FINANCE PROCESS CONTROL MANUAL - Volta River … Policies/Finance Branch... · Process Control Manual for Finance Volta River Authority CONTROLLED DISCLOSURE TABLE OF ABBREVIATIONS

Process Control Manual for Finance

Volta River AuthorityCONTROLLED DISCLOSURE

Compiled by:

Functional Responsibility:

Accountable

Authorised by:

Document Number:

Document Location

Revision History

Revision date Summary of Changes

Document Reviewers

Name Title

Alexandra TotoeDeputy Chief Executive,Finance

Samuel Gyawu Director Finance

Manager, Treas

George Abrampah Project Team Lead (Finance)

Compliance with this Process Control Manual is mandatory throughout Volta River Authority

FINANCE

PROCESS CONTROL MANU

PricewaterhouseCoopers

Deputy Chief Executive, Finance

Director, Finance


FIN/01/2012

Server location...

Summary of Changes

Date of Issue

Deputy Chief Executive,

Director Finance

Manager, Treasury

Project Team Lead (Finance)

APPLICABILITY


1

FINANCE

PROCESS CONTROL MANUAL

Changes marked

Version




TABLE OF ABBREVIATIONSAbbreviation Definition

AP

APO

BoD

CE

CWIP

DCE, E&O

DCE, F

DCE, S

DE

DF

DF

DL

DP

FAM

FAS

GL

IF

IN

MOE

MOFEP

OIC

PAA

PF

PFM

PM

PR

RV

TM

TABLE OF ABBREVIATIONSDefinition

Accounts Payable

Accounts Payables Officer

Board of Directors

Chief Executive

Capital Work-In-Progress

Deputy Chief Executive, Engineering and Operations


Deputy Chief Executive, Services

Director Engineering

Director Finance

Director Finance

Director Legal

Director Procurement

Financial Accounting Manager

Fixed Assets Supervisor

General Ledger

Informed

Input

Ministry of Energy

Ministry of Finance and Economic Planning

Officer-In-Charge

Payroll Accounting Stuff

Project Finance

Project Finance Manager

Project Management

Processing

Review

Treasury Manager

2

, Engineering and Operations



TABLE OF CONTENTS

TABLE OF ABBREVIATIONS................................

Introduction................................................................

Foreword ................................................................

Purpose ................................................................

Scope ................................................................

Information processing objectives ................................

System training requirements ................................

Applicable policies................................

Finance operating model ................................

Single Frame ................................................................

Symbol legend ................................................................

1.0 STRATEGIC MANAGEMENT

Process description................................

Strategic management process flow chart

Strategic management process activity detail

Strategic management key performance measures

Strategic management standard reports

2.0 MANAGEMENT INFORMATION REPORTING


Segregation of duties matrix................................

Management information reporting process activity detail

Management information reporting key performance measures

Management information reporting standard reports

3.0 BILLING PROCESS ................................



Billing process flow chart ................................

Billing process activity detail ................................

Billing key performance measures

Billing standard reports ................................

4.0 RECEIVABLES PROCESS................................

TABLE OF CONTENTS

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STRATEGIC MANAGEMENT ................................................................................................

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Strategic management process flow chart ................................................................

Strategic management process activity detail ................................................................

Strategic management key performance measures ................................................................

Strategic management standard reports ................................................................

MANAGEMENT INFORMATION REPORTING ................................................................

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Management information reporting process activity detail ................................

Management information reporting key performance measures ................................

Management information reporting standard reports ................................................................

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Billing key performance measures ................................................................................................

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Receivables process flow chart ................................

Receivables process activity detail

Receivables key performance measures

Receivables standard reports................................

5.0 RECEIPT PROCESS ................................



Receipt process flow chart ................................

Receipt process activity detail ................................

Receipt key performance measures

Receipt standard reports................................

6.0 PROVISIONS PROCESS ................................



Provisions process flow chart ................................

Provisions activity detail ................................

Provisions key performance measures

Standard reports................................

Provisions process risk and control matrix (RCM)

FIXED ASSETS PROCESSES................................

7.0 FIXED ASSETS - CAPITAL WORK



Fixed assets - capital work-in-progress pro

Fixed assets - capital work-in-progress activity detail

Fixed assets (capital work-in-progress) key perfor

Fixed assets (capital work-in-progress) standard reports

8.0 FIXED ASSETS PROPERTY PLANT AND EQUIPMENT



Fixed assets property, plant and equipment process flow chart

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Receivables process activity detail ................................................................................................

eceivables key performance measures ................................................................

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Receipt key performance measures................................................................................................

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Provisions key performance measures................................................................................................

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trol matrix (RCM) ................................................................

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CAPITAL WORK-IN-PROGRESS................................................................

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progress process flow chart ................................................................

progress activity detail................................................................

progress) key performance measures................................

progress) standard reports ................................................................

FIXED ASSETS PROPERTY PLANT AND EQUIPMENT ................................

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ts property, plant and equipment process flow chart ................................

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Fixed assets property, plant and equipment activity detail

Fixed assets property, plant and equipment key performance measures

9.0 FIXED ASSETS (DONATED)



Fixed assets (donated) process flow chart

Fixed assets (donated) activity detail

Fixed assets donated process risk and control matrix (RCM)

10.0 FIXED ASSETS (TAGGING



Fixed assets (tagging and verification) process flow chart

Fixed assets (tagging and verification) activity detail

Fixed assets (tagging and verification) key performance measures

Fixed assets (tagging and verification) standard reports

Fixed assets (tagging and verification) process risk and control matrix (RCM)

11.0 FIXED ASSETS - RETIREMENT AND DISPOSAL



Fixed assets disposal process flow chart

Fixed assets retirement and disposal activity detail

Fixed assets retirement and disposal key performance measures

Fixed assets retirement and disposal standard reports

Fixed assets disposal process risk and control matrix (RCM)

LOAN PROCESSES................................

12.0 LONG-TERM LOAN ADMINISTRATION



Long term loan administration process flow chart

Long term loan administration activity detail

13.0 LONG - TERM LOAN DISBURSEMENT



Fixed assets property, plant and equipment activity detail................................................................

s property, plant and equipment key performance measures ................................

FIXED ASSETS (DONATED) ................................................................................................

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Fixed assets (donated) process flow chart ................................................................

xed assets (donated) activity detail ................................................................................................

Fixed assets donated process risk and control matrix (RCM)................................

AND VERIFICATION) ................................................................

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Fixed assets (tagging and verification) process flow chart ................................................................

Fixed assets (tagging and verification) activity detail................................................................

Fixed assets (tagging and verification) key performance measures ................................

Fixed assets (tagging and verification) standard reports ................................................................

Fixed assets (tagging and verification) process risk and control matrix (RCM)

RETIREMENT AND DISPOSAL ................................................................

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Fixed assets disposal process flow chart ................................................................

Fixed assets retirement and disposal activity detail ................................................................

Fixed assets retirement and disposal key performance measures ................................

Fixed assets retirement and disposal standard reports ................................................................

Fixed assets disposal process risk and control matrix (RCM) ................................

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TERM LOAN ADMINISTRATION................................................................

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Long term loan administration process flow chart ................................................................

g term loan administration activity detail ................................................................

TERM LOAN DISBURSEMENT................................................................

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Long term loan disbursement process flow chart

Long term loan disbursement activity detail

14.0 LONG TERM LOAN REPAYMENT



Long - term loan repayment process flow chart

Long term loan repayment activity detail

Long term loan loans key performance measures

Long term loans standard reports

15.0 SHORT-TERM LOAN ADMINISTRATION



Short term loan administration process flow chart

Short term loan administration activity

16.0 SHORT-TERM LOAN DISBURSEMENT



Short term loan disbursement process flow chart

Short term loan disbursement acti

17.0 SHORT-TERM LOAN REPAYMENT



Short term loan repayment process flow chart

Short term loan repayment activity

Short term loans key performance measures

Short term loans standard reports

18.0 STAFF LOANS ................................



Staff loans flow chart................................

Staff loan administration activity detail

Staff loan disbursement activity detail

Staff loan repayment activity detail

Long term loan disbursement process flow chart ................................................................

Long term loan disbursement activity detail ................................................................

LONG TERM LOAN REPAYMENT................................................................

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term loan repayment process flow chart................................................................

ng term loan repayment activity detail ................................................................

Long term loan loans key performance measures................................................................

Long term loans standard reports ................................................................................................

TERM LOAN ADMINISTRATION ................................................................

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Short term loan administration process flow chart ................................................................

Short term loan administration activity detail ................................................................

TERM LOAN DISBURSEMENT ................................................................

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Short term loan disbursement process flow chart ................................................................

Short term loan disbursement activity detail ................................................................

TERM LOAN REPAYMENT ................................................................

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Short term loan repayment process flow chart ................................................................

Short term loan repayment activity detail ................................................................

Short term loans key performance measures ................................................................

Short term loans standard reports ................................................................................................

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Staff loan administration activity detail ................................................................

disbursement activity detail................................................................................................

Staff loan repayment activity detail................................................................................................

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Staff loans key performance measures

Staff loans standard reports................................

Staff loans process risk and control matrix (RCM)

INVOICE PROCESSES ................................

17. PAYABLES ................................



Payables process flow chart ................................

Payables activity detail ................................

Payables key performance measures

Payables standard reports................................

18. PREPAYMENTS................................



Prepayments (supplier and contractor) process flow chart

Prepayments (supplier and contractor) activity detail

Staff advances (for business activities) process flow chart

Staff advances (for business activities) activity detail

Prepayments standard reports ................................

Prepayments process risk and control matrix (RCM)

19. PAYMENT PROCESS ................................



Payment process flow chart ................................

Payment activity detail ................................

Payment by cheque sub-process................................

Payment by wire transfer ................................

Payment key performance measures

Payment standard reports ................................

BANK ACCOUNT ADMINISTRATION

20. BANK ACCOUNT CREATION



Staff loans key performance measures ................................................................................................

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Staff loans process risk and control matrix (RCM) ................................................................

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Payables key performance measures ................................................................................................

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ents (supplier and contractor) process flow chart ................................

Prepayments (supplier and contractor) activity detail ................................................................

for business activities) process flow chart................................................................

Staff advances (for business activities) activity detail................................................................

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Prepayments process risk and control matrix (RCM) ................................................................

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Payment key performance measures ................................................................................................

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BANK ACCOUNT ADMINISTRATION ................................................................................................

BANK ACCOUNT CREATION ................................................................................................

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Bank account creation process flow chart

Bank account creation activity detail

21. MODIFYING EXISTING BANK ACCOUNT



Modifying existing bank account process flow chart

Modifying existing bank account activity detail

22. BANK ACCOUNT CLOSING



Bank account closing process flow chart

Bank account closing activity detail

CASH MANAGEMENT................................

23. DAILY CASH MANAGEMENT



Daily cash management activity detail

Daily cash management key performance measures

Daily cash management standard reports

24. BANK STATEMENT RECONCILIATION



Bank statement reconciliation process flow chart

Bank statement reconciliation activity detail

Bank statement reconciliation key performance measures

Bank statement reconciliation standard reports

25. CASH FORECASTING................................



Cash forecasting process flow chart

Cash forecasting activity detail ................................

Cash forecasting key performance mea

Cash forecasting standard reports

Bank account creation process flow chart ................................................................

t creation activity detail ................................................................................................

MODIFYING EXISTING BANK ACCOUNT ................................................................

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Modifying existing bank account process flow chart ................................................................

existing bank account activity detail ................................................................

BANK ACCOUNT CLOSING................................................................................................

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Bank account closing process flow chart ................................................................

g activity detail ................................................................................................

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DAILY CASH MANAGEMENT ................................................................................................

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Daily cash management activity detail ................................................................................................

Daily cash management key performance measures ................................................................

Daily cash management standard reports ................................................................

BANK STATEMENT RECONCILIATION................................................................

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Bank statement reconciliation process flow chart ................................................................

Bank statement reconciliation activity detail ................................................................

Bank statement reconciliation key performance measures................................................................

Bank statement reconciliation standard reports................................................................

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Cash forecasting process flow chart ................................................................................................

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Cash forecasting key performance measures ................................................................

Cash forecasting standard reports................................................................................................

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26. PETTY CASH................................



Petty cash process flow chart ................................

Petty cash advance activity detail

Petty cash disbursement activity detail

Petty cash replenishment activity detail

Petty cash key performance measures

Petty cash standard reports ................................

27. MASTER DATA MANAGEMENT



Master data management process flow chart

Master data management activity detail

Master data management key performance measures

Master data management standard reports

Master data management process risk and control matrix (RCM)

PERIOD CLOSING ................................

28. MONTH END PERIOD CLOSING



Month end period closing process flow chart

Month end period closing activity detail

Month-end period closing key performance measures

Month-end period closing standard reports

29. YEAR END PERIOD CLOSING



Year end period closing process flow chart

Year-end period closing activity detail

Year-end period closing key performance measures

25. SERVICE DELIVERY ................................


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Petty cash advance activity detail ................................................................................................

Petty cash disbursement activity detail................................................................................................

enishment activity detail ................................................................

Petty cash key performance measures ................................................................................................

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MASTER DATA MANAGEMENT................................................................................................

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Master data management process flow chart ................................................................

Master data management activity detail................................................................

Master data management key performance measures ................................................................

Master data management standard reports ................................................................

ta management process risk and control matrix (RCM) ................................

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MONTH END PERIOD CLOSING ................................................................

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ocess flow chart................................................................

Month end period closing activity detail ................................................................

end period closing key performance measures ................................................................

end period closing standard reports................................................................

YEAR END PERIOD CLOSING ................................................................................................

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Year end period closing process flow chart ................................................................

end period closing activity detail................................................................................................

end period closing key performance measures ................................................................

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Service delivery process flow chart

Service delivery process activity detail

Service delivery key performance measures

Service delivery standard reports

Service delivery process risk and control matrix (RCM)

APPENDIX I APPROVAL HIERARCHY

APPENDIX II OVERVIEW OF JOB ROLES

Standard Documents ................................

................................................................................................

Service delivery process flow chart ................................................................................................

Service delivery process activity detail................................................................................................

livery key performance measures................................................................

Service delivery standard reports ................................................................................................

Service delivery process risk and control matrix (RCM) ................................................................

APPROVAL HIERARCHY ................................................................................................

OVERVIEW OF JOB ROLES ................................................................

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Introduction

The purpose of the Finance Process Control Manual (PCM) is to serve as a detailed communication guideline in

delivering consistent and structured Finance

to the Oracle R12 software and are also designed to align processes by functionality.

content from the process models developed during the Business Process Re

Foreword

The PCM was developed based on the scope and nature of business activities in the functional area for which it

is deemed responsible at the date on which the PCM was approved.

Finance Function, there may be certai

recommended that users within the Finance F

interdependencies with other functional areas within the Authority and Externa

to ensure the correct interpretation of its content.

ensure changes in business and regulatory requirements are incorporated into future releases.

Purpose

This document serves multiple purposes including

Establishes detailed procedures for the Authority to follow in executing it’s key finance responsibilities

Provides a reference guide for the Finance Department

Provides as a training manual for new employees

Supports Internal Control Framework

controls

Scope

The PCM covers the scope and sequences of activities, control points and responsibilities required to perform

technical and administrative Finance F

of each Finance process including process measures and reporting requirements.

elements:

Process Flow(s); Activity detail (step-by-step narratives to the Segregation of duties matrix; Key Performance Indicators (KPIs) documented at an Activity Process Flow level and/or for Activities; Key reports documented at Activities or Tasks; Risks and Controls Matrix (RACM) documented at a Sub

level; and Referenced documents such as policies.

The processes covered in the PCM are:

Power Billing

Receivables

Cash Receipt


Finance processes within the Authority. The processes covered are aligned

to the Oracle R12 software and are also designed to align processes by functionality.

content from the process models developed during the Business Process Re-engineering project.


is deemed responsible at the date on which the PCM was approved. Even though the PCM is limited to the

Finance Function, there may be certain interdependencies with processes in other functional areas. It

e Finance Function familiarise themselves with the responsibilities and

interdependencies with other functional areas within the Authority and External Regulators

to ensure the correct interpretation of its content. The PCM should be reviewed and updated perio

changes in business and regulatory requirements are incorporated into future releases.

serves multiple purposes including:


Provides a reference guide for the Finance Department

as a training manual for new employees

Internal Control Framework initiatives for documenting key activities and identifying key


Finance Functions. It is intended to provide a holistic view of all the key elements

process including process measures and reporting requirements.

narratives to the process flows);

Key Performance Indicators (KPIs) documented at an Activity Process Flow level and/or for Activities;Key reports documented at Activities or Tasks;Risks and Controls Matrix (RACM) documented at a Sub-Process Flow and/or Activity Process Flow

Referenced documents such as policies.

The processes covered in the PCM are:

11


he Authority. The processes covered are aligned

to the Oracle R12 software and are also designed to align processes by functionality. The PCM is driven by

engineering project.


Even though the PCM is limited to the

n interdependencies with processes in other functional areas. It is thus

unction familiarise themselves with the responsibilities and

l Regulators (where applicable)

The PCM should be reviewed and updated periodically to

changes in business and regulatory requirements are incorporated into future releases.


initiatives for documenting key activities and identifying key


It is intended to provide a holistic view of all the key elements

process including process measures and reporting requirements. It comprises the following

Key Performance Indicators (KPIs) documented at an Activity Process Flow level and/or for Activities;

s Flow and/or Activity Process Flow



Provisions

Fixed Assets

o Fixed Assets-Projects (Capital Work in Progress)

o Fixed assets-non-projects

o Fixed assets ( tagging and verification)

o Fixed assets (disposal)

Loans

o Project loan administration

o Long-term loan disbursement

o Short-term loan disbursement

o Project loan repayment

Staff loans

o Staff loan administration

o Staff loan disbursement

o Staff loan repayment

Invoice processes

o Payables

o Payments

o Prepayments

Bank account administration

o Bank account creation

o Modifying existing bank account

o Bank account closing

Cash management

Bank statement reconciliation

Cash forecasting

Petty cash

Period closing

o Month-end financial reporting

o Year-end financial reporting

Information processing objectives

Processing of finance transactions are appropriately approved

Purchases are approved by appropriate individuals and recorded

Receipts are based on legitimate purchases;

Purchase orders, invoices, goods received notes and inspection notes (where applicable) are properly

matched before payments are made;

Disbursement of organisation funds are properly authori

Access to update, change and delete standing data information is limited to appropriate individuals;

and

There is adequate segregation of authorisation, custodia

System training requirements

The following systems are applicable to this process.

Projects (Capital Work in Progress)

projects ( property plant and equipment)

Fixed assets ( tagging and verification)

)

Project loan administration

term loan disbursement

term loan disbursement

Project loan repayment

tion

Staff loan disbursement

Bank account creation

Modifying existing bank account

Bank statement reconciliation

end financial reporting

end financial reporting

Information processing objectives

Processing of finance transactions are appropriately approved

Purchases are approved by appropriate individuals and recorded on a timely basis;

Receipts are based on legitimate purchases;


matched before payments are made;

Disbursement of organisation funds are properly authorised, recorded and monitored;


There is adequate segregation of authorisation, custodial and accounting functions.

System training requirements

are applicable to this process.

12

on a timely basis;


sed, recorded and monitored;


l and accounting functions.



MS Excel MS Project Online research tools

Oracle

Applicable policies

The following policies and regulations

Financial Accounting manual

and regulations are referenced to this manual.

manual

13



Finance operating modelINSERT FINANCE OPERATING MODELOPERATING MODEL

14


15Volta River AuthorityCONTROLLED DISCLOSURE

Single Frame



Symbol legend

Symbol Legend

Start

Control Reference Point

Approval Process

Decision Point

Manual Input

Manual Process

Automated Process

Referenced Process

Output Document

Pre-defined Workfl

Process Flow Connector

Process End

A

End

Start

CRP Control Reference Point

Approval Process

Automated Process

Referenced Process

Output Document

defined Workflow Routing

Process Flow Connector

16



1.0 STRATEGIC MANAGEMENT

Process description

Overview

This process provides guidance for delivering strategic value to the Authority by the Finance Function

Process Owner


Process Objectives

To ensure control and delivery of value streams to the business.

To provide a framework by which corporate and functional strategies are aligned

Process Scope

This process applies to finance value delivery to the business

Timeframe

N/A

STRATEGIC MANAGEMENT

This process provides guidance for delivering strategic value to the Authority by the Finance Function

To ensure control and delivery of value streams to the business.


This process applies to finance value delivery to the business

17

This process provides guidance for delivering strategic value to the Authority by the Finance Function.




Strategic management process flow chartStrategic management process flow chart

1. DCE,F andrelevant

stakeholdersdefine strategy

for Finance

Function

2. DCE, F setsstrategy actionpoints for each

finance unit

3. DCE, Fcoordinates

implementation of finance

strategy

4. DCE, Freviews

performance againststrategy

5. DCE, F

implementscorrective

actions wheresignificant

variances exist

End

18



Strategic management process activity detail

ActID

ProcessFlow

Responsibility Tasks InvolvedTransactionType(Manual/Auto)

OutputControlRef. Point(CRP)

1. Define Financestrategy

Deputy ChiefExecutive, Finance

Deputy Chief Executive, Finance and relevantstakeholders define strategy for FinanceFunction.

Finance strategy should be aligned to overallstrategy of the Authority and aimed at offeringsupport in achieving corporate strategy

Manual FinanceStrategy

2. Set strategyaction pointsfor financeunits


Deputy Chief Executive, Finance sets strategyaction points for each finance unit aligned tothe overall Finance Strategy

Manual

3. Implementstrategy


Deputy Chief Executive, Finance coordinatesimplementation of finance strategy

Manual

4. Reviewperformanceagainststrategy


Deputy Chief Executive, Finance reviewsperformance against strategy

Manual

5. Implementcorrectiveactions


Deputy Chief Executive, Finance implementscorrective actions where significant variancesexist

Manual

START

END



Strategic management key performance measures

Performance Measure Target Frequency Reviewer Reviewee/ process owner

1 % of strategic goals achieved Per agreed

performance

objectives

Quarterly Chief Executive Deputy Chief Executive, Finance

Strategic management standard reports

SN Report Name Brief Description Purpose SourceReport

FrequencyReviewer

Strategic

performance

report

This report shows actual

strategic performance

against strategic by

finance units

To identify areas and reasons

for significant variances to re-

align performance to strategy

Manual Quarterly Chief Executive



2.0 MANAGEMENT INFORMATION REPORTING

Process description

Overview

The purpose is to describe the activities to be followed to ensure relevant and timely management information

is distributed to identified stakeholders

Process Owner

Director Finance

Process Objectives

To ensure relevant and timely information for management and executive decision making

To ensure the quality of reporting is validated by the relevant stakeholders

Process Scope

This process applies to finance related information that impacts on VRA business performance

Timeframe

N/A

Segregation of duties matrix

Activity / Resources

Generate reports

Review report

Follow up on corrective actions

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

MANAGEMENT INFORMATION REPORTING


to identified stakeholders



related information that impacts on VRA business performance


FinancialAccountingManager

DirectorFinance

Deputy ChiefExecutive,Finance

IN

RV

RV

21




related information that impacts on VRA business performance

Deputy ChiefExecutive,Finance

RV



Management information reporting process flow chartManagement information reporting process flow chart

1. DCE, F andDF engage

stakeholdersto definereporting

requirementsand timetable

2. FAM generatesand reviews relevant

reports

3. FAMforwards reports

generated

outside thesystem to DF

4. DF generates

consolidated reportsand forwards to DCE,

F

5. DCE, F reviews

consolidatedreport and

distributes torelevant

stakeholders for

discussion andfurther action

6. FAM liaiseswith heads ofbusiness unitsto implement

correctiveactions

7. DF reportson follow-up

actions to

DCE,F andother

stakeholders

End

22



Management information reporting process activity detailActID

ProcessFlow

ResponsibilityTasks Involved

TransactionType(Manual/Auto)

Output ControlRef. Point(CRP)

1. Define/ reviewreportingrequirements

Deputy ChiefExecutive Finance

Deputy Chief Executive Finance and DirectorFinance engage relevant internal stakeholdersto define reporting requirements and timetable

(Reporting requirements should be reviewedperiodically, preferably every year)

Manual Reportingrequirements

2. Generate andreview reports


Financial Accounting Manager generate andreview relevant reports

Auto ManagementInformationReport

3. Generatereports

Category Officer For information generated outside the system,e.g. compliance issues, Category Managerforwards report to Director Finance

Manual ManagementInformationReport

4. Generateconsolidatedreports

Director Finance Director Finance generates consolidated reportsand forwards to Deputy Chief Executive,Finance

Auto

5. Reviewconsolidatedreports


Deputy Chief Executive, Finance reviewsconsolidated report and distributes to relevantstakeholders for discussion and further actionwhere applicable.

Manual

6. Implementimprovementactions


Financial Accounting Manager liaises withheads of business units to implement correctiveactions

Manual Documentedimprovementopportunity

7. Report onfollow up

Director Finance Director Finance provides report on follow-upactions to Deputy Chief Executive, Finance and

Manual

START



ActID

ProcessFlow

ResponsibilityTasks Involved


Output ControlRef. Point(CRP)

actions other stakeholders

Management information reporting key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner1. Timely submission of management information

reports

5 working days after

month end

Monthly Deputy Chief

Executive, Finance

Director Finance

2. % of timely implementation Per agreed

implementation plan

Monthly Deputy Chief

Executive, Finance

Director Finance

Management information reporting standard reports

SNReport

NameBrief Description Purpose Source

Report

Frequency

Reviewer

1. Finance

reporting

pack

The reporting pack comprises:

Overview of spend variance against

budget by category and business unit

Overview of spend analysis by

category and business unit

Compliance report highlighting

significant compliance issues

Target cost savings and variance

analysis

Status on follow up actions

To provide executive and

management with relevant

spend information for

information purposes,

decision making and

business performance

review

ERP/ other

relevant data

Monthly/

Quarterly

Deputy Chief

Executive

Finance

Management information reporting process risk and control matrix (RCM)

Key risks

END



1 Management reporting targets may not be achieved

No

.

