Finance Process Document - Banking and Treasury

Transcription

1 1. Current Account Bank Reconciliation REVISION HISTORY Revision Date Description of Change Process Owner No. 1 20/08/07 Initial Release Kathleen Gallagher 2 Oct-2012 Updated for 2012/2013 QMS review Liam Ryan, Maria O Connor 3 Dec-2014 Updated for 2014/2015 QMS review Liam Ryan, Maria O Connor PURPOSE To ensure that all transactions are recorded accurately within the GL and that a transparent reconciliation process exists between the bank statement and the GL, receipts and payments on bank statements versus the GL. RESPONSIBILITY Financial Accountant and Fixed Asset Administrator DOCUMENTATION Agresso General Ledger Section 2 V1.4 Section 2.3, page 7 Bank Reconciliation (Unit 4) RECORDS Refer to UL s Records Management and Retention Policy. All records are maintained on our Agresso Financial System. Finance adheres to the University s records management and retention policy. PROCESS VERIFICATION Exceptions Report highlighting mis-postings and allocations. Progress analysis is used where appropriate. Evaluation of all financial process effectiveness is carried out using internal (Finance Dept.) self-assessment and customer feedback reviews. We also get evaluated via the Finance divisional auditing process (PWC and C&AG). PD-TRE-019 Finance Department Page 1 of 8 Version 1

2 PROCEDURE Bank Reconciliation (UBCURAC1 and UBCURAC2) Reconciliation process administered within Agresso between the Cash Book Balance and Physical Bank Statements at month-end. The reconciliation process ensures that all transactions are posted accurately within the GL. The Financial Accountant approves Bank Reconciliations prepared by the Bank Reconciliation Administrator. File download from online banking and upload to Agresso Bankfiles for No1 Current Account and No2 Current Account are downloaded from the Ulster Bank Website (controlled access) - files saved with specific name to the UL Finance Shares with read only access. Files are imported into Agresso GL using Agresso CB05 Import Bank Statement program which updates the cashbook register with the statement lines (type=s) The bank statement is then ready to be reconciled with the items on the cashbook. Automatic Reconciliation Run Agresso CB09 Automatic Reconciliation this creates a reconciliation proposal between the bank transaction in the GL and the statement lines. It matches the bank reference field (text field on GL) to the bank reference on the bank statement. Manual Reconciliation Run Manual Reconciliation Process. Matching takes place with cash book versus bank statement mirror of transactions. Reversal of matching errors is available within Match Maintenance function. Exceptions Report Excelerator report writer (Agresso BREC Bank Reconciliation Report Excel) is run to pick up any exceptions or mis-postings. All exceptions and mis-postings are then corrected and further manual reconciliation is carried out on Agresso. Contact bank on any bank errors and follow up on any previous months errors. Matched items on both GL and Cashbook marked as type=r. These items are now ready for transfer to historical items on Agresso. Transfer matched items to historic items This process executes the physical transfer of all reconciled transactions with status R to the cashbook s historical register using Agresso CB09 Transfer to Historical Items. Both bank statement lines and bank transactions will be transferred. Review & Validation The final month-end Bank Reconciliation is reviewed and signed off by the Bank Reconciliation Administrator. The Financial Accountant completes final review and validation before signing. PD-TRE-019 Finance Department Page 2 of 8 Version 1

3 Bank Reconciliation Manual (Language Centre) Statements & General Ledger Report Bank Statements are received from Ulster Bank by post on weekly basis and filed in Finance Dept. Statements are also available via Ulster Bank online banking. General Ledger enquiry is run on Agresso for relevant period transactions for account 7535 (Language Centre). Manual Reconciliation Transactions on bank statements and transactions in GL are manually reconciled using Excel. Reconciliation between Balance on Bank Statement and balance in General Ledger at month end using Excel Reconciliation is completed and verified using the following formula. Bank Balance as per Bank Statement Less receipts on B/S not in GL Plus payments on B/S not in GL Less payments in GL not on B/S Plus receipts on GL not on B/S Should equal the GL Balance Exceptions Report Outstanding items on Reconciliation to be checked and any mis-postings or errors corrected in Agresso. Contact bank on any bank errors and follow up on any previous months errors. Review & Validation The final month-end Bank Reconciliation is reviewed and signed off by the Bank Reconciliation Administrator. The Financial Accountant completes final review and validation before signing. PD-TRE-019 Finance Department Page 3 of 8 Version 1

4 2. Treasury Process REVISION HISTORY Revision No. Date Description of Change Process Owner 1 20/08/07 Initial Release Liam Ryan 2 Oct-2012 Updated for 2012/2013 QMS review Liam Ryan 3 Jan 2015 Revised in line with new template for 2015 Liam Ryan QMS review PURPOSE This document outlines the processes associated with the Treasury Function in the University of Limerick. RECORDS Refer to UL s Records Management and Retention Policy. PROCESS VERIFICATION Evaluation of treasury process effectiveness is carried out via external and internal audits and selfassessment. RESPONSIBILITY The Financial Accountant is responsible for the management of the treasury process under the direction of the Financial Controller - Operations. PROCEDURE Transactions into Source Bank Accounts Ulster Bank Source File Transactions in soft format from Bank. Transfer of funds to Deposit Accounts plus Reconciliation of Transactions within the Financial Statements and Treasury Report University Authorities Physical Bank Statements and Microsoft Word and Excel Key Controls for this process PD-TRE-019 Finance Department Page 4 of 8 Version 1

