Purpose and Use of The

SINDA Finance Manual Procurement & Payment

FINANCIAL GUIDELINES AND PROCEDURES SINDA Finance Manual Procurement & Payment

General

Singapore Indian Development (SINDA) is registered under the Societies Act, Chapter 311 on 6 July 1990 and the Charities Act on 7 October 1992. It has been approved as an Institution of a Public Character under Section 37(2) (C) of the Income Tax Act (Cap. 54) since 16 December 1991.

Purpose

The formal Financial Procedures and Policy Guidelines, put in place are intended to:

 Give broad overview of the Financial procedures and policies of the Association

 Describe the approach towards financial transactions, reporting and budgeting

 State the authorized signatories for all financial transactions.

 Set the standards for ethics, probity and integrity in financial matters

 Protect and enhance the interests of the various stakeholders in SINDA

This document and will be reviewed and updated periodically under the approval of the EXCO and Audit Review Committee of SINDA.

The primary intended users of the manual include SINDA’s Exco Members, managers and employees in the Finance department, External Auditors and Internal Auditors. SINDA Finance Manual Procurement & Payment

Objective

There are three objectives inherent in the establishment of government financial administration policy:

1. Accountability to ensure the responsibility for each commitment of funds is assigned to a responsible individual, that there is an audit trail of transactions to document that responsibility and ensure complete and accurate reporting of the transaction.

2. Control to ensure that every financial transaction is for a purpose specified by the financial guidelines and is carried out in a manner that is consistent throughout the Association reflecting proper financial procedures. This is to ensure that relevant authorities inspect and authorize the various stages of the transaction.

3. Efficiency to ensure that funds are spent in a manner that maximizes the value received by the Association for that expenditure. SINDA Finance Manual Procurement & Payment

Table of Contents

Index Contents Reference No Page No No. 1 Procurement and Payment SIN/FM/PP-01 1.1 Procurement process 6 1.2 Operational Expenses 13 1.3 GIRO payments 13 1.4 Cheque payments 16 1.5 Petty Cash 20 1.6 Transport Claims 22 1.7 SINDA fund refund 25 2 Revenue and Receipts SIN/FM/RR-02 2.1 Donations 27/25 2.2 Grants/Funding 33 2.3 Programme Fees 35 2.4 Other Income 36 3 HR & Payroll SIN/FM/HRP- 3.1 Payroll Administration 03 40 4 Capital Expenditure SIN/FM/CE-04 4.1 Fixed Assets Classification 46 4.2 Fixed Assets 47 Capitalization & Depreciation 4.3 Fixed Assets Tagging, 47 Recording, Transfer, Disposal and De- Recognition 5 Financial Management & SIN/FM/FMC- 51 Control 05 5.1 Budgetary Controls 51 5.2 Operational Controls 51 5.3 Asset Management 51 5.4 Journal Enteries 51 5.5 Audits 51 SINDA Finance Manual Procurement & Payment

Table of Revisions

S/No Contents Policy No Revision Approved Date by 1 Procurement and SIN/FM/PP-01 Payment 2 Revenue and SIN/FM/RR-02 Receipts 3 HR & Payroll SIN/FM/HRP-03 4 Capital Expenditure SIN/FM/CE-04 5 Financial SIN/FM/FMC-05 Management & Control SINDA Finance Manual Procurement & Payment

1 PROCUREMENT & PAYMENT

1.1 PROCUREMENT PROCESS

PURPOSE

1.1.1 To provide a clear policy and procedure for all staff who need to purchase items or engage the services of external vendors. To ensure that goods or services procured should be cost effective; meeting the specifications required and is transparent and fair.

POLICY

1.1.2 Purchase Requisition (PR) should be raised for all purchases other than those stipulated in para 1.1.3 below. All purchase requests should be approved by individual department heads.

1.1.3 PR should not be raised for the following recurring payments without invoice:

a) STEP/ Teach Payroll b) Facilitator Payments c) Bursary Payments d) Petty Cash Disbursements e) Before and After School Care Payments f) Contractual payments like o Maintenance contracts o Any other contracts

1.1.4 Minimum of three quotations should be sourced for purchases above $2,500. Due diligence is encouraged to eek at least three written/verbal quotes for all purchases and services below $2,500. PR has to be raised before sourcing for three quotations. SINDA Finance Manual Procurement & Payment

1.1.5 An Approval of Requirement (AOR) forum should be held during the Senior Management Meeting for all purchases above $2,500. The approved AOR will be circulated to EXCO Key Appointment Holders on a monthly basis for their information. Table 1 SINDA Finance Manual Procurement & Payment

Approval Limits Quotation Approval Authority Remarks (including waiver of quotations) $2,500 & below 1 quotation Director

$2,501 to $20,000 3 quotations CEO Delegation of authority to Senior Director in the absence of CEO $20,001 to $50,000 3 quotations CEO, Treasurer Delegation of authority to Senior Director in the absence of CEO and Secretary in the absence of Treasurer $50,001 to $150,000 Tender CEO, Treasurer, & Delegation of President authority to Vice President in the absence of President and Secretary in the absence of Treasurer $150,001 to $500,000 Tender CEO, EXCO KAH* May refer project to EXCO for discussion and approval $500,001 and above Tender CEO, EXCO May refer project to BOT for discussion and approval

*Key Appointment Holders – President, Vice-President, Secretary & Treasurer SINDA Finance Manual Procurement & Payment

1.1.6 The quotation recommended should be the one that provides the best opportunity to procure the goods or services with value for money after taking into account both financial and qualitative elements of the evaluation. The evaluation should assess the quality of the proposed solution and how it fits with the requirement specification.

1.1.7 A formal quotation approval document should be put up summarizing the quotations received and the recommendations for the quotation selected.

1.1.8 Waiver of quotations is only allowed in the following exceptional situations:

a) Purchases can only be made from one vendor / sole distributor. Justifications should be documented.

b) Difficulty in obtaining three quotations.

c) Short time lines in sourcing for quotations is not a valid reason for quotation waiver

1.1.9 Tenders should be made for purchases above $50,000. Tender Committee comprising of President, Treasurer and CEO should evaluate the tenders.

1.1.10 All tender documents should be secured after submission and only opened at the same time during evaluation. All tender committee members should be present during evaluation.

1.1.11 Purchase Orders (PO) should be raised for all approved PR and quotations. All purchase orders should be approved by department heads. SINDA Finance Manual Procurement & Payment

PROCEDURES

Request for a purchase

1.1.12 Purchase of items - $2,500 and below

1) Programme Officer to prepare PR Form 2) Forward the PR Form to department Assistant Managers/ Managers.

1.1.13 Purchase of items - $2,501 to $20,000

1) Programme Officer will need to prepare an Approval of Request Form (AOR) form. 2) Programme Officer to prepare PR Form once AOR forum has approved the purchase, and this has been duly included in the meeting minutes. 3) Forward the PR Form to department Assistant Managers/ Managers. 4) Source for quotations and then obtain approval from CEO before purchasing the goods and services. 5) Approved Quotation Forms should be attached with the other documents relating to the purchase.

1.1.14 Purchase of items - $20,001 to $50,000

1) Programme Officer will need to prepare an Approval of Request Form (AOR) form. 2) Programme Officer to prepare PR Form once AOR forum has approved the purchase. 3) Forward the PR Form to department Assistant Managers/ Managers. 4) Source for quotations and then obtain approval from CEO and Treasurer before purchasing the goods and services. 5) Approved Quotation Forms should be attached with the other documents relating to the purchase.

