COMMUNITY TRANSPORT POLICY PAPER

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Nov 10, 2013 (3 years and 7 months ago)

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Ad
opted October 1994

Updated October 2011

1






COMMUNITY TRANSPORT

POLICY PAPER



SUBJECT:

FINANCIAL ACCOUNTABILITY STANDARDS







CONTENTS:


1.0

PREAMBLE


2.0

CONTEXT


3.0

PURPOSE OF FINANCIAL ACCOUNTABILITY STANDARDS


4.0

FINANCIAL AC
COUNTABILITY STANDARDS






Ad
opted October 1994

Updated October 2011

2

FINANCIAL ACCOUNTABILITY STANDARDS


1.0

PREAMBLE


This Policy Paper has been updated by

Transport for NSW
to provide policy
advice to organisations funded through the Home and Community Care
(HACC) Community Transport Sub
-
program a
nd the NSW Community
Transport Program (CTP) about the
minimum
financial accountability
standards required by organisations.


2.0

CONTEXT


2.1

Transport for NSW
provides funding to a range of community transport
organisations. These include independent community
based organisations,
local government authorities and other statutory authorities.


2.2

These standards are to provide a minimum set of financial accountabili
ty
standards for funded organisations.

They
are not designed to replace
financial accountability s
tandards required through other statutory
directions
.

(eg. Department

of Local Government financial standards for
local Councils, Treasury Directions for Statutory Authorities).


2.2

For the purposes of accountability of grant funds these standards have
been

developed to provide a framework for all services to work within.



3.0

PURPOSE OF FINANCIAL ACCOUNTABILITY STANDARDS


3.1

Detailed financial accountability standards through internal controls
minimise the opportunities for fraudulent activities to occur within a
n
organisation.

For more information see
Policy and Procedures for Dealing
with Fraud and Corruption.


3.2

Transport for NSW
provides funding to organisations to provide community
transport services. Depending on the organisation, the Management
Committee

or C
hief Executive Officer has the legal responsibility to ensure
that these funds are expended in accordance with conditions

of funding

and
in accordance with generally accepted accounting standards.



4.0


FINANCIAL ACCOUNTABILITY STANDARDS


4.1

Transport

for NSW
expects that these financial accountability standards are
to be seen as a minimum set of standards for an organisation.


4.2

Transport for NSW
encourages organisations to consult with their auditors to
develop appropriate standards to enable them to m
eet the operational needs
of their organisation, yet provide appropriate standards of accountability.


4.3

The minimum financial standards expected by the
Department

are:


Ad
opted October 1994

Updated October 2011

3

a)

The financial management of the Community Transport organisation is
the respo
nsibility o
f the Management Committee
. The Manager, together
with the Treasurer, is responsible for the day to day financial
management of the organisation and the supervision of other team
members who shall carry out financial tasks as directed. The Treasurer is
to
ensure that a proper accounting reporting system is in place in
accordance with audit requirements.


b)

An annual budget shall be developed by the Treasurer in consultation
with
appropriate

team members for presentation to the Management
Committee

in the fir
st month of the new financial year.


c)

Monthly and other financial statem
ents shall be presented by the
Treasurer to the M
a
nage
ment
Committee

for endorsement. The
Treasurer
sho
uld highlight any issues requiring consideration
by the
Management

Body includin
g approval o
f paym
ents and planned
expenditu
re.


d)

There needs to be documentation of financial del
egations for the
Management Committee

and
appropriate
staff. This needs to be
approved by the Man
a
gement Committee

and adhered to.


e)

The Manager can be delegate
d to expend funds to
an amount a
s
determined by the Management Committee

with exceptions being
replacement vehicles over a certain amount
(
a
s determined by the
Management Committee
)

and major plant items.
For
expenditure

above
the delegated amount, c
heques

shall be signed by a minimum of
2
authorised persons
, one being a Man
agement Committee

representative
.
Two paid staff should not sign the cheques of the organisation.
Electronic
transfer
s

require two passwords.



f)

Blank cheques must

never be signed.


g)

All
payments should be in accordance with t
he approved budget and shall
be
authorised in writing.


h)

All monies disbursed and received shall be recorded and
debited/deposited in the relevant bank accounts.


i)

A separate cash receipt and cash payment book, or an e
quivalent
computerised financial
management

program shall be kept.


j)

A
n employee rather than a volunteer

should
check that cash collected by
drivers reconciles to the expected total collection per the daily roster.


k)

Ensure that receipts are issued for all
cash collected. This includes
passenger fares and cash donations.


l)

All payments (except petty cash) including volunteer reimbursements
shall be made by electronic funds transfer or cheque.


Ad
opted October 1994

Updated October 2011

4

m)

Ensure that all monetary
transactions

authorised by appropriate
pe
rsonnel and are ratified at
management c
ommittee meetings.


n)

Inv
oices
or similar documentation received
should be
authenticated prior
to payment

and

filed securely
in cheque number
or voucher order.


o)

An imprest system of petty cash shall be used with a flo
a
t amount as
determined by the M
an
agement Committee
.


p)

Any arrangements entered into formally with other bodies should be
documented, and updated as necessary. These arrangements need to be
approved by the
Management Committee
.


q)

An assets register recordin
g a description of the goods, the date of
purchase,
serial number, where purchased, cost, source of funding

and
disposal date

shall be maintained for all equipment over $300.


r)

An annual audit shall be undertaken by a qualified auditor appointed by
the Man
agement
Committee
.
Transport for NSW
Audit Package shall be
used for this purpose. The Treasurer will present the audited report on the
financial
position of the organisation
at the Annual General Meeting.



5.0

HUMAN RESOURCES


5.1

The following human resources i
ssues need to be incorporated in an
organisation’s financial accountability standards.


a)

Establishment of a personnel file for each employee.


The file should contain approval of the current grade, a duty statement
agreed to by the employee and a record of
annual sick leave and
superannuation entitlements.


Any deductions made from employee wages should also be recorded,
and approved
by the employee.


The personal file should also record any variations in the employee pay
as a result of any payroll deductio
n or salary increase. These records
need a date of commencement and need to be duly recommended and
authorised. These records also need to be available for audit purposes.


b)

All employees need to complete and sign salary time sheets. These
should be checked

and authorised by the
Manager
.
The
Manager’s

time
sheet

should be authorised

by the Treasurer or their nominee, when not
available.



Acknowledgement

Section 4.0 of this policy was
sourced from the CTO Policy and Procedure Manual.