PC Accounting cashbook manual by bud19087






        Version 2003
                                          P&C Accounts

This is an Excel application designed to assist P&Cs in financial monitoring and accountability. It
facilitates complete compliance with the 2003 version of the P&C Accounting Manual. It will be useful
for smaller P&Cs without sub-committees. It could be used with caution for sub-committees. Each
account needs a separate application.

The application is made up from several sheets. Some record base data while others allow for
recording and reporting of the transactions for each month. Annual summaries are also provided. The
whole application is driven from a menu screen (click on your selection)

Limitations for the 10 column version include:-
         31 receipt entries per month
         41 payment entries per month
         10 columns (3 mandated for receipts; 7 mandated for payments)
         A trading account is automatically produced for the tuckshop only.

The 20 column version has 20 columns and allows for 41 receipt transactions per month.

The application has no „macros‟ or „ visual basic‟ programming. This allows anyone with basic
knowledge of Excel to alter the application. (eg change the tuckshop trading to uniform shop trading).

Usually, if a P&C has two or more trading activities (eg tuckshop, uniform) these would be handled by
subcommittee accounts. Each subcommittee could use a separate copy of this application with the
trading component edited to show the appropriate title.

If more than one trading activity is operated through one bank account, the application would have to
be altered to show the second trading activity. While the first one can be used as an example,
considerable confidence with Excel would be required before attempting such a task.

The icon shown above is used to return from selected sheets back to the Main Menu.

This application is designed to be used for a single year only. The next year requires another copy of
the blank application being started. Keep a blank copy for future use.

        Being computer based, be sure backups are kept and that all reports are kept as hard copy in
        case electronic files are destroyed.

                   Reference should be made to the P&C Accounting Manual.
             While this application is compliant, it is not a substitute for the manual.

The use of this application should allow inexperienced Treasurers to maintain records and produce
required reports. This includes production of Annual Financial Statements which should reduce any
burden on Auditors to produce the reports and well as audit them. The P&C is obliged to produce the
reports not the Auditor.

While this application can and has been used for recording GST, extra care is required and advice
should be sought on how to handle the GST columns and balancing transactions required.

It is recommended that P&Cs that have registered for GST consider using a commercial accounting
package to more easily handle the GST and the BAS requirements.

                                                Page 1

Main Menu                      Page 3

Setting Up                     Page 4

Monthly Operations             Page 9

Monthly Reporting              Page 10

Annual Financial Statements    Page 15

                      Page 2
Main Menu

The main menu is divided into four sections which equate to operational needs.

Account Setup is a one off task done at or before the start of the financial year.

Cash Book is the section where the day to day transactions are recorded.

Monthly Statements allows for monthly bank reconciliation and produces the reports
required for monthly meetings.

Annual Statements is the section where the Annual Financial Statements are produced so
that they can be forwarded to the Auditor before presentation at the Annual General Meeting.

Remember that the ‘stickman’ icon is used to return you to this menu.

Set printing margins! (To ensure documents fit on A4 paper)

       Using the menu at the very top of the screen select
              File – Page Setup – Margins         Set all margins to .5cm

       Then save the application.
             File – Save

                                              Page 3
Account Setup
To start the year, we have five setup tasks. Before you setup, ensure a blank copy of the
spreadsheet is kept for use in future years.

       Base Data (name of P&C and financial year)
       Core Data (starting balances etc from the previous year)
       Loan Details (record existing and new loans taken by the P&C)
       Budget (essential planning for the coming year)
       Investment Register (details of investments if any)

Base Data

Enter the name of the P&C

Enter the year, period of year, account name and the months to suit your financial year. In
the example, a calendar year is used (and is recommended). However, if your financial is
July to June, month 1 would be July, month 2 August, etc.

Press the „stickman‟ to return to the Main Menu.

                                           Page 4
Core Data

The following amounts have to be entered:-
         Balance as per bank statement at the end of the previous year.
         Deposits not on bank statement (this is cash entered in cash book but not yet banked from
         previous year). Should be zero.
         The value of all unpresented cheques as at the end of the previous year.
         The cashbook balance as at the end of the previous year.
         The dollar value (cost price) of Tuckshop stock on hand at the end of the previous year.

