Overview:
It is recommended that boards should cease the use of cheques and start using online banking for all payments. This is more cost effective and efficient for the school.
General controls when using cheques for payments:
- Where cheques are in use there should be two cheque signatories for all school accounts – always the Principal and another person approved by the board of management.
- The board of management must approve the authorised signatories, and this should be recorded in the minutes of the board meeting.
- The bank mandate must be updated to agree to the board of management’s approved authorised signatories.
- The accounts secretary/clerical officer/bursar preparing the cheque payment should not be a cheque signatory.
- When cheques are presented for signature, they should be accompanied by supporting invoices or other documentation and initialled by both cheque signatories as evidence of approval.
- Both cheque signatories should satisfy themselves independently that the payment is properly due.
- Invoices should be stamped/marked ‘paid’ with the cheque reference number once payment has been issued.
- Signed cheques should be dispatched promptly.
- Cheques should be written in order with only one cheque book in use at any one time.
- Cheque books should be kept in a secure place with access restricted to only nominated people.
- The cheques should not be used where other forms of payments are accepted i.e. EFT, direct debit.
- Under no circumstances should a blank cheque be signed by a signatory.
- No post-dated cheques, unsigned cheques or partly completed cheques should be used or stored.
- Cheques should not be written for cash except for the petty cash imprest system.
- All outstanding cheques should be recorded in the monthly bank reconciliations.
- The board of management made every effort to minimise the use of cheques.
- Where a cheque is required to pay for goods or services a requisition form should be completed. Sample available below.
Sample Forms & Templates
> School Payment Requisition form