WDMOC inc. A0007039H Financial Policy and Procedures Manual
Introduction
Warrnambool & District Motorcycle Owners Club inc (referenced as WDMOC inc from now on) Financial Policy and Procedure Manual provides the policies and procedures for financial transactions within the club which must be followed by all members. It also provides guidelines WDMOC inc will use to administer these policies, with the correct procedure to follow.
WDMOC inc will keep all financial policies current and relevant. From time to time, it will be necessary to modify and amend some sections of the policies and procedures, or to add new procedures.
Any suggestions, recommendations or feedback on the policies and procedures in this manual are welcome.
These policies and procedures apply to all members.
Finance Authorisation Policy Version: rev 2 Date: 31/05/2024
Purpose of the Policy
All finance transactions as noted in this policy are to be authorised by a Committee person prior to the transaction being undertaken.
This policy is to be read in conjunction with other specific finance policies where relevant.
Procedures Prior to any of the following finance transactions being undertaken, the authorising person noted must authorise the transaction.
Where additional policy is noted, this policy must also be adhered to when undertaking the finance transaction.
Table 1
Bank Account Policy Version: rev 2 Date: 31/05/2024
Purpose of the Policy
This policy sets out the requirements for use of bank accounts, including opening, closing, authorisation, variations to terms and conditions, reconciliation of bank accounts and bank account transactions.
Procedures
Opening Bank Accounts
Any new bank accounts to be opened for the club must have the authorisation of the Committee.
For each new bank account opened, the financial system must be updated, and the bank account registered by the Committee.
Bank Account Authorisations
For monies withdrawn from any bank account, whether by cheque (up to 30 June 2024), EFT or other online payment method, there must be two Committee persons authorising each payment.
The authorised persons for bank account payments are any two members of the Committee.
Each payment made must be supported by invoice, receipt or other appropriate documentation and the authorisations must be attached to this documentation prior to payment.
Variations to Bank Account Terms and Conditions
Any variations to banking arrangements can be made or varied by the Committee.
The Committee is responsible for updating the financial system and/or bank account register with the new information.
Closing Bank Accounts
Where it is decided that a bank account is no longer necessary, the Committee will authorise the closure of the bank account.
The Treasurer will then be required to complete the following:
· ensure all transactions with respect to the account (including cheques drawn) have been completed;
· lodge with the bank a letter, signed by Committee (authorised signatories) advising of the closure of the account;
· meet the bank's requirements with respect to account closure; and
· update the financial system and bank account register.
Bank Account Transactions
All deposits received must be banked within 7 days.
Unallocated direct deposits of more than one month will be investigated fully to determine source of deposit. Where the source cannot be identified, the deposit will be allocated to “suspense” account to authorise payments.
Cheques outstanding for more than 3 months, will be reallocated back to the club through the financial system.
Where a payment stop on a cheque is required, this will be authorised by the Committee.
The Committee will be responsible for carrying out the following duties regarding payment stop on a cheque:
· ensuring the cheque has not already been presented at the bank
· getting authorisation to action the stop payment using appropriate forms from the bank
· ensuring the bank receives notification of the stop payment notice
· receiving confirmation of action from the bank of the stop payment
· ensuring the details of the stop payment are kept in the stop payment folder.
Petty Cash Policy. Version: rev 2 Date: 31/05/2024
Purpose of the Policy
Petty cash should be used to pay for small club expenses up to $100 where payments through accounts payable or credit card are not justified or appropriate.
Procedures
Issuing Petty Cash
Petty cash vouchers must be completed before any cash is taken from the petty cash float.
Only up to $100 can be disbursed at any one time.
All petty cash vouchers issued must be approved by the Committee.
Once the petty cash is spent, a receipt or invoice should be attached to the voucher and returned to petty cash with any balance of monies unspent.
All completed vouchers must have the following details included:
· issue date of voucher
· name of person issued the voucher
· amount of monies disbursed
· details of expense
· tax invoice or receipt
· signature of approval person.
Reconciling Petty Cash
Petty cash float is to be reconciled monthly, this is the responsibility of the Treasurer.
All petty cash expenditure must be entered into the financial system once the petty cash has been reconciled.
The balance of monies and vouchers must equal the petty cash float amount before reimbursement can be made.
Reimbursement of petty cash will be authorised by the Committee.
Purchasing Policy. Version: rev 2 Date: 31/05/2024
Purpose of the Policy
This policy provides guidelines for the purchase of goods, services, equipment and assets for the club.
This policy is applicable for all purchases over $100.
Where items to be purchased are less than $100, then the petty cash policy is to be used.
Procedures
Request for Purchase
All purchases for Club items must be requested through a purchase order.
All items over the value of $500 must be supplied by authorised suppliers.
For items over the value of $1000 three quotations must be provided.
A request for purchase must address the following criteria:
· purchasing that promotes environmental sustainability
· value for money
· preference to Australian/ locally produced.
All purchase orders must be authorised within the following guidelines:
Refer to Table 1
All authorised purchase orders are to be copied and one kept by Treasurer, with estimated payment date and one to the Committee who will check receipt of purchase against the purchase order when received.
Equipment Asset Purchases
All equipment and asset purchases must be entered in the financial system by a Committee member with the following details included:
· date of purchase
· supplier
· make, model, warranty/guarantee information.
Service Agreements. All agreements for the provision of services to the Club of more than $100 are to abide by this policy.
Receipt of Purchases. All purchases received are to be checked against purchase order and noted as correctly supplied. Once correct receipt has been recorded, this will be recorded on purchase order and forwarded to the Treasurer for payment of purchase.
