School Bank Account System : Key Controls

1
School Bank Account System Key Controls

• Prepared by
• Sandwell MBC Audit Services Division
• November 2004

2
Presenter

• Andrew Poulton - audit manager

3
Agenda

• To inform you of the key control issues you will
  need to address when operating a bank account

4
Payments are appropriately authorised

• Account signatories
• Supporting information
• Checking procedure
• Blank Cheques

5
Control is exercised over cheque stationery

• Cheque Register
• Cheque Security

6
Regular payments are adequately controlled

• Approval of Transactions
• Mandates

7
Access to the Account is Controlled

• Credit Cards
• Internet Banking
• Telephone Banking

8
Prime records can be retrieved

• Prime documents to be retained at the school
• Paid invoices
• Copy remittance advice
• Petty cash receipts
• Cancelled cheques
• Bank statements
• CB12 forms
• Cheque counterfoils
• Filing system

9
Accuracy of transactions is confirmed

• Reconciliation of the Accounts

10
Investment of surplus funds is subject to
safeguards

• Investment location and period
• Risk

11
Petty Cash Imprest is controlled

• Imprest size
• Reconciliation

12
Where to Get More Information

• Scheme for Financing of Schools (April 2003
  edition) Appendix E
• Audit Services Division
• Andy Poulton (Audit Manager)
• 0121 569 3760 andrew_poulton_at_sandwell.gov.uk
• Louise Bennett Senior Auditor
• 0121 569 3758 louise_bennett_at_sandwell.gov.uk

13
Any Questions?