Bank Accounts

Purpose of this policy

To ensure bank accounts meet control requirements.

Policy

School bank accounts must:

  • only be opened or closed with the written authority of the school council
  • be in the name of the school council, with the exception of the High Yield Investment Account
  • have the principal (mandatory) and a school council member registered as co-signatories
    Note: The school business manager cannot be a signatory even if a member of the school council
  • be reconciled each month
  • be audited in accordance with the department’s requirements
  • be maintained on CASES21
  • be managed according to requirements detailed in the Finance Manual for Victorian Government Schools.

Account types

This table lists the type of bank accounts schools can operate.

Account Type

Description

School Council Official Account

Is the school operating account and should:

  • be used for the receipt of all monies other than those deposited into the High Yield Investment Account
  • be used for all payments for goods and services
  • never be overdrawn or have cheques drawn on the account where funds are insufficient for payment.

High Yield Investment Account

Provides:

  • the Department with a mechanism to deposit Government Grants to schools
  • an option for school councils to invest identified surplus funds
  • assistance with cash flow at call funds.

Other accounts including:

  • cooperative loans
  • tax deductible funds
  • term deposits

Operate in accordance with:

  • legislative requirements
  • specific grant requirements such as building funds, library funds and bequest
  • Australian Prudential Regulation Authority (APRA) Authorised Deposit-taking Institutions (ADI).

Related legislation

  • Financial Management Act 1994

Department resources

  • For more information see: