The Pledge to Restore LTD (Australia) & Pledge to Restore Foundation Pty Ltd (Sri Lanka) Financial Policy and Procedure Manual provides the policies and procedures for financial transactions within the business which must be followed by all staff. It also provides guidelines the Foundation will use to administer these policies, with the correct procedure to follow.
Pledge to Restore Foundation Pty Ltd will keep all financial policies current and relevant. From time to time it will be necessary to modify and amend some sections of the policies and procedures, or to add new procedures.
Any suggestions, recommendations or feedback on the policies and procedures in this manual are welcome. Please advise James V Sugumar on james.vadivelu.sugumar@gmail.com
These policies and procedures apply to all employees as per the following financial authorities.
Purpose of the Policy
All finance transactions as noted in this policy are to be authorised by the noted authorised person prior to the transaction being undertaken. This policy is to be read in conjunction with other specific finance policies where relevant.
Procedures
Prior to any of the following finance transactions being undertaken, the authorising person noted must authorise the transaction. Where additional policy is noted, this policy must also be adhered to when undertaking the finance transaction.
Bank Account Policy
This policy sets out the requirements for use of bank accounts, including opening, closing authorisation, variations to terms and conditions, reconciliation of bank accounts and bank account transactions.
Opening Bank Accounts
All bank accounts to be opened for the business must have the authorisation by the Lead Consultant A. For each new bank account opened, the financial system must be updated, and the bank account registered by the Chief Financial Officer.
Bank Account Authorisations
For monies withdrawn from any bank account, whether by cheque, EFT or other online payment method, there must be TWO persons to authorise payments. One shall be the CFO.
Each payment made must be supported by third party vendor invoice, Vendor receipt, Budget, Quotation, Proforma Invoice or other appropriate documentation and the authorisations must be attached to this documentation prior to payment.
Closing Bank Accounts
Where it is decided that a bank account is no longer necessary, the LC will authorise the closure of the bank account.
The CFO will then be required to complete the following:
- ensure all transactions with respect to the account (including cheques drawn) have been completed;
- lodge with the bank a letter, signed by the authorised signatories advising of the closure of the account,
- meet the bank’s requirements with respect to account closure; and
- update the financial system and bank account register.
Bank Account Transactions
All cash receipts and monies received by the Directors or Officers must be banked within ONE day from receipt. The CFO must be advised and provided the deposit details immediately.
Unallocated direct deposits of more than one month must be investigated fully to determine source of deposit. Where the source cannot be identified, the deposit will be allocated to a suspense account to keep these funds separate and identifiable.
Cheques outstanding for more than three months in line with banks policy will be reallocated back to the business through the financial system.
Where a payment stop on a cheque is required, this will be authorised by the CFO.
The CFO will be responsible for carrying out the following duties regarding payment stop on a cheque:
- ensuring the cheque has not already been presented at the bank
- getting authorisation to action the stop payment using appropriate forms from the bank
- ensuring the bank receives notification of the stop payment notice
- receiving confirmation of action from the bank of the stop payment
- ensuring the details of the stop payment are kept in the stop payment folder.
Petty Cash Policy
Petty cash should be used to pay for small business expenses up to SL Rupees 5,000 (Five thousand Rupees) where payments through accounts payable or credit card are not justified or appropriate.
Petty cash vouchers must be completed before any cash is taken from the petty cash float.
Only up to Rs 1,000 can be disbursed at any one time. All petty cash vouchers issued must be approved by the CFO. Once the petty cash is spent, a receipt or invoice should be attached to the voucher and returned to petty cash with any balance of monies unspent.
All completed vouchers must have the following details included:
- Issue date of voucher
- Name of person issued the voucher
- Amount of monies disbursed
- Details of expense
- Tax invoice or receipt
- Signature of approval person.
Petty cash float is to be reconciled monthly by the Petty Cashier.
All petty cash expenditure must be entered into the financial system once the petty cash has been reconciled.
The balance of monies and vouchers must equal the petty cash float amount before reimbursement can be made.
Reimbursement of petty cash will be authorised by the CFO.
Purchasing Policy
This policy provides guidelines for the purchase of goods, services, and assets for the business.
This policy is applicable for all purchases over Rs 5,000. Where items to be purchased are less than Rs 5,000, then the petty cash policy is to be used
All purchases for business items must be pre-approved by an officer with the appropriate level of financial delegation. A Purchase Requisition Form must be completed and forwarded to the CFO who will indicate availability of budget allocation. CFO then pass the Requisition to the Lead Consultant to approve the expense to be incurred.
All items over the value of Rs 5,000 must be supplied by authorised vendors. For items over the value of Rs 5,000 three quotations must be provided.
A request for purchase must address the following criteria:
- Reason for the Purchase
- Value for money considerations
- Conflict of interest with the Officer purchasing
- Any fraudulent activity of commission suspected
A Company Purchase order must be issued by Accounts Officer after the Requisition is approved.
All authorised purchase orders are to be copied and one distributed to accounts payable with estimated payment date to check receipt of purchase against the purchase order when received.