Standard Operating Procedure (SOP)
School Accounts Department
Document Control
SOP Title: Accounts Department SOP
Version: 1.0
Effective Date: [Date]
Reviewed by: [Name]
Approved by: [Name]
Date of Last Revision: [Date]
1. Purpose
The purpose of this SOP is to outline the processes and procedures followed by the School
Accounts Department to ensure effective financial management, compliance with regulations,
and accurate reporting of financial activities.
2. Scope
This SOP applies to all financial activities within the School Accounts Department, including
but not limited to:
Revenue Collection and Management
Expense Management and Payment Processing
Budgeting and Financial Planning
Payroll Processing
Financial Reporting and Auditing
3. Roles and Responsibilities
The following roles are involved in the accounts department processes:
Accounts Manager: Oversees all financial activities, ensures compliance, and
reviews financial statements.
Accounts Assistant: Handles daily transactions, record-keeping, and report
generation.
Payroll Coordinator: Responsible for payroll processing and disbursement.
Finance Officer: Ensures correct processing of financial transactions and reports.
4. Procedures
4.1 Revenue Collection
Procedure: All fees (tuition, transportation, extracurricular activities) are collected
via cash, cheque, or bank transfer.
Documentation: Fee receipts must be issued for all payments.
Processing: Payments are recorded in the accounting system daily. A report is
generated monthly for review by the Accounts Manager.
4.2 Expense Management and Payment Processing
Procedure: All invoices and bills must be submitted to the accounts department for
verification.
Documentation: Maintain all invoices, purchase orders, and receipts in the accounts
ledger.
Processing: Payments are processed after verification, and receipts are recorded in the
accounting system. Payments are made via cheque or bank transfer as per the school’s
policy.
4.3 Payroll Processing
Procedure: Salaries and wages for staff are calculated based on attendance and salary
scale.
Documentation: Payroll records must be maintained with supporting documents,
including attendance sheets and contractual agreements.
Processing: Payroll is processed at the end of each month. Disbursement occurs via
bank transfer.
4.4 Budgeting and Financial Planning
Procedure: The school prepares an annual budget, with input from the finance
committee and school administration.
Documentation: Budget drafts and final versions should be kept on record.
Review: The budget is reviewed quarterly by the Accounts Manager and the Finance
Officer to ensure proper allocation of funds.
4.5 Financial Reporting
Procedure: Monthly financial statements (Income Statement, Balance Sheet, Cash
Flow Statement) should be prepared.
Documentation: Statements should be reviewed, signed off, and stored electronically
and physically.
Reporting: Financial reports are presented to the school management and board of
directors quarterly.
4.6 Auditing and Compliance
Procedure: Regular internal audits should be conducted by the Accounts Department.
Documentation: Audit reports should be filed and corrective actions should be
implemented if any discrepancies are found.
External Audits: An external audit is performed annually to ensure compliance with
regulations and accurate financial reporting.
5. Record Keeping
Procedure: All financial records, including invoices, receipts, bank statements, and
reports, must be retained for a minimum of five years.
Documentation: Records should be stored securely in both physical and digital
formats.
Access: Records should be accessible only to authorized personnel.
6. Confidentiality and Data Security
All financial data and personnel records must be handled confidentially.
Secure passwords, encryption, and access controls should be in place to protect
sensitive financial information.
7. Training and Development
Procedure: Accounts department personnel should undergo regular training on
accounting software, financial regulations, and school policies.
Frequency: Training should be conducted annually or whenever there are updates to
financial laws or systems.
8. Monitoring and Review
Procedure: The effectiveness of these SOPs should be reviewed annually to ensure
they remain relevant and compliant with changing financial regulations.
Review Process: A meeting should be held with the Accounts Department staff to
discuss challenges and areas for improvement.
