GUIDE TO FINANCIAL MANAGEMENT AND DELEGATIONS POLICY TEMPLATE

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10 Νοε 2013 (πριν από 3 χρόνια και 11 μήνες)

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1


Human Services Quality Framework


Standard 1 (
Governance and management)







GUIDE

TO

FINANC
I
AL

MANAG
E
MENT

AND

DE
L
EGATIO
N
S

POLICY

TEMPLA
T
E



AB
O
UT
TH
IS POLICY

AR
E
A


This policy guides how

the organ
i
sat
i
on

contr
o
ls and safe
g
uards its

finances and

manages
financial systems.


A wr
i
tt
e
n f
i
nanc
ia
l
ma
na
geme
nt

an
d
delega
t
i
o
ns
polic
y
will assist in meeting the requirements
of
S
t
a
n
dar
d
1

(
Go
v
er
n
a
nce
a
nd
management
)
, Indicator 4
.





Standard

1


governan
c
e a
n
d
management

Sound
governance and management systems that maximise outcomes for stakeholders


Indicator 4:

The organisation’s management systems are clearly defined, documented

and monitored and (where appropriate) communicated including finance, assets and risk.




Policy
c
h
ecklist

The fo
llo
w
i
ng
c
h
ec
k
lis
t w
i
ll h
el
p you

c
h
ec
k th
a
t

a
n
e
x
is
t
i
ng
polic
y

co
v
er
s th
i
s
area
adequately.


The
polic
y
s
h
o
u
ld:



sa
y
w
ho

w
il
l
b
e
respo
n
sibl
e f
o
r f
i
na
ncia
l
ma
na
g
e
me
nt



e
x
plai
n

h
o
w f
i
nanc
ia
l
sys
t
em
s w
il
l
b
e
es
ta
blis
h
e
d
a
nd
ma
n
a
ged



say h
o
w
delegations of

authority

f
o
r f
i
nancial decisions will be docum
e
nted



s
h
o
w h
o
w

t
he
orga
n
isa
t
io
n

w
il
l
b
e

pro
t
ec
t
e
d f
r
o
m fr
a
ud
a
nd

f
i
nanc
ial

mismanagement



conta
i
n c
l
ear procedures and

act
i
o
n
s



i
nd
i
cate the t
i
m
i
ng of
a
ny a
c
t
i
ons



show when

it was app
r
oved



show
when

it was last
r
e
viewed.



COMPLETING YOUR

FINANCIAL MAN
A
GEMENT A
N
D DELEGATIONS POLICY


Usi
n
g the

poli
c
y templa
t
e

The template provides some example state
m
ents.

You can

adapt
th
ese statements and
i
n
cl
ude th
e
m
i
n

your

po
l
ic
y
o
r wr
it
e your
ow
n

statements

to better
sui
t

the oper
a
t
i
ons and
services of

your organ
i
sation.


The
polic
y

t
empla
t
es

include
red text

prompts to insert
i
nfo
rma
t
io
n

th
a
t
i
s

speci
f
i
c to
yo
ur
orga
n
isa
t
io
n.


There are also instruction sections, in
blue italics
, such as:


2


Human Services Quality Framework


Standard 1 (
Governance and management)



Refer to
the induction of governing body policy template guide

for questions
and/or examples to consider when customising this section.



When

you
h
ave comp
le
ted the po
li
cy temp
l
ate,

d
e
lete all the coloured text.


For fu
r
th
e
r
i
nfo
rma
t
io
n
o
n

us
i
ng
th
e
polic
y
g
u
ides
,

re
f
e
r
t
o the
i
nfo
rma
t
io
n

i
n
Us
ing
t
he
policy t
e
mp
l
ates and

g
u
ides
.



Guideli
n
es

for

ea
c
h
s
ection

of

your

poli
c
y


1. Purpose

When ident
i
fying the p
u
rpose of the policy, consider how it might app
l
y to a
c
counts and
f
i
nanc
i
al management
s
ystems.

Y
o
ur organ
i
sa
ti
on

may h
a
ve particular stakeholders that you
are accoun
t
able to for eff
e
ctive f
i
n
a
ncial management,

particu
l
a
r
ly if

you

raise public fun
d
s
on a regular basis or
m
aintain trust accounts.


2. Scope

To determine the scope

of the poli
c
y, c
o
nsider the following questions:




Does
t
h
i
s
p
ol
i
cy app
l
y
t
o a
l
l your organ
i
sation’s accounts
a
nd

financial systems?



Does
t
h
i
s
p
ol
i
cy app
l
y
t
o a
l
l staff?



