000.00
2 000.00
450.00
1 200.00
February
2 500.00
300.00
450.00
March
1 050.00
340.50
April
450.00
220.50
May
45.00
June
16 045.00
July
August
September
October
November
December
TOTAL
122
100.00
2 100.00
UNIFORMS
SUNDRY
1 500.00
100.00
500.00
1 811.00
1 750.00
1 500.00
DETAILS
Fund-raising
Section 7: Annual Financial Statements
eg
Summary 2:
SUMMARY OF PAYMENTS CASH BOOK - 2001
MONTH
SPORT
TRANSPORT
January
200.00
February
120.00
200.00
50.00
470.00
April
870.00
364.00
May
400.00
210.00
June
1 640.00
1 244.00
March
STATIONERY
TUCKSHOP
350.00
300.00
100.00
200.00
SUNDRY
DETAILS
235.00
Repairs
450.00
Catering
250.00
250.00
180.00
300.00
700.00
1 230.00
685.00
July
August
September
October
November
December
TOTAL
7.8 How do we ensure safe custody and disposal of
financial records?
By law, you are required to keep all accounting / financial records for seven years.
Once a year, when the auditors check your records, they will ask to see many
documents. You should be able to produce the documents quickly and easily. So you
should file all documents neatly.
See Departmental Instructions, Section 6.3 for further information.
Basic rules of filing:
A good filing system is simple. Although the finance officer will do the
filing, it should be possible for the auditor to go to the files and find any
document easily and quickly.
A good filing system must be safe. The documents must be locked away, and
not be accessible to any unauthorised person.
123
Section 7: Annual Financial Statements
A good filing system must be compact. It should take as little space as
possible.
A good system must be convenient. It should be easy to reach the
documents. We shouldn’t have to move 20 boxes before we can reach the
files, or they shouldn’t be kept in the back of the stock-room!
Documents to be stored safely
1.
Cheque Books
The cheque book you are currently using should always be stored away by the
finance officer responsible when not in use. You should get a new cheque book
only when your current cheque book is almost finished.
2.
Cash Book
One Receipts Cash Book and one Payments Cash Book are normally kept at
schools. These are very important accounting records and must be kept in a
very safe place.
3.
Payment Advice File
As you know, Payment Advice forms are used when issuing cheques. You should
also staple all supporting documents to the Advice Form, and file them in
Number order, that is, the number of the cheque.
Once the bank has returned the cashed cheques, they should be stapled to the
relevant Payment Advice form. These returned cheques are important proof of
payment, and they need to be carefully safeguarded.
4.
Receipts
You learned how to issue receipt books in another section of this module. The
most important thing to remember now is that receipt books are very
important documents, and can easily be misused fraudulently. Unused receipt
books must be kept in a safe place.
5.
Registers
You already know about a range of registers which are used to control money
and information at a school. Always keep these registers - present and past
ones - in careful order in a safe place.
6.
Bank Statements
These are some of the first documents that the auditor will ask for. Bank
Statements are very important financial documents. When you receive them
from the bank at the end of the month, be sure to file them in number order.
Warning! A lost bank statement looks like an attempt to destroy evidence of
fraud! So protect yourself by keeping all Bank Statements.
124
Section 7: Annual Financial Statements
7.
Hire purchase and all contracts
All legal documents must be kept in a file for the financial year, in alphabetical
order, and each contract or agreement should be kept in a sub-file that is
clearly marked.
8.
Tuckshop Reconciliation Statements
Once a week, the finance officer should work with the Tuckshop Manager to
draw up a Tuckshop Reconciliation Statement. In this way, we ensure that
there is perfect control of tuckshop stock and tuckshop money. All previous
Reconciliation Statements must be filed carefully, in date order.
9.
Fund-raising documents
The following documents need to be kept in a safe and orderly way:
Minutes of the Fund-Raising Committee
The governing body must establish a Fund-Raising Committee to administer
and undertake fund-raising projects. The committee will hold regular
meetings where important decisions are taken. Minutes of these meetings
form part of the accounting documents of a school, and need to be
maintained for future reference and audit purposes.
Income and Expenditure Statements
After each fund-raising project an Income and Expenditure Statement
must be drawn up, and kept together with all other supporting documents.
Collection Sheet Register and Collection Sheets issued to learners
Schools normally use Collection Sheets to collect money where individual
receipt books are not feasible. For example, when a learner collects money
from family members or friends. These Collection Sheets must be kept in
numerical order and be bound together for audit purposes.
Ticket Register
Where tickets are sold, a ticket register must be maintained. All unsold
tickets must also be safely kept together with the ticket register for audit
purposes.
Brochures
Where funds are raised by means of advertisements published in a
brochure a copy of this brochure, reflecting the respective receipt
numbers, also needs to be kept with the other supporting documents for
that particular fund-raising event.
125
Section 7: Annual Financial Statements
Disposal of accounting records and documents
Accounting records are to be destroyed only after seven years. However, before
such documents are destroyed, a Destruction Certificate must be completed and
forwarded to the governing body. The principal must supervise the destruction
process.
For further information, see Departmental Instructions, Section 17.
Now complete exercise 7.8.
Exercise 7.8: Filing; discussion questions
The finance officer of Excellence Primary School is complaining about
a lack of space.
