TRIATHLON ASSOCIATION OF SINGAPORE STANDARD OPERATING PROCEDURE (FINANCE)

Transcription

1 TRIATHLON ASSOCIATION OF SINGAPORE STANDARD OPERATING PROCEDURE (FINANCE) 1

2 Table of Content This Standard Operating Procedure (SOP) consists of 4 main areas:- 1. Procurement 2. Financial Payment: Procurement (Vendor Invoices) Staff Reimbursements Petty Cash Reimbursement Cash Advances (Events/Volunteer allowances) Entertainment/Travel/Overseas expenses Cheque Books & payment Controls Income, Accounts Receivable and Receipts: Income Sources (SSC Funding, Sponsorship, Membership Fees, Income from Business Unit) Account Receivable Management Receipts Reporting Internal Checks & Control 3. Fixed Assets Acquisition & Capitalization Depreciation Policy Disposal Policy 4. Logistics and Inventories Checking 2

3 1. PROCUREMENT This policy applies to procedures of processing purchase orders for expenditure of goods to be purchase and services to be render from external vendors. Main risk Procurement may not be made in a fair and transparent manner. Procurements may not be made at the most favorable pricing or value. There might be unauthorized procurements of goods and services. Authorized purchase requisition form (PRF). Documented Communications with suppliers and vendors. Reviewer and Approval process by Executive Committee (EXCO). Minimum 3 quotations/tenders from 3 different vendors for purchases amount of more than S$3,000. For Amount S$3,000 or less, - Procuring staff (PS) inform EXCO on intended procurement & purpose of procurement (via ). - Where the price of the item is not known (either by previous purchase, posted prices by suppliers or any other reliable information and where the price is reasonable), PS is to source for more than 1 quote and get the best valuefor-money before making purchase. All documentations are to be attached to PRF. For Amount S$3,001 to S$50,000, - PS requests quotations from minimum 3 different vendors. - PS seeks for approval from EXCO with their recommendation. (via ) For Amount S$50,001 & above, - PS comes up with tender specs and seeks for approval from EXCO. (via ) - PS post tender specs on TAS website, with deadline for submission. PS is to seek for minimum 3 tender vendors. - PS seeks for approval from EXCO with their recommendation. (via ) Submission for Authorization - PS is to ensure that proper communication and confirmation of order had been done with the vendors before raising PRF - PS fills up PRF and attach the following: quotations, tender specs, tender proposals, correspondences, approvals, any other documentation. - PS submits to Senior Executive (SE) for review. SE reviews documentations and signs off as evidence of review. - SE submits PRF to EXCO for their approval. EXCO reviews documentations and signs off as evidence of approval. (Please refer to reviewer and Approver Table) - PS is to confirm order with successful vendor, and to reject the other vendors. (via ) - PS attach confirmation and rejection s with PRF, and submit to Finance Executive (FE). (For Cash-on-delivery, PS shall go through point payment policy with vendor s invoice.) - FE files set of PRF documents in waiting file Reviewer and Approver Table REVIEW BY Senior Executive or Manager Secretary APPROVED BY Senior Executive or Manager Treasurer Secretary or President President Management Committee $50,001 X X X X $3,001 up to $50,000 X X X Up to $3,000 X X Waiver of Competition X X X 3

4 2. FINANCIAL 2.1 PAYMENTS PAYMENTS FOR PROCUREMENT (WITH VENDOR S INVOICE) This policy applies to procedures towards the processing of payments to vendors. Advance payment made to vendors, which will reduce cash-flow available for operation. Double processing of invoice and payment being made twice to vendors. Payment made to the wrong vendors. Payment made to unauthorized or fictitious invoice. Payment amount differs from invoice amount. Payment will be made based only on the original invoice received. Authorized payment voucher (PV). Reviewer and Approval process by Executive Committee (EXCO). (Please refer to reviewer and Approver Table in point 1) - PS receives vendor s original invoice. - PS fills up PV, attaches the vendor s original invoice, and submits to SE. - SE checks PV and matches details in the invoice with the PRF documents in the Waiting file, and signs off on the PV as evidence of review. - For fixed assets and inventories, SE makes a copy of PV and DO and submits to Logistics Executive (LS). (Please refer to point 3.1 for fixed assets tracking and point 4 for inventories tracking). - SE attaches documents with PV documents, and submits to FE. - FE checks documents, and reports any discrepancies to SE. - If there is no discrepancies, FE issues a cheque and quotes the cheque number issued on the PV. - All cheques, to be crossed account payee only, shall be issued to the person or entity named in the invoice and PV. - The amount paid is written down in words as well as figures on cheque and PV. - FE submits the cheque and PV documents to EXCO for review. - EXCO reviews PV documents and signs off on cheque and PV as evidence of approval. - FE stamps PAID on the PV and original vendor s invoice and sends cheque to vendor. - FE files PV with the original vendor s invoice in the Finance file. 4

