Financial management skills of SGBs to be boosted

With the aim of ensuring that schools adhere to proper financial management, the South African Institute of Chartered Accountants (SAICA) has partnered with the Gauteng Department of Education’s Schools Governing Body (SGB) project. The proper financial management and governance is believed to be of benefit to both pupils and the community at large in public schools in the province.

SAICA initially had 15 schools in the pilot project that proved fruitful and has just added 30 more schools to the project. Randburg-based schools Northriding Secondary and Lion Park Primary are part of the 30 schools added to the project and their newly eleceted SGB members will be part of the project.

Part of the responsibility of SGBs is managing the financial resources of the school optimally. However, this area can be problematic, because some members of the SGB may not be equipped to handle this onerous task, while unscrupulous members could use funds for their own personal gain.

Through this project, SGB members will be equipped with the requisite skills to strengthen their ability to govern schools, especially in the areas of financial management and internal controls. In August 2014 SAICA appointed three chartered accountants from each of the ‘big five’ audit firms to train SGB members in this critical area.

It is clear that once there is financial accountability that meets Department of Education norms and standards, pupils and parents are virtually guaranteed to get value for money. Where schools lack financial management support, SAICA will provide the necessary expertise.

When the pilot project started, the 15 schools suffered from significant governance issues – there was a lack of financial management instruments such as financial policies, supply chain management policies, bank reconciliations, petty cash journals, fixed asset registers and cash flow statements – to mention but a few. In addition, many of the personnel were not familiar with the South African School Administration and Management System (SASAMS).

This SAICA-driven project established proper finance committees at schools with clearly defined roles and responsibilities. Furthermore, assistance was provided in terms of advice on compiling a budget, fundraising, investing surplus funds and drawing up financial statements. They also received training on the SASAMS system.

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