Financial Management of the School
The school strongly believes that SDF, being hard-earned money collected from the parents/children, is public money that needs to be used most cost effectively. It is to be used only for the development of the school and students’ welfare that is not covered by current budget under government funding. In the decentralized management system, the school is aware of the expectation to exercise the greater responsible in managing the school fund/budget. Therefore, to ensure proper utilization and systematic accounting besides maintaining transparency and accountability in the management and use of fees collections from students and staff, the school will have a School Fund Committee consisting of the Principal as the chairperson, Secretaries of Academic, Non-Academic and Student Support Service (SMT), Treasurer, warden, matron, Mess In-charge and Office Assistant. The financial management of the school will consist of budgeting, use of the approved and collected budget as per the school policy and financial rules, bookkeeping and submission of statement of expenditure details to the students and staff and authorities concerned from outside. The roles and responsibilities of committee are:
Further, any amount collected by the school through various programmes and any donation or assistance received through proper channel would become SDF and therefore be deposited in the SDF account.
- Principal (Chairperson)
2. VP (Dy. Chairperson)
3. Fund Incharge (Secretary)
4. SMT (member)
5. Other relevant staff
To this end, it is expected that:
1. a committee shall manage the SDF.
2. SDF be used for development of the school and students’ welfare with prior permission from the SDF committee.
3. SDF is neither for saving nor for extravagant use.
4. the committee maintains efficiency, transparency, and accountability in using the SDF through quarterly report.
5. personal loans from SDF shall not be entertained.
6. the SDF committee shall be answerable on the matters related to SDF usage in the school for the year.
7. the committee scrutinizes the things to be procured/ purchased as per the need of the school.
8. it is not mandatory to utilize the proposed amount by the end of the year.
9. an amount of Nu.10, 000 be kept with the SDF coordinator to meet the immediate expenses and rest will be deposited in the BOB in the SDF account.
10. approvals for expenditure shall be accorded by the committee only based on the proposal submitted at the beginning of an academic year.
11. the in-charges must submit bills to SDF In-charge for maintaining the expenditure register.
Roles and responsibilities of School Fund Committee:
1. Identify the areas on which the fund is to be used.
2. Develop School Development Fund policy.
3. Conduct internal auditing time to time.
4. Guide and ensure the proper utilization of the budget allotted to the different In-charges/committees.
5. Collect the proposals and verify the budget projection submitted by various committees and in-charges.
6. Prepare the submission and presentation of approval of budget projection proposals of committees/In-charges to be put up in the staff meeting/relevant committee for the confirmation.
7. Verify School Development Fund Cashbook.
8. Collect and verify the cash memos/bills after the activity and handover the bills to the treasurer for maintaining record accordingly.
9. Counter sign the School development Fund reports.
School Fees and Contributions:
The school will collect the fees as per the ministry’s policy. However, if need for extra collection arises for any school use, the School Management Team will apprise and put up the matter to the School Management Board and to the parents during the Parents-Teachers meeting. The collection will be made only after the approval made by the School Management Board and parents during Parents-Teachers meeting. The collection of the fees for the school as per the policy of the Education Ministry and SMB/Parents is as follows:
Class SDF Token Fee School Rimdro Fee Total Remarks
PP – VI Nu. 30 Nu. 5 Nu. 100 Nu. 135 Both Boarder and Day-scholar Students
VII – VIII Nu. 100 Nu. 5 Nu. 100 Nu. 205 Day – Students
VII – VIII Nu. 100 Nu. 50 Nu. 100 Nu. 250
IX – X Nu. 200 Nu. 50 Nu. 100 Nu. 350
IX – X Nu. 200 Nu. 5 Nu. 100 Nu. 205 Day – Students
Staff – – Nu. 500 Nu. 500 Both Teaching and Non-teaching staff
The class teachers will collect and deposit the above-mentioned fees as per the notification of School Fund In-charge/treasurer. The School Fund In-charge in turn will maintain the proper record of the SDF, token fee and Rimdro fee collected from students and staff in a separate register and submit the collections to the Principal. The Principal will deposit the token fee to the Revenue Section, Dzongkhag Administration, Pemagatshel and SDF and Rimdro fee to the School’s Saving Bank Account maintained with BOB, Pemagatshel right after the collection from the students and must submit the money and deposit receipt to the School Fund In-charge/Treasurer for record and reference. The School Fund In-charge/Treasurer must inform and show the deposit and money receipt to the School Fund Committee members for ensuring transparency and accountability for the proper deposition of fees collected from students and staff.
The School Fund Committee will manage the fund such as SDF and Rimdro fee through appointed School Fund In-charge/Treasurer. The committee will approve and verify the bills while the in charge/treasurer maintains proper record of bills and expenditure details in the register.
