STANDING ORDER (FINANCIAL) 35 SUBMISSION, CHECKING AND PAYMENT OF CLAIMS

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1 STANDING ORDER (FINANCIAL) 35 SUBMISSION, CHECKING AND PAYMENT OF CLAIMS 1. Background The purpose of this Order is to set out instructions and procedures regarding the submission, checking and payment of claims in the Service. 2. Definitions In this Order, unless the context otherwise indicates (a) pay point means an office at a division, province, station or unit, as determined by a Provincial Head: Financial Services or a Financial Manager of a division of Head Office, where the Polfin System is not available and where claims are submitted; polfin service point means a financial office, which could include a standing advance office, where claims received from stations, units, other offices and employees in the service area of a polfin service point are submitted, checked, and processed on the Polfin System for payment; and Polfin System means the South African Police Service Financial Computer System. 3. Requirements (1) A claim must be submitted on a miscellaneous claim form (SAPS 174) or a subsistance and transport expenses claim form (SAPS 157). Such forms must be completed in accordance with the instructions set out in SO(F) 41 Domestic travelling and subsistence expenses, and SO(F) 48 Miscellaneous claims. (2) All payments above the amount of R must be paid by means of the electronic method of payment. 4. Dealing with claims at pay points (1) Keeping record of claims (a) Seeing that a pay point does not have access to the Polfin System, registers must be kept for the purpose to register claims. For the purpose of registration and record keeping the following registers must be kept at a pay point: (i) a claims register (SAPS 278); an index of names register (B 22); and Claim Section : Financial Services V01.00 Page 1 of 13

2 an index of claims register (B 16). These registers must be completed as set out in annexures A to C. The relevant Provincial Head: Financial Services or Financial Manager of a division of Head Office must, in writing designate an employee to maintain such registers. (2) Submission of claims (a) A claim must be submitted for payment by the employee at the relevant pay point within seven (7) days from the date on which the claim arose, the service was rendered or the trip was completed. All reasonable steps must be taken to submit and conclude a claim in the financial year in which it arose. Upon receipt of a claim at a pay point the employee designated for the purpose must follow the following procedure: 1 Complete the persal number, rank and name of the person or institution in the applicable columns of the index of names register (B22). 2 Complete the following particulars in the index of claims register (B16): the claim number, starting at no 1 on 1 April of every financial year; the persal number, rank and name of the employee; and the page number of the page in the claims register (SAPS 278) where the claim was entered. 3 Complete the following particulars in the claims register (SAPS 278): the claim number that was allocated to the claim in the index of claims register (B 16); the period of the claim; the nature of the claim; and the amount claimed. 4 Complete a schedule list (SAPS 167) regarding claims that have not yet been sent in for payment. The schedule number must be recorded in the index of claims register (B16) as soon as the claim is sent to the polfin service point or standing advance office. Claim Section : Financial Services V01.00 Page 2 of 13

3 5 Sent the claims, together with the schedule list (SAPS 167), to the polfin service point or standing advance office. (3) Scheduling claims for payment (a) The commander of a pay point must check at least twice a week that all unscheduled claims entered in the claims register (SAPS 278) are listed in numerical sequence on a schedule list (SAPS 167). The schedule list (SAPS 167) must be completed in triplicate. The claims and two (2) copies of the schedule list (SAPS 167) must be sent to the relevant polfin service point or standing advance office. The third copy must be retained as verification. The schedule lists (SAPS 167) must be numbered consecutively, starting with 1 on 1 April of every financial year. The commander at the pay point must ensure that the registers are checked every week. (4) Receipt of schedule list from pay point (a) The commander of a polfin service point must designate an employee to process claims on the Polfin System. The designated employee must follow the following procedure upon receipt of a schedule list (SAPS 167) from a pay point : 1 Verify the schedule list (SAPS 167) with the claims. 2 Acknowledge receipt of the original schedule list (SAPS 167). 3 Return the original schedule list (SAPS 167) on which receipt was acknowledged to the office of origin. 4 Retain the copy of the schedule list (SAPS 167) as verification. 5 Deal with the claims as set out in paragraph 5(3) to (5). Claim Section : Financial Services V01.00 Page 3 of 13

