MGT Accounting

Do Public Schools Need Audited Financial Statements 2

Do Public Schools Need Audited Financial Statements?

Every public school needs to submit audited financial statements. As such, your school requires an audit each year. The financial statements of your school should be prepared and audited by a registered auditor and accountant. Put differently, only a professional that is registered with the Independent Regulatory Board for Auditors (IRBA) can audit your financial statements.

South African Schools Act requirements that affect the financial statements of public schools.

According to section 15 of the South African Schools Act, 1996 (SASA), “every public school is a juristic person, with the legal capacity to perform its functions in terms of this Act.”

Section 42 of the SASA Act, 1996 (Act 84 states the following the governing body of a Public school must:

– Keep records of funds received and spent by the public school and of its assets, liabilities, and financial transactions; and

– As soon as practicable, but no later than three months after the end of each financial year, draw up annual financial statements as per the guidelines determined by the Member of the Executive Council.”

When is the end of the financial year for public schools?
The financial year of a public school commences on the first day of January and ends on the last day of December of each year.

What are the minimum components of the financial statements of a public school?
The minimum components of the annual financial statements of a public school consist of the following:

– Statement of income and expenditure – Statement of Assets and Liabilities – Accounting policies; and – Disclosures and explanatory notes.

Final Thoughts
MGT is an accounting firm that specialises in the preparation and auditing of financial statements for organisations and public schools. We don’t only assist schools with their audits but also guide them in remaining compliant. Email us at info@mgt-accounting.co.za, and find out how we can help improve the internal financial system of your school.