While some column names are mandated, you may call the others what you like. Names should be
meaningful and short (<20 characters) so that they fit on top of cash book columns. Mandated names
are the shaded areas and are protected.

School Programs and Misc are groupings to save columns. School Programs is used for expenditures
that relate to the school rather than the operation of the P&C and its activities. This would include
donations towards the school budget, landscaping, etc. These are more fully explained on the monthly
reports where a breakdown of these grouped columns can be shown.

Investment Redemption is used when investments are returned to the main account. Investment is
used to record payments out of the main account into investments (if applicable). Interest paid for
investments should be paid directly into the main account as Interest revenue.

To facilitate a Trading Account for the tuckshop, tuckshop expenditure is split three ways into wages (if
applicable) and direct and indirect costs. Direct costs are the purchase of goods for resale (bread,
drinks, etc) while indirect costs are non-resale purchases (wrappings, utensils, equipment, etc used in
the tuckshop but not sold.)

The mandated columns of „new loans‟ in receipts is for the receipt of a new loan during the year while
the mandated „loan repayments‟ column in expenditure is for repayments to existing and new loans.
These columns are essential to correctly generate the Annual Financial Statements at the end of the

When finished, scroll to the top of the screen and click on the „stickman‟ icon to return to the Main

                                                 Page 5
Loan Details

If the P&C has an existing loan, the balance outstanding at the start of the year needs to be entered.

If a new loan is taken out during the year, the loan amount is required to be entered into the new loan

At the end of the year, the principal still owing for both existing and the new loans must be entered
before the Annual Financial Statements are generated.

If the P&C has no loans, these cells must be left as $0

When finished, scroll to the top of the screen and click on the „stickman‟ icon to return to the Main

                                                 Page 6

The budget is an essential document for planning and to assist with monitoring progress throughout
the year.

Previous year‟s results often form a good guide as a basis for estimation.

Expected revenue sources are listed and then an estimated amount is flowed through the months of
the year as per the example above.

Expected expenditures can then be listed in a similar manner. These expenditures are also flowed
throughout the year taking into account when we will have the revenue to be able to commit
expenditure. While some expenditures such as bank charges cannot be deferred, others such as
school programs can be moved to more appropriate months of revenue flow.

Just as the school budget should be drawn up in consultation with the P&C, the P&C budget should be
drawn up in consultation with the school so that a total school community focus can be applied and the
timing and funding sources optimised. This practice helps give the P&C goals and direction for the
coming year.

It is important that once done, the budget is not forgotten but is monitored against monthly reports so
that the P&C knows the „state of play‟ at all times.

When finished, scroll to the top of the screen and click on the „stickman‟ icon to return to the Main

                                                 Page 7
Investment Register

Most small P&Cs would not have separate investment accounts. If the CBA bank is used, attractive
interest rates are paid on all deposits at money market rates regardless of balance.

The register will have to be setup if an investment is carried forward from the previous year or if an
investment is started at any time during the year.

Select the register and enter appropriate details for each investment.

Payments into the investment account is recorded as expenditure in the cash book.
Redemption of investments back into the main account should be recorded as income in the cash
Interest earned from investments should be paid directly into the main account and recorded as
interest income.

When finished, scroll to the top of the screen and click on the „stickman‟ icon to return to the Main

                                                 Page 8
Monthly Operations
The day to day transactions of the P&C are recorded in the cash book.


                                 (This is a cut down example to show features)

For each transaction the day, name and receipt number is entered and then the amount entered into
the appropriate column or columns. The Total of Receipt column will automatically total the

The amount banked is recorded for each banking (these figures should show on the bank statement).
A „1‟ (one) is entered in the Bank Rec column if the transaction is correctly located on the bank

A warning (in red) will appear at the bottom of the page if the value in the Banked column is different
from the sum of the amounts distributed across the other columns.

The rows totalling and calculating the „Year to Date‟ figures are done automatically.

