Experience Sharing by School Audit Section

1
Experience Sharing by School Audit Section
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Statutory Requirements(Education Regulations 64)

• The Supervisor of every school shall-
• keep proper accounts
• make the accounts and any vouchers relating to
  the accounts available at all reasonable times
  for inspection by the Director or any inspector
  of schools
• retain the accounts and vouchers for a period of
  not less than 7 years

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Key Work of School Audit Section

• Evaluation of the accounting operations and
  internal controls
• Assessment on compliance with Codes of Aid and
  circulars/guidelines issued by ED
• Provision of field advice on school finance,
  accounting and internal control matters

4
Experience Sharing

• OEBG Expenditure Budget was not prepared
• Collections from students were deposited into
  bank account not in the name of the school
• Books of accounts and registers were not
  maintained.

5
Experience Sharing

• Prior approval was not obtained for various
  trading activities
• Leave and PF records were not properly maintained
  and kept up-to-date
• Surplus funds temporary unused were not placed on
  fixed deposits/savings account

6
Experience Sharing

• Records of approval by SMC were not maintained
• Hiring charges received from hiring of school
  premises were not split between the General Funds
  and the School and Class Grant
• Bank reconciliation statements were not prepared

7
Experience Sharing

• Loan register for portable equipment was not
  maintained
• Authorized signatories of the schools bank
  account were outdated
• Quarterly return on donation was not prepared

8
Experience Sharing

• Paid vouchers and invoices were not stamped with
  the word PAID
• Write-off or adjustment to the Fixed Assets
  Register was not authorized by the Principal
• Cheques were not signed jointly by the Supervisor
  and one registered manager

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Experience Sharing

• Employers MPF contribution was not charged to
  the grant concerned (other than the Salaries
  Grant and the Administration Grant)
• Parents were not consulted/majority of parents
  consents were not obtained prior to the
  collection of charges for non-standard items
  within the approved ceiling of 300 pppa

10
Experience Sharing

• Both the supply teacher salaries grant and
  substitute teacher grant were claimed by a school
  for the same period during the sick leave of a
  teacher
• A new school had not secured insurance cover
  under the Block Insurance Scheme
• Cheques pre-signed by the Supervisor

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Experience Sharing

• A supplier has been asked by a school to issue
  six invoices (each below 30,000) on the same day
  for the purchase of ten computers of the same
  model
• A school claimed supply teacher salaries grant
  for three days but the supply teacher worked for
  two days only

12
Experience Sharing

• Loan to staff for tax payment
• CEG was used to employ regular staff who count
  towards the permanent staff establishment or to
  pay staff for taking up extra responsibilities
• Office decoration and minor renovation work was
  charged to the Composite Furniture and Equipment
  Grant

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Guiding Principles - Internal Control

• Clear organizational structure defining authority
  and responsibilities
• Code of ethics for staff involved
• Supervision
• Documentation
• Review

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Guiding Principles - Procurement

• Fair and competitive basis
• Ensure best value
• Avoid criticism for malpractice