Su

bP

ro

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ss

Co

ntr

ol

Ob

jec

tiv

e

Co

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Ob

jec

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eC

ate

go

ry

(C,F

,O)

Co

ntr

ol

Ob

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tiv

eT

yp

e(C

,A,V

,R)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

los

ur

e

Fin

an

cia

lS

tate

me

nt

As

ser

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n

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/P

oin

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fF

oc

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us

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Pr

oc

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To

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pr

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(P,D

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Fr

eq

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y(E

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,M,Q

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Pr

oc

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ur

eR

efe

re

nc

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Co

ntr

ol

Ob

jec

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eO

wn

er

1

Management

Information

Reporting

To ensure

reports are

timely and

relevant for

management

use

N/A N/A N/A N/A

Deputy Chief Executive

Finance and Director

Finance engage

relevant internal

stakeholders to define

reporting requirements

and timetable.

Adherence to

management reproting

targets are monitored

quarterly

R P M N/A

Deputy Chief

Executive,

Finance



3.0 BILLING PROCESS

Process description

Overview

The purpose of the process is to describemeters are read at sub-stations to distribution of bills

Process Owner

Billing Officer

Process Objectives

To ensure meters are accurately read To ensure bills are accurately To ensure bills are appropriately approved To ensure bills are dispatched

Process Scope

The process applies to sale of power by the Authority

Timeframe

Aligned to the billing cycle

Segregation of duties matrixActivity / Resources

Convert and input units/adjustmentsGenerate electronic bills

Review draft bill/ adjustments

Approve and sign final bill/adjustments

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

f the process is to describe billing activities. It provides details of activities fromdistribution of bills to customers.

are accurately readand completely computed and recorded in the system

bills are appropriately approveddispatched to customers in a timely manner

sale of power by the Authority

matrixBillingOfficer


BillingApplication

IN

PR

RV

26

. It provides details of activities from the point when

recorded in the system

ApplicationDirectorFinance

PR

AP



Billing process flow chart

Predefinedworkflowrouting

1. Billing Officerpicks meter

reading atGRIDCO’s

marketoperations

2. Billing Officerconverts unitsand rates into

valuestogenerate draft

bill in excel

3. Billing Officerforwards draftbill to FAM for

review and

approval

4a. FAMreviews

draft bills

Ok?

4b. FAMapproves

draft bills

A

5. Billing Officer inputs

approved values intooracle AR to generateelectronic invoice and

a transmittal letter

7. FAM reviewselectronic bills and

recommends forapproval

6. Billing Officer routeselectronic invoice and

transmittal letter toFAM

8. Director Finance

approves and signselectronic bill and

transmittal

A

11. FAM approves andposts transactions to

GL

End

4c. FAMreverts to

Billing

Officer

9a. BillingOfficer

forwards signedbills to registry

for dispatch

10. Registryregisters anddispatches

bills to

customers

9emails final bills to

27

9b. Billing Officeremails final bills to

customers



Billing process activity detail

ActID

ProcessFlow



1. Read meter Customerrepresentative, Sub-station Manager

Sub-station Manager and CustomerRepresentative read meter and confirm theaccuracy of meter readings.

Manual Meterreadings

2. Convert unitsto values

Billing Officer Billing Officer picks meter readings fromGRIDCo’s Market Operations Unit andconverts units and associated rates into valuesin Excel to generate draft bill

Manual Unitsconversionexcelspreadsheet/draft bill

3. Seek approval Billing Officer Billing Officer seeks approval from FinancialAccounting Manager for draft bill

Manual Draft bill

4. Review andapprove draftbill

FinancialAccounting Manager

Financial Accounting Manager reviews andapproves draft bill in excel

Manual Approvedmanual bill

5. Input values Billing Officer Billing Officer inputs approved manual billfrom excel into Oracle account receivablemodule and generates electronic bill/ invoice.A transmittal letter is automatically generated.

Manual ElectronicBill andTransmittalLetter

6. Forward billsfor review

Billing Officer Billing Officer electronically routes bills withthe automatically generated transmittal letterto the Financial Accounting Manager forreview

Auto

7. Review bill FinancialAccounting Manager

Financial Accounting Manager reviews bill andrecommends to Director Finance for approvaland signature

Auto Reviewed bill

START

CRP



ActID

ProcessFlow



8. Approve andsign bills

Director Finance Director Finance approves, signs electronic billand transmittal letter and forwards to registryfor dispatch.

Manual Final bill andtransmittalletter

9. Dispatch bills Billing Officer Billing Officer receives electronic notificationfrom Director Finance and emails final bills tocustomers and requests confirmation of receipt

Manual Email of billsdispatched

10. Register anddispatch bills

Registry VRA registry registers bills and dispatches tocustomers

11. Post toGeneralLedger

Billing Supervisor The Financial Accounting Manager approvestransactions in sub-ledger and posts intoGeneral ledger

Auto

Billing key performance measures

Performance Measure Target Frequency ReviewerReviewee/ processowner

1. Receipt of meter reading to customer billing 5 days Monthly Financial

Accounting Manager

Billing Officer

2. Customer billing to dispatch of bills 2 days Monthly Financial

Accounting Manager

Billing Officer

3. % of error rates in bills generated Zero Monthly Financial

Accounting Manager

Billing Officer

END

CRP



Billing standard reports


Frequency

Reviewer

1. Revenue

segmentation by

generation type

The report comprises of revenue

from the generation types (i.e.

thermal and hydro) for the

month

To recognise revenues

from each generation

type

Giga Watt hours

generated by each

generation type for

the month

Monthly Director

Finance

2. Revenue per

customer

The report provides revenue per

customer and by type of

customer e.g. Government,

private, sector, etc

To analyse percentage of

total revenue contributed

by each customer

Billing Application Monthly Director

Finance

3. Adjustment Report The report provides the details of

adjustments recorded during the

month

To analyse the

adjustments recorded in

subscriber account

during the period and

book in the financials

Billing System Monthly



Billing process risk and control matrix (RCM)

Key risks

1 Invoices may not be recorded properly in Sales & AR

2 Selling price, quantity and terms may be inaccurate leading to erroneous sales and receivables balances

3 Invoices may not be recorded in the appropriate period (cut-off)

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

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Ca

teg

or

y

(C,F

,O)

Co

ntr

ol

Ob

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e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

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Ac

co

un

t/

Dis

clo

su

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Fin

an

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Sta

tem

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Asse

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on

Co

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/

Po

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Or

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(P,D

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Fr

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(E,D

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)

Po

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Pr

oc

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Re

fer

en

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Co

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Ob

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Ow

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1 Billing

All meter readings

are completely and

accurately

billed/invoiced and

recorded

F A, C Sales & AR O, C, E

Converted units and associated

rates are forwarded to Financial

accounting manager to review

and approve. Financial

Accounting Manager checks

conversions to avoid the risk of

overstating or understating

receivables.

Final customer bills are approved

by Director Finance prior to

issuance to customers

Subsidiary ledger accounts

receivable balances are reconciled

to the general ledger or other

control totals on a regularly

scheduled basis.

M D M N/A

Financial

Accounting

Manager

2 Billing

Invoices are

recorded accurately

and completely in

Sales & AR

F C, A Sales & AR AC

Entries in individual customer

accounts are posted only from

approved converted units source

documentsM D E N/A

Financial

Accounting

Manager



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

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Sta

tem

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Co

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/P

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Fo

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Or

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Bu

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To

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Co

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(P,D

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Fr

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(E,D

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)

Po

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Pr

oc

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Re

fer

en

ce

Co

ntr

ol

Ob

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tiv

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Ow

ne

r

3 Billing

The price, quantity

and amount on

each invoice is

accurate.

F C, A Sales & AR A,C

Invoices are automatically

generated by the system based

on approved converted units S D E N/A

Financial

Accounting

Manager

4 Billing

Only appropriate

users can generate

sales invoices.

F R Sales, AR R

Billing activity is performed or

validated independent of

accounts receivable functions

Billing system access is

appropriately restricted to those

with functional responsibility.

Only appropriate users can

generate sales invoices and

duties are adequately segregated

(e.g. between generating sales

invoices and cash receipting)

M, S D E N/A

Financial

Accounting

Manager

5 Billing

Invoices are

recorded in the

appropriate period.

F CV Sales, AR CO, E

Cut-off procedures have been

established to ensure that sales

are recognised in the proper

period

M, S D M N/A

Financial

Accounting

Manager



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

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Ca

teg

or

y(C

,F,O

)

Co

ntr

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Ob

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pe

(C,A

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)

Fin

an

cia

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Sta

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Ac

co

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Dis

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Fin

an

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Sta

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Or

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Co

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(P,D

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Fr

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(E,D

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Pr

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Re

fer

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Co

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Ob

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6 Billing

Taxes are

appropriately billed

and recorded where

necessary.

F C,A)Sales, A/R,

AccruedsA, CL, E, C

Appropriate sales or value-

added taxes billed in accordance

with local laws

Documented procedures for

developing, summarising, and

reporting required tax

information exist.

Customers tax status is

appropriately assigned,

maintained and reviewed.

M D E N/A

Financial

Accounting

Manager



4.0 RECEIVABLES PROCESS

Process description

Overview

The receivables process is initiated when the

Process Owner

Receivables Officer

Process Objectives

To ensure accounts receivables are complete and accurate

To ensure defaulting customers are identified

To issue dunning letters to defaulting customers

Process Scope

This scope applies to all receivables from power sales

Timeframe

Aligned to power sales cycle


Process unprocessed transactions

Run reconciliation and ageing analysis report

Review ageing analysis report

Discuss ageing analysis reportRun dunning letters

Approve and sign dunning letters

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

PROCESS

process is initiated when the Billing Supervisor posts final bills to the general ledger.

ccounts receivables are complete and accurate

To ensure defaulting customers are identified

to defaulting customers

from power sales

ation of duties matrixReceivables

Officer

Treasury

Manager

Departmental

Heads

PR

Run reconciliation and ageing analysis report IN

RV

IN

34

final bills to the general ledger.

Departmental

Heads

Director

Finance

IN

AP



Receivables process flow chartrocess flow chart

2. ReceivablesOfficerunposted items

report to identifyunposted transaction

End

10. ReceivablesOfficer emails softcopy of dunning

letters to customers

5. Receivables Officerruns, prints ageinganalysis report and

forwards for review

1. Receivables Officer

runs account statusand accounts

analysis report

3. Receivables Officer

processesunprocessedtransactions

6. TreasuryManager reviews

ageing analysisreport and

forwards for mgtdiscussions

7. Departmentalheads discuss

ageing analysisreports at

weekly mtgs

8. ReceivablesOfficer runs dunning

letters, prints andforwards for

approval and signing

9. Director

Financeapproves andsigns dunning

letters

11. ReceivablesOfficer forwards

hard copy ofdunning letters to

registry for

dispatch

12. Registry

registers anddispatchesdunning

letters

A

4. Receivables Officerreconciles sub-ledger

and general ledger

using account statusand accounts

analysis report

35



Receivables process activity detail

ActID

Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)


1. Run reports Receivables Officer Receivables Officer runs account statusreport in accounts receivables moduleand accounts analysis report in generalledger

Auto Account statusreport

Account AnalysisReport

2. Run un-posteditems report

Receivables Officer Receivables Officer runs un-posteditems report to identify unprocessedtransactions

Auto Un-posted itemsreport

3. Processunprocessedtransactions

Receivables Officer Receivables Officer processesunprocessed transactions to completereconciliation

Auto

4. Performreconciliation

Receivables Officer Receivables Officer reconciles sub-ledger to general ledger using theaccount status and account analysisreports

Auto Reconciliationreport

5. Run ageinganalysis report

Receivables Officer Receivables Officer runs ageing analysisreport in receivables module andforwards to Treasury Manager forreview

Auto Ageing analysis

6. Review ageinganalysis reports

Treasury Manager Treasury Manager reviews ageinganalysis report and attaches to weeklyreport for management meeting

Manual

7. Discuss reports Departmental Heads Departmental Heads discuss ageinganalysis at weekly managementmeetings to reach a consensus onwhether dunning letters are to be

Manual

START



ActID



issued.

8. Run dunningletters inreceivablesmodule

Receivables Officer Receivables Officer runs dunning letterin receivables module, prints andforwards to Director Finance forapproval and signing

Auto / Manual Dunning letters

9. Approve and signdunning letters

Director Finance Director Finance approves and signsdunning letters, notifying theReceivables Officer

Manual

10. Email dunningletters tocustomers

Receivables Officer Receivables Officer emails soft copies ofdunning letters to defaulting customers.

Auto

11. Send dunningletters to registry

Receivables Officer Receivables Officer sends hard copies ofdunning letters to registry for dispatch.

Manual

12. Dispatch dunningletters

Registry Registry dispatches dunning letters tocustomers

Manual

Receivables key performance measures


1. % of receivables exceeding agreed

payment term ( i.e. 15, 30, 45, and 60

days after receipt of bills) days as a % of

total value of debt

Monthly Director Finance/

Director Planning

and Business

Development

Treasury Manager

2. Number of notifications sent to Monthly Director Finance/ Treasury Manager

END

CRP




customers 5 days prior to expiration of

agreed payment terms

Director Planning

and Business

Development

3. % of defaulting customers contacted

after expiration of payment period (15,

30, 45, and 60 days)

Monthly Director Finance/

Director Planning

and Business

Development

Treasury Manager

Receivables standard reports


Frequency

Reviewer

1. Account status

report

The report shows account

opening balances and

payments by customer

To keep management

updated with customer

account status

ERP Monthly Treasury Manager

2. Age analysis

report

The report analysis account

receivable by length of time

outstanding

To identify defaulting

customers and to

determine provisions

against overdue debts

Receivables

application

Monthly Financial Accounting

Manager



Receivables process risk and control matrix (RCM)

Key risks

1 Account receivable (AR) may be misstated

2 Unauthorised adjustments to accounts receivable may be made

No

.

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bp

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ss

CO

SO

Co

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Ob

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Ob

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(C,F

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(C,A

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Fin

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1

ReceivablesControl ActivityTo ensure all

receivables are

identified and

stated

accurately

F C, A IS A, C, Co

Receivables Officer

generates and

reconciles account

status report and

account analysis report

to ensure the accuracy

and completeness of

receivables for a stated

period.

S D M N/AReceivables

Officer

2

ReceivablesControl ActivityTo ensure

doubtful or

bad debts are

identififed and

provided for

F A BS N/A

Management team

reviews ageing analysis

report to reach a

consensus regarding

when dunning letters

are to be issued.

Dunning letters are run

based on the outcome

of management

meetings and

forwarded for approval

and signing

M D M

Debt

provision

policy

Director

Finance



No

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Re

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Co

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3

Receivables

All adjustments

to accounts

receivable are

processed for

the correct

amount,

authorized and

recorded in the

right period

F V AR V

All adjustments to AR

are reviewed and

approved by

management

Procedures governing

the adjustment of AR

are documented

M N/A EAdjustment

policy

Director,

Fiannce

4

Receivables

Access to

Accounts

Receivable is

appropriately

secured

F R AR C,E

Accounts and notes

receivable system

access is restricted to

only appropriate

users and duties are

adequately segregated

(e.g. between cash

receipts processing

and posting to the

accounts receivable

subsidiary records,

and making entries to

the general ledger).

S N/A N/A N/A

Deputy Chief

Executive,

Finance



5.0 RECEIPT PROCESS

Process description

Overview

The purpose of the process is to describe the

Process Owner

Cashier

Process Objectives

To ensure accuracy of receipts

To ensure all receipts are captured in

To ensure receipts are lodged into the appropriate bank accounts

Process Scope

The process applies to all cash receipt

Timeframe

The process is aligned to the power and other


Receive paymentDetermine bank account to pay intoGenerate, issue and apply receiptPost transaction to the general ledger

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

The purpose of the process is to describe the activities involved in receiving payments

l receipts are captured in the accounts receivables module and appropriate receipt issued

To ensure receipts are lodged into the appropriate bank accounts

all cash receipts.

and other sales cycles

Segregation of duties matrixCashier Cash Management

SupervisorIN

INPR

Post transaction to the general ledger IN

41

payments.

and appropriate receipt issued

ManagementSupervisor

IN

IN



Receipt process flow chart

1a. Cashierreceivespayment

1b. Cashierconsults with

Cash MgtSupervisor on

bank account topay into

2a. Cashier generateselectronic receipts

2b. Cashierissues

receipt tocustomer

3. Cashier appliesreceipt to customerinvoices in system

4. Cash MgtSupervisor posts

daily transaction toGL

End

42



Receipt process activity detail

ActID

Process Flow Responsibility Tasks Involved


Output

ControlRef.Point(CRP)

1. Receive payment Cashier Cashier receives payment (either cash orcheque) and consults with Cash ManagementSupervisor on the bank account to pay into.

Miscellaneous receipts are received into a cashclearing account, batched and transferred intoa bank account daily

Manual Pay-in slip/bank advice

2. Generate andissue receipts

Cashier Cashier generates receipts and issues receipt tocustomer. This automatically updates theaccounts receivables module

Wire transfers are recognised in the receivablesmodule during reconciliation by ReconciliationOfficer

Auto/ Manual Receipts

3. Apply receipts Cash ManagementSupervisor

Cash Management Supervisor applies receiptsto customer invoices

Auto

4. Post to generalledger

Cash ManagementSupervisor

Cash Management Supervisor posts dailytransactions to the general ledger

Auto

END

START



Receipt key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. % of unapplied receipts Zero Monthly Treasury Manager Cash Management Supervisor

2. Time taken to apply receipts 1 day Daily Treasury Manager Cash Management Supervisor

Receipt standard reports


Frequency

Reviewer

1. Receipt by type This report provides analysis

of receipts by cheque, cash

and wire transfer

To provide information on

mode of payment by customers

for risk analysis purposes

ERP Quarterly Receivables

Supervisor

2. Receipt adjustment

report

This report provides

information on all

adjustments made to receipts

To provide information on

nature and type of adjustment

to receipts

ERP Monthly Receivables

Supervisor

3. Rx-receipts report This report provides

information on specific bank

receipts

To provide information for

purposes of cash management,

planning and forecasting

ERP Monthly Treasury Manager

4. Applied receipts report This report provides

information on receipts that

have been applied to

customer invoices

To provide total balances of

customers


Supervisor

5. Receipts awaiting bank

clearance

This report shows cheque

payments from customers

that are yet to be cleared from

the bank

To provide information for

purposes of cash management,

planning and forecasting


Supervisor



Receipt process risk and control matrix (RCM)

Key Risks:

1. Cash receipts are inaccurately or not completely recorded resulting in misstated receivables

2. These is inadequate segregation of duties increasing the risk of fraud or misappropriation of funds

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

tA

cc

ou

nt/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Asse

rti

on

Co

ntr

ols

/P

oin

tso

f

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1 Receipts

Cash receipts

are accurately

recorded.

F CAR N/A E, C

Cash receipts are promptly depositied

and recorded in the proper period.

Unapplied cash receipts are aged and

followed up on in a timely manner.

Dunning procedures are followed to

detect account discrepancies

There is segregation of duties in the

cash collection and application

functions.

M D E N/A Cashier



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

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e

Ca

teg

or

y

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

As

se

rti

on

Co

ntr

ols

/

Po

ints

of

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

es

s

Pr

oc

es

sT

oo

ls

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

2 Receipts

Duties are

appropriately

segregated

O R N/A N/A

Personnel responsible for

handling/processing incoming cash

receipts and related bank deposits do

not have systems access to post

remittances to individual customer

accounts or access to the general ledger.

Individuals responsible for applying

customer collections to accounts

receivable have responsibility for

handling cash receipts or processing

customer orders.

Personnel responsible for cash receipts

processing do not have any bank

S P E N/A

Financial

Accouting

Manager



6.0 PROVISIONS PROCESS

Process description

Overview

The purpose of the process is to describe steps

Process Owner


Process Objectives

To establish well defined, effective and efficient provisioning process

To ensure provisions are accurate and optimal

on provisions

Process Scope

The process applies to all activities directly and indirectly related to provision

receivables.

Timeframe

The process is aligned to the annual financial


Determine the need for adjustments to provisionsImplement proposed adjustments

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

PROVISIONS PROCESS

describe steps involved in setting provisions.

To establish well defined, effective and efficient provisioning process

To ensure provisions are accurate and optimal based on the International Financial Reporting Standard

all activities directly and indirectly related to provisions on

annual financial review period of the Authority.

of duties matrixFinancial AccountingManager

Determine the need for adjustments to provisionsIN

47

based on the International Financial Reporting Standard

on expenses and power sales

Director Finance

IN



Provisions process flow chartrocess flow chart

1. ReceivablesSupervisor runs

ageing report and

forwards for review

2a. FAMreviews report

to identifydoubtful debts

2b. FAM assessesthe adequacy of

provisions andadviced Director

Finance

3. DirectorFinance directsFAM on next

steps

4. FAMimplements

feedback fromDirector Finance

Feedback could be to adjustprovisions for the year or not to

End

48

Feedback could be to adjustprovisions for the year or not to

take action



Provisions activity detail

ActID



Output


1. Run ageing report ReceivablesSupervisor

Receivables Supervisor runs ageing report

and forwards to Financial Accounting

Manager for review

Auto Ageing report

2. Analyse and review

ageing report


Financial Accounting Manager reviews

ageing report to identify doubtful debts,

assesses the adequacy of provisions and

advises Director Finance appropriately.

Manual

3. Provide feedback Director Finance Director Finance provides feedback,

directing Financial Accounting Manager

on next steps.

Manual

4. Implement feedback FinancialAccountingManager


implements feedback from Director

Finance and acts as directed

The Authority’s policy is to provide for 5%

of total debtors amount.

Manual

END

START



Provisions key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Adequacy of provisions Per provisioning

policy

Quarterly Deputy Chief

Executive, Finance

Director Finance

Standard reports


Frequency

Reviewer

1. Age analysis report The report analysis account

receivable by length of time

outstanding

To identify defaulting

customers and to

determine provisions

against overdue debts

Receivables

application

Monthly Financial Accounting

Manager



Provisions process risk and control matrix (RCM)Key Risks:

1 Reserve for doubtful accounts is misstated

2 Accounts may be inappropriately written off

3 Inadequate provisions

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Asse

rti

on

Co

ntr

ols

/P

oin

ts

of

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1 Provisions

Accounts

receivable is

properly aged

F A N/A V, A

Accounts receivable are

aged in accordance with

Corporate Accounting

procedures.

Aging reports are

periodically verified to

ensure proper accurate

aging

M D Q

Debt

provisioning

policy

Financial

Accounting

Manager

2 Provisions

Reserve for

doubtful

accounts is

properly

calculated &

recorded

F AA/R and G&A

ExpenseV, A

Management assesses the

adequacy of provisions in

consultation with Director

Finance

M P A N/A

Financial

Accounting

Manager



No

.

Su

bp

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ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Asse

rti

on

Co

ntr

ols

/P

oin

ts

of

Fo

cu

s

Ap

pli

ca

ble

Or

ac

leB

usin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

3 Provisions

Account write offs

are approved by

appropriate

management

F V,RA/R and

G&A ExpenseOC

Accounts receivable disputed

items and bad debts written

off and recoveries of bad

debts are reviewed by

Director, Finance

Reports of all provisions and

write-offs are reviewed by

Director Finance, Deputy

Chief Executive, Fiannce

Access to effect write offs of

customer accounts is

appropriately restricted to

authorized personnel

M, S D, P E

Debt

provisioning

policy

Director,

Finane



FIXED ASSETS PROCESSES

7.0 FIXED ASSETS - CAPITAL WORK

Process descriptionOverview

The purpose of the process is to describe

Process Owner


Process Objectives

To ensure capital work-in-progress is

To ensure completed projects

To ensure completed projects

Process Scope

This process applies to construction of capital projects

Timeframe

Aligned to projects

Segregation of duties matrixActivity / Resources Fixed

AssetsSupervisor

Enter invoice details andclassify assetsReview invoice distribution

Update CWIP and run massadditionsIssue certificate of completion

Review and approve updatedCWIP/ transfer to fixed assetsregister

Legend

Input

Processing

IN

PR

FIXED ASSETS PROCESSES

CAPITAL WORK-IN-PROGRESS

The purpose of the process is to describe activities involved in accounting for capital work

progress is accurately and completely accounted for

projects are covered by a certificate of completion

projects are transferred to property, plant and equipment

n of capital projects

Segregation of duties matrixFixedAssetsSupervisor

AccountPayablesOfficer

AccountPayablesSupervisor

IN

RV

IN

53

involved in accounting for capital work-in-progress.

accounted for

plant and equipment

ProjectManager


IN

RV

AP



Review

Approval

Informed

RV

AP

IF

54



Fixed assets - capital work-

1. FinanceAdmin. Assistant

receives and

registers invoicefrom supplier

2 . FinanceAdmin.

Assistantforwards

invoice to APOfor processing

3. APO enters invoicedetails into systemclassifying asset as

capital work inprogress

4a. AP Supervisorreviews invoice

distribution

Ok?

5. AP Supervisor runsmass addition create

programme to transfer

invoices to FA modulethen (6) posts

transaction to GL

7. FAS runs ‘prepare

mass additions’programme to

identify and reviewCWIP invoices in the

system

8. FAS updates CWIPregister and(9) runs

mass additionsreport, notifyingFAM to review

10. FAM reviews andapproves updated

CWIP register

11. FAS poststransaction to GL

Yes

-in-progress process flow chart

Assistantreceives and


invoice to APOfor processing

APO enters invoicedetails into systemclassifying asset as

capital work in

AP Supervisorreviews invoice

4b. Notify APO

AP Supervisor runsmass addition create

programme to transfer

invoices to FA module,posts

transaction to GL

FAS runs ‘prepare

mass additions’programme to

identify and reviewCWIP invoices in the

FAS updates CWIPruns

mass additionsnotifying

FAM to review

FAM reviews andapproves updated

CWIP register

transaction to GL

12. Project Managerissues certificate of

completion to FAS ifproject is complete at

reporting, notifyingFAM and DF

13. FAS transfersasset from CWIP tofixed asset registerbased on certificate

of completion

14. FAM reviews andapproves transfer

No

End

55

Project Managerissues certificate of

completion to FAS ifproject is complete at

notifyingFAM and DF

FAS transfersasset from CWIP tofixed asset registerbased on certificate

of completion

FAM reviews andapproves transfer



Fixed assets - capital work-in-progress activity detail

ActID



Output


1. Receive invoice FinanceAdministrativeAssistant

Finance Administrative Assistant receivesinvoice from supplier, registers in exceldocument log book and forwards toAccount Payables Officer (DisbursementManager and Supervisor are notified).

