Administrative Procedure 511
School Generated Funds
The Principal or designate is responsible for the management of school accounts. To ensure that appropriate controls and reporting is in place for the maintenance of School Generated Funds; the following procedures have been developed.
All School Generated Funds are monitored by the Division Education Center, Financial Services.
1. Acquisition of Capital Assets
These assets represent a significant investment utilizing the funds raised by the community.
1.1 All purchases of Capital Assets as defined in the Site Based Management Manual are to be made through the Superintendent or designate.
1.2 Mandatory school fees from the School Generated Funds are to be submitted to Division Education Center, Financial Services.
2. Payments to Individuals for Services, Labour, or Scholarship
Payments to individuals for labour, services primarily of labour, or scholarships are to be appropriately reported to Revenue Canada by the Division.
2.1 Payments to Students
2.1.1 An annual report for the preceding calendar year is to be submitted to Division Education Center, Financial Services..by January 15 of each year for each student who has received total payments in excess of $500.00, in order to aid the preparation of the Canada Revenue Agency reporting requirements.
2.1.2 The report is to identify:
Full name of student;
Total amount received between January 1 and December 31;
Student’s Social Insurance Number (if available);
Address of student; and
Reason for payment or work performed.
2.2 Payments to Non-students
2.2.1 Individuals are subject to the normal hiring procedures for labour purposes and regular time sheets are to be submitted to the payroll department.
2.2.2 No payments are to be made from School Generated Funds to individuals for the supply of labour or services, regardless of whether the payment is listed as an honorarium or as wages.
3. Purchases of Supplies and Services utilizing Divisional Funds
3.1 When a cost-sharing project is undertaken utilizing funds administered by the Division and School Generated Funds, all bills are to be submitted to the Division Education Center, Financial Services.
3.2 The contributions from other sources are to be submitted to Division Education Center, Financial Services.
4. Financial Reporting of School Generated Funds to School Councils
4.1 An annual written report is be presented to the School Council on School Generated Funds and shall include the following information for each fund or subgroup for each bank account:
4.1.1 A description of the fund or subgroup;
4.1.2 Mandatory fees charged (if any)
4.1.3 A description of the fundraising activities undertaken during the year;
4.1.4 The total amount of funds raised;
4.1.5 A description of the uses of the funds;
4.1.6 The total amount of funds dispersed;
4.1.7 The surplus (deficit) of funds;
4.1.8 The opening balance of the fund;
4.1.9 The transfers to/from other funds;
4.1.10 The final balance of the fund; and
4.1.11 A description of how the surplus funds will be utilized.
An example of the format required is included in the Site Based Management Manual.
4.2 The financial report of the School Generated Fund is subject to audit by the internal and external auditors.
4.3 The report is to cover the year ending August 31.
4.4 Each page of the report must clearly state “This report has been released without audit”.
4.5 This Report must be filed at Division Education Center by November 30.
4.6 A cover page should be attached with the following information:
4.6.1 School Name;
4.6.2 “Report of School Generated Funds”;
4.6.3 “Year Ending August 31, 20xx”; and
4.6.4 Signature of the Principal.
5. Financial Reporting of School Generated Funds to Division Education Center
5.1 Each school is required to report to Division Education Center, Financial Services by September 15 the results of School Generated Funds activities for the year ended August 31.
5.2 The report format is to be specified by the Secretary Treasurer or designate by April 30 of the preceding year.
5.3 The report is to be supported by:
5.3.1 Copy of the bank statement, pass book or deposit certificate for each account
5.3.2 The reconciliation for each bank account or deposit certificate to the School’s general ledger. An example of this report is included in the Forms Manual.
6. Investment of School Generated Funds
6.1 Surplus funds are to be invested in instruments consistent with Section 5 of The Trustee Act and further limited to by this Administrative Procedure:
6.1.1 Savings accounts, chequing accounts, term deposits, guaranteed investment certificates of a Canadian Chartered Bank, Alberta Treasury Branch, or Alberta-based Credit Union.
6.1.2 All investments must be held in Canadian Funds only.
Reviewed: December, 2011
Next Review by: December, 2016
School Act Section 60, 61, 147
Trustee Act Section 3, 5
Policy 11 Delegation
AP 510 School Accounting System
AP 512 Student Union Funds
AP 513 Petty Cash
AP 514 Cash in School Buildings