Ppt for ministry of education

1. Policy and legislative framework
This presentation is guided by the following :
a) National Policy on education(1996)
b) Government Decentralization Policy(2016)
c) Public Finance Management Act, 2018
d) Public Finance Management General Regulations, 202
e) Accounting and Financial Procedure Manual
f) Stores regulations
g) Zambia Public procurement Act
h) Ministry of Finance Treasury and Financial Management Circulars

2. 1. GOVERNANCE STRUCTURE
Composition of the School Finance Committee (SFC)
a) Chairperson, Head teacher;
b) Senior teacher, Primary school (signatory);
c) Head of department, Secondary school (signatory);
d) Parent, preferably the chairperson of the PTA; S
e) School bursar (a teacher selected from among the teachers) or the school
accountant;
f) Learners (one girl and one boy, preferably Head boy and Head girl);
g) PTA treasurer (who is usually a parent); P
h) Prominent member of the community (May not be a parent of a child in the school).
i) Vice Chairperson – Elected among members

3. GOVERNANCE STRUCTURE, CONT’D
Mandate and responsibilities of the SFC
1. Oversee the school’s finances
2. Approve :
• Annual School Budget,
• Quarterly Expenditure Plan,
• Termly Financial Report,
• Annual School financial report,
• Unforeseen Expenditures

4. GOVERNANCE STRUCTURE, CONT’D
Regular meetings of the SFC
1. school finance issues at least once per term
2. approve the annual school budget.
3. approve the school financial reports

5. 2. Mandate and Responsibilities - School
Bursar/Accountant, Headteacher
Rule 5 - Accountant/School Bursar
1. School to have either:
Accountant seconded by Accountant General
Or
Bursar appointed by the SFC from among the teachers
2. Main Mandate - implement the approved budget by the SFC

6. Mandate and Responsibilities - School
Bursar/Accountant, Headteacher, Cont’d
Rule 6 - Headteacher
Sub-warrant holder for the school,
authorisation of all payments.
Transferred , Handover to another Headteacher

7. 3. Annual school budget
Rule 7: Purpose of the annual school budget
Overview of anticipated expenditure and Resources from which this
expenditure will be paid from.
Rule 8: Sources of the school budget Funds
• School grants from Ministry of Finance;
• School fees (relevant only to secondary schools offering Grades 8-12);
• Fundraising activities organised by learners, teachers, school
management and school organisations e.g. PC, SCP, PTA;
• Funds from government cooperating partners; and
• Other revenue from donations

8. Annual school budget, Cont’D
Rule 9: Government school grants
Schools shall receive grants from the MoF.
These grants are transferred directly into the school’s bank
account at the beginning of each term.

9. Annual school budget, Cont’D
Rule 10: School fees
• School fees applicable for learners in secondary schools-abolished
(Grades 8 to 12).
• Pupils in primary education (Grades 1 to 7) and Early Childhood Centres
shall by law not be charged school fees.
• The PTA may determine the level of the school fee for each school
year- abolished.
• The Permanent Secretary in MoGE shall approve the level of the
school fee-abolished
• The school bursar shall ensure that ensure to issue receipts upon
payment of school fees (see Template 15). abolished
• The school fees shall be receipted and banked in line with the Public
Finance Act.-abolished

10. Annual school budget, Cont’D
Rule 11: Permitted uses of the school budget
The school budget shall only expended as approved by the SFC
1. Educational expenses;
2. Remuneration of some primary school support staff; and
3. Approved specific non-educational expenses.
Rule 12: Eligible educational expenditure
The expenditure allowed:
• Purchase of books for teachers and learners;
• Purchase of chalk, pencils, chart paper and other materials used to support teaching and
learning;
• Purchase of attendance registers, exam registers, learners’ report cards and other documents
for record keeping;
• Educational and administrative costs such as exchange visits and travel to zone centres by
teachers and the school managers;
• Performance related incentives to staff such as awards during labour day;

11. Annual school budget, Cont’D
• Eligible remuneration of support staff in primary schools.
• The following types of remuneration of school support staff are allowed:
• Salaries for support staff in primary education who are not on the
government payroll e.g. cleaners, guards and other ancillary staff;
• Labour costs for short term workers. Rule 13: Eligible non-educational
expenses The following types of non-educational expenses are allowed:
• Purchase, replacement or repair of office equipment and materials;
• Payment for labour and materials for repairing classroom doors, windows,
ablution blocks and toilets;
• Support to the functioning of the SFC and SCP, e.g. photocopies of meeting
minutes, training materials to support capacity development, transport
refunds for learning visits to nearby well-performing schools/centres of
excellence

12. Annual school budget, Cont’D
Rule 13: Eligible non-educational expenses
• Purchase, replacement or repair of office equipment and
materials;
• Payment for labour and materials for repairing classroom
doors, windows, ablution blocks and toilets;
• Support to the functioning of the SFC and SCP, e.g.
photocopies of meeting minutes, training materials to
support capacity development, transport refunds for
learning visits to nearby well-performing schools/centres of
excellence.