5 2.1.2 PAYMENT FOR STAFFS REIMBURSEMENT This policy applies to procedure of processing claim requests from staffs that had made payment for goods and services on TAS s behalf. Staff or Management made unauthorized purchases and claims. Staff or Management made a late submission for claims. Authorized Claim Form (CF). Time frame for submission of claims. - Any claim that is submitted later than 2 months after its invoice or receipt date will not be entitled for reimbursement. - For claim of staff or Management, who is one of the signatories under the review and approval table matrix, the 2 signatories should be separate independent parties from the staff or Management making the claim. - Staff making the claims (CS), fills in CF and attaches together with supporting documents and receipts. - CS fills in PV, attaches to CF and submits to SE for review. - SE checks PV and matches the details in documents and receipts with CF and PV, and signs off on CF and PV as evidence of review. - SE submits documents to FE. - FE checks documents, and reports any discrepancies to SE. - If there is no discrepancies, FE issues a cheque and quotes the cheque number issued on the PV. - All cheques, to be crossed account payee only, shall be issued to the CS only. - The amount paid is written in words as well as figures on cheque and PV. - FE submits the cheque and PV documents to EXCO for review. - EXCO reviews PV documents and signs off on cheque and PV as evidence of approval. - FE stamps PAID on the PV and claim form. - CS receives the cheque and signs on the PV for receipt acknowledgement. - FE files PV with CF, documents and receipts in the Finance file. 5

6 2.1.3 PAYMENT FOR PETTY CASH REIMBURSEMENT The policy applies to procedure of reimbursement and approving reimbursement of petty cash. Unauthorized claims submitted for reimbursement. Reprocess reimbursed petty cash voucher/receipt. Misappropriation of petty cash float. Use of the imprest system to limit cash holding exposure. Ensure petty cash voucher is properly authorized and claimed before submission for reimbursement. Ensure reimbursed voucher is cancelled. Spot check petty cash balance periodically - S$ 500 petty cash float is to be maintained and to be reimbursed when it is at/ below reimbursable level of S$100 during the month; - SE ensures balance of petty cash float counted and amount to be reimbursed equal to approved float amount - SE prepares PV and attaches all petty cash vouchers to PV, and submits to FE. - FE checks and reviews petty cash reimbursement (Top-up) and signs off on PV as evidence of review. - FE forwards petty cash reimbursement PV, petty cash vouchers and cheque for review and approval. - Signatories checks and sign on petty cash listings, approve petty cash reimbursement and sign on PV and cheque - FE checks reimbursement of petty cash is in order - FE en-cash cheque and put cash into petty cash box. - A surprise count will be performed by Treasurer and FE at least once a month with SE witnessing to ensure that the un-reimbursed petty cash voucher plus balance of petty cash shall always equal to approved petty cash float - The limit of petty cash claims from staff is $ Any staff claims beyond $ 100 will not be paid out from the petty cash float and will follow instruction (2.1.2 Payment for Staff reimbursement). 6

