The Ace

FINANCE POLICY AND PROCEDURE

Table of Contents
Finance Authorisation Policy........................................................................................................ 2
Bank Account Policy..................................................................................................................... 3
Petty Cash Policy......................................................................................................................... 4
Use of Business Credit Card Policy..............................................................................................5
Accounts Payable Policy.............................................................................................................. 6
Accounts Recievable Policy......................................................................................................... 6
Cash Reciept Policy..................................................................................................................... 7
Travel Expense Policy.................................................................................................................. 7
Month and Year end cut offs Policy..............................................................................................8

Introduction
The Ace Financial Policy and Procedure provide the policies and procedures for finance
transactions within the business which must be followed by all staff. It also provides guidelines The
Ace will use to administer these policies, with the correct procedure to follow.
The Ace will keep all financial policies current and relevant. From time to time it will be necessary
to modify and amend some sections of the policies and procedures, or to add new procedures.
Any suggestions, recommendations or feedback on the policies and procedures are welcome.
These policies and procedures apply to all employees.

The Ace: Finance Policy and Procedure

Finance Authorisation Policy

Policy Number: 1
Purpose of the Policy
All finance transactions as noted in this policy are to be authorised by the noted authorised person
prior to the transaction being undertaken.
This policy is to be read in conjunction with other specific finance policies where relevant.

Procedures
Prior to any of the following finance transactions being undertaken, the authorising person noted
must authorise the transaction.
Where additional policy is noted, this policy must also be adhered to when undertaking the finance
transaction.
Finance Transaction

Authorised Person

Additional Policy

Bank Accounts

Accounts Manager

<insert policy name, or

number here>

Issuing Petty Cash

Cash Manager

<insert policy name, or

number here>

Business Credit Card

CFO

<insert policy name, or

number here>

Purchasing Stock

<insert relevant job title here>

<insert policy name, or

number here>

Purchasing Assets/
Equipment

<insert relevant job title here>

<insert policy name, or

number here>

Debt Collection

Cash Manager

<insert policy name, or

number here>

Payment of Invoices

<insert relevant job title here>

<insert policy name, or

number here>

<insert other finance

transactions here>

<insert relevant job title here>

<insert policy name, or

number here>

Bank Account Policy

Policy Number: 2
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The Ace: Finance Policy and Procedure

Purpose of the Policy

This policy sets out the requirements for use of bank accounts, including opening, closing
authorisation, variations to terms and conditions, reconciliation of bank accounts and bank account
transactions.

Procedures
Opening Bank Accounts
Any new bank accounts to be opened for the business must have the authorisation of CFO.
For each new bank account opened, the financial system must be updated.

Bank Account Authorisations

For money withdrawn from any bank account, whether by cheque, EFT or other online payment
method, there must be two persons authorising for each payment.
The authorised persons for bank account payments are:
CFO
CEO
Each payment made must be supported by invoice, receipt or other appropriate documentation
and the authorisations must be attached to this documentation prior to payment.

Variations to Bank Account Terms and Conditions

Any variations to banking arrangements can be made or varied by CFO.
CFO is responsible for updating the financial system and/or bank account register with the new
information.

Closing Bank Accounts

Where it is decided that a bank account is no longer necessary, CFO will authorise the closure of
the bank account.
The Accounts Manager will then be required to complete the following:

ensure all transactions with respect to the account (including cheques drawn) have been
completed;

lodge with the bank a letter, signed by CFO authorised signatories advising of the closure
of the account;

meet the bank's requirements with respect to account closure; and

Update the financial system and bank account register.

Petty Cash Policy

Policy Number: 3
Purpose of the Policy
Petty cash should be used to pay for small business expenses up to 200 where payments through
accounts payable or credit card are not justified or appropriate
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The Ace: Finance Policy and Procedure

Procedures
Issuing Petty Cash
Petty cash vouchers must be completed before any cash is taken from the petty cash float.
Only up to 200 can be disbursed at any one time.
All petty cash vouchers issued must be approved by CFO.
Once the petty cash is spent, a receipt or invoice should be attached to the voucher and returned
to petty cash with any balance of money unspent
All completed vouchers must have the following details included:

Issue date of voucher;

Name of person issued the voucher;
Amount of monies disbursed;
Details of expense;
Invoice or receipt; and
Signature of approval person,

Reconciling Petty Cash

Petty cash float is to be reconciled in two weeks. This is the responsibility of Cash Manager.
All petty cash expenditure must be entered into the financial system once the petty cash has been
reconciled.
The balance of money and vouchers must equal the petty cash float amount before reimbursement
can be made.
Reimbursement of petty cash will be authorised by CFO.

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The Ace: Finance Policy and Procedure

Use of Business Credit Card Policy

Policy Number: 4
Purpose of the Policy
This policy provides guidelines for the issue and use of business credit cards.

