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