Policy and Procedure on Journal Entries

Transcription

1 Policy and Procedure on Journal Entries Status: Approved Custodian: Directorate: Finance and Administration Date approved: Decision No: SAQA 07102/13 Implementation date: Due for review: File Number: 1

2 Table of Contents 1. PREAMBLE PURPOSE OWNERSHIP SCOPE OF PRACTICE PROCEDURE TYPE OF POLICY DEFINITIONS ESTABLISHMENT DOCUMENTATION AUTHORISATION AND INTERNAL CONTROL

3 1. PREAMBLE The policy and procedure on Journal entries originates from the need by the South African Qualifications Authority (SAQA) to ensure the management and control over journal entries in the financial accounting system. 2. PURPOSE This policy and procedure serves to ensure that only authorised journal entries are captured and posted in the financial accounting system. 3. OWNERSHIP The custodian of this policy and procedure is the Directorate: Finance and Administration. 4. SCOPE OF PRACTICE The policy and procedure is applicable to all SAQA staff, Board members and Finance Committee members. 5. PROCEDURE The Procedure for Journal entries is to be read and implemented with this policy. 6. TYPE OF POLICY This policy is of a strategic nature. 7. DEFINITIONS 7.1 Standing Journal Entry is a journal entry that is processed on a recurring basis, e.g. monthly. 7.2 Other Journal Entry is any journal entry other than a Standing Journal Entry (Normally a General journal entry). 3

4 8. ESTABLISHMENT 8.1 A Standing Journal Entry will be generated by one of the sub systems within SAQA s accounting system. This type of journal entry will be generated on a recurring basis from the Payroll, Fixed Assets, Expenditure and Income Recognition processes and procedures. Each journal entry of this nature will need to be authorised for posting by the Director: Finance and Administration or by the Deputy Director: Finance and Administration. 8.2 All Other Journal Entries will need to be authorised by the Director: Finance and Administration before the journal is processed and posted on the accounting system. A separate register will be kept where a record of each and every such Other Journal Entry will be recorded. The signatures of the official posting the journal entry as well as that of the Director: Finance and Administration must also be recorded on the journal entry printout as proof of the posting and the Authorisation to do so. 8.3 No Other Journal Entry may be recorded and posted on the accounting system without the prior approval of the Director: Finance and Administration. 8.4 The Director: Finance and Administration will not have access to process and post journal entries on the accounting system. 4

5 PROCEDURE 9. DOCUMENTATION The following documentation is needed to execute proper control and administration: 9.1 Journal entry voucher 9.2 Supporting documentation 9.3 Journal Entry register 10. AUTHORISATION AND INTERNAL CONTROL 10.1 Journal entry vouchers with supporting documentation must be prepared timeously Standing Journal Entry vouchers must be reviewed and authorised by the Director: Finance and Administration or the Deputy Director: Finance and Administration and signed and dated as having been reviewed and authorised Other Journal Entry vouchers must be reviewed and authorised by the Director: Finance and Administration and signed and dated as having been authorised and reviewed After authorisation of the Journal Entry Voucher, the journal may be captured, reviewed and then posted in the accounting system. The person who authorises the journal entry will not be the same as the person who captures and posts the journal entry on the accounting system. 5

6 10.5 Once the Journal has been posted, a record of the entry must be kept in the Journal Entry Register. The date, period of posting, narration, batch number and details of the official capturing and posting the journal entry will be recorded. The Register must be reviewed monthly and signed off by the Director: Finance and Administration or the Deputy Director: Finance and Administration All journal entry vouchers with the supporting documentation will be filed sequentially according to the date that it was posted and recorded in the Journal Entry Register A printout of the Journal Entry list from the Financial Accounting System will be done monthly and compared to the Journal Entry register to ensure that no journals have been passed that are not authorised. The Director or Deputy Director of Finance and Administration will sign the printout as proof of having performed the test and file the documentation. 6