7 2.1.4 PAYMENT FOR CASH ADVANCES (FOR EVENTS OR VOLUNTEER ALLOWANCES) This policy applies to procedure of approval and disbursement of Cash Advances for events or for Volunteer Allowances. Unauthorized engagement of volunteers / temporary staffs and amount disbursed. Misappropriate of cash advances disbursed Cash Advances for events or Volunteer Allowances are to be treated as an amount owing to TAS. Cash Advances for Volunteer Allowances to be requested by Volunteer Manager (VM) only. Request to be approved by either President, Deputy President or Honorary Secretary only. (Volunteer Allowances) - VM seeks for approval for cash advance (via ), with projected number of volunteers and recommended allowances to be given to the volunteers. - VM prepares PV, attaches approvals and all supporting documents, and submits to SE. - SE checks PV with supporting documents, signs off on PV as evidence of review. - SE submits PV to FE. FE checks documents, and reports any discrepancies to SE. - If there is no discrepancies, FE issues a cheque and quotes the cheque number issued on the PV. - No cash cheque will be issued. All cheques, to be crossed account payee only, shall be issued to the VM only. - The amount paid is written down in words as well as figures on cheque and PV. - FE submits the cheque and PV documents to EXCO for review. - EXCO reviews PV documents and signs off on cheque and PV as evidence of approval. - FE stamps PAID on the PV and present cheque to VM. - VM receives the cheque and signs on the PV for receipt acknowledgement. - FE files PV in the Waiting file. - VM to maintain volunteers sign-in, sign-out (Work done), allowance collected report and Statement of Account (SOA) for submission to FE latest 3 days after event. - FE reviews documents and attaches together with PV for completeness of documents. - FE bank-in any balance allowances left; or prepares payment for any shortfall, made payable to VM. - SE to review and sign off on report as evidence of review. (Other Advances) - Requesting Staff (RS) seeks for approval for cash advances (via ), with reasons and a projected budget. - RS prepares, attaches approvals and all supporting documents, and submits to SE. - SE checks PV with supporting documents, signs off on PV as evidence of review. - SE submits PV to FE. FE checks documents, and reports any discrepancies to SE. - If there is no discrepancies, FE issues a cheque and quotes the cheque number issued on the PV. - No cash cheque will be issued. All cheques, to be crossed account payee only, shall be issued to the RS only. - The amount paid is written down in words as well as figures on cheque and PV. - FE submits the cheque and PV documents to EXCO for review. - EXCO reviews PV documents and signs off on cheque and PV as evidence of approval. - FE stamps PAID on the PV and present cheque to RS. - RS receives the cheque and signs on the PV for receipt acknowledgement. - FE files PV in the Waiting file. - RS is to keep a record (SOA) of all expenses. SOA to be prepared and submitted together with all supporting documents or receipts to FE, latest 3 days after event. - FE reviews documents and attaches together with PV for completeness of documents. - FE bank-in any balance allowances left; or prepares payment for any shortfall, made payable to RS. - SE to review and sign off on report as evidence of review. 7

8 2.1.5 PAYMENT FOR ENTERTAINMENT / TRAVEL / OVERSEAS EXPENSES This policy applies to procedure of approval and limit guide on entertainment, travel and overseas expenses. Unauthorized entertainment or overseas expenses claimed. Entertainment, Travel & Overseas Expenses budget to be approved by 2 members of EXCO Authorized PRF. Authorized staff claim form. Time limit for claim submission. - Any claim that is submitted later than 2 months after its invoice or receipt date will not be entitled for reimbursement. - For claim of staff/mc Member who is one of the signatories under the authority matrix, the 2 reviewing/approving signatories should be separate independent parties from the staff/mc Member making the claim. Local meals expenses (For Entertainment) - Only the EXCO and GM have the authority to claim local meals expenses, with the sole reason of entertaining. - Claimant must put in a request to the EXCO. The request must be approved by any 2 other members of the EXCO. (President, Deputy President, Honorary Secretary, Assistant Honorary Secretary, Honorary Treasurer) - Expenditure limit of up to $60 per person, and up to 10 persons - For any claims above the limit, the approval had to be presented to and approved by the MC. Overseas expenses - A reasonable budget must be prepared at least two weeks before travel. - The budget has to be send to EXCO for their approval. (via ) - Overseas meal expenditure of up to $60 per person per day. (Depending on the country of travel), Staff must put in a request via , to the EXCO for their approval, if they expect the meal expenditure to be more than $60 per person per day. - Overseas accommodation expenditure of up to $200 per person per day. (Depending on the country of travel), Staff must put in a request via , to the EXCO for their approval, if they expect the accommodation expenditure to be more than $200 per person per day. - Any expenditure that exceeds approved budget, out-of-pocket expenditure that were not budgeted for, or expenses without receipts, will have to be explained to the EXCO upon the staff s returns from the trip, and to seek for their approval, before any claims can be done. - For cash advances, Staff/MC Member is to follow the procedures as stated in (Cash Advances). All Supporting documents and approval correspondences must be submitted together with the PV for cash advance. - For Out-of-pocket Reimbursement, Staff/MC Member is to follow the procedures as stated in (Payment for Staff Reimbursement). All supporting documents and approval correspondences must be submitted together the PV and CF. 8