The following documents are still in the office. What would you recommend to
the governing body? Keep them on file, or dispose of them?
1.
Debs Ball documents - held on 10 March 1989
2.
Fun Run Collection Sheets - held on 3 May 1991
3.
Readerthon Collection Sheets - held in June every year
4.
Telephone Register from 1989 until today
126
8
ANSWERS
Section 1: Banking
Exercise 1.3a
1.
21 February 2001
6.
A Sello and J Hlope
2.
Boiteko School
7.
R100 in notes, R4.50 in coins
3.
Pietersburg
8.
R339.50
4.
5.
123 456 7890
Current
9. J Twala
10. Original and copy. Top copy kept by the
bank, duplicate copy given back to the
school.
Exercise 1.3b
ABC BANK
Account Deposit/Rekening-deposito
Subject to conditions printed overleaf
Onderworpe aan voorwaardes op keersy gedruk
Date
21 February 2001
Datum _______________
Account Name
Boiteko School
Rekening Naam __________________________________________
Branch No.
Tak-nr.
2 2 5 6 1 3 0 0
Account No.
Rekening-nr.
1 2 3 4 5 6 7 8 9 0
Exercise 1.3a / 1.3b
Branch
Pietersburg
Tak ____________________________________________________
Reference No.
Verwysings-nr.
X
Cheque
Tjek
N.B.: List money/postal orders
individually under cheques.
L.W.: Geld/posorders moet
afsonderlik onder tjeks aangedui
word.
Cheques/Tjeks
Savings
Spaar
Loan
Lenings
Time deposit
Termyn deposito
180 00
Notes
Note
Coins
Munt
Sub Total
Sub-Totaal
23 62
203 62
answers:
Type of Account
Tipe Rekening
Drawer’s Name/Trekker se Naam
1.
2.
3.
70 00
M Bodika
K Mbaya
C Mgotsi
35 00
35 00
4.
5.
6.
7.
8.
Paid in by:
Inbetaal deur:
Total
Totaal
R
343 62
Signature
Handtekening
For office use only
Slegs vir kantoorgebruik
Item No. 2250 (6/96) PMS
127
Exercise 1.4a
1. 4 June 2001
2. 64032
answers:
3. B Jabula
4. Settlement of debt
5. J Twala and R Smith
6. R110.20
7. To make it safer. It is more difficult to make changes
8. The counterfoil serves as a record of this payment
Exercise 1.4a / 1.4b / 1.5 / 1.7
Exercise 1.4b
1. The counterfoil is not dated
2. The amounts are different: counterfoil R3000.00, cheque R3300.00
3. The cheque has only one signature
4. The name of payee and the amount in words should be closer to the left-hand
side.
5. Sharp question! Why is the school giving a cheque for the deposit on a car?
Presumably the car is for the school - not the principal!
Exercise 1.5
Date: 4 June 2001
Sipho’s Stores
To: ___________
Settlement
For: ___________
______________
of debt
Amount:
R75-00
______________
ABC BANK
22-07-25-44
le
ab
Yeoville Branch
fer
s
ran
tT
No
Date: 4 June 2001
Sipho’s Stores
PAY _______________________________________
or bearer
Seventy five rands only
THE SUM OF _______________________________________
__________________________________
Cheque no. 64033
No. 64033
220725
90000405043 02
Exercise 1.7
1. 11 June 2001
2. Cheque no. 632
3. R100.00
4. Payee is S Dlamini
5. For plumbing services
6. R Moloi, finance officer and Mrs V Singh, principal
7. Ms V Singh, the principal, approved this payment
128
R75-00
not more than R76.00
Exercise 1.8
1. R902.45
2. Deposits increase a favourable balance
3. Dishonoured cheques decrease a favourable balance
4. 4 deposits
5. 3 cheques presented
6. Cheque payments decrease a favourable balance
7. R1579.68
Section 2: Accounting records
Exercise 2.1a
1. 4 receipts
2. EN Gumede
3. School fees
Exercise 1.8 / 2.1a / 2.1b
4. R100.00
5. Donation
6. R50 donation and R50 for the brochure
7. R395.00
8. The duplicate deposit slip is our source document, that is, our proof that we
deposited the money.
Exercise 2.1b
AMANDLA SECONDARY SCHOOL
12301
8/2 20____
01
Date _________
answers:
Received from
Mr Chauke
________________________________________________
seventy eight
The sum of _________________________________Rands
and ________________________________________cents
class school fees
For _____________________________________________
R 78
: 00
CHEQUE
CASH
with thanks
129
AMANDLA SECONDARY SCHOOL
12302
8/2 20____
01
Date _________
answers:
Received from
Coca Cola Co.
________________________________________________
Two hundred
The sum of _________________________________Rands
and ________________________________________cents
Donation
For _____________________________________________
R 200 : 00
CHEQUE
CASH
with thanks
Exercise 2.1b cont.