Manual SupplierInvoice

2. Forward invoice topayables unit

FinanceAdministrativeAssistant

Finance Administrative Assistant forwardsinvoice to Account Payables Officer forprocessing

Manual

3. Enter invoicedetails and classifyasset

Account PayablesOfficer

Account Payables Officer enters invoicedetails and classifies asset as capital work inprogress at the invoice distribution stage

Auto Paymentvoucher

4. Review invoicedistribution

Account PayablesSupervisor

Account Payables Supervisor reviewsinvoice distribution to ensure anappropriate asset clearing account has beenselected

Auto

5. Run ‘massadditions create’programme


Account Payables Supervisor runs ‘massadditions create’ programme to transferinvoices to the Fixed Assets module

Auto



Account Payables Supervisor poststransaction to general ledger

Auto

7. Run ‘prepare massadditions’programme

Fixed AssetsSupervisor

Fixed Assets Supervisor runs ‘prepare massadditions’ programme to identify andreview capital work-in-progress invoices

Auto

START



ActID



Output


8. Update capitalwork-in-progressregister


Fixed Assets Supervisor updates capitalwork-in-progress register

Auto

9. Run massadditions report


Fixed Assets Supervisor runs mass additionreport and notifies Financial AccountingManager to review and approve

Auto Mass additionreport

10. Review andapprove


Financial Accounting Manager reviews andapproves the updated capital work-in-progress register

Auto Approvedmassadditions



Fixed Assets Supervisor posts transaction togeneral ledger

Issues from stores are capitalized onrequisition. Expenses are allocated toproject codes

Auto

12. Issue certificate ofcompletion

Project Manager Project Manager issues certificate ofcompletion to Fixed Assets Supervisor ifproject is complete at reporting ( notifyingDirector Finance and Financial AccountingManager)

Manual Certificate ofcompletion

13. Transfer assets tofixed assetsregister


Fixed Assets Supervisor transfers fromcapital work-in-progress to assets based oncertificate of completion

Auto

14. Review andapprove


Financial Accounting Manager reviews andapproves transfer of completed project tofixed assets

Auto

CRP

CRP



ActID



Output


Fixed assets (capital work-in-progress) key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Frequency of errors in capitalising

assets

Zero tolerance Aligned with transfers

to fixed assets

Financial

Accounting

Manager


2. Number of days to capitalise completed

projects

2 days (on receipts

of certificate of

completion)

Monthly Financial

Accounting

Manager


3. Number of days to submit reconciled

schedules between capital-work-in

progress register and general ledger

2 days Financial

Accounting

Manager


Fixed assets (capital work-in-progress) standard reports


Frequency

Reviewer

1. Mass additions

report

This report provides details of

additions to capital work in

progress over a period

To provide

management

information on capital

work-in progress.

ERP Monthly Director Finance

END




Frequency

Reviewer

2. Capitalised project

report

This report provides details of

capital work-in-progress

capitalised over a period

To provide

management

information on

capitalised assets


3. Capital work-in-

progress schedule

This report shows opening

balances, additions for the

period, transfers, and closing

balances

To analyse the

movement in project

costs




Fixed assets capital work-in-progress process risk and control matrix (RCM)

Key Risks:

1 Transfers from capital work-in-progress may not be complete and accurate

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

tA

cc

ou

nt/

Dis

clo

su

re

Fin

an

cia

lS

tate

me

nt

As

se

rti

on

Co

ntr

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/

Po

ints

of

Fo

cu

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Ap

pli

ca

ble

Or

ac

leB

us

ine

ss

Pr

oc

es

sT

oo

lsT

co

de

(s)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y(E

,D,W

,M,Q

,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

1

Fixed Assets -

Capital Work

in Progress

To ensure a

complete and

accurate

record of

capital work-

in-progress

F C, A BS O, C,A

Capital work-in-progress

register is updated with

invoices received. The update

is reviewed and approved by

appropriate management.

Updated capital work-in-

progress register is reviewed

and approved by Financial

Accounting Manager.

I p E N/A

Financial

Accounting

Manager

2

Fixed Assets -

Capital Work

in Progress

To ensure

transfers

from capital

work-in-

progress are

authorisedF V BS O, C,A

Transfer of assets from

capital work-in-progress to

property plant and

equipment is based on the

issuance of a certificate of

completion. Review and

approval of transfer is done

by appropriate management

M P E N/A

Financial

Accounting

Manager



8.0 FIXED ASSETS PROPERTY PLANT A


The purpose of the process is to describe activities involved in accounting for

Process Owner


Process Objectives

To ensure fixed assets are accurately and completely accounted

To ensure complete record keeping to monitor

Process Scope

This process applies to all fixed assets

Timeframe

Aligned to additions to fixed assets


Enter invoice details and classifyassetsReview invoice distribution

Update fixed assets register and runmass additionsRun revaluation

Review and approve revaluationindices, depreciation report andgeneral ledger reconciliation

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

PROPERTY PLANT AND EQUIPMENT

The purpose of the process is to describe activities involved in accounting for fixed assets

accurately and completely accounted for

complete record keeping to monitor existence of fixed assets

assets.

Segregation of duties matrixFixed AssetsSupervisor



IN

IN

IN

61

ND EQUIPMENT

fixed assets.



RV

RV

AP



Fixed assets property, plant and equipment

1. Finance

Admin. Assistantreceives and


2. FinanceAdmin. Assistantforwards invoice

to APO forprocessing

3 . APO enters invoicedetails into systemclassifying asset as

capital work inprogress

4a. AP Supervisorreviews invoice

distribution

Ok?

5. AP Supervisorruns mass addition

create programme totransfer invoices to

FA module, then (6)posts transaction to

GL

7. FAS runs ‘preparemass additions’programme to

identify and review

PPE invoices in thesystem

8. FAS updates fixedassets register

9. Fixed AssetsOfficer computes

revaluation indicesand forwards for

review

10. FAM reviewscomputed

revaluation indices

Yes

No

11. FA Officer

updates fixed assetsmodule with

approved revaluationindices

assets property, plant and equipment process flow chart

4b. Notify APO

12. FAS runsrevaluation in fixed

assets module

14. FA Officer selectsdepreciation period

and runsdepreciation

15. FA Officer runs

draft depreciationreport and forwardsto FAM for review

16. FAM reviews andapproves draft

depreciation report

17. FA Officer runs

final depreciationreport

18. FAS posts

transaction to GL

19. FAS reconcilesgeneral ledger to

fixed assets register

20. FAM reviews andapproves

reconciliation

End

13. FAS identifiesassets for retirement

and and initiatesretirement process

62

process flow chart

FAS runsrevaluation in fixed

assets module

FA Officer selectsdepreciation period

depreciation

FA Officer runs

draft depreciationreport and forwardsto FAM for review

FAM reviews andapproves draft

depreciation report

FA Officer runs

final depreciation

FAS posts

transaction to GL

FAS reconcilesgeneral ledger to


FAM reviews and

reconciliation

A

A

FAS identifiesassets for retirement

and and initiatesretirement process



Fixed assets property, plant and equipment activity detail

ActID



For direct acquisitions

1. Receive invoice FinanceAdministrativeAssistant

Finance Administrative Assistantreceives invoice from supplier,registers in excel document log bookand forwards to Account PayablesOfficer. Disbursement Manager andSupervisor are notified.

Manual SupplierInvoice


FinanceAdministrativeAssistant

Finance Administrative Assistantforwards invoice to Account PayablesOfficer for processing

Manual

3. Enter invoice detailsand classify asset

Account PayablesOfficer

Account Payables Officer entersinvoice details and classifies asset asproperty, plant and equipment at theinvoice distribution stage

Auto Paymentvoucher

4. Review invoicedistribution


Account Payables Supervisor reviewsinvoice distribution to ensure either anappropriate asset clearing account hasbeen selected (for depreciable assets)or expense account for non-depreciable assets falling below thediminis value

Auto

5. Run ‘mass additionscreate’ programme


Account Payables Supervisor runs‘mass additions create’ programme totransfer invoices to the Fixed Assetsmodule

Auto

6. Post to general ledger Account Payables Account Payables Supervisor posts Auto

START



ActID



Supervisor transaction to general ledger

7. Run ‘prepare massadditions’programme


Fixed Assets Supervisor runs ‘preparemass additions’ programme to identifyand review property, plant andequipment invoices

Auto

8. Update fixed assetsregister


Fixed Assets Supervisor updates fixedassets register

Auto

Revaluation

9. Compute revaluationindices

Fixed Assets Officer Fixed Assets Officer computesrevaluation indices using compositeindex resulting from the US consumerprice index and exchange rate andforwards for review

10. Review revaluationindices


Financial Accounting Manager reviewsrevaluation indices and grantsapproval for update of fixed assetsmodule with computation

Auto

11. Update fixed assetsmodule

Fixed Assets Officer Fixed Assets Officer updates fixedassets module with approvedrevaluation indices

Auto

12. Run revaluation Fixed AssetsSupervisor

Fixed Assets Supervisor runsrevaluation in the fixed assets module

Auto

13. Identify and retireassets


Fixed Assets Supervisor identifiesassets for retirement and initiates fixedasset retirement process (refer to fixedassets retirement process)

Auto

Depreciation

CRP



ActID



14. Run depreciation Fixed Assets Officer Fixed Assets Officer selectsdepreciation period and runsdepreciation

Auto

15. Run draftdepreciation report

Fixed Assets Officer Fixed Assets Officer runs draftdepreciation report and forwards toFinancial Accounting Manager forreview

Auto

Draftdepreciationreport

16. Review draftdepreciation report


Financial Accounting Manager reviewsdraft depreciation report and givesapproval

Auto

17. Run finaldepreciation report

Fixed Assets Officer Fixed Assets Officer finalisesdepreciation report

Auto Finaldepreciationreport

18. Post to general ledger Fixed AssetsSupervisor

Fixed Assets Supervisor poststransaction

Auto

19. Perform generalledger reconciliation


Fixed Assets Supervisor reconcilesgeneral ledger to fixed assets register.

Reconciliation is forwarded toFinancial Accounting Manager forreview and approval

Auto

20. Review and approvereconciliation


Financial Accounting Manager reviewsand approves reconciliation.

Auto

END

CRP



Fixed assets property, plant and equipment key performance measures


1. Degree of accuracy of computed indices 100% Monthly Financial

Accounting Manager


2. Timeliness of submission of

reconciliation report

XX days prior to

period close

activities

Monthly Financial

Accounting Manager


Fixed assets property, plant and equipment standard reports


FrequencyReviewer

1. Mass asset

maintenance

report

This report shows the

number of assets

maintained in mass

update during a period

in a fiscal year

To understand usage of

asset mass updates

ERP Quarterly Financial

Accounting

Manager

2. Reconciliation

report

This report reconciles

general ledger fixed

assets information to the

fixed asset register

To provide general

ledger and fixed asset

register reconciliation

information

ERP Monthly Fixed Assets

Supervisor

3. Depreciation

report

This report tells the year

to-date and accumulated

To provide depreciation

trends


Supervisor




FrequencyReviewer

depreciation for a period

4. Summarised asset

register report by

category

This report provides a

summary of financial

and non-financial

information of assets by

category

To update management

with level of investment

in the various categories

of fixed assets


Supervisor



Fixed assets property, plant and equipment process risk and control matrix (RCM)

Key risks

1 Depreciation calculation may be incorrect resulting in misstatements

2 Revaluation indices may be incorrect resulting in misstatements

3 Completed capital work in progress may not be captured as PPE

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

eC

ate

go

ry

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e(C

,A,V

,R)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

los

ur

e

Fin

an

cia

lS

tate

me

nt

As

se

rti

on

Co

ntr

ols

/P

oin

tso

fF

oc

us

Ap

pli

ca

ble

Or

ac

leB

us

ine

ss

Pr

oc

es

sT

oo

lsT

co

de

(s)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y(E

,D,W

,M,Q

,A

)

Po

lic

y/

Pr

oc

ed

ur

eR

efe

re

nc

e

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

1

Fixed Assets -

Property Plant

and

Equipment

To ensure invoice

entry and asset

classifications are

correct

F, O C, A, V IS/BS C, A, E, O

Invoice details and asset

classification as property plant

and equipment are manually

entered into the system and

reviewed to ensure complete

capital work-in-progress register

is updated with invoices received.

The update is reviewed and

approved by appropriate

management.

Updated capital work-in-progress

register is reviewed and approved

by Financial Accounting Manager.

I p E N/A

Financial

Accounting

Manager

2

Fixed Assets -

Property Plant

and

Equipment

To ensure

completed capital

work in progress

are captured into

PPE

F V BSC, A, R&O,

E, CO

Transfer of assets from capital

work-in-progress to property

plant and equipment is triggered

by the issuance of a certificate of

completion. Review and approval

of transfer is done by appropriate

management

M P E N/A

Financial

Accounting

Manager



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

eC

ate

go

ry

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

lS

tate

me

nt

As

se

rti

on

Co

ntr

ols

/P

oin

tso

f

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

es

sP

ro

ce

ss

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y(E

,D,W

,M,Q

,A

)

Po

lic

y/

Pr

oc

ed

ur

eR

efe

re

nc

e

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

3

Fixed Assets -

Property Plant

and

Equipment

To ensure the

depreciation

calculation is

correct.

F A, C BS/IS C, A, E

A draft depreciation report is

generated in the system after running

depreciation and forwarded to

Financial Accounting Manager for

review. Financial Accounting Manager

checks for the accuracy of depreciation

computation and approves the report.

Fixed and approval. Fixed Assets

Supervisor posts transaction to general

ledger and reconciles general ledger to

fixed assets register.

R, Mn D M N/A

Financial

Accounting

Manager

4

Fixed Assets -

Property Plant

and

Equipment

To ensure the

revaluation

indices are

correct

F A, C BS/IS C, A, E

Revaluation indices are computed

using composite index resulting from

the US consumer price index and

exchange rate and forwarded for

review and approval. Financial

Accounting Manager reviews

revaluation indices and grants

approval for the update of fixed assets

module with computation.

M, Mn D M N/A

Financial

Accounting

Manager



9.0 FIXED ASSETS (DONATED)

Process description

Overview

The purpose of the process is to describe activities involved in accounting for donated assets

Process Owner


Process Objectives

To ensure that donated assets are accurately and completely ac

To ensure complete record keeping to monitor existence of donated assets

Process Scope

This process applies to the receipt of donated assets

Timeframe

N/A


Set up donated asset

Review set up and post to general ledger

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

(DONATED)


To ensure that donated assets are accurately and completely accounted for


This process applies to the receipt of donated assets

Segregation of duties matrixFixed AssetsSupervisor

Financial AManager

IN

Review set up and post to general ledger

70


counted for


Financial AccountingManager

RV



Fixed assets (donated) process flow chartFixed assets (donated) process flow chart

1. DCE,F notifiesfinance team of

donated asset

2. FAS sets updonated asset in

fixed asset register

3. FAM reviews setup and (4) posts to

GL

End

71



Fixed assets (donated) activity detail

ActID



1. Notify financedepartment


Deputy Chief Executive, Financenotifies Director Finance of donatedasset copying Financial AccountingManager and Fixed Assets Supervisor

Auto

2. Set up donated assetin fixed assetsregister


Fixed Assets Supervisor sets updonated asset in fixed assets registernotifying Financial AccountingManager

Manual

3. Review set-up Financial AccountingManager

Financial Accounting Managerreviews set-up to ensure asset hasbeen properly classified

Auto



Financial Accounting Manager poststransaction to general ledger

Auto

START

END

CRP



Fixed assets donated process risk and control matrix (RCM)Key Risks:

1 Improper classification of donated assetsN

o.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

losu

re

Fin

an

cia

lS

tate

me

nt

Asse

rti

on

Co

ntr

ols

/P

oin

tso

f

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1Fixed Assets -

Donated

To ensure fixed

assets register is

updated with

donated fixed

assets

F C, A IS O, E, C, A

Donated fixed assets are

setup in fixed assets

register. Financial

accounting manager

reviews set up to ensure

donated fixed assets has

been appropriately

classified.

I P E N/A

Financial

Accounting

Manager



10.0 FIXED ASSETS (TAGGING AND VERIFICATION)


The purpose process is to describe activities involved in

Process Owner


Process Objectives

To ensure a standard process for a physical verification of fixed assets

To ensure all assets appearing in the fixed asset register are physically present and are under the

custody of the company

To ensure appropriate accounting for any discrepancies arising from physical verification audit.

Process Scope

The process covers all the activities around phy

Timeframe

Aligned to fixed asset verification cycle



Generate physical verification list and tags

Issue letter of authorisation

Verify assets

Reconcile physical quantity with fixed assets register

Review physical verification reportApprove physical verification reportApprove adjustmentPass adjustment

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

FIXED ASSETS (TAGGING AND VERIFICATION)

The purpose process is to describe activities involved in verifying fixed assets.

To ensure a standard process for a physical verification of fixed assets

ring in the fixed asset register are physically present and are under the


The process covers all the activities around physical verification of fixed assets

fixed asset verification cycle


VerifierFixedAssetsSupervisor

Generate physical verification list and tags IN

IN

Reconcile physical quantity with fixed assets register

IN

PR

74

FIXED ASSETS (TAGGING AND VERIFICATION)

ring in the fixed asset register are physically present and are under the


Supervisor

FixedAssetsOfficer

DirectorFinance

AP

IN

APAP




4. Fixed Assets

Officer generatesphysical verificationlist and verification

tags in system

5. Director Financeissues letter of

authorisation to

Verifiers

6. Verifiersverify and

(7) tag fixedassets

1. Director Finance

draws fixed assetsverification plan

2. Finance Managerdevelops fixed assets

verificationinstructions and(

organises orientation

9. Fixed AssetsOfficer reconciles

physical assets with


10. Fixed AssetsOfficer investigates

variances

11. Fixed Assets

Supervisor reviewsphysical verificationreport and forwards

for approval

8. Verifiers

obtaincertificates forassets gone for

repairs

12. Director Financeapproves physicalverification report


15. DF approves

adjustment in thesystem

Fixed Assets

Officer generatesphysical verificationlist and verification

Director Financeissues letter of

authorisation to

13 b. Adjustmentc’ttee recommends

items for adjustment

End

14. Fixed AssetsSupervisor passes

physical verificationadjustments

Director Finance

draws fixed assetsverification plan

Finance Managerdevelops fixed assets

(3)organises orientation

Fixed AssetsOfficer reconciles

physical assets with


Fixed AssetsOfficer investigates

Fixed Assets

Supervisor reviewsphysical verificationreport and forwards

13a. DirectorFinance

constitutescommittee for

approval of

adjustments

A

assets gone for

Director Financeapproves physicalverification report

A

75

items for adjustment

physical verification

A

A



Fixed assets (tagging and verification) activity detail

ActID

Process Flow Responsibility Tasks InvolvedTransaction

Type(Manual/Auto)

Output

ControlRef.

Point(CRP)

1. Draw fixed assetsverification plan

Director Finance Director Finance develops an annualfixed assets verification planconsisting of asset locations,resources, budget, etc.

Manual Fixed assetsverification plan

2. Develop fixedassets verificationinstructions


Financial Accounting Managerdevelops fixed assets verificationinstructions, guidelines andrecording templates

Manual Fixed assetsverificationinstructions

3. Organiseorientation


Financial Accounting Managerorganises orientation course forVerifiers to set standards andexpectations for the fixed assetsverification

Manual

4. Generate physicalverification listand verificationtags

Fixed AssetsOfficer

Fixed Assets Officer generates anupdated fixed assets register fromsystem and prints verification tags

Manual Physicalverification list

5. Issue letter of

authorisation

Director Finance Director Finance issues letter of

authorisation to Verifiers,

authorising them to visit locations

and inspect assets.

Manual Signed letter ofauthorisation

6. Verify assets Verifiers Verifiers obtain list of all assets withtheir details and verify assets againstlist

Manual Completedverificationtemplates

START



ActID


Type(Manual/Auto)

Output

ControlRef.

Point(CRP)

7. Tag assets Verifiers Verifiers tag each asset verified foridentification purposes. Locationsare also tagged to mark theverification of assets at a location.

Manual Tags

8. Obtain certificates

for assets gone for

repairs

Verifiers Verifiers obtain certificates fromthird party companies to confirmassets have been sent for repairswhere differences arise due to assetsor asset parts sent for repairs

Manual Certificate forassets gone forrepairs

9. Reconcile physical

assets with fixed

assets register

Fixed AssetsOfficer

Fixed Assets Officer consolidatesreports of all locations andreconciles physical quantities tofixed asset register

Manual Physicalverificationreport

10. Investigatevariances

Fixed AssetsOfficer

Fixed Assets Officer investigatesvariances and submits physicalverification report (includingdamaged, obsolete items, etc.) toFixed Assets Supervisor by email forreview

Manual

11. Review physicalverification report


Fixed Assets Supervisor reviewsphysical verification report andforwards to Director Finance forapproval

Manual

12. Approve physicalverification report

Director Finance Director Finance approves physicalverification report

Manual Approvedphysicalverificationreport

CRP



ActID


Type(Manual/Auto)

Output

ControlRef.

Point(CRP)

13. Engagestakeholders toagree adjustments

Director Finance Director Finance engages relevantinternal stakeholders to agreeadjustments and notifies FixedAssets Supervisor

Manual Adjustmentreport/approval

14. Pass Fixed Assetsadjustments


Fixed Assets Supervisor passesphysical verification adjustments

15. Approveadjustment

Director Finance Director Finance approvesadjustment in the system

Manual

Fixed assets (tagging and verification) key performance measures

Performance Measure Target Frequency ReviewerReviewee/ process

owner

1. Frequency of physical verification

exercise

Per Policy Per Policy Financial

Accounting Manager


Fixed assets (tagging and verification) standard reports


FrequencyReviewer

1. Reconciliation report This report shows the

differences between

actual and system asset

To assure the accuracy

of asset quantities as

Physical verification

and ERP

Yearly Fixed Assets

Supervisor

END

CRP




FrequencyReviewer

quantities captured by the system

2. Physical verification

report

This report highlights

the results of the

physical verification

including:

Total book-to-

physical adjustment

% by asset type

Book-to-physical

adjustment % by

asset type

% of obsolete assets

against total assets

% of retired assets

that have been

accounted for

To provide details of

asset differences and

condition such as

obsolescence, damage,

etc

Physical verification

and ERP

Yearly Fixed Assets

Supervisor



Fixed assets (tagging and verification) process risk and control matrix (RCM)Key Risks:

1 Fixed assets may be counted more than once

2 Fixes assets are completely countedN

o.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

eC

ate

go

ry

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e(C

,A,V

,R)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

los

ur

e

Fin

an

cia

lS

tate

me

nt

As

se

rti

on

Co

ntr

ols

/P

oin

tso

fF

oc

us

Ap

pli

ca

ble

Or

ac

leB

us

ine

ss

Pr

oc

es

sT

oo

lsT

co

de

(s)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y(E

,D,W

,M,Q

,A

)

Po

lic

y/

Pr

oc

ed

ur

eR

efe

re

nc

e

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

1

Fixed Assets -

Verification

and Tagging

To ensure a

complete and

accurate record of

fixed assets at all

locations

F C, A BS C, E

A physical verification check list is

generated from the system and

fixed assets are verified based on

the systems list. Verifiers obtain

certificates from third party

companies to confirm the

existence of assets that have gone

for repairs. Physical assets are

reconciled with fixed assets

register to ensure completeness

S, M p E N/A

Financial

Accounting

Manager

2

Fixed Assets -

Verification

and Tagging

To ensure

adjustments are

appropriately

approved

F C, A BS C, E

Adjustments to fixed assets

register are recommended by an

independent committee and

approved by Director FinanceM, S P E N/A Director Finance

3

Fixed Assets -

Verification

and Tagging

To ensure

adequate

segregation of

duties through the

verification

process

F C, A N/A N/A

There is adequate segregation of

duties between verifiers and

approvers.M P E N/A

Financial

Accounting

Manager



11.0FIXED ASSETS - RETIREMENT AND


The purpose of the process is to describe the activities involved in retiring and disposing fixed assets.

Process Owner

Disposal Schedule Officer

Process Objectives

To ensure retirement and disposal of assets are appropr

policy

To ensure disposed assets are accurately and completely accounted for

To ensure fixed assets register is updated with retired and disposed assets

Process Scope

This process covers the retirement, disposal

Timeframe

N/A

Segregation of duties matrixActivity /Resources

UserDepartment

Identify assets fordisposal

IN

Inspect assets andprepare disposalreportApprove disposalreportAllocate asset to VRAstaffChange ownership ofassetUpdate fixed assetsregister

Legend

Input

Processing

IN

PR

CONTROLLED DISCLOSURE

RETIREMENT AND DISPOSAL


To ensure retirement and disposal of assets are appropriately authorised in line with Authority’s



This process covers the retirement, disposal and write-off of assets


DepartmentDirectorGeneralServices

ChiefExecutive

BoardofSurvey

IN

AP

PR

81

OSAL


iately authorised in line with Authority’s



FixedAssetsSupervisor

VehicleAllocationsCommittee

IN

PR



Review

Approval

Informed

RV

AP

IF


82



Fixed assets disposal process

1. User

Departmentcompile andsubmit list of

Declared assetsfor disposal to

DP

2. DP notifiesDisposals

ScheduleOfficer (DSO)

3. DSO with Managerand Director of user

department

nominate staff toform Board of Survey

4. DSO draftsnomination

letters with terms

of reference andforwards for

review

5. DisposalsManager

reviews lettersand forwards toDP for signing

6. DP signs and

forwardsnomination

letters with list ofdeclared assets to

CE, requesting

for approval

7. CE approvesboard

composition

authorisingissuance ofnomination

letters to staff

8. Board of Surveyexecute terms of

reference andmake

recommendationsfor disposal

A

10. CE approvesdisposal report,

authorising

implementation ofdisposal

recommendations

9. Board of

Survey preparedisposal reportand forward to

CE forapproval

11a. DPnotifiesVehicle

AllocationsCommittee

11b. VehicleAllocationsCommittee

allocates vehicle

to staff perVRA’s policy

and guidelines


assets disposal process flow chart

Disposal vehicle>3 tonnes/

specialised?

allocates vehicle

and guidelines

12. DSOcontacts

professionalvaluers to

value vehicles

13. CO populatesonlinetender

document and sends

electronically toDisposal Manager for

review

17. PR Managersells tender

documents tointerested biddersand proposes anEvaluation C’ttee

to DP

16. PR Managerplaces advert inmedia and VRA

website

14. DisposalManager

reviews tenderdocuments andseek approval

from DP to

place advert

15. DP approvestender

document, signsand notifies PR

Manager to

place advert

A

18. DPapproves

evaluation

teamcomposition

A

19. DSO withEvaluation

Team evaluatequotations

from tenderers

20. DSO

prepares offerletter and

forward to DPfor signing

21 . DP signs offerletter and DSO

issues offer letter

to highest bidderadvising thatpayment be

Sale to scrapdealers?

