Assalamualaikum.
Usual activity beginning of the year - apart from school clean up / beautify activities, we had more 'fun', auditing the PIBG Account.
The real challenge was, to lower down the expectation and requirements. Not too low as it may raise concern, and not too high as it may not serve the purpose.
Let me share something. Of all the concerns raised from parents, I may say 80% was on how the money were spent. So here the details:
1. PIBG is a club account - read: not for profit organisation (NPO). Hence, a full set of account is not required. For the NPO, the objective is not for a profit maximization, instead the objective should be :
Literally, a cashflow statement showing cash in and out is sufficient.
2. Its rare for a capital expenditure to be recorded as all the facilities of the school belongs to government. Unless if the school manage to generate cash for an asset, then a Balance Sheet showing Current Asset and Non Current Asset should be prepared.
3. Payment we made to PIBG is a contribution not a fees. The difference is contribution, we are paying based on our willingness with consideration to help the kids whilst a fees, a mandatory payment. Please dont get confuse for these two.
4. Its good to present the cashflow statement in detailed, with a basis of preparation made known to parents.
5. Government support is for school expenses, it will not and never be parked under PIBG Account.
and last, this is extremely important:
Get a qualified auditor or accountant to present the account. Our Malaysian parents are very 'involved' in their kid's activities. you will never been asked how much money required to photostat the examination paper, nor been asked how much is required to supplement on exercise book or the easiest - how much spent for stationary used by the teachers. You will, instead, been asked why the contribution is too expensive, why this, why that, and never on HOW I CAN HELP THE SCHOOL. In summary, RM50/ year collective donation for a class is considered expensive and outrageous compared to RM100/ month for telephone bill?
And suddenly during the AGM, everyone is an expert on how to professionally auditing the account.
Thank you
Usual activity beginning of the year - apart from school clean up / beautify activities, we had more 'fun', auditing the PIBG Account.
The real challenge was, to lower down the expectation and requirements. Not too low as it may raise concern, and not too high as it may not serve the purpose.
Let me share something. Of all the concerns raised from parents, I may say 80% was on how the money were spent. So here the details:
1. PIBG is a club account - read: not for profit organisation (NPO). Hence, a full set of account is not required. For the NPO, the objective is not for a profit maximization, instead the objective should be :
- Economy – Buy goods at minimum cost (still paying attention to quality)
- Efficiency – Use these goods to maximise output
- Effectiveness – Use these goods to achieves objectives
Literally, a cashflow statement showing cash in and out is sufficient.
2. Its rare for a capital expenditure to be recorded as all the facilities of the school belongs to government. Unless if the school manage to generate cash for an asset, then a Balance Sheet showing Current Asset and Non Current Asset should be prepared.
3. Payment we made to PIBG is a contribution not a fees. The difference is contribution, we are paying based on our willingness with consideration to help the kids whilst a fees, a mandatory payment. Please dont get confuse for these two.
4. Its good to present the cashflow statement in detailed, with a basis of preparation made known to parents.
5. Government support is for school expenses, it will not and never be parked under PIBG Account.
and last, this is extremely important:
Get a qualified auditor or accountant to present the account. Our Malaysian parents are very 'involved' in their kid's activities. you will never been asked how much money required to photostat the examination paper, nor been asked how much is required to supplement on exercise book or the easiest - how much spent for stationary used by the teachers. You will, instead, been asked why the contribution is too expensive, why this, why that, and never on HOW I CAN HELP THE SCHOOL. In summary, RM50/ year collective donation for a class is considered expensive and outrageous compared to RM100/ month for telephone bill?
And suddenly during the AGM, everyone is an expert on how to professionally auditing the account.
Thank you
No comments:
Post a Comment