9 2.1.6 CHEQUE BOOKS AND PAYMENT CONTROL In general, all cheques will have to be signed by the TREASURER and either by the PRESIDENT or HON-SECRETARY. - The cheque books are in the custody of the FE who shall keep the cheque books under lock and key at all times. - A cheque book register for used and unused cheques is maintained by the FE to keep track on the usage of cheque books which is subject to SE/Treasurer Review on a monthly basis - FE retains the cheque stubs of issued cheques for verification purposes. - For spoilt or cancelled cheques, FE marks CANCELLED across the cheque and retained for verification purposes. - FE to check cheque stubs of issued cheques for verification purposes - FE to also check against the bank statements to ensure that double payments are not made - For payments that is outstanding for more than one month, FE to ensure that payment is made promptly whenever funds are available - All PV and invoices must be stamped PAID after cheques had been issued. This is done to avoid duplicate payments. 9

10 2.2 INCOME SOURCES, ACCOUNTS RECEIVABLES MANAGEMENT AND RECEIPTS INCOME SOURCES This policy applies to procedure of processing of: - Grant from Singapore Sport Council (SSC) - Sponsorship. - Membership Subscription Fees. - Income from TAS s business unit (Water Safety services, road closure services, event consultancy) - Income from sanction fees of events - Income from management fees for events. - Event Registration Fees (e-nets) Billing not complete. Untimely billing. Wrong billing amount. Monitor contract register, confirmation forms not billed, receipt book and other source documents like goods issued notes and service completion forms Review and approve sales invoice and sales journal voucher Grant from SSC / Sponsorship - Grant / Sponsorship is recognized based on the term of contract, which states the period and amount that are receivable by TAS. - TAS signs agreement with SSC / Sponsor. - Admin Executive (AE) or Marketing Executive (ME) update the agreement in a Contract Register. - Contract Register will show the description of agreement, date period, income type, and amount receivable for the term of the particular contract. - FE, AE & ME monitors and update the contract register regularly. - Based on the contract register, FE generates sales invoice when the income is earned / terms of payment is up. - SE approved and signs off on the sales invoice. - The original copy of the sales invoice is sent out to billed party. - FE files a duplicate copy of the sales invoice in the Sales Invoices file. - No income shall be used to offset against any payment even if it may be for the same project or event. Membership - Staff who is in charge of the membership sends reminder letter/ of the renewal to all valid members (based on information on its most recent annual minutes), 2 weeks before date of membership expiry. - For members who did not pay the fees by the due date, FE posts the following entry into accounting books; Dr Subscription in arrears Account; and Cr Subscription Account - Membership to be cancelled if outstanding for 3 months after membership fees due date. - For members who pay the fees promptly, please refer to point (Receipt procedure). Receipts must be applied to membership fees Income from TAS s Business Unit - Income is recognized when quotation, service contract or rental form is signed. - Billing to Customer: FE generates sales invoice when contract is signed. FE submits sales invoice (with quotation, service contract or rental form) for review by SE. SE review, approve and sign off on the sales invoice. The original copy of the sales invoice is sent out to customer. FE files a duplicate copy of the sales invoice in the sales invoices file. 10

11 2.2.2 ACCOUNT RECEIVABLES MANAGEMENT This policy applies to procedure of managing receivable. Billing to wrong parties. Inability to collect receivables Untimely collection. Check sales invoices listing to receivable. Monitor receivable ageing on a monthly basis. - FE and SE checks income from various sources in the income statement against contract registers, contracted services listing, membership list etc to ascertain all income earned to date have been properly billed. - FE and SE prints out the account receivable ageing to track and monitor long outstanding receivable. - For debts which collection is doubtful, an estimate for doubtful debt is made. Appropriate legal action should be recommended to the MC for approval prior to commencement of action. - For debt that is not collectible, debt can only be written off after approval from MC is sought (SE to recommend with reasons). - For collectible debt that is outstanding for more than one month, a reminder letter is to be sent to debtor. 11

