1. Organisational policies and procedures What is the purpose of policies and procedures and who does it effect?

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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.

11. 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

12. 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

13. 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

14. 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

15. 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

16. Continuation Other organisations the same applies plus Accessible – Information can be extracted for the owner and managers

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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 staffing  Fraud prevention – overstating of hours worked  Effective working relations  Individual well-being, work-life-balance encouraging increased production  Work planning and scheduling

27. 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