Procedures
An employee will only be issued a credit card once the Credit Card Authorisation Form has been
completed.
The business credit card can only be used for travel, authorised entertainment and purchases of
high value expenses or equipment up to the value of <insert amount here, recommended $ 500
>
No cash advances are to be taken using the business credit card unless authorised by CFO.
Where a business credit card is lost or stolen, then the owner of this card is to notify <insert
relevant job title here> who is responsible for notifying the issuing agency and ensuring the card
is cancelled.
The use of the business credit card is not to be used for personal expenses.
All holders of business credit cards are required to reconcile the monthly credit card statement to
the expense form, attach all receipts for payments made on the credit card and have the expense
statement authorised by <insert relevant job title here>
Upon completion and authorisation of the monthly expense statement, these documents are to be
forwarded to <insert relevant job title here> for payment of the credit card statement.
All business credit cards are to be returned to the business when the person is requested to by
<insert relevant job title here> or where they are no longer an employee of the business.

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The Ace: Finance Policy and Procedure

Accounts Payable Policy

Policy Number: 5
Purpose of the Policy
To make payments for all the accounts payable which will reduce company Liabilities.

Procedures
All departments are responsible for establishing and approving their invoices for payment, while
the Business Office disburses payments.

The department ordering the service or product is responsible for making invoices.
Accounts Payable must be paid within two weeks.
The individual ordering the item is responsible for validating the
invoice accuracy as the ordered items are received.
The individual approving invoices has implied approval for 500. Invoice amounts greater
than the implied approval amount require higher level approvals. This secondary approval
security feature is not fixed. A department may tighten or loosen this security feature based
on its own needs. The department is responsible for understanding and applying this range
of approval options.

Accounts Receivable policy

Policy Number: 6
Purpose of the Policy
This policy provides guidelines for the amounts that company have to receive or collect from
different people or businesses.

Procedures

The Business Office has the responsibility for collecting on accounts receivable.
The bad debt will be charged back to the department which established the accounts
receivable.
Accounts receivable is closely linked to cash receipts; refer to Cash Receipts for additional
information.
Accounts receivable must be collected within 2 week.

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The Ace: Finance Policy and Procedure

Cash Receipt Policy

Policy Number: 7
Purpose of the Policy
This policy is to make sure the timely collection of cash receipts. It also provides the criteria for the
processing of cash receipts.

Procedures
The Business Office is responsible for the receipt and timely collection of money owed to the
Company. The following criteria should be adhered to when processing cash receipts.

Cash receipts (including cash and checks) must be deposited within 24 hours.
The overnight retention of receipts within the department is strongly discouraged. Timely
and accurate deposits reduce the risk of losing or misplacing receipts, maximize interest
earnings and create a clear audit trail.
Petty cash funds are generally discouraged. In their place, procurement cards are
encouraged and may be obtained by contacting the Business Office. Should petty cash
funds be required, they may be requested from the Director of Business Affairs.
Permanent or temporary change funds may be requested from the Business Office.

Tr a v e l a n d M e a l E x p e n s e P o l i c y
Policy Number: 8
Purpose of the Policy
The purpose of this policy is address the expense incurred by the purchasing, marketing or other
departments on official work.

Procedures.
Travel expenses will be reimbursed provided the trip is approved in advance by CEO.
Transportation expenses incurred while travelling on official business may be reimbursed. The
transportation expense will only be reimbursed if the receipts of the expense are provided.
Personal expenses, such as private vehicle repair and maintenance, may not. The following
expenses may be reimbursed or paid directly:

Private-vehicle mileage allowance

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The Ace: Finance Policy and Procedure

Common carrier fare

Necessary fees for a taxi, shuttle service, or rental vehicle
Parking and garage fees
Meal expense will not be provided.

M o n t h a n d Ye a r E n d C u t o f f s P o l i c y
Policy Number: 9
Purpose of the policy
The purpose of his policy is to make sure the timely processing of transactions and to facilitate the
timely preparation and distribution of financial and management reports.

Procedures
Purchases
May 15 is the last day to prepare purchase orders for the current year. If the goods
bought are to be received by June 30, the end of the fiscal year, a current year
Purchase Order must be used. If goods are to be received July 1 or after, and it is
after June 15, use the next fiscal year on the Purchase Order.
If the goods ordered on purchase orders cut on current fiscal year funds, are not
received by the end of the fiscal year, the purchase order needs to be closed out
and a new purchase order generated on the next fiscal years funds.

Payment Transactions
Direct Pay requests and invoices related to purchase orders will be included
in the previous month's balances if they are received and processed by the
fifth of the next month.
Cash Receipts
Cash receipts should be in the Cashiers Office by noon on the last day of the
month to ensure that they will be included in the current month financial
activity.
Journal Entries
Journal entries or requests for journal entries which adjust balances for the
previous month must be received in the Business Office by the 5th day of
the month if they are to be included in the previous month's processing.
Journal entries or requests for journal entries adjusting balances at month
end must be received in the Business Office by the 5th of next month.

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