12 2.2.3 RECEIPTS This policy applies to procedures of processing of income received from customers, members, sponsors, and any other party who make payment to TAS. Receipt not banked in timely. Revenue had not been completely/accurately accounted for. Verify receipt of cash and cheques to receipt books and cash at bank account. Proper handover procedures and segregation of duties for receipt of income. Documentation and Authorization of review on receipts. Cash: - Staff receives cash, counts amount, and verifies against contract, invoices or billings. - Staff writes the amount and description on pre-numbered receipt (using a 2 ply receipts book). - Staff signs off on the receipt as acknowledgement and issues original receipt to the payee. - Staff is to hand cash collections over to SE on a daily basis. - SE check collections with receipt books, and records into collection listing - SE signs off as evidence of receipt checks in receipt books - SE keeps cash in safe box with security lock and banks in once float reaches $1,000, or once every fortnight, whichever is earlier. - SE is to record dates of bank-in into the collections listing - SE hands duplicate copy of collections listing to FE, who files in the accounting file, once a month. - FE checks cash amount against bank-in slips, receipt books, bank statement and collections listing, and signs off as evidence of review. - FE posts the following entry into accounting books; Dr Cash at Bank Account, Cr Respective Income Account; or Cr Receivable Account (if billing is made to payee). Cheques: - Same procedures as above. SE keeps cheques in safe box with security lock and banks in on a weekly basis. Overall - FE maintains a register to record issuance and return of receipt books. - FE to ensure all staff signed out and signed in receipt books - SE to consolidate collections against receipts issued out. This will be verified by the FE. - FE reconciles receipt book to Cash at Bank Account, and receipts not banked every week. - SE reviews bank reconciliation, contract register, fees listings and accounts receivable on monthly basis - For spoilt or cancelled receipt, FE marks CANCELLED across the cheque and retained for verification purposes. - SE prepares income statement with details of different income for review by the MC on a monthly basis - SE presents accounts receivable statement to MC to update MC on receivable status and recommend action for overdue amounts. Important points - Cash receipts to be banked in once every fortnight or whenever cash receipts reach $1, Cheque receipts to be banked in once every week. - SE to sign off on collection listings and bank reconciliation reports as document of review. - Treasurer/Secretary to sign off on collection listings and bank reconciliation reports as document of review and approval. 12

13 2.3 REPORTING This policy applies to procedure of monthly, quarterly and annual reporting to the MC and SSC, and for annual audit purpose. No regular and insufficient financial reporting to the MC Timely submission of monthly and quarterly reports. Timely submission of annual budgeted management reports and audited reports. Monthly Management Reporting: - On a monthly basis, FE prepares bank statements, bank reconciliation reports, statement of receipts and collections, cheque books and receipt books listings, accounts payable and accounts receivable for reporting to the Treasurer. - Treasurer signs off as document of review. - Treasurer to highlight any major discrepancies or issues to MC (via ), by calling for an EGM. - Upon review, FE files these monthly reports in the Finance File. Quarterly Reporting: - On a quarterly basis, FE prepares quarterly statement of accounts and KPI reports for the quarter ended. - FE presents quarterly statement of accounts and KPI reports for review and approval (President and Treasurer/Secretary). - Upon obtaining review and approval on the quarterly statement of accounts, SE submits to SSC within one month from the end of each quarter (or according to SSC s Schedule A dates Grants and Disbursement Schedule) Annual Budgeted Reporting: - On a yearly basis, staff prepares the annual budgeted income and expenditure account, balance sheet and cash flow statement for the next financial year. - SE compiles and presents these annual budgeted reports for review and approval. - Upon obtaining review and approval on the annual budgeted financial reports, SE submits to SSC. - SSC may from time to time issue instructions on the disbursement of funds in keeping with the SSC prevailing policy. Annual Audited Accounts: - Financial year shall be from 1st of April to 31 March each year. - After the financial year ended, FE prepares Trial balance and the financial statements: balance sheet, statement of changes in accumulated fund, cash flow statement, income and expenditure account and notes to the financial statements, for review by the SE, then Treasurer for the annual audit. - Audited statement of accounts and auditor report are to be submitted for review and approval by the MC. - After the approval and review are obtained, audited annual statements of accounts are to be submitted to SSC within 1 month upon completion of audit. 13