AMANDLA SECONDARY SCHOOL
12303
9/2 20____
01
Date _________
Received from
Tuckshop (Ms Moloi)
________________________________________________
One hundred and fifty
The sum of _________________________________Rands
and ________________________________________cents
Sales
For _____________________________________________
R 150 : 00
CHEQUE
CASH
with thanks
AMANDLA SECONDARY SCHOOL
12304
9/2 20____
01
Date _________
Received from
Mrs Sapi
________________________________________________
Forty five
The sum of _________________________________Rands
and ________________________________________cents
Class school fees
For _____________________________________________
R 45
: 00
CHEQUE
CASH
130
with thanks
MNTH DAY DETAILS
YY-MM
RECEIPT CONTROL
DD
TOTAL
NO.
12301
Mr Chauke
DONATIONS TUCKSHOP
SCHOOL
78 00
R
78
c R
00
Coca Cola Co.
12302
9
Tuckshop
12303
150 00
9
Mrs Sapi
12304
45 00
45
00
10
D Jones (principal)
12305
15 00
15
00
c
R
R
c
c
200 00
00
SUNDRIES
BANK
DETAILS
R
c
R
c
R
c
278 00
150
00
195
00
15 00
Exercise 2.1c
Exercise 2.2a
1. Invoice No. 2314
2. J Dube Transport
3. 6 June 2001
Exercise 2.1c / 2.2a
4. Hire of school bus. Return
trip to Estcourt
5. R342.00
6. J Gwala (principal)
131
answers:
SUNDRIES
PSNP
RECEIVED
8
200
INTEREST
FEES
c
R
01-02 8
YEAR: 2001
.............................
February
MONTH: .............................
RECEIPTS CASH BOOK
Exercise 2.2b
Exercise 2.2c
PAYMENTS CASH BOOK
MONTH DAY DETAILS
YY-MM
DD
ABC BANK
Hlubi Sports
To: ___________
ab
Yeoville Branch
fer
Soccer Balls
For: ___________
______________
Hlubi Sports
PAY _______________________________________
or bearer
Amount:
R240-00
______________
__________________________________
CHEQUE BANK
CHARGES
NO.
ns
Tr a
t
No
Date: XX-XX-XX
Two hundred and forty rand
THE SUM OF _______________________________________
Cheque no. 64033
No. 64033
220725
64032
28
Hlubi Sports
28
Beju Stationers
64033
64034
28
J. Khoza
64035
90000405043 02
YEAR: .....2001........................
STATIONERY CLEANING TRANSPORT TELEPHONE SPORT
& TOILETRY
EXPENSES
& PRINTING
R
R240-00
c
R
c
R
c
342
R
c
R
SUNDRIES
SUNDRIES
BANK
DETAILS
c
R
c
00
R
c
342 00
240 00
240 00
200 00
200 00
80
00 Repairs
80
00
132
Dube Transport
c
22-07-25-44
le
June
MONTH: .............................
R
01-06 28
Date: XX.XX.XX
answers:
Exercise 2.2c / 2.2b
Exercise 2.2d:
Date
Datum
To
Aan
For
Vir
12/07/2001
ABC BANK
le
22-07-25-44
b
ra
Coca Cola Co. (Registered
s f e Commercial Bank)
n
a
r
Supplies
tT
No
Balance brought
HOWICK
5061
forward
Saldo oorgebring
Deposits
Inbetaalings
Pay
Betaal
Total
Totaal
This cheque
Hierdie tjek
202 58
Date
12/07/2001
Datum
____________________
or Bearer
of Toonder
Coca Cola Co.
Two hundred and two rand and 58c only
R 202-58
AMANDLA SECONDARY SCHOOL
Sub total
Subtotaal
P O BOX 361 HOWICK 3290
Withdrawals
Onttrekkings
Balance carried
forward
Saldo oorgedra
369
1803
Date
Datum
To
Aan Howick
For
Vir
13/07/2001
Stat
Stationery
Balance brought
forward
Saldo oorgebring
Deposits
Inbetaalings
108 64
9000405043 02
ABC BANK
le
22-07-25-44
b
ra
(Registered
s f e Commercial Bank)
n
Tr a
ot
N
HOWICK 5061
Pay
Betaal
Total
Totaal
This cheque
Hierdie tjek
1803 I: 220725I:
Date
13/07/2001
Datum
____________________
or Bearer
of Toonder
Howick Stationers
One hundred and eight rand and 64c only
R 108-64
AMANDLA SECONDARY SCHOOL
Sub total
Subtotaal
P O BOX 361 HOWICK 3290
Withdrawals
Onttrekkings
Balance carried
forward
Saldo oorgedra
14/07/2001
E. Dlamini
Repairs
Balance brought
forward
Saldo oorgebring
Deposits
Inbetaalings
85 00
9000405043 02
ABC BANK
le
22-07-25-44
b
ra
(Registered
s f e Commercial Bank)
n
Tr a
ot
N
HOWICK 5061
Pay
Betaal
Total
Totaal
This cheque
Hierdie tjek
1804 I: 220725I:
Exercise 2.2d
Date
Datum
To
Aan
For
Vir
1804
Date
14/07/2001
Datum
____________________
or Bearer
of Toonder
E Dlamini
Eighty five rand only
answers:
369
R 85-00
AMANDLA SECONDARY SCHOOL
Sub total
Subtotaal
P O BOX 361 HOWICK 3290
Withdrawals
Onttrekkings
Balance carried
forward
Saldo oorgedra
369
1805
1805 I: 220725I:
9000405043 02
133
July
MONTH: ...........................
