Starting a New Montessori School: Financial Operations

Starting a New Montessori School: Financial Operations

8. Startup and Cycle of Financial Operations

 

A new school may wish to map out its bookkeeping procedures and cycles. The following is a summary of major recommendations.

 

A. General Objectives

  1. To facilitate the conduct of business.
  2. To help assure the security of funds.
  3. To help maximize the use of funds.

B. Procedural Elements

  1. Record keeping and check signing functions should be done by different people to as great an extent as possible, with the school secretary acting as primary record keeper and check signers limited to the principal, board president, and treasurer. When the administrative staff is small, it may be desired to permit the school secretary to sign checks. A second signature should be required.
  2. A double signature should be required for checks of all amounts. Amounts greater than $500 should require a board member's signature.
  3. All disbursements should be by check. No checks should be written for cash.
  4. An itemized receipt, serving as voucher, should be required for all disbursements.
  5. Petty cash should be limited.
  6. Two bank accounts should be established, checking and savings.
  7. All deposits should be made to the savings account.
  8. All receipts should be deposited daily. Cash receipts should be discouraged.
  9. All transactions should be posted daily.
  10. A transfer from the savings account to the checking account should be made at the beginning of the month to cover the coming month's cash requirements.
  11. Savings withdrawals should require the signature of two board members.
  12. The record keeper should be bonded, especially if entrusted with check signing responsibility.
  13. Bank accounts should be reconciled and compared with records on a monthly basis by a non-employee.
  14. An audit committee of parents should review financial results and records at least once a year and make a report to the board.
  15. The above responsibilities should be incorporated into employee job descriptions.

C. Accounting Cycles

1. Daily

a. Post all transactions. 
b. Deposit all receipts. 
c. Balance checkbook.

2. Weekly

a. Review records.

3. Monthly

a. Close records. 
b. Post reporting statements. 
c. Reconcile bank accounts. 
d. Compare statements to records. 
e. Compare results to budget. 
f. Determine cash needs for coming month. 
g. Transfer funds from savings to checking account. 
h. Report to board on financial status.

4. Periodically

a. Spot review records and accounts.

5. Annually

a. Review and report by audit committee of parents.

 

Organizational Roots Site Selection

New School Capital Budget New School Operations Budget

Promotion Starting Montessori Classes Legal Issues

Startup and Cycle of Financial Operations Chart of Accounts

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Welcome back and thank you for you patience as we have been transitioning to new locations, beginning new work with new staff, and refreshing our processes.

Our online store and archives have successfully moved into a new space where all of our publications and media, both for sale and for research via the archives, are housed in one large office/warehouse. Along with the refreshed processes and efficiency this new space brings, we will be implementing new ordering and payment systems for the NAMTA store and updating other member services. We are now filling back orders and will be ready to accept new orders by December 11th.

Our operations are now headquartered in Seattle and are being managed by NAMTA’s longtime president Jacquie Maughan. Please feel free to contact us at staff@montessori-namta.org or call the Seattle office at 206-919-6349.

For additional news and updates, please see the note from the NAMTA officers.

Finally, be sure to mark your calendars and plan to attend our conference in Seattle/Tacoma on April 4-7, 2019. This conference will not only explore the most current approaches and uses of technology but will also inspire and enrich our understanding of maintaining our balance with the forces that keep us rooted and connected to humanity through the power of story, the natural world, and creativity. Check back soon for program and registration information.