1.1.15 Purchase of items - $50,001 and above

1) Programme Officer will need to prepare an Approval of Request Form (AOR) form. SINDA Finance Manual Procurement & Payment

2) Programme Officer to prepare PR Form once AOR forum has approved the purchase. 3) Forward the PR Form to department Assistant Managers/ Managers. 4) Admin Department should call for a tender.

5) Obtain approval from CEO, Treasurer and President, the Key Appointment Holders of the Executive Committee or the Executive Committee as the case may be depending on the overall quantum or the purchase (see Table 1) for the tender. 6) Approved Tender Forms should be attached with the other documents relating to the purchase.

1.1.16 Review and Approval of Purchase Requests

1) Ensure that there is available budget for the purchase. 2) If purchase is not budgeted for, user department should source for funding or approach Finance Department for other options. 3) User Departments will file and keep a copy of the approved PR and forward the original copy to the Finance Department. 4) A copy of the duly completed and approved PR will be maintained by the Finance Department for audit purposes.

1.1.17 Waiver for Quotation

1) Programme Officer will need to prepare an Approval of Request Form (AOR) form. 2) Programme Officer to prepare PR Form once AOR forum has approved the waiver for quotation. 3) Forward the PR Form to department Assistant Managers/ Managers. 4) Raise a Waiver of Quotation Form and obtain approval from the waiver approval signatories as mentioned in Table 1. 5) Approved Waiver Form should be attached with the other documents relating to the purchase. SINDA Finance Manual Procurement & Payment

1.1.18 Sourcing for Quotation / Inviting Expressions of Interest from Vendors

1) Prepare e-mails to vendors requesting for quotations. 2) Ensure that vendor(s) are given exactly the same specifications of the goods and/or services required, for the intended procurement. The requirements should be clear and unambiguous. The requirement should be defined as fully as possible. 3) The closing date of the quotation should be clearly indicated. If need be, all the vendors must be called for a single meeting to explain the specifications. 4) No indication of the budget available should be given in the quotation calling process. 5) Any alterations to the requirements MUST be communicated to all the interested vendors at the same time. 6) Ensure all e-mails sent to vendors are printed. Attach e-mails with quotations (once we have received quotations). 7) There may be cases when it would be necessary to develop the requirement during the procurement process. This will be likely to require negotiations with the potential suppliers, and may involve the use of competitive dialogue procedures.

1.1.19 Evaluating Vendor’s Quotation

1) The evaluation of quotations should be initiated by the User Department. 2) Consolidate the quotations from the vendors’ replies. 3) Select the best vendor based on the policy stated above. Provide reasons for selecting the vendor and propose to the Approving Heads. 4) Approved Quotation Approval Forms/ Waiver for Quotation Forms should be forwarded to and kept in Finance department. 5) Original approved Quotation Approval Forms/ Waiver for Quotation Forms should be attached to SINDA Finance Manual Procurement & Payment

the invoice once Finance Department receives the invoice.

Purchasing

1.1.20 Raising Purchase Order

1) Programme managers to raise a PO upon approval of PR/ Quotation approval/ Quotation waiver. 2) Department heads will approve PO. 3) User departments will attach the approved PO with the PR and submit them to Finance Department. 4) Finance Department will attach the PR & PO to the invoice. SINDA Finance Manual Procurement & Payment

1.2 OPERATIONAL EXPENSES

PURPOSE

1.2.1 The objective of this policy and procedures is for accountability and control over all GIRO, Cheque and Cash payments, and to ensure that prompt payments to the vendors for goods & services received are made according to agreed terms and norms.

POLICY

1.2.2 Payments will be made when the goods and services are received.

1.2.3 Vendor’s original invoices or certified true copies of invoices, authorised claims are required for all payment processing.

1.2.4 Payment Voucher (PV) should be raised for all payment requests. PV generated by the Accpac system is sequentially pre-numbered.

1.2.5 Payment should be made only after matching the original invoice/certified true copy with the Delivery Order and Purchase Order. To avoid duplicate payments, the invoice should be duly stamped as ‘Paid’ upon payment including details of payment such as date and cheque reference number (if applicable).

1.2.6 Payments should be made via GIRO or Cheque.

1.2.7 Payments to vendors by GIRO must be supported by the Direct Credit Authorisation form.

1.3 GIRO PAYMENT

1.3.1 Regular Vendor payments should be made via GIRO through DBS IDEAL System.

1.3.2 GIRO vendor payment dates will be on the 5th, 15th, 25th and 27th of every month.

1.3.3 GIRO Payments via Ideal should be verified by Head of Finance before CEO’s authorization.

PRIVATE & CONFIDENTIAL 14 SINDA Finance Manual Procurement & Payment

1.3.4 GIRO Payments should be authorized by either one of the following authorized signatories.

a) Chief Executive Officer b) Senior Director (only in the absence of CEO)

1.3.5 Project Victory/Senior Victory facilitators should be paid on the 5th of every month.

1.3.6 SINDA Bursary and School Pocket Money Fund payments should be paid on the 15th of every month.

1.3.7 STEP Personnel should be paid on the 25th of every month.

1.3.8 Teach tutors should be paid on the 27th of every month.

PROCEDURE

1.3.9 GIRO Payment

1) Finance Executive (Accounts Payable) check invoices received against PR, PO, DO. 2) If no discrepancies are found, prepare payment voucher. In the event of discrepancies Finance Executive checks and resolves the issues with the concerned departments before processing the payment. 3) Attach invoices, PO, and DO to the payment voucher. 4) Forward payment voucher with all supporting documents to Finance Executive/Head of Finance for verification and CEO for approval. 5) Upon receiving the payment vouchers, consolidate all payment vouchers that will be processed for GIRO payment. 6) Prepare a consolidated GIRO payment listing. 7) The consolidated GIRO listing will be verified by Head of Finance. 8) Upload the verified GIRO listing to DBS IDEAL system. 9) The IDEAL system’s GIRO listing will be sent to the authorized signatory for approval.

1.3.10 STEP/Teach Payroll Payment process

1) STEP Centre Principals and Teach School Coordinator should approve all tutor claims before submission to Admin Support Unit (ASU). 2) ASU will collate the claims from the STEP Centre Principals/ Teach tutors and update the STEP/ Teach payroll in the database. 3) ASU will conduct checks on the attendance, bank details and the amount payable to each tutor. 4) ASU will submit the STEP/ Teach payroll to finance department for verification. 5) Finance department will verify the payroll reports. 6) Upon completion of payroll checking and verification, ASU will print the Tutors’ bank listing and a consolidated tutor payroll report and submit them to Finance Department for processing. 7) Finance Executive verifies the consolidated payroll report and send for approval to Head of Finance. 8) Finance Executive (Accounts Payable) will prepare a bank letter and a PV based on the Consolidated Tutor Payroll Report for STEP/ Teach Payroll for CEO’s approval. 9) CEO will sign the bank letter, payment voucher and all the pages of the Tutors’ bank listing. 10) Finance Executive co-ordinates with courier service to submit bank letter and bank listing to the bank.

