0.1 Literature review  (Page 15/19)

Roles and responsibilities of the school governing body

Section 37 [School Funds and Assets of Public Schools] of the South African Schools Act indicates the responsibilities of the school governing body in respect of the monies and assets of the school:

37. (1) The governing body of a public school must establish a school fund and administer it in accordance with directions issued by the Head of Department.

37. (2) All money received by a public school including school fees and voluntary contributions must be paid into the school fund.

37. (3) The governing body of a public school must open and maintain a banking account.

37. (4) Money or other goods donated or bequeathed to or received in trust by a public school must be applied in accordance with the conditions of such donation, bequest or trust.

37. (5) All assets acquired by a public school on or after the commencement of this Act are the property of the school.

37. (6) The school fund, all proceeds thereof and any other assets of the public school must be used only for educational purposes

Clarke (2008; 280) argues that the financial responsibilities of a school governing body are perhaps its most important responsibilities and in terms of the South African Schools Act the governing body of a public school has the following fiduciary functions:

• preparation of the annual budget
• presentation of the budget to the general parent body for approval
• determine and charge school fees
• consider applications for the exemption of parents who are unable to pay school fees
• legally enforce the payment of school fees
• establish a school fund account
• keep records of funds received and paid (including asset and liability management)
• preparation of the annual financial statements (timeously)
• appointment of an auditor to audit the records and financial statements of the school
• submit the audited annual financial statements to the Provincial Education Department

The South African Schools Act therefore makes it quite clear that the school governing body, and not the principal, of a public school has the ultimate responsibility for its financial management, The principal, as a member of the school governing body, shares that responsibility and is responsible for ensuring that it is implemented [Clarke (2008; 281)]. Mestry (2004; 129) states that the principal must work in collaboration with the school governing body in the management of finances. Although the school governing body is accountable to the parents for the school funds, the principal can play a supportive role in ensuring that the school’s finances are managed efficiently.