13. Annual school budget, Cont’D
Rule 14: Loans are not allowed
The school is not allowed to issue loans from the school grant.
Rule 15: Codes chargeable for expenditures and receivables
The applicable codes for expenditure and receivables shall be used when preparing the school
budget (see Annex 1).
These codes may change from time to time and any future changes will be published by the MoGE
or the MoF.
Rule 16: Preparation of the annual school budget
The school bursar and the head teacher (or deputy) shall prepare, in consultation with the SFC, the
draft annual school budget, using the template at Template 4.
The draft budget shall be presented to the AGM before the start of the school year.
Rule 17: Approval of the annual school budget
The AGM shall discuss (and if necessary adjust) and approve the annual school budget before the
start of the school year.

14. Annual school budget, Cont’D
Rule 18: Submission of the annual school budget to the DEBS
The head teacher shall sign the approved annual school budget and
submit it to the DEBS before 31st December.
Rule 19: In-year adjustment of the school budget
In some cases there may be a need to adjust the school budget
during the school year, due to, for instance, there being
considerably fewer resources than originally planned or a need to
make significant reallocations between types of expenditure. If
the adjustment is greater than 10% of an expenditure or revenue
category, the school management shall prepare and approve a
revised school budget in consultation with the SFC and in
accordance with the relevant procedures. An extraordinary AGM
is required to approve the revised school budget.

15. 4. Management of bank accounts and
petty cash
Rule 20: Bank accounts
Each school is encouraged to have two bank accounts; one for grants and one for the
other budget sources such as school fees and donations.
Rule 21: Opening of bank accounts and signatories
To open the bank accounts, the school management shall file a request to do so with
the Provincial Education Office (using Form 49 at Template 1).
The PEO will forward the request to the MoF for further approvals.
After receiving the appropriate approvals, the school management shall open the bank
account at a commercial bank.
Signatories of the bank account shall be:
• School head teacher;
• Bursar; and
• SFC vice-chairperson.

16. Management of bank accounts and
petty cash
Rule 22: Payments from school bank accounts
A withdrawal of funds to replenish the petty cash of the school, the
issuing of a cheque (see specimen at Annex 2) or the transfer of funds
to the account of a supplier all require the signatures of at least two of
the following signatories:
• School headteacher;
• Bursar; and
• SFC vice-chairperson.
A withdrawal of funds, issuance of a cheque or a bank transfer must be
recorded in the cashbook and relevant supporting documents such as a
cash receipt or an invoice shall be duly filed in accordance with the
guidelines for book-keeping.
No open cheques shall be issued to a supplier of goods and services.

17. Management of bank accounts and
petty cash
Rule 23: Maintaining petty cash
For the purpose of small payments of services or the
purchasing of goods, the school may maintain a ‘petty cash’ in
a secure location.
The petty cash is kept by the school bursar.
All cash transactions shall be duly registered in the cashbook
and proof of cash payments and receipts shall be filed in
accordance with the guidelines for book-keeping.

18. 5 Book-keeping
Rule 24: Cashbooks
The school is advised to maintain at least three separate cashbooks:
1. One cashbook for recording the transactions of the bank account into which the government school grant is disbursed;
2. 2. One cashbook for recording the transactions for the bank account into which school fees and other revenues are deposited; and
3. One cashbook for recording petty cash transactions.
Rule 25: Maintaining the cashbooks
The school bursar shall maintain the cashbooks.
All payments and receipts against petty cash and bank accounts shall be duly entered in the cashbook.
A cashbook template is provided (Template 2).
Cashbook accounting must comply with the following:
Entries to the cashbook must be made on a daily basis, without omissions, alteration or deletions;
The cashbook has all pages numbered sequentially;
The date and number of the page must be indicated at the top of each page;
The computed (sub) totals and balances shall be mathematically correct; and
The cash account balance should never be negative.