4 (5) Completion of registers upon payment of claims (a) The commander of the pay point concerned or an employee designated by him or her must collect the whole amount of the claims from the keeper of the standing advance. (d) (e) A commander of a pay point must ensure that claimants are available to receive the payments before cash is collected from a keeper of standing advance. Upon receipt of the cash the commander of the pay point must record the relevant particulars in the remittance register. When the commander of the pay point receives cash for the payment of claims and it cannot be paid to the claimants immediately, a pay point that does not have a safe must return the cash within 48 hours, and a pay point that has a safe must return the cash within 96 hours to the keeper of the standing advance. When a pay point receives cash for the payment of a claim the employee designated for this purpose must follow the following procedure: 1 Complete columns 5 and 6 of the claims register (SAPS 278). 2 Change the amount in column 4 with a red pen if the amount entered in column 4 differs from the amount to be paid out. The claimant and the designated employee initial the correction. 3 Hand over the cash to the claimant. 4 Obtain the signature of the claimant or his or her proxy per short receipt (SAPS 152) who received the money in column 6 of the claims register (SAPD 278). 5 Complete the date on which the payment is made in column 6 of the claims register (SAPD 278). 6 Complete the computer payment number that is indicated on the schedule list (SAPS 167) in column 6 of the claims register (SAPD 278). 5. Dealing with claims at polfin service points (1) The allocation of polfin service points (a) A polfin service point is allocated by the Head: Financial Services or an employee designated by him or her. Claim Section : Financial Services V01.00 Page 4 of 13

5 The Head: Financial Services, Provincial Heads: Financial Services, and Financial Managers of divisions of Head Office must in writing designate employees at polfin service points to perform the following functions: (i) processing of claims; checking of claims; and granting of authorization of payments. The following criteria must be used when the allocation of a polfin service point is considered: (i) the availability of trained financial personnel; (iv) the availability of computer equipment; the number of claimants; and the distances that must be travelled to submit claims. (2) Submission of claims (a) A claim for payment must be submitted by the employee to the relevant polfin service point within fourteen (14) days from the date on which the claim arose, the service was rendered or the trip was completed. All reasonable steps must be taken to submit and conclude a claim in the financial year in which it arose. (3) Checking of claims (a) A designated employee must, before he or she processes a claim on the Polfin System (i) check that the claim form is completed in full and signed; check that the claim is substantiated by all the necessary documentary proof; compare the particulars of the claim with the particulars of the previous claims of the claimant on the Polfin System to ensure that the claim has not already been submitted and paid; (iv) compare the processed allocation regarding the responsibility, objective and expenditure item codes with the allocation entered on the claim form, and check the corroborative documents; and Claim Section : Financial Services V01.00 Page 5 of 13

6 (v) ensure that certificates by commanders in support of the claims correspond to the particulars of the claim, and that the certificates were given by commanders who actually have knowledge of the particulars. If it is found that a certificate is incorrect in any way or if there are reasonable grounds to question the correctness of a certificate, the claim must be returned to the employee who signed the certificate. Such employee must make the necessary changes on the claim or certificates and initial them. If a commander supplies an incorrect certificate and this leads to an unauthorized payment or overpayment, such commander will be held liable for any losses or damages suffered by the Service. If it is found that periods are duplicated on a claim or if a claim contains any other irregularities the designated employee or the keeper of the standing advance must return the claim to the commander of the claimant for an explanation in writing. If any irregularities are found the claim may not be processed. (4) Processing of claims After the designated employee has checked the claims as set out in subparagraph (3) and found it to be in order, he or she must follow the following procedure: 1 Capture the particulars of the claim on the Polfin System against the Persal number of the claimant, polfin civil number or polfin supplier s code. 2 If a claimant does not have a persal number or polfin supplier s code, a polfin civil number must be allocated to a claimant by registering him or her on the Polfin System against his or her identity number. The Polfin System will allocate a polfin civil number to the claimant. 3 Attach the printouts generated by the computer of the particulars of the claim, and which contain the claim number and the allocation, to the front of the original claim form. 4 Write the claim number generated by the computer on the claim form with a red pen. 5 Sign and write the date on the relevant certificate on the claim form which provides for the employee in charge of claims, to confirm the processing of the claim. Claim Section : Financial Services V01.00 Page 6 of 13

7 (5) Methods of processing (a) Processing of claims when the amount of the claim and the advance are the same When a claim and the amount of the advance are the same, the following procedure must be followed: 1 Capture the claim on the Polfin System. 2 Link the outstanding advance that is equal to the amount of the claim by marking the type of advance during the processing of the claim. The amount of the claim will consequently settle the amount outstanding on the advance, with the result that payment is not made to the claimant. 3 Schedule and perform the function for the payment run on the Polfin System. The standing advance will be supplemented with the amount of the advance by means of the computer. Processing of claims when the amount of the claim is bigger than the amount of the advance (i) When a claim is bigger than the amount of the advance the following procedure must be followed: 1 Capture the claim on the Polfin System. 2 Link the amount of the outstanding advance to the relevant claim by marking the advance. 3 Mark the balance of the claim for cash or direct payment into the bank account (ACB). 4 Send the claim to the payment office. 5 Schedule and capture the function for the payment run on the Polfin System. The standing advance will be supplemented with the amount of the advance by means of the computer. The financial officer at the office where the claim is processed must check and approve the claim for payment. Claim Section : Financial Services V01.00 Page 7 of 13