22. DSO

contacts VRAregistered scrapdealers, invitingthem to inspect

scrap assets

23 . DSOcoordinates

inspects byscrap

dealers

25. CashiernotifiesDirectorGeneral

Servicesof payment

24. Cahierreceives

payment andreceipt process

is initiated

26. DGS effectschange of asset

ownership in systemnotifying FAM and

FAS

27. FAS updates fixedassets register with

disposals

28. FAM reviewsupdates and posts to

general ledgernotifying DSO

29. DSOreleases asset

to winning

bidder

Yes Yes

No

End

83

CashiernotifiesDirectorGeneral

Services (DGS)of payment

DGS effectschange of asset

ownership in systemnotifying FAM and

FAS

FAS updates fixedassets register with

disposals

FAM reviewsupdates and posts to

general ledgernotifying DSO

DSOreleases asset

to winning

/ staff

End



Fixed assets retirement and disposal activity detail

ActID


Output


1. Submit approvedlist

User Department User Department compiles and submits

approved list of obsolete/unserviceable/

surplus assets to Director Procurement,

declaring listed assets for disposal

Manual Approved list

of obsolete

/unserviceable

/surplus assets

2. Notify DisposalsSchedule Officer

Director

Procurement

Director Procurement notifies Disposals

Schedule Officer

Manual

3. Nominate Board of

Survey members

Disposals

Schedule Officer

Disposals Schedule Officer in consultation

with Manager and Director of user

department, nominate staff to form Board of

Survey

Manual

4. Draft nomination

letters and terms of

reference

Disposals

Schedule Officer

Disposals Schedule Officer drafts letters to

nominated staff together with terms of

reference and forward for review

Manual Nomination

Letters

Terms of

Reference

5. Review nomination

letters

Disposals

Manager

Disposals Manager reviews nomination

letters and terms of reference then forward to

Director Procurement for signing

Manual

6. Sign nomination

letters

Director

Procurement

Director Procurement signs nomination

letters and forwards together with list of

declared assets request to Chief Executive for

approval

Manual Signed

nomination

letters

START



ActID


Output


7. Approve boardconstitution

Chief Executive Chief Executive approves proposed board

composition, authorising issuance of

nomination letters to nominated staff

Manual Approved

board

composition

8. Inspect assets Board of Survey Board of Survey inspects and verifies

existence of assets, reviews circumstances

requiring disposal, assesses disposal value of

assets and makes recommendations for

disposal

Manual

9. Prepare disposalreport

Board of Survey Board of Survey prepares a disposal report in

accordance with the terms of reference and

forwards to Chief Executive for approval

Manual Disposal

report

10. Approve disposalreport

Chief Executive Chief Executive approves disposal report and

forwards a copy to Director Procurement to

implement Board of Survey

recommendations.

Copies of disposal reports are forwarded to

Director Finance and Fixed Assets

Supervisor

Manual Approved

disposal report

Recommendations for vehicles below three tones

11. Notify VehicleAllocationsCommittee

Director

Procurement

Director Procurement notifies Vehicle

Allocations Committee with the list of

vehicles below three tones to be allocated to

eligible staff in accordance with the

Authority’s approved policy and guidelines

Manual

CRP

CRP



ActID


Output


for disposal to staff

Recommendations for vehicles above three tones/ specialised vehicles/ motor cycles and other fixed assets

12. Contactprofessionalvaluers

Disposal

Schedule Officer

Disposal Schedule Officer contacts

professional valuers to determine reserve

price of vehicles (i.e. vehicles above three

tones and specialised vehicles) notifying

Disposal Manager and Director Procurement

Other fixed assets are not valued.

Manual Valuation

letter

13. Populate on-lineTender Document

Disposal

Schedule Officer

Disposal Schedule Officer populates online

Tender Document, sets evaluation criteria,

and sends electronically to the Disposal

Manager for review

Auto Draft request

for quotations

14. Review TenderDocument

Disposal Manager Disposal Manager reviews tender documents

and seeks approval from Director

Procurement to place advert

Manual

15. Approve TenderDocument

Director

Procurement

Director Procurement approve Tender

Document, signs electronically and notifies

Public Relations Manager to place advert in

the media

Manual Approved

Request for

Quotations

16. Place advert/ invitetenders

Public Relations

Manager

Public Relations Manager places advert in

media and VRA website

Manual Invitation to

tender



ActID


Output


17. Sell TenderDocuments

Disposals

Schedule Officer

Disposals Schedule Officer sells tender

documents and proposes an Evaluation Team

to Director Procurement notifying Disposal

Manager

Manual

18. ApproveEvaluation Teamcomposition

Director

Procurement

Director Procurement approves evaluation

team composition

Manual

19. Receive andevaluate quotations

Disposal

Schedule Officer

Disposal Schedule Officer receives and with

Evaluation Team, evaluates quotations from

tenderers

Manual Quotations

20. Prepare OfferLetter

Disposal

Schedule Officer

Disposal Schedule Officer prepares Offer

Letter using standard template, forwards to


Manual Offer Letter

21. Issue Offer letter Disposal

Schedule Officer

Disposal Schedule Officer issues Offer Letter

to highest bidder (after Director Procurement

has signed) advising that payment be made

Manual

Sale of items to scrap dealers

22. Contact VRAregistered scrapdealers

Disposal

Schedule Officer

Disposal Schedule Officer contacts all VRA

registered scrap dealers, inviting them to

inspect scrap assets

Manual

23. Coordinateinspection

Disposal

Schedule Officer

Disposal Schedule Officer with location

representative coordinate inspection by scrap

dealers

Where hazardous items are involved an

Manual



ActID


Output


Environmental Protection Agency (EPA)

permit is obtained

17. Sell TenderDocuments

Disposals

Schedule Officer

Disposals Schedule Officer sells tender

documents to interested VRA registered scrap

dealers after inspection and proposes an

Evaluation Team to Director Procurement

Manual

18. ApproveEvaluation Teamcomposition

Director

Procurement

Director Procurement approves Evaluation

Team composition

Manual

19. Receive andevaluate quotations

Disposal

Schedule Officer

Disposal Schedule Officer receives and

evaluates quotations from tenderers

Manual

20. Prepare OfferLetter

Disposal

Schedule Officer

Disposal Schedule Officer prepares Offer

Letter using standard template, forwards to


Manual

21. Issue Offer letter Disposal

Schedule Officer

Disposal Schedule Officer issues Offer Letter

to highest bidder (after Director Procurement

has signed), advising that payment be made

Manual

Payment and update of fixed assets register

24. Receive payment Cashier Cashier receives payment from highest bidder

(refer to receipt process)

Manual

25. Notify Director

General Services

Cashier Cashier notifies Director General Services

Department by email of payment to effect

Manual



ActID


Output


Department change of ownership

26. Change ownershipof asset

Director General

Services

Department

Director General Services Department effects

change of asset ownership in system notifying

Financial Accounting Manager and Fixed

Assets Supervisor by email

Auto

27. Update fixed assetsregister

Fixed Assets

Supervisor

Fixed Assets Supervisor on receipt of

approved disposal report and notification of

change of asset ownership from Director

General Services Department updates fixed

assets register with disposals.

Disposal Schedule officer is notified to release

asset to winning bidder

Auto

28. Review and posttransaction togeneral ledger

Financial

Accounting

Manager


update of fixed assets register and posts

transaction to general ledger

Auto

29. Release asset towinning bidders

Disposal

Schedule Officer

Disposal Schedule Officer releases asset to

winning bidder after receiving notification

from Fixed Assets Supervisor

Manual

Disposal by destruction

30. Organisedestruction

Disposal

Schedule Officer

Disposal Schedule Officer invites Finance

Representative (for standard items), User,

Planning and Systems Monitoring

Department (Fire Unit), Internal Audit, EPA

and other agencies (where appropriate) for

Manual



ActID


Output


destruction of items

Disposal by donation

31. Organise donationceremony

Disposal

Schedule Officer

Disposal Schedule Officer notifies Public

Relations unit, Director Procurement, and

receiving institution of pending donation

Public Procurement Act, 2003, (Act 663)

requires that donations be made to public

institutions only

Manual

Fixed assets retirement and disposal key performance measures


1.Asset declaration to nomination cycle Per

Occurrence

Schedule Manager Disposals Schedule Officer

2. Board of Survey performance against

Terms of Reference

Per Terms of

Reference

Per

Occurrence

Deputy Chief

Executive, Finance

Board of Survey, Chairman

END



Fixed assets retirement and disposal standard reports


Frequency

Reviewer

1. Disposal report This provides a list of

assets disposed,

beneficiary and nature

of disposal.

To provide

management

information on assets

disposed

ERP/ Board of

Survey/ Allocations

Committee

Aligned to

asset disposal

Deputy Chief

Executive, Finance /

Director Finance

2. Inspection report This provides a

description of the

condition of assets

identified for disposal

To serve as a basis for

determining sale value

of assets identified for

disposal

Board of Survey Aligned to

asset disposal

Deputy Chief


Director Finance

3. Gains/ Losses on

disposal report

This provides

information on gains

and losses made on

disposal over a period.

To provide

management

information and gains/

losses from disposal of

assets.

ERP Aligned to

asset disposal

Deputy Chief


Director Finance



Fixed assets disposal process risk and control matrix (RCM)Key Risks:

1 Unauthorised disposal of assets

2 Noncompliance to the Authority's policy on disposal

3 Ownership of disposed assets may continue to be in the Authority's name

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jecti

ve

Co

ntr

ol

Ob

jecti

ve

Ca

teg

ory

(C,F

,O)

Co

ntr

ol

Ob

jecti

ve

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Acco

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Asse

rti

on

Co

ntr

ols

/

Po

ints

of

Fo

cu

s

Ap

pli

ca

ble

Ora

cle

Bu

sin

ess

Pro

ce

ss

To

ols

Tco

de

(s)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pro

ach

(P,D

)

Fre

qu

en

cy

(E,D

,W,M

,Q,A

)

Po

licy

/

Pro

ce

du

re

Re

fere

nce

Co

ntr

ol

Ob

jecti

ve

Ow

ne

r

1

Fixed

Assets

Disposal

To ensure

asset disposals

are approved

at the correct

level

F V, R BS O, E

Director of user

department approves a list

of assets disposals.

Declared list of disposal

assets are forwarded to

Director Procurement who

checks for approval.

M, MN P E

Fixes assets

disposal

policy

Director

Procurement

2

Fixed

Assets

Disposal

To ensure

adherence to

the Authority's

policy on

disposal

O V, R N/A N/A

A Board of survey is

constituted to inspect

disposal assets and make

recommendations for

disposal.

A vehicle allocations

committee is responsible

for allocating vehicles to

staff per the Authority's

policy on vehicle allocation

to staff. Staff may be

considered after 15 years of

service with the Authority

Mn P E

Fixes assets

disposal

policy

Director

Procurement



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

losu

re

Fin

an

cia

lS

tate

me

nt

Asse

rti

on

Co

ntr

ols

/P

oin

tso

f

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

3

Fixed

Assets

Disposal

To ensure buyers of

disposed assets

meet requirements

per the Authority's

policy on disposals

O V N/A N/AA due diligence is

performed on all registered

scrap dealers per the

Authority's policy

Mn P E

VRA policy on

vendor

registration

Financial

Accounting

Manager

4

Fixed

Assets

Disposal

To ensure system is

updated with

disposals and

ownership of asset

is transferred from

the Authority to

buyer

F A, V BS O, A,Co, E

Director General Services

effects change of asset

ownership after disposal.

Fixed Asset Supervisor

updates fixed assets

register with disposals.

Update of fixed assets

register is reviewed by the

Financial Accounting

Manager who posts

transaction to the general

ledger

R, Mn P EFixes assets

disposal policy

Financial

Accounting

Manager



LOAN PROCESSES

12.0 LONG-TERM L


The purpose of the process is to descri

Process Owner


Process Objectives

To ensure adequate funds are

To ensure commitment to borrowing

To ensure optimum terms of borrowing

To ensure compliance with loan agreement

Process Scope

This process applies to all borrowing related to projec

Timeframe

N/A


Evaluate term sheetsReview and approve evaluation report

Constitute negotiations teamReview and finalise loan agreementApprove and sign loan agreement

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

TERM LOAN ADMINISTRATION

describe the activities involved in administering long

To ensure adequate funds are timely secured for budgeted projects

borrowing by the authority is appropriately reviewed and approved

To ensure optimum terms of borrowing

To ensure compliance with loan agreement

This process applies to all borrowing related to projects

Segregation of duties matrixDirectorFinance


RVReview and approve evaluation report

RV

RV

94

long-term loans.

by the authority is appropriately reviewed and approved

Board ofDirectors

ChiefExecutive

RVAP

IN

AP AP



Long term loan administration1. Director Eng.

receives approvedbudget and (2)notifies projectfinance unit to

initiate sourcing forfunds

GoG on-lent loans

3. CE receivesdraft loan

agreement fromMOFEP/MOE

and forwards toDCEs

4. DCE,Fnotifies DF, DL,

DE and PFMforwarding loan

agreement fortheir review

5. DF organisesreview meetingwith DCE,F, DE,

DL, PFM

6. DCE ,F leads teamto finalise loan

agreement,forwarding

recommendations toCE

7. CE forwards

reviewed loanagreement with

comments toMOFEP/ MOE

8. MOEFP/ MOEreps finalise, signand forward loanagreement to CE

9. CE signs

loanagreementin presence

of DL

10. CE forwards anoriginal copy of

signed loanagreement to

MOFEP

Set up loan account

21DCE

forwards a copyof signed loan

agreement toDF

22aLoan Officer

through PFM toset up account

22b. Loan officer sets

up account intreasury module

23

compliance letterand forwards toCE for signing

24compliance letterand forwards to

register for

A

loan administration process flow chartBilateral loan agreements 11. DF identifies

funding gap in

approvedcapital budget

12. DF directs PFMto prepare and

submit proposalsto prospective

lending agencies

13. DF receivesterm sheets from

prospectivelending agencies

and constitutesand evaluation

team

14. DF withevaluation team

evaluate term

sheets, makerecommendations, and forward to

DCE,F

15. DCE,F reviewsevaluation report

and forward toCE for furthersubmission to

BoD

16a. BoD reviewsevaluation report

and passes aresolution

Approve?

16b. Appropriateauthorities signand Board Sec.

affixes corporateseal

16d. Board

Sec. formallynotifies CE of

resolutioncopying DF

and PFM

17. CEconstitutes

negotiationsteam

18. Negotiations

team invites repfrom lending

agency fornegotiations

19. Negotiations team

organises signingceremony and CE and

rep from lending agencysign loan agreement

Set up loan account

. CE notifiesDCE, F and

forwards a copyof signed loan

agreement toDF, DL, PFM

a. DF notifiesLoan Officer

through PFM toset up account

Loan officer sets

up account intreasury module

23. PF unitprepare

compliance letterand forwards toCE for signing

24 . CE signscompliance letterand forwards to

register for

dispatch

Yes

End

16

communicatesissues to CE

copying DCENo

A

20. DirectorProcurement

initiates

procurement processfor goods, works or

services

Refer to PCMProcurementSection XXX

95

16c. BoD

communicatesissues to CE

copying DCE,Fand DF

Refer to PCMProcurement,Section XXX



Long term loan administration activity detail

ActID


Output


1. Receive approvedbudget

Director

Engineering

Director Engineering receives approved

budgetary requirement from Director

Planning Business Development and

Sales and notifies Director Finance to

initiate sourcing for funds

Manual Approved

budgetary

requirement

2. Notify Project Finance Director Finance Director Finance instructs Project

Finance to initiate sourcing for funds

Manual

Government of Ghana on-lent loans

3. Receive draft loanagreement fromMinistry of Finance andEconomic Planning /Ministry of Energy

Chief Executive Chief Executive receives draft loan

agreement from Ministry of Finance

and Economic Planning / Ministry of

Energy and forwards to relevant Deputy

Chief Executives and Deputy Chief

Executive, Finance and Director

Finance

Manual

4. Notify Director Finance Deputy Chief

Executive Finance


forwards draft loan agreement to

Director Finance, Director Engineering,

Director Legal and Project Finance

Manager for their review

Manual

5. Organise a reviewmeeting

Director Finance Director Finance sends out review

meeting invitations to Deputy Chief

Auto

START



ActID


Output


Executive, Finance, Director

Engineering, Director Legal and Project

Finance Manager

6. Review and finaliseloan agreement

Deputy Chief

Executive,

Finance

Deputy Chief Executive, Finance leads

review team to finalise loan agreement

and forwards recommendations to

Chief Executive

Manual Evaluation

report

(minutes of

meeting)

7. Forward reviewed loanagreement to Ministryof Finance andEconomic Planning /Ministry of Energy

Chief Executive Chief Executive forward reviewed loan

agreement (with comments) to Ministry

of Finance and Economic Planning /

Ministry of Energy

Manual

8. Finalise and sign loanagreement

Ministry of

Finance and

Economic

Planning /

Ministry of

Energy

Ministry of Finance/ Ministry of Energy

then finalises, signs and forwards loan

agreement to Chief Executive

Manual Final loan

agreement

9. Sign loan agreement Chief Executive Chief Executive signs loan agreement in

the presence of Director Legal if loan

agreement is acceptable

Manual Signed loan

agreement

10. Forward copy toMinistry

Chief Executive Chief Executive forwards an original of

loan agreement to Ministry of Finance

and Economic Planning

Manual

Bilateral loan agreements

CRP



ActID


Output


11. Identify funding gap inapproved corporatecapital budget

Director Finance Director Finance receives approved

corporate capital budget from Director

Planning and Business Development

and identifies funding gap

Manual Approved

corporate

capital

budget

12. Submit proposals Director Finance Director Finance directs Project

Finance Manager to prepare and

submit proposals to prospective lending

agencies

Manual Proposal for

funding

13. Receive term sheets Director Finance Director Finance receives term sheets

from prospective lending agencies and

constitutes an evaluation team

Manual Term sheets

14. Evaluate term sheets Director Finance Director Finance chairs Evaluation

Team (including representatives from

Engineering, Legal, Planning, etc.) to

evaluate term sheets, make

recommendations and forwards term

sheet recommendations to Deputy

Chief Executive, Finance

Manual Minutes of

meeting

Evaluation

report

15. Review evaluationreport

Deputy Chief

Executive,

Finance


reviews evaluation report and forwards

to Chief Executive for approval and

submission to the Board

Manual

16. Review evaluationreport

Board of Directors Board of Directors review evaluation

report and passes a resolution.

If Board approves, appropriate

Manual Board

minutes CRP



ActID


Output


authorities sign and Board Secretary

affixes corporate seal authorising Chief

Executive to enter into negotiations

with prospective lender

Approved

term sheet

17. Constitute anegotiation team

Chief Executive Chief Executive constitutes a

negotiation team

Manual

18. Organise negotiationswith lending agency

Negotiation Team

Leader

Negotiation Team Leader sends an

invitation to lending agency and goes

into negotiations

Manual Loan

agreement

19. Organise signingceremony

Negotiation Team

Leader

Negotiation Team Leader invites a

representative of lending agency and

Chief Executive to sign final loan

agreement.

Manual Signed loan

agreement

20. Procure for goods,works or services

Director

Procurement

Director Procurement initiates

procurement process for goods, works

or services related to the loan

(refer to Procurement PCM)

Manual

Set-up loan account

21. Notify Deputy ChiefExecutive

Chief Executive Chief Executive forwards original

signed loan agreement to Director Legal

and sends a soft copy to Deputy Chief

Executive, Finance copying Director

Finance and Project Finance Manager

Auto



ActID


Output


of signed loan agreements

22. Set up loan account Loan Officer Loan Officer sets up loan account in

treasury module after receiving

authorisation from Project Finance

Manager (refer to procedure manual for

set up procedures)

Auto Amortisation

schedule

23. Coordinate precedentconditions

Project Finance

Officer

Project Finance Officer obtains

information on compliance with terms

and conditions of the loan, prepares

letter of compliance and forwards to

Chief Executive for signature

Manual Compliance

letter

24. Sign compliance letter Chief Executive Chief Executive signs compliance letter

and forwards to registry for dispatch to

lending agency

Manual

END



13.0 LONG - TERM LOAN DISBURSEMENT


The purpose of the process is to describe the activities involved in long term loan disbursement.

Process Owner


Process Objectives

To ensure draw downs are made in accordance with terms and conditions of the loan

To ensure draw downs are app

To ensure loan disbursement

Process Scope

This process applies to all long term loan disbursement

Timeframe

Aligned to project cycle


Certify work done

Approve withdrawal application

Update loans account

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

TERM LOAN DISBURSEMENT

describe the activities involved in long term loan disbursement.

draw downs are made in accordance with terms and conditions of the loan

To ensure draw downs are appropriately authorised

disbursement transactions are completely and accurately recorded

loan disbursements

Segregation of duties matrixProject Director Loans Officer

RV

IN

101

describe the activities involved in long term loan disbursement.

draw downs are made in accordance with terms and conditions of the loan

are completely and accurately recorded

Loans Officer ChiefExecutive

AP

IN



Long term loan disbursement process flow chart

1. Procurementdepartment awardscontract and project

is initiated

2. Contractorsubmits

payment cert.to PM on

completion of

a milestone

3. ProjectDirector certifies

work done byContractor and

forwardspayment cert. to

DF

4. DF forwards

payment cert. toPFM notifying PF

Officer

5. PF Officerprepares

withdrawalapplication andforwards to CE

through DF forapproval

6a. CEreviews and

approveswithdrawalapplication

GoG loan?

6b. CEforwards

signedwithdrawal

application tolending agency

8. DF receivesdisbursementadvice from

lending agency

9b. Loans Officerupdates loan account

with drawn downamountafter rec

End

A

No

term loan disbursement process flow chart

department awardscontract and project

PFM notifying PF

6c. CE forwards

withdrawalapplication to

MOFEP for counterapproval

7. MOFEP repsigns and forwardssigned withdrawal

application tolending agency

updates loan account

Yes

102



Long term loan disbursement activity detail

ActID



1. Award contract andinitiate project

Procurement

Department

Procurement Department awards

contract to winning bidder and

Contractor initiates project

Manual

2. Submit progresspayment certificate

Contractor Contractor submits payment

certificate to Project Management

upon achievement of agreed

milestone ( per contract)

Manual Progress payment

certificate

3. Certify work Project Director Project Director certifies work done

by Contractor and forward progress

payment certificate to Director

Finance

Manual Certificate of

completion

4. Notify Project FinanceManager

Director Finance Director Finance forwards payment

certificate to Project Finance

Manager copying Project Finance

Officer

Manual

5. Prepare withdrawalapplication

Project Finance

Officer

Project Finance Officer prepares

withdrawal application and

forwards to Chief Executive for

approval through Director Finance

Auto Withdrawal

application

START



ActID



6. Review and approvewithdrawal application

Chief Executive Chief Executive reviews and

approves withdrawal application.

For on-lent loans, Chief Executive

forwards withdrawal application to

Ministry of Finance for counter

approval.

Manual Approved

withdrawal

application

7. Forward approvedwithdrawal application

Ministry of

Finance

Representative

Ministry of Finance Representative

forwards approved withdrawal

application to Lending Agency for

direct payment to Contractor

Manual

8. Receive disbursementadvice

Director

Finance

Director Finance receives

disbursement advice from Lending

Agency after payment has been

made

Manual Disbursement

advice

9. Update loans account Loans Officer Loans Officer updates loan account

with drawn down amount after

receiving authorisation from

Director Finance

Auto

END

CRP



14.0 LONG TERM LOAN


The purpose of the process is to describ

Process Owner


Process Objectives

To ensure project loans are repaid

To ensure timely repayment of loans

To ensure repayments are appro

To ensure loan repayment transactions are completely and accurately recorded

Process Scope

This applies to all project loan repayments

Timeframe



Activity / Resources Loans Officer

Check demand notice

Authorize payment

Process payment

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

LONG TERM LOAN REPAYMENT

The purpose of the process is to describe activities involved in repaying project loans.

