Organisational policies and procedures What is the purpose of policies and procedures and who does...

Organisational policies and procedures

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

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

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

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

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

• 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

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

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

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

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.

• 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

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

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

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

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

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

managers

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

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

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

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

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

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

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

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

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

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 staffingFraud prevention – overstating of hours workedEffective working relations Individual well-being, work-life-balance

encouraging increased production Work planning and scheduling

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