PAYMENTS CASH BOOK
MONTH DAY DETAILS
YY-MM
DD
01-07 12
CHEQUE BANK
NO.
13
Howick Stationery
1804
14
E. Dlamini
1805
CHARGES
STATIONERY
TRANSPORT EDUCATION TUCKSHOP
& PRINTING
R
R
c
c
R
c
R
c
c
R
202
SPORT
SUNDRIES
EXPENSES
R
SUNDRIES
BANK
DETAILS
c
c
R
58
c
R
202 58
108 64
85
00 Repairs
108
64
85
00
134
Exercise 2.2e
Coca Cola Co.
1803
YEAR: .....2001........................
answers:
Exercise 2.2e
MONTH: March
.............................
MONTH DAY DETAILS
CHEQUE BANK
YY-MM DD
NO.
CHARGES
c
R
01-03 01
Educ Sc Services
345
06
Mr Mmeti (Principal)
08
Hi-Tech Stores
346
347
Simba Chips
348
Eshowe Sports
349
12
STATIONERY
& PRINTING
R
c
R
c
EDUCATION
TUCKSHOP
AIDS
SPORT
R
R
100
R
c
95
SUNDRIES
EXPENSES
c
SUNDRIES
DETAILS
c
R
c
R
42
00
77
MONTH: March
.............................
RECEIPT CONTROL
YY-MM DD
NO.
TOTAL
R
19
c
88
125 00
Mrs Yum
89
66 50
R
SUNDRIES
SUNDRIES
150
00
BANK
DETAILS
c R
125 00
c
R
c
66
R
c
R
c
R
c
R
c
50
Deposit
191 50
Mr Mmeti (Principal)
90
15 00
W. Peters
91
310 00
15
15
00
310
00
00
Deposit
12
00
77 19
FEES
B Fazel
100
YEAR:2001
.............................
DONATIONS TUCKSHOP EXCURSIONS PSNP
SCHOOL
95
c
42
202 40
202 40
MONTHDAY DETAILS
8
BANK
150 00 Repairs
RECEIPTS CASH BOOK
01-03 3
TRANSPORT
YEAR: ....2001........................
310 00
B. Jabula
92
35 20
Sappi Papers
93
100 00
20 Fund-raising
100 00
135 20
Deposit
135
answers:
35
Exercise 2.2f
Exercise 2.2f
PAYMENTS CASH BOOK
Exercise 2.3
1. R23 689.71
2. CR means that is a favourable balance
answers:
3. Decreased
4. R113.80
5. Increased
6. 92 cents. Decreased the balance
7. R25 816.81
Exercise 2.3
8. Increased. The Funds Transfer probably came from a savings account. The
Treasurer knew that s/he was going to write a big cheque very soon, cheque no.
1783, R22 239.00. With this amount, there would be enough money in the
account to meet the cheque.
136
Total
BANK RECONCILIATION STATEMENT OF SUNSET PRIMARY SCHOOL
AS AT 30 JUNE 2001
Receipts Cash Book (total of bank column)
Less: Payments Cash Book (total of bank column)
Balance as per Cash Book
Amount R 90.00
Amount R575.00
Balance as per Bank Statement (No. 21, dated 30 June)
Add Deposits not yet credited to our account
Less:
Outstanding cheques:
Cheque no. 53
Cheque no. 57
Balance as per Reconciled Bank Statement
MNTH DAY DETAILS
YY-MM DD
RECEIPT CONTROL
NO.
TOTAL
R
01-06 1
5
Balance brought down
NP Nkosi
MONTH:
June
..................
YEAR: .............................
2001
SCHOOL DONATIONS
TUCKSHOP EXCURSIONS PSNP
SUNDRIES SUNDRIES BANK
DETAILS
FEES
c
R
c R
c R
c R
c R
c R
375 00
375 00
103
250 00 Uniforms
250 00
Deposit
6
D Naidu
250 00
104
350 00
350 00
Deposit
10
350 00
P Heartstone
105
T Zulu
106
400 00
400 00
225 00
225 00
625 00
Deposit
15
D Naidu
107
300 50
300 50
Deposit
300 50
108
29
ABI
30
Deposit
c
R
c
275 00
275 00
275 00
Interest Received
5 00
5 00 Interest
5 00
(Statement No. 21)
400 00
225 00
925 50
PAYMENTS CASH BOOK OF SUNSET PRIMARY SCHOOL MONTH:
MNTH DAY DETAILS
CHEQUE BANK
YY-MM DD
NO.
R
01-06
R2180.50
R1585.00
R 595.50
R 985.50
R 275.00
R1260.50
R 665.00
R 595.50
4
Simba
52
8
Telkom
53
11
Makro
54
15
Gestetner
55
19
M Smith
56
137
28
Steelware
30
Bank Charges
(Statement No. 21)
answers:
STATIONERY
CHARGES
c
& PRINTING
R
2001
June
YEAR: .............................
..................