1.3.11 Bursary Payments

1) Finance department will receive the consolidated bursary payroll from Family Service Centre (FSC). 2) Finance Executive should ensure that the bursary payroll has been approved and signed by Head of FSC. 3) Finance Executive (Accounts Payable) will verify the amount payable for individual bursary recipients. 4) Finance Executive (Accounts Payable) will upload the bursary payroll into the DBS IDEAL System and retain a hardcopy. 5) Finance Executive (Accounts Payable) will raise and attach the Payment Voucher to the bursary payroll hardcopy and the consolidated bursary payroll report from FSC. 6) Finance Executive (Accounts Payable) will send the PV to the Head of Finance for verification and CEO for authorization.

7) Head of Finance will alert CEO to authorize the bursary payment via DBS IDEAL System. 8) Finance Executive (Accounts Payable) will file the PV, payroll print out and consolidated payroll report in the bursary payroll file.

1.3.12 Staff Claims Reimbursements

1) Staff to complete the Claims Reimbursement Form. 2) Staff to submit their original receipts along with the claim form duly authorized by their Heads of Department within one month from the date expenditure was incurred. 3) Finance Executive should generate a Payment Voucher (PV) based on the amount of the original receipt. 4) PV must be verified by Head of Finance and approved by CEO. 5) Process the reimbursement claim by GIRO.

1.3.13 Inter Bank GIRO Payments

1) The Inter Bank GIRO Payments every month are as follows:

S/N Vendor Description 1 SingTel SINDA Telephone bill 2 Singapore Power SINDA PUB Bill 3 Singapore Land Authority Temporary Occupation License 4 Secom Security Security Alarm 5 CPF Board Staff CPF Payments 6 IRAS GST Payments 7 NCSS Membership 8 Sing Post Business reply services

1.4 CHEQUE PAYMENTS

POLICY

1.4.1 As far as practical, only non regular payments should be made by cheque.

1.4.2 Cheque Payments should be made within five working days from date of invoice/claim receipts.

1.4.3 Cheque Payments must be authorized by two signatories based on Bank authorized signatories list.

PROCEDURE

1.4.4 Finance Executive (Accounts Payable) will verify the original/certified true copy invoices received and match it against the relevant PR, PO, and DO.

1.4.5 If no discrepancies are found, prepare payment voucher. In the event of discrepancies Finance Executive checks and resolves the issues with the concerned Programme officers before processing the payment.

1.4.6 Attach invoices, PR, PO, and DO to the payment voucher.

1.4.7 Submit payment voucher prepared by Finance Executive with all supporting documents to Head of Finance for verification and CEO for approval.

1.4.8 Raise and attach cheques to the payment vouchers.

1.4.9 Submit the cheques with the attached payment vouchers to the authorized bank signatories for their signatures.

1.4.10 All invoices and payment vouchers must be endorsed as paid with the GIRO date or cheque details.

1.4.11 Mail the cheques to the vendors and indicate the mailing date on the payment voucher.

1.4.12 Obtain the vendor’s signature on the payment voucher for personal collection of cheque.

BANK SIGNATORIES

PURPOSE

1.4.13 The purpose of this policy is to ensure that there is proper authorization of all cheque payments made as they represent outflow of resources.

POLICY

1.4.14 Two authorized bank signatories are required for all cheques raised towards payment for any amount.

1.4.15 The bank signatories for SINDA’s all Bank Accounts and their approval limits are as follows:

Table 2 (Amended in line with the SINDA Constitution)

Bank Signatories

Up to Designation Group Any amount 10,000

President - Executive Committee

Vice President - Executive Committee

A 2A Secretary - Executive Committee

Treasurer - Executive Committee 1A + 1B

Chief Executive Officer

Senior Director B

Directors

4.5 PETTY CASH

PURPOSE

4.1 This policy spells out the authorized petty cash claims that can be paid.

POLICY

4.2 Maximum Petty cash float should be limited to $2,500 based on the Imprest System.

4.3 Petty cash float of $2,500 is maintained as follows:

a) $1,700 - Finance Executive. b) $ 800 - Manager, Family Service Centre

4.4 All petty cash claims are limited to a maximum of $150 per claim as reimbursement or advance.

4.5 Original receipts should support all petty cash claims. The approval process for petty cash claims is as follows:

Claimed by Approved By Managers and below Senior Managers or above Senior Managers Asst Director or above Asst Director and above CEO

4.6 Receipts must be forwarded to the Finance department within three working days for any advance petty cash claims.

4.7 All petty cash must be claimed within one month from date of purchase. Claims for purchases submitted after one month will not be processed without CEO’s approval.

4.8 Petty cash float should be replenished at the end of every month or when the petty cash float is running low.

4.9 Petty cash should only be used to purchase miscellaneous purchases. It should not be used for making routine purchases in the ordinary course of business.

4.10 Petty Cash claim forms should be sequentially numbered when claims are submitted.

4.11 Finance Executive must record all petty cash transactions in the Petty Cash register.

PROCEDURES (for administrators of the two petty cash floats)

4.12 Petty cash administrators must ensure cash is kept in locked cash box only.

4.13 Petty cash administrators must reconcile the cash balance on a daily basis and ensure safe keeping of all the settled claim forms.

4.14 Surprise spot checks are to be conducted by senior management on a regular basis to ensure compliance of petty cash procedures

4.15 Processing Petty Cash Claims

1) For reimbursements, Finance Executive must verify the following :

a. Petty cash claims must be duly signed by Senior Managers and above.

b. Petty cash claims must have the description of expenses or the expense code.

c. the details on the petty cash claim and amounts against the original receipt.

2) Disburse cash to staff only if there are no discrepancies.

3) Staff must sign on petty cash claim form while receiving the cash.

4) Finance Executive must update petty cash register at the Acc-pac system regularly.

4.16 Request for Replenishment of Petty Cash Float

1) Print petty cash register when replenishment for petty cash is due. 2) Submit the petty cash vouchers and supporting receipts with the petty cash register to Manager/Head of Finance for verification & approval.

3) Raise a cash cheque and send it to the authorized signatories for signatures with the detail petty cash reconciliation statement.

4.6 TRANSPORT CLAIMS

PURPOSE

4.1 To set out policy and procedure for transport claims made by staff.

POLICY

4.2 Transport claims can be made by entitled staff.(non Senior Management staff and Seconded Officers if they travel by the following modes: a) Public transport i.e. by bus, MRT and taxi b) Personal Transport

4.3 Taxi Transport Claims process

1) E-vouchers are to be used by entitled staff for official trips only official trip is defined as trip to their place of work from office or back. 2) The E-vouchers can only be used for hiring Comfort/Citicab taxis.

3) Staff are required to flag down cabs. Advance booking or call booking fee is typically not allowed unless permission has been obtained from Division Heads. 4) Staff must reimburse the booking fee to Finance Department if they had booked a cab and they had not obtained prior permission from their Division Heads. 5) Every E-voucher collected must be recorded in the “Record of Transport” claim form (ROT) by the staff requesting the e voucher.

4.4 Staff are allowed to utilize the E- vouchers for the following:

1) Travel from Sinda to the event/meeting/briefing venue and/ or vice versa. 2) Returning home after the event/meetings /briefing if these ends after 9 pm. 3) Each staff is allowed to utilize only 1 e- voucher for an event that is held over the weekend. 4) They are allowed to use it from home to the event venue or vice- versa and not any other venues. 5) Staff can only utilize 2 e-vouchers for weekend event/meeting/briefing that end only after 9 pm.

