01 - Department of Education and Communities - NSW Government

$MIncome from• Global and Specific Purpose Funding 323.6• School and Community Sources 150.9• Interest 14.2488.7Expenditure on• Educational Programs 285.6• Administrative Programs 134.3• Capital Programs 55.2475.1• Excess of Income over Expenditure 13.6488.7The Department and The Audit Office are considering options which would remove the qualification whilethe status of schools remains unresolved.Operating grants to schools under Global Budgeting arrangements have been recorded under the budget item“Funding towards School Operating Expenses” within Other Expenses in Note 2(f).(b)School Bank BalancesThe Commonwealth Bank has advised that balances amounting to $214.1 million were held by governmentschools as at 30 June 1997 in current accounts and investment accounts. This compares with balances of$197.0 million and $186.1 million held at 30 June 1996 and 30 November 1996 respectively. It should benoted that these figures are as complete as possible but because of the large number and variety of accountsheld by schools the Commonwealth Bank does not guarantee that all accounts have been included. Thesefunds, apart from the Government grant component, are not recorded within the Department’s financialstatements. The funds comprise grants and advances from Government and private sources, financialcontributions and charges levied by schools, donations and voluntary contributions and other revenue, includingearnings on investments. Such funds are used generally to replace assets / equipment, to meet schoolcommitments for the next financial year and ongoing school operating expenses, to purchase new items ofschool equipment, and to meet the cost of long term school projects.Operating grants which have been recorded as an expense against the budget item “Funding towards SchoolOperating Expenses” (See Note 2 (f)), have been paid into school bank accounts during the year.An unaudited analysis of the financial statements and bank balances of 200 schools for the year ended 30November 1996 (refer Note 1(a)(ii) ) showed that the bank balances were 4.1% higher than the cash bookbalances. The difference was attributed to outstanding deposits and unpresented cheques.If this same result is applied to the 30 June 1997 bank balance figure of $214.1 million, this translates into acash book balance of $205.7 million. Based on the 30 November 1996 sample data, the schools are holdingthese funds for the following purposes:-$M %• Asset Replacement and Acquisition 79.2 38.5• Commitments 67.1 32.6• General Contingencies 59.4 28.9205.7DSE Annual Report 1997 113