Revenue such as Bank Interest will be shown on the bank statement and must be entered into the
Cash Book before the monthly statements are produced. No receipt is issued and the amount should
be marked as „banked‟

When data entry is complete, scroll to the top of the sheet and press the „stickman‟ icon.

                                                  Page 9

                                 (This is a cut down example to show features)

The payments work somewhat similar to receipts. Date, name and cheque numbers are entered. The
total of payment must be entered and then the cost distributed across a column or columns.

A warning will show at the bottom (as shown) if the distributions do not equal the cheque amounts. For
display purposes, the $100 payment (school programs) has been shown as only a $10 distribution to
show that such mistakes will cause the warning message to occur.

Upon receipt of the bank statement, each cheque shown on the statement should be marked with a „1‟
(one) in the Bank Rec column. This will assist with the bank reconciliation process.

Direct debits against the account such as bank charges must be entered into the cash book.
They are marked as appearing on the Bank Rec and, of course, do not have a cheque number.

When data entry is complete, scroll to the top of the sheet and press the „stickman‟ icon.

                                                 Page 10
Monthly Reporting
At the end of each month, a bank statement should be obtained and the accounts reconciled.
Cash Book entries need to be checked against the bank statement as the first task.

For monthly meetings of the P&C, the following documents are required.

            1.   Cash Book
            2.   Bank Statement
            3.   Bank Reconciliation Statement
            4.   Statement of Receipts and Payments
            5.   Trading Account (if the P&C has trading activities eg tuckshop)

These are all print outs from the application. (except the bank statement from the bank)

The Bank Reconciliation and the Statement of Receipts and Payments should be signed off against
the other documents.

1 Cash Book

Printed after being reconciled with the bank statement and any extra entries made for revenue or
payments transacted directly on the account (eg interest or bank charges)

2 Bank Statement

Arrange to get a copy as at the end of the month and in time to do the reconciliation process before
the monthly meeting.

The last three documents No’s 3, 4 and 5 are provided together in the Monthly Statement
section of the Main Menu. Press the appropriate month under Monthly Statements for access.

                                               Page 11
Bank Reconciliation Statement




                               4                                                                   6


                                     (This is a cutdown example to show features)

Entries are only permitted in the shaded areas. Non-shaded areas are protected.
     1. Enter the date of the end of month
     2. Enter the balance on the bank statement as at the end of the month.
     3. Any cash, recorded in Cash Book but recorded as not yet banked will be shown automatically.
     4. Unpresented cheques from this month only are shown automatically.
     5. Enter details of unpresented cheques from previous months
     6. Enter the total of any investment balances as at the end of the month

If the statement does not reconcile, a warning is printed above the signature block.

    7.   When reconciled, complete other documents and then print and sign off the documents.

Be sure to followup any unpresented cheques, as details of cheques that are still not presented in the next
month‟s bank statement will be required to complete next month‟s bank reconciliation statement.

                                                     Page 12
Statement of Receipts and Payments

                                 (This is a cutdown example to show features)

The Statement of Receipts and Payments is generated automatically from the Cash Book.

Below the statement are the Summary details for both the School Programs and Miscellaneous
Payments. These payments were grouped into these two columns to save column space. To better
inform the monthly meeting, the grouped payments can be broken down.

Note that the current month‟s values must be entered. An additional breakdown category may be
added at any time.

If the YTD summary information does not equal the YTD information in the statement, a warning will
be printed under the summary box.

YTD figures are used to better inform the meeting of the financial benefits provided to the school so far
in the current year.

This document also requires a signoff.

                                                 Page 13
Trading Account

                                  (This is a cutdown example to show features)

This is very important document to monitor the tuckshop activity.

It is mandated at least quarterly and recommended monthly. If a stocktake is not done for a particular
month, the trading statement for that month should be ignored and not tabled at the monthly meeting
for that reporting month

It only requires three entries by the operator. The total of invoices on hand that are unpaid as at the
end of the month, the value of stock on hand (cost price) at the end of the month and the value of
unpaid operating expenses such as superannuation or tax. The rest are automatically calculated.
Monthly stocktakes of goods for resale should be part of tuckshop operations.

