Financial Policies and Procedure

a. Receipt of fees and donations

1. Income received by the company is either in the form of School fees or donations.
2. These incomes are paid to the Company either by means of cash or cheque.
3. A receipt is issued for all income received by the Company
4. The receipt is handed, delivered or posted to the payee.
   b. Invoicing procedure
5. Invoicing is done by the bookkeeper who is employed on a part-time basis by the Company.
6. Invoicing is done on the Pastel Accounting software.
7. Invoicing is done from the particular month’s entries in the receipt book.
8. There is no need to print invoices and/or statements from the Pastel Accounting Software system.
9. Should any information be missing, this is then immediately communicated by book-keeper to the Company with the request that it be submitted at the earliest opportunity.
   c. Banking procedure
10. Our banking institution is Nedbank, Silverton Branch with whom we have a current account, and Investment Accounts.
11. Approximately 80% of clients pay us their fees due on a monthly basis by means of cash and a few clients pay by transferring the required fees directly into our current account.
12. Deposits are made into the account on a regular basis by means of a pre printed deposit book supplied to us by Nedbank.
13. Depositing/Banking is done by the Treasurer.
    d. Payment procedure/policy
14. Payment of accounts for the procurement of goods and services from suppliers are made either by cheques payment, electronic transfer of funds (EFT) or from petty cash withdrawals to the suppliers. Certain corporate suppliers debit our account directly by means of the ACB system. Any purchase above R1000.00 (not normally paid every month) must be discussed, motivated and agreed upon by the Board of Trustees. The decision must then be minuted and signed-of by all.
15. Cheque payments
    • Cheque requisition form is completed for each and every cheque transaction refer
    • Cheque and cheque counterfoil is written out – all cheques, except for cash cheques, must be crossed and marked “non negotiable” and “non-transferable”
    • All cheque payments require two signatures, from three signatories registered with the bank (Chairperson, Treasurer and one Board member).
16. Electronic Transfer of Funds (EFT)
    • Salary payments have recently been started on the EFT system.
    • A comprehensive list of beneficiaries will in due course be pre-loaded on the Nedbank internet banking account.
    • EFT payments are loaded by any one of the signatories and authorized by any one of the signatories except for the one who loaded the payment.
    • All transactions loaded and authorized can be tracked on the internet banking website in order to see who loaded and who authorized a specific transaction.
17. Petty cash payments
    • Petty cash is drawn by means of a cash cheque as and when required.
    • Petty cash is mainly used for payment of stationary, office supplies, postage, parts for minor maintenance and other minor miscellaneous expenses.
    • All petty cash transactions are recorded on the petty cash excel spreadsheet register.
    • The petty cash transaction register is handed to the bookkeeper at the end of each month to reconcile in the cash book.
    e. Accounting reconciliation
18. The Accounting reconciliation is done electronically on the Pastel Accounting Software.
19. The bookkeeper is responsible for inputting the following transactions on Pastel Accounting:
    • Customer’s invoicing – daily as per invoicing procedure
    • Customer’s remittances – taken off a weekly printed interim bank statement and reconciled accordingly.
    • All suppliers’ invoices – immediately upon receipt
    • All suppliers’ statements – immediately upon receipt
    • All salary related expenses – Pay slips prepared and transactions loaded on Pastel on 25th of each month.
    • All entries on the bank statement – weekly from printed interim bank statement.
    • VAT control account – immediately per individual transaction
    • All petty cash transactions – updated at month end only.
    • Journal entries – as and when required and done only if no other transaction is possible. Journal entries need to be signed off by the treasurer and is done by the external bookkeeper.
20. The invoices are updated on the system on the 4th working day after the end of each month.
21. The creditors/Suppliers close-off is normally 10 days after month end close off in case their statements are received late in the post.
22. The customer’s/debtors statements are printed on the 4 th working day after the end of each month.
23. A summary of the customer’s age analysis is handed to Chairperson for action of outstanding fees over 60 days for tabling at Board meetings
24. A summary of the suppliers’ statement is handed to MKH for payment on the second to last working day of each month for payment.
25. The cashbook is updated and reconciled once a week by the bookkeeper with the aid of the weekly interim print out of the bank statement.
26. Each individual cash book entry has a unique reference numbering in order to reference it back to its paperwork.

f. Financial reports

1. The following financial and management reports are available for any given period as required:
   • Income & Expenditure statement
   • Asset & liability statement
   • Cash flow analysis
   • Debtors age analysis
   • Supplier statements
   • Asset register
   g. Pay slips to staff
2. Pay slips are prepared on an excel spreadsheet with details of salary, overtime, leave pay, bonuses due and standard deductions, e.g. UIF etc.
3. The spreadsheet is handed to the bookkeeper who then prepares the pay slip on the Pastel Payroll software
4. The Pastel pay roll software will automatically calculate all income tax, SITE, UIF, etc due.
5. Salaries are paid to staff on the second to last working day of every month.
6. Pay slip are then given to the Principal to hand out to staff on the last working day of every month.
7. The UIF return is completed and submitted by the treasurer by the end of each month..

h. Vehicle purchasing procedure
Long-term assets are financed either through credit facilities available from ABSA (HP) or Debis (FML).
The following procedure must be followed when procuring new/used vehicles on the ABSA facility – (points 8 to 12 must also be done on the Debis (FML) facility):

1. Decide on make and model having regard to operational requirements & capability
2. Obtain quotes and select most economical quote taking into account the warranty plan etc.
3. Send order through to the selected dealership.
4. Receive invoice from dealership made out to ABSA and delivery to Yellow Machinery Transport CC
5. Company Natis registration details to the Dealer to register the vehicle.
6. Obtain proof of certificate of fitness from dealer.
7. Licensing (if not done by dealer) & Certificate of Fitness (COF) to be handled by Licensing service provider – Lee Lutchman.
8. Fit Skytrax unit and secondary tracking unit to the vehicle before delivery is taken.
9. Arrange comprehensive insurance, excess reducer cover and GIT insurance before the vehicle is delivered
10. Arrange driver training and driver induction on the main controls of the vehicle.
11. Take delivery of vehicle
12. Order Caltex/Chevron diesel & toll card.
13. Do sign writing on vehicle before it is put into operation.
14. Check if trailers needs to have an AV rating done.