To ensure project loans are repaid in accordance with agreed terms and conditions

To ensure timely repayment of loans

To ensure repayments are appropriately authorised


repayments


Loans Officer TreasuryManager

Chief Executive

RV

PR

105

e activities involved in repaying project loans.

in accordance with agreed terms and conditions


Chief Executive

AP



Long - term loan repayment process flow chart

1. CE receivesdemand notice

from lendingagency and

notifies DCE, F

2. DCE, F forwardsdemand notice to

Loans Officercopying DF, and

PFM

3. Loans Officervalidates

demand notice

againstamortisation

schedule

4. Loans Officerforwards

demand notice toPFM to seek

authorisation forpayment

5. Appropriateauthority perapproval limit

authorises paymentand forwards to CE

for approval

6. CE approvespayment, signsdemand notice

and notifies

DCEs

7. DCEs

notify LoansOfficer ofapproval

8a. Loans Officer setsup demand notice in

AP module andnotifies TM of

pending payment

End

loan repayment process flow chart

F forwardsdemand notice to

and

Loans Officer

Loans Officer

demand notice to

authorisation for

authorises paymentand forwards to CE

Loans Officer setsup demand notice in

pending payment

A

106



Long term loan repayment activity detail

Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)


1. Receive demandnotice

Chief Executive Chief Executive receives electronic

demand notice from Lending Agency

and forwards to Deputy Chief

Executive, Finance

Manual Demand notice

2. Notify LoansOfficer

Deputy Chief

Executive,

Finance


forwards electronic demand notice to

Loans Officer , copying Director

Finance Project Finance Manager

Manual

3. Validatedemand notice

Loans Officer Loans Officer validates demand notice

against amortisation schedule to

ascertain repayment amount and

forwards to Project Finance Manager

for review

Auto

4. Forwarddemand noticefor approval

Project Finance

Manager

Project Finance Manager forwards

demand notice to appropriate authority

to obtain approval to process payment

Manual

5. Authorisepayment

Appropriate

authority

Appropriate Authority grants

authorisation for payment

Manual

6. Approvepayment

Chief Executive Chief Executive approves payment ( by

signing demand notice) and notifies

Deputy Chief Executive

Manual Signed demand

notice

START

CRP





7. Notify LoansOfficer

Deputy Chief

Executive

Deputy Chief Executive notifies Project

Finance Manager and Loans Officer of

approval

Manual

8. Set up demandnotice inaccountpayables module

Loans Officer Loans Officer sets up demand notice in

account payables module (initiating the

payables process) and notifies Treasury

Manager of pending payment

Auto

Long term loan loans key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Loan performance against

conditions precedent

Per loan

agreement

Per

Occurrence

Project Finance

Manager


Long term loans standard reports


Frequency

Reviewer

1. Long term loan

report


summary of long term loan

by lending agency and by

type of loan (i.e. Government

of Ghana on lent loans and

To provide

management

information on

performance of long

ERP Monthly Deputy Chief Executive,

Finance

END




Frequency

Reviewer

bilateral loans). The report

highlights the following:

Loan disbursements

Principal and interest

repayments

Outstanding

commitments

Late payment charges

term loans



Long term loan repayment loan repayment process risk and control matrix (RCM)

Key Risks:

1 Loan transactions may be entered into without the appropriate approvals

2 Draw downs are not backed by works and recorded appropriaely

3 Non-compliance to the terms and conditions of the loan could result in penalties

No

.

Su

bp

ro

cess

Co

ntr

olO

bje

cti

ve

Co

ntr

olO

bje

cti

ve

Cate

go

ry

(C,F

,O)

Co

ntr

olO

bje

cti

ve

Typ

e(C

,A,V

,R)

Fin

an

cia

l

Sta

tem

en

t

Acco

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Asserti

on

Co

ntr

ols

/P

oin

ts

of

Fo

cu

s

Ap

pli

cab

leO

racle

Bu

sin

ess

Pro

cess

To

ols

Tco

de(s

)

Co

ntr

olT

yp

e

(I,S

,M,R

,Mn

)

Co

ntr

olA

pp

ro

ach

(P,D

)

Freq

uen

cy

(E,D

,W,M

,Q,A

)

Po

licy

/P

ro

ced

ure

Refe

ren

ce

Co

ntr

olO

bje

cti

ve

Ow

ner

1Long term loan -

Administration

To ensure

commitment to

borrowing by the

authority has

received

appropriate

approvals

O V, R N/A R&O

An acceptable loan

agreement is signed by Chief

Executive in the presence of

Director Legal. Prior to this

the loan agreement would

have gone through a

thorough review process.

Term sheets from lending

agencies are evaluated by an

evaluation team comprising

Director Finance and

representatives of the Legal,

Engineering and Planning

Departments.

M P E N/A

Director

Finance

2Long term loan -

Disbursement

To ensure draw

downs are backed

by works,

appropriately

authorised and

recorded

F V BS N/A

Work done is inspected and

certified by a Project

Director. Withdrawal

application is approved by

Chief Executive and

supervising ministry.

M P E N/A

Director

Finance



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

eC

ate

go

ry

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

losu

re

Fin

an

cia

lS

tate

me

nt

Asse

rti

on

Co

ntr

ols

/P

oin

tso

fF

oc

us

Ap

pli

ca

ble

Or

ac

leB

usin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

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)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y(E

,D,W

,M,Q

,A)

Po

lic

y/

Pr

oc

ed

ur

eR

efe

re

nc

e

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

3Long term loan -

Repayment

To ensure the

accuracy of

demand notice

figuresF A BS A

Demand notice is validated

against amortisation

schedule to confirm

repayment amount M P E N/A

Loans Officer

Chief Executive

4Long term loan -

Repayment

To ensure

appropriate

approvals are

obtained for

payments to be

made

F, O V N/A N/A

Repayments are

appropriately approved. M P E N/A

Director

Finance



15.0 SHORT-TERM LOAN ADMINISTRATION


The purpose of the process is to describe the activities involved in short term loan administration.

Process Owner

Treasury Manager

Process Objectives


To ensure draw downs are appropriately authorised

To ensure loan disbursement transactions are completely and accurately recorded

Process Scope

This process applies to all project loan disbursements

Timeframe




Evaluate proposals/ term sheets

Review and recommend evaluation reports forapprovalApprove and sign evaluation reports

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

TERM LOAN ADMINISTRATION



are appropriately authorised


This process applies to all project loan disbursements


TreasuryManager

DirectorLegal

RV RVReview and recommend evaluation reports for

112




DeputyChiefExecutive,Finance

Board ofDirectors

RV

AP




1. DF receivesapprovedbudgetary

requirement and

(2) instructs TMto arrange for

financing

3. TM instructsTreasury Officer

to request forproposals /term sheetsfrom banks

4. TreasuryOfficer receivesproposals/ term

sheets from

banks

5.Treasury team

evaluatesproposal, make

recommendationand forwards

evaluation report

to DF

6. DF reviewsevaluation report

and forwardproposal/ termsheet to DL for

review

7. Legal Teamreviews term

sheet/ proposals

to prepare anevaluation report

9. DCE, F reviewsboth treasury and

legal evaluationreports and

recommends forBoard approval

through CE

10a. BoD reviewevaluation

reports and

reach aconsensus

OK?

10b. BoD

approvesproposal/ termsheet notifying

DCE, F

10c. BoDcommunicates

issues raised toDCE, F for

further action

A

Yes

No

8. TreasuryOfficer prepares

combined reportand forwards to

DCE, F forreview


11. DCE , Fnotifies DFand TM of

Board

approval

12. TM forwardsapproved term

sheet to Bank forsignatures

BoDcommunicates

issues raised toF for

further action

End

113



Short term loan administration activity detail



1. Receiveapproved budget

Director Finance Director Finance receives approved

budgetary requirement from Director

Planning and Business Development

Manual Approved

budgetary

requirement

2. Notify TreasuryManager

Director Finance Director Finance instructs Treasury

Manager to arrange for financing by email

Manual

3. Request forproposals orterm sheets

Treasury Officer Treasury Officer is directed by Treasury

Manager to send a written request to

various banks asking for the submission of

proposals/term sheets

Manual

4. Receiveproposals orterm sheets

Treasury Officer Treasury Officer receives proposals or

term sheets from Banks

Manual Proposals/

Term sheets

5. Evaluateproposals/ termsheets

Treasury

Manager

Treasury Team evaluate term sheets and

proposals, make recommendations,

prepare and forward evaluation report to

Director Finance

Manual Evaluation

report

6. Reviewevaluationreport

Director Finance Director Finance reviews evaluation report

and forwards term sheet/proposal with

evaluation report to Director Legal for

review

Manual

7. Review termsheet

Director Legal Legal Team reviews term sheet or

proposal, prepares and forwards legal

review report to Treasury Officer for

Manual Legal review

report

START





compilation

8. Preparecombined report

Treasury Officer Treasury Officer combines finance and

legal review reports into a compiled report

and forwards to Deputy Chief Executive,

Finance

Manual Combined

report

9. Review andrecommendreport forapproval

Deputy Chief

Executive,

Finance

Deputy Chief Executive, Finance reviews

combined report and recommends to

Board for approval through Chief

Executive

Manual

10. Reviewevaluationreport

Board of

Directors

Board of Directors reviews combined

report to reach a consensus.

If Board approves, appropriate authorities

sign and Board Secretary affixes corporate

seal.

Manual Board

minutes

Approved

term sheet/

proposal

11. Notify treasury Deputy Chief

Executive,

Finance

Deputy Chief Executive, Finance is

notified of Board’s resolution and emails

Director Finance copying Treasury

Manager

Manual

12. Forwardapproved termsheet to bank

Treasury

Manager

Treasury Manager forwards approved

term sheet to Bank for signatures

Manual

13. File approvedterm sheet/proposal

Treasury Officer Treasury Officer receives and files the

Authority’s copy of approved term sheet/

proposal

Manual

CRP





END



16.0 SHORT-TERM LOAN DISBURSEMENT


The purpose of the process is to describe the short term loa

Process Owner

Treasury Manager

Process Objectives

To ensure short term loans are appropriately disbursed per terms and conditions outlined for the credit

facility

To ensure appropriate charges and interests are applied to the approv

To ensure short term loan disbursements are properly set up and accurately accounted for

Process Scope

This process applies to all short term loans.

Timeframe

N/A



Recommend invoice for approvalApprove invoice for paymentGenerate payment authorisation requestApprove and sign payment authorisationSet up loan

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

TERM LOAN DISBURSEMENT

The purpose of the process is to describe the short term loan disbursement process.


To ensure appropriate charges and interests are applied to the approved loan


This process applies to all short term loans.


DirectorFinance

ChiefExecutive

RVAP

Generate payment authorisation request INApprove and sign payment authorisation

117

n disbursement process.


ed loan


VRASignatories

LoanOfficer

APIN




1. DF receives

supplierinvoice andforwards to

TM

2. TM reviewsinvoice, forwards

to DF thencontacts lending

bank to verifyavailability of

funds

3. DFrecommends

invoice for

approval fromDCE,F

4. DCE, F

approves andrecommends

invoice forpayment from CE

5. CE approvesinvoice forpayment

notifying DCE,F and DF

6. DF generatespayment

authorisation requestand forwards to

appropriatesignatories

7. Appropriatesignatories

approve and signpayment

authorisationrequest notifying

DF

8. DF notifies bankto effect payment

by forwardingapproved invoice

and signed payment

authorisation

9. TM receivesbank advice

detailing loanbooked, payment

terms andamortisation

schedule

10. Loan

Officer setsup loan in

system

End

A


authorisation request

DF notifies bank

and signed payment

A

A

A

118



Short term loan disbursement activity detail



1. Receive invoice Director Finance Director Finance receives invoice from

Supplier through User Department and

forwards to Treasury Manager

Manual Invoice

2. Review invoice Treasury Manager Treasury Manager reviews invoice,

forwards to Director Finance and contacts

lending bank to verify availability of funds

Manual

3. Recommend forapproval

Director Finance Director Finance recommends invoice for

approval from Deputy Chief Executive,

Finance

Manual

4. Recommend forpayment

Deputy Chief

Executive, Finance


recommends invoice for payment and

forwards to Chief Executive

Manual

5. Approve forpayment.

Chief Executive Chief Executive approves invoice for

payment notifying Deputy Chief Executive,

Finance and Director Finance

Manual

6. Generatepaymentauthorisationrequest

Director Finance Director Finance generates payment

authorisation request and forwards to

appropriate signatories for signature

Manual

7. Approvepaymentauthorisation

Appropriate

signatories

Appropriate signatories sign payment

authorisation, notifying Director Finance

Manual

8. Notify bank Director Finance Director Finance notifies bank to effect Manual

START

CRP

CRP

CRP





payment by forwarding original copy of

approved invoice and signed payment

authorisation to bank

9. Receive transferadvice

Treasury Manager Treasury Manager receives bank advice

detailing loan booked, payment terms and

amortisation schedule and notifies

Director Finance

Manual

10. Set up loan Loan Officer Loan Officer sets up loan in system and

monitors due dates for repayments,

charges and interests.

11. File documents Treasury Officer Treasury Officer files copies of approved

invoice, payment authorisation and bank

advice

END



17.0 SHORT-TERM LOAN REPAYMENT


The purpose of the process is to describe the activities involved in short term loan

Process Owner

Treasury Manager

Process Objectives

To ensure adequate funds are available to meet repayment obligations

To ensure repayments are made a

To ensure repayments are appropriately authorised

To ensure repayments are completely and accurately recorded

Process Scope

This process applies to all short term

Timeframe

Aligned to terms and conditions of credit facility

Segregation of duties matrixActivity / Resources Treasury Manager

Authorise BankEffect payment

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

TERM LOAN REPAYMENT

The purpose of the process is to describe the activities involved in short term loan

adequate funds are available to meet repayment obligations

To ensure repayments are made according to terms and conditions

are appropriately authorised

completely and accurately recorded

loan repayments

of credit facility

Segregation of duties matrixTreasury Manager Bank

ININ

121

The purpose of the process is to describe the activities involved in short term loan repayment.




1. TM receivesnotification from

bank about pendingmaturity of credit

facility

2. TM writes tobank to debit VRA

account onmaturity of credit

facility

3. TM receives

bank advice ofdebit transactionto service short

term loan

End


TM receivesnotification from

bank about pendingmaturity of credit

TM writes tobank to debit VRA

maturity of credit

TM receives

bank advice ofdebit transactionto service short

122



Short term loan repayment activity detail

Act IDProcess Flow Responsibility Tasks Involved



1. Receive notificationfrom bank

Treasury Manager Treasury Manager receive

notification from bank about

pending maturity of credit facility

Manual Bank notification

2. Write to bank Treasury Manager Treasury Manager writes to bank

to debit bank account upon

maturity of credit facility

Manual

3. Receive bankadvice

Treasury Manager Treasury Manager receives bank

advice of debit transaction to

service short term loan (as stated

in terms and conditions of credit

facility)

Manual Bank advice

Short term loans key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Loan performance against conditions

precedent

Per loan

agreement

Per

Occurrence

Project Finance

Manager


START

END



Short term loans standard reports


Frequency

Reviewer

1. Short term loan

report


summary of short term loan

by lending agency and by type

of loan The report highlights

the following:

Loan disbursements

Principal and interest

repayments

Outstanding

commitments

Late payment charges

To provide

management

information on

performance of long

term loans

ERP Monthly Deputy Chief

Executive, Finance



Short term loan repayment process risk and control matrix (RCM)

Key risks


2 Non-compliance to the terms and conditions of the loan could result in penalties

3 Inadequate segregation of duties

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

tA

cc

ou

nt/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

tA

ss

er

tio

n

Co

ntr

ols

/P

oin

ts

of

Fo

cu

s

Ap

pli

ca

ble

Or

ac

leB

us

ine

ss

Pr

oc

es

sT

oo

lsT

co

de

(s)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

eR

efe

re

nc

e

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

1Short term loan -

Administration

To ensure loans

are appropriately

approved

O V N/A A

Term sheets/ proposals

submitted by banks are be

given fair evaluation to

ensure commitments are

made with banks that

propose the best deal.

Evaluation reports should be

reviewed by both Treasury

and Legal departments.

Board approval should be

sought and given.

M P E N/ATreasury

Officer



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

los

ur

e

Fin

an

cia

lS

tate

me

nt

As

se

rti

on

Co

ntr

ols

/P

oin

tso

fF

oc

us

Ap

pli

ca

ble

Or

ac

leB

us

ine

ss

Pr

oc

es

s

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y(E

,D,W

,M,Q

,A)

Po

lic

y/

Pr

oc

ed

ur

eR

efe

re

nc

e

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

2Short term loan -

Disbursement

To ensure

adequate

segregation of

duties

F R N/A N/A

Director Finance recommends

invoices for approval, Deputy

Chief Executive, Finance then

recommends invoices for

payment. Approval for

payment is given by Chief

Executive.

Payment authorisation

requests are generated by

Director Finance and

approved by an appropriate

signatory based on the

Authority's approval

threshold.

M P E N/ADirector

Finance

3Short term loan -

Repayment

To ensure

compliance to

terms and

conditions of the

loan

O O N/A N/A

Treasury Manager contacts

bank to debit authority's

account prior to maturity of

credit facility to avoid

penalties.

Mn P E N/ATreasury

Manager



18.0 STAFF LOANS


The purpose of the process is to describe staff loan application

Process Owner

Payroll Officer

Process Objectives

To ensure staff loan applications

To ensure staff are eligible for loans they have applied for

To ensure staff loans are appropriately authorised

To ensure staff loan transactions are completely and accurately recorded

To ensure staff loan repayment

Process Scope

This process applies to all staff loans

Timeframe

N/A


Verify eligibility of staff for loanApprove loan applicationSet up loan in systemSet up deductions in system

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

describe staff loan application, disbursement and repayment

staff loan applications are appropriately approved per the Authority’s policies

To ensure staff are eligible for loans they have applied for

To ensure staff loans are appropriately authorised

To ensure staff loan transactions are completely and accurately recorded

To ensure staff loan repayment deductions are set up promptly in the system

Segregation of duties matrixPayrollAccountingAssistant


HumanResourceManager

INAP AP

127

, disbursement and repayment processes.

Authority’s policies

in the system


ReceivablesSupervisor

IN

IN



Staff loans flow chart



Staff loan administration activity detail

Act ID Process Flow Responsibility Tasks Involved


Output


1. Complete loanapplicationform

VRA Staff VRA Staff picks and completes

appropriate Loan Application Form

depending on loan type from the finance

department

Manual Completed loan

application form

2. Verifyeligibility ofstaff for loan

Payroll Accounting

Assistant

VRA Staff submits Loan Application

Form to Payroll Accounting Assistant at

payroll unit for verification. Payroll

Accounting Assistant checks for staff

eligibility in accordance with Authority’s

policy

Manual Eligibility report

3. Seek approval Payroll Accounting

Assistant

Payroll Accounting Assistant forwards

application to Financial Accounting

Manager for approval if staff is eligible.

Where staff is not eligible, staff is notified

of refusal.

Manual

4. Approve loanapplication

Financial

Accounting

Manager


eligibility report and approves loan

application and forwards to Human

Resource Manager for second approval.

Manual

5. Approve loanapplication

Human Resource

Manager

Human Resource Manager approves loan

application and notifies Disbursement

Manual

CRP

CRP

START





Output


Manager

END



Staff loan disbursement activity detail



Output


1. Receiveapproved loanapplication

Accounts Officer Accounts Officer receives approved loan

application from human resources

department and recommends for

processing

Manual Approved loan

application

2. Set up staffloan in system

Account Payables

Officer

Accounts Officer sets up staff loan in

system, generating a payment voucher.

(Initiate payable and payment (cheque)

processes)

Payment voucher

Staff loan repayment activity detail



Output


1. Monitor loan Receivables

Supervisor

Receivables Supervisor monitors loan to

begin deductions.

Grace period depends on type of loan

Manual

END

START

START





Output


2. Set updeduction

Receivables

Supervisor

Receivables Supervisor sets up deduction

in oracle payroll after grace period

Manual

Staff loans key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Application to approval cycle 3 days Per

Occurrence

HR Manager Payroll Accounting Assistant

Staff loans standard reports


Frequency

Reviewer

1. Staff loan report This report provides a

summary of staff loans by

department and by type of

loan. The report

highlights the following:

Loan disbursements

Repayments

Outstanding balances

To provide

management

information on

performance of long

term loans

ERP Monthly Deputy Chief Executive, Finance

END



Staff loans process risk and control matrix (RCM)Key risks


2 Loans may not be accurately accounted for

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

As

ser

tio

n

Co

ntr

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/P

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ts

of

Fo

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Or

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Pr

oc

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To

ols

Tc

od

e(s

)

Co

ntr

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Ty

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(I,S

,M,R

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)

Co

ntr

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Ap

pr

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ch

(P,D

)

Fr

eq

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nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

1Staff Loans -

Administration

To ensure only

eligible staff are

awarded loan

privileges

C v N/A N/A

Payroll Accountant

verifies staff eligibility

for loan according to the

Authority's policy on

staff loans

Loan applications are

approved by both

Financial Accounting

Manager and Human

Resource Manager

M D E N/APayroll

Accountant

2Staff Loans -

Disbursement

To ensure loans

are accurately

accounted for

c V, A BS C

Staff Loan applications

are recommended for

processing by

Disbursement Manager.

Account Payables

Officer sets up staff loan

M D E N/APayroll

Accountant

3Staff Loans -

Repayment

To ensure

deductions to

loans are made

in accordance

to loan policies

c V,A BS C

Receivables Supervisor

sets up deductions in

payroll application

M D E N/AReceivables

Supervisor



INVOICE PROCESSES

17. PAYABLES


This process applies to the receipt and

Process Owner


Process Objectives

To ensure receipt of invoices are logged for future reference

To ensure invoices are processed in a timely manner

To ensure invoices are appropriately matched

To ensure invoices are approved for payment in accordance with approval hierar

Process Scope

This applies to all invoices for goods, services and works procured by the Authority

Timeframe

Aligned to procurement cycle


Input and match invoicesReview and validate invoices

Authorise payment

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

ES

and processing of approved invoices.

To ensure receipt of invoices are logged for future reference

invoices are processed in a timely manner

To ensure invoices are appropriately matched

To ensure invoices are approved for payment in accordance with approval hierar

all invoices for goods, services and works procured by the Authority

Segregation of duties matrixAccountsPayablesOfficer


PRRV

134

To ensure invoices are approved for payment in accordance with approval hierarchy

all invoices for goods, services and works procured by the Authority.


DisbursementManager

RV RV

AP



Payables process flow chart

3.

details in payables

matched invoices to

generates payment

Manager authorises

flow chart

Paymentprocess is

initiated

End

1. Finance

Admin Assistantreceives and

registers invoicefrom Supplier

2. FinanceAdmin Assistantforwards invoice

to APO for

processing

. APO enters invoice

details in payablesmodule

4a. APO performsmatch in system

PO transaction?

5. APO routesmatched invoices to

AP Supervisor forreview

4b. APO routesinvoices to

DisbursementManager

6. DisbursementManager validates

and approvesinvoices

7. AP Supervisor

generates paymentauthorisation and

forwards forapproval

8. DisbursementManager authorises

payment

Yes

No

A

A

135



Payables activity detail

ActID



1. Receive invoice Finance

Administrative

Assistant

Finance Administrative Assistant receives

invoice from supplier, registers in excel

document log book and forwards to Account

Payables Officer (notifying Disbursement

Manager and Payables Supervisor).

Manual Supplier

Invoice


Finance

Administrative

Assistant

Finance Administrative Assistant forwards

invoice to Account Payables Officer for

processing

Manual

3. Enter invoice details Account Payables

Officer

Account Payables Officer enters invoice

details in accounts payable module

Auto Payment

voucher

4. Perform match Account Payables

Officer

Account Payables Officer performs four-way

match for goods, matching invoice, goods

received note, inspection report and purchase

order or performs three-way match for

services matching invoice, certificate of

completion (inspection note) and purchase

order (works order)

A match is not performed for non- purchase

order transactions

Auto

5. Route invoices Account Payables

Officer

Account Payables Officer routes matched

invoices to Accounts Payables Supervisor for

review, rejects unmatched invoice in system

Auto

START



ActID



and notifies Category Manager of rejects

Invoices for non-purchase order transactions

are also routed to the Disbursement Manager

for validation and approval.

6. Validate andapprove invoices

Disbursement

Manager

Disbursement Manager validates and

approves invoices for non-purchase order

transactions, and routes to Accounts Payables

Supervisor

Auto

7. Generate paymentauthorisation

Accounts

Payables

Supervisor

Accounts Payables Supervisor generates

payment authorisation and forwards for

approval

Auto

8. Authorise payment Disbursement

Manager

Disbursement Manager authorises payment. Auto

END

CRP

CRP



Payables key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Average days between receipt of invoice

and receipt by payables officer

2 days Monthly Finance Administrative

Assistant

2. Invoice receipt by Payables Officer to

approval cycle

2 days Monthly Disbursement

Manager

Payables Officer

3. Number of invoices set-up as a % of

invoices available for processing over the

reporting period

XXX Monthly Disbursement

Manager

Account Payables Officer

4. Number of overdue invoices XXX Monthly Director Finance Disbursement Manager

5. Timeliness of blocked invoice

notifications to Supplier

2 days Monthly Disbursement

Manager


6. Time taken to resolve blocked invoices XXX days Monthly Director Finance Disbursement Manager

7. % of blocked invoices communicated to

purchase order raiser within 2 days of

posting invoices

100% Monthly Disbursement

Manager


8. Number of duplicate set-ups Zero Tolerance Quarterly Disbursement

Manager


9. % first time match At least 90% Monthly Director Finance Disbursement Manager



Payables standard reports


Frequency

Reviewer

1. Non-purchase

order transactions

report

This report provides a list of

transactions that are not

backed by purchase orders n

To measure enforcement of

the purchasing process

(high occurrence indicate

poor enforcement)

ERP Monthly Financial

Accounting Manager

2. Outstanding

invoice report

This report lists invoices not

processed within standard

processing time

To measure performance in

the invoice receipt to

processing cycle

ERP Monthly Disbursement

Manager



Payables process risk and control matrix (RCM)

Key Risks:

1 Invalid supplier claims are processed for payment:

2 Purchases representing goods which have not been received or for which title has not passed

3 Purchases representing services which have not been rendered

4 Unauthorised purchase of goods and services

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

lS

tate

me

nt

As

se

rti

on

Co

ntr

ols

/P

oin

tso

fF

oc

us

Ap

pli

ca

ble

Or

ac

leB

us

ine

ss

Pr

oc

es

sT

oo

ls

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y(E

,D,W

,M,Q

,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

1 Payables

To ensureinvoices are

appropriately

backed byworks/

supporting

documents

F A,V IS/BS C,A,CL, CO

Account Payables

Officer performsfour-way match,

matching invoice,

goods receivednote, inspection

report and purchase

order (for goods).For services the

invoice is matched

to a certificate ofcompletion and

purchase/ works

order.

