SGB Annual Financial Report Template (Free Download)

Preparing an SGB financial report template that meets South African Schools Act (SASA) requirements is essential for every School Governing Body. Under SASA Section 41, SGBs must prepare annual financial statements that accurately reflect school income, expenditure, assets, and liabilities—and submit these statements to the provincial education department. Whether you’re an SGB treasurer preparing your first annual report or an experienced financial officer ensuring compliance, having a structured template ensures nothing is missed and audit preparation is straightforward.

This comprehensive guide provides a free SGB annual financial report template outline with detailed sections for income, expenditure, assets, liabilities, and compliance. We’ll walk through each section with instructions for completion, explain SASA reporting requirements, and share audit preparation tips to help your SGB submit accurate, compliant financial statements. The template structure aligns with Generally Recognised Accounting Practice (GRAP) standards and provincial education department requirements, ensuring your school meets all legal obligations while maintaining transparency with parents and education officials.

Understanding SGB Financial Reporting Requirements

Before diving into the template structure, it’s essential to understand what SASA requires from SGB financial reports. Section 41 of the South African Schools Act mandates that SGBs:

Keep proper financial records: Maintain detailed records of all income and expenditure throughout the financial year
Prepare annual financial statements: Generate comprehensive reports covering the full financial year
Submit statements to the department: Provide financial statements to the provincial education department within specified deadlines (typically 6 months after year-end)
Make statements available: Allow parents and staff to access financial statements on request
Ensure statements are audited: Annual financial statements must be audited by a registered auditor (Section 42)

Provincial education departments may have additional requirements, so check your provincial guidelines. Most provinces require financial statements to follow GRAP or similar accounting standards, include specific disclosures, and be submitted in prescribed formats.

SGB Financial Report Template Structure

The following template structure provides a comprehensive framework for SGB annual financial reports. Each section includes instructions for completion and references to SASA requirements.

Section 1: Cover Page and Executive Summary

Cover page should include:

School name and registration number
Financial year (e.g., 1 January 2025 to 31 December 2025)
Report date
SGB Chairperson and Treasurer names and signatures
Principal name and signature

Executive summary (1–2 pages):

Brief overview of school’s financial position
Total income and expenditure for the year
Surplus or deficit
Key highlights (major projects, significant changes)
Collection rate for school fees (if applicable)
Brief statement on financial sustainability

Instructions:

Keep executive summary concise and accessible to non-financial readers
Highlight positive achievements and acknowledge challenges transparently
Use this section to demonstrate responsible financial management

Section 2: Statement of Financial Position (Balance Sheet)

The balance sheet shows the school’s financial position at the end of the financial year—what the school owns (assets) and owes (liabilities).

Assets:

Current assets:

Bank balances (savings and current accounts)
Cash on hand
Debtors (outstanding school fees and other receivables)
Prepaid expenses (insurance, subscriptions paid in advance)
Investments (short-term deposits, money market accounts)

Non-current assets:

Property, plant, and equipment (land, buildings, furniture, equipment)
Accumulated depreciation
Net book value of assets
Intangible assets (if applicable)

Liabilities:

Current liabilities:

Creditors (suppliers, service providers)
Accrued expenses (utilities, salaries due but not yet paid)
School fees received in advance (if applicable)
Short-term loans or overdrafts

Non-current liabilities:

Long-term loans
Other long-term obligations

Net assets/equity:

Total assets minus total liabilities
Represents the school’s net worth

Instructions:

List all bank accounts with account numbers and balances
Include detailed asset register showing all equipment, furniture, and property
Calculate depreciation for all fixed assets
Reconcile all balances to supporting documentation (bank statements, invoices, asset register)
Ensure total assets equal total liabilities plus net assets

Section 3: Statement of Financial Performance (Income Statement)

The income statement shows all income received and expenditure incurred during the financial year.