TRANSPORT EDUCATION
AIDS
c R
c R
TUCKSHOP SPORT
EXPENSES
c R
c R
SUNDRIES
c R
SUNDRIES BANK
DETAILS
R
c
435 50
Telephone
90 00
275 00
275 00
125 00 Photocopies
50 00
125 00
50 00
575 00
575 00
34 50
34 50
34 50
c
435 50
90 00
57
Exercise 2.4
2180 50
255 00
275 00
50 00
435 50
575 00
215 00
1585 00
Exercise 2.4
RECEIPTS CASH BOOK OF SUNSET PRIMARY SCHOOL
Section 3: Budgeting
Exercise 3.7
answers:
Total expected expenditure
Income, excluding school fees
Shortfall
R16 120.00
4 420.00
R11 700.00
Calculation of school fee per learner:
Exercise 3.7 / 3.8a
2001
Add 20%
Total learners
400 learners
80 learners
480
Less 2.5%
12
468
(Provision for inability to pay)
total learners expected to
contribute
Shortfall
R11 700.00 : 468 (learners)
= R25.00 per learner for 2002
Exercise 3.8a
AMANDLA SECONDARY SCHOOL
BUDGET CONTROL STATEMENT
As at 30 June 2001
2001 Total
2001 Income
Anticipated
to date
Income
(6 monhs)
School fees
Donations
Rent received (school house)
TOTAL INCOME
Photocopying
Media centre
Outings
Travel
Stationery
Sport
Electricity
Furniture and equipment repairs
Repairs and maintenance
Rates
Water
Catering
Incidental/miscellaneous
TOTAL EXPENDITURE
138
26 000
1 500
1 200
R28 700
Anticipated
Expenses
1 850
3 600
1 400
4 000
2 800
2 800
1 750
2 000
3 500
1 000
500
1 800
1 700
28 700
20 000
1 500
800
R22 300
Actual
Expenses
1 500
1 200
400
3 200
2 200
1 800
800
1 800
1 500
500
400
900
500
16 700
Differences
(Variances)
(Reasons?)
Good rate of fees collection
Good - all donations already received
Good - some rent paid in advance
Too much photocopying. Half of year left, but
not enough left for rest of year.
We have not spent as much as we expected
Presumably most of the outings happen at
the end of the year.
We are over-spending on travel. Not enough
left for the rest of the year.
Definitely over-spending on stationery.
This rate of spending is OK, but we must watch it.
This is good. Are there electricity bills that we
haven’t yet paid?
Very little money left for furniture and equipment.
This rate of spending is fine.
Perfect!
Definitely over-spending. We run the risk of
having our water cut off!
Perfect!
Good! We have plenty of funds in reserve for
unexpected expenses.
Exercise 3.8b
This is a very ‘silly’ budget!
1. The budget is not realistic. Expected expenditure is far more than expected income.
2. In view of the expected income the proposed expenditure for educators cannot
be justified.
3. The budget allows for expenditure on lights and water, sanitation requirements
and telephone. The school will receive an allocation that should help towards
these payments, but they have not been included on the income side.
4. Expected income is small, so expected expenditure should be reduced. The
school must stay within a realistic budget.
For example, the amount for maintenance and repairs should be reduced.
Learners should be asked to take special care in looking after school property,
so that we can reduce our expenditure.
Also, too much money has been allocated for duplicating paper. Perhaps more
photocopying could be done ‘back to back’ on paper.
5. Since the expected income is limited the provision to pay the annual salary of a
school clerk from the school fund should also be reviewed.
2. Uniform expenditure is greater in the first half of the year because that is the
time when learners need new uniforms. By the second half of the year, we
assume that the learners have all the uniforms they need.
3. Expenditure on sport probably happens at the beginning of each new term.
4. The Awards Day ceremony happens only once a year, at the end of the year.
5. Affiliation fees (usually to sports associations) are usually paid at the beginning
of the year.
6. There are no sports meetings during the holidays.
7. Expenditure on equipment rental (probably a photocopier) takes place
throughout the year.
8. Expenditure on cleaning services is R1000 per month. Perhaps we pay the
cleaner R900 per month, and spend R100 on cleaning materials, e.g. polish, soap.
9. We spent R833 per month on security. If we need to install burglar bars, this
would leave less money for the security guard’s wages.
139
answers:
1. Tuckshop expenditure would be lower in January, July and December because
the school is closed for holidays.
Exercise 3.8b / 3.9
Exercise 3.9
Section 4: Petty Cash
Exercise 4.4
answers:
1. R100.00
2. 00-06-30 (30 June 2000)
3. Postage stamps
4. Voucher no. 2
5. We made colour photocopies. Money given to AL Copiers.
6. R25.08 left in the Petty Cash tin.
Exercise 4.4 / 5.2a
7. R74.92 put into the tin to restore the imprest to R100.00
Section 5: Stock control
Exercise 5.2a
1. 60 reams
2. 1 ream
3. 59 reams
140
Excercise 5.2b
TALLY CARD: STOCK CONTROL (CONSUMABLES)
DESCRIPTION: ....DUPLICATING PAPER ....