Where there is no

S D E

Account

PayablesOfficer



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

eC

ate

go

ry

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e(C

,A,V

,R)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

los

ur

e

Fin

an

cia

lS

tate

me

nt

As

se

rti

on

Co

ntr

ols

/P

oin

tso

fF

oc

us

Ap

pli

ca

ble

Or

ac

leB

us

ine

ss

Pr

oc

es

sT

oo

lsT

co

de

(s)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y(E

,D,W

,M,Q

,A)

Po

lic

y/

Pr

oc

ed

ur

eR

efe

re

nc

e

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

2 Payables

TO ensure

supplier invoices

for which

purchase orders

do not exist are

verified as to

accuracy and

completeness

prior to payment

F C, A, V IS/BS C,A,CL, CO

Invoices for which

a purchase order or

receiving report

does not exist must

be approved by

authorised

personnel before

payment.

M, Mn P E N/ADisbursement

Manager



18. PREPAYMENTS

Process description

Overview

This process applies to granting advanc

Process Owner


Project Finance Officer

Process Objectives

To ensure prepayments are appropriately authorised and approved

To ensure advance payment requests

To ensure complete and accurate record keeping

Process Scope

This applies to all advance payment request

Timeframe




Review progress payment certificate

Approve advance request/progress paymentcertificate/ advance retirementEnter and apply advance retirement details insystem

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

granting advance payments to suppliers and staff.

prepayments are appropriately authorised and approved

advance payment requests are processed in a timely manner

ensure complete and accurate record keeping of all prepayments

advance payment request for goods, services and works procured by the Authority.


Appropriate Authority(per approvalthreshold)

ProjectManager

Approve advance request/progress paymentAP

nt details in

142

, services and works procured by the Authority.

ProjectManager


RV

PR



Prepayments (supplier and contractor)

1. ProjectDirector

receives requestfor mobilisation

funds fromContractor

2a. ProjectDirector

seeks

approval foramount

Amount within

threshold

3. Appropriateauthorityapproves

request andforwards for

processing

4. Payables andpayments

processes areinitiated

5. Contractorsubmits progress

payment certificatefor review and

processing

6. Project Managerreviews andrecommends

progress paymentcertificate for

approval

7. AppropriateVRA authority

approves progresspayment certificate

and forwards to

payables unit forprocessing

8. ProjectManagermonitorsproject

Payables andpayments


End

No

(supplier and contractor) process flow chart

ProjectDirector

receives requestfor mobilisation

funds fromContractor

ProjectDirector

seeks

approval foramount

Amount within

threshold?

2b. ProjectDirector

approvesrequest

Appropriateauthorityapproves

request andforwards for

processing



Contractorsubmits progress

payment certificatefor review and

processing

Project Managerreviews andrecommends

progress paymentcertificate for

approval

AppropriateVRA authority

approves progresspayment certificate

and forwards to

payables unit forprocessing

ProjectManagermonitorsproject



End

A

A

A

Yes

No

143



Prepayments (supplier and contractor) activity detail



1. Receive requestfor mobilisationfunds

Project Director Project Director receives Request for

Mobilisation Funds from Contractor

based on payment schedule agreed

at contract negotiations

Manual Request for

mobilisation

funds

2. Seek approval Project Director Project Director seeks approval from

appropriate authority for amounts

beyond approval threshold

Manual

3. Approve request Appropriate

authority

Appropriate Authority per VRA’s

approval hierarchy approves request

and forwards for processing

Manual Approved

request

4. Forward requestfor processing

Project Director Project Director forwards request to

accounts payables and initiates

payables and payments processes

Manual Processed

request

5. Submit progresspaymentcertificate

Contractor Contractor submits progress

payment certificate to Project

Manager for review and processing

Manual Progress

payment

certificate

6. Review progresspaymentcertificate

Project Manager Project Manager reviews progress

payment certificate and recommends

for approval based on approval

hierarchy

Manual

7. Approveprogresspayment

Appropriate

Authority

Appropriate Authority approves

progress payment certificate and

Manual Approved

progress

START

CRP

CRP





certificate forwards to Payables Officer.

Refer to payables and payment

processes

payment

certificate

8. Monitor project Project Manager Project Manager monitors project

execution

Manual

END



Staff advances (for business activ

1. Line Manageridentifies need

for advance and

communicatesto AdvanceFacilitator

2. Advance

Facilitatorcompletesrequest for

advance formand forwards to

Supervisor

3.Supervisorrecommend

s request forapproval

4a. Manager orappropriate

authority

approve requestfor advance

4b. Advance

Facilitatorforwards

approved requestto AP for

processing



5. Advance

facilitatorreceives and

cashescheque

End

Request

A

(for business activities) process flow chart

1. Advancefacilitator

completes a

workingadvance

retirement form

2. Advance

facilitator attachesreceipts to

retirement formand forwards to

Supervisor

3. Supervisorrecommends request

to Manger/Appropriate

Authority forapproval depending

on approval limit

4. Manager orAppropriate

Authority approveretirement formand forwards to

finance forprocessing

5. Finance AdminAssistant receives

and registersretirement form

with attached

receipts

6. Finance AdminAssistant forwardsretirement forms

to APO forprocessing

7. APO entersretirement detailsinto AP module to

generate paymentvoucher

8. APO appliespayment voucher to

initial advance to

clear off advance

9. AP Supervisorposts transaction to

general ledger

End

Retirement

A

146



Staff advances (for business activities) activity detail



Request

1. Identify need foradvance

Line Manager Line Manager identifies need for advance

and communicates to Advance Facilitator

Manual

2. Completerequest foradvance form

Advance

Facilitator

Advance Facilitator completes a request

for advance form and forwards for

recommendation by Supervisor

Manual Request for

advance


Supervisor Supervisor recommends request to

Manager for approval depending on

approval limits (for advances)

Manual

4. Approve request Manager or

Appropriate

Authority

Manager or Appropriate Authority

approves request and forwards to finance

for processing and payment

(Refer to payables and payment

processes).

Manual

5. Receive cheque Advance

Facilitator

Advance Facilitator receives and cash

cheque

Manual

Retirement

1. Completeworking advanceretirement form

Advance

Facilitator

Advance Facilitator completes a working

advance retirement form and attaches

receipts

Manual Working

advance

retirement

form

START

CRP





2. Forward forrecommendation

Advance

Facilitator

Advance Facilitator forwards form to

Supervisor for recommendation for

approval

Manual


Supervisor Supervisor recommends request to

Manager for approval depending on

approval limits (for advances)

Manual

4. Approveretirement form

Manager or

Appropriate

Authority

Manager or Appropriate Authority

approves retirement form forwards to

finance for processing

Manual

5. Receiveapprovedretirement formswithattachments

Finance

Administrative

Assistant

Finance Administrative Assistant

receives approved retirement forms with

attachments and registers in excel

document log book. The Disbursement

Manager and Supervisor are notified.

Manual Approved

retirement

form

6. Forwardretirementrequest topayables unit

Finance

Administrative

Assistant

Finance Administrative Assistant

forwards retirement request to Account

Payables Officer for processing

Manual

7. Enter retirementattachmentdetails

Account

Payables Officer

Account Payables Officer enters

retirement attachment details in

accounts payable module

Auto Payment

voucher

8. Apply paymentvoucher toadvance

Account

Payables Officer

Account Payables Officer applies

payment voucher to initial advance to

clear off advance

Auto

CRP





9. Post transaction Account

Payables

Supervisor

Account Payables Supervisor posts

transaction to general ledger

Auto

Prepayments standard reports


Frequency

Reviewer

Prepayment

(Supplier and

Contractor

report


summary of prepayments as at

a specified period and the

prepayment balances as a

percentage of related project

costs

To provide

management

information on

prepayments as at a

specified date

ERP Monthly Project Finance Manager

Staff advance

status report

This report shows balances on

staff advances for business

activities that have been

accounted for and those that

have not been accounted for

To keep records of

staff advances that

have not been

accounted for

ERP Monthly Advance Facilitator

END



Prepayments process risk and control matrix (RCM)Key risks

1 Unauthorised approvals

2 Supplier or contractor could abandon project after receiving prepayment

3 Staff advances are not accounted for

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

tA

cc

ou

nt/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

tA

ss

er

tio

n

Co

ntr

ols

/

Po

ints

of

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

es

s

Pr

oc

es

sT

oo

ls

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,

A)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

1

Prepayments -

Supplier and

Contractor

To ensure supplier

prepayments are

approved per the

Authority's

approval threshold

O V N/A N/A

Requests for

mobilisation funds is

approved by

appropriate authorities

per VRA's approval

threshold

Mn P E

VRA

approval

threshold

2

Prepayments -

Supplier and

Contractor

To ensure

adequate

monitoring and

supervision of

work after

prepayment

O V N/A N/A

Progress of work is

monitored and a

progress payment

certificate submitted to

Project Manager to be

recommended for

approval

Progress payment

certificate is approved

for payment by

appropriate authority

depending on VRA

approval threshold

Mn P E

VRA

approval

threshold

Project

Manager



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Asse

rti

on

Co

ntr

ols

/

Po

ints

of

Fo

cu

s

Ap

pli

ca

ble

Or

ac

leB

usin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

3Prepayments -

Staff Advances

To ensure staff

requests for

advance are

appropriately

approved

F V, R N/A N/A

An Advance Facilitator is

appointed for each

operating unit to place

requests for advance.

Requests are

recommended for

approval by a Supervisor

and approved by a

Manger or an appropriate

authority depending on

the amount involved

M,Mn P E N/AAdvance

Facilitator

4Prepayments -

Staff Advances

To ensure staff

advances are

accounted for

with supporting

documents

F C, A, V IS C, A

Retirement forms with

supporting documents

should be forwarded to

should be approved by a

Manager or an

appropriate authority

depending on VRA

approval threshold and

forwarded to account

payables for processing

M, Mn P E N/A



19. PAYMENT PROCESS

Process description

This process applies to the payment of approved

module.

Process Owner

Disbursement Manager

Process Objectives

To ensure payments are made in accordance with authoris

To manage cash flow

Process Scope

This applies to all payments for goods, services and works procured by the Authority.

Timeframe




Determine payment method

Approve authorisation for payment

Generate cheques

Sign cheques

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

PROCESS

payment of approved invoices that have been set-up in the accounts payables

payments are made in accordance with authorised invoices

for goods, services and works procured by the Authority.


DisbursementManager

VRA Signatories

IN

AP

AP

152

up in the accounts payables

for goods, services and works procured by the Authority.

XXX

IN



Payment process flow chart

TBDCheque

process flow chart

1. Payment Officergenerates due

supplier invoice listfrom system and

forwards toDisbursement

Manager

3. DisbursementManager selects

payment method in

system

2. Disbursement

Manager withTreasury

Manager selectbank account for

payment

4. Payment Officer

prepares andforwards payment

authorisationletter for approval

5. Authorisedsignatories at

categoriesA&B signpayment

authorisationletter

7. Registryregisters and

dispatches letterto bank

8. Director

Finance receivesbank advice aftertransfer has been

made

End

Wire transfer

6. Payment Officermakes and files acopy of payment

authorisation andforwards to registry

for registration

153

Payment Officer

prepares andforwards payment

authorisationletter for approval

Authorisedsignatories at

categoriesB sign

payment

authorisation

Registryregisters and

dispatches letter

Director

Finance receivesbank advice aftertransfer has been

A

Payment Officermakes and files acopy of payment

authorisation andforwards to registry

for registration



Payment activity detail

ActID



Output


1. Generate duesupplier invoice list

Payment Officer Payment Officer generates due supplier

invoice list from system and forwards to

Disbursement Manager

Auto Due supplier

invoice list

2. Select bank accountfor payment

Disbursement

Manager

Disbursement Manager selects bank

account for payment in accordance with

approval from Treasury Manager

Manual

3. Select paymentmethod

Disbursement

Manager

Disbursement Manager selects payment

method i.e. payment cheque or by

electronic transfer (refer to process) based

on payment method agreed with Supplier

Manual

START

END



Payment by cheque sub-process

ActID



Payment by wire transfer

ActID



4. Prepare paymentauthorisation letter

Payment Officer Payment Officer prepares and

forwards payment authorisation

letter to VRA authorised

signatories for approval

Manual Payment

authorisation letter

5. Approve paymentauthorisation letter

Signatories Approved signatory signs

payment authorisation letter

Manual Approved payment


6. Register paymentauthorisation letter

Payment Officer Payment Officer makes and files

a copy of payment authorisation

and forwards to registry for

Manual Copy of approved

payment

START

END

START

CRP



ActID



registration authorisation

7. Dispatch letter Registry Registry registers and dispatches

payment authorisation letter to

bank and Bank Manager acts on

request

Manual

8. Receive bank advice Director Finance Director Finance receives bank

advice after transfer has been

made.

Auto/ Manual Bank advice

Payment key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Number of duplicate payments Zero Monthly Disbursement Manager Payment Officer

2. Approved invoice to payment cycle time Monthly Disbursement Manager Payment Officer

END



Payment standard reports


Frequency

Reviewer

1. Overdue invoice

report

This report shows invoices

that are overdue for

payment

To provide information to

manage risk/ cost

associated with late

payment of invoices

ERP Monthly Disbursement Manager

2. % of invoices

paid

electronically

This report shows the

number of payments paid

electronically compared to

the total number of

payments over a specified

period




Payment process risk and control matrix (RCM)

Key risks

1 Unauthorised payments are made and established authorisation and approval limits are not adhered to

2 Inaccurate and incomplete recording of payments/cash disbursement in the proper accounting period

No

.

Su

bp

ro

cess

Co

ntr

ol

Ob

jecti

ve

Co

ntr

ol

Ob

jecti

ve

Cate

go

ry

(C,F

,O)

Co

ntr

ol

Ob

jecti

ve

Typ

e

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Acco

un

t/

Dis

clo

sure

Fin

an

cia

l

Sta

tem

en

t

Asserti

on

Co

ntr

ols

/P

oin

ts

of

Fo

cu

s

Ap

pli

cab

le

Oracle

Bu

sin

ess

Pro

cess

To

ols

Tco

de(s

)

Co

ntr

olT

yp

e

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pro

ach

(P,D

)

Freq

uen

cy

(E,D

,W,M

,Q,A

)

Po

licy

/

Pro

ced

ure

Refe

ren

ce

Co

ntr

ol

Ob

jecti

ve

Ow

ner

1 PaymentTo manage

cash flowF C, A, V N/A N/A

Disbursement

Manager consults

Treasury Manager

about the bank

account for payment

for cash

management

purposes

M P E N/ADisbursement

Manager

2Payment by

cheque

To ensure

payables are

properly

validated and

authorised

F C, A, V BS A

A payment

authorisation

request is generated,

validated and signed

by appropriate

authorities

N, Mn P E N/ADisbursement

Manager

3

Payment by

wire

transfer

To ensure

approval is

granted by

appropriate

signatories

F C, A, V BS A

Signatories from

VRA categories A &

B sign payment


that would be

forwarded to the

bank to effect

transfer

M P E N/ADisbursement

Manager



BANK ACCOUNT ADMINISTRATION

20. BANK ACCOUNT CREATION

Process description

Overview

This process describes the activities involved in opening a new bank account

Process Owner

Treasury Manager

Process Objectives

To ensure creation of bank accounts

To ensure bank account database is complete

Process Scope

This applies to creation of new bank accounts

Timeframe

N/A


Review and approve request/ account openingforms

Sign specimen signature cardsAuthorise bank account opening

Create bank account code in GL and cashmanagement module

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

ADMINISTRATION

BANK ACCOUNT CREATION

involved in opening a new bank account.

of bank accounts is appropriately authorised and approved

base is completely and accurately updated with details of new bank account

new bank accounts in the Authority.

Segregation of duties matrixDirectorFinance

Appropriateauthorities

Review and approve request/ account opening RVAP

AP

Create bank account code in GL and cash

159

ed and approved

with details of new bank account

Appropriate Board ofDirectors


AP

IN




1. TM identifiesneed for newbank account,

completes

request form andforwards for

review

2a. DFreviewsrequest

Requestwarranted?

2 b. DFapproves

request andnotifies TM

3. TM contactsbank for account

opening form andspecimen

signature cards

4a. TreasuryOfficer

completesform and

forwards to TM

5. DF approves completedaccount opening formsand forwards specimen

signature cards with

approved account openingforms to authorised

signatories for signing

6. Authorisedsignatories sign

specimen

signature cardsand notify DF

7. DF forwardsapproved form

and signed

specimen card toDCE, F to seekBoard approval

Yes

2c . DFreturns

request toTMNo

A

A

A


9. BoD reach a

resolution toopen bank

account

8. DCE, Fforwards approved

form and signed

specimen card toBoard for approval

10. CE and BoardSecretary authorise

bank accountopening by signing

account openingforms

11a. TM preparesand attaches

transmittal to bankaccount opening

forms and

signature cards

11b. TM forwardstransmittal withattachments to

DF for signature

12. DF signstransmittal

and forwardswith

attachmentfor dispatch


forwardsdocuments to

bank

14. DirectorFinance receives

new bankaccount details

from bank andnotifies TM

15. TM sends

request to FAMto create new

bank account insystem

request to

End

16. FAM creates GLcode and (17) createsbank account in cash

management module

A

160



Bank account creation activity detail

ActID



Output


1. Complete

account opening

request form

Treasury

Manager

Treasury Manager identifies need for a new

bank account, completes account opening

request form and forwards to Director Finance

for review

There should be a standard request form and

Bank Administration policy for opening,

closing and modifying bank accounts

Manual Completed

account

opening

request

form

2. Review andapprove request

Director

Finance

Director Finance reviews request, determines

whether request is warranted and approves

request notifying Treasury Manager

Manual Approved

request

3. Contact bank Treasury

Manager

Treasury Manager contacts bank and obtains

bank account opening forms and specimen

signature cards

Manual Bank

account

opening

forms

4. Complete bankopening forms

Treasury Officer Treasury Officer completes bank account

opening forms and forwards (with request) to

Treasury Manager for review

Manual

5. Approve forms Director

Finance

Director Finance approves forms, and

forwards specimen signature cards to

authorised signatories for signing

Manual Approved

bank

account

opening

forms

START

CRP

CRP



ActID



Output


6. Sign specimensignature cards

Authorised

signatories

Authorised signatories signed specimen

signature cards notifying Director Finance

Manual

7. Forwardapproved formsto ChiefExecutive,Finance

Director

Finance

Director Finance forwards approved forms

and signed specimen cards to Deputy Chief

Executive, Finance to seek approval of the

Board

Manual Transmittal

letter

8. Seek Boardapproval

Deputy Chief

Executive,

Finance

Deputy Chief Executive, Finance forwards

completed bank account opening form and

signature specimen cards to seek Board

approval to open new bank account

Manual

9. Reach aresolution

Board of

Directors

Board of Directors reach a resolution to open

new bank account

Manual

10. Authorise bankaccount opening

Chief Executive Chief Executive and Board Secretary authorise

bank account opening by signing bank account

opening forms

Manual

11. Preparetransmittalletter

Treasury

Manager

Treasury Manager prepares and attaches

transmittal letter to bank account opening

forms and forwards together with request form

to Director Finance for signature

Manual Transmittal

letter

12. Sign transmittal Director

Finance

Director Finance signs transmittal letter and

forwards to registry for dispatch

Manual Signed

transmittal

letter

13. Dispatchtransmittal with

Registry Registry dispatches transmittal with account

opening documents to bank for account

Manual



ActID



Output


account openingdocuments

opening

14. Receive newbank accountdetails

Director

Finance

Director Finance receives new bank account

details from Bank after opening of new account

Manual Bank

account

details

15. Request forcreation of bankaccount insystem

Treasury

Manager

Treasury Manager forwards a request Financial

Accounting Manager to create bank account in

system

Manual

16. Create bankaccount code ingeneral ledger

Financial

Accounting

Manager

Financial Accounting Manager creates the

appropriate general ledger code for new bank

account

Manual

17. Create bankaccount

Financial

Accounting

Manager

Financial Accounting Manager creates bank

account in cash management module

Manual

18. File all bankdocumentation

Treasury Officer Treasury Officer files copies of all bank

documents for future reference

Manual

END



21. MODIFYING EXISTING BANK ACCOUNT

Process description

Overview

This process describes the activities involved in modifying an existing bank account including

or revising an authorised signatory to the bank account

Process Owner

Cash Manager

Process Objectives

To ensure modification of bank accounts is appropriately authorised and approved

To ensure bank account database is completely and accurately updated

Process Scope

This applies to all bank accounts.

Timeframe

N/A



Review and approve modification request

Approve and sign modification letter

Update bank account database with modification

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

MODIFYING EXISTING BANK ACCOUNT

involved in modifying an existing bank account including

to the bank account.

on of bank accounts is appropriately authorised and approved

To ensure bank account database is completely and accurately updated


DirectorFinance

Appropriatesignatories

Review and approve modification request RV

APApprove and sign modification letter

Update bank account database with modifications

164

involved in modifying an existing bank account including adding, deleting,

on of bank accounts is appropriately authorised and approved

Appropriatesignatories

TreasuryManager

AP

IN



Modifying existing bank account

1. TM completesan account

modificationrequest form

and forwards to

DF

2b. DF

approvesrequest

notifyingTM

2 a. DFreviews

request

Requestwarranted?

Yes

No

3. TM preparesmodification

letter providingdetails of

modification

4. DF reviewsletter and

forwards toappropriatesignatories

5. First and

second levelsignatories

approve and signmodification

letter

6. TM sendsapproved

modification

letter to registryfor dispatch


dispatchesmodification

letter to bank

8. DF receivesnotification from

bank ofmodifications

made

9. TM updatesbank database

withmodificatins

End

A

A

Modifying existing bank account process flow chart

2c. DFreturns

request toTM

No

165



Modifying existing bank account activity detail

ActID



Output


1. Complete achange of detailsrequest form

Treasury

Manager

Treasury Manager identifies the need to

modify an existing bank account,

completes a change of details request

form and forwards to Director Finance for

review

There should be a standard request form

and Bank Administration policy for

opening, closing and modifying bank

accounts

Manual Completed

change of details

request form

2. Review andapprove request

Director

Finance

Director Finance reviews request,

determines whether request is warranted

and approves request notifying Treasury

Manager

Manual Approved

request

3. Preparemodificationletter

Treasury

Manager

Treasury Manager prepares modification

letter instructing Bank of which account to

modify and what modifications are

required and forwards modification letter

to Director Finance for review

Manual Modification

letter

4. Reviewmodificationletter

Director

Finance

Director Finance reviews modification

letter and forwards to appropriate

authorities for first and second level

signatures

Manual

START

CRP



ActID



Output


5. Approvemodification

First and second

level signatories

First and second level signatories approve

modification letter by signing

Manual Approved

modification

letter

6. Forward toregistry

Treasury

Manager

Treasury Manager forwards approved

modification letter to registry for dispatch

Manual

7. Dispatch letter Registry Registry registers and dispatches

modification letter to bank

Manual

8. Receivenotification frombank

Director

Finance

Director Finance receives notification from

bank about modifications made and

notifies Treasury Manager

Manual Bank

notification

9. Update BankAccountDatabase

Treasury

Manager

Treasury Manager updates Bank Account

Database with changes and files copies of

bank documents for future reference

Manual

END

CRP



22. BANK ACCOUNT CLOSING

Process description

Overview

This process describes the activities performed

Process Owner

Treasury Manager

Process Objectives

To ensure bank account closing requests are appropriately approved

To ensure the bank account data base is updated completely and accurately

Process Scope

This applies to all bank accounts

Timeframe

N/A



Review and approve request

Authorise bank account closingUpdate bank account database

Close GL codes

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

BANK ACCOUNT CLOSING

This process describes the activities performed when closing an existing bank account

To ensure bank account closing requests are appropriately approved

To ensure the bank account data base is updated completely and accurately


DirectorFinance

Board ofDirectors

RVAP

AP

168

when closing an existing bank account.

TreasuryManager


ININ



Bank account closing process flow chart

1 . TM identifiesneed to closeexisting bank

account,

completesrequest form and

forwards forreview

2a. DFreviewsrequest

Requestwarranted?

2b. DFapproves

request and

notifies TM

Yes

2c. DFreturns

request toTM

No

3. TM preparesaccount closureletter providingaccount closure

details

4. DF reviewsaccount

closure letter

and forwardsfor approval

5. DCE, F seeksBoard approval

to close bank

account

6. BoD reach a

resolution toclose bank

account

7. CE and Board

Secretaryauthorise bankaccount closing

by signingaccount closure

letter


dispatches letter

to bank

9. Bank transfersremaining funds per

instructions is

closure letter andcloses bank account

A

A

losing process flow chart

returnsrequest to

10. Banknotifies DF

and TM ofclosure

11. TM updatesbank account

database withclosed account

12.TM notifiesinternal and

externalstakeholders of

closed bankaccount

14. FAM closes GL

codes associated withclosed account

End

169



Bank account closing activity detail

ActID



Output


1. Complete an accountclosure request form

Treasury

Manager

Treasury Manager identifies the need to

close an existing bank account,

completes an account closure request

form and forwards to Director Finance

for review

There should be a standard request

form and Bank Administration policy

for opening, closing and modifying

bank accounts

Manual Completeaccountclosurerequest form

2. Review and approverequest

Director Finance Director Finance reviews request,

determines whether request is

warranted and approves request

notifying Treasury Manager

Manual Approvedrequest

3. Prepare accountclosure letter

Treasury

Manager

Treasury Manager prepares account

closure letter instructing Bank of which

account to close and where to transfer

remaining fund in account, then

forwards account closure letter to

Director Finance for review

Manual Accountclosure letter

4. Review accountclosure letter

Director Finance Director Finance reviews account

closure letter and forwards Deputy

Chief Executive, Finance to seek Board

Manual

START

CRP



ActID



Output


approval

5. Seek Board approval Deputy Chief

Executive,

Finance


forwards bank account closure letter to

Board of Directors

Manual

6. Reach a resolution Board of

Directors

Board of Directors reach a resolution to

close existing bank account

Manual

7. Authorise bankaccount closing

Chief Executive Chief Executive and Board Secretary

authorise bank account closing by

signing bank account closure letter then

forward to registry

Manual

8. Dispatch letter tobank

Registry Registry registers and dispatches letter

to Bank

Manual

9. Transfer funds andclose account

Bank Bank transfers any remaining funds

according to instructions in account

closure letter and closes account.