5 Ensure the accuracy and integrity of postings exists with the bank accounts held under the University Name and that minimum balance guidelines (Tier 1 and 2) as set out in the treasury policy are being adhered to whilst also ensuring a robust and integral bank reconciliation process is in place substantiating the postings within the Financial Statements. In addition that the treasury deals are approved and achieving best interest rate returns for the University. Reconciliation process completed on a monthly basis between the Cash Book Balance and Physical Bank Statements. Monthly Treasury Report is sent to the Financial Controller. The Financial Controller approves the Bank Reconciliations prepared by the Financial Accountant. The Bank Reconciliation process ensures that all transactions are posted accurately within the GL. Sub-Processes: TRE01-01 Cash Forecasting Target Account Balances Treasury guidelines set by the University Ensure that the target Account Balances are being adhered to in Ulster Bank Accounts: - Current Account 1 Target Balance 125k - Current Account 2 Target Balance 500k - Fees 1 Target Balance 50k - Fees 2 Target Balance 50k - Deposit 1 Target Balance 0k - Deposit 2 Target Balance 3.5m - Language Centre 0k Login into Bankline Ulster Bank System Financial Accountant access s the Ulster Bank Bankline System via web-link from University Validation Balance Check Bankline Ulster Bank System University policy and guidelines on target balance Target Balance check as outlined above Transfer to/from Deposit Accounts via Bankline Bankline Login into Bank Accounts via Bankline using the following: - Username - Password Access 2nd Login Screen which relates to Authorisation Levels and Approvals Using the Bankline Software to make transfers to deposit accounts Access the 2nd Login Screen which allows transfers to/from deposit accounts (approved with keyfob) take place when Authorisation and Approval Levels have taken place by the following: - Financial Accountant and - Financial Controller Or - Director of Finance PD-TRE-019 Finance Department Page 5 of 8 Version 1

6 TRE01-02 Bank Selection TRE01-03 Monitoring Preparation of Treasury Deal Sheet consists of the following: - Banks Contacted - Rates Achieved - Decision Made - Approved by Financial Controller Transfer of funds takes place on Bankline authorised by keyfob. Preparation of Treasury Report Excel Document consisting of: - Source Bank - Account Type - Balance - Interest Rate - Deposit Number Preparation of Annual Report to Finance Committee consisting of review of financial performance of University in Financial year and of the department. Physical Bank Statements are received in the UL Finance Dept Physical Bank Statements Physical Bank Statements Physical Bank Statements are received in the UL Finance Dept Reconciliation Process Separate Activity to the Bank Reconciliation Process BKREC0-1 Deposit Bank Reconciliation Process consists of the following: - Balance as per GL Less Credits / Debits on Bank Statements => Adjusted Total Balance as per Bank Statement Less Outstanding Lodgements => Adjusted Total Deposit Bank Reconciliations ed to Financial Controller Bank Reconciliation is forwarded to Financial Controller for information and approval purposes Preparation of GL Journals to be posted in Agresso Preparation of GL Journals to be posted in Agresso by Financial Administrator DOCUMENTATION Where relevant, list documents to be used with this process (e.g. work instructions) and provide hyperlinks to each. PD-TRE-019 Finance Department Page 6 of 8 Version 1

7 Treasury Version 2 TRE01-01 Cash Forecasting TRE01-02 Bank Selection Process Owner: Liam Ryan Date: Oct-2012 Transaction Source Financial Accounting Output Login into Bankline University Guidelines - Tier 1 - Tier 2 Based on Independent Credit Ratings Ulster Bank Accounts Holder - Current Account 1 [ Target Balance 125k] - Current Account 2 [Target Balance 500k] - Fees 1 [Target Balance 50k] - Fees 2 [Target Balance 50k] - Deposit 1 [Target Balance 0k] - Deposit 2 [Target Balance 3.5m] - Language Centre [Target Balance 0k] Validation Balance Check against Minimum Balance Criteria Treasury Deal Sheet - Banks Contacted - Rate Achieved - Decision Made - Approved by FC Transfers to/from Deposit Accounts via Bankline - Username - Password Transfers to Deposit Accounts 2 nd Login Screen Authorisation Levels - Financial Accountant - Financial Controller - Director of Finance Preparation of Treasury Report - Source Bank - Account Type - Balance - Maturity Date - Interest Rate - Deposit Number Transfer Funds Physical Bank Statements Reconciliation Process (separate activity to bank reconciliation process mapping BKREC01) Preparation of quarterly funds and revenue reports Bal as per GL LESS Credits/ Debits on bank statements => Adjusted Total Bal as per Bank Statement LESS Outstanding Lodgements => Adjusted Total Preparation of Annual report to finance committee Distributed to UL Finance Dept Page 2 PD-TRE-019 Finance Department Page 7 of 8 Version 1

8 Treasury Version 2 TRE Monitoring Process Owner: Liam Ryan Date: Oct-2012 Transaction Source Financial Accounting Output Page1 Deposit Bank Reconciliations completed by Financial Accountant General Ledger Updated ed to Financial Controller Financial Accountant prepares journals Journal entries posted in GL by Accounts Clerk PD-TRE-019 Finance Department Page 8 of 8 Version 1