Financial Management Solutions
Due consideration shall be given to all financial transactions to ensure economy and efficiency and those should be in the interest of the organization. Marketing is the process of planning and executing the pricing, promotion and distribution the ideas, goods and services to create exchanges that satisfy individual and organizational objectives.. fff2.1 Custody of resources
Marketing is the process by which company creates value for customer and builds strong customer relationship in order to capture value from customer in return. The Manager Finance shall be the Chief Custodian of Auto Group financial resources. The Finance Department shall ensure the Financial Control of Auto Group fund and advice the Director Finance on financial management as and when required.
Accept as a professional accountant challenges, be sincere, honest and hard working and as such take the overall responsibility of finance, accounts, auditing, tax & VAT as well as administrative management for development and advancementThe Board of Directors may delegate the power to the senior staff member(s) in respect of custody of resources to facilitate the efficient and effective “Management of Auto Group” resources. Any delegation of authority to other staff member must be done through a written notification.
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| What Is Textile Financial Management System and Control |
2.3 Bank account
Insurance Company, Leasing Company, Textile & Garments sector and NGO’s whether National and Multinational. Auto Group shall maintain bank accounts with scheduled banks for efficient and effective management of most liquid financial resources. As a general rule, any payment in excess of Taka 500,000 shall be made by an account payee cheque.
2.3.1 Bank account or accounts shall be maintained for receiving sales of the company and this account is to be called 'Collection Account'. Fund received in this account shall only be transferred to 'General Account' for operational activities of the company.
2.3.2 Separate bank accounts shall also be maintained for specific requirements.
2.3.2.1 In the areas of accounting, finance and auditing, consultancy, company affairs, Tax, VAT and secretarial work assignments of various reputed organizations which I achieved during the period of my article-ship and service with the leading firm of chartered accountants.
This account is to be operated for payment of honorarium, salary and allowances, festival bonus, etc. Office rent, electricity, water bill, gas bill, telephone, fax, internet, security bill are also be paid from this accounts.
2.3.2.2 Vendors account:
Supplier's bill, contactors bill and other bills of service provider will be settled from this account.
2.4 Opening and closing of bank account
The Board of Directors is empowered to authorize for opening and closing of any bank account in the name of Auto Group. The Board of Directors shall convey its consent for opening and closing of a bank account in a Board resolution.
2.5 Bank signatories
2.5.1. Auto Group in a Board resolution shall nominate the following persons as bank signatories to operate all the bank accounts of the company with no limit excepting the specialized bank accounts.
Core/Major Components
- Accounting procedure and financial management.
- Knowledge of finance and administrative procedures
- Conducting training on financial and administrative manual
- Preparation of financial and administrative manual
- Organize team work/group work and ability to work in team environment
- Budget preparation for single year multi year
- Skills in planning and organizing different types of assignments
- Skills in preparing and compiling different routine report
- Financial record keeping and monthly report preparation
- Preparation of proposal for various audit assignment
- Delegate all junior staff for a particular assignment
- Communicate and in every matter with the respective client
- Prepare risk assessment and audit planning memorandum
- Prepare daily job status report via e-mail
- Reviewing and regenerating the various report
Each cheque/payment instruction shall require at least 2 (two) signatures from the above bank signatories.
Auto Group in a Board resolution shall authorize the following persons as the panel of bank signatories to operate the specialized bank accounts of the company with a limit of Tk. 5,000,000/- (Five lac) only in each case.
Each cheque/payment instruction shall require 2 (two) signatures, any one from panel (A) and any one from panel (B).
Before signing any cheque, signatories must ensure that the payment has been approved, verified and authorised properly.
2.5.3 Custody of cheque / chequebooks
All cheques and chequebooks shall be kept under the safe custody (vault) of Finance Department of Auto Group.
2.5.4 Reconciliation of bank accounts
Auto Group Finance Department, on monthly basis shall reconcile all bank accounts before closing the monthly accounts with the bank statement provided by the bank. A person independent of preparing the reconciliation should approve such reconciliation.
2.6 Main cash management
On the basis of requirements and after taking into account the anticipated utilization of cash in the company, the maximum cash that can be held in the Vault of the company must not exceed Tk. 255, 00,000 (25 lac) only at the end of the day.
2.6.1 All cash expenses must be approved before the payment is made.
2.6.2 The custodian must ensure that the cash is used only for authorized purposes. He/she will be held personally liable for the proper management and safe-keeping of the fund.
2.6.3 The custodian must ensure that personal funds are not mixed with main cash in vault.
2.6.4 The custodian shall prepare a statement of daily cash position on a regular basis as per format.
2.6.5 Cash vouchers and a summary of cash statement shall be maintained by the cash custodian and be transferred to the finance dept. at the end of the day with computerized outputs.
