Financial management - information for Boards
The role of the board is to identify the school’s education priorities, to develop a budget that addresses these priorities, and to monitor and report on this expenditure.
Collectively, all members of a school board are accountable for the funding and other resources allocated to the board.
A regular financial management report to the board will provide:
- income and expenditure accrued for the current year to date (especially important for mid-term reports)
- progress on any planned or underway capital expenditure (ie property, ICT purchases etc)
- a financial forecast to the end of the year
- banking staffing usage year to date and planned usage for the remainder of the year.
The following questions will assist your board to ensure that the school finances are being managed effectively:
- What are the school’s priorities for this year?
- Does the board know that all income and expenditure has been properly accrued for the report (especially important for mid term reports)?
- Are capital expenditure purchases reported separately from the regular financial reports?
- Does the financial report provide a forecast for the end of year?
- Is the school on track to meet the budget?
- If the forecast is indicating that the school is not on target to meet budget, what steps is the board taking to rectify the outcome?
- Does the board know what the status of banking staffing is - under or over used?
- Is the board clear on the impact of banking staffing?
- Does the board have a clear understanding of the cost of both teaching and non-teaching staff that is being expensed to the operations grant?
Support for schools
The Ministry has a monitoring and advisory role. Each school's audited financial statements are reviewed, and we may ask for explanations if there is poor liquidity or financial performance, or net assets have reduced.
The Ministry has regional financial advisors who are experienced in schools' financial matters and can provide advice and support.
You may also find the annual report helpful for when you are preparing your annual report.
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