The WDMOC inc Financial Policy and Procedure Manual adopted at Board Meeting held on 30 May 2024
Endorsed by General Meeting 11 July 2024
Introduction
Warrnambool & District Motorcycle Owners Club inc (referenced as WDMOC inc from now on) Financial Policy and Procedure Manual provides the policies and procedures for financial transactions within the club which must be followed by all members. It also provides guidelines WDMOC inc will use to administer these policies, with the correct procedure to follow.
WDMOC inc will keep all financial policies current and relevant. From time to time, it will be necessary to modify and amend some sections of the policies and procedures, or to add new procedures.
Any suggestions, recommendations or feedback on the policies and procedures in this manual are welcome.
These policies and procedures apply to all members.
Finance Authorisation Policy Version: rev 2 Date: 31/05/2024
Purpose of the Policy
All finance transactions as noted in this policy are to be authorised by a Committee person prior to the transaction being undertaken.
This policy is to be read in conjunction with other specific finance policies where relevant.
Procedures Prior to any of the following finance transactions being undertaken, the authorising person noted must authorise the transaction.
Where additional policy is noted, this policy must also be adhered to when undertaking the finance transaction.
Table 1
Bank Account Policy Version: rev 2 Date: 31/05/2024
Purpose of the Policy
This policy sets out the requirements for use of bank accounts, including opening, closing, authorisation, variations to terms and conditions, reconciliation of bank accounts and bank account transactions.
Procedures
Opening Bank Accounts
Any new bank accounts to be opened for the club must have the authorisation of the Committee.
For each new bank account opened, the financial system must be updated, and the bank account registered by the Committee.
Bank Account Authorisations
For monies withdrawn from any bank account, whether by cheque (up to 30 June 2024), EFT or other online payment method, there must be two Committee persons authorising each payment.
The authorised persons for bank account payments are any two members of the Committee.
Each payment made must be supported by invoice, receipt or other appropriate documentation and the authorisations must be attached to this documentation prior to payment.
Variations to Bank Account Terms and Conditions
Any variations to banking arrangements can be made or varied by the Committee.
The Committee is responsible for updating the financial system and/or bank account register with the new information.
Closing Bank Accounts
Where it is decided that a bank account is no longer necessary, the Committee will authorise the closure of the bank account.
The Treasurer will then be required to complete the following:
· ensure all transactions with respect to the account (including cheques drawn) have been completed;
· lodge with the bank a letter, signed by Committee (authorised signatories) advising of the closure of the account;
· meet the bank's requirements with respect to account closure; and
· update the financial system and bank account register.
Bank Account Transactions
All deposits received must be banked within 7 days.
Unallocated direct deposits of more than one month will be investigated fully to determine source of deposit. Where the source cannot be identified, the deposit will be allocated to “suspense” account to authorise payments.
Cheques outstanding for more than 3 months, will be reallocated back to the club through the financial system.
Where a payment stop on a cheque is required, this will be authorised by the Committee.
The Committee will be responsible for carrying out the following duties regarding payment stop on a cheque:
· ensuring the cheque has not already been presented at the bank
· getting authorisation to action the stop payment using appropriate forms from the bank
· ensuring the bank receives notification of the stop payment notice
· receiving confirmation of action from the bank of the stop payment
· ensuring the details of the stop payment are kept in the stop payment folder.
Petty Cash Policy. Version: rev 2 Date: 31/05/2024
Purpose of the Policy
Petty cash should be used to pay for small club expenses up to $100 where payments through accounts payable or credit card are not justified or appropriate.
Procedures
Issuing Petty Cash
Petty cash vouchers must be completed before any cash is taken from the petty cash float.
Only up to $100 can be disbursed at any one time.
All petty cash vouchers issued must be approved by the Committee.
Once the petty cash is spent, a receipt or invoice should be attached to the voucher and returned to petty cash with any balance of monies unspent.
All completed vouchers must have the following details included:
· issue date of voucher
· name of person issued the voucher
· amount of monies disbursed
· details of expense
· tax invoice or receipt
· signature of approval person.
Reconciling Petty Cash
Petty cash float is to be reconciled monthly, this is the responsibility of the Treasurer.
All petty cash expenditure must be entered into the financial system once the petty cash has been reconciled.
The balance of monies and vouchers must equal the petty cash float amount before reimbursement can be made.
Reimbursement of petty cash will be authorised by the Committee.
Purchasing Policy. Version: rev 2 Date: 31/05/2024
Purpose of the Policy
This policy provides guidelines for the purchase of goods, services, equipment and assets for the club.
This policy is applicable for all purchases over $100.
Where items to be purchased are less than $100, then the petty cash policy is to be used.
Procedures
Request for Purchase
All purchases for Club items must be requested through a purchase order.
All items over the value of $500 must be supplied by authorised suppliers.
For items over the value of $1000 three quotations must be provided.
A request for purchase must address the following criteria:
· purchasing that promotes environmental sustainability
· value for money
· preference to Australian/ locally produced.
All purchase orders must be authorised within the following guidelines:
Refer to Table 1
All authorised purchase orders are to be copied and one kept by Treasurer, with estimated payment date and one to the Committee who will check receipt of purchase against the purchase order when received.
Equipment Asset Purchases
All equipment and asset purchases must be entered in the financial system by a Committee member with the following details included:
· date of purchase
· supplier
· make, model, warranty/guarantee information.
Service Agreements. All agreements for the provision of services to the Club of more than $100 are to abide by this policy.
Receipt of Purchases. All purchases received are to be checked against purchase order and noted as correctly supplied. Once correct receipt has been recorded, this will be recorded on purchase order and forwarded to the Treasurer for payment of purchase.
The WDMOC inc Financial Policy and Procedure Manual adopted at Board Meeting held on 30 May 2024
Endorsed by General Meeting 11 July 2024
