Running head: PROPER ACCOUNTING PRACTICES
Proper Accounting Practices
Proper Accounting Practices
Accounting practices are a must when it comes to handling funds related to schools and education. School systems hurt the students when they misuse funds. Schools receive funds from various sources such as grants, local, state and federal funding and these funds must be used as allocated. In the state of Georgia, schools are required to submit annual audits of all funds to the state department of education. In this essay, we will review several instances where school systems did not adhere to proper accounting practices and have been subject to penalization. We will also review the current procedures being used by Franklin County Schools and Georgia Department of Education for risk-management.
Each school system in the State of Georgia is responsible for their own finances which includes managing their funds and soliciting funds for operations and such. Risk management is essential for providing a safe learning environment for students. Local tax payers also appreciate and are owed the explanation of how the funds are being spent by the school district. School districts must ensure that they hire a person that is responsible and experienced in managing finances to ensure that they are protected from such risks. It is important that they identify potential risks so that they can avoid, prevent, reduce and retain such risks that could expose the school’s financial situation to the general public.
School’s must develop a risk management plan. The steps to a risk management plan can vary, but typically resemble something such as: 1) Identify new risks 2) Develop risk management plan 3) Evaluate risks 4) Revise risk management plan. Each year, school systems must review their risk management plan. The most important step is to identify the risks before they happen (Corluccio, 2014). The main goal of the risk management plan is to provide a safe, secure learning environment for students and teachers.
Examples of risks
· Finding a hole in the gymnasium floor. This would be considered an emergency fix. However, if the school system has not planned ahead for maintenance type items such as this, it could find itself in poor financial situations or lack of ability for financing to fix such an issue.
· Leaky roof. Many schools in my school district are older and have not been ideally maintained. Leaking roofs can cause a host of issues such as mold, mildew and lose of use until the leak is repaired.
While both of these situations are less fortunate, they are reality for many systems across the state.
Who is Responsible for Risk-Management
Risk management is not as simple as having one person manage everything or having a risk manager. Risk management is the responsibility of everyone; including teachers and students. Everyone is responsible and accountable to help prevent risks. The...