Remember all the above fee collections and contributions are liable to be audited by the authority concerned.
Procedure for utilizing the SDF
1. The class teachers shall collect the SDF amount from the students and submit to the SDF coordinator latest by March 10.
2. The committee shall verify and collect the amount so collected by the class teachers for that particular academic year and deposit them in the bank.
3. Proposal for utilization will be submitted by the respective activity coordinator along with their work plan and budget estimation in the beginning of the academic year. The SDF committee will allocate funds for various proposals based on the collection of the fund.
4. The concerned coordinators are also responsible to submit an activity report along with the bills.
5. File the note sheets and bills submitted and approved, for accounting and reference.
6. The member secretary shall prepare the vouchers as per the bill and hence update the cashbook.
7. The balance shall be brought to the notice of the whole school quarterly for general information.
8. The in charges concerned shall put up the note sheet for sanction to the committee for any expenditure to be incurred.
9. The committee members shall verify the genuineness of the need to incur expenditure and justify in favour of or otherwise for the final sanction by the school Principal.
10. The concerned in-charge will procure the items and submit the bill to the SDF Incharge with signatures of members for payment and pass to the committee secretary for preparing voucher and update the cash book accordingly. No bills would be entertained without a note sheet and prior approval of the activity.
11. The formalities for the expenses will be verified by the Principal every month.
Utilization of the School Development Fund (SDF):
The School Development Fund (SDF) is utilized by the school for various school development activities/programmes in the school itself. In particular, it will be used for development areas where there is no budget head approved by the Ministry of Finance. The following are the areas of uses of SDF and a break up of how the SDF is being utilized in percentage:
Uses of SDF: SDF is used for the following:
1. To buy prize for school activities and programmes.
2. Buying materials for minor maintenance of the school.
3. To buy items for the promotion of health of the students such as soap, tooth paste etc.
4. Meeting expenses for providing special diet of the sick students.
5. To buy important and necessary items for the school that is not eligible to be budgeted at the Dzongkhag level.
6. To meet expenditure for refreshment of the extra-curricular activities, visit of guest/VIPs, students and teachers farewell.
Break up in Percentage: (This is just an example. We may add or delete the head)
Sl.# Head of the expenditure Percentage Allotted
1 Students’ Health and Welfare 15% of the collection
2 Co-Curricular/Club Activities 10% of the collection
3 Games and Sports Competitions 10% of the collection
4 Academic Prizes 15% of the collection
5 Observation of Important Days and VIPs visits 10% of the collection
6 School Picnic/Rimdro 10% of the collection or Not exceeding Nu.5,000/-
7 Renewing Dish TV 10% of the collection
8 Miscellaneous Expenses 10% of the collection
9 Balance for the next academic session 10% of the collection
The school rimdo will be conducted once a year in the beginning of the academic year for the benefit of all students, sentient beings, and for the peace and prosperity of all. The expenses for this rimdo will be collected from the children and the teachers since there is no other source for conduct it. The decision for performing the rimdo is discussed during the parent- teacher meeting every year. A committee formed maintains the accounts of the collection and the expenditure.
Contribution for the school Rimdo will be as follows:
Ø General staff: Nu. 500/-
Ø Students: Nu.100
Note: If Rinpoche and renowned Lamas head the ceremony, contribution shall vary.
Utilization of the Rimdro Fee:
The fund collected from staff and students for the School Rimdro as mentioned above will be used for the meeting expenditures for the conduct of Rimdro Only.
Roles and responsibilities of the School Fund In-charge/Treasurer:
1. Assist and remind the class teachers to collect and deposit the school fund and contributions from students as per the date line.
2. Remind staff and make collection of contributions on time.
3. Maintain School Development Fund/other fund register.
4. Make statement of SDF expenditure quarterly/half yearly/yearly and display on the students and staff notice boards.
5. Collect the school development fund and other fees from the class teachers and issue receipt.
6. Maintain the minutes of School Development Fund Meeting.
7. Maintain the record of all money matters (contributions and collections) of the school other than SDF.
8. Present and submit the detailed reports annually to the generally staff meeting.
9. Responsible for handling and maintaining proper record of other fund collections besides SDF.
10. Update daily accounts and maintain record of the School Development Fund/other fund expenditure separately at the end of term/year as mentioned below.
Format for maintaining Statement of Expenditures
Statement of SDF/other Fund Expenditure as on ………………
Sl.# Particulars Cash (Nu) Bal (Nu) Total (Nu)
1 Opening balance from 201……
2 Collection in 201……
3 Total Amount of SDF in 201…..
4 Total expenditure as per bills
5 SDF balance as of 15/12/201….
Signature of the Principal Signature of School Fund In-charge/Treasurer
Signature of committee members:
1. ____________________________ 2. ____________________________
3. ____________________________ 4. ____________________________