Agenda. 1. Policies & Procedures for NUSSU & Clubs. 2. Budget preparation & monitoring. 3. Sharing of past audit observations

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1 Agenda 1. Policies & Procedures for NUSSU & Clubs 2. Budget preparation & monitoring 3. Sharing of past audit observations 4. Expense claim procedures 5. Other Points to note 1

2 Summary of Policies & Procedures for NUSSU & Clubs Purpose: Quick reference guide to ensure that all students are familiar with these key policies and procedures and to comply with them 2

3 Finance Forms (for NUSSU & Clubs) Updated finance forms can be downloaded from the following link: Out-dated/old/modified versions of the forms should not be used 3

4 Budget Preparation and Submission Timeline for AY 14/15 Budget Week 1 Sep 2014 Week 3 Sep 2014 Week 4 Sep 2014 Week 1 Oct 2014 Budget Preparation tasks OFS will send budget template to NUSSU & Clubs for completion Deadline for submission of completed budget templates to OFS Forward to OSA for Dean of Students approval Upload approved budget in SAP AY 14/15 Budget Period 1 st Oct th Sep

5 Budget Preparation and Submission 1. Subscription fees / Income OFS will allocate the applicable annual subscription fees and entrance fees (for NUSSU) to each club Projected income (eg. Sale of tickets, Participation fees and Sponsorships) will be estimated reasonably 2. Budget preparation Budget template will be provided by OFS Dean of Students approval is required for the proposed budget Any deficit projected must be supplemented by a drawdown from the club s accumulated reserves, to be approved by the Dean of Students A standard template letter will be used for submission to the Dean of Students At the end of each AY, any resulting (actual) surplus will be credited into the club s accumulated reserves Shortfall in individual WBS should be first made good from other WBS within the same AY, to be approved by OSA officier 5

6 Budget Monitoring Budget monitoring and review Monthly statements will be distributed to the clubs Hon Fin for clubs monthly review (first week of the following month) The club is required to present a variance report (actuals vs budget) after the end of the AY for OSA s review, using a template provided by OFS Expenses cannot exceed the SAP posted budget amounts (based on the approved budget) All expense claims should be done on a timely basis (within 7 working days) Meeting to review AY 14/15 To be scheduled in Oct

7 Budget Monitoring Budget Reviews (using variance report at end of BP) Variance analysis with clear and adequate explanation(s) required for budget reviews if the variance exceeds these limits: NUSSU Constituent Clubs >10% and >$10,000 >10% and >$1,000 Timeline AY 14/15 Week 2 Oct 2014 Week 3 Oct 2014 Week 4 Oct 2014 Budget review tasks Send budget vs actual budget review templates to NUSSU & Clubs to provide a summary of the budget period and explanations for highlighted variance(s) Deadline for submission of completed budget review templates to OFS, which will be forwarded to OSA for review Budget review meetings 7

8 Points to note (budget) 1. Insufficient budget Budget transfer (between WBS within budget period) Obtain OSA officer approval Budget Supplement Obtain Dean of Students approval to request for additional budget Draw down from Reserve Write to Dean of Students to request for use of reserve 8

9 Points to note (budget) 2. Unutilised Budget At the end of each AY, any unutilised budget in the WBS will not be carried forward 3. Handover from outgoing to incoming management committees Financial procedures and financial information for budget preparation and reviews should be documented and included as part of the handover process 9

10 Points from past audit observations Procurement Purchase and installation of lockers No competitive quotes and no approval for waiver from competition were obtained Receipt of goods was not supported by duly acknowledged delivery order Dinner & Dance Meals Rental of musical equipment No competitive quotes and no approval for waiver from competition were obtained Printing of planners Lowest quote not selected. Reason given was that vendor was able to provide a sample before the print job. However, no indication that lowest bidder was unable to fulfill this requirement Receipt of goods was not supported by duly acknowledged delivery order 10

11 Points from past audit observations Procurement Printing of jackets Although 3 quotations were obtained, there were not comparable as the vendors quoted based on different quantities of 200, 350 & 1,000 pieces. Vendor which quoted 1,000 pieces was selected based on its lowest unit price Receipt of goods was not supported by duly acknowledged delivery order 11

12 Cash collections Points from past audit observations OFS issues blank official receipt books to student clubs for acknowledgement of monies collected. Student clubs have to ensure that monies collected are properly accounted for (via issuance of receipts or receipt control sheet / collection form) and duly banked-in and unused receipts returned to OFS. Student clubs have to confirm / account for all unused receipts on a monthly basis. Cash collected and offset against expenses Cash collected (eg from ticket sales) cannot be used for payment of expenses (eg for catering) even though it is for the same event. The cash collected should be banked in promptly and invoices submitted to OFS-Shared Financial Services Centre (SFSC) for payment of expenses (must be handled separately as 2 distinct transactions). 12

13 Points from past audit observations Proper Approving and Signing Authority Approving authority for procurement and for payments are distinct and separate All signing authority for NUSSU & Clubs resides with OSA 13