However, for the last month of the financial year, all outstanding accounts must be paid (including
employee costs). The last trading statement only requires data to be entered for the value of closing

This document enables the net profit to be compared to the budget and also enables the gross and
net profit percentages to be monitored. Even if the total sales are down due to holidays etc, the
percentage should be fairly stable.

Any sudden and drastic change to the percentages should be investigated.

The P&C Accounting manual has a section on tuckshop operations which gives strategies to be used
in operating any trading operation.

Upon completion of the trading account, the sheet can be printed to give a hard copy of all three

When finished, scroll to the top of the sheet and press the „stickman‟ icon to return to the Main Menu.

                                                  Page 14
Annual Financial Statements
At the end of the financial year, each P&C is required to produce Annual Financial Statements and
present these to an Auditor. The audited statements are then in turn presented at the Annual General
meeting of the P&C. Copies of these statements are also required to be sent the District Office.

The first requirement is the last month of financial year monthly reports – the YTD figures give a whole
of year perspective for the Trading Accounts and the Bank Reconciliation. The last month of the year
must be finalised before the Annual Statements can be generated.

The balances of loans (at end of year) must also be entered into the Loan Details section before the
Annual Statements are generated.

Three documents required in Annual Statements are certifications and these are obtained by
selecting Certificates from the Annual Statements section on the Main Menu. This links to
appropriate Word documents that can be completed and printed.

To better inform the school community, it is required that certain annual statements show comparisons
with the previous year. The documents required are:-

        Receipts and Payments
        Financial Position
        Financial Performance

If the P&C has sub-committee accounts, documents for each sub-committee account are required
along with documents which combine all P&C activities into combined reports.

                                               Page 15
Receipts and Payments

While the current year (2003 in the example) figures are automatically generated, the
previous years figures have to be entered. These are obtained from the Annual Financial
Statements of the previous year.

When the data has been entered, print the document

Scroll to the top of the sheet and press the „stickman‟ to return to Main Menu.

                                           Page 16
Financial Position

                                             Sample SS P&C

                              Financial Position (Balance Sheet)
                                              December 31, 2003

   PREVIOUS                                                                            THIS
       YEAR                                                                           YEAR
        2002                                                                           2003

      4 950.00 Cash at Bank                                                         6 005.15
        324.55 Stock on Hand                                                          140.50
          0.00 Investment Balance                                                       0.00

      5 274.55 TOTAL ASSETS                                                         6 145.65


    15 760.00 Balance of Loans                                                     23 190.00

    15 760.00 TOTAL LIABILITIES                                                    23 190.00

  ($ 10 485.45) NET ASSETS/(LIABILITIES)                                     ($ 17 044.35)


    ( 7 884.00) Accumulated Funds                                             ( 10 485.45)
    ( 2 601.45) Surplus/(Deficit) for year                                      ( 6 558.90)

  ($ 10 485.45) TOTAL EQUITY                                                 ($ 17 044.35)

           The negative net worth is due to the donation of assets to the school

                                             Page 17
The details of the previous year have to be entered (the shaded cells) from the previous
years statements. The current year‟s details are generated automatically.

Equipment bought with P&C funds must be entered on the school asset register. They can
be marked as “in use by the P&C” if only used by the P&C. None of these assets are to be
shown on the financial statements.

The only liability a P&C should have at the end of the year is the balance of loans.

If a P&C has a loan, the „bottom line‟ may result in negative equity. If this is so, a message
will appear at the bottom of the document reminding readers that the donation of assets to
the school is the cause of the negative situation and is acceptable.

When the data has been entered, print the document

Scroll to the top of the sheet and press the „stickman‟ to return to Main Menu.

                                            Page 18
Financial Performance

The details of the previous year have to be entered (the shaded cells) from the previous
years statements. The current year‟s details are generated automatically.

While this document is similar in appearance to Receipts and Payments, the Statement of
Financial Performance shows Revenue and Expenditure.

All receipts are not revenue. (eg only the profit from the tuckshop receipts is revenue)

All payments are not expenditure. (eg only the interest portion of loan repayments is

                                           Page 19

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