nus presentation title 2001 · ofs issues blank official receipt books to student clubs for...
TRANSCRIPT
Agenda
1. Policies & Procedures for NUSSU & Clubs
2. Budget preparation & monitoring
3. Sharing of past audit observations
4. Expense claim procedures
5. Other Points to note
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Policies & Procedures Budget Audit observations Expense claims Points to note
Summary of Policies & Procedures for NUSSU
& Clubs
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Policies & Procedures Budget Audit observations Expense claims Points to note
Purpose:
Quick reference guide to ensure that all students
are familiar with these key policies and
procedures and to comply with them
Finance Forms (for NUSSU & Clubs)
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Policies & Procedures Budget Audit observations Expense claims Points to note
Updated finance forms can be downloaded from the following link: http://nus.edu.sg/finance/NUSStudentsUnion(NUSSU)AndClubs.html
Out-dated/old/modified versions of the forms should not be used
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Budget Preparation and Submission
Timeline for AY 14/15 Budget Budget Preparation tasks
Week 1 Sep 2014 OFS will send budget template to NUSSU & Clubs for
completion
Week 3 Sep 2014 Deadline for submission of completed budget templates to
OFS
Week 4 Sep 2014 Forward to OSA for Dean of Students’ approval
Week 1 Oct 2014 Upload approved budget in SAP
AY 14/15 Budget Period
1st Oct 2014 – 30th Sep 2015
Policies & Procedures Budget Audit observations Expense claims Points to note
Budget Preparation and Submission
1. Subscription fees / Income OFS will allocate the applicable annual subscription fees and entrance fees (for
NUSSU) to each club
Projected income (eg. Sale of tickets, Participation fees and Sponsorships) will be estimated reasonably
2. Budget preparation Budget template will be provided by OFS
Dean of Students’ approval is required for the proposed budget
Any deficit projected must be supplemented by a drawdown from the club’s accumulated reserves, to be approved by the Dean of Students
A standard template letter will be used for submission to the Dean of Students
At the end of each AY, any resulting (actual) surplus will be credited into the club’s accumulated reserves
Shortfall in individual WBS – should be first made good from other WBS within the same AY, to be approved by OSA officier
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Policies & Procedures Budget Audit observations Expense claims Points to note
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Budget monitoring and review Monthly statements will be distributed to the clubs’ Hon Fin for clubs’ monthly review
(first week of the following month)
The club is required to present a variance report (actuals vs budget) after the end of the AY for OSA’s review, using a template provided by OFS
Expenses cannot exceed the SAP posted budget amounts (based on the approved budget)
All expense claims should be done on a timely basis (within 7 working days)
Budget Monitoring
Meeting to review AY 14/15
To be scheduled in Oct 2014
Policies & Procedures Budget Audit observations Expense claims Points to note
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Budget Monitoring
Budget Reviews (using variance report at end of BP) Variance analysis with clear and adequate explanation(s) required for
budget reviews if the variance exceeds these limits:
NUSSU Constituent Clubs
>10% and >$10,000 >10% and >$1,000
Timeline Budget review tasks
AY 14/15
Week 2 Oct 2014 Send budget vs actual budget review templates to NUSSU & Clubs to
provide a summary of the budget period and explanations for highlighted
variance(s)
Week 3 Oct 2014 Deadline for submission of completed budget review templates to OFS,
which will be forwarded to OSA for review
Week 4 Oct 2014 Budget review meetings
Policies & Procedures Budget Audit observations Expense claims Points to note
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Points to note (budget)
1. Insufficient budget
Budget transfer
(between WBS within
budget period)
Budget Supplement Draw down from
Reserve
Obtain OSA officer
approval
Obtain Dean of Students
approval to request for
additional budget
Write to Dean of
Students to request for
use of reserve
Policies & Procedures Budget Audit observations Expense claims Points to note
Points to note (budget)
2. Unutilised Budget
• At the end of each AY, any unutilised budget in the WBS will not be carried forward
3. Handover from outgoing to incoming management committees
• Financial procedures and financial information for budget preparation and reviews
should be documented and included as part of the handover process
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Policies & Procedures Budget Audit observations Expense claims Points to note
Points from past audit observations
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Procurement
Purchase and installation of lockers •No competitive quotes and no approval for
waiver from competition were obtained
•Receipt of goods was not supported by duly
acknowledged delivery order
• Dinner & Dance – Meals
• Rental of musical equipment
•No competitive quotes and no approval for
waiver from competition were obtained
Printing of planners •Lowest quote not selected. Reason given was
that vendor was able to provide a sample before
the print job. However, no indication that lowest
bidder was unable to fulfill this requirement
•Receipt of goods was not supported by duly
acknowledged delivery order
Policies & Procedures Budget Audit observations Expense claims Points to note
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Procurement
Printing of jackets •Although 3 quotations were obtained, there were
not comparable as the vendors quoted based on
different quantities of 200, 350 & 1,000 pieces.
