Policy Area:                Finance

Policy Title:                Accounts for payment 

Aims & Objectives:

To provide direction for society officers to undertake payment of society account and payroll.

To provide for appropriate and accountable payment processes.

Detail:

• All disbursements over five thousand rupees (5000 PKR) shall be by cheque, electronic funds transfer or by credit card.

• All invoices, purchase orders, goods received notes/notification packing notes and cart notes (if applicable), are to be forwarded to society administration without delay.

• Invoices and supporting documentation are to be referred to the relevant manager for allocation of account number and authorization of invoices for payment. Invoices are not to be processed unless a purchase order is attached and the receipt of the goods has been validated.
• Invoices will be processed for payment on a fortnightly basis by the Finance officer and verified by the Director.

• A cheque shall only be prepared when:

            (a) An invoice has been presented which describes the goods or services supplied.

            (b) The invoice has been authorized for payment by a reasonable officer.

            (c) The prices charged are fair and reasonable.

            (d) The calculations, additions and extensions are correct.

            (e) The invoice has not previously been paid.

• A payment voucher must be prepared. The payment voucher must contain the following information:

            (a) Date

            (b) Name of the payee

            (c) Signature of the relevant officer authorizing the payment

• A cheque shall be prepared from the information contained on the invoice or payment voucher, whichever is applicable, and under no circumstances may third party payment be made.

• The cheque, together with the supporting documentation, must be presented to the authorized cheque signatories for signing.

• All cheques are to be issued in sequential order and are to be marked as not negotiable.

• All cheques shall be signed any two authorized persons.

• The Director shall cause to be prepared a list of all payments made from society’s operating bank account at least each month. The list shall contain:

(a)    Payee

(b)   Cheque number or EFT reference number

(c)    Amount

(d)   Brief description or payment

EFT Payments:

• Electronic Funds Transfer will be used for the direct crediting of payroll to the bank accounts of employees and for the payment of some creditors.

• The Finance Officer will produce an EFT file that will be used for the processing of the EFT payment. The Finance Officer will sign a hard copy of the file as evidence that the totals have been checked against the payment preview generated by authority.