Manual Bank advice

10. Receive banknotification

Director Finance Director Finance receives notification

of bank account closure and notifies

Treasury Manager

Manual

11. Update Bank AccountDatabase

Treasury

Manager

Treasury Manager updates Bank

Account Database to reflect the closing

of the account.

Manual

12. Notify stakeholdersof account closing

Treasury

Manager

Treasury Manager informs internal and

external stakeholders of the closing of

Manual

CRP



ActID



Output


the bank account.

13. Close general ledgercodes as necessary

Financial

Accounting

Manager

Financial Accounting Manager closes

general ledger codes associated with

closed bank account

Auto

14. File all bankdocumentation

Treasury

Manager

Treasury Manager files copies of all

bank documents for future reference

Manual

END



Bank account administration process risk and control matrix (RCM)

Key Risks:

1 Unauthorised bank accounts, risk of fraud, increased bank fees

2 Unwarranted requests to open bank accounts

3 Inadequate segregation of duties

4 Unauthorised/ fraudulent transactions could be made using through closed bank account details

No.

Su

bp

rocess

Con

trolO

bje

cti

ve

Con

trolO

bje

cti

ve

Cate

go

ry

(C,F

,O)

Con

trolO

bje

cti

ve

Typ

e(C

,A,V

,R)

Fin

an

cia

l

Sta

tem

en

t

Accou

nt/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Asserti

on

Con

trols

/P

oin

ts

ofF

ocu

s

Ap

pli

cable

Oracle

Bu

sin

ess

Process

Tools

Tcod

e(s

)

Con

trolT

yp

e

(I,S

,M,R

,Mn

)

Con

trolA

pp

roach

(P,D

)

Frequ

en

cy

(E,D

,W,M

,Q,A

)

Poli

cy

/P

ro

ced

ure

Refe

ren

ce

Con

trolO

bje

cti

ve

Ow

ner

1

Bank

account

creation

To ensure request

to open bank

accounts are

justified

O V NA N/A

Director Finance reviews bank

account opening request, then in

consultation with Treasury

Manager, determines whether the

request is warranted and approves

the request

There should be a standard

request form and Bank

Administration policy for

opening, closing and modifying

bank accounts

M P E N/ADirector

Finance

2

Bank

account

creation

To ensure

appropriate

authorisation to

open new bank

account is

obtained

O V NA N/A

Bank account opening forms are

approved by Director Finance.

Specimen signature cards are

signed by first and second level

authorised signatories.

Board approval is sought to open

new bank accounts. The Board

Secretary and Chief Executive

sign bank account opening forms

when the Board resolves to open a

new bank account

M E N/ADirector

Finance



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Asse

rti

on

Co

ntr

ols

/P

oin

ts

of

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

3

Bank

account

modificatio

n

To ensure

modifications are

warranted and

appropriately

authorised

O V NA N/A


account modification request,


warranted and approves.

Modification letter is signed by

first and second level authorised

signatories

M P E N/ADirector

Finance

4

Bank

account

closing

To ensure bank

account closures

are appropriately

authorised

O V NA N/A


account closure request,


warranted and approves

Board approval is sought. Chief

Executive and Board Secretary

authorise bank account closure by

signing bank account closure letter

M P E N/ADirector

Finance

5

Bank

account

closing

To ensure bank

account database

is updated with

closure

O V NA N/A

Treasury Manger updates bank

account database with bank

account closure and informs

internal and external stakeholder

of bank account closure


closes general ledger codes

associated with closed bank

account

M P E N/ATreasury

Manager



CASH MANAGEMENT

23. DAILY CASH MANAGEMENT

Process description

Overview

This process describes the tasks performed

Process Owner

Treasury Manager

Process Objectives

To manage liquidity, control cash flow

To maximise short term investment of funds

Process Scope

This applies to all bank accounts

Timeframe

N/A



Generate daily cash report

Review and distribute daily cash report

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

CASH MANAGEMENT

CASH MANAGEMENT

performed to manage the company’s liquidity and optimise the use of cash

control cash flow and reduce the cost of borrowing

To maximise short term investment of funds


Treasury Officer Treasury Manager

IN

Review and distribute daily cash report RV

175

to manage the company’s liquidity and optimise the use of cash.

Treasury Manager



Daily cash management process flow chart

1.Treasury Officerdownloads prior day

bank statement

2. Treasury Officer

reconciles bankaccounts usingprior day bankstatements andcash position.

Reconcile?

4. Treasury Officerreviews electronic

transactions in

account payables andreceivables modules

5. Treasury

Officerassesses

daily cashrequirement

6. Treasury

Officerreviews short

term cashforecasts

7a. TreasuryOfficer

determineswhether expectedcash inflows and

outflowsoccurred

7b.TreasuryOfficer updates

cash forecastwith expected

inflows andoutflows

8. Treasury

Officer runsdaily cashreport andforwards to

Treasury

Managerforreview

9. TreasuryManager reviews

Daily Cash Reportforwards to

Director Finance

End

Yes

No

process flow chart

3. TreasuryOfficer

investigates

and resolvesdiscrepancy

176



Daily cash management activity detail

ActID



Output


1. Download priorday bankstatements

Treasury Officer Cash Manager downloads prior day bank

statements for each bank account

Auto

2. Reconcile bankaccounts

Treasury Officer Cash Manager reconciles all bank accounts

using the prior day's bank statements and

cash position.

Manual

3. Investigate andresolvediscrepancies

Treasury Officer Cash Manager investigates and resolves

discrepancies where prior day's cash

position does not reconcile to the daily bank

statements.

Manual

4. Reviewelectronictransactions

Treasury Officer Cash Manager reviews electronic

transactions such as wire transfer payments

and receipts in account payables and

receivables modules

Auto

5. Review cashposition

Treasury Officer Cash Manager does initial assessment of

cash position to assess daily cash

requirements

Manual

6. Review cashforecasts

Treasury Officer Cash Manager reviews short term cash

forecasts to see if expected cash inflows and

outflows occurred.

Manual

7. Update cashforecast

Treasury Officer Cash Manager determines whether expected

cash inflows and outflows that have not

Auto

START

CRP



ActID



Output


occurred will occur and when, then updates

cash forecast with new information

8. Run Daily CashReport

Treasury Officer Cash Manager runs daily cash report and

forwards for review

Auto

9. Review DailyCash Report

Treasury

Manager

Treasury Manager reviews Daily Cash

Report forwards to Director Finance.

Weekly cash reports are forwarded to the

Executive for planning purposes

Manual

END



Daily cash management key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1 Average daily idle cash Monthly Director Finance Treasury Manager

2 Average number of days billed are paid

before due date

Monthly Director Finance Treasury Manager

Daily cash management standard reports


Frequency

Reviewer

1 Daily Cash flow

report

This reports provides a

summary of expected cash

receipts and disbursements,

compared to cash forecasts

for a period

To provide

management

information for

planning and decision

making

ERP Daily Treasury

Manager

2 Daily Cash position

report

This report provides daily

cash balances by bank

account as at a specific time

Provides a snap shot of

daily cash balances

ERP Daily



Daily cash management cash management process risk and control matrix (RCM)

Key risks

1 Cash flow problems due to irregular monitoring of back accounts

2 Inability to meet cash obligations when they fall due

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

As

se

rti

on

Co

ntr

ols

/

Po

ints

of

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

es

s

Pr

oc

es

sT

oo

ls

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,

A)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1Daily Cash

Management

To ensure cash

flow/ liquidity

probelms do

not arise

F C, A , V IS/BSO. E, C, A,

R&O

Daily cash position of the

Authority is assessed y

analysing expected cash flow,

actual cash flow and csh

forecasts.

Reconciliations of daily cash

balances to expected and actual

cash flow is done and reported

to the Executive for planning

purposes

M,S, Mn P D N/ACash

Manager



24. BANK STATEMENT RECONCILIATION

Process description

Overview

This process describes activities involved in

Process Owner

Reconciliation Officer

Process Objectives

To identify differences between

To ensure accurate and complete adjusting entries

To ensure adjusting entries are appropriately approved

Process Scope

This policy applies to all bank accounts maintained by the Authority

Timeframe

Monthly


Activity / Resources ReconciliationOfficer

Perform bankreconciliation

PR

Review and approvereconciliation statement

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

BANK STATEMENT RECONCILIATION

involved in uploading/entering and reconciling bank statements

To identify differences between bank and book balances

To ensure accurate and complete adjusting entries

To ensure adjusting entries are appropriately approved

This policy applies to all bank accounts maintained by the Authority

atrix

Reconciliation Financial AccountingManager

PR

RV

AP

181

reconciling bank statements.



Bank statement reconciliation process flow chart

1. Reconciliation

Officer receives bankstatement and loads

onto oracle

2. ReconciliationOfficer runs auto

reconciliationprogramme to

generate a auto

reconciliationexecution report

4. ReconciliationOfficer runs reports

to identify unreconciled

transactions

3.

ReconciliationOfficer printsand reviews


5. ReconciltaionOfficer performs

manualreconciliation for

un-reconciledtransactions

6. Reconciliation

Officer createstransactions for un

reconciled items

7. ReconciliationOfficer runs account

analysis reports to

follow up on unreconciled items

8. ReconciliationOfficer agrees

account analysisreport in cash

management togeneral ledger

9. ReconciliationOfficer runs finalaccount analysis

report in cashmanagement andgeneral ledger for

review

10. FAM reviews andsigns-off bank

reconciliation reportin cash management

module

End

iliation process flow chart

Reconciliation

Officer receives bankstatement and loads

onto oracle

ReconciliationOfficer runs auto

reconciliationprogramme togenerate a auto


Reconciliationreports

to identify un-reconciled

transactions

econciliationOfficer printsand reviews


ReconciltaionOfficer performs

reconciliation for

reconciledtransactions

Reconciliation

Officer createstransactions for un-

reconciled items

ReconciliationOfficer runs account

analysis reports to

follow up on un-reconciled items

ReconciliationOfficer agrees

account analysisreport in cash

management togeneral ledger

ReconciliationOfficer runs finalaccount analysis

report in cashmanagement andgeneral ledger for

FAM reviews andoff bank

reconciliation reportin cash management

A

182



Bank statement reconciliation activity detail

ActID



Output


1. Load bankstatement ontooracle

Reconciliation

Officer

Reconciliation Officer receives electronic

bank statement and automatically loads or

manually enters bank statement into oracle

Auto

2. Run autoreconciliationprogramme

Reconciliation

Officer

Reconciliation Officer runs auto

reconciliation programme in oracle cash

management module to generate an auto

reconciliation execution report

Auto Auto

reconciliation

execution

report

3. Review autoreconciliationexecution report

Reconciliation

Officer

Reconciliation Officer prints and reviews auto

reconciliation execution report

Manual

4. Run additionalreports

Reconciliation

Officer

Reconciliation Officer runs bank statement

details report and transactions available for

reconciliation reports to identify un-

reconciled transactions

Auto Bank

statement

details report

Transactions

available for

reconciliation

reports

5. Perform manualreconciliation

Reconciliation

Officer

Reconciliation Officer performs manual

reconciliation for un-reconciled transactions

or for transactions with errors

Manual

6. Createtransactions for

Reconciliation Reconciliation Officer creates transactions for

un-reconciled items. Some transaction are

Auto

START



ActID



Output


un-reconcileditems

Officer for:

Account receivables receipts for directtransfers

Wire transfer payments by the Authority Miscellaneous transactions such as bank

charges, interest income, investmentincome, etc.

7. Run accountanalysis reports

Reconciliation

Officer

Reconciliation Officer runs account analysisreports in the following as a follow up of un-reconciled items :

account receivables module account payables module cash management module general ledger

Auto Account

analysis

report

8. Agree accountanalysis reports

Reconciliation

Officer

Reconciliation Officer agrees account analysis

report in cash management to general ledger

Auto

9. Run final accountanalysis reports

Reconciliation

Officer

Reconciliation Officer runs final account

analysis reports in cash management and

general ledger for Financial Accounting and

Treasury Manager reviews

Auto Bank

reconciliation

report

10. Review and sign-off reconciliationreport

Financial

Accounting

Manager

Financial Accounting Manager reviews and

signs-off bank reconciliation report in cash

management module

Auto

END

CRP



Bank statement reconciliation key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Number and value of long outstanding

items

XXX Monthly Financial Accounting

Manager


2. % of accounts reconciled at month end 100% Monthly Financial Accounting

Manager


3. % of reconciliations approved by

Financial Accounting Manager at

month end

100% Monthly Financial Accounting

Manager


Bank statement reconciliation standard reports


Frequency

Reviewer

1. Bank account

reconciliation

status report


information on the status of

bank account reconciliations

for each bank account as at a

specified period

To provide information

on the status of bank

reconciliations for

purposes of follow up and

remediation

ERP Monthly Financial Accounting

Manager



Bank statement reconciliation process risk and control matrix (RCM)

Key risks

1 Errors in bank accounts/statements may not be noted, corrected and resolved resulting in financial loss to the company.

2 The risk of fraud is not mitigated if bank statements are not properly reviewed.

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

ory

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Asse

rti

on

Co

ntr

ols

/

Po

ints

of

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pro

ac

h

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1Bank statement

reconciliation

To ensure errors in

bank statements

are identified and

correctedF C, A, V BS/ IS C, A, E


automatically loads or

manually enters bank

statement into oracle to

run auto reconciliation

programme in oracle

cash management

module.

Reports are run to

identify un-reconciled

transactions. Un-

reconciled transactions

are manually reconciled

R, M D D N/AReconciliation

Officer

2Bank statement

reconciliation

To ensure bank

statement

reconciliations are

reviewed

F V N/A C, A, E

Reconciliations are

reviewed and signed off

by Financial Accounting

Manager in cash

management module M P D, M N/AFinancial Accounting

Manager



25. CASH FORECASTING

Process description

Overview

This process describes activities involved in forecasting cash

purchase requisitions, purchase orders and sales

Process Owner

Treasury Manager

Process Objectives

To identify potential short falls i

To put in place measures to ensure availability of adequate cash resources to meet business needs

Process Scope

This applies to daily cash inflows and outflows

orders and sales

Timeframe

Daily


Activity / Resources Treasury Officer

Initiate and run cashforecast reportReview cash forecastreport

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

CASH FORECASTING

ocess describes activities involved in forecasting cash inflows and outflows

purchase requisitions, purchase orders and sales in the Authority.

identify potential short falls in cash balances


daily cash inflows and outflows from suppliers, customers, purchase requisitions, purchase


Treasury Officer Treasury Manager

IN

RV

187

s and outflows from suppliers, customers,


from suppliers, customers, purchase requisitions, purchase



Cash forecasting process flow c

1. Treasury Officerdefines forecast in

cash managementmodule

2. Treasury Officeridentifies sources of

cash inflows andoutflows

3. Treasury Officer

determines forecastperiod in cash

forecastingapplication

4. Treasury Officerruns cash forecast in

cash forecastapplication

5. Treasury Officer

runs and prints cashforecast report for

review

6. TM reviews cashforecast report andforwards to DF for

information andplanning purposed

End

process flow chart

188



Cash forecasting activity detail

ActID



1. Define forecast Treasury Officer Treasury Officer defines cash flow

forecast for an agreed period in

cash management module

Auto

2. Identify sourcesof cash flow

Treasury Officer Treasury Officer identifies sources

of cash inflows and outflows

Source could be suppliers,

customers, purchase requisitions,

purchase orders and sales

Auto

3. Determine periodof forecast

Treasury Officer Treasury Officer determines period

of forecast by defining columns in

cash forecasting application.

(Period could be daily, or aligned

to general ledger period; which is

monthly)

Auto

4. Run cash forecast Treasury Officer Treasury Officer runs cash forecast

in cash forecast application

Auto

5. Run cash forecastreport

Treasury Officer Treasury Officer runs and prints

cash forecast report for review

Auto Cash forecast

report

6. Review cashforecast report

Treasury Manager Treasury Manager reviews cash

forecast report and forwards to

Director Finance for information

Manual

START

CRP



ActID



and planning purposes

Cash forecasting key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Ratio of actual to planned cash

flow

Monthly Director Finance Treasury Manager

2. % of late submission of cash

forecast report

Zero Monthly Director Finance Treasury Manager

Cash forecasting standard reports


Frequency

Reviewer

1. Cash forecast

report

This report shows cash inflow or

outflow projections over a

specified period

To inform

management planning

and decision making

ERP Daily or Monthly by

general ledger

period

Treasury Manager

END



Cash forecasting process risk and control matrix (RCM)

Key risks

1 In accurate cash forecasting leading to excess or shortage of cash holdings

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Asse

rti

on

Co

ntr

ols

/

Po

ints

of

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

es

s

Pr

oc

es

sT

oo

ls

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1 Cash Forecast

To assure

available

resources to

meet

obligations as

they fall dueF N/A N/A N/A

Cash forecast report

should be run by a

Treasury Officer and

reviewed by

Treasury manager M P D N/ATreasury

Manager



26. PETTY CASH


This process describes the activities performed during the

petty cash for purposes specified in the Authority’s

Process Owner

Petty Cash Officer

Process Objectives

To ensure effective and efficient use of petty cash funds

To ensure petty cash advancement and replenishment requests are appropriately approved and

authorised

To ensure timely replenishment of the petty cash float

Process Scope

This applies to petty cash advances, disbursements and replenishments

Timeframe

Monthly



Review and approve request

Disburse, reconcile and replenish pettycashReview replenishment request

Approve replenishment request

Legend

Input

Processing

Review

IN

PR

RV

This process describes the activities performed during the advancement, disbursement and replenishment of

purposes specified in the Authority’s Policy on petty cash management.

effective and efficient use of petty cash funds


To ensure timely replenishment of the petty cash float

petty cash advances, disbursements and replenishments


Line Manager Petty CashOfficer

DisbursementManager

RVAP

ncile and replenish pettyPR

192

advancement, disbursement and replenishment of

Policy on petty cash management.


DisbursementManager

DirectorFinance

RV

AP



Approval

Informed

AP

IF

193



Petty cash process flow chart



Petty cash advance activity detail

ActID



Output


1. Identify need for pettycash

Staff Staff identifies need for pettycash

Manual

2. Complete and submitPetty CashRequisition Form

Staff Staff completes and submitsPetty Cash Requisition Form toLine Manager

Manual Completed Petty Cash

Requisition Form

3. Review and approvepetty cash requisition

Line Manager Line Manager reviews andapproves petty cash requisitionby signing Petty CashRequisition Form in accordancewith Chart of Authority

Manual Approved Petty Cash

Requisition Form

4. Forward petty cashrequest for processing

Line Manager Line Manager forwards pettycash request to Petty CashOfficer in for disbursement

Manual

START

END

CRP



Petty cash disbursement activity detail

ActID



Output


1. Receive approvedpetty cash request

Petty Cash Officer Petty Cash Officer receives approved

petty cash request and ensures the

appropriate approvals have been

obtained

Manual Approved petty

cash request form

2. Disburse cash Petty Cash Officer Petty Cash Officer disburses cash to

Staff for approved amount and

obtains Staff’s signature on receipt

voucher

Manual Signed petty cash

voucher

3. Return unspentcash

Staff Staff returns unspent cash andexpense receipts to Petty CashOfficer

Manual Expense receipts

4. File receipts Petty Cash Officer Petty Cash Officer files supporting

receipts and petty cash voucher

Manual

5. Perform daily pettycash count andreconciliation

Petty Cash Officer Petty Cash Officer performs daily

petty cash count and reconciliation

Manual Daily reconciliation

report

6. Update petty cashdatabase

Petty Cash Officer Petty Cash Officer updates petty cash

database with cash disbursed and

supporting documentation details

Manual Updated petty cash

database

START

END



Petty cash replenishment activity detail

ActID



Output


1. Perform petty cashreconciliation andprepare petty cashreplenishmentrequest

Petty Cash

Officer

Petty Cash Officer performs petty cash

reconciliation and prepares petty cash

replenishment request when petty cash

float is at a limit

Float is GHC 10,000.

Manual Petty cash

reconciliation

report

Petty cash

replenishment

request


Disbursement

Manager

Disbursement Manager reviews

reconciliation report and recommends

replenishment request for approval

Manual

3. Approve for payment Director Finance Director Finance approves replenishment

request for payment and notifies Payment

Officer

Manual Approved

replenishment

request

4. Initiate paymentprocess

Payment Officer Payment Officer initiates payment

(cheque) process

Refer to payment process

Manual / Auto

5. Cash cheque andreplenish petty cashaccount

Petty Cash

Officer

Petty Cash Officer cashes cheque amount

from the bank and replenishes petty cash

database with replenishment amount

Manual Bank receipt

voucher

START

END

CRP



Petty cash key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Petty cash reconciled 100% Monthly Disbursement

Manager

Petty Cash Officer

Petty cash standard reports


Frequency

Reviewer

1. Reconciliation

report

This report provides details

of petty reconciliations

To highlight potential

transactions for

investigation and

further action

ERP Monthly Disbursement Manager



Petty cash process risk and control matrix (RCM)

Key risks

1 Unauthorised petty cash payments

2 Petty cash may not be accounted for

3 Uncontrolled petty cash activities

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

eC

ate

go

ry

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

tA

cc

ou

nt/

Dis

clo

sur

e

Fin

an

cia

lS

tate

me

nt

Ass

er

tio

n

Co

ntr

ols

/P

oin

tso

fF

oc

us

Ap

pli

ca

ble

Or

ac

le

Bu

sin

es

sP

ro

ce

ss

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

eR

efe

re

nc

e

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

1Petty Cash

Advance

To ensure petty

cash requests are

appropriately

authorised

F V N/A N/A

A standard petty cash advance

requisition form is completed

by staff. Petty cash requisitions

are reviewed by a Line

Manager.

Line Managers approve and

sign petty cash request up to

GHC 100. Directors sign

requests above GHC 100

M P E N/A Line Manager

2Petty Cash

Disbursement

To ensure

disbursed petty

cash to staff the

approved amount

F C, A, V IS/ BS C, O, A,

Petty Cash Officer ensures

appropriate approvals have

been obtained and disburses

approved amount to staff.

Staff signs a petty cash receipt

voucher for cash received. Mn D E N/APetty Cash

Officer



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

As

se

rti

on

Co

ntr

ols

/P

oin

ts

of

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

3Petty Cash

Disbursement

To ensure petty cash

properly accounted forF C, A, V IS/ BS C, O, A,

Petty Cash Officer performs

daily petty cash count and

reconciliation, and updates

petty cash database with cash

disbursed and supporting

documentation details (for

cash spent)

R P E N/APetty Cash

Officer

4Petty Cash

Replenishment

To ensure petty cash

replenishment is

appropriately approved

O V N/A N/A

Petty Cash Officer submit a

reconciliation report with

replenishment request to

Disbursement Manager for

review. Disbursement Manager

reviews reconciliation reports

against replenishment request

and recommends request for

approval. Approval for

replenishment is given by

Director Finance

M, R P E N/A

Petty Cash

Officer



27. MASTER DATA MANAGEMENT

Process description

Overview

The purpose of the process is to describe steps involved in changing standing data.

Process Owner

Systems Administrator

Process Objectives

To ensure changes to standing data are appropriately authorised and approved

To ensure changes to standing data are adequately communicated to Users

Process Scope

This process applies to all standing data in the Authority.

Timeframe

N/A



Review and approve requestExecute change, update change log, generateaudit trail

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

MASTER DATA MANAGEMENT


to standing data are appropriately authorised and approved


This process applies to all standing data in the Authority.


DirectorFinance

SystemsAdministrator

AP RV, update change log, generate

IN

201


to standing data are appropriately authorised and approved


AdministratorUser

IF



Master data management proce

1. Requestor

raises masterdata changerequest andforwards to

Systems Admin

2a. Systems Adminlogs request andassesses whether

change iswarranted and its

warranted

2b

recommendsrequest to DF

for approval

3. DF approvesrequest andforwards to

Systems Admin

4.

communicatesplanned change

and impact to

5.Adm

changes andgenerates an

audit trail withdetails ofchanges

Master data management process flow chart

Requestor

raises masterdata changerequest andforwards to

Systems Admin.

Systems Adminlogs request andassesses whether

change iswarranted and its

impact

Change

warranted?

2c. Request

is rejected

b. SystemsAdmin

recommendsrequest to DF

for approval

DF approvesrequest andforwards to

Systems Admin

. SystemsAdmin

communicatesplanned change

and impact tousers

. SystemsAdm in executes

changes andgenerates an

audit trail withdetails ofchanges

End

Yes

No

A

202



Master data management activity detail

ActID

ProcessFlow

Responsibility Tasks Involved


Output


1. Raise masterdata changerequest

Requestor Requestor identifies need and raises a master

data change request by completing a Master

Data Change Request Form and forwards to

Systems Administrator

Manual Master Data

Change

Request Form

2. Assess impactof change

Systems

Administrator

Systems Administrator logs request, assesses

whether change is warranted and the impact

on other Users, and provides

recommendation to Director Finance

(Recommendation could be for approval or

denial to change standing data)

Manual Impact

Assessment

Report

3. Approverequest

Director Finance Director Finance approves request and

forwards to System Administrator notifying

Requestor of approval by email

Manual

4. Communicatechanges toimpactedUsers

Systems

Administrator

Systems Administrator communicates

planned changes and impact to impacted

Users by email

Manual

5. Executechanges

Systems

Administrator

Systems Administrator creates back up of

standing data (if required), executes changes,

updates a Change Log and generates an audit

Manual Updated

Change Log

START

CRP



ActID

ProcessFlow

Responsibility Tasks Involved


Output


trail with details of changes made

Master data management key performance measuresPerformance Measure Standard Frequency Reviewer Reviewee/

process owner1. Number of complete change requests

that are not supported with sufficient

information

Zero Per occurrence Financial AccountingManager

SystemsAdministrator

Master data management standard reports


Frequency

Reviewer

1. Change request

report


information on the

number of change

requests to standing data

over a specific period

To provide a summary

of change requests over

a specific period

Change request log

book

Quarterly Director Finance

2. Exception report This report provides an

audit trail of changes to

standing data over a

specific period

To provide information

on changes made to

standing data over a

specific period

ERP Per occurrence Director Finance

END



Master data management process risk and control matrix (RCM)Key Risks:

1 Incomplete and/or inaccurate changes to standing data increases risk of inaccurate accounting

2 Invalid or unauthorised changes may be made to standing data

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

eC

ate

go

ry

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e(C

,A,V

,R)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

los

ur

e

Fin

an

cia

lS

tate

me

nt

As

se

rti

on

Co

ntr

ols

/P

oin

tso

fF

oc

us

Ap

pli

ca

ble

Or

ac

leB

us

ine

ss

Pr

oc

es

sT

oo

lsT

co

de

(s)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y(E

,D,W

,M,Q

,A)

Po

lic

y/

Pr

oc

ed

ur

eR

efe

re

nc

e

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

1Master Data

Management

To ensure changes

to standing data

are completely

and accurately

inputted.