14 2.4 INTERNAL CHECKS & CONTROL This policy applies to procedure of internal monitoring to ensure the proper operation of the TAS. Daily cash monitoring Monthly bank reconciliation Monthly receipt and payment report Cheque book & receipt book monitoring Daily Cash Monitoring: - FE accesses bank website on a daily basis to check that: Receipts banked in the day before are reflected as deposit in the bank statement; and there is no large/unusual/unreasonable cheque payment in the bank statement. Any large/unusual/unreasonable cheque payment is further investigated, documented and followed up by FE. - Accesses to viewing the bank statement online are made available only to FE, SE and Executive Committee Monthly Bank Reconciliation: - FE performs the monthly bank reconciliation and ensures that for unpresented cheques that were outstanding for more than 6 months are to be cancelled and re-taken up into the book. - Original payment accounting entry is to be reversed as followed below : Dr Cash at Bank Account Cr Accrued Operating Expense/Respective Expenses Account (Being unpresented cheques outstanding for more than 6 months) - Receipts not taken up by bank but taken up in book, they are to be monitored through the daily cash monitoring of the bank balance and to be cleared by the next bank reconciliation. - Receipts/payment taken up by bank but not taken up in book, they are to be taken up within the next 5 days from the date of bank reconciliation - Treasurer reviews and signs off on the monthly bank reconciliation. Monthly Receipt and Payment Report: - Based on the Cash at Bank Account, which provide the cash position at any point in time, FE prepares the monthly receipts and payment report to keep track of the cash receipts and cash payments. - SE reviews, approves and signs off the monthly receipts and payment report. Cheque Book & Receipt Book Monitoring: - Upon receiving delivery of cheque book, FE to register no. of cheque book received and cheque running nos. in the Cheque Book Register (CBR). - SE to confirm entry is correct and sign-off in CBR. - SE to conduct monthly checks on CBR and report discrepancy to the Treasurer. - Upon receiving delivery of receipt book, FE to register no. of receipt book received and receipt running nos. in the Receipt Book Register (RBR). - FE to make a copy of the receipt book delivery order and file it the RBR. - SE to confirm entry is correct and sign-off in RBR. - SE to conduct monthly checks on RBR and report discrepancy to the Treasurer. 14

15 3. FIXED ASSETS 3.1 ACQUISITION AND CAPITALISATION OF FIXED ASSETS This policy applies to procedures of acquisition of fixed asset. Unauthorized purchase of fixed assets. Purchase of assets, which is not most competitive pricing or optimal benefits. Definition of Fixed Assets: Fixed Assets are any long term items of value that can be use to generate revenue for the TAS; The Capitalization Threshold limit to be classified as a fixed assets are items that are valued at $ 3000 and above; Items that are below $ 3000 are classified as expense items (or inventories); Ensure authorized personnel approves before acquiring; Minimum 3 quotations from different vendors s Requestor requests to buy fixed asset. - Requestor sources for minimum 3 quotations from different vendors - Requestor selects item to buy from quotations received - Requestor seeks for approval via with his/her recommendations. (Please refer to the reviewer and approver table in section in Procurement) - Once approval had been obtained, requestor fills up PRF, and attaches the quotations and approvals. - Reviewer and approver signs off on PRF. - Requestor confirms order with successful vendor, and rejects the other vendors. - SE files PRF, quotation and confirmation note in Waiting file. - Procuring staff receives original vendor s invoice, prepares payment voucher (PV) and submits to SE. - Requestor/Receiver receives fixed asset delivered by vendor, verifies the physical quantity to vendor s DO and signs off on the DO. - Requestor/receiver forwards original DO to SE. (Together with PV and invoice. Please refer to payment for vendor invoice) - SE makes a copy of PV and DO and hands over to Logistics Staff. (LS) - LS issues Fixed Asset Tag Number and tag on the acquired fixed asset. - LS update Fixed Asset register with all required information. (Tag number, date of purchase, cost, etc) Stock Count and Control Every 6 months, FE and SE conduct a count on fixed assets. After stock count, LS and FE reconcile count sheet back to the fixed asset register and signs off. Any discrepancy is investigated and documented where follow-up action is to be taken. FE and SE submit the fixed assets register to Treasurer for review and approval every 6 months. 15

16 3.2 DEPRECIATION POLICY This policy applies to procedure of accounting for depreciation of fixed asset. Policy Statement: Accounting for depreciation shall be provided for all fixed assets. Monthly depreciation charge shall be computed using expected useful life of fixed asset of each category. Straight-line depreciation method shall be used. Office equipment 15% per year Computer equipment 33% per year Sports equipment 20% per year Renovation 25% per year Fixtures and fittings 10% per year Equipment 15% per year Depreciation not provided for. Depreciation is not in accordance to depreciation policy. Over/under provision of depreciation. Check and review journal entry. Reasonableness check. - FE computes yearly depreciation of fixed asset - FE posts the general journal entry in accounting books for review by Treasurer. 16

