| 1. |
All educational institutions of the WCED must, in accordance with Section 42 and 43 of the South African Schools Act, 1996 (Act 84 of 1996) as amended (SASA), submit audited financial statements to the Head of the Department annually within 6 months of the end of the financial year, which ends on 31 December. |
| 2. |
As it can be a time-consuming process to obtain audited financial statements, you are hereby reminded to make arrangements for the drawing up and auditing of the statements. The statements must reach the Department not later than 30 June. |
| 3. |
Your attention is drawn to Circular 27/2001 as well as the guidelines for financial statements as stated in Part I of the Manual: Basic Financial System for Schools in which the requirements for the appointment of an auditor appear. Your statements must include the following documents and/or information (examples are available on request): |
| 3.1 |
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Income and Expenditure Statement (Receipts and Payments Statement): 1 January - 31 December. |
| 3.2 |
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Balance Sheet as at 31 December (p. I.16 Manual). |
| 3.3 |
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Bank Reconciliation Statement as at 31 December (p. I.9 Manual). |
| 3.4 |
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Statement of Investments (p. I.11 Manual). |
| 3.5 |
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Asset Verification Control Certificate (Stock Control Certificate) (p. I.13 Manual). |
| 3.6 |
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Statements of Outstanding Debts (p. I.15 Manual). |
| 3.7 |
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Certificate in terms of Section 38(1)(j) of the Public Financial Management Act, 1999 (Act 1 of 1999) (form attached). |
| 3.8 |
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Auditor’s report, which must include the following declaration by the auditor:
That he or she is acting in an independent capacity and has no financial interest in matters pertaining to the school except in the auditing of the school’s books. That the financial statements give a reasonable account of the financial affairs of the school. Proof of registration as an auditor in terms of the Public Accountants and Auditors Act, 1991 or proof of approval by the Governing Body and the WCED as required in terms of Section 43(2) of the South African Schools Act. Notification where necessary of poor or injudicious management of funds, any fundamental irregularities in terms of school fees, lack of accounting skills, etc.
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| 4. |
Please take note of the following important points: |
| 4.1 |
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Separate financial statements must be submitted for hostels (see par. 3). |
| 4.2 |
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Period of reporting is 1 January - 31 December. |
| 4.3 |
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An auditor’s report is compulsory. |
| 4.4 |
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Fixed property, which has reverted to the State, does not form part of the assets of the school and is thus not indicated on the balance sheet. |
| 4.5 |
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The WCED’s contributions must be specified separately (e.g. unscheduled maintenance, Norms & Standards allocation, Safe Schools, etc). |
| 4.5 |
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The keeping of the register is the responsibility of the principal or the head of an office and/or designated supervisory personnel under his. |
| 4.6 |
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Total expenses for LSM (Learning Support Material) must be specified. |
| 4.7 |
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Total school fees received must be specified separately. |
| 4.8 |
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Complete details, per item, must be supplied with regard to sundry income and expenses. |
| 4.9 |
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Only the prescribed Asset Verification Certificate (Stock Control Certificate) and not the full assets register must be submitted. |
| 4.10 |
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All documents as requested in paragraph 3 must be submitted. With regard to debts outstanding and statement of investments, nil reports must be submitted. |
| 4.11 |
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If the person who does the audit of your school’s records and statements is not a registered auditor in terms of the Public Accountants’ and Auditors Act, 1991, such person must be approved by the WCED as your school’s auditor (refer Section 43(1) and 43(2)(b) of the South African Schools Act). |
| 5. |
Complete annual financial statements must be submitted to:
Directorate: Budget Management
Room 718
Western Cape Education Department
Private Bag X9114
CAPE TOWN
8000
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| 6. |
Your co-operation will be appreciated. |
SIGNED: A.J. VAN NIEKERK
HEAD: EDUCATION
DATE: 2003:02:12
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