Financial decisions

The SGB must, establish a finance committee, which is responsible for drafting a water-tight finance policy to ensure that the financial management and all financial decision with regard to the school fund never incurs suspicion. The treasurer (or even the chairperson of the SGB) should ensure that there are monthly reconciliations of detailed monthly bank statements against procedurally correct, budgeted purchases and payments with appropriate levels of origination and approval. Such transactions should be tested against laid down financial and other policies and procedures. The SGB must prepare a budget each year according to guidelines determined by the MEC, which shows the estimated income and expenditure of the school for the following financial year. Before this budget is approved by the SGB, it must be presented to a general meeting of parents convened on at least 30 days’ notice, for consideration and approval by a majority of parents present and voting. Visit www.fedsas.org.za for a check list for public schools’ budget process.