FINANCIAL AND ACCOUNTING POLICY/PROCEDURE

  1. Receipt of fees, subsidies and donations

1.1 Income received by the Organisation is either in the form of a monthly subsidy from the Gauteng Department of Health, monthly fee payment from beneficiaries and/or donations in cash or kind from the community, religious institutions, service organisation and the business sector.

1.2 A professional fundraiser is employed and is paid a commission on any financial benefits received.

1.3 These incomes are paid to the Organisation either by means of electronic bank transfers, cash or cheque payments.

1.4 A receipt is issued for all income received by the Organisation and the receipt is either posted or hand delivered to the payee.

2. Invoicing procedure

2.1 Invoicing when necessary is done on the Accounting Program administered by our Accountants, Moore Pretoria.

2.2 Moore Pretoria will normally create invoices from relevant entries in the receipt book for a particular month that they are working on when capturing all the transactions for that month on the accounting software.

3. Banking procedure

3.1 Our banking institutions are as follows;

Nedbank Silverton – two current account and two investment account

FNB Menlyn – one investment account

FNB Hatfield – two investment account.

3.2 Beneficiaries pay their fees on a monthly basis either my means of cash, electronic transfer or debit order deduction into the Nedbank current account. A receipt is issued on request.

3.3 Cash or cheque deposits/receipts are made into the Nedbank current accounts by means of a pre-printed deposit book supplied by Nedbank.

3.4 All banking transactions are done by the CEO.

4. Payment procedure

4.1 Payments of account for the procurement of goods and services from suppliers are made either by cheque payment, from petty cash provisions, debit order deductions or by means of EFT. Any purchase above R1000.00 not normally paid every month must be approved or ratified by the Board f Trustees at the next meeting.

4.2 Cheque Payments

4.2.1 A cheque requisition form is completed for each and every transaction

4.2.2 Cheque and cheque counterfoil is written out for all cheques except for cash cheques which must be crossed and marked “non negotiable” and “non transferable”

4.2.3 All cheue payments require two signatures from the three signatories registered with Nedbank. These are: CEO. Honorary Treasurer and one Executive member.

4.3 Electronic Transfer of Funds (EFT)

4.3.1 Stipends payments are made through the EFT syste.

4.3.2 A comprehensive list of beneficiaries are pre-loaded on the Nedbank Internet banking account.

4.3.3 Petty csh is mainly used for the payment of stationary, office supplies, postage, parts for minor maintenance and other miscellaneous expenses.

4.3.4 All petty cash transactions are recorded in the petty cash register.

4.3.3 The petty cash book is handed to our book-keeper at the end of every month in order to reconcile.

4.4 Accounting Reconciliations

4.3.1 The accounting reconciliation is done electronically on an accounting software system by Moore Pretoria as follows:

4.3.1.1 Customer’s invoicing – daily as per invoicing procedure

4.3.1.2 Customer’s remittances – taken on a weekly basis from the bank statement and reconciled accordingly.

4.3.1.3 Supplier’s invoices – immediately upon receipt.

4.3.1.4 Supplier’s statements – immediately upon receipt.

4.3.1.5 Stipends – Pay slips are prepared on the FNB software program and payment to staff member are all done via EFT payments. by the 30th of each month These transactions are then loaded by Moore Pretoria on the accounting software program each month.

4.3.1.6 All other transaction are taken from the bank statements and loaed accordingly by Moore Pretoria on the accounting software program.

4.3.1.7 VAT Control account – this is handled by Moore Pretoria as ans when it is required to be submitted to SARS.

4.3.1.8 Petty cash transactions – updated at month end

4.3.1.9 Journal entries – as and when required and done only if no other transaction is possible. These are also processed by Moore Pretoria and must be signed off by the CEO/Honorary Treasurer.

4.3.2 The invoices are updated on the system on the 4th working day after the end of each month.

4.3.3 The creditors/suppliers close-off is normally 0 days after month-end close off in case their statements are received late if sent by post.

4.3.4 The customers/debtors statements are printed on the 4th working day after the end of ach month.

4.3.5 A summary of beneficiaries analysis is handed to the CEO/Manager for action o outstanding fees.

4.3.6 The cash book is updated and reconciled once a week by Moore Pretoria with the aid of the weekly interim print-out of the bank statement.

4.3.7 Each individual cash book entry has a unique reference numbering in order to reference it back to it’s paperwork.

4.5 Financial Reports

4.5.1 The following financial and management reports are available for any given period as required:

4.5.1.1 Income and expenditure statement

4.5.1.2 Asset and liability statement

4.5.1.3 Cash flow analysis

4.5.1.4 Debtors analysis

4.5.1.5 Suppliers statements

4.5.1.6 Asset register

4.6 Pay slips to staff

4.6.1 Pay slips are prepared on a payroll software by FNB and PAYE, UIF and SDL and other deductions are automatically calculated

4.6.2 Stipend are then paid by means of EFT as close as possible to month end each month.

4.6.3 Pay slips is given to the Manager to distribute to the relevant staff member.

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