LEGAL FRAMEWORK OF MANAGING SCHOOL FINANCES
The South African Schools Act (SASA)
Every school is a juristic person with legal capacity perform only such functions, obligations and rights outlined in this Act
SECTION 36 (School funds)
SGB can only perform specific functions as prescribed by the Act.
The Public Finance Management Act No. 1 of 1999
PFMA creates financial accountability based on assigning responsibility and performance management
Objectives of PFMA
Ensure all revenue, expenditure, assets and liabilities of those governments are managed properly
Regulate financial management in the national and provincial government
SECTION 2
Issues of securing transparency, accountability and sound management of revenue, expenditure, assets and liabilities of the institution the Act applies to is discussed
SECTION 45
Responsibilities of officials are outlined
An official is responsible for the management and safeguarding of the assets and management of the liabilities within
Must ensure that the financial management system and internal controls established for a department is carried out within the area of responsibility of that official
Responsible for the effective, efficient, economical and transparent use of finances
Must take appropriate measures to prevent, within that officials area of responsibility, of any unauthorised, irregular and wasteful expenditure.
Must comply with all the provisions of this Act, including any delegations and instructions according to Section 44
PFMA emphasises that financial management is the responsibility of managers and not only accountants
PFMA includes management of assets and liabilities within the financial management system
Education Laws Amendment Act (ELAA)
SECTION 38 ELAA (2005)
The SGB cannot pay a state employee Employed in terms of the Employment of Educators Act (EEA) or Public Service Act remuneration/benefits or any financial benefits
SGB can pay travel and subsistence expenses relating to school activities, but expenses cannot exceed those that would be payable to a public servant
SECTION 39 ELAA (2005)
Schools that fall in between quantile 1 and 2 will be regarded as no fee schools and will not be allowed to charge school fees
A resolution must provide for the amount of school fees to be charged; criteria and procedures for the exemption of parents who are unable to pay school fees etc.
These schools will be fully subsidised by the State
No school can levy and registration, administration or any other compulsory fee, except compulsory school fees
The school cannot charge different compulsory school fees based on curriculum/extramural curriculum within the same grade to a parent of a learner at that school
The MEC of each province must classify schools into quantiles and publish the list of schools in the Provincial Gazette
SECTION 16A ELAA (2007)
The principal of a public school represents the HoD in the SGB
The principal must prepare and submit to the HoD an annual report of the effective use of available resources
The principal must undertake professional management of a school and fulfil duties such as managing LTSM, safekeeping records and implementing of legislation
SECTION 58 ELAA (2005)
The HoD has the right to inspect an inventory of a public school.
No person may dispose any assets without the approval of the MEC
The assets cannot be attached to any legal actions taken against the school
SECTION 41 ELAA (2005)
The SGB may by process of law enforce payment of school fees by parents.
This can only apply if the parent does not qualify for school fee exemptions and school can provide a written notification to the parent, that the parent had failed to apply for an exemption
SECTION 156 ELAA (2005)
A school is a no-fee school if it has been placed in a national quantile or in a part of a quantile that has been identified by the Minister
SECTION 157 ELAA (2005)
The minister should annually determine the quantiles where schools may not implement compulsory school fees for the following year
SGB of public school must take reasonable measures within its means to supplement the resources supplied by the State to improve the quality of education in that school
SECTION 37 (School funds)
If a person lends money or grants an overdraft to the public school without the approval of the MEC, the state and school will not be bound by the contract of lending money or overdraft statement
The SGB must establish a school fund and administer it following the directions of the HoD
All monies received by the public school (school fees, voluntary contributions) must be paid into the school fund
The SGB must open and maintain a bank account
Money or other goods donated or received in by the public school should be applied in accordance with the conditions of such trusts
All assets acquired by the public school are the property of the school
The school fund, all proceeds thereof and all assets of the school can be used for educational purposes of the school or in connection of other public schools; the performance of the functions of the SGB or other educational purposes agreed between the SGB and HoD.
SECTION 30 (Financial committee)
SGB may establish various committees including an executive committee
Appoint persons who are not members of the SGB to such committees based on their expertise, but a member of the SGB must chair these committees
SECTION 32 (Minors on the SGB)
An SGB member who is a minor may not contract on behalf of a public school
They may not vote on any resolutions of the SGB that impose liabilities on the school or third persons
They incur no personal liability for any consequence for his/her membership in the SGB
SECTION 38 (Budgets)
The SGB must prepare a budget annually, according to the prescriptions of the Executive Council, which must show estimated income and expenditure for the following year
Before the budget is approved by the SGB, it must be presented to a general meeting of parents convened on at least 30 day notice, of approval of majority of parents present and voting
It is vital that a budget of a public school must conform to the standards set by the State for all public schools
FINANCIAL ACCOUNTING
SECTION 42
SGB must keep records of all financial transactions, assets and liabilities of the public school
SGB must draw up a financial statement no later than three months after the end of each financial year
SECTION 43
SGB must submit to the HoD, within six months after the end of the financial year, a copy of the records/ financial statements of the school
SECTION 44
The financial year of a public school begins on the first day of January and ends on the last day of December
FINANCIAL FUNCTIONS OF THE SGB
SECTION 20
To administer and control schools property, buildings/grounds/hostels etc.
Encourage parents, learners, staff members to render voluntary services at the school
Recommend to the HoD the appointment of educators and non-educator staff at the school
Allow reasonable use of school facilities for educational programmes not conducted by the school
SECTION 21
To maintain and improve the school's property and buildings
Purchase textbooks, LTSM, equipment for the school
Pay for services to the school
SGB of a public school must open and maintain a banking account in the name of the school
Reference
Mestry, R & Bisschoff, T.C. Financial School Management Explained. Third Edition. Cape Town: Pearson.
Glover, D & Levacic, R. (2007). Educational Resource Management. London: University of London.