Accounting officer reports for schools

 

The SA Schools Act 84 of 1996 governs public schools. Section 43(1) requires a governing body of a public school to appoint a person to audit the records and financial statements. This person must be a registered auditor in terms of the Auditing Profession Act 26 of 2005.

 

If an audit is not reasonably practicable, the governing body of the school may appoint another person to examine and report on the records and financial statements of the school. The term “reasonable practicable” is not defined by the Act. This will depend on the circumstances and should be determined by the governing body. Elements that could be considered may include:

 

  • The economic significance of the school measured against revenue, assets,
  • number of employees and similar
  • The nature of the school and the community with in which it operates
  • The cost of a registered auditor’s report
  • The availability of a registered auditor

 

This person must be qualified to act as an accounting officer in terms of section 60 of the Close Corporations Act or must be approved by a Member of the Executive Council.

An accounting officer is not appointed to perform the audit but to examine and report on the records and financial statements of the school.

It is important to note that:

  • The person to replace the auditor should be qualified as an accounting officer.
  • The person qualified as accounting officer is required to examine and report not to perform the duties of an accounting officer as specified in the Close Corporation Act 1984. 

 

Accountant that accepts the appointment to examine and report should agree with the governing body the nature and extent of the work to be performed. The parties may agree that the service should be conducted in terms of SA Schools Act No. 84 of 1996 Section 43(2)

 

 

 

Accountant when appointed to issue a report should advice the schools on knowledge and understanding of the following

 

  • The South African Schools Act
  • Provincial schools legislation that require an audit
  • Rules and regulations of a particular school require an audit
  • The Public Finance Management Act No 1 of 1999
  • Division Revenue Act