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Separation of Financial Duties
Purpose / To specify the separation of financial duties of name of service.NB. These tasks are also subject to the levels of authority, delegations and priorities set in the ‘Schedule of delegations’ and annual budget of name of service.
Scope / This document applies to all staff, contractors, management and Board members of name of service.
References[1]
Service Documents / Schedule of delegations
Individual position descriptions
Schedule of financial responsibilities
Banking and Cash Handling
Task / Responsibility
Opening mail and receipting the cash/ cheques received
Receipting of all cash received
Preparation of banking
Signature of bank deposit
Deposit of banking
Reconciliation of daily receipts with banking
Periodic bank reconciliation
Certification of bank reconciliation
Custody of cash and cheques
Income
Task / Responsibility
Preparation of receivables invoices
Certification of invoices
Reconciliation of receivables ledger
Verification of reconciliations
Debt write-off approvals
Petty Cash
Task / Responsibility
Authorising reimbursement of petty cash claims/vouchers
Reconciling petty cash balance
Signing petty cash top-up cheque (2 signatories)
Investments
Task / Responsibility
Transfer to and from general, at-call and term deposit accounts
Reconciliation of transfers
Purchases and payments
Task / Responsibility
Raising purchase orders
Verifying receipt of goods or services
Approval of invoices for payment
Signing cheques/approving bank payment (2 signatories) (NB. Cheques are not to be pre-signed for future use)
Payroll
Task / Responsibility
Check of payroll report
Reconciliation with bank debit with any errors followed up
Verification of payroll reconciliation report and bank debit
Attendance fee voucher certification
Staff expense claim – voucher approval
Fixed assets
Task / Responsibility
Fixed asset purchase approval
Fixed asset purchase order approval
Fixed asset delivery acceptance check
Fixed asset invoice certification
Fixed asset voucher certification
Fixed asset register update
Security of accounting system
Task / Responsibility
Accounting systems daily back-up
Weekly off-site back-up storage
Monthly history file back-up
Annual archive back up safe deposit
Financial reporting to the Board
Task / Responsibility
A report prepared (state period, e.g. monthly) to include the following:
· Reconciled bank statements
· Profit and Loss statements
· Balance Sheet statements
· Budget vs actual monthly expenditure
The financial report is to be checked for accuracy by the Treasurer and tabled at Board Meetings.
Consultation
Group/Role / DateVersion: / V1 / Issue Date / 040614 / Created by: / GSHarnisch
Review Date / 010617 / Authorised by: / NRA Working Group