Banking and Cash Handling
At Paparoa Street School, we have clear procedures for banking and cash handling to ensure that income and expenditure is appropriately authorised, recorded, and reconciled. We aim to reduce the likelihood of errors and the risk of fraud and theft through 
internal control measures, including segregation of duties.
Internal controls are systems and processes to promote financial integrity. We document and implement internal control measures to reduce the likelihood of errors and the risk of fraud and theft, and to ensure we understand who is responsible for financial procedures and information.
We consider internal control measures in the following areas to promote financial integrity:
- Governance – having documentation (e.g. policies, procedures, interest registers) in place and meeting regularly to ensure this is up to date.
- Segregation of duties – having different people perform financial duties (e.g. receipting cash, authorising expenditure, approving and recording payroll) to reduce the risk of individuals engaging in fraudulent behaviour.
- Banking – limiting access to the banking system and authorisation of payments according to recorded delegations, controlling authorisation and usage of any school bank cards, and completing regular bank reconciliations to compare planned income and expenditure with bank transactions.
- Cash handling – encouraging electronic payment rather than cash payments, limiting petty cash, and storing cash securely if it is received and banking this as soon as possible (as well as segregating these duties).
- Payroll – strengthening payroll internal controls (e.g. by following EdPay guidance).
- Journals – authorising journals being posted, segregating duties for preparing and posting journals, and keeping documentation to support manual journals.
- Passwords – maintaining secure passwords for internet banking and any accounting systems, updating passwords regularly and not sharing these with non-delegated staff.
For more information about internal controls, see the Financial information for schools handbook, internal control checklist and segregation of duties matrix in Day-to-day financial management 
(Ministry of Education).
Online banking
The kura may use online banking as a secure system of payment for our kaimahi and kura community. If an external payment system is used to receive kura income online, we ensure that there are appropriate internal controls in place to monitor this system, and that the terms and conditions of the system align with our income and expenditure policies.
- Online banking transactions must be supported by relevant documentation (e.g. an approved invoice or purchase order).
- We keep information about online banking secure and advise any person accessing online banking of our security expectations.
- The poari matua determines who (e.g. the tumuaki or other delegated kaimahi) has authority to:
- access online banking facilities
- approve invoices for payment (including that this must be approved by two different people)
- monitor and reconcile online banking transactions.
Cash handling
The poari matua is responsible for protecting the cash resources of the kura. As much as possible, the kura encourages electronic rather than cash payments. If cash is required for kura activities or received by the kura, it is kept securely until it can be deposited.
- Only kaimahi delegated by the poari matua may handle cash.
- The processes of receipting cash, banking cash, and reconciling transactions in the kura accounting system are appropriately segregated (completed by different people).
- We ensure there is a record of cash transactions (e.g. individual receipts or bulk receipts signed by the depositor).
- Cash received is not used to pay other kura expenses in cash.
- We deposit money received by the kura into a kura bank account as soon as practicable after it is received.
- We reconcile cash transactions on a regular basis to compare what has been spent and received with the actual amount of cash on hand, and require explanations for any variance.
- Petty cash is usually limited to low-value, unexpected expenditure. Petty cash is limited to $200 and reconciled monthly. The poari matua determines who can approve petty cash top-up payments.
- Use of the petty cash fund must be supported by a receipt or other proof of purchase.
- If there is surplus petty cash after a purchase is made, the person using petty cash must return surplus cash within two working days of the advance.
EFTPOS transactions
EFTPOS is available for kura-related payments.
- Cash withdrawals are not available.
- Credit card transactions are not available.
- EFTPOS receipts and transaction reports are kept with kura financial records.
- The kura may require an EFTPOS surcharge to be paid to cover bank charges.
Bank cards
Our kura issues credit/debit cards to staff authorised by the poari matua. We keep a signed record of who has been issued a card. The poari matua approves card limits.
Any use of bank cards must be for actual and reasonable costs associated with kura business. We approve expenditure on a one-up basis (e.g. the kaihono approves payments by the tumuaki, the tumuaki approves payments by kaimahi).
We have clear expectations for card use and share these with authorised card users (e.g. procedures for reporting card loss, limits or restrictions on withdrawal, not saving card details online).
To prevent fraud and misuse of bank cards, we:
- follow internal control measures (e.g. segregation of duties, secure passwords and pin numbers)
- do not allow card details to be saved for future transactions
- do not allow bank cards to be used for personal expenditure
- ensure bank cards are only used for kura-related purchases that are within budget
- ensure bank cards are only used by people that have been authorised by the poari matua (i.e. people that have delegated authority)
- keep clear records of bank card use
- set a limit for card use and ensure this limit is not exceeded
- ensure that transactions are supported with a receipt or invoice and statements are signed off by the poari matua
- account for purchases as soon as possible after receiving a statement
- do not allow cash advances, except in emergency situations
- require card loss to be reported immediately to the tumuaki and the card company.
Benefits relating to kura expenditure (e.g. loyalty scheme points) may only be used on behalf of the kura and should not provide unreasonable personal benefit to individuals. Any additional personal benefits received from school bank card use must be declared to the poari matua.
Investments and deposits
The poari matua may only invest kura funds according to the Education and Training Act 2020 (s 154) and the Crown Entities Act 2004 (s 160 and 161).
We are guided by the cash requirements of the kura and the purpose of investments when managing term deposits. The tumuaki liaises with the financial committee to manage term deposits.
Related topics
Legislation
- Education and Training Act 2020
- Crown Entities Act 2004
Resources
: Term 3 2025, Term 2 2021
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