School Committee Accounts: Common Mistakes and Checklist

School audit problems rarely come from dishonesty. They come from small habits: a voucher without a bill, a grant spent on the wrong item, a bank balance nobody checked. This article lists the mistakes we see most often, then a monthly and yearly checklist for the committee, and a short generic example. It concerns record keeping and does not replace advice from your education unit or auditor.

Nine common mistakes

1. Vouchers without bills. Payment is made on trust and the proof never arrives.
2. Grants mixed together. A grant for one purpose pays for another and the balance cannot be shown.
3. Cashbook written in batches. Entries are made weeks later from memory.
4. No bank reconciliation. The book and the bank have drifted apart and nobody knows why.
5. Spending without a committee decision. Large items are paid on the head teacher's word alone.
6. Cash kept at school for long. Money sits in a drawer and shortfalls are blamed on staff.
7. One person doing everything. The same person collects, records, pays and reports.
8. Salary sheets not signed. Payment cannot be proved at audit.
9. Assets not registered. Furniture and equipment bought are not listed, and loss is not noticed.

Monthly checklist for the accountant and head teacher

• Cashbook and bank book entered up to date.
• All vouchers numbered, signed and filed with bills.
• Cash counted with a second person and signed.
• Bank statement collected and reconciliation prepared.
• Salary sheets signed for staff paid from school funds.
• Grant heads reviewed for balance and conditions.
• Asset and stock register updated for purchases and issues.

Checklist for the committee

When	Task
Each meeting	Read the income and expense summary and the bank balance, and approve large spending with a numbered decision.
Quarterly	Compare spending against the budget and decide on changes.
Quarterly	Review the cash count and reconciliation reports signed by the accountant.
Before the year end	Check that each grant is used for its purpose and prepare any utilisation report.
After the year end	Arrange the audit, respond to findings and present accounts to the community.

A short generic walkthrough

Imagine a community school with a local-level grant for classroom repair and a smaller school fund. The committee decides, with a numbered minute, to repair two rooms. The accountant opens a head called classroom repair and records the grant as income. The contractor is paid in two instalments, each with a voucher referencing the decision, the bill and the signatures of the head teacher and the treasurer.

At the end of the month the bank reconciliation shows one cheque not yet presented, listed on the reconciliation. The committee summary shows the repair head with money received, money spent and the remaining balance. Later, when the local level asks how the grant was used, the accountant prints the head ledger with vouchers attached in a few minutes. The amounts are not given because the example is generic; the pattern of decision, voucher, bill and head is what protects the school.

Why committees fall into these habits

Committee members are volunteers with jobs and families. They sign what the head teacher brings, trust the accountant and attend meetings when they can. This goodwill is valuable, but it makes controls easy to skip. The remedy is to make the controls short and routine: a one-page summary at each meeting, a quick look at the bank statement, a standing item to approve large payments. A treasurer who spends twenty minutes a month checking the reconciliation and the voucher file prevents far more trouble than one who reads a thick report once a year.

New members also deserve a short orientation. Explain the heads, the grants, the signing rules and where the records are kept. When members understand the basics, they ask better questions at meetings and the accountant feels supported rather than alone.

Simple rules that prevent trouble

• No payment without a voucher and a bill.
• No spending from a grant outside its purpose.
• No large payment without a recorded decision.
• No cash kept at school beyond the agreed limit.
• No month closed without a bank reconciliation.
• No entry changed without a reason and a name.

How software makes the rules easier

The WebsNP community school accounts software numbers vouchers, keeps grant heads separate, shows a running bank balance and logs changes by user. These features make the rules the default path. For complete record handling of letters and decisions, see darta chalani software.

Your next step

Print the monthly checklist and ask the accountant to complete it at the next month end, then discuss the gaps at the committee meeting. When you are ready to see the routine in a system, message us on WhatsApp for a demo with your own heads.

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