Accounts Receivable. Policy Statement

Transcription

1 Accounts Receivable Policy Statement

2 Policy name: Accounts Receivable Policy number: Finance Key result areas: Finance Branch: HR and Corporate Services Responsibility for review: Accountant Location: Intranet Policies, Procedures and Manuals Amendments: Cross-references: Public Finance and Audit Act 1987 Treasurers Instruction 1, Interpretation and Application Treasurers Instruction 2, Financial Management Treasurers Instruction 19, Financial Reporting Treasurers Instruction 28, Financial Management Compliance Program; Department of Treasury and Finance, Financial Management Toolkit. Commissioners Standards. Review date: December 2012 Approved by: Chief Executive Issue date: December 2010 Ref: A52915, 12

3 ACCOUNTS RECEIVABLE 1. INTRODUCTION The Chief Executive has a responsibility to establish and maintain an appropriate internal control environment in accordance with Treasurer s Instruction 2 Financial Management. Key aims of the Accounts Receivable Policy include: To ensure all debts owed to the SACE Board are paid by the due date and followed up within specified timeframes and appropriate internal controls are exercised over all debt management practices and procedures. To provide the policy context within which the SACE Board s employees are able to manage accounts receivable. To ensure appropriate internal controls are exercised over all debt management practices and procedures. To ensure accounts receivables are managed in accordance with Treasurer s Instructions. The SACE Board of South Australia recognises the need to have in place a framework to demonstrate sound financial governance of its business operations. The SACE Board believes that the setting and reviewing of policy is a prime responsibility and should provide a clear, consistent and transparent basis for initiation, development, review, management and reporting of the SACE Board s finance policy documents to ensure the efficient and economic use of public resources. 1.1 APPLICATION OF THIS POLICY AND PROCEDURE The policy and procedure relates to all Financial Management activities conducted at the SACE Board of South Australia. 2. POLICY PRINCIPLES To ensure all debts owed to the SACE Board are paid by the due date and followed up within specified timeframes and appropriate internal controls are exercised over all debt management practices and procedures. 3. RELEVANT LEGISLATION The Board operates under the authority of the SACE Board of South Australia Act 1983, as amended in 1983, 1990, 2007, and Treasurer s Instruction 28 Financial Management Compliance Program identifies the following areas as a part of the financial management compliance program: Compliance with applicable financial management legislation; sub-ordinate legislation and other mandatory requirements of the State. Assessment of policies, procedures, systems and internal controls for income, expense, asset, liability, budgetary and reporting activities. Ref: A52915, 12 Page 3 of 5

4 An effective financial management compliance program will include an assessment of the public authorities compliance with financial management, financial administration and financial reporting matters contained within: Relevant legislation Public Finance and Audit Act 1987, Appropriation Act (annual act), Public Sector Management Act 1995, State Procurement Act 2004, Public Corporations Act 1993, South Australian Government Financing Authority Act, Statutory Authorities enabling legislation, and Commonwealth and State Taxation Legislation. Sub-ordinate legislation Treasurer s Instructions, Commissioner s Standards and Code of Conduct, and State Procurement Board Policies. Other financial management policies/requirements of the State Department of Treasury and Finance Circulars, Department of Premier and Cabinet Policies and Circulars, Leasing Guidelines, Cash Alignment Policy, Monthly Monitoring Requirements, Government endorsed contractual arrangements, Government endorsed Information System Management Framework including Information, Communication and Technology policies and standards, State Records requirements. 4. RESPONSIBILITIES Chief Executive Officer The Chief Executive is responsible for: implementation of this policy and for ensuring all employees are aware of the policy; approval of relevant procedures to support the implementation of this policy; ensuring that managers and employees comply with the policy; management of breaches of this policy; The Accountant The Accountant is responsible for: Ensuring that employees are familiar with the policy; Development and implementation of relevant procedures to support the implementation of this policy; Monitoring compliance with the policy and procedures; Ensuring that the Chief Executive is provided with information when breaches of this policy or discrepancies are identified; Monitoring and reporting any costs associated with the administration of this policy and procedures within their teams and/or areas of responsibility Employees Employees are responsible for: Familiarising themselves with this policy. Ensuring compliance with the policy. 5. POLICY STATEMENT Ref: A52915, 12 Page 4 of 5

5 It is the policy of the SACE Board to ensure that prudent debt management practices are applied and that all reasonable action is taken to recover all revenues and other amounts owing to the SACE Board. In particular: No credit accounts for customers will be established; Invoices will be raised immediately an amount becomes due and payable to the SACE Board and monthly statements issued to debtors; Payment of a debt to the SACE Board must be in an acceptable form and payment by credit card will not be accepted unless proper facilities have been established in accordance with Treasurer s Instruction 4; Sundry debtor sub-systems will be reconciled with the General Ledger monthly and discrepancies immediately investigated and any overpayments refunded; Aged Debtors reports will be reviewed monthly and appropriate follow up action taken; No debts are written off without the prior approval of the Chief Executive and in accordance with Treasurer s Instructions; Adequate provision is made for bad and doubtful debts in the Financial Accounts of the SACE Board. Ref: A52915, 12 Page 5 of 5