DATE
STOCK
RECEIVED
STOCK
ISSUED
(Quantity)
ITEM NO.: 142
STOCK
ISSUED
(To whom)
STOCK
BALANCE
Balance brought down:
01.05.03
0
60 Reams
60 Reams
01.05.05
1 Ream
R Masondo
59 Reams
01.08.01
2 Reams
R Maphai
57 Reams
01-09-13
01-10-30
107 Reams
50 Reams
5 Reams
L Ramuselei
102 Reams
141
answers:
Exercise 5.2b
DATE
STOCK
RECEIVED
Balance brought down:
STOCK
ISSUED
(Quantity)
STOCK
ISSUED
(To whom)
STOCK
BALANCE
Exercise 5.3
1. BS169/06/97
2. R10 750.00
answers:
3. R42 000.00
4. 10 computers now in stock
Exercise 5.8a
1. 23 January 1998
Exercise 5.3 / 5.8a / 5.8b
2. K Khumalo
3. P Pillay
4. AK Singh
5. 10 Monitors
10 CPUs
10 Keyboards
6. No surpluses
No deficiencies
Exercise 5.8b
1.
K Khumalo
2. AK Singh, A Ntuli, P Price
3. 14 November 1997
4. T Smith, 6 December 1997
5. BS/171/12/97
6. Nil
7. Recommended that the items be
disposed of at a municipal dump.
142
Section 6: Registers
Exercise 6.1a
1. XN Ndlovu, R15.00
2. 24 January 2001.
postal order
3. J Twala
4. K Patel
5. Receipt no. 21
6. It was received as part of fundraising. Receipt no.23
7. Education Department sent the cheque.
X Smith, an educator, signed for it.
8. Ms Singh has checked the Remittance Registers
answers:
Exercise 6.1a
twice so far.
143
6. Receipt no. 46
5. S Peterson
4. Receipt no. 45
3. 14 February 2001
2. 22 January 2001
1. S Dube
Exercise 6.2a
REGISTER OF REMITTANCES RECEIVED THROUGH POST
FROM WHOM RECEIVED
NATURE OF
REMITTANCE
(eg cheque)
NAME
ADDRESS
Ordinary
M Naidoo
Box 32 Zimbali
Cheque 877
01.02.08
Delivery
Educ Dept
Box 1A, PMB
01.02.16
Registered
01.02.22
Delivery
ABC Performers Box 64, Vryheid
AMOUNT
c
R
01.02.05
ABI
PURPOSE
FOR WHICH
RECEIVED
SIGNATURE
OF OFFICER
OPENING
POST
SIGNATURE
OF OFFICER
TO WHOM
HANDED
OVER
Fees
75
00
J Twala
Cheque
Salary
5000
00
J Twala
Cheque
Fund-raising
250
00
J Twala
K Patel
Tuckshop
675
00
J Twala
K Patel
Box X204, Freet Cheque
K Patel
SIGNATURE
NATURE OF OF OFFICIAL
CHECKING
DISPOSAL
RECEIPT NO. REGISTER
AND DATE
Receipt 101
A Buthelezi (Ed)
Receipt 144
Receipt 160
V Singh
01-02-09
V Singh,
01.02.16
V Singh,
01.02.23
144
Exercise 6.1b
HOW
RECEIVED
(ORDINARY,
DATE
REGISTERED
RECEIVED
or
DELIVERED)
answers: Exercise
6.1b
Exercise 6.2b
DISTRIBUTION REGISTER
DATE
RECEIVED
RECEIPT
BOOK NO
FIRST
RECEIPT
NO
01-01-22
1
001
200
K Smith
01-01-23
2
201
400
R Patel
01-01-23
3
401
600
V Georgiou
01-01-24
4
601
800
F Salamades
01-01-24
5
801
1000
H Buthelezi
01-01-25
6
1001
1200
L Marnewick
01-01-25
7
1201
1400
L Dube
01-01-25
8
1401
1600
A Chanza
01-01-29
LAST
RECEIPT
NO
CHECKED
BY
TO WHOM
ISSUED
SIGNATURE
OF
RECEIPIENT
DATE
ISSUED
9
1601
1800
S Ndimande
01-01-29
10
1801
2000
B Brown
01-01-29
145
answers:
Exercise 6.2b
SIGNATURE
SIGNATURE & DATE OF
DATE
OF
CHECKING
RETURNED
PRINCIPAL OFFICIAL
Exercise 6.4a
1. 15 x R1
answers:
2. Cheque 101
3. R1
4. 14 stamps left over
5. Priority sent to S Dlamini
3 x R1 stamps = R3
11 stamps left over
Exercise 6.4a
6.
F Xuma
5 x R1 = R5
7. 2 stamps left at end of month
8. 26 January and 02 February
9. R15 purchased
R13 used
R2 left over
146
Exercise 6.4b
POSTAGE STAMP REGISTER
QUANTITY CHEQUE
NO. or
OF STAMPS
DATE
PURCHASED PETTY
RECEIVED e.g 20 x R1
CASH
01.02.01
Balance
01-02-01
100 x R1
TOTAL
VALUE OF
STAMPS
R2.00
Cheq 136
R100.00
TYPE OF
POSTAGE
DATE
USED
NAME OF
RECEIVER
ADDRESS
VALUE
R
c
STAMPS
ON HAND
R
SIGNATURE
DATE OF
OF
OFFICER CHECKING
c CHECKING
01.02.05 Dept Educ
Ordinary
1
1
00
101
101 00
01.02.12
Priority
2
2
00
99
99
00
01.02.13 M Maxwell
Ordinary
1
1
00
98
98
00
01.02.20 Circular x30
Ordinary
30
30
00
68
68
00
ABI
SUMMARY
Opening stock of stamps (Value)
ADD Purchase of stamps (Value)
TOTAL
LESS Stamps used (Value)
Stamps on hand (Value)
147
answers:
NO. OF
e.g.