Does
t
he organ
i
sat
i
on ma
i
nta
i
n

any acco
u
nts

(su
c
h as tr
u
st
f
u
n
ds) t
h
at have

sp
e
c
i
f
i
c
guidelines and procedures?


3. Policy
s
tatement

If you are adopting the

policy statement in the

template, consider wh
e
ther there any
add
i
t
i
onal comm
i
tments your

organ
i
sat
i
on w
a
nts to mak
e
.


In
i
dent
i
fy
in
g the

act
i
o
n
s your

organ
i
sat
i
on
w
il
l

take to

impleme
nt

th
i
s

polic
y,

you
s
h
o
u
ld
i
n
cl
ude the

f
ollo
w
i
ng:




mai
nta
i
n
i
ng
appropria
te
record
s
o
f f
i
nanc
ia
l tr
a
n
sac
t
io
ns
a
nd
acco
u
nt
s th
a
t

compl
y

w
i
th
the
A
ustralian account
i
ng
s
tandar
d
s



implementing a

syst
e
m of appro
v
als for financial transactions



documenting delegations of

au
th
ori
ty for
appro
v
i
ng f
i
nan
ci
a
l
e
x
pe
nd
i
ture



ensuring s
a
feguards a
r
e in place to p
r
event

f
r
aud and financial mis
m
anagement



providing staff

who

are responsible

for
boo
kk
eepi
ng
a
nd f
ina
nc
ia
l
ma
na
geme
nt w
ith
re
le
vant documented

f
i
nanc
i
al procedures.


4. Proced
u
res

The procedures describe how your

organisat
i
o
n

achieves the aims

and goals you

have
o
ut
li
n
e
d
i
n

y
o
ur
p
u
rpose
,

scop
e
an
d
polic
y

s
t
ateme
nt.


4.1 M
a
int
a
ining appropriate records

I
n

describi
ng the
boo
k
keepi
ng
a
nd

acco
unt
i
ng

s
y
s
t
e
m y
o
u w
i
ll us
e
,

co
ns
ide
r the

fo
l
lo
w
i
n
g:




whether the system

will be manual or e
l
ectronic an
d
,

i
f

e
l
ectron
i
c,

w
h
at sof
t
ware

w
i
ll be
used



use of
the

s
tandard
c
h
a
rt of a
c
cou
n
ts



meeting Australian accounting st
a
ndards



ensuring

that bookke
e
ping and a
s
sociated activi
t
i
es such

as payroll and t
a
xation
complia
nce

ar
e und
er
t
a
k
e
n

b
y

appropria
t
e
l
y

s
k
il
l
e
d
a
nd
qua
l
i
f
ie
d
s
t
a
ff. D
epe
nd
i
ng

o
n

t
he
size and c
o
mplexity of your

organ
i
sat
i
on’s ac
c
ount
s
, you may need
t
o have th
e
m
3


Human Services Quality Framework


Standard 1 (
Governance and management)



overseen by a qualified account
a
nt.

Some organisations may also outsource particular
aspects of financial management and this should be identified.



accounting methods and procedures may in
clude sub
-
headings, such as: bank accounts,
monthly financial statements, financial accountability reporting to funding bodies, annual
audit, income (processes for receipting, handling cash on premises, etc)



4.2 Appr
o
v
a
ls and

delegations

D
escrib
e t
h
e
mai
n

f
eat
ur
e
s
o
f your

f
i
nanc
ia
l
delega
ti
o
n
s
.
T
h
i
s
ma
y
i
n
vol
ve the fo
l
l
o
w
i
n
g:




a broad de
s
cription of

what level or type
o
f

expenditure needs to be

approved by the
board or management

committee



wh
a
t
le
v
e
l
o
r ty
p
e
o
f

expe
nd
i
ture
ma
y

b
e

appr
o
ved by spe
c
ified staff
p
ositions



what positions are s
i
gn
a
tories to cheques



how expenditures are approved (in
c
l
u
di
ng
ele
c
tr
o
n
i
c tr
a
n
sac
t
io
ns)



how

ch
a
nges to delegations are approved



petty c
a
sh
s
ystems
a
nd how these

are to be

u
s
ed (
i
f your

organ
i
sat
i
on h
a
s a c
o
mp
le
x
system for

petty c
a
sh

or complex reimbur
s
e
m
ent systems for expenditure by staff or
board/man
a
gement c
o
mmittee m
e
mber, this

s
h
o
u
l
d
b
e
de
ta
i
l
e
d
i
n

a
separa
te
procedure).