19. Book-keeping
Rule 26: Supporting documents for expenditure and receipts
Each transaction in the cashbook shall be numbered and shall have a supporting accounting
document such as an invoice, receipt, copy of agreements, payment voucher, goods received
notebook, etc. All accounting documents should conform to the highest standards in terms of
regularity, accuracy and integrity. Responsible officers should ensure that all documents are
numbered and filed chronologically.
Rule 27: Payment vouchers
All payment vouchers shall be issued for cheque payments only. Each payment voucher should
indicate the date, amount, purpose of the expenditure and signature of the person who receives
the payment. All payment vouchers shall be approved by the Head Teacher or designated
officer.
Rule 28: Payment of salaries and wages
Payment of school support staff such as security guards or casual workers, who are not paid
through the central government payroll, shall be paid their salary by the school directly. The
respective school support staff member or casual worker should sign a pay slip proving that they
have received their periodic salaries from the school. (A pay slip template is provided at
Template 6).

20. Book-keeping
Rule 29: Lesson planning note books and schemes of work
Every teacher should sign the stores ledger as evidence that they have
received the lesson planning notebooks and schemes of work that they
are entitled to. (See Template 11.)
Rule 30: Filing of financial and accounting documents
All accounting documents shall have a unique number and shall be filed
chronologically in a file which is used for this task only.
Chronological filing is based on the order in which transactions are
carried out (by day, week, month and year).
Rule 31: Correcting errors in the cash book
The cash book must NOT contain alterations or deletions.
In case of an error in the entry of a transaction, the correction is done
by reversing the entry.

21. Book-keeping
Rule 32: Checking the cash book
It is the responsibility of the headteacher (or deputy) to
check the cashbook on a weekly basis together with the
bursar.
Checking the cashbook includes considering the following:
• Are the relevant supporting documents available for all
entries and are the correct amounts entered in the cash
book?
•Are the calculated totals, sub-totals and balances
mathematically correct? and
• Is the actual amount in the petty cash equal to the balance
presented in the cashbook?

22. Book-keeping
Rule 33: Bank reconciliation
At least on a monthly basis, the school bursar shall verify the bank
balance and the bank transactions as presented on the bank
statement and check these against the record in the cashbook. (A
bank reconciliation template is provided at Template 3.)
Rule 34: Auditing the cash book and bank statements
The cash book and the bank statements shall be checked each
term by:
• A representative of the SFC who is not the bursar or the
(deputy) headteacher; and
• The DEBS. Upon demand the internal auditor based at the
provincial office and/or the standards officer/ school inspector
may implement appropriate checks and audits.

23. 6. Imprest accounting
Rule 35: Objective of imprest accounting
An imprest is a specified amount of money given in advance to an officer for
the purchase of goods or services, where the items are known but their exact
cost is not or where the supplier of a necessary item is uncertain.
As the purchase may involve travelling away from the station of work,
allowances may be given as an imprest.
Rule 36: Key principles of imprest accounting
To ensure proper management the following rules have to be applied:
• An imprest request should always be completed (see Template 7);
• All imprests issued must be recorded in the imprest ledger (see Template 8);
• Imprest retirement must be done within 48 hours of returning to station;
• An imprest must be paid back in full;

24. Imprest accounting
• Only one imprest can be held by any one officer at any time;
• An imprest not retired or acquitted within 48 hours of
return should be recovered from the officer’s salary;
• Any officer with an unretired imprest must not be paid
another imprest;
• A schedule of outstanding imprests (see Template 9) will be
prepared monthly by the bursar and submitted to the head
teacher for review;
• A schedule of outstanding imprests will be presented by the
end of each term to the SFC.

25. 7. Purchasing goods and services
Rule 37: List of goods and services required to be purchased
At the beginning of each term, the school bursar and the
head teacher (or deputy) shall together prepare the list of
goods and services required to be purchased (a template for
this is provided at Template 5).
This list shall be in line with the provisions made in the
approved school budget. The list shall be approved by the
SFC.

26. 7. Purchasing goods and services
Rule 38: Quotations for procurement of goods and services
Prior to the procurement of any goods or services, the
responsible officer in the school shall obtain three genuine
quotations from three suppliers. The officer shall select the
preferred supplier on the basis of a combination of price and
quality. The school bursar shall duly file the quotations
together with the justification for the selection of the
preferred supplier.

27. Purchasing goods and services
Rule 39: Waiver for three quotations
In situations where it is not possible to obtain three
quotations, for instance where there are not sufficient
suppliers available in the district, the responsible officer in
the school shall request approval from the SFC prior to the
procurement of the good or service.

28. 8. Stores management
Rule 40: Objectives of stores management
Procured goods should be managed in an efficient and cost-
effective manner, and the school’s management must provide
a reliable service to users at all times.
Rule 41: Requirements for physical storage of goods
All goods shall be stored in a secure place that can only be
accessed by authorised staff.