Income:

State funding:

Personnel allocations (salaries, benefits)
Infrastructure grants
Learner support materials allocations
Nutrition programme funding (if applicable)
Other state grants

School-generated income:

School fees (total billed, less exemptions, less bad debts)
Fundraising activities (events, sponsorships, donations)
Interest income
Rental income (if applicable)
Other income (canteen, uniform sales, etc.)

Total income:

Sum of all income categories

Expenditure:

Personnel costs:

Additional teaching posts (if school-funded)
Support staff salaries
Professional development
Staff benefits

Operational costs:

Utilities (electricity, water, refuse)
Maintenance and repairs
Cleaning and security
Insurance
Communication (telephone, internet)

Educational costs:

Learning materials and resources
Library books and resources
Sports equipment
Technology (computers, software, maintenance)
Extramural activities

Administrative costs:

Office supplies
Financial management (audit fees, software, bank charges)
Legal and professional fees
Printing and stationery

Capital expenditure:

Infrastructure improvements
Equipment purchases
Technology upgrades

Total expenditure:

Sum of all expenditure categories

Surplus or deficit:

Total income minus total expenditure
Positive figure indicates surplus, negative indicates deficit

Instructions:

Categorise all income and expenditure according to the chart of accounts
Include detailed breakdowns for major categories
Compare actual figures to budgeted amounts and explain significant variances
Ensure all figures reconcile to bank statements and supporting documentation
Include notes explaining unusual items or significant transactions

Section 4: Cash Flow Statement

The cash flow statement shows how cash moved in and out of the school during the year.

Operating activities:

Cash received from school fees
Cash received from state funding
Cash received from fundraising
Cash paid for operating expenses
Net cash from operating activities

Investing activities:

Cash spent on capital purchases (equipment, infrastructure)
Cash received from sale of assets (if applicable)
Net cash from investing activities

Financing activities:

Cash received from loans (if applicable)
Cash paid for loan repayments (if applicable)
Net cash from financing activities

Net increase/decrease in cash:

Sum of operating, investing, and financing activities

Opening cash balance:

Cash balance at start of financial year

Closing cash balance:

Cash balance at end of financial year
Should match bank statement balances

Instructions:

Reconcile all cash movements to bank statements
Explain significant cash flow changes
Ensure closing balance matches balance sheet bank balances

Section 5: Notes to Financial Statements

Notes provide additional detail and context for items in the financial statements.

Accounting policies:

Basis of accounting (cash basis or accrual basis)
Depreciation methods and rates
Revenue recognition policies
Inventory valuation methods (if applicable)

Significant transactions:

Major purchases or sales
Related party transactions (if any)
Unusual or non-recurring items

Contingencies:

Legal disputes or claims
Guarantees or commitments
Other potential liabilities

School fee information:

Total fees billed
Exemptions granted (number and value)
Collection rate
Outstanding fees (ageing analysis)

Asset details:

Major asset purchases during the year
Asset disposals
Asset register summary

Compliance:

Confirmation of SASA compliance
Provincial regulation compliance
Audit status

Instructions:

Provide sufficient detail for readers to understand the financial statements
Disclose all material items
Explain accounting policies clearly
Reference specific SASA sections where relevant

Section 6: Supporting Schedules and Documentation

Include detailed schedules supporting the main financial statements.

Schedule 1: School Fee Analysis

Total learners enrolled
Fee-paying learners
Exempt learners (with exemption percentages)
Total fees billed
Fees collected
Outstanding fees (by age: current, 30 days, 60 days, 90+ days)
Bad debts written off

Schedule 2: Budget vs Actual Comparison

Budgeted income vs actual income (by category)
Budgeted expenditure vs actual expenditure (by category)
Variances with explanations

Schedule 3: Asset Register

Detailed list of all fixed assets
Purchase date and cost
Depreciation accumulated
Net book value
Location/condition

Schedule 4: Creditors Ageing

List of all creditors
Amounts owed
Age of debt (current, 30 days, 60 days, 90+ days)

