Financial controls are the checks and processes a P&C puts in place to ensure money is handled properly. They help prevent mistakes, misunderstandings and misuse of funds, and protect both the association and the volunteers who manage its finances. 

Strong financial controls are a sign of good governance. They support transparency, accountability and trust. 

Why financial controls matter 

P&Cs manage money raised from their school communities. This creates an obligation to: 

• use funds for their intended purpose 
• make decisions transparently 
• keep accurate records 
• protect volunteers from risk 

Without clear financial controls: 

• errors are more likely to occur 
• it can be difficult to identify problems early 
• volunteers may be exposed to unnecessary risk 
• trust within the community can be damaged 

Financial controls are not about mistrust. They are about good systems, not individual people. 

What financial controls are (and aren’t) 

Financial controls are: 

• agreed processes for approving and managing money 
• shared responsibilities rather than reliance on one person 
• clear records of decisions and transactions 

They are not: 

• a lack of trust in volunteers 
• overly complex or bureaucratic systems 
• a substitute for good judgement 

Well-designed controls should be proportionate to the size and activities of the P&C. 

Common financial controls used by P&Cs 

Financial controls will vary, but commonly include: 

• requiring two signatories for bank accounts 
• requiring two people for cash counting 
• separating roles (for example, approving spending is separate from making payments) 
• clear delegations and spending limits 
• regular financial reporting to the committee 
• keeping receipts and invoices for all transactions 
• using P&C accounts only (not personal accounts) 

These controls help ensure no one person has unchecked control over P&C funds. 

Implementing financial controls in your P&C 

Good financial controls are usually implemented by: 

• agreeing clear processes as a committee 
• documenting those processes 
• ensuring office bearers understand their roles 
• reviewing controls regularly 

Controls should reflect: 

• the size of the P&C 
• the volume of money handled 
• the types of activities undertaken 

Simple, well-understood controls are often more effective than complex ones. 

Reviewing and strengthening controls 

Financial controls should be reviewed: 

• when new office bearers take on roles 
• if the P&C’s activities change 
• if issues or concerns are identified 
• as part of AGM and annual reporting processes 

Independent financial review or audit can also help identify gaps or improvements. 

Financial controls and trust 

Clear financial controls: 

• protect volunteers by providing clarity and shared responsibility 
• make handover between committees easier 
• reduce the risk of conflict or suspicion 
• support confidence in P&C decision-making 

They help ensure that everyone involved is protected by the system, not exposed by it. 

Related resources 

• Managing P&C money and risk 
• Spending P&C funds 
• Record keeping and reporting 
• Financial review and audit 
• Treasurer guidance 

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