29. Stores management
Rule 42: Stores ledger
The bursar or stores manager (if appointed) shall duly record in
the stores ledger all goods received in store and all goods issued
from store. (See Template 11.) If applicable, relevant accounting
documents such as the goods received note and goods issuance
note shall be filed.
Rule 43: Stock-taking of supplies
Each term, the bursar or stores manager shall do a stock count
under the supervision of the head teacher.
All differences between recorded and actual quantities shall be
explained and presented in a stocktaking statement signed by the
bursar/ stores manager and the head teacher (see Template 12).
The stores ledger shall be updated accordingly.

30. 9.Management of fixed assets
Rule 44: Objectives of managing fixed assets
The objective of managing fixed assets is to ensure that all fixed
assets are physically maintained and kept in a secure, efficient and
effective manner in order to support to the delivery of
educational services to the learners.
Rule 45: Fixed assets register
The school bursar shall maintain a register of fixed assets (see
Template 13).
All assets must be given asset registration numbers and labelled or
engraved accordingly.
Each time a new asset is purchased/donated or otherwise
obtained, when an asset is sold or otherwise disposed, or when an
asset is moved from one location to another location, this shall be
promptly recorded in the register.

31. Management of fixed assets
Rule 46: Title documents
Documents of title, such as title deeds and vehicle registration
documents (white books), should be kept safely by the head
teacher.
Rule 47: Stocktaking of assets
Each term, the bursar and the head teacher shall jointly ensure
that a stocktaking of all assets in each office, class and other
space in the school shall be done.
Rule 48: Disposal of assets
The bursar or head teacher shall inform the DEBS if the school
wants to dispose of an asset. Any further guidance provided by
the DEBS shall be followed.

32. 10. School financial reports
Rule 49: Objectives of school financial reporting
The objective of financial reporting is to inform the SFC,
PTA and DEBS about the financial position of the school so
that they can provide oversight as well as advice on follow-up
action if required.
Also, the internal auditor and the standards officer/ school
inspector may use the financial reports for additional checks.
Approved financial reports also discharge the head teacher
and school bursar for the financial management decisions
they have made as these are reflected in the respective
financial reports for the respective period.

33. School financial reports
Rule 50: Preparation of financial reports
By the end of each term, the bursar and head teacher shall
together provide the following financial reports:
Income & expenditure statement (see Rule 50);
• Balance of bank accounts, petty cash and outstanding
imprests (Rule 51);
• 3. Stores stocktaking statement (Rule 42); and
• 4. Employee statement (see Rule 52).

34. School financial reports
Rule 51: Income and expenditure report
The bursar and head teacher shall together prepare the income
and expenditure statement (for which a template is provided at
Template 15).
This statement presents all actual receipts and expenditure
against the budgeted amounts.
The statement shall cover the period from the beginning of the
school year to date.
The relevant receipt and expenditure codes shall be observed (see
Annex 1).
The statement shall be signed by both the bursar and the
headteacher.

35. School financial reports
Rule 52: Statement of balances
The bursar and head teacher shall together prepare the statement of
balances, presenting the following:
1. Balance of each bank account;
2. Petty cash balance; and
3. Total amount of outstanding imprests.
Rule 53: Employee statement
Each term, the bursar and head teacher shall together prepare the employee
statement (for which a template is provided at Template 10).
This statement presents a list of all teaching and nonteaching staff that are
on the Government’s central payroll and have actually worked in the school.
The purpose of this list is to allow the DEBS and PEO to ensure that
appropriate wages and allowances are paid in a timely manner to teachers and
to identify any possible mismatch between actual number of staff and the
establishment.

36. School financial reports
Rule 54: Timely submission of reports
The bursar or head teacher (or deputy) shall ensure that all
financial reports and the staff statement are submitted to
the DEBS and the SFC not later than two weeks after the
end of each term.
Any delay may result in the suspension of the transfer of the
following term’s school grant from the MoF to the school.

37. School financial reports
Rule 55: Dissemination of financial reports
All financial reports generated by the school must be brought
to the attention of teachers, learners, parents and other
school partners by displaying them on the school notice board
so that they can be read by all.
The posted copies should be written in the local language of
the area. Copies shall also be distributed to the parents
during the AGM.

38. Financial Management Templates
1.Template 1-opening of bank accounts(accounting form 49, revised 2020
2.Cashbook
3.Bank Reconciliation
4. School Budget
5. List of goods and services to be procured
6. Monthly payslip-School guard/Casual worker
7. Application for imprest
8. Outstanding imprest schedule
9. Empoyee statement
10. Stores ledger
11. Stores stock taking statement
12. Fixed Asset Register
13. Annual Income and expenditure Report
14. General Receipt Book-Repblic of Zambia
15. Codes for budgeting and accounting
16. Specimen of the Cheque