Public Schools_Guideline for Preparation of Financial Statements

30 September 2022
Accounting
South African Accounting Academy

In terms of section 42(b) of the South African Schools Act, 1996 (SASA), the governing body of a public school must as soon as practicable, but not later than three months after the end of each financial year, draw up annual financial statements in accordance with the guidelines determined by the Member of the Executive Council (MEC).

The Guideline is however not authoritative and enforceable on provincial departments of education as the SASA requires that the MECs determine the guidelines for their respective provinces. The Guideline can only be used if it is adopted by the MEC.

SAICA has identified non-compliance with generally accepted accounting principles within the Guideline. As part of SAICA’s advocacy initiative to improve financial reporting at public schools, a submission will be made to the DBE to improve the Guideline.

Click here to download the DBE Guideline:

https://saicawebprstorage.blob.core.windows.net/uploads/resources/PEDs-School-Guidelines-Fin-Statement.PDF

Relevance to Auditors, Independent Reviewers & Accountants:

This will apply to your clients who are public schools
This Guideline applies to School Governing Bodies of all public schools (under the auspices of those PEDs that have decided to adopt these guidelines) as compilers of the annual financial statements
As an auditor, independent reviewer and an accountant, you need to consider compliance with this Guideline.

Relevance to Your clients:

This will apply to public schools
In terms of section 42(b) of the South African Schools Act, 1996 (SASA), the governing body of a public school must as soon as practicable, but not later than three months after the end of each financial year, draw up annual financial statements in accordance with the guidelines determined by the Member of the Executive Council (MEC).
An SGB that decide to use this Guidelines must adhere fully with the principles, presentation and disclosure requirements contained in this document.
The financial management directives to public schools must be consistent with this Guideline.

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