FINANCIAL MANAGEMENT INTERNAL CONTROL PROCEDURES IN SECONDARY SCHOOLS PRESENTED DURING THE INDUCTION OF NEWLY APPOINTED PRINCIPALS HELD AT NOBLE HOTEL, ELDORET BY MURAYA KARIUKI SNR AUDITOR MOEST DISTRICT SCHOOLS AUDITOR MALINDI

INTERNAL CONTROLS ensuring that the school maintains the recommended bank accounts. main,tuition and operations banking all revenues collectedin the institution before spending. ensuring that budgets are prepared,discussed and approved prior to implimentation in the preceeding year.

INTERNAL CONTROLS ensuring that all receipt books are stamped and registered in the deo’s office and are recorded in the counterfoil receipt book register. authorising all payment vouchers and contract agreements. checking daily revenue collections from the receipt book and signing against the daily revenue breakdown analysis.

INTERNAL CONTROLS ensuring that only one receiptbook is in use at a time. checking the cash book periodically to confirm whether it has been updated. making sure that trial balances are prepared at every end month and submitted to the relevant offices by 15 th of the ensuing month.

INTERNAL CONTROLS appointing the relevant procurement committee in writing as per the procurement regulations;ie tender committee, inspection commiitee,evaluation comittee,infrastructiure committee. making sure that all items delivered to the school are accompanied with delivery notes and are promptly entered in the relevant stores ledgers.

INTERNAL CONTROLS ensuring that tender committee minutes are properly written and filed. ensure that all additional levies charged by the school are approved by the deb. organising bog meeting to discuss and approve annual budgets. insitute measures to ensure smooth budget implimentation and follow ups.

INTERNAL CONTROLS directing that the statutory deductions i.e. nssf,nhif,paye are remmitted in time to avoid penalties ensuring that imprests are surrendered promptly after the return of official journeys or task completion

INTERNAL CONTROLS undertaking one development project at atime before embarking on another one. enuring books of accounts are submitted for audit by 30 th january of every year(it’s the responsibility of the school to prepare financial statements ie income and expenditure and balancesheet).

IMPORTANCE OF A TRIAL BALANCE acts as a tool for expenditure control controls spending as per votehead helps management gauge the schools financial position helps monitor the flow of funds in and out of the institution

TRIAL BALANCE DISTRIBUTION permanent secretary district education officer county director of education district schools auditor(hand delivery) tsc unit school copy

Emerging trends Ensure that working budgets are available Expenditure to be pegged on the budget allocation Use uf budget as a tool of expenditure control Funds received for specific accounts to be accounted for in those accounts Ensure 60% collection of fees in first terms Inter account transfer between tuition account discouraged

Emerging trends Ensure that inter account transfers from main account and operations account have reasons for transfer,and balanced at the end of the year, Transport and subsistence to be accounted for using a specified schedule and a bog resolution minute Pta funds to be used wholly for development as per budgets

Emerging trends Control over commitment in creditors. Have qualified personnel manning core depts. Use trial balance as a monitoring tool, Imprest system to be streamlined and prompt surrender adhered to. Onsite audit of books of Accounts launched. All schools to have service gratuity account and transfer funds for P/E as it is received from MOE.

Emerging trends Bank overdrafts not allowed in school. Full disclosures of bank accounts operated by the school. Involve the PTA in the signing of cheques. Minimum of three bank signatories with principals sign mandatory. Support training of bursars and accounts clerks for better accounting processes.

Emerging trends Daily transport and subsistence schedule format S/N O DATENAMEDETAILSTSC/IDAMOUN T SIGN

…… THE END…… GOD BLESS YOU GOD BLESS KENYA