Vendor which quoted 1,000 pieces was selected
based on its lowest unit price
•Receipt of goods was not supported by duly
acknowledged delivery order
Points from past audit observations
Policies & Procedures Budget Audit observations Expense claims Points to note
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Cash collections
OFS issues blank official receipt books to student clubs for acknowledgement of monies collected.
Student clubs have to ensure that monies collected are properly accounted for (via issuance of
receipts or receipt control sheet / collection form) and duly banked-in and unused receipts returned to
OFS.
Student clubs have to confirm / account for all unused receipts on a monthly basis.
Cash collected and offset against expenses
Cash collected (eg from ticket sales) cannot be used for payment of expenses (eg for catering) even
though it is for the same event.
The cash collected should be banked in promptly and invoices submitted to OFS-Shared Financial
Services Centre (SFSC) for payment of expenses (must be handled separately as 2 distinct
transactions).
Points from past audit observations
Policies & Procedures Budget Audit observations Expense claims Points to note
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Proper Approving and Signing Authority
Approving authority for procurement and for payments are distinct and separate
All signing authority for NUSSU & Clubs resides with OSA
Points from past audit observations
Policies & Procedures Budget Audit observations Expense claims Points to note
Expense Claims – what to look out for
Invoice billed to NUSOriginal invoice billed to NUS/Clubs. Scanned copy of the original invoices is not acceptable
Non-original invoice has to be “certified true copy” from the vendor
Evidence of goods already delivered and services rendered
Delivery order (DO) should be attached
“Goods/services received by” box signed by person responsible for receipt
Quantity stated in the invoice should be equal / not exceed the amount stated in the DO
Unit price stated in the invoice should be equal or less than the written quotation.
Description of the goods should be a match with the DO
The invoice is arithmetically correct
Payment of cash advances should be avoided
Timely submission
Correct account codes of GLs & WBS
Invoice must be verified / signed in the “Invoice verified by” box after verifying that the invoice is in order
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Policies & Procedures Budget Audit observations Expense claims Points to note
Expense Claims – what to look out for
Invoice not billed to NUS / Official receipts Original invoice (or certified true copy) with paid stamp or Official Receipts must be produced for reimbursements
Proper declaration / authorisation of payment to the named payee (eg invoice billed to another student who is not the named payee)
“Goods/services received by” box signed by person responsible for receipt
Invoice must be verified / signed in the “Invoice verified by” box after verifying that the invoice is in order
Proper declaration if receipts are not available/lost
Timely submission
Correct account coding of GLs & WBS
Proper supporting documentation / submission on the award of cash prizes; acknowledgement of receipt of cash prizes from award winners
Payee name / student matric number must stated in full and accurately
Any corrections made on the reimbursement forms must be properly done and endorsed
Claim amount must match cash paid amount (check for rounding errors)
A partial claim must be explicitly stated (if there is a difference between claim form and receipt)
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Policies & Procedures Budget Audit observations Expense claims Points to note
Common Errors made in students’ claims
1. Wrong amount input on Reimbursement form
2. Contract Amount Exceeded
3. Bank account details not updated in ISIS
4. Rounding up/down of amount on Reimbursement forms
5. Split Purchases
6. Invalid WBS
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Policies & Procedures Budget Audit observations Expense claims Points to note
Other points to note
1. Accruals
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Accruals
Required at end of:
-Academic Year (AY)
-Goods and services incurred but pending receipt of
invoices from vendor
-Goods and services committed and yet to be received
Procedure -Submit list of accruals to OFS before end of AY*
-Within 1 month after the end of AY, submit invoices that
have been accrued for payment to OFS
-If 1 month timeline is exceeded, OFS to be advised if
accrual is still required
*Timeline for
submission
AY 14/15 – To be advised later
Policies & Procedures Budget Audit observations Expense claims Points to note
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Other points to note
2. Prepayments Advance or installment payments for goods/services not received yet at the
time of payment Similar to the procedure for payment of invoices, prepayments to be
submitted to SFSC-Accounts payable for posting to prepayment account code
Eg Deposit paid in advance in order to secure an event venue (NUSSU and Clubs to indicate on the invoice that it is a prepayment)
Upon receipt of goods/ services, prepayment amount will then be reversed from the prepayment account and into the relevant expense account code(s).
