School By-Law and Guidelines:
NWCS Financial Guidelines
Objectives:
To develop a set of coherent guidelines for the school on the non-profit operations of each of the following basis of accounting with accepted accounting standards and principles.
The guidelines would:
1. Describe each basis of accounting function in turn, elaborating on the existing work done by the responsible parties;
2. Give examples of the types of accounting function to be performed under each basis;
3. Describe the responsibilities of each accounting area; and
4. Outline key control mechanism (i.e., annual auditing process).
These guidelines will give guidance to the Board of Directors on ways to improve school’s financial position within the basis under which it is currently operating. It will be designed to assist the Board for making any financial related decisions. It can be revised and amended whenever it is needed.
The Board of Directors (guided by the By-Laws):
Oversees the school’s overall financial position and complies with American Standards Accounting Principles for non-profit organizations;
Approves the school’s quarterly & annual budget prepared by the Principal no late than the start of a new quarter or semester (no later than one week prior to each school year starts).;
Approves school’s quarterly and annual financial statements and assures the school’s sound financial position;
Approves any non-budget/over-budget expense exceeding $500 by the majority of board members subject to the financial ability of the school;
Contracts a professional accountant and annually evaluate his/her performance; and
Develops and implements special projects to increase revenues from all resources including fund raising and government fund.
The Treasurer of board (under the supervision of the Board):
Monitors the school’s financial process, reviews quarterly and annual financial statements, and prepares financial reports to the Board;
Prepares and delivers annual financial report at the annual membership meeting;
Makes suggestions to improve school’s current financial conditions and undertakes various projects assigned by the Board;
Investigates and coordinates with the accountant and bookkeeper for any financial related inquiries and concerns raised by certain members and authorized by the Board,
Assists accountant and bookkeeper for other financial related projects, and
Coordinates and supervises annual auditing process.
The Principal (under the supervision of the Board):
Manages and maintains a sound financial system for the school and to meet the budget;
Prepares the annual budget (fall, winter, spring and summer quarters) no later than one week prior to the start of each school year;
Authorizes and approves school’s various expenses in accordance with the budget and finance guidance (including payroll, textbook and reading material, office supplies, rent, and other reimbursements used for school);
Monitors class enrollments and makes the best effort to ensure expenses of teacher and classroom rent be covered by the tuition received from the class.
The Accountant (independent):
Reviews and compiles the school’s quarterly and annual financial statements in accordance to the government agencies and the bylaws set by the Board no later than 30 days from the last date of the ending period .
Prepares exempt organization income tax return (Form 990), quarterly and annual payroll tax returns both to the Federal and State agencies including Form 1099s for staff and teachers annually and Industrial insurance and unemployment insurance to the Federal and State quarterly.
Reconciles monthly bank statements and coordinates with the Principal and the bookkeeper for clarity.
Assists the Treasurer to research and respond any questions raised by school members or the board in financial related matters.
Assists the bookkeeper in accordance to the accounting principles and the guidelines set by the Board and provides professional and technical support to improve the existing accounting system.
Makes recommendations to improve school’s financial position and assists school’s other financial related projects and activities.
The Bookkeeper (under the supervision of the principal):
Be responsible for the school’s basic and general entry of financial data and general ledger;
Be in charge of all cash and check receipts from different income sources not limited to tuitions, sale of textbooks and reading material, deposit and membership fees from the library, newspaper sales, fund raising activities and internal & external donations;
Makes bank deposits and account transfers in a timely manner;
Handles Accounts Payables and keeps all invoices, receipts and check-stubs in order and closes monthly general ledger by the 10th of each month, and submit a copy to principle and accountant; and assists the accountants and the Treasurer with other financial related activities and projects.
