NLR 107/23 - School Generated Funds Regulations under the Schools Act, 1997

NEWFOUNDLAND AND LABRADOR REGULATION 107/23 School Generated Funds Regulations under the Schools Act, 1997 (O.C. 2023-298) (Filed December 21, 2023) Under the authority of section 118 of the Schools Act, 1997, the Lieutenant-Governor in Council makes the following regulations. Dated at St. John’s, December 21, 2023. Krista Quinlan Clerk of the Executive Council REGULATIONS Analysis 1. Short title 2. Definition 3. Purposes of school generated funds 4. School generated funds where school permanently closing 5. School generated funds management 6. No investment 7. Internal controls 8. Financial accounting system 9. Compliance with policies and procedures 10. Records 11. Commencement Short title 1. These regulations may be cited as the School Generated Funds Regulations . 107/23 s1 Back to Top Definition 2. In these regulations, "Act" means the Schools Act, 1997 . 107/23 s2 Back to Top Purposes of school generated funds 3. (1) School generated funds shall only be used for the following purposes: (a) providing educational services for students, teachers and student assistants; (b) providing equipment and supplies for students and the school; (c) school-sanctioned activities, events and travel; (d) scholarships and awards for students; (e) providing tokens of appreciation for persons who volunteer with the school; and (f) providing gifts for a school employee, student or the family of a school employee or student in the case of an illness or death of the school employee or student. (2) School generated funds may only be used for a purpose prescribed in subsection (1) where there is no budget appropriation for that purpose. (3) Where the purpose for which school generated funds were received under subsection (1) no longer exists, the school generated funds shall be returned to the original provider of the school generated funds. (4) Notwithstanding subsection (3), w here a return to the original provider is not reasonably possible, the school generated funds shall be used by the school for another purpose that meets the requirements of subsection (1) and, where no additional purpose is identified, the school generated funds shall be deposited to the Consolidated Revenue Fund. 107/23 s3 Back to Top School generated funds where school permanently closing 4. (1) Where a school is permanently closing, the school generated funds held by that school shall be returned to the original provider of the funds, or where a return to the original provider is not reasonably possible, the school generated funds shall be transferred to a school determined by the superintendent for a purpose that meets the requirements of subsection 3(1). (2) School generated funds transferred to a school in accordance with subsection (1) are, for the purposes of paragraph 51.13(1)(g) of the Act, school generated funds for the school receiving them. 107/23 s4 Back to Top School generated funds management 5. (1) The principal is responsible for the management of all school generated funds unless the superintendent directs otherwise. (2) All school generated funds received or held by a school shall be deposited in a bank account in the name of the school. (3) A school shall only have one bank account for school generated funds unless otherwise approved in writing by the superintendent. (4) The principal shall ensure that all school generated funds are held in a safe and secure location at the school before they are deposited in the school's bank account. (5) Notwithstanding subsection (2), the principal may keep a portion of the school generated funds in the school for minor purchases and expenses. (6) The money referred to in subsection (5) shall not exceed an amount set by the superintendent and shall be kept in a secure location. 107/23 s5 Back to Top No investment 6. A school shall not invest school generated funds. 107/23 s6 Back to Top Internal controls 7. (1) Each school shall maintain adequate internal controls to ensure that (a) all school generated funds are collected and deposited in its bank account on a timely basis; (b) all school generated funds are spent in accordance with the Act, these regulations and the policies set by the minister; and (c) the receipt and disbursement of school generated funds are recorded in accordance with the policies set by the minister. (2) Each school shall establish a finance committee in accordance with the policies set by the minister. (3) Where a school is unable to establish a finance committee, the school shall immediately notify the superintendent and the superintendent may (a) impose additional requirements on the school with respect to the management of school generated funds; or (b) exempt the school from the requirement to establish a finance committee. (4) Where a school purchases goods and services with school generated funds, the school shall comply with the Public Procurement Act , the regulations under that Act and the policies set by the minister. (5) All payments made with school generated funds shall be (a) approved by the principal unless the superintendent directs otherwise; and (b) made using a payment method approved by the superintendent. 107/23 s7 Back to Top Financial accounting system 8. For the purposes of the receipt and disbursement of school generated funds, a school shall use a financial accounting system approved by the department. 107/23 s8 Back to Top Compliance with policies and procedures 9. The collection, receipt, use and disbursement of school generated funds shall comply with the policies set by the minister. 107/23 s9 Back to Top Records 10. The department shall keep records of all school generated funds for each school in the province. 107/23 s10 Back to Top Commencement 11. These regulations come into force on January 1, 2024. 107/23 s11