8 If the amount claimed is paid in cash, the pay clerk must carry out the payment function on the Polfin System and must ensure that the claimant complete and sign for the receipt of the cash on the computer-generated receipt. Processing of claims when the claim is smaller than the amount of the advance (i) When a claim is smaller than the amount of the advance the following procedure must followed: 1 Capture the claim on the Polfin System. 2 Link the amount of the outstanding advance to the relevant claim by marking the advance during the processing of the claim. 3 Pay the claim by marking the type of claim as cash or recover during the processing of the claim. If marked cash: The amount which the cash advance exceeds the amount of the claim, must immediately be paid in cash to the keeper of standing advance. If marked recover: The amount of the claim will reduce the amount of the advance by means of the computer and the shortage of the advance will still be indicated as an outstanding part on the advance. The outstanding advance must be paid before the expected claim date. 4 Ensure that the computer receipt is signed by the claimant and/or pay clerk. When a portion of the advance is not covered by the claim and the outstanding portion is due by the claimant, the outstanding amount can be paid by the claimant by means of a debt account. When the claimant repays the outstanding portion of the advance, a Polfin computer-generated receipt must be issued to the claimant regarding the repayment of the advance. Claim Section : Financial Services V01.00 Page 8 of 13

9 (iv) (v) The standing advance is supplemented by the amount of the claim or the amount of the advance in instances where a debt account has been opened. If the claimant repays the outstanding portion of the advance that is registered as a debt account on the debtors system, the amount must not be received on the advance system, but must be deposited in the prescribed manner into the debtors system. (6) Checking of claims after processing (a) After a claim has been processed on the Polfin System the employee referred to in subparagraph (1) must check the claim by ensuring that (i) the persal number and particulars of the claimant correspond with the particulars on the Polfin System; (iv) (v) (vi) (vii) (viii) the particulars of the claim correspond with the particulars on the Polfin System; the claimant has signed the claim form (not applicable in the case of a payment to a supplier or an institution); the expense relating to the claim has been authorized in writing; the calculation of the claim is in general correct; the computer codes regarding the responsibility, objective and expenditure item are in accordance with the approval and were processed correctly on the system; the certificates on the claim form were signed by the employees, as required on the form; and the claim is substantiated by the necessary documents. The designated employee who check the claims must make correction marks with a red pen on the claim form and sign his or her name in the applicable space on the claim form to indicate that he or she has checked the form. (7) Approval for payment of claims (a) Before a claim can be paid out the commander of a polfin service point must ensure that the following have been complied with regarding a claim that has already been processed: Claim Section : Financial Services V01.00 Page 9 of 13

10 (i) (iv) (v) (vi) (vii) (viii) that the claim has been properly checked and that the designated employee has signed to that effect; that the expense incurred is a legitimate liability against public expense in that the correct allocation has been entered in accordance with the approval; that the certificate has been signed as proof that the expense has not been paid for already; that the claim is covered by written authorization; that the claim is correct regarding the period covered by the claim; that the claim is correct in general; that the claim is where applicable substantiated by the necessary documents or an explanation in the absence thereof; and that all payments above the amount of R are paid by means of the electronic method of payment. (d) When any unauthorized or erroneous expense or an incorrect certificate is discovered, such payment must be rejected immediately. Authorization given verbally for financial expenses may only be accepted as a temporary authorization and must be confirmed by a written authorization. Such written authorization must be obtained before a claim can be submitted. After the commander has satisfied himself or herself that the above steps have been carried out, he or she must authorize the payment by signing in the relevant space on the claim form. (8) Scheduling of claims for payment The commander of a polfin service point must daily ensure that all claims authorized for payment are scheduled on the Polfin System. (9) Payment of scheduled claims (a) A claim may not be paid out unless it has been processed beforehand on the Polfin System, and all prescribed certificates on the various claim forms have been signed and dated by the responsible employees. Claim Section : Financial Services V01.00 Page 10 of 13

11 When a claim has been processed on the Polfin System the claim may only be paid by one of the following methods: (i) below the amount of R by means of cash from the standing advance; or above the amount of R by means of direct payment into the bank account