Administrative Procedure 510

FINANCIAL ACCOUNTABILITY AND AUDITS

Background

The Superintendent believes that its financial affairs must be managed in a manner consistent with the trust placed in the Charter Board by the Minister and the Foundation members. Adequate accounting records and procedures for verifying those records through audits are seen as an integral part of the Charter Board’s operations.

Procedures

1. The Charter Board’s financial systems and records are subject to an annual external audit. The Board retains sole authority to appoint its auditors in accordance with the Education Act and Board Policy.
2. Charter Board and School accounts and accounting practices will be subject to internal or external audit at the discretion of the Secretary-Treasurer and/or Superintendent.
2.1 Periodic internal audits of School accounts are to be conducted to identify potential procedural non-compliance, weaknesses and areas for further examination. Such audits must specifically assess the effectiveness of administrative procedures in place by performing compliance testing and examining key controls.
2.2 School financial records may be subject to internal audit in the event of a change of school administration or school administrative assistant.
2.3 Special financial reviews may be conducted upon request by the Principal.
2.4 All computerized financial records and essential financial documents shall be on file and current for financial audit purposes, which include but are not limited to:
2.4.1 Contracts and Agreements,
2.4.2 Fund journal,
2.4.3 Fund account ledgers,
2.4.4 Bank statements,
2.4.5 Canceled cheques,
2.4.6 Cheque requisitions,
2.4.7 Duplicate deposit slips,
2.4.8 Numbered receipt books or approved substitute documents,
2.4.9 Invoices,
2.4.10 Other related source documents.
3. Accounting procedures will follow recognized accounting principles where these are not inconsistent with the requirements of Alberta Education.
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4. The Secretary-Treasurer will ensure that adequate control mechanisms are in place to guarantee the integrity of the Charter Board’s financial transactions and records.
4.1 Segregation of incompatible duties, such as purchase and payment, must be maintained in School operations.
5. Financial records of School funds will be maintained in accordance with the format prescribed by the Secretary-Treasurer.
6. The external auditor’s report will be discussed at a public Charter Board meeting.
7. On or before November 30 in each year, copies of the audited financial statements, the auditor’s report on the financial statements and any written communication respecting the systems of internal control and accounting procedures of the Charter Board will be submitted to the Minister.
8. All banking shall be carried out at a recognized financial institution.
9. Charter Board audited financial statements and annual budget reports will be made available on the School website.

References: Section 25, 26, 33, 52, 53, 55, 68, 137, 138, 139, 140, 141, 143, 197, 222 Education
Act Funding Manual for School Authorities Guide to Education ECS to Grade 12