Help required on internal control system

Save Share

This query is : Resolved

rahul verma (Querist)
Follow

16 June 2013 i am developing an internal control system for a school. i am also developing n formulating strategies n procedures for accounting for the school. i would like to seek advice n help as to the integral parts i should take care of and how i could develop an efficient internal control system...

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

16 June 2013 1)Receipts:-

(i)receipts from the students should be properly accounted with some heads like..tution fee,exam fee,admission fee,fines,books..
(ii)A policy to be made to deposit amount collected from students to the credit of bank account..like (periodicity to deposit collections into bank 1 week/3days as case may be)

2)payments:-

(i)Proper care should be exercised in payments and person making payments was authorizing to do so.payments are being done after competent authorization.
(ii)to have a better control it is highly recommended to place a imprest system for payments..
means..

1)care should be taken,and prohibit payments out of money collected from students or other collections.

2)Money should be with drawn from bank for making payments..and fee collected should be deposited to bank..and then if want with draw for payment purposes..

Thanks & regards
Ganesh babu k

Message likes : 1 times

Ki$hor B

Ki$hor B (Expert)
Follow

16 June 2013 Hi Rahul,
Your question is wide in scope!

I'd suggest,
1. Fees/others received from students would be the source of income. Exercise control to ensure the fees collected are deposited on a daily basis or as per the practice followed.

2. Make an 'Authority matrix' to ensure there is no leakage of funds.

Lastly, one could make a guideline on every aspect in the Accounts/Admin. Ask in if you have any specific area that needs to be addressed.

Message likes : 1 times

rahul verma

rahul verma (Querist)
Follow

17 June 2013 thanks a lot for your valuable suggestions... if needed i shall post a query for guidance on specific matters. thanking you once again for your valuable time

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!