Chapter 6



6.7.1Legislative and Policy Framework


  • South African Schools Act 84 of 1996, Sections 20 (1) and 37 (1) [SASA]
  • The Public Finance Management Act, 1999 as amended by Government Gazette No. 38735 of 30 April 2015 (Act No 1 of 1999) [PFM]



  •  Generally Accepted Accounting Principles [GAAP]

6.7.2Guidelines for the Development of School Policy on Asset Control

  1. Stock Register (Also called Inventories)
    • The Principal can appoint (in writing) one person to be the “stock controller”. Even if this task is delegated, the principal is still personally responsible for keeping the inventories for assets and stock, up to date.  Principals must take the necessary precautions against damage, fire or theft.  If negligence can be proved, the negligent person will be required to compensate the Department.
    • Before submitting orders, the principal should survey each grade’s needs, check the stock on hand and ensure that the right equipment and books are ordered.
    • A Section 21 school needs only one stock register as all moveable assets are transferred to the school. A Non-section 21 school should have two registers:  One for departmentally provided assets and another for assets purchased from school funds.
    • The pages of the Stock Register should be numbered consecutively. Each item and each group of textbooks has its own page.  The page should have three sections:  Receipts, Disposals and Annual Stocktaking information.  (See example below.)
      NAME OF SCHOOL: Stockreg. Item
      Quantity unit….Each…. Description _____________ Monitors  ________  Folio ______
      RECEIPTS DISPOSALS To be completed at Annual stocktaking
    •  A-class stock includes furniture and equipment, that is, items with a longer life-span than E-class.
    • E-class items are consumable, A-class not.  The school must keep an inventory for all A-class stock.
  2. Annual Stocktaking
    By tasking delegated persons, the principal must take stock of all stores, equipment and livestock at least once every financial year.  There should be at least two persons to do the stocktaking and they should be different from the usual stock controller.  A good practice which is used in many schools is to hire an external service provider to mark all items and undertake the annual stocktake.
  3. Stocktaking Procedures
    • The aim of stocktaking is to see if the actual items correspond with the balances on the records. The Stock Controller cannot do his / her own stocktaking but must be present when the appointed persons take stock.
    • After stocktaking has been completed, the controllers will be asked to explain any surplus, shortage or deficiency found. Each controller could be held liable for any discrepancies.
    • After the annual stocktake, a report should be made to the SGB. The report should answer the following:
      • What is the general condition of items or stores and equipment?
      • Are there any surpluses? What is the value of these surpluses?  Why are there surpluses?
      • Are there any shortages? What is their value?  Are there explanations for the shortages?
      • Are there any redundant, obsolete, irreparable or useless items?
      • Can the quantity and condition of stores, in terms of the activities of the specific department, be justified? Science Labs, for example, definitely use up their consumables and wear out their equipment.
      • Is it possible that any shortages or damage may be the result of negligence?
    • Every year the principal should establish a Board of Survey to review the stock position of the school.
      There are three members on this board, generally the principal and two senior members of staff.
      The Board must enquire about old and problematic items of stock.
      The Board must also enquire about any surpluses or shortages
      After the Board has completed the inspection, they must draw up a report and forward it to the SGB.
      If big problems have been discovered, the SGB should establish a Board of Enquiry.
  4. Hand-over Certificate
    • When a principal of a school terminates his duties at the school such a principal must prepare a hand-over certificate to be given to the person taking over his duties.
    • See Reference C [Hand-over Certificate] for an example of a template which can be used for this purpose.
    • It is also required that when other staff members are replaced, or where control of stocks is handed from one staff member to another, a “handing-over certificate” is completed.


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