Ordinary, STAMPS
Priority,
USED
Parcel
Exercise 6.4b
R
R
R
R
R
2.00
100.00
102.00
34.00
68.00
V Singh
01.02.28
TELEPHONE REGISTER
DATE
TELEPHONE
NUMBER
xxx xxxx
01-02-09
xxx xxxx
01-02-19
xxx xxxx
PRIVATE
CALLS
DISTANCE
NAME OF
CALLER
SIGNATURE
OF CALLER
COST
R
c
29 kms
Mr Naidoo
58
4 kms
Principal
84
75 kms
Mr Boyes
3
RECEIPT NO.
(if applicable)
60
148
Exercise 6.5a
01-02-02
SCHOOL
FUND CALLS
answers:
Exercise 6.5a
Exercise 6.5b
1. The principal
2. The last day of the month.
3. Money received for telephone calls must be banked, so it must be recorded in
the Receipts Cash Book.
Section 7: Annual Financial Statements
Exercise 7.4
NAME OF BANK
Honest Bank
ACCOUNT NUMBER
063 785 432
TYPE OF INVESTMENT
One-year fixed deposit account
ORIGINAL AMOUNT INVESTED
R10 000.00
DATE OF INVESTMENT
1 January 2000
TOTAL INTEREST RECEIVED
R1 100.00
MATURITY DATE
31 December 2000
RATE OF INTEREST
11.00%
WITHDRAWALS SINCE INVESTMENT
None
CURRENT BALANCE OF INVESTMENT
R11 100.00
Exercise 6.5b / 7.4
J GWALA SCHOOL
STATEMENT OF INVESTMENT
AS AT 31 DECEMBER 2000
A certified copy of the investment account as at the close of the financial year, 31 December 2000 is
attached.
_________________________
TREASURER
________________________
PRINCIPAL
________________________
CHAIRPERSON,
GOVERNING BODY
_________________________
AUDITOR
answers:
We hereby certify that the above statement is, to the best of our knowledge, true and correct.
149
Exercise 7.6
EXCEL PRIMARY SCHOOL
answers:
STATEMENT OF DEBTS OUTSTANDING
Date:_______________
The following amounts are outstanding as at 31 December 2000.
DESCRIPTION OF DEBT
Exercise 7.6 / 7.8
1.
2.
3.
AMOUNT OUTSTANDING
School fees
20 learners at R50 each
Concert tickets:
10 tickets @ R20 (Mr Zondi)
5 tickets @ R15 (Mr Chetty)
5 tickets @ R5 (Mrs Smith)
Sale of uniforms:
2 ties @ R10
4 monograms at R5 each
TOTAL DEBT OUTSTANDING
R1 000.00
R200.00
R 75.00
R 25.00
R 300.00
R 20.00
R 20.00
R
40.00
R1 340.00
_________________________
PRINCIPAL
________________________
TREASURER
________________________
CHAIRPERSON,
SCHOOL GOVERNING BODY
_________________________
DATE
Exercise 7.8
1. Dispose
2. Dispose
3. Dispose of those older than 7 years. Keep balance on file.
4. Dispose of those older than 7 years. Keep balance on file.
150
Understanding School Governance
Index: Manuals 4 & 5
Manual
Page
A
Accounting records, duties of officer responsible for
Additional money, requests for
Administration fees
Allocation
budgeting for
notification of
use of
Annual Budget
Annual Financial Statements
Annual Bank Reconciliation Statement
Receipts and Payments Statement
Statement of debts outstanding
Statement of Investments
Stock-take Certificates
Audit
4
4
4
4
4
4
4
4
4
5
4
5
4
5
4
5
4
5
4
5
4
68
15
16
23-25
25
24
24
67
64-67
113
66
116
65
114
67
120
66
117
67
119
76
4
5
4
5
5
5
4
4
5
4
4
4
4
5
5
4
5
4
5
5
5
5
35
1,2
52
38
38
44
10
54
16,36
20
8
9
13
51
51
67
51
67
52
55
62
51
B
Bank account, opening
Bank and Cash Book Reconciliation
reasons for differences
step-by-step summary
Bank deposit book
Bank Statements
Banking difficulty
Basis of the financial system
Books of Account
Budgets
approval of
explaining
inclusions in
incremental and zero-based
monitoring
need for
i
n
d
e
x
Manual
preparation
projections for a year
when to draw up
who draws up
Page
5
5
4
5
5
54
65
67
51
52
4
4
4
4
4
5
4
5
4
4
5
4
5
4
5
4
5
5
4
4
4
4
4
5
5
10, 49
19,26,49
44
26
19
8-13
56
10,11
44
52
13
39
10,11
60
110-112
11
38
19
11
27
27
27
30
113
2
5
4
5
4
5
4
iv
23-24
5
11
21
76
4
4
5
7
14
53
C
i
n
d
e
x
Cash Books
checking
Cash Surpluses And Deficiencies
Checks, Departmental
frequency of
Cheques
issue of school fund
making safer
post-dated
prescribed and dishonoured
private
rules for writing
Collection sheets
Commitment register
Comparing bank statement with cash books
Computer records
Consumable stock
Contract
defaulting on a
Contractor, the school as a
Cost allocations
Criteria for good statements
Current account
D
Delegations
Departmental contributions
Depositing money
Direct deposit register
Direct deposits
Disposal of School Fund Property - Closure of Schools
E
Electronic banking
Exemptions, school fee
Expenditure
Manual
Extra duties and transport, payment of educators for
Page
4
20
4
4
4
4
4
4
4
4
4
