Handout C2 Internal controls: answer Is this statement true Statement Feedback to participants or If there is no one else available, Separating the approval and receipt of it is okay for the person who goods or services is an important internal approved the order of goods to control for purchasing. record them as received in the finance system. The procurement process should take the Even though it is known that 10 total cost of goods and services into purchases will be required for a account. This purchase should therefore product (valued at $3,000 each), consider the total value as $30,000 (i.e. it is okay for one written quote to 10 purchases of $3,000 each) and seek be sought on each occasion. three written quotes. True Most school councils have a finance Both the finance sub-committee Both the finance and the school council are (where it exists) and school responsible for reviewing the council review financial reports, and the financial reports. finance sub-committee recommends action to be taken to the council. An annual stocktake of all assets False In line with annual reporting of the on the asset register must be school’s financial accounts, a bi-annual conducted. stocktake of assets must be conducted. It is okay for the chair of the False The chair of the finance sub-committee finance sub-committee to be the cannot be the business manager. school business manager, as long as they are not an employee of the Department. False Council approves the budget before the start of each new year. An external The school council approves a auditor must audit the school’s financial budget three years. statements at least once every four years. True Payments, including made online, All payments require two must be approved by two signatories. signatories: the principal and a The business manager cannot be nominated councillor. a signatory.
Handout C2 Internal controls: answer Statement Is this statement true or Feedback to participants If there is no one else available, it is okay for the person who approved the order of goods to record them as received in the finance system. Separating the approval and receipt of goods or services is an important internal control for purchasing. Even though it is known that 10 purchases will be required for a product (valued at $3,000 each), it is okay for one written quote to be sought on each occasion. The procurement process should take the total cost of goods and services into account. This purchase should therefore consider the total value as $30,000 (i.e. 10 purchases of $3,000 each) and seek three written quotes. Both the finance sub-committee and the school council are responsible for reviewing the financial reports. True Most school councils have a finance Both the finance (where it exists) and school council review financial reports, and the finance sub-committee recommends action to be taken to the council. An annual stocktake of all assets on the asset register must be conducted. False In line with annual reporting of the school’s financial accounts, a bi-annual stocktake of assets must be conducted. It is okay for the chair of the finance sub-committee to be the school business manager, as long as they are not an employee of the Department. False The chair of the finance sub-committee cannot be the business manager. The school council approves a budget three years. False Council approves the budget before the start of each new year. An external auditor must audit the school’s financial statements at least once every four years. All payments require two signatories: the principal and a nominated councillor. True Payments, including made online, must be approved by two signatories. The business manager cannot be a signatory.
isg_financemanual.docx