Business Administration AP 512: Cash Management

Background

During the normal course of activities, Division staff will occasionally collect money from students or parents for the purchase of various materials or items. Accordingly, the potential to have substantial cash in schools does exist. An effective cash management system in schools minimizes the potential for loss, theft or misappropriation.

Procedures

1. The Principal is responsible for establishing and implementing cash management procedures for the school, including appropriate record keeping.
2. The Principal is responsible for ensuring that required school bank accounts are established and that cash collected in the school during the course of the day is secured in the school safe or deposited before the close of the banking day.
   1. Staff members who collect money in the course of their duties shall deposit such money with the Administrative Assistant/Accounting Clerk for safekeeping.
   2. Each Principal may maintain one bank account in the name of the school to which all monies received (except Students’ Council money) shall be deposited. Signing authority is to be vested in Principal, Vice Principal, and /or Administrative Assistant/Accounting Clerk, Associate Superintendent, Business and Finance Supervisor the Director of Business Services.  Alternatively, the School can deposit to the Division bank account and code funds to the appropriate budget.
   3. All monies received at the school shall be receipted on a Division receipt. This includes student fees but does not include monies collected directly by the Students’ Council.
   4. Money collected will be deposited directly into the school account in a timely manner.
   5. Accounting journals shall be kept for cash receipts and for cash payments.
   6. One copy of all receipts shall be forwarded to the Division Office at the end of each month.
   7. All payments shall be made by cheque or Division credit cards as per AP 515: Purchasing.  All refunds shall be made by cheque..
   8. Within two weeks of receipt of a bank statement, a bank reconciliation shall be prepared and submitted to the Accounting Supervisor.
3. Normally, sums of money in excess of one-hundred dollars ($100) will not be left in the school overnight, unless placed in the school safe.
4. Cash is not to be left in unlocked desks or unsecured areas of the school either during the school day or after hours.