4
5
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
5
4
13,38
13
15
14
16
16
15
15
36
37
iv
8, 19
68
19
38
9
9
7
9
7
8
59
29
29
29
30
30
29
32
33
37
52,53
58
5
4
4
4
4
4
87
63
63
48
64
57
F
Fees
compulsory or non-compulsory
discounts on, possibility of
exemptions
non-payment; admission and re-admission
payment, methods of
problems with payment
refusal to pay
Finance Committee
duties of
Finance Officer
duties of
formal appointment of a
Financial Administration
Financial Records
Financial responsibility at school level
Financial system
major features of
need for a uniform
origin of
Fund Raising for Welfare Organisations
Funding Norms and Standards
areas covered
areas not covered
basic principles
cost allocation categories
date of effect
determining the poorest learners
obtaining more information
Fundraising
and the budget
for School Fund Purposes - Accounting Procedures
H
Handing over
account records
certificates
of petty cash
stock matters
Hire Purchase and Credit Agreements
i
n
d
e
x
Manual
Page
I
Immediate banking, difficulty with
Imprest system
Income, generating (see also 'Budgets')
Instructions, general
Instructions, school fund
Investigation by the Secretary
Irregularities
4
5
4
4
4
4
4
20
67
21
78
35
77
77
4
69
4
4
4
4
4
9
38
39
38
39
4
4
9, 21, 24
8, 14
29-33
4
4
4
77
77
77
5
4
5
5
4
5
4
4
4
4
13,14
10, 51
26
26
45
67
46
47
48
48
L
i
n
d
e
x
Library
M
Management of finances
Methods of Payment
direct deposits
payments which may be treated as cash
private cheques
N
Non-Section 21 schools
Norms and Standards
O
Obligations
of persons entrusted with financial duties
of the Principal
P
Payment Advice Form
Payments Cash Book
supporting documents
Petty Cash
accounting from
checking and verification of petty cash
discontinuation of
financial year end
Manual
handing over of
lack of receipt
procedure
proof of payment
recording
Postal Services
register
Private Monies
Page
4
5
4
5
5
4
4
4
48
68
45
68
68
49
11
44
4
4
4
5
4
4
4
4
4
4
5
5
4
4
4
5
4
4
4
4
5
4
5
4
5
4
5
4
4
32
10
10,49-50
19
40-43
42
42
43
41
42
3
3,4,5
12
61
2
93
11, 60
11, 24
11, 39
10, 40
96
11
102
10, 43
93
10, 43
100
10, 43
11
4
5
4
4
4
11, 48
103
11
8, 79
32
R
Ranking schools for financial allocations
Receipt book
Receipts Cash Book
Receipts
alteration to
duplication of receipts
issue of class receipts
issue of
loss of original receipt
receiving money, procedure for
writing
Record books, obtaining
Recovery of Waste Paper
Registers
collection sheets
commitment
direct deposit
distribution
postal services
remittance
school fee
school fund remittance
stock (see also 'Stock' below)
stock on loan (See 'Stock' below)
telephone/facsimile
wages
Regulations determining the financial system
Resource targeting
i
n
d
e
x
Manual
Page
S
Safe custody and disposal of documents
i
n
d
e
x
School fund (See also 'monies', 'records', and 'use' below)
contributions to
departmental contributions to
payments from
School fund monies
account
accountability
bank overdraft
checking of
depositing of
planning
School fund records
auditing of
disposal of
maintenance of
retaining
School fund use
accounting for
investment
parent input on
planning for
School premises, use of to generate income
School's assets, trading in
Section 21 schools
advantages of Section 21 status
Services, problems with payment for
Signatories, identifying
change of signature
Sources of funds
Special purposes fund
Stock
Board of Survey
consumable items
marking items
on loan
register
report to the governing body
stock-take certificates
stock-take
storage, custody and care
tally cards
Surplus funds
4
5
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
5
4
5
4
4
4
5
4
5
4
5
4
4
5
5
5
5
4
5
4
39
123
7
37
23
54
35
35
18
36
45
44
17
10
76
75
64
18
17
18
18
17
17
21
21
21,23,24
24
27
2, 3
35
3
7
11, 49
11, 61
73
62
84
61
73
11
61
83
119
83
83
11
74-76
9, 18
Manual
Page
4
5
4
4
48,11
103
21
74
4
5
11
8
T
Telephone/Facsimile
Trading in school assets
Transport for school educational purposes
W
Wages register
Withdrawing money
i
n
d
e
x
The financial manuals are based on earlier versions produced by:
Mr Asogan Moodley
Mr Krish Gounden
Mr Pooven Govender
Dr Dawn Butler
Mr Glen Govindsamy
Mr Siphiwe Zulu
The assistance of Mr K Gounden and Mr G Govindsamy
is acknowledged.