Boston, MA 02108 | education@corp.com | education.

com | 222 555 7777

SCHOOL FINANCIAL
REPORTING POLICY

Prepared by
Emily Jacobs

POLICY NUMBER: EC-ERP-0012

EFFECTIVE DATE: February 11, 2055
 I. Introduction

This School Financial Reporting Policy outlines the guidelines and

procedures for financial reporting within Education Corp. The policy aims to
ensure transparency, accuracy, and compliance with all applicable financial
regulations and best practices. It is the responsibility of all school staff involved in
financial matters to adhere to this policy.

II. Objectives

The objectives of this policy are as follows:

A. Provide accurate and timely financial information to support decision-

making by school administrators, board members, and stakeholders.
B. Maintain proper internal controls to safeguard the school's assets and
prevent fraud or misappropriation of funds.
C. Ensure compliance with all relevant laws, regulations, and accounting
standards.
D. Promote transparency and accountability in financial reporting to foster
trust among stakeholders.

III. Financial Reporting Framework

The school will follow the International Financial Reporting Standards (IFRS)
for financial reporting.

IV. Roles and Responsibilities

A. School Administrators: Responsible for overseeing the implementation of this

policy, ensuring that adequate resources are allocated for financial reporting,
and using financial reports for informed decision-making.
B. Finance Department: The finance department is responsible for maintaining
accurate and up-to-date financial records, preparing financial statements, and
ensuring compliance with this policy and applicable accounting standards.
C. Board of Governors: The Board of Governors will review and approve the
financial reports, ensuring the financial health and sustainability of the school.
D. Auditors: Internal and external auditors will conduct regular reviews and audits
to assess compliance with this policy and identify areas for improvement.
 V. Financial Reporting Procedures

A. Recording Transactions: All financial transactions must be recorded promptly

and accurately in the school's accounting system. Supporting documentation
should be kept for each transaction.
B. Financial Statements: The finance department will prepare regular financial
statements, including an income statement, balance sheet, and cash flow
statement, in accordance with IFRS.
C. Budget vs. Actual Reports: A comparison of actual financial performance
against the approved budget will be prepared and reviewed regularly.
D. Interim Reporting: Interim financial reports may be prepared and presented to
relevant stakeholders as required.

VI. Accounting Policies

A. Revenue Recognition: The school will recognize revenue when it is earned

and realizable.
B. Expense Recognition: Expenses will be recognized when incurred and can be
reliably measured.
C. Fixed Assets: The school will follow a systematic depreciation method for fixed
asset accounting.
D. Inventory: If applicable, the school will maintain an inventory tracking system
and account for inventory using a consistent valuation method.

VII. Record Keeping

A. Financial records shall be maintained for a minimum of 7 years in a secure and

accessible manner.
B. Records should include invoices, receipts, bank statements, ledgers, and other
financial documents.
 Record Keeping Process Description

1. Types of Records Financial records to be maintained for a

minimum of 7 years: Invoices and receipts,
bank statements and reconciliation records,
general ledger, and subsidiary ledgers, payroll
records, purchase orders and vendor
information, financial statements and reports,
internal and external audit reports, and tax
records and filings.

2. Storage and Maintain records in locked and secure

Organization cabinets or rooms, accessible only to
authorized personnel. Store digital records on
secure and password-protected servers with
limited access rights. Organize records
logically and systematically, ensuring easy
retrieval and maintenance.

3. Retention Period Keep financial records for a minimum of 7

years, as per legal and regulatory
requirements.

4. Record Destruction When records reach the end of their retention

period, ensure proper disposal through secure
shredding or confidential destruction methods
to protect sensitive data.

5. Backups and Disaster Regularly backup electronic records to

Recovery prevent data loss in the event of hardware
failure or data corruption.

6. Access and Security Limit access to financial records to authorized

personnel only, based on their roles and
responsibilities.

7. Record Tracking and Maintain a record tracking system to monitor

Updates the movement and updates of financial
records.

VIII. Audit and Review

 A. External audits will be conducted annually by an independent auditing firm to
provide an objective assessment of the school's financial health and adherence
to accounting standards.
B. Internal audits are an integral part of our financial reporting process. The
internal audits will be performed periodically throughout the year, and the audit
schedule will be as follows:

Audit Period Conducted By Focus of Audit

Assessment of internal controls,

review of financial transactions
Biennially Internal Audit Team and records, evaluation of
adherence to accounting
standards, and examination of
budget vs. actual performance.

Examination of financial
statements, verification of
Year Ended 2055 External Audit Firm accounting policies and methods,
and assessment of compliance
with relevant laws and accounting
standards.

IX. Compliance and Legal Requirements

The school will comply with all relevant local, regional, and national financial
reporting laws, regulations, and accounting standards. Below are key areas of
compliance and legal requirements that the school will adhere to:

A. Generally Accepted Accounting Principles (GAAP) / International

Financial Reporting Standards (IFRS): Financial reports will be prepared in
accordance with the prescribed principles and standards to maintain
consistency and comparability.
B. Tax Regulations: The school will fulfill all its tax obligations promptly and
accurately. This includes the timely filing of tax returns and the proper
calculation and remittance of taxes, such as income tax, sales tax, and
property tax.
C. Education Regulatory Bodies: As an educational institution, Education
Corp is subject to regulations set forth by relevant education authorities.
 Compliance with these regulations ensures that our financial operations
align with educational standards and guidelines.
D. Financial Reporting Deadlines: The school will meet all financial reporting
deadlines as required by law or regulatory bodies. This includes the timely
submission of financial statements, tax returns, and any other required
financial reports.

X. Communication and Transparency

A. Financial reports will be communicated to the Board of Governors, school

administrators, and other relevant stakeholders.
B. The school will be transparent in disclosing financial information to parents,
faculty, and the community when appropriate.

XI. Monitoring and Review

This policy will be reviewed annually to ensure it remains up-to-date and

effective. Any necessary revisions will be made to reflect changes in accounting
standards or the school's financial practices.