2.6.6 Cash Counting
Spot-checking and counting of cash may be conducted from time to time by Managing Director/Director Finance or by the person designated for this purpose.
2.6.7 Difference in Cash
The cash custodian shall personally be liable for any differences revealed at the time of spot checking or cash counting between balances as per cash account and physical existence of cash
2.6.7 Cash Certificate
The designated person and the cash custodian shall sign jointly a Cash Certificate after checking and counting of cash.
2.6.8 Cash Payments
A cash payment voucher should be prepared to record all disbursements from the cash account. This must be signed by the payee upon receipt of the money; the cash payment voucher should be numbered consecutively.
2.7 Petty cash management
A petty imprest system is to be operated mainly by different cost centers as below to cover day to day petty expenses2.7.1 The amount of petty cash/float is fixed; when expenses have been made the same amount shall be reimbursed restoring the float to its original level.
2.7.2 In case of emergency, this fund may be utilized for authorized expenses by the concerned Head of Department (HOD).
2.8 Internal control
2.8.1 The Managing Director may upon consultation with Director Finance from time to time, establish financial procedures in order to ensure effective financial administration, good governance and accountability in the management of Auto Group financial resources. Such rules and procedures must be circulated in writing.
2.8.2 All payments are to be made on the basis of supporting vouchers and other documents to ensure that:
2.8.2.1 The purchased goods and services are in accordance with the approved budget and/or approved by the appropriate authority.
2.8.2.2 Proper requisition has been raised for procurement of goods and services;
2.8.2.3 Approved purchase orders have been issued upon satisfactory justification for supply of goods or services;
2.8.2.4 Goods or services have been received as per specification requirement;
2.8.2.5 Invoice, memo, bill and other necessary supporting vouchers and documents are enclosed;
2.8.2.6 The terms and conditions of the purchase order have been complied with;
2.8.2.7 Establish Segregation of Duties (SOD) in such a way that ensures checking of one employee's work by another employee, as matter of routine exercise;
2.8.2.8 All documents used for financial transactions of Auto fund must be pre-numbered and/or programmed;
2.8.2.9 The Finance Department shall designate the officers who must receive money, incur, obligations or commitments, make payments on behalf of Auto Group.
2.8.2.10 Job Description shall include the Financial Management Solutions of at individual staff member.
2.9 Advance adjustment request
Advance payments shall be discouraged generally. However, on emergency cases or in the circumstances where vendors or service providers do not provide credit facilities and in case of travel advance may be allowed. The staff member who received advance payment shall, submit an advance adjustment request with sufficient and appropriate evidences supporting the expenditure and with the approval from appropriate authority within seven days (7) of advance received. In case of travel advance, it shall be adjusted within three days from the return of travel.
2.10 Approval of expenditure
2.10.1 Approval is an acceptance of a request. It signifies the acceptance of a payment request, advance request or an advance adjustment request.
2.10.2 Expenditures in accordance with weekly/monthly budget shall be approved by the appropriate authority prior to the actual expenditure is made.
2.10.3 Expenditure in the line of approved budget shall be prepared and be approved in the following procedures.
2.10.4 In reference to Board decision the following officials shall be designated officer for approval of expenditures subject to their limit' mentioned below.
2.10.5 Functions of approving officer
Before approving any expenditure the approving officer shall ensure that:
(i) Expenditures are incurred in accordance with existing policy, regulations and rules,
(ii) Expenditures are properly authorized and in line with the purpose for which budget is made,
(iii) All transactions and events have been recorded in a complete manner,
(iv) Amounts and other data .relating to recorded transactions and events have been recorded appropriately,
(v) Goods and services have been received as specified,
(vi) Supporting documents pertaining to the invoice are sufficient and appropriate,
(vii) Payment for the same goods or services was not made previous!'
2.10.6 General Manager Finance will submit a proposal for release of fund to Director Finance against weekly / monthly budget of expenditure as listed in
2.10.7 Director Finance shall approve the fund for transfer of the same to the specialized Bank Account for disbursement.
2.10.8 The delegated officers / staff members arrange payment after authorization of vouchers as per policy.
2.10.9 The designated officer shall raise the next requisition for fund in the line of weekly / monthly budget with the utilization report and budget variance analysis.
2.11 Verification of vouchers
Vouchers shall be verified by the General Manager, Finance before the payments are made.
2.12 Functions of verifying officer
Before verifying any voucher the verifying officer shall ensure that:
(i) Transactions and events have been recorded in the correct accounting period.