Schedule 5: Procurement Summary

Major purchases during the year
Procurement method used (quotes, tenders)
Supplier names and amounts

Instructions:

Ensure all schedules reconcile to main financial statements
Include sufficient detail for audit purposes
Maintain supporting documentation (invoices, receipts, contracts)

Completing Each Section: Step-by-Step Instructions

Step 1: Gather All Financial Records

Before starting, collect all necessary documentation:

Bank statements for all accounts (full year)
All invoices and receipts (organised by category)
Payment vouchers and authorisation documents
Asset register
Fee collection records
Budget documents
Previous year’s financial statements (for comparison)

Step 2: Reconcile Bank Accounts

Reconcile all bank accounts monthly (should be done throughout the year)
Ensure all transactions are recorded
Identify and resolve any discrepancies
Obtain bank confirmation letters if required by auditor

Step 3: Categorise Income and Expenditure

Review all transactions and categorise according to chart of accounts
Ensure consistent categorisation throughout the year
Group similar items together
Identify and explain unusual items

Step 4: Calculate Asset Values

Update asset register with new purchases and disposals
Calculate depreciation for all fixed assets
Verify asset existence through physical checks
Ensure asset values are reasonable and supportable

Step 5: Calculate Liabilities

List all outstanding creditors
Include accrued expenses (utilities, salaries)
Calculate any provisions required
Ensure all liabilities are recorded

Step 6: Prepare Financial Statements

Use the template structure above
Ensure all figures are accurate and reconcile
Cross-reference between statements (balance sheet, income statement, cash flow)
Include all required disclosures

Step 7: Write Notes and Explanations

Explain significant transactions
Describe accounting policies
Disclose contingencies
Provide context for variances

Step 8: Review and Verify

Review all calculations
Verify all figures reconcile
Check for completeness
Ensure compliance with SASA and provincial requirements

Audit Preparation Tips

Preparing for the annual audit well in advance ensures a smooth process and reduces audit fees. Follow these tips:

Start Early

Begin audit preparation 2–3 months before year-end
Complete monthly reconciliations throughout the year
File all documentation systematically as transactions occur
Don’t leave everything until the last minute

Organise Documentation

Maintain complete files of all invoices, receipts, and supporting documents
Organise documents chronologically and by category
Ensure all payments have proper authorisation
Keep minutes of all SGB and finance committee meetings

Complete Reconciliations

Reconcile all bank accounts monthly
Reconcile fee collection records regularly
Reconcile asset register to physical assets
Resolve all discrepancies before the audit

Prepare Supporting Schedules

Prepare detailed schedules for major items
Include ageing analyses for debtors and creditors
Provide budget vs actual comparisons
Prepare procurement summaries

Communicate with Auditor

Engage auditor early (book well in advance)
Provide auditor with access to records
Respond promptly to auditor queries
Address audit findings immediately

Common Audit Issues to Avoid

Missing documentation: Ensure all transactions have supporting invoices or receipts
Unreconciled accounts: Complete all reconciliations before audit
Incomplete records: Maintain complete records throughout the year
Unauthorised payments: Ensure all payments have proper authorisation
Poor asset management: Maintain accurate asset register and verify assets exist

For comprehensive guidance on SGB financial management, see our SGB Financial Management Guide, which covers budgeting, fee setting, procurement, and compliance in detail.

Using Technology to Streamline Financial Reporting

Manual preparation of financial reports is time-consuming and error-prone. Modern school management systems automate much of the financial reporting process, generating accurate statements automatically from transaction records.

Benefits of automated financial reporting:

Accuracy: Automated calculations eliminate errors
Efficiency: Reports generated in minutes instead of days
Compliance: Built-in templates ensure SASA compliance
Transparency: Real-time financial information available to SGB
Audit readiness: Complete audit trail of all transactions

Fundisa generates financial reports automatically, pulling data from fee collection, expenditure tracking, and asset management modules. The system produces income statements, balance sheets, cash flow statements, and supporting schedules—ensuring your SGB submits accurate, compliant financial reports with minimal administrative effort. Financial reports can be generated at any time, not just at year-end, enabling regular financial oversight and early identification of issues.

