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Policy 8.1 – Financial Transactions

 

Lyell McEwin Regional Volunteer Association Inc

 

POLICY & PROCEDURES DOCUMENT

 

POLICY TITLE:                    PROCESSING OF FINANCIAL TRANSACTIONS

POLICY NUMBER:           8.1

POLICY STATEMENT:

The Board of the Volunteer Association are committed to developing clear and transparent financial processes for the management of its financial resources

 

EXPECTED OUTCOMES:

  • Clear processes established for all Association personnel
  • Clearly defined boundaries and roles for Association personnel dealing with Association monies
  • To be able to demonstrate accountable lines of delegations to meet audit requirements

 

PROCEDURES (To implement Policy):

Deposits

1.   All deposits for the Association account are to be made via the Daily Banking Envelope in the finance cupboard.

 2.   Each area is to fully complete the ‘Incoming’ section of their appropriate Departmental Shift Takings Form.

 3.   When placing takings in the Daily Banking Envelope the depositor must enter the amount of cash and EFTPOS (if Applicable) takings on the Daily Banking Summary Form for the department and initial where stated. Also to be noted would be the value of any cash spent from the til to purchase goods from the local supermarket etc.

 4.   The depositor then will place the takings and the Departmental Shift Takings Form for there department with all applicable cash register receipts and EFTPOS settlement (if Applicable) stapled to the Departmental Shift Takings Form in the Daily Banking Envelope.

 5.   On the next business day the Daily Banking Envelope will be counted and the total cash reconciled with the amounts entered on to the Daily Banking Summary Form using the cash breakdown on the from.  All material discrepancies will be investigated at time of reconciliation if unable to ascertain the discrepancies then the Executive Officer should be made aware.

 6.   Once the cash has been reconciled the banking will be prepared.  An Express Deposit Envelope should be used for every days banking, the following areas must be completed, Branch Record and Customer Record (at top of Express Deposit Envelope), Account Name, Account Number (details on Daily Banking Summary Form) and Cash Breakdown.

7.   A Deposit slip will be filled in with the date of the banking and the amount, with all cheques individually written on back. The deposit book stub should be filled in with the date, amount and Express Deposit Envelope serial number.

 8.   The Customer Record is to be detached and stapled to the Daily Banking Summary Form with all the Departmental Shift Takings Form for the banking.  Write the Express Deposit Envelope serial number on the Daily Banking Summary Form where stated.

 9.   The cash is to be placed in the top envelope (Largest one), with the cheques and deposit slip placed in the bottom envelope.  Once placed in the envelopes should be sealed.

 10. Before placing the Express Deposit Envelope in the safe fill in a Safe Custody Docket Book with “Lyell McEwin Volunteers, Haydown Rd Elizabeth Vale” and the bag number and the cash and Cheque totals separate.  On days when the envelopes are collected the totals should be added and recorded where required.  Then place in the safe.

 11. A security firm will come by at regular intervals to collect the Express Deposit Envelope.  Pass them the Express Deposit Envelope and the Safe Custody Docket Book they will complete the Safe Custody Docket Book and give it back after removing there copies.  Place the Safe Custody Docket Book back in finance cupboard.

(*) – Forms from the Café, Gift Shop and TV Hire also require additional statement sheets and for the café  and gift shop, cash register dockets to be attached.

                                                                                                           

 

Payment Of Accounts

1.   Upon receipt of invoice(s), the ‘Outgoing’ section of the relevant ‘Transaction Report Form’ is to be fully completed and the form authorised for payment by the paid staff member responsible for the area. Where more than one invoice has been received during the course of a week, these are to be ‘batched’ and attached to a single Transaction Report Form.

 2.   The invoice(s) are to be stapled to the ‘Transaction Report Form’ and forwarded to the Treasurer for payment.

 3.   Invoices requiring payment need to be received by lunchtime on the day prior to the treasurer’s regular visit to complete cheque processing.

 

Internal Reconciliations / Transfers

  1. Where there is a need for funds to be transferred to another area of the Volunteer Association’s operations, a Tax Invoice shall be issued by the area requiring the payment and the account will be paid, by cheque, like any other transaction.

 

Petty Cash Reconciliations

1.   Reimbursement of Petty Cash float amounts are to be made on the ‘Petty Cash Reconciliation Form’, which is to be completed after every petty cash transaction.

 2.   Upon payment of a petty cash expense, the Area Manager or person incurring the expense is to seek a receipt where possible. This receipt is to be numbered in the top right hand corner with the corresponding number appearing in the “#” column of the Petty Cash Reconciliation Form.

 3.   The Area Manager is to complete all of the details for each transaction and attach the receipt(s) to the petty cash form. These details included Date, Description of Items and Area, Amount and GST.

 4.   When the Petty Cash Reconciliation Form is complete, or when the petty cash float is running low, the completed form should be forwarded to the Treasurer for processing.  The Treasurer will round the cheque down to the nearest legal currency (e.g. 5c or 10c)

 5.   A ‘cash’ cheque will be then be presented to cover the expenses incurred. These cheques may be cashed at the Lyell McEwin Hospital Cashier.

 

Volunteer Travel Reimbursement

Volunteers claiming reimbursement under Volunteer Policy # 8.2 must  complete a ‘LMHS Volunteer Travel Reimbursement Form’, which needs to be verified by the Area Manager and forwarded to the Executive Officer for payment.

 

Reconciliations

  1. The Executive Officer and Treasurer will be responsible for ensuring that all payments and receipts as noted on the monthly bank statement match the information posted onto the computer database.
  2. The Treasurer or Finance Officer and the Executive Officer will then be responsible for performing a monthly reconciliation of the accounts
  3. The EO will prepare a monthly finance report for the Treasurer to present at the monthly Board meeting.

 

Payment of Incidental Amounts

Where payments are made for incidentals (such as social club activities, promotional clothing etc) a receipt will be issued by the person making the sale.

Policy Developed 24th January 2001

Last Updated: May 2013

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