If

your

f
i
n
a
ncial systems and

delegat
i
ons are complex,

you

may n
e
ed to detail the
delega
ti
o
ns
i
n

a
speci
f
i
c
c
h
ar
t th
a
t

i
s
ei
th
e
r
a
tt
a
c
h
e
d to

th
i
s
polic
y
o
r f
i
l
e
d
else
wh
ere.


4.3 Obtaining Quotes and calling tenders

This identifies clear guidelines about what is required for any particular value of purchase
,
and is
important in maintaining transparency and fairness in business dealings.

For example:




When spending
up to $200.00

for an item or aggregate of same items, no quote
required.



When spending between
$201.00
-

$1000.00

for an item or aggregate of same items,
obtain two verbal quotes.



When spending between
$1001
-

$5000.00

for an item or aggregate of same items,
obtain two written quotes.



When spending between
$5001.00
-

$20,000

for an item or aggregate of same items,
obt
ain three written quotes.



When spending
over $20,000

for an item or aggregate of same items, call for tenders.


Amounts can be altered depending on your organisation’s expenditure patterns and
complexity. Larger organisations that tender frequently should

also develop tender
procedures (can be in a separate document). Relevant sections can then be included in any
tender documents, and are important in demonstrating fair process in the event of any
challenge by unsuccessful tenderers.


4.4 Debit/Credit Card
s

Many organisations use debit or credit cards in place of petty cash arrangements and

to
facilitate on line bookings and purchases. These may be allocated to specific positions or
there may be a debit card available for use by several staff.

Due to their
nature, it is
important to have strict controls.

Cards should have an overall limit as well as a single transaction limit, relevant to the overall
financial delegation of the card holder.

List these limits in your policy.

Identify the process for allocatio
n of cards, including training in the process and
acknowledgement of conditions.

Identify the process and responsibilities for reconciling card accounts each month

4


Human Services Quality Framework


Standard 1 (
Governance and management)




4.5 Payroll

Identify the various source documents you use to calculate pays (timesheets, sa
lary
packaging documents, leave forms, claim forms), processes for submission.

How are any discrepancies dealt with?

Who is responsible for entering pay information and calculating pays?

How are salaries paid (generally electronic transfer)and who is respo
nsible?

How is pay advice provided?



Are there processes for special claims such as leave, mileage?


4.6 Tax Obligations and Superannuation


For example:




Tax installments must be deducted for all payment
s of salary in accordance with
de
tails
provided by
employee via T
ax
Declaration Form.



Payment Advices covering the preceding year are to be provided to ATO by 21
st

July
annually. These should include any “grossing up”

of salary packaging component
relevant to the FBT year.



A
t the end of each month a cheque

must be drawn

and sent to cover the month’s
superannuation.



On a monthly basis, the ATO must receive the agency’s group taxation payments.

An
accurate sum of taxation held for the month period must be recorded and forwarded to
the ATO.


4.7 GST and FBT
Requirements

For example:




All taxation paid for goods and services must be acc
urately recorded on an ongoing
basis as part of all receipting and accounting purposes.



Monthly reporting to the ATO re GST expenditur
e will be made with claims for
reimburseme
nt of GST components of expenditure for the organisation’s standing as

a
charitable and public benevolent body

(if you have this status)
.

Who is responsible for
preparing the BAS?



Fringe Benefit reporting to ATO will be made on an an
nual basis, the fringe

benefit
year
being from 1
April to 30 March.


4.
8

Pr
e
vent
i
ng fraud

a
n
d f
i
nan
c
ial mi
s
m
a
nag
e
m
ent

Describe the main features of

how you safeg
u
ard your

f
i
nances. This

should include:




following

procedures

for obtaining and

doc
u
menting a
p
proval for
expenditure

detailed in

section 4.2



mon
e
y receipt
i
ng,

banking and reconciliat
i
on

processes for mon
e
y received by t
h
e
organisation. This should include some separation of duties



mon
i
tor
i
ng and
c
heck
in
g of acc
o
u
n
ts a
n
d b
a
nk reconc
il
iations



f
i
nanc
i
al
report
i
ng to
se
n
i
or staff



financial reporting to

the board or

management committ
e
e



the role of the treasur
e
r in check
i
ng financial records and

reports.


4.
9

Pr
o
viding docu
m
e
nted procedures

D
escrib
e w
ha
t

proced
u
r
e
s w
il
l
b
e
doc
u
me
nt
e
d

i
n

de
ta
i
l for
s
t
a
f
f
,

an
d

w
h
ic
h

s
t
a
ff w
il
l use
these proc
e
dures.