Best Practices for SGB Financial Reporting

Follow these best practices to ensure effective financial reporting:

Maintain records throughout the year: Don’t wait until year-end to organise records
Reconcile regularly: Complete bank reconciliations monthly
Use consistent categorisation: Apply chart of accounts consistently
Document everything: Maintain complete supporting documentation
Review regularly: Conduct monthly and quarterly financial reviews
Seek professional help: Engage accountants or auditors for complex matters
Use technology: Leverage financial software to automate processes
Train SGB members: Ensure finance committee understands financial statements

Conclusion

Preparing an accurate SGB financial report template that meets SASA requirements is essential for compliance and transparency. This template structure provides a comprehensive framework covering all required elements: balance sheet, income statement, cash flow statement, notes, and supporting schedules. By following the step-by-step instructions, maintaining complete records throughout the year, and preparing for audits early, SGBs can submit accurate, compliant financial reports that demonstrate responsible financial management.

Key takeaways:

SASA Section 41 requires SGBs to prepare annual financial statements
Template structure should include balance sheet, income statement, cash flow statement, notes, and schedules
Complete documentation is essential for audit preparation
Regular reconciliation throughout the year simplifies year-end reporting
Technology can automate financial reporting and reduce errors
Early preparation ensures smooth audit processes

For schools seeking to streamline financial reporting, Fundisa generates financial reports automatically, integrating fee collection, expenditure tracking, and financial reporting into one comprehensive system. Explore Fundisa’s financial management features to see how technology can help your SGB prepare accurate, compliant financial reports efficiently.

For more guidance on school financial management, see our articles on School Fee Collection Strategies and SGB Financial Management Guide.

Frequently Asked Questions

What is the deadline for submitting SGB annual financial reports?

SGBs must submit annual financial statements to the provincial education department within 6 months of the financial year-end. For schools with a December year-end, reports are typically due by 30 June the following year. However, deadlines vary by province—check your provincial education department’s specific requirements. Some provinces require earlier submission, and late submission may result in penalties or provincial intervention. SGBs should aim to complete financial statements and audits well before the deadline to allow time for review and any necessary corrections.

What happens if an SGB financial report shows a deficit?

If an SGB financial report shows a deficit (expenditure exceeds income), the SGB must explain the deficit in the notes to financial statements and develop a plan to address it. Common causes include lower-than-expected fee collection, unexpected expenses, or budget overruns. The SGB should: explain the reasons for the deficit, outline steps taken to address it, develop a recovery plan (may include fee increases, cost reductions, or fundraising), and submit the plan to the provincial education department. Persistent deficits may trigger provincial intervention, so SGBs should address deficits promptly and transparently.

Can SGBs prepare financial reports using cash basis accounting?

Most provincial education departments require SGBs to prepare financial statements using accrual basis accounting (recognising income when earned and expenses when incurred, regardless of cash flow). However, some smaller schools may be permitted to use cash basis accounting—check your provincial requirements. Accrual basis provides a more accurate picture of financial position and performance, aligns with GRAP standards, and is generally preferred by auditors. SGBs should consult with their auditor or provincial education department to confirm which basis is required for their school.

What supporting documentation should be kept with SGB financial reports?

SGBs must maintain complete supporting documentation for all transactions included in financial reports. Required documentation includes: bank statements for all accounts, invoices and receipts for all expenditure, payment authorisation documents, fee collection records and exemption applications, asset register and purchase documentation, procurement documentation (quotes, tenders, contracts), minutes of SGB and finance committee meetings, budgets and variance analyses, and previous year’s financial statements and audit reports. Documentation should be organised systematically, retained for at least 7 years (as required by SASA), and made available to auditors and provincial education department officials on request.