17 3.3 DISPOSAL POLICY This policy applies to procedure of write off and disposal of spoiled/ unused fixed assets. Unauthorized Disposal of Fixed Asset. Misappropriation of Fixed Asset. Dispose wrong fixed asset. Disposal of fixed asset not updated in Fixed Asset Register. Ensure proper approval of disposal of fixed asset. Ensure disposal is documented and updated in Fixed Asset Register Disposal of fixed asset to be witnessed. - LS identifies spoiled/ non-existence/ unused fixed asset. - LS issues Fixed Asset Disposal Form (FADF) and attaches a copy of purchase invoice and details as per Fixed Asset Register of asset proposed to be disposed. i.e., Cost, Accumulated Depreciation and Net Book Value. - Requestor submits FADF to FE for review. - FE review and attached further information (Cost, Accumulated Depreciation and Net Book Value) - Reviewer and approver reviews, approves and signs off on FADF. (Please refer to the reviewer and approver table in Procurement section) - LS disposes fixed asset and signs off while another staff witnesses and signs for witness of disposal on FADF. - FADF is forwarded to Accounts Department - FE records disposal in accounts through general journal for review by Treasurer. - LS updates asset disposed in fixed asset register and indicates Disposed on the purchase invoice - LS files FADF in the Fixed Asset file 17

18 4. LOGISTICS & INVENTORY TRACKING This policy applies to procedure of tracking of inventories (expense items), Race Logistics and Goods for Sales/Loan/Rental like TAS Tees, Jet-Skis, Manual Timers, Buoys etc. Inventory not accounted for/ misappropriated. Lost/Damaged logistics not written-off and no replacement purchased. Ensure proper approval and recording on the selling of inventories and proper In-Out records for loan of Race Logistics. Periodic stock-taking to be conducted. - Requestor/Receiver receives fixed asset delivered by vendor, verifies the physical quantity to vendor s DO and signs off on the DO. - Requestor/receiver forwards original DO to SE. (Together with PV and invoice. Please refer to payment for vendor invoice) - SE makes a copy of PV and DO and hands over to Logistics Staff. (LS) - LS issues Fixed Asset Tag Number and tag on the acquired fixed asset. - LS update Fixed Asset register with all required information. (Tag number, date of purchase, cost, etc) Receiving inventories: - Procurement staff/receiver receives the items purchased, verifies the physical quantity to vendor s DO and signs off on the DO. - Procurement staff/receiver receives the items donated, verifies the physical quantity to donor s list and signs off on the list. - Procurement staff/receiver forwards original DO to SE (together with PV and invoice. Please refer to payment for vendor s invoice) - SE makes a copy of PV and DO and hands over to LS. - LS records the receipt of inventory into the inventory register and signs off. Summary: Inventory register records includes cost price of the items purchased, description of item, date of purchase, date of payment to vendor (if any) and duplicate copy of invoice. Selling of Inventories: - LS prepare Sales Order Form (SOF) when there is order for inventory and packs the requested inventory and signs off on SOF. - Customer collects the inventory and signs off on SOF to acknowledge. - LS records outgoing inventory under the SOLD column and signs off in the inventory register. - LS make a copy of the SOF and files in Logistics file. - Original SOF is then used as supporting document for billing or submitted with the payment received for cash sales. Loan of Race Logistics: - LS prepare SOF when there is request for inventory loan and packs the requested inventory and signs off on SOF. - Loaning party collects the inventory and signs off on SOF to acknowledge. - LS updates outgoing inventory under the LOAN column, signs off in the inventory register. - LS make a copy of the SOF and files in Logistics file. - Original SOF is then used as supporting document for billing. 18

19 Stock-count and Control - At the end of every quarter, LS and SE conducts stock count on the physical inventory in the store. - Physical quantity is counted and recorded on count sheet. - After stock count, FE and SE reconcile count sheet back to the inventory register and signs off. - Any discrepancy is investigated and documented where follow-up action is to be taken. - LS submits the inventory register to Treasurer for review and approval every month. 19