REFERENCE: | 22436 13/12/2/ B |
| ENQUIRIES: | MTW Williams | TEL: | 021 467 2000 | FAX: | 021 467 2996 |
CIRCULAR | : | 0007/2014 | EXPIRY DATE | : | NONE |
TO: | DEPUTY DIRECTORS-GENERAL, CHIEF DIRECTORS, DIRECTORS (HEAD OFFICE AND EDUCATION DISTRICT OFFICES), DEPUTY DIRECTORS, HEADS: IMG CO-ORDINATION AND ADVICE, CIRCUIT TEAM MANAGERS, IMG MANAGERS AND PRINCIPALS AND SCHOOL GOVERNING BODY MEMBERS OF ORDINARY PUBLIC SCHOOLS |
BRIEF SUMMARY: | Financial statements to be completed by 31 March and audited financial statements submitted by no later than 30 June each year |
SUBJECT: | ANNUAL AUDITED FINANCIAL STATEMENTS: 1 JANUARY TO 31 DECEMBER |
1.1 |
within three (3) months of the end of each financial year, i.e. 31 March, draw up annual financial statements in accordance with the guidelines determined by the Member of the Executive Council; and |
1.2 |
within six (6) months of the end of each financial year, i.e. 30 June, submit a copy of the annual audited financial statements to the Head of the Western Cape Education Department (WCED). |
2. |
The governing body is responsible for drawing up the annual financial statements and should then submit these documents to their auditor for auditing. Auditors must clearly show that they have mechanisms in place to ensure that they maintain a functional and healthy separation of duties in terms of the compiling and auditing of the financial statements. |
3. |
Upon receipt of the audited financial statements from the auditors, the governing body must hold a meeting to discuss the statements. The governing body must clarify issues, if any, with the auditors and thereafter adopt and sign-off the statements as correct. Auditors usually make provision in the audited financial statements for the governing body to sign-off. The governing body must submit a copy of the signed audited financial statements, which must include the management report of the auditors, to the district office on or before 30 June. |
4. |
Chapter I of the Manual: Basic Financial System for Schools (2nd Edition) contains guidelines for the drawing up of financial statements. |
5. |
Annual audited financial statements should consist of the following components:
- A statement of financial position: Balance Sheet;
- A statement of financial performance : Income Statement;
- A cash flow statement;
- Auditor report (including a management report which lists the concerns or control weaknesses by the auditor, if any); and
- Explanatory notes or schedules to the financial statements.
The governing body must ensure that the submitted annual audited financial statements contain all these components.
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6. |
The following documents must accompany the submission of the annual audited financial statements to the Department:
- Asset verification certificate;
- Bank Reconciliation as at 31 December;
- Statement of Investment/s or note to the annual audited financial statements;
- Statement of Outstanding Debts or note to the annual audited financial statements;
- Copy of last page of December's Bank Statement;
- Certificate of Sound Financial Management;
- Declaration of other accounts; and
- Certificate of Verification of Computerised Receipting (if available).
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7. |
The following items must be specified separately in the annual audited financial statements: |
7.1 |
Under Income:
- Norms and Standards allocation;
- Day to Day Maintenance;
- Municipal Services;
- School Fees; and
- Other WCED Transfer Payments (Projects).
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7.2 |
Under Expenses:
- Textbooks;
- Local Purchases;
- Municipal Services;
- Day to Day Maintenance; and
- Other WCED Transfer Payments (Projects).
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8. |
A separate Balance Sheet and Income Statement must be drawn up for a hostel. |
9. |
Kindly ensure that the content of this circular is brought to the attention of all concerned, including the school's auditor. |
SIGNED: PA VINJEVOLD
HEAD: EDUCATION
DATE: 2014:03:05
Grand Central Towers, Lower Parliament Street, Private Bag X9114, Cape Town 8000 Please quote reference numbers in all correspondence Employment and salary queries: 0861 92 33 22 Safe Schools: 0800 45 46 47
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