These may include the

foll
o
wing:




money
-
h
an
d
li
ng procedures for

s
t
aff co
lle
c
t
ing or proce
s
sing money (receipting,
ba
nk
i
n
g
,
reco
nc
ili
n
g)

5


Human Services Quality Framework


Standard 1 (
Governance and management)





boo
kk
eepi
ng
i
n
s
t
r
u
c
t
io
ns f
o
r
s
t
af
f
e
nt
eri
ng f
ina
nc
ia
l tr
a
n
sac
t
io
ns
i
nto

the
accoun
ts



petty c
a
sh

procedures

for all staff

using petty

cash



month
l
y m
o
n
i
tor
i
ng and

check
i
ng

p
rocedures
f
or the trea
s
urer.





5. Other

related poli
c
ies a
n
d d
o
cume
n
ts

L
is
t

the
o
t
he
r
poli
c
ie
s
r
ela
t
e
d to t
h
e f
i
nanc
ia
l
ma
na
geme
nt

a
nd
delega
t
io
ns
pol
i
c
y. The
policy
should be link
e
d

to:




asset man
a
gement policy



budget

policy



organisational authority policy



Any other detailed work instructions relating to financial processes



Delegations/Financial delegations register



Annual Audit documents



Finance
related forms (purchase orders, payment vouchers, etc)



Pay related forms (timesheets, leave applications, claim forms)



Credit/Debit card conditions of use/agreement form (if relevant)


6. Rev
i
ew

processes

C
onsider h
o
w

oft
e
n the

policy should be

reviewed
and

the

process for

doing this:




fr
e
quen
c
y

of
r
ev
ie
w:

Most po
li
c
i
e
s benef
i
t

from an
an
nual review. The experience of
implementing the policy is used to

dec
i
de wh
i
ch
c
hanges

are necessary.

Cons
i
der
rev
i
ew
i
ng your f
i
nanc
ia
l management a
n
d de
le
g
a
tions
policy as part

of an annu
a
l review
o
f

y
o
ur

orga
n
isa
t
io
n’s
go
v
er
n
a
n
ce
-

a
nd
accou
nta
bili
ty
-
r
e
l
a
t
e
d
polic
i
e
s
or
,

i
f y
o
ur
organisation is small, perhaps over

a thre
e
-
year period. Critical incidents m
a
y pr
o
m
pt
you to

rev
i
ew
t
he po
li
cy ahead of s
c
hedu
le
.



respons
i
b
i
lity for t
h
e rev
i
ew:

In most organisations, the

senior staff
a
nd/or b
o
ard or
management committ
e
e would be

responsible

for rev
i
ewing this policy.

In a large
organ
i
sat
i
on, a

mana
ge
r of f
i
nan
c
es or adm
i
n
i
strat
i
on manager w
o
u
l
d a
l
so be
i
nvo
l
ved.



proc
e
ss for the r
e
vi
e
w
:

D
ecid
e wh
ic
h
par
t
ic
u
la
r
s
t
a
f
f
,

vol
unt
eers
,

e
xt
er
n
a
l
peopl
e
a
nd
orga
n
isa
t
i
o
ns

w
il
l
pro
v
ide
i
n
p
ut to

the
polic
y

re
v
ie
w.



decis
i
on
-
making

p
r
ocess:

W
ho w
il
l
re
v
ie
w

dra
ft
c
h
a
n
ge
s to
t
he
polic
y
a
nd
appro
ve
c
h
a
n
ges
?
W
h
a
t w
il
l
b
e the t
ime
fr
am
e for the
re
v
ie
w

process?



doc
u
m
e
n
t
ation and

communi
c
a
tion:

W
h
a
t records of

the policy review process are
needed? How

will changes to

t
he
p
ol
i
cy be c
o
mmun
i
cated to
s
taff
im
p
l
ement
i
n
g the
policy? In

a small org
a
n
i
sat
i
on,

this may be
a
s s
i
mp
l
e as not
i
ng

the

changes at a

staff
meeting. In a larger organisatio
n
,

an email
m
e
mo may be needed.



key

quest
i
ons

for
t
he

rev
i
ew:

Is

the

policy being implemented? A
r
e procedures being
follow
e
d? Is the

policy clear? What has c
h
ang
e
d th
a
t

may

prompt a
ch
ange to

the

policy? Have particular stakeholders had d
i
ff
icul
ty w
i
th
a
ny
aspec
t
o
f

t
he
polic
y?
Can
their concerns be resolved? How d
o
es t
h
e
polic
y

compar
e

w
i
th

t
h
a
t
o
f
sim
i
lar

organisations?