organisational policies and procedures what is the purpose of policies and procedures and who does...
TRANSCRIPT
Organisational policies and procedures
What is the purpose of policies and procedures and who does it effect?
Policies and procedures
• Influences the working practise of a business• Used for technical matters – Accounting tasks carried out – Processing information
• Workplace behaviour – Health & safety– Security of information and staff – Timekeeping – Dress code & customer service– Recycling & green issues
Policies & procedures
• A Policy is a statement, recording how the organisation wants and expects activities to be carried out.
• It is a STRONG guideline for the actions, decisions and resolution of problems within the organisation
• A Procedure is a standard sequence of steps or operations to perform an activity
• Can be both formal or informal
The importance of policies and procedures
• Policies & procedures can be seen as a nuisance but they are set up to aid and support a business, they:
• Support efficiency – Policies & procedures already set up help the
performance of routine activities without having to re-invent them
• Support Compliance – Can be requirement of the law and regulations– Ensure a standard of practise
Continuation • Protect People– Protect employees in work – Visitors to the workplace
• Protect finance, property, information and assets of the organisation– Control procedures reduce the risk of theft– Minimise opportunities of fraud and losses
mismanagement of resources
• Procedures can incorporate rules, therefore:• Policy is the way it should be done!• Procedure is the way it is done! and the way it
must be done• Rules could be:– Maintaining confidentiality of information– Keeping fire doors clear and closed – Seeking authorisation for financial documents
Office management policies & procedures
• To ensure efficiency an organisation should have established documented policies and procedures outlining all aspects
• Must be conveyed to all staff members and covers: • Code of conduct covering issues such as:
– Use of internet, emails, mobile phones, personal calls, drugs & alcohol
– Appearance of work space, personal effects, tidiness
• Health & safety• Confidentiality • Green Issues • Departmental deadlines • Authorisation procedures
Departmental deadlines & authorisation
• Payroll– timesheets submitted by set date– Payroll completed – Monies to employees – Deductions to governmental departments – Other deductions to required parties
• Financial accounting – Internal deadlines for gathering and processing
documents and information
Financial accounting • Internal deadlines for financial reports and
statements – • Monthly • Annual
• External deadlines for preparation of financial statements
• Lodgement of statutory reports – year-end reports
Authorisation • Many tasks require authorisation to reduce risk of
fraud and mismanagement of resources• An authorisation is a point in which confirmation of
permission has been placed allowing the task to proceed
• Payroll – All tasks must be authorised from pay rates, to hours, to overtime– Salary increases must be authorised by senior management – Overtime authorised by line manager or specific authorised
signatories – Payroll will have list of the persons allowed to authorise changes – This has to be checked before allowing the task to be processed.
• If not correctly authorised bring to the attention of your line manager /supervisor
• Other tasks • Issuing of purchase order – authorised by line manager • Preparation of cheques and other payments – authorised by
purchasing department/ warehouse/ project manager or departmental manager
• Processing of expense claims – completed by recipient, authorised by their line manager or authorised signatories
• Processing of petty cash – completed by employee, signed by line manager, dependent on value may have to be authorised by specific signatories – Signed by petty cash clerk on reimbursement
Health & safety • Based on the Health & Safety at Work Act 1974• Prevention of accidents & ill health in the
workplace• All organisation with 5 and more employees must
have a written H & S policy• It is continually updated and reported to
employees • Employees are asked to sign document stating
they have read policy and are willing to take responsibility of H & S issues
H & S • Organisations can have occupational H & S
policies such as: – Duty of all employees and managers to ensure a
safe environment– The use of safety measures and equipment – Non-smoking– Use of drugs when operating in the working
environment – Staff and regular evacuation drills – Reporting the risk of and accidents to appropriate
offical
H & S • Should be detailed procedures for H & S
operations: – Use of fire alarms and equipment – Evacuation of premises – Labelling, handling and storage of dangerous
chemicals in the workplace– Safe use and maintenance of electrical equipment
& tools – Identifying and reporting possible hazards – Recording of accidents
Regulations for Accounting records • For limited companies the law (Companies
Act)requires : – Records of entries made – monies in and monies out
with a description of each entry– A record of the assets and the liabilities – Records of inventory held – Records must include financial documents:
• Purchase order, Invoices, Credit notes, paying-in slips, cheque counterfoils, bank statements and instructions to bank
• Daybooks, cash book, petty cash book and ledger accounts (full)
– Accounts must be: accurate, complete and up-to-date
Continuation • Other organisations the same applies plus • Accessible – Information can be extracted for the owner and
managers
Regulation for payroll records • Payroll records are sensitive, they must be
maintained: • Accurately – Contain pay details
• Securely – Avoids risk of fraud
• Confidentially – Content is of sensitive nature
Continuation • Most records are computerised so regulate the access
of records. • Limited staff being able to access records • Password to access system• Records must include: – Personal details, pay number & tax codes– Wages sheets & deductions working sheets – Wages calculations – Taxation details, NI & PAYE– Tax forms – P45, P60– Details of benefits paid to employee – fuel allowance & other
expenses
Regulations for VAT • VAT is managed by HMRC as an indirect tax
and most regulations are the same as the financial records
• Records of indirect taxes charged must be recorded to HMRC in the form of a VAT return.
• Is usually transferred electronically but values must be checked before submission
• Usually line manager or accountants responsibility
Retention of documents
• Financial documents held for six years plus current year
• Employee records held for six years • Payroll tax details held three years plus
current year – most are kept for the six years as with the
employee and financial retention• Accident report book - permanently
Security • Policies and procedures are designed to
protect: – Physical property (Assets) – Employees & visitors– Information
• Measures can range from simple rules to more complex rules – Locking of windows, doors at end of day, filing
cabinets and cash boxes
Continuation • Controlling access to areas within a building – Security doors – Sign-in procedures – Identify badges – Security cards
• Access to computer system – Passwords – Authorisation codes – Timeouts / logins
• Training staff for situations, reporting incidents
Confidentiality • In an accounting role personnel will come across a
variety of information that is confidential by being marked: Confidential, private, limited access or authorised
personnel only• Some information is confidential by law, policy or
code of practise: – Details of customers and suppliers within a business must
not be disclosed outside of the business – Personal data about employees– Financial information which if disclosed could be harmful
to the organisation
Secure storage of data and information • All information must be protected from:
Damage – accidental/ malicious Loss & theft Sabotage Interference/ prying eyes
• Important to keep all data and information secure by: – Non removal of data and equipment from premises – Backing up & storage of data in case of system failure, data corruption
or damage– Use of anti-virus software & firewalls to prevent loss or theft– Passwords and access rights – no divulging passwords, security codes
or keys – Authorised access to paper based files – designated personnel and
signature
Working hours & time keeping • Legislation set by Working Times Regulation • Deals with: – Working hours –maximum of 48 hours a week– Employees can opt out – Certain organisations have their own regulations
for the working week (public sector employees)• Other issues are : – Office opening hours– Breaks and entitlements – Time keeping
Continuation • Could be detailed procedures to help the
organisation work more efficiently: – Clocking in and out – Preparation of timesheets – Flexi-time schemes
Planning for adequate staffingFraud prevention – overstating of hours workedEffective working relations Individual well-being, work-life-balance
encouraging increased production Work planning and scheduling
Green issues • Policies to reduce waste and costs • Have a champion that deals with all the issues • Making employees more aware of issues can
help encourage further business • Issues: – Emails instead of memos– Lighting & heating – Transportation– Recycling – Printing of documents only as required