4.5 In the event that staff cannot hire Comfort/Citicab taxis, they can hire other taxis and pay cash.

4.6 They are required to submit the taxi receipts and submit their claims for reimbursement within one month from the date of the trip.

4.7 The approval process for transport claims is as follows:

Claimed by Approved By Managers and below Senior Managers or above Senior Managers Asst Director or above Asst Director and above CEO

4.8 Verification of cab E-vouchers.

1) Division ‘e-voucher administrators’ will receive the invoices towards the end of each month for verification and approval. 2) The invoice will capture trips up to the 26th of every month. 3) Division e-voucher administrators are required to verify the Record of transport claims with the invoices, and then sign and submit both documents to Finance department. 4) The division e-voucher administrator (Senior Executive/Asst.Manager/ Manager will forward the soft copy of the Record of Transport to Finance Department.

4.9 Transport claims made by usage of personal transport

1) Staff who drive would be entitled to mileage claim @ $0.55/km, ERP and parking expenses. 2) All mileage claims must be tabulated in an excel format. 3) Staff should fill up the mileage claims form with the following details:

a) Reason for the travel b) Destinations (to and from) of travel. c) Distance between destinations. 4) Staff should get the department’s Senior Manager and above to approve on the mileage claim form. Submit the form to finance department. 5) Finance department will check the details of the mileage claim and process for reimbursement.

4.10 Management of cab E-vouchers.

1) Overall control of cab E-vouchers will reside with Finance Department. 2) Division e-voucher administrators are to collect the E- Vouchers from Finance Dept, monitor and administer the usage of the e-vouchers. 3) Finance Dept will need to be informed 2 weeks in advance to request for replenishment of the e- vouchers.

4.7 SINDA FUND REFUND

PURPOSE

4.1 The purpose of this policy is to set out the procedure for refund of the SINDA Fund contributions.

POLICY

4.2 All Indians from the Indian subcontinents such as India, Pakistan, Sri Lanka and Bangladesh working in Singapore may contribute a monthly sum to SINDA Fund, according to their income levels indicated below:

Wage Level Minimum Monthly Contribution Up to $600 $1 > $600 - $1,500 $3 > $1,501 - $2,500 $5 > $2,500 $7

4.3 Foreign workers on Foreign Worker Levy Scheme are not obligated to contribute to the Fund.

4.4 SINDA Fund Contribution is an opt-out scheme.

4.5 SINDA Fund refunds should be made to organizations/ employee for the following reasons: 1) The organization has made erroneous deduction of the SINDA Fund amount from the employee. 2) The organization has credited the incorrect amounts to CPF Board due to erroneous calculations.

PRIVATE & CONFIDENTIAL 25 SINDA Finance Manual Revenue & Receipt

2. REVENUE & RECEIPTS

PURPOSE

1) The policies and procedures in this document govern the issuing of receipts and recording of income received as well as monitoring of income due. This is to ensure:

a. That all income received and recorded are duly supported by relevant documents and such documents are properly maintained.

b. Complete, accurate and timely recording of income received.

c. That all income is recorded and presented in accordance to the Singapore Financial Reporting Standards (“FRS”) and Recommended Accounting Practice (“RAP”).

d. That outstanding claims issued are monitored and followed up on timely basis.

e. That there is a policy to make provisions for bad debts and that such provisions are monitored and followed up on periodically.

f. Accuracy and validity of billing claims made.

g. Proper safeguarding of cash/cheques received prior to banking in.

h. That reconciliation between receipts and cash/ cheques received and the journal entries are performed to ensure completeness of recording.

2) This above reconciliation is to be reviewed and approved by the designated Finance Executives (Accounts Receivable) or the Senior Finance Executive

3) All donation income should be banked in to SINDA AC 4; 048- 018064-7.

4) All other incomes should be banked in to SINDA AC 1 048-004825-0.

POLICIES

SINDA’s Income is classified in the following manner:

a) Donations b) Government grants/funding c) Programme fees d) Membership fees e) Other income

2.1 DONATIONS

POLICY

2.1.1 Designated Donations received should be recorded and spent according to the purposes stated by the donor.

2.1.2 Designated Donations are as follows :

a) Educational sponsorship – Educational Financial assistance to clients

b) Family Service Centre (FS) Donation – Financial Assistance to FSC Clients

c) Project Give (PG) Donations – Bursary and educational assistance to low income students

d) Other designated donations as per the donor’s request

2.1.3 All non-designated donations are treated as general donations

2.1.4 Appreciation letters and tax-exempt receipts are to be issued for all donations received. The appreciation letters and the tax-exempt receipts are to be forwarded to the donor within 3 working days after the donations are banked in.

2.1.5 The signatories for the appreciation letter are as follows:

1) $500 & below - Head of Finance 2) Above $500 & below $10,000 - Chief Executive Officer 3) Above $10,000 - President or Chairman

2.1.6 For walk in cash donors, tax-exempt receipt must be issued to them immediately.

2.1.7 If an error is made on the receipt, a new receipt must be issued or the amendment has to be counter signed by a Senior Finance Executive. All originals of the cancelled receipts should be attached to the carbon copy of the receipt.

2.1.8 A copy of the donation cheque, receipt, deposit slip, donation form, donor’s NRIC copy and the appreciation letter are to be attached and filed.

2.1.9 Finance Executive is to ensure the following particulars from the Donation Forms are updated in the donation schedule on daily basis:

a) Name of donor b) NRIC No. or Unique Entity Number (UEN) for corporate donations c) Mode of donation d) Date that the donation was received e) Type of donations f) Amount of the donation received g) Donation Receipt number in sequence h) Donor particulars

2.1.10 Finance Executive (Accounts Receivable) will update the Institute of Public Character (IPC) Link system for auto inclusion of tax-exempt donations on a monthly basis.

2.1.11 The IPC Link system is to be reconciled with the General Ledger and the donation schedule on monthly basis by Senior Finance Executive.

PROCEDURES

2.1.12 Donation is received via the following modes:

a) Cash/Cheques

b) Credit Card

c) GIRO

d) Online Donations

e) Project Give Donation Boxes

a) Cash/Cheque

1) Front Desk Officers will alert the Finance Executive whenever there is a walk in donor.

2) Finance Executive will be responsible to collect cash/cheque donations received at SINDA Office.

3) Finance Executive will complete the details of donors in the Donation Form indicating the donor’s details as per NRIC. A copy of the donor’s NRIC is made for record purposes.

4) Finance Executive will issue tax exempt receipts to donors immediately for cash donations.

5) Finance Executive is to record all the collections in the revenue register and file accordingly.

6) Tax exempt receipts will be issued upon bank clearance for cheque donations. Finance Executive to mail the appreciation letters and tax exempt receipts within 3 working days upon banking.

7) All collections must be kept under lock and key in Finance department and banked within 3 working days.

8) Collection and banking of donations collected will be segregated between the 2 Finance Executives.