(ii) Transactions and events have been recorded in the proper accounts.
(iii) Financial information is appropriately presented and described, and disclosures are clearly expressed.
2.13 Authorisation of vouchers
Authorisation is the act of conferring legality or sanction or formal certification. Authorisation confirms that a transaction or an event is valid and that the funds are available at the time the transaction took place.
The Asst. Director Finance/ Sr. General Manager shall be responsible for authorisation of all types of vouchers.
2.14 Responsibilities of approving and verifying officers
2.14.1 Approving Officer and Verifying Officer shall be accountable to the delegated authority for all transactions approved and verified by them.
2.14.2 Approving Officer or Verifying Officer cannot delegate their responsibilities to the other persons.
2.14.3 Any Officer, who takes an action contrary to the rules & procedures or to the instructions, which may be issued in connection therewith, shall be held personally responsible for the consequences of such action.
2.15 Payments
2.15.1 In general, all payments shall be made by cheque or bank transfer request but, in consequence of nature and volume of payment in the company, cash payment in respect of commission and other related payment may be made beyond the general policy.
2.15.2 Payment request for any Advance must be approved by preparation of payment voucher.
2.15.3 Payment vouchers must be prepared, verified and authorized by competent authority before making any payment.
2.15.4 Cheque or payment instructions to the banks shall be signed jointly by at least two bank signatories.
2.16 Receipt of money
2.16.1 General Manager, Finance shall designate an officer or officers from finance department for receiving money from other parties.
2.16.2 A computerized Money Receipt shall be issued at the time of receiving the money (Cash, Cheque, DD, PO, etc).
2.17 Salary payments
2.17.1 Payment of salary should be made by bank transfer or account payee cheque as much possible. Payment of salary less than Taka 15,000 and in the case of non-existence of official's bank account can be made by bearer cheque or in cash.
2.17.2 Monthly salary of the staff members of Auto Head Office and outlet offices shall be paid in the last week of the month. Salary date can be brought forward with the approval of the authority on special occasions like religious festival & for other reasons.
2.17.3 All deductible amounts must be adjusted with the salary before making the payment.
2.17.4 Salary approval
Salary in accordance with the service contract with the staff members and in the line with approved budget shall be prepared and approved prior to the salary is paid. The procedure of Financial Management Solutions shall be as follows:
The approved pay sheet will be post audited by the internal auditors. If any deviation or irregularities is happened and found, it will be reported to the Director Finance and Managing Director.
2.17.5 Payment of remuneration will be made by account payee cheque with joint signature as laid down in para 2.5.1. Honorarium, Salary allowances all staffs and officers will be paid by bank transfer as laid down in para 2.17.1
2.17.6 Advance income tax deduction from salary payment
Salaries of all eligible Auto officers & employees are subject to deduction of advance income tax at source on a monthly basis as per Section 50 under Income Tax ordinance 1984.
Auto Finance Department or nominated tax consultant shall compute annual/monthly tax liability of the officers & employees who earns taxable income and shall deduct the required amount of tax at the time of payment of salary.
2.17.7 Other deductions from salary
Auto Accounts Department shall deduct any amount due to employee on account of advance, penalty or any other dues for the monthly salary of the employee on the basis it was agreed upon.
2.18 Withholding tax
Auto Accounts Department shall' deduct required amount of tax against payment of house rent, supply of goods/services, etc. at the rate prevailing and in the manner in compliance with the Income Tax Ordinance 1984.
2.19 Deposit of Income tax
Auto Finance Department shall deposit the amount of income tax so deducted from the monthly salary of the employees or from the suppliers/parties to the government exchequer within 7(seven) days of such deduction,
2.20 Inter Company transaction
2.20.1 Any payment and/or transfer request to be made in favor of every concerns under Auto Group shall be authorized by the Finance Controller, A&F Auto Group for due approval of the management.
2.20.2 Approving authority against authorization of payment to sister concerns or for Auto Group management will be delegated by the Board of Directors as under:
2.20.3 Accounts Division will send the monthly statements of accounts to concerned sister company along with all related debit and credit advises with a copy to controller, A&F, Auto Group.
2.20.4 Accounts Division will reconcile the balance of intercompany accounts in every month and obtain the confirmation certificate for the agreeable amount.
2.21 Compliance with the Policy
I, the under signed declare that to the best of my belief, this correctly describes my qualification and myself. I understand that willful misstatement described herein may lead to my disqualification or dismissal, if provided.The sister Companies under the administrative control of Auto Group will follow the rules & procedures of this Financial Policy. But the functions & activities of the Company will be administered as per its own requirement with the authorization of respective Company Board for Financial Management Solutions .
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