Prepayments should be few as NUSSU & Clubs should not normally pay in advance for goods/services not received yet
Policies & Procedures Budget Audit observations Expense claims Points to note
Other points to note
3. Making payment for Inter-dept billing vs external party (3rd party) billing
An inter-department sale is where goods are sold / services are rendered by one NUS dept to another NUS dept
NUSSU & Clubs are part of NUS departments
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Inter-dept External party
Procedure Invoice submitted for settlement through journal
entries – payment should not be made directly
to billing party
Invoice submitted for payment to external
vendor
GST GST is not applicable GST applies
Examples Accommodation charges for camps, billed by
Halls/Residences
Rental charges on university premises
Catering charges, billed by external caterer
4. Charging of GST for all sales (including cash sales)
NUS is GST registered, thus any billing to external parties is subjected to GST
Any sales (including cash sales) is subjected to GST
Policies & Procedures Budget Audit observations Expense claims Points to note
Sponsorships Donations
Contributions with tangible benefits conferred
(eg. Display of banner, Advertising slot in event
materials)
Monetary contributions with no benefits conferred
Still considered to be outright donations even if
there is voluntary acknowledgement (eg. In
newsletter)
Tax donation receipts to be issued
Subject to output GST Outside scope of GST
Recognized under Income WBS Recognized under Donation WBS
Income WBS is not carried forward to next BP Donations WBS is carried forward to next BP
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Other points to note
5. Sponsorships vs Donations
Policies & Procedures Budget Audit observations Expense claims Points to note
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6. Collections of cash and subsequent banking to OFS
All cheque/cash collections are to be deposited at the cashier office at the
earlier of the following:
a) Total cash collections of SGD1,000 and/or cheque collections of SGD15,000
b) One week from the date of collection.
Each club is designated an official NUS DBS Bank account
Members may consult their Club President / Finance Secretary on the bank
account details and any funds transferred to the bank account should be
communicated with the Club President / Finance Secretary
These DBS bank accounts will function purely as “collection boxes” ie they
can only accept incoming funds
Other points to note
Policies & Procedures Budget Audit observations Expense claims Points to note
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Other points to note
7. Use of accumulated surplus for Investment(to be submitted to OFS one month before subscription date)
Short Term Investment Portfolio Long Term Investment Portfolio
Lock-up period
(new
subscription)6 months 24 months
Notice period for
withdrawal90 days
Minimum
subscriptionIn lots of $50,000
Subscription &
Redemption
dates
First business day of each calendar quarter (i.e. first business day of Jan, Apr, Jul, Oct)
Policies & Procedures Budget Audit observations Expense claims Points to note
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8. Useful Links
Other points to note
AY 14/15
Budget Oct 2014 Complete Budget review template (for period
ended AY13/14)
Budget Oct - Nov 2014 Budget review meetings
Policies & Procedures Budget Audit observations Expense claims Points to note
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9. Useful Links
You may find more detailed information on the various Finance Standard
Operating Procedures and FAQ at
http://nus.edu.sg/finance/students.html
Other points to note
Policies & Procedures Budget Audit observations Expense claims Points to note