F C, A, V, R N/A N/A

Requested changes to

standing data are reviewed

and approved by

management for validity,

accuracy and completeness

and proper authorisation

M, R P E N/ADirector,

Fiannce

2Master Data

Management

To ensure access

to effect changes

to standing data is

appropriately

limited.

F R N/A N/A

Access standing data is

restricted to authorised

personnel.

Access levels are pre-defined

based on clear job

responsibility

User access is independently

review by management on a

periodic basis

M, R P E N/ADirector,

Fiannce

3Master Data

Management

Standing data is

accurate and up-

to-date.

F C, R N/A N/A

Standing data is periodically

analysed for old or duplicate

records.M, R D E N/A

Director,

Fiannce



PERIOD CLOSING

28. MONTH END PERIOD CLOSING


This process describes month-end closing activities.

Process Owner


Process Objectives

To ensure all transactions for the period have been processed

To ensure sub-ledger to general ledger reconciliations are perfor

To ensure timely preparation and completion of monthly financial statements

Process Scope

This process applies to all modules.

Timeframe

Monthly


Identify and post outstanding transactions

Reconcile sub-ledger to general ledger

Review and approve reconciliation report

Assess month-end closing performanceLegend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

MONTH END PERIOD CLOSING

end closing activities.

for the period have been processed and posted to the general ledger

ledger to general ledger reconciliations are performed


Segregation of duties matrixManagers/Officers inCharge

ScheduleSupervisor

Identify and post outstanding transactions IN

ledger to general ledger INReview and approve reconciliation report

end closing performance

206

to the general ledger


SectionalManager

DirectorFinance

RVAP

RV



Month end period closing process flow chart

1. FAM distributesmonth end closing

schedule with

responsibilities to allERP users

2. FAM promptsManagers and OICs

of month-end

activities 5 days tomonth end

3. Managers andOICs notify Schedule

supervisors and

Officers to initiateperiod end activities

4. Managers andOICs ensure all

outstandingtrasactions are

validated, accountedand posted

5. ScheduleSupervisors reconcilesub-ledger postings

to general ledgerpostings to generate

a reconciliationreport

6. Schedule

Supervisors forwardreconciliation reportsto Sectional Manager

for review andapproval

7. Sectional Managerreviews and approves

reconciliation reportthen forwards to

FAM for validation

8. FAM validates

reconciliation reportagainst GL balances

then closes sub-ledgers

9. FAM runs finalaccounts

10. FAM withheads of

operating unitsanalyse financial

information

11. DF assessesachievement of

month-endclosing targets

End

A

process flow chart

207



Month end period closing activity detail

ActID



Output


1. Prepare and distributemonth-end closingschedule

Financial

Accounting

Manager

Financial Accounting Manager prepares

and distributes month end closing

schedule with identified roles and

responsibilities to all ERP users across

the Authority at the beginning of the

year

Auto Month-end

closing

schedule

2. Prompt all Managersand Officers in Charge

Financial

Accounting

Manager

Financial Accounting Manager prompts

all Managers and Officers in Charge 5

days to month end of month-end closing

activities

Auto

3. Notify schedule Officersto initiate closingactivities

Managers and

Officers in Charge

Managers and Officers in Charge notify

Schedule Supervisors and Officers to

initiate period-end activities

Auto

4. Identify and postoutstandingtransactions

Managers and

Officers in Charge

Managers and Officers in Charge ensure

all outstanding transactions are

validated, accounted and posted

Auto

5. Reconcile sub-ledgerpostings to generalledger

Schedule

Supervisors and

Officers

Schedule Supervisors and Officers

reconcile sub-ledger postings to general

ledger and forward to Sectional Manager

for review and approval

Auto Reconciliation

report

6. Review and approvereconciliation report

Sectional

Manager

Sectional Manager reviews and approves

reconciliation report and recommends to

Auto

START

CRP



ActID



Output


Financial Accounting Manager for

validation

7. Validate reconciliationreport

Financial

Accounting

Manager

Financial Accounting Manager validates

reconciliation report against general

ledger balances

Auto Trial balances

8. Close sub-ledgers Financial

Accounting

Manager

Financial Accounting Manager closes

sub-ledgers

Auto

9. Run final accounts Financial

Accounting

Manager

Financial Accounting Manager runs final

accounts

Auto

10. Analyse financialinformation

Financial

Accounting

Manager

Financial Accounting Manager together

with heads of operating units analyse

financial information to resolve any

unusual variances

Manual

11. Assess month-endclosing procedure

Director Finance Director Finance leads a meeting to

assess the achievement of month-end

closing targets.

Lessons learnt from this meeting is

shared with the Finance Team to

enhance month-end closing procedures

Manual

CRP

END



Month-end period closing key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Number of days to report month-end

financial report

5 days Monthly Deputy Chief

Executive, Finance

Director Finance

2. % of reports delivered within x days

after period end

Monthly Director Finance Financial Accounting Manager

3. % of reconciled schedules submitted at

month end

100% Monthly Financial

Accounting Manager

Schedule Supervisors and Officers

4. % of reconciliations validated by

Financial Accounting Manager at

month end

100% Monthly Director Finance Financial Accounting Manager

5. % of closing activities completed per

schedule

100% Monthly Financial

Accounting Manager

Managers and Officers in Charge

6.

Month-end period closing standard reports


Frequency

Reviewer

1. Open-close

reports

This is an exception

based trend report

To identify potential material

misstatements in transactions

To identify needed

adjustments

ERP Monthly Financial Accounting

Manager

2. Financial

statements

This comprises income

statement, statement of

financial position, cash

To provide management

financial information to aid





Frequency

Reviewer

flow statements decision making



Month-end period closing process risk and control matrix (RCM)

Key risks:

1 Reporting units may not submit reports on a timely basis

2 Month-end closing targets may not be achieved

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

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Co

ntr

ol

Ob

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tiv

e

Ca

teg

ory

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Asse

rti

on

Co

ntr

ols

/

Po

ints

of

Fo

cu

s

Ap

pli

ca

ble

Ora

cle

Bu

sin

ess

Pro

ce

ss

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pro

ac

h

(P,D

)

Fre

qu

en

cy

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pro

ce

du

re

Re

fere

nc

e

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1Month-end

period close

To ensure that

all individual

reporting units

close and

submit their

financial

reporting at the

period end on a

timely basis

F C IS/BS C


prepares and distributes a

month end closing schedule.

This includes tasks such as:

activities to be performed,

responsible contact person for

each activity and key submission

dates

At each reporting unit, a

standardised procedure is in

place to ensure appropriate

tasks are performed to analyse,

reconcile and review all key

financial accounts on a timely

basis. This procedure is formally

documented and should include

key tasks, timetables and

contacts/ responsible persons.

R, M P M N/A

Financial

Accounting

Manager



No

.

Su

bp

ro

cess

Co

ntr

ol

Ob

jecti

ve

Co

ntr

ol

Ob

jecti

ve

Ca

teg

ory

(C,F

,O)

Co

ntr

ol

Ob

jecti

ve

Typ

e(C

,A,V

,R)

Fin

an

cia

l

Sta

tem

en

t

Acco

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Ass

erti

on

Co

ntr

ols

/P

oin

ts

of

Fo

cu

s

Ap

pli

ca

ble

Ora

cle

Bu

sin

ess

Pro

cess

To

ols

Tco

de(s

)

Co

ntr

ol

Typ

e

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pro

ach

(P,D

)

Freq

uen

cy

(E,D

,W,M

,Q,A

)

Po

licy

/

Pro

ced

ure

Re

feren

ce

Co

ntr

ol

Ob

jecti

ve

Ow

ner

2Month-end

period close

To ensure sub-

ledgers are

closed after all

necessary

transaction

processing for

the period has

been posted

F C IS/BS C,CO

Managers and Officers in Charge

ensure all outstanding

transactions are validated,

accounted and posted.

Supervisors reconcile sub ledger

postings to general ledger.

Reconciliation of sub ledger and

general ledger are reviewed and

approved by Sectional

Managers, then validated by


R, M P M

Financial

Accounting

Manager

3Month-end

period close

To ensure final

accounts are run

using same

financial

information

F, C C,A, V IS/BS C, A, P&D

Final accounts are run and

analysed by heads of operating

units to resolve identified

variances

R, M P M N/A

Financial

Accounting

Manager

4Month-end

period close

To ensure the

achievement of

month-end

closing targets

and

communication

of issues

O N/A N/A N/A

Director Finance critically assess

the achievement of month-end

closing targets; and review the

results and financial position on

a timely basis.

Any significant matters should

be communicated to and

analysed by heads of operating

R, M P M N/A Director Finance

5Month-end

period close

To ensure

controls in place

to trace users

responsible for

posting of

transactions.

F C N/A N/A

All accounting systems provide a

detailed audit trail report of

transactions entered into the

system, including time and date

of change and user id.

R, M P M N/A

Financial

Accounting

Manager



29. YEAR END PERIOD CLOSING


This process describes year-end closing activities.

Process Owner


Process Objectives

To ensure timely preparation and completion

To ensure sub-ledger to general ledger reconciliations are performed

Process Scope

This process applies to all modules.

Timeframe

Monthly


Prepare schedules for audit

Validate schedules

Review draft audit financialstatements

Perform audit adjustments and runfinal accountsReview audit adjustmentsApprove final audited accounts

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

YEAR END PERIOD CLOSING

end closing activities.

and completion of financial statements for audit

ledger to general ledger reconciliations are performed

Segregation of duties matrixManagers/ Officersin Charge


DirectorFinance

IN

RV

RV

RV

214

for audit

Director DeputyChiefExecutive,Finance

Board ofDirectors

RVAP



215




1. FAM with external

auditors prepare anddistribute year-endaudit schedule withidentified timelinesand responsibilities

3. DF distributes yearend audit schedule to

Management

2.Managementdiscusses andfinalises year-

end audit

schedule

4. FAM promptsManagement15 days

to year end to

prepare schedules foraudit

5. Managers andOICs prepares

schedules for audit

6. FAM validatesschedules, runs draft

audit financialstatements and

forwards for review

7. DF reviews draftaudit financialstatements and

forwards to externalauditors

8. External

Auditors performexternal audit of

financialstatements

9. DF chairs ameeting with DCE, Fand external auditors

to discuss neededaudit issues and

adjustments

10. FAM performsaudit adjustmentsbased on outcome

of meeting andforwards for

review

12. FAM reruns andissues final draft

audited accounts toexternal auditors,notifying DCE,F

11. DCE, F

reviewsadjustmentsand gives go-ahead to runfinal accounts


13. DCE, Fdiscusses finaldraft auditedaccounts with

Executive Team

14. DCE,F chairs ameeting with Board

sub-financecommittee and

external auditors todiscuss final draftaudited accounts

15. Board sub-finance committee

recommends finaldraft audited

account to BoDfor approval

17. BoD

approves andsigns final

auditedaccounts

End

A

16. Chairman, Sub-Finance Committeepresents final draft

audited account toBoard of Directors

216



Year-end period closing activity detail

ActID



Output


1. Prepare anddistribute draft year-end audit schedule

Financial

Accounting

Manager

Financial Accounting Manager prepares

and distributes year-end audit schedule

with identified roles, responsibilities and

timelines to all Managers in the

Authority

Auto Year-end audit

schedule

2. Discuss and finaliseaudit schedule

Finance

Management

Management discuss and finalise year-

end audit schedule

Manual

3. Distribute final year-end audit schedule

Director

Finance

Director Finance distributes final year-

end audit schedule to Management

Auto

4. Prompt all Managersand Officers inCharge

Financial

Accounting

Manager

Financial Accounting Manager prompts

all Managers and Officers in Charge to

prepare their schedules for audit ( 15

days to December month-end)

Auto

5. Prepare schedulesfor audit

Managers and

Officers in

Charge

Managers and Officers in Charge prepare

schedules for audit

Auto

6. Validate schedules Financial

Accounting

Manager

Financial Accounting Manager validates

schedules, prepares draft audit financial

statements and forwards for review to

Director Finance

Auto Draft audit

financial

statements

START



ActID



Output


7. Review draft auditfinancial statements

Director

Finance

Director Finance reviews draft audit

financial statements and forwards to

external auditors for audit

Auto

8. Perform externalaudit

External

Auditors

External Auditors perform external audit

of financial statements

Manual

9. Discuss auditadjustments

Director

Finance

Director Finance chairs a meeting with

Deputy Chief Executive, Finance and

external auditors to discuss material

audit issues arising and needed

adjustments

Manual

10. Pass auditadjustments

Financial

Accounting

Manager

Financial Accounting Manager passes

audit adjustments where necessary

(based on outcome of meeting) and

forwards to Deputy Chief Executive,

Finance for review

Manual

11. Review auditadjustments

Deputy Chief

Executive,

Finance

Deputy Chief Executive, Finance reviews

adjustments and directs Financial

Accounting Manager to run final draft

audited accounts

Manual

12. Run and issue finaldraft auditedaccounts

Financial

Accounting

Manager

Financial Accounting Manager runs final

draft audited account after adjustments

have been made and issues to External

Auditors

Auto

13. Discuss withExecutives

Deputy Chief

Executive,


discusses final draft audited account with

Manual



ActID



Output


Finance Executive team

14. Discuss with Boardsub-financecommittee

Deputy Chief

Executive,

Finance

Deputy Chief Executive, Finance chairs a

discussion of final draft audited account

with Board sub-finance committee and

external auditors

Manual

15. Recommend draftfinal audited accountto Board of Directors

Board sub-

finance

committee

Board sub-finance committee

recommends final draft audited account

to Board of Directors for approval

Manual

16. Present draft finalaudited account toBoard

Chairman, Sub-

Finance

Committee

Chairman, Sub-Finance Committee

presents final draft audited account to

Board of Directors in the presence of

external auditors

Manual

17. Approve draft finalaudited account

Board of

Directors

Board of Directors approve and sign final

draft audited account

Manual

END

CRP



Year-end period closing key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Timely submission of trial balance for

audit

31 January Yearly Director Finance Financial Accounting Manager

2. Timely preparation of audited financial

statement

31 March Yearly Deputy Chief

Executive, Finance

Director Finance

3. Timely submission of final audited

accounts to stakeholders

30 June Yearly Director Finance Deputy Chief Executive, Finance

4. % of audit queries resolved 100% Yearly Director Finance Financial Accounting Manager



Year end period closing process risk and control matrix (RCM)

Key risks:

1 The periodic submissions from reporting units are not complete and accurate

2 The underlying systems from which the financial records are derived may not include all transactions made in the period

3 Year-end closing targets may not be achieved

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

eC

ate

go

ry

(C,F

,O)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e(C

,A,V

,R)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

los

ur

e

Fin

an

cia

lS

tate

me

nt

As

se

rti

on

Co

ntr

ols

/P

oin

tso

fF

oc

us

Ap

pli

ca

ble

Or

ac

leB

us

ine

ss

Pr

oc

es

sT

oo

lsT

co

de

(s)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y(E

,D,W

,M,Q

,A)

Po

lic

y/

Pr

oc

ed

ur

eR

efe

re

nc

e

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

1

Year- end

period

close

To ensure that all

individual

reporting units

close and submit

their financial

reporting at the

period end on a

timely basis

F C IS/BS C

Financial Accounting Manager with

external auditors prepare year-end audit

schedule. This includes tasks such as:

activities to be performed, responsible

contact person for each activity and key

submission dates.

A finalised audit schedule is

communicated to Management and

Officers in Charge. At each reporting

unit, a standardised procedure is in

place to ensure appropriate tasks are

performed to analyse, reconcile and

review all key financial accounts on a

timely basis. This procedure is formally

documented and includes key tasks,

timetables and contacts/ responsible

persons.

R, M P M N/A

Financial

Accounting

Manager



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Ass

er

tio

n

Co

ntr

ols

/P

oin

ts

of

Fo

cu

s

Ap

pli

ca

ble

Or

ac

leB

usin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

2

Year-

end

period

close

To ensure

financial

statements are

run using same

financial

information

F, C C,A, V IS/BS C, A, P&D


validates schedules and

prepares draft audit financial

statements which are reviewed

by Director Finance

R, M P M N/A

Financial

Accounting

Manager

3

Year-

end

period

close

Controls to

ensure adequate

approvals are

obtained for

audit

adjustments and

segregation of

duties

F C,A,V IS/BS C, A, P&D

Director Finance chairs a

meeting with Deputy Chief

Executive, Finance and external

auditors to discuss material

audit issues arising and needed

adjustments. Financial

Accounting Manager performs

adjustments based on outcome

of meeting.

Adjustments are reviewed by

Deputy chief Executive,

Finance, to ensure accuracy.

Final audited accounts are run

after adjustments for

discussions with Executive

team. Board of Directors

approve and sign final audited

accounts

R, M P M N/A

Financial

Accounting

Manager



25. SERVICE DELIVERY


This process defines activities involved in setting expectations between the Finance Function and its

customers, measuring and tracking the levels of service quality and performance.

Process Owner


Process Objectives

To ensure proper elements and commitments are in place to provide consistent service support anddelivery to customers by the Finance Funct

To provide clear reference to service ownership, accountability, roles and/or responsibilities To present a clear, concise and measurable description of service provision to the customer To match perceptions of expected service provision with actual se

Process Scope

This process applies to all Sections and Departments of the Authority that depend on the Finance Function for

service.

Timeframe

Aligned to periodic review agreed between service provider and customer (at least bi


Define and negotiate service level agreement

Approve service level agreement

Review service level agreement for continuousimprovement

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF

SERVICE DELIVERY


racking the levels of service quality and performance.

To ensure proper elements and commitments are in place to provide consistent service support anddelivery to customers by the Finance FunctionTo provide clear reference to service ownership, accountability, roles and/or responsibilitiesTo present a clear, concise and measurable description of service provision to the customerTo match perceptions of expected service provision with actual service support and delivery.


Aligned to periodic review agreed between service provider and customer (at least bi

Segregation of duties matrixFinancialAccountingManager

CustomerDepartment

Define and negotiate service level agreement INRV

nt for continuous

223


To ensure proper elements and commitments are in place to provide consistent service support and

To provide clear reference to service ownership, accountability, roles and/or responsibilitiesTo present a clear, concise and measurable description of service provision to the customer

rvice support and delivery.


Aligned to periodic review agreed between service provider and customer (at least bi-yearly)

CustomerDepartment

DirectorFinance

RV

AP AP

RV RV




1. FAMclassifies

services intoservice levelcategories

2. FAM &customer rep

establishcustomer

expectations andparameters, forquality service.

3. FAMdocuments adraft service

levelagreement

4. FAM negotiates

draft SLA withCustomer Rep

and forwards forreview

5. DF and Headof Customer’s

Departmentreview and

approve SLA

6. FAM and Head ofCustomer’s

Department monitorperformance against

key performancemeasures

7. Head of CustomerDepartment together

with D F measureactual performance

against standardsagreed

8. FAM

implementscorrective

action plan tomanage

expectations

End


expectations and

negotiates

and forwards for

and Head

and Head of

Department monitorperformance against

key performance

Head of CustomerDepartment together

measureactual performance

against standards

A

224



Service delivery process activity detail

ActID



1. Identify service

type


Financial Accounting Manager classifiesservices into categories that can be coveredwith specific service level agreements

Manual Itemisedservices subcategories

2. Establish servicelevelexpectations

Financial AccountingManager /CustomerRepresentative

Financial Accounting Manager togetherwith customer representative establishescustomer expectations and establishes allrelevant parameters, key performancemeasures and specifications for qualityservice.

Manual Documentedkeyparameters

3. Documentservice levelagreement


Financial Accounting Manager documents adraft service level agreement

Manual Draft servicelevelagreement

4. Negotiateservice levelagreement


Financial Accounting Manager negotiatesdraft service level agreement with CustomerRepresentative and forwards to DirectorFinance and Head of Customer’sdepartment for review

Manual Negotiateddraft servicelevelagreements

5. Review andapprove servicelevel agreement

Director Finance andHead of Customer’sDepartment

Director Finance and Head of Customer’sDepartment review and approve servicelevel agreement

Manual Approvedservice levelagreement

6. Monitorperformance

Financial AccountingManager /Head ofCustomer’sDepartment

Financial Accounting Manager and Head ofCustomer’s Department monitorperformance against parameters, keyperformance measures over agreed period.

Manual EvaluationReport

7. Review Head of CustomerDepartment/Director

Head of Customer Department togetherwith Director Finance measure actual

Manual Servicedelivery

START

CRP



ActID



performance Finance performance delivered against expectationstandards agreed.

evaluationreport

8. Implementcorrective actionplan


Financial Accounting Manager implementscorrective action plan that may includereview of key performance measures tomanage expectations

Manual

Service delivery key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. % time frame response achievement on service issues

classified as high , medium, low priority

High : 8 Hours

Medium: 48 Hours

Low: 5 days

2. Customer requirements- in -support satisfaction level:

% payment for all support costs at the agreedinterval.

% availability of customer representative(s) whenresolving a service related incident or requests

99%

3. % Frequency of notification to customer for allscheduled service delivery (say maintenance)

% changes to services communicated and

100%

END



documented to all stakeholders

4. Overall customer satisfaction % 95%

Service delivery standard reports

SN Report Name Brief Description Purpose Source Report FrequencyReviewer

1. Service delivery

evaluation report

This report compares

actual service delivery

with standards and

expectations set forth in

the service level

agreement

To have an objective assessment

of service delivery and provide

grounds for improvement and

customer satisfaction

Manual At least Bi -Yearly Director Finance



Service delivery process risk and control matrix (RCM)

Key Risks:

1 Inadequate provision of service to internal stakeholders leading to risk of non-accomplishment of finctioal and corporate goals

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

losu

re

Fin

an

cia

lS

tate

me

nt

Asse

rti

on

Co

ntr

ols

/P

oin

tso

f

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

es

sP

ro

ce

ss

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1 Service level

agreements

To ensure

optimum

provision of

service to internal

stakeholders

O N/A N/A N/A Director Procurement and Head of Customer’s

Department review and approve service level

agreement. Head of Customer

Department together with Director Procurement

measure actual performance delivered against

expectation standards agreed

M P E N/A Category

Manager



APPENDIX I APPROVAL HIERARCHYAPPROVAL HIERARCHY

229



APPENDIX II OVERVIEW OF JOB ROLESOVERVIEW OF JOB ROLES

230



Standard DocumentsNo. Term

1. Loan Application Form

2. Request for Mobilisation Funds

3. Request for Advance Form

4. Account Opening Request Form

5. Working Advance Retirement Form6. Bank Account Opening Form

7. Change of Circumstances Request Form

8. Account Closure Request Form9. Manual Wire Request Form

10. Petty Cash Requisition Form11. Account Closure Letter

12. Letter of Compliance

13. Payment Authorisation Letter

14. Transmittal Letter

15. Modification Letter

16. Dunning Letter

17. Letter of Authorisation

18. Master Data Change Request Form

Definition

Completed when making a request for a loan.

equest for Mobilisation Funds Completed by contractor based on payment scheduleagreed.Completed when the line manager identifies a needfor advance.

Account Opening Request Form Completed when requesting to open a new bankaccount.

Working Advance Retirement Form Completed when accounting for advancesCompleted to open a new bank account after theinitial request had been made.

Change of Circumstances Request Form Completed when there is a chandetails originally supplied to the bank.

Account Closure Request Form Completed when an account needs to be closed.Completed when a manual wire transfer is to beinitiated.Completed when petty cash is neededLetter to instruct Bank of which account to closeprovides details of where to transfer remainingfunds.Letter to show that the unit agrees with the Termsand conditions of the loan.Letter to authorise payment to be made.

Transmittal letter provides the recipient with aspecific context in which to place the attacheddocument and also gives the sender a permanentrecord of having sent the material.Letter to instruct the Bank of which account tomodify and what modifications are requiredNotification sent to a customer, stating that thecustomer is overdue in paying an account receivablto the sender.Document authorising Verifiers to visit locations andinspect assets

Master Data Change Request Form Completed when there is the need for changes to bemade to standing data. Information to be completedinclude change description, reason, impactedstaff/departments, and estimated time

231

ompleted when making a request for a loan.

ompleted by contractor based on payment schedule

ompleted when the line manager identifies a need

ompleted when requesting to open a new bank

ompleted when accounting for advancesompleted to open a new bank account after the

ompleted when there is a change in any of thedetails originally supplied to the bank.

ompleted when an account needs to be closed.ompleted when a manual wire transfer is to be

ted when petty cash is neededetter to instruct Bank of which account to close and

provides details of where to transfer remaining

Letter to show that the unit agrees with the Terms

e payment to be made.

ransmittal letter provides the recipient with aspecific context in which to place the attacheddocument and also gives the sender a permanent

having sent the material.Bank of which account to

modify and what modifications are requiredotification sent to a customer, stating that the

customer is overdue in paying an account receivable

ocument authorising Verifiers to visit locations and

ompleted when there is the need for changes to bemade to standing data. Information to be completed

change description, reason, impactedstaff/departments, and estimated time