MITCHELLS PLAIN SKILLS CENTRE (MPSC)

2015 – 2018

AUTHOR: Frank G Fredericks

REVIEWED BY: MPSC Board of directors

DATE REVIEWED: April 2015

VERSION: 1

DISCLAIMER:

This document was prepared by the author and copyrights are reserved. It is the duty of the employee to familiarize himself / herself with all relevant policies and procedures. Non-compliance to this policy will lead to corrective measures being initiated.

AUTHOR: Frank G Fredericks

REVIEWED BY

: MPSC Board of directors

DATE REVIEWED: April 2015

TABLE OF CONTENTS

CONTENTSPAGE

  1. Introduction and Scope3
  2. Policy Objectives3
  3. Other Relevant Policies/Documents3
  4. Principles of Payments3
  5. Policy and Procedures4
  6. Time Frames of Payments5
  1. INTRODUCTION AND SCOPE
  2. This document provides the policies and procedures relating to:

(i)Creditors Payments

(ii)Statutory Payments

(iii)Cash Flow Management

(iv)Time Frames of Payments

This document outlines the procedures to be followed in each of the above activities. Any deviations from these procedures need to be approved by the Executive committee.

2.POLICY OBJECTIVES

2.1To ensure the following

(i)All payments are properly authorised and that they do exist

(ii)Payments to suppliers are timeously done

(iii)There is proper management of cash transfers

(iv)Authorisation for payments is done as per delegated Company

3.OTHER RELEVANT POLICIES

3.1The payments policy is also subject to other policies that deal with:

(i)Procurement policy

(ii)Policy on official signing powers and delegation of Company

4.PRINCIPLES OF PAYMENT

4.1All payments shall be made from the Company’s bank account and only in respect of

(i)Amounts payable in terms of relevant legislation and the manual

(ii)Amounts approved through the budget or otherwise, by the Company within its objects and general powers for proper and efficient administration

(iii)Adherence to a contractual commitment

(iv)An advance in respect of travelling and subsistence allowances, authorised under appropriate conditions by the CHAIRPERSON for the payment of essential expenses

4.2Each payment, except a petty cash disbursement, shall either be made by means of a cheque, drawn at intervals as directed by the OFFICE ADMINISTRATOR or by means of Electronic Funds Transfer (EFT) system, on the banking account in the name of the Company, with a registered bank in South Africa

4.3Expenditure approved by the CHAIRPERSON must adhere to the following procedures:

(i)The item must be within the approved budget of MPSC

(ii)It must be a normal routine expenditure of MPSC

(iii)It must not be related to the CHAIRPERSON

(iv)It must be within the approved limit

(v)The CHAIRPERSONmust approve the actual payment

4.4Cheques shall be signed on behalf of the Company, by two persons authorised for that purpose by the Board.

5.POLICY AND PROCEDURES

5.1Creditors Payments

(i)Invoices are submitted to the relevant managers for recommendations and authorisation. The invoices will be returned back to finance for processing within one week

(ii)Upon receiving of approved invoices, Administrator will match invoices to orders/contract and process them if satisfactorily

(iii)The Administrator will prepare a payments requisition and submit to the delegated official who will review them and submit them to the Data Capturer to loadinto the system. The administrator checks to ensure that the invoice number/amount and account codes correspond to the captured data. The administratordoes the posting in the GL, captures payments from the age payables in the Nedbank electronic system. The administrator then prints the audit report and attaches the age payables and submits to the chairperson for verification. The CHAIRPERSON who then approves same for authorization and payment is done electronically both by the OFFICE ADMINISTRATOR and CHAIRPERSON. The authorization is prescribed by the Policy for Delegation of Authority.

(iv)Electronic transfers:

(a)Payments are loaded in the system and submitted to the OFFICE ADMINISTRATOR for verification and first release and to CHAIRPERSON for final approval and release

(b)Proof of payment will be printed and faxed to the supplier by the Finance Administrator

5.2Statutory Payments

(i)The Finance and Admin Officer will ensure that the Employment Tax and UIF are paid as per the statutory schedules

5.3Cash Flow Management

(i)The OFFICE ADMINISTRATOR should ensure that there is always enough funds in the bank account before payments are processed and should always ensure that there are no unauthorised overdrafts

(ii)The OFFICE ADMINISTRATOR should also ensure that funds are available before payment is due

6.TIME FRAMES OF PAYMENTS

6.1Established Suppliers

(i)Administrator should make payments within 30 days upon receipt of correct authorised invoices.

6.2S&T Claims and Cellphones Reimbursement

(i)Payments of S&T’s will be reimbursed on a weekly basis and cellphone reimbursement will be paid monthly.

This document replaces any previous policies. It is the duty of the employee to familiarize himself / herself with all relevant policies and procedures.

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