14 Expense Claims what to look out for Invoice billed to NUS Original invoice billed to NUS/Clubs. Scanned copy of the original invoices is not acceptable Non-original invoice has to be certified true copy from the vendor Evidence of goods already delivered and services rendered Delivery order (DO) should be attached Goods/services received by box signed by person responsible for receipt Quantity stated in the invoice should be equal / not exceed the amount stated in the DO Unit price stated in the invoice should be equal or less than the written quotation. Description of the goods should be a match with the DO The invoice is arithmetically correct Payment of cash advances should be avoided Timely submission Correct account codes of GLs & WBS Invoice must be verified / signed in the Invoice verified by box after verifying that the invoice is in order 14

15 Expense Claims what to look out for Invoice not billed to NUS / Official receipts Original invoice (or certified true copy) with paid stamp or Official Receipts must be produced for reimbursements Proper declaration / authorisation of payment to the named payee (eg invoice billed to another student who is not the named payee) Goods/services received by box signed by person responsible for receipt Invoice must be verified / signed in the Invoice verified by box after verifying that the invoice is in order Proper declaration if receipts are not available/lost Timely submission Correct account coding of GLs & WBS Proper supporting documentation / submission on the award of cash prizes; acknowledgement of receipt of cash prizes from award winners Payee name / student matric number must stated in full and accurately Any corrections made on the reimbursement forms must be properly done and endorsed Claim amount must match cash paid amount (check for rounding errors) A partial claim must be explicitly stated (if there is a difference between claim form and receipt) 15

16 Common Errors made in students claims 1. Wrong amount input on Reimbursement form 2. Contract Amount Exceeded 3. Bank account details not updated in ISIS 4. Rounding up/down of amount on Reimbursement forms 5. Split Purchases 6. Invalid WBS 16

17 Other points to note 1. Accruals Accruals Required at end of: -Academic Year (AY) Procedure *Timeline for submission -Goods and services incurred but pending receipt of invoices from vendor -Goods and services committed and yet to be received -Submit list of accruals to OFS before end of AY* -Within 1 month after the end of AY, submit invoices that have been accrued for payment to OFS -If 1 month timeline is exceeded, OFS to be advised if accrual is still required AY 14/15 To be advised later 17

18 Other points to note 2. Prepayments Advance or installment payments for goods/services not received yet at the time of payment Similar to the procedure for payment of invoices, prepayments to be submitted to SFSC-Accounts payable for posting to prepayment account code Eg Deposit paid in advance in order to secure an event venue (NUSSU and Clubs to indicate on the invoice that it is a prepayment) Upon receipt of goods/ services, prepayment amount will then be reversed from the prepayment account and into the relevant expense account code(s). Prepayments should be few as NUSSU & Clubs should not normally pay in advance for goods/services not received yet 18

19 Other points to note 3. Making payment for Inter-dept billing vs external party (3 rd party) billing An inter-department sale is where goods are sold / services are rendered by one NUS dept to another NUS dept NUSSU & Clubs are part of NUS departments Procedure Inter-dept Invoice submitted for settlement through journal entries payment should not be made directly to billing party External party GST GST is not applicable GST applies Examples Accommodation charges for camps, billed by Halls/Residences Rental charges on university premises Invoice submitted for payment to external vendor Catering charges, billed by external caterer 4. Charging of GST for all sales (including cash sales) NUS is GST registered, thus any billing to external parties is subjected to GST Any sales (including cash sales) is subjected to GST 19

20 Other points to note 5. Sponsorships vs Donations Sponsorships Contributions with tangible benefits conferred (eg. Display of banner, Advertising slot in event materials) Subject to output GST Recognized under Income WBS Income WBS is not carried forward to next BP Donations Monetary contributions with no benefits conferred Still considered to be outright donations even if there is voluntary acknowledgement (eg. In newsletter) Tax donation receipts to be issued Outside scope of GST Recognized under Donation WBS Donations WBS is carried forward to next BP 20

21 Other points to note 6. Collections of cash and subsequent banking to OFS All cheque/cash collections are to be deposited at the cashier office at the earlier of the following: a) Total cash collections of SGD1,000 and/or cheque collections of SGD15,000 b) One week from the date of collection. Each club is designated an official NUS DBS Bank account Members may consult their Club President / Finance Secretary on the bank account details and any funds transferred to the bank account should be communicated with the Club President / Finance Secretary These DBS bank accounts will function purely as collection boxes ie they can only accept incoming funds 21

22 Other points to note 7. Use of accumulated surplus for Investment (to be submitted to OFS one month before subscription date) Short Term Investment Portfolio Long Term Investment Portfolio Lock-up period (new subscription) Notice period for withdrawal 6 months 24 months 90 days Minimum subscription In lots of $50,000 Subscription & Redemption dates First business day of each calendar quarter (i.e. first business day of Jan, Apr, Jul, Oct) 22

23 Other points to note 8. Useful Links AY 14/15 Budget Oct 2014 Complete Budget review template (for period ended AY13/14) Budget Oct - Nov 2014 Budget review meetings 23

24 Other points to note 9. Useful Links You may find more detailed information on the various Finance Standard Operating Procedures and FAQ at 24