Additional Information

Summary Budgeting and Reporting

School Generated Funds Accounting Policy

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Under the Public Sector Accounting Board ( PSAB), school divisions will be required to include school generated funds in their financial statements. This will involve recording revenues and expenses of controlled school generated funds, and period end balances of all school generated funds.  

In establishing whether or not certain funds should be included as controlled school generated funds, the actual control of the funds is the key issue.  Simply having custody of the funds, or even being a signing authority on the bank account, does not constitute control.  To be deemed to have control a school must have the unilateral authority to make the decisions as to when, how and on what the funds are to be spent.

The following funds are deemed not to be controlled school generated funds and therefore their revenues and expenses are not to be included in a school division’s financial statements:

  1. parent council funds,
  2. other parent group funds,
  3. student council funds, and
  4. travel club funds.

Funds raised by parent councils, other parent groups, and student councils are not considered to be controlled school generated funds regardless of who is holding the funds or signing cheques on the bank account. Travel club funds are used for trips that aren’t curriculum related (e.g. trips to Europe), and therefore are not included in controlled school generated funds.

If a division has any other material school generated funds that are not controlled by the school, those funds may be excluded as well. 

In the case of funds deemed not to be controlled by the school, if the money is spent on items that will belong to the school, it will be recorded in the school division accounts as revenue and expense when the purchase is made. Until the purchase is made or the control of the funds is transferred to the school, the revenue will not be reflected in the school division financial statements.

School Divisions may, if unable to obtain school generated funds information in time for the year-end or quarter-end reporting, use the previous quarter’s twelve month totals for revenues and expenditures. However, the cash/bank balances must be as at the actual year-end date.