9) Finance Executive to ensure that the following particulars from the Donation Forms are updated in the donation schedule on a daily basis:

a) Name of donor b) NRIC No. or UEN No for corporate donations c) Mode of donation d) Date on which the donation was received e) Type of donations f) Amount or value of the donation received g) Donation Receipt number in sequence h) Donor particulars

10) Finance Executive (Accounts Receivable) will update the IPC Link system on all donations received for auto inclusion of tax- exempt donations on a monthly basis.

b) Credit Card

1) Donors who wish to donate via credit cards can either

 Come personally to SINDA and fill up the form to donate.

 Call Finance Executive to request for the credit card form to be mailed to them.

2) Donors have the option of donating monthly or on a one time basis by credit card. They can also indicate the programme that they wish to donate to on the GIRO/credit card form.

3) Front Desk Officers should alert the Finance Executive whenever there is a walk in donor.

4) Finance Executive should assist in ensuring that all the details on the form as required are complete.

5) Finance Executive will process the transaction using the Visa Card machine.

6) Finance Executive (Accounts Receivable) will subsequently mail the approved credit card transaction receipt, tax exempt receipt and an appreciation letter to the one time donor.

7) The tax exempt receipts, approved credit card transaction receipts and appreciation letters are sent to the donors at the end of year for regular donors.

8) The donation record is updated by the Finance Executive (Accounts Receivable) and transactions are posted into the ledger. The Donation schedule is to be updated on a daily basis.

9) Finance Executive (Accounts Receivable) will update the IPC Link system at the end of the year for auto inclusion of tax- exempt donations .

c) GIRO

1) Donors who wish to donate via GIRO can either

 Come personally to SINDA and fill up the Direct Debit Authorisation (DDA) Form

 Call Finance Executive to request for the DDA Form to be mailed to them.

2) Donors have the option of donating monthly or on an adhoc basis by GIRO. They can also indicate the programme that they wish to donate to on the DDA form

3) Front Desk Officers should alert the Finance Executive whenever there is a walk in donor.

4) Finance Executive should check that the DDA Form is authorised by the donor

5) Finance Executive should send the authorised DDA form to the bank for approval.

6) Upon approval, donors will be sent a letter informing them on the date of the deductions. All approved GIRO donations are processed in the last week of the month.

7) Finance Executive should mail the tax exempt receipts and appreciation letters to the donors at the end of year.

8) The Finance Executive (Accounts Receivable) updates the donation schedule and transactions are posted into the ledger.

Finance Executive (Accounts Receivable) will update the IPC Link system at the end of the year for auto inclusion of tax-exempt donations.

d) Online Donation

DBS Online banking (I-bill payment)

1) Donors should include SINDA in their internet banking billing arrangement.

2) Donor must have a DBS Internet banking account

3) SINDA will receive the bill payment report from DBS at the end of the month.

4) Finance Executive should prepare tax exempt receipts for the donations. The receipt will not be mailed out unless the mailing details are provided by the donor.

5) The Finance Executive (Accounts Receivable) updates the donation schedule is updated and transactions are posted into the ledger.

6) The Finance Executive (Accounts Receivable) Updates the IPC Link system for auto inclusion of tax-exempt donations on a monthly basis.

Royal Bank of Scotland (RBS) World Pay

1) Donors can make donation via their credit card through SINDA website.

2) An email notification is received by the Head of Finance from RBS World pay on all successful donations made to SINDA.

3) The Finance Executive (Accounts Receivable) sends the deductible tax receipt and appreciation letter to the donor based on the email notification.

4) The Finance Executive (Accounts Receivable) updates the donation schedule on daily basis and transactions are posted into the ledger on a weekly basis.

5) The Finance Executive (Accounts Receivable) updates the IPC Link system for auto inclusion of tax-exempt donations on a monthly basis.

e) Project Give Donation Boxes

Project Give is a community fund raising campaign to raise money for bursaries for students from needy families. It typically runs through Hari Raya Puasa, Deepavali and Christmas. Funds are raised via:

1) Donation boxes placed at the booth during Deepavali Fair at Campbell Lane

2) Donation boxes placed with partner retailers.

The license application for the placement of donation boxes must be obtained from NCSS two weeks in advance before the donation boxes are placed by the designated Project Give Committee member.

2.2 GRANTS/ FUNDING

2.2.1 Types of Grants/ Funding

a) Government subvention

1) Government Subvention represents the annual ‘dollar for dollar’ matching grant receivable, subject to a maximum of $1,700,000 from the Ministry of Community Development, Youth and Sports (MCYS). 2) An audit is conducted at the end of each financial year by external auditors based on the grant.

b) CPF SINDA Fund income

1) CPF SINDA Fund Income is received as a lump sum amount by GIRO on a monthly basis by the 10th of each month for the previous month. 2) CPF will send SINDA a payment advice with details of SINDA Fund collections and the invoice for the agency fees charged for the month.

c) Temporary Occupation License(TOL) Grant

1) Finance Executive will send MCYS a copy of the TOL invoices and the bank statement every quarter for reimbursement of the TOL Fee paid. 2) The TOL Fee is reimbursed to SINDA on quarterly basis by GIRO.

d) GST Output Tax Grant

1) MCYS reimburses the GST absorbed on fee collections on a yearly basis. 2) Finance Executive submits the copy of the acknowledgment form for all the four quarters.

e) SINDA FSC - MCYS/NCSS/STB/ Funding

1) FSC Funding is given by the MCYS/NCSS/STB to manage the SINDA Family service Centre (FSC).

f) School Pocket Money Fund Funding (SPMF)

1) SINDA receives yearly grant from the National Council of Social Service (NCSS) towards SPMF. 2) All bursary payments made under this service will be paid out from SPMF based on criteria set out by NCSS. 3) FSC Officer has to prepare quarterly report on the SPMF payments and send it to NCSS after due authorisation by the Head of FSC. 4) MCYS/NCSS will notify SINDA with a payment advice on the date of credit into SINDA bank account. 5) All grants are directly credited into the SINDA Account.

g) Singapore Totalisator Board Grant

1) STB provides grants for critical & strategic social service programme, new programme, capability enhancement and capital funding for the social service sector. It aims to alleviate the fundraising burden of VWO and enable them to focus on service delivery, service standards and the outcomes for the clients they serve. 2) STB’s donation of $500,000 per annum is provided to support SINDA’s programmes. 3) The funds will be released only based on the evaluation and verification of the annual audited report of SINDA and report confirming that the programmes were completed and the objective and targets set are achieved. 4) An audited Statement of Income and Expenditure should be submitted to STB within 6 months of the end of the year. 5) A Donation Reply Form and Direct Credit Authorisation Form has to be completed and submitted together with the audited Income and Expenditure Statement. 6) Upon approval and receipts of the grant, Finance Executive should prepare an acknowledgment letter. 7) Finance Executive will mail the acknowledgement letter signed by the Head of Finance to the TOTE Board.

2.3 PROGRAMME FEES

2.3.1 STEP/TEACH

a) All STEP Centre Principals (CP) and Teach tutors are authorised to collect the programme fees from students on behalf of SINDA.

b) STEP/TEACH programme fees can be collected by the various modes as listed below:

1) Cash/Cheque

2) GIRO

c) It is the CP and tutor’s responsibility to bank in the fee collections.

d) Fee collected must be banked within 3 working days. In case of any discrepancies, the CP and tutor will be held responsible.

e) In order to facilitate easy transfer of fees collected to SINDA’s bank a/c, CP and tutor with DBS/POSB a/c can use the DBS Bill Payment facilities to transfer the programme fees collected from their account into SINDA account.

f) CP and tutors must submit their Record of Receipt (ROR) to Admin Support Department on a monthly basis.

g) It is the responsibility of the CP/tutor to ensure amount stated in ROR tallies with the amount stated in the bank deposit slip.

h) Finance Executive must ensure the following when the Admin Support Department submits the ROR to finance department:

1) ROR is duly completed and signed. 2) ROR is submitted together with the bank deposit slip. 3) The receipt book is brought for verification

i) All CPs should be issued with 2 receipt books and tutors with 1 receipt book at the start of each school term. The responsibility of the receipt books are to be taken seriously and kept under lock & key at all times. In the event of missing receipt books, it should be immediately notified to Education and Finance Executive.

j) Admin Support Officer/Finance Executive (Accounts Receivable) will conduct an audit check on the used and unused receipt books to ensure completeness on regular basis.

2.3.2 Adhoc Programmes

a) SINDA Programme Officers/Finance Executive would handle the collection of Cash / Cheques for the respective programmes.

b) SINDA Programme Officers/Finance Executive should issue a non-tax exempt receipt for all progamme fees received.

c) SINDA Programme Officers/Finance Executive should reconcile the cash collected against receipts issued at the end of the day.

d) Fee collections would be recorded in the Revenue Register and banked in within 3 working days.

e) All bank deposit slips are to be checked by the Finance Executive before they are filed.

2.4 OTHER INCOME

2.4.1 SINDA Membership Fees

a) Membership fees for SINDA is as follows:

1) Lifetime membership fee – S$ 1000.00 (One time payment). 2) Ordinary membership fee – S$ 60.00 (Annual payment).

b) A Non Tax exempt receipt would be issued immediately to the member for membership fees received in cash.

c) For membership fees received by cheque, the Non Tax Exempt receipt would be issued and mailed – within 7 working days to the member together with a letter signed by the Head of Finance division

d) If an error is made on the receipt, a new receipt shall be issued or the amendment has to be counter signed by a Senior Finance Executive. All originals of the cancelled receipts should be attached to the carbon copy of the receipt.

2.4.2 Billing & Claims

a) On a monthly basis, the Admin officer forwards to Finance Executive, the statement on facility usage by external users.

b) For regular claims, monthly letters would be sent to the external users concerned requesting them to make payment to SINDA for the usage of the facilities.

c) Finance Executive will bill the external users based on the usage.

d) Payment received should be updated in the billing register.

e) The Finance Executive should follow-up on overdue payments.

f) Programme claims should be done when necessary. Programme officer should provide the supporting details for Finance department to raise the necessary billing for the claims.

2.4.3 NEU PC Fees/IDA Funds

a) Finance Executive should take a copy of the Neu PC application forms from FSC department.

b) Finance Executive should verify gross family income & approval of Neu PC application and collect Neu PC fees accordingly. Receipts are issued for the Neu PC fees collected

c) Finance Executive should take copies of the receipt. A copy is given to NPC officer while Finance maintains a copy for file records.

d) Attach a photocopy of the receipt, bank deposit slip & copy of Neu PC application form, and file them accordingly

2.4.4 Control of receipt books

a) Two sets of receipt books are maintained by SINDA:

1) Tax Exempt Receipt Books 2) Non Tax Exempt Receipt Books

b) Tax Exempt Receipt

1) A Tax Exempt Receipt is issued strictly for donations. 2) Only Finance Executives can issue Tax Exempt Receipts unless CEO gives a special approval for fund raising events like Project Give.

c) Non Tax Exempt Receipts

1) A Non Tax Exempt receipt is issued for all programme fee collections, membership fees. 2) Finance Department should maintain a register book to record tax exempt and non-tax exempt receipt

book details. Issue & collection of receipt books to be recorded in the register. 3) The register book and receipt books are kept in the Finance Department under lock and key. 4) All used receipt books must be forwarded to Finance Department within a week. 5) Receipt book format is to be reviewed every year. 6) Used receipt books are to be forwarded to Finance Department for record and safekeeping. 7) All receipt books are to be maintained for a minimum of 5 years.

d) Lost receipt books

1) In the event the receipt book is lost, it should be reported to the staff’s Director/Senior Manager and Head of Finance immediately. 2) The staff in charge of the receipt books must lodge a complaint at the Police Station within two days. 3) The Head of Finance will then assess the situation and inform the CEO for appropriate action to be taken.

PRIVATE & CONFIDENTIAL 41 SINDA Finance Manual HR & Payroll

3 HR & PAYROLL

3.1 Payroll Administration

PURPOSE

1) To ensure that all payments to employees are made accurately and timely, and properly accounted for in the books.

2) To ensure that all statutory and voluntary deductions are properly accounted for and remitted to the relevant authorities.

3) To ensure that all reimbursements are properly claimed from the relevant authorities and accounted for in the books.

POLICIES

4) Employees are paid monthly on the 27th of every month by GIRO.

5) The computation of salary is done in accordance with the Employment Act

Monthly gross rate of pay Number of days the ______employee actually worked x in that month. Number of days on which the employee is required to work in that month

PROCEDURES

The payroll procedures are described below under the following headings:

a. New Staff Payment Procedures

b. Resigned Staff Payment Procedures

c. Temp Staff Payment Procedures

d. Seconded Officer Payment Procedures

e. Preparation of payroll Report

f. CPF Returns Report

a) NEW STAFF PAYMENT PROCEDURES

1) HR Department has to update the Easy Pay Enterprise (EPE) system with the profile of the new staff.

2) HR Department will also forward to Finance Payroll Executive by the 15th of every month, the following documents of all new staff.

 Copy of the Appointment Letter  Copy of the NRIC  Copy of Bank book/Bank Statement page indicating their Bank account Number

3) Finance Payroll Executive should verify the payroll report after updating the system. New staff’s first month salary will be pro- rated based on the date of joining.

4) Finance Payroll Executive will immediately update the New Staff hire listing for the year.

5) Finance Payroll Executive should file the documents after update the system.

b) RESIGNED STAFF PAYMENT PROCEDURES

1) HR Executive must inform Finance Payroll executive via email immediately on the resignation of any employee.

2) HR Executive must forward to the Finance Executive, the updated leave record of the resigned staff.

3) Finance Payroll Executive should update the list of resigned staff and compute the Final settlement of the resigned staff.

4) HR Executive should forward to Finance Payroll Executive, the following documents to process payment:

o Letter of acceptance of resignation o Exit Form signed by the department heads

5) Finance Payroll Executive will update the payroll system accordingly.

6) Staffs, who are relieved before the 15th of the month, are paid their salary on the 27th of the same month via GIRO.

7) Staffs, who are relieved after the 15th of the month, are paid their salary on the 5th of the following month via GIRO.

c) TEMP STAFF PROCEDURE

1) HR Executive should email Finance Payroll Executive before 25th of every month, the list of all temp staff hired for the month.

2) Finance Payroll Executive updates the Temp staff register.

3) HR Executive should forward to the Finance Executive, time sheets and respective temp staff approval forms of all temp staff before the first working day of the month.

4) Finance Payroll Executive will prepare the Temp staff salary computation after verifying the attendance records.

5) Senior Finance Executive should verify the Temp staff salary computation and prepare the Payment Vouchers and cheques.

d) SECONDED STAFF PAYMENT PROCEDURES

1) On receiving the invoice from the agency, Finance Payroll executive verifies the invoice and arranges for payment by GIRO within a week.

2) Finance Payroll executive prepares the Payment Voucher together with the DBS Ideal system listing and arrange for the on line bank verification and authorization.

3) Finance Payroll Executive should prepare the payment advice letters to the agency indicating the date of credit of the payment.

e) PREPARATION OF PAYROLL

1) HR Executive should send/confirm the following information to Finance Payroll Executive on a monthly basis.

a) New staff/Resigned staff list b) Change in SPR status (first year to second year) c) No pay leave adjustments d) Salary adjustments e) Anniversary Increments f) Department Transfer g) Relevant Staff allowances approvals (Transport/Mobile)

2) Finance Payroll Executive must check for the following adjustments/reimbursements before processing the payroll

a) List of staff in Telecoms Credit Co-operative scheme (TCC) as per the TCC payment advice for their savings/loan deductions.

b) Approved Transport/Dental reimbursement listing after verification of the claims.

c) Include the staff allowances as per entitlements indicated in the table below:

Grade Handphone Transport

CEO $200 $500

Asst Dir1 – Snr Dir $200 $300

Snr Mgr1 – Snr Mgr3 $150 $150

Asst Mgr1 – Mgr2 $100 Nil (will utilize E-cab vouchers) All Other Staff $70 Nil (will utilize E-cab vouchers)

For seconded staff who does not opt for SINDA’s payroll package the hand phone and transport expenses will be on reimbursement basis only.

3) Finance Payroll Executive will print the payroll summary report and ensure that all the salary adjustments have been included and accounted for accordingly.

4) Once Manager/Head of Finance has reconciled and verified the bank listing with the payroll summary, Finance Payroll Executive should upload the Payroll listing to DBS Ideal system for verifications and authorization for payment to staff via GIRO.

5) Once the salary has been credited, Finance Payroll Executive has to upload the payslip onto the E-portal.

f) CPF COMPUTATION

1) CPF submission must be done by the 10th of every subsequent month.

2) Finance Payroll Executive has to print the latest payroll summary report together with the CPF Payment Advice from the payroll system

3) Finance Payroll Executive will prepare the CPF Computation based on the latest salary report (inclusive of resigned/new staff during the month); will print the report and ensure that the CPF computation reconciles with the systems CPF report.

4) Once Head of Finance verifies the CPF report, Finance Payroll executive to prepare the Payment Voucher for CPF Returns and generate the CPF submission text file in the payroll system for online submission by Head of Finance to CPF Board.

PRIVATE & CONFIDENTIAL 47 SINDA Finance Manual Capital Expenditure

4. CAPITAL EXPENDITURE

4.1 FIXED ASSETS CLASSIFICATION

PURPOSE

4.1.1 This procedure sets as an internal control over fixed assets and to ensure proper accountability and control over the fixed assets. They also serve to demonstrate to the current and potential donors as well as beneficiaries that our assets are securely protected and that our management is efficient.

POLICY

4.1.2 All capital expenditures must be properly identified classified and recorded.

4.1.3 All capital expenditure must be classified as follows:

a) Computer Equipment

Hardware

4.1.3.1 This includes computers, servers, printers, scanners and other computer related peripheral equipments.

Software

4.1.3.2 This includes all customized softwares or off the shelf softwares which has a one time cost of $1,500 or more per package.

b) Office Equipment

4.1.3.3 This includes major moveable office equipment such as duplicators, fax machines, shredding machines, video cameras, phones, all minor equipment costing $200 to $500 per unit whose value per purchase is $10,000 or more.

c) Furniture and Fittings

4.1.3.4 This includes movable & immovable furniture and fittings, such as built in cabinets, desks, chairs, movable office partitioning, tables, etc.

d) Office Renovations

4.1.3.5 This includes facility modifications and building improvements.

4.2 FIXED ASSETS CAPITALISATION & DEPRECIATION

PURPOSE

4.2.1 This policy establishes a uniform capitalization and depreciation policy for accounting of fixed assets.

CAPITALISATION

POLICY

4.2.2 An asset costing more than $1,500 should be classified as a fixed Asset. The following criteria must be met:

1) It is purchased not for the purpose of trade but for utilization at office, classroom and/or administration. 2) It should have a useful life of more than one year. 3) It is not a consumable item e.g. stationery 4) The purchase cost is to include options if purchased at the same time as the original equipment. It should be stated at cost and include any other cost associated with bringing assets into working condition, e.g., installation cost. 5) Conversions/modifications to the equipment are to be capitalized and depreciated as a separate asset if and only if the conversion/modification increases the remaining useful life of the assets by more than one year. 6) All assets movements at SINDA premises should be tracked by the Asset Movement Update Form. 7) When an employee transfers to another department or terminates employment with SINDA, authorised staff

8) Fixed Assets checked out by the employee or assigned to the employee is returned to their manager. 9) A physical verification of fixed asset count is to be done on an annual basis by the Administration / Finance Department.

DEPRECIATION

4.2.3 Depreciation is computed on the straight-line method to write off the cost of assets over their estimated useful lives as follows:

a) Computer Equipment - 3 years b) Furniture and Fittings - 5 years c) Office Equipment - 5 years d) Office Renovation - 3 years

4.2.4 Depreciation will commence from the month the equipment was purchased. The same applies for any disposal of fixed assets. The asset is depreciated until the month the asset is disposed off.

4.3 FIXED ASSETS TAGGING, RECORDING, TRANSFER , DISPOSAL AND DE-RECOGNITION

PURPOSE

4.3.1 This policy and procedure is designed to ensure that all fixed assets are Properly identified, tagged and duly recorded in Fixed Asset Register to ensure internal control of fixed assets.

Fixed Asset Tagging

4.3.2 Every asset must have an identification tag with the following codes

a) Ownership code : SINDA b) Account Code :

 CE - Computer Equipment  OE- Office Equipment  FF - Furniture & Fixtures PRIVATE & CONFIDENTIAL 48 SINDA Finance Manual Capital Expenditure

c) Year of Purchase : 4 digits d) Serial No. : 4 digits

For example – Asset Tag No: SINDA/FF/2010/0020

a) Owned by SINDA b) It is a Furniture item c) It is purchased in 2010 d) It is the 20th furniture item purchased by SINDA during the year

Fixed Asset Register

4.3.3 A Fixed Assets Register shall be maintained with the following information:

a) Serial No b) Fixed Asset Tag No c) Asset Type d) Asset Description e) Location of Asset f) Year of Purchase g) Life of Asset h) Cost of Asset i) Annual Depreciation j) Accumulated Depreciation k) Net book value

DISPOSAL AND WRITING OFF OF ASSETS

PURPOSE

4.3.4. This procedure sets out on disposal and writing off of assets. This is to ensure that assets disposed are properly controlled and accounted for, and fully depreciated assets are regularly reviewed and written-off when appropriate.

POLICY

4.3.5. All disposals of fixed assets and the mode of disposal must be approved by the following authority:

a) Any item where the original cost of fixed assets purchased is above $20,000 has to be approved by the Treasurer.

b) Any item where the original cost of fixed purchased was below $20,000 is to be approved by the CEO.

4.3.6. When the Manager of the department in charge of assets is satisfied that the assets need to be written-off or disposed, he will raise the prescribed “Asset movement form”

4.3.7 Information regarding the original cost, book value and the date of purchase must be recorded by the Finance Executive, who would then submit the form to the key appointment holders in SINDA Executive Committee for approval.

4.3.8 Upon approval, copies of the “Asset Movement form” are to be forwarded to the respective executives as stated below:

a) Original - Finance Executive b) Copy - Administration & Logistic Executive

Once an application for disposal is approved and authorized, staff should proceed to dispose of the assets accordingly. All proceeds from the disposals of assets shall be handed over to the Finance Department.

PRIVATE & CONFIDENTIAL 52 SINDA Finance Manual Financial Management & Control

5 FINANCIAL MANAGEMENT & CONTROL

5.1 Budgetary Control

Purpose

To ensure that resources are allocated in such a way to optimize the fulfillment of the objectives of SINDA. This involves the continuous monitoring of accounting standards and budgetary targets by staff.

Objective

1.4.1 To ensure budget proposals are appropriately reviewed to meeting the purpose set out above. 2.4.1 The approved budget serves as a guide for financial management during the course of the year.

Procedure

3.4.1 Once the KAH and the EXCO has reviewed and adopted the budget, the Board of Trustees shall approve the annual budget.

5.2 Operational Controls

1.4.1 To ensure proper accounting records are maintained and the Financial Statements and requirements under the Recommended Accounting Practices, Accounting and Reporting for Charities (RAP6) are prepared in accordance with the Singapore Financial Reporting Standards .

2.4.1 To ensure periodical internal audits on controls, processes, key programmes and events.

5.3 Asset Management

1.4.1 To maintain sufficient reserves to ensure long term financial sustainability.

2.4.1 To set up funds1 for clear and justifiable needs.

3.4.1 To ensure that all endowment funds are not utilized or transferred to other funds unless approved by the Board of Trustees.

4.4.1 All Investments are made in accordance with an investment policy approved by the Board of Trustees. The investments shall be guided by competent professional legal and financial advice.

1 The General Endowment Fund is a form of restricted fund, held in Association’s trust where the capital is required to be invested or retained for approved purposes.

Accumulated Fund is the Association’s general operating fund and can be used for any of the Association’s activities

Sinking Fund is the designated to fund the upkeep and maintenance of the Association’s premises.

5.4 JOURNAL ENTRIES

PURPOSE

5.4.1 The purpose of this policy is to define transaction processing to the General Ledger via the Journal Entry for the recording of amounts to the appropriate accounts.

OBJECTIVE

. 5.4.2 To ensure that there is completeness and accuracy in the events that have occurred during the financial year.

POLICY & PROCEDURES

5.4.3 All known business transactions are to be recorded at the time they become known or can be reasonably estimated.

5.4.4 The documentation necessary to substantiate postings to the General Ledgers outside of automatic system generated posts at SINDA is the journal entry source documents. This documentation is necessary for determining the appropriateness of the postings, substantiating postings to external auditors. (Back-up documentation is essential for the validation of the appropriateness of an entry and for external audit purposes).

5.4.5 Each Journal Voucher must be signed by the officer who prepares the journal entry and be approved by the Manager Finance or the assigned Finance Officer.

5.4.6 Journal entries are to be kept with all the back-up documentation and filled by month and transaction number in the accounting department.

5.4.7 All financial statements (Trial Balance, Profit & Loss and Balance Sheet) are to be generated before the 12th of every month.

5.4.8 The financial reports (with comparison to the Budget) are to be forwarded to Sr. Managers and Directors by 15th of every month.

5.5 AUDIT

PURPOSE

5.5.1 To ensure that proper financial controls by recording of audit findings and to ensure that the recommendations are proposed.

OBJECTIVE

5.5.2 To ensure compliance of Financial policies and guidelines and accuracy and completeness of the Journal enteries.

PROCEDURES

5.5.3 The audit function would include:

a) Reviewing accounting and operational activities b) Evaluate the adequacy and effectiveness of internal controls c) Ascertain that duties and activities are consistent with association's objectives d) Performing special reviews at the request of management e) Reporting audit findings and making recommendations f) Reviewing actions taken in response to audit findings

5.5.4 Scope of work:

a) Communicate with staff/managers on the operational systems, evaluate controls and identify weakness in the system b) Draft audit steps for validation of selected items to ensure compliance c) Verification of accounting records and reports to ensure accuracy. Verification includes checking to source documents if necessary.

5.5.5 Audit can be categorised into the following:

a) Audit of financial services b) Systems review c) Special Audit Investigation

5.5.6 Scope of audit can cover accounting and operational aspects of some of the following areas:

a) Receipts b) Payments c) Accounts receivable/payables d) Cash/Bank transactions e) The CEO would also initiate surprise audits periodically.

5.6 CASH AUDITS (STEP AND TEACH)

PROCEDURES

5.6.2 The audits are conducted thrice a year:

a) For 2-day registration (January) b) Term I (January to May) c) Term II (June to October)

a. Officer must ensure all the used and unused receipt books are in. Check the number of receipt books against the receipt books taken from Finance.

b. When the CPs come down to SINDA on a monthly basis, they would summit the Monthly Record of Receipt together with the deposit slips. In the record of receipt the following information is captured - students name, NRIC No, Class, amount paid, receipt number issued and payment details.

c. Admin Support Unit officers would prepare Monthly Revenue Report based on the Record of Receipts against the deposit slips. The information captured in this report - receipt no, centre name, amount in the Record of Receipt, amount in deposit slip, date of deposit. (The total of the collections must tally to the deposit slip).

d. Subsequently at mid and year end a Cash audit would be carried out. This is to check on the receipts issued (amount) against the Monthly Revenue Report. Tabulate the total amount collected in each receipt book (Amount would be written on the cover of the receipt book.)

e. The following checks would be done:

i. Ensure receipt number must be in running order. PRIVATE & CONFIDENTIAL 57 SINDA Finance Manual Financial Management & Control

ii. To check the total amount of the receipts issued tallies to the Monthly Revenue Report.

f. If the receipt number has been cancelled, it must be reflected in the remarks column. (The original receipt must be attached together with the carbon receipt.) If the receipt number is not issued, the unused receipt number must be indicated under the remarks column.

g. Upon completion of the cash audits, all discrepancies will be highlighted to management for necessary follow ups action.

This Finance Manual is governed by the following References:

1) Singapore Financial Reporting Standards (FRS)

. Presentation of Financial Statements – FRS1 . Accounting Policies, Changes in Accounting Estimates and Errors – FRS8 . Revenue Recognition - FRS18 . Employee Benefits – FRS19 . Property, Plant and Equipment – FRS16 . Accounting for Government Grants and Disclosure of Government Assistance – FRS20 . Financial Instruments : Recognition and Measurement – FRS39 . Financial Instruments : Disclosures – FRS107

2) Recommended Accounting Practice 6 (RAP6), Accounting and Reporting by Charities

3) Charities Act (IPC) – Regulations 8 & 9

4) Income Tax Act – Institution of a Public Character (IPC)

5) Employment Act – Part III

6) Code of Governance – For Charities & IPCs

7) Reserve Policy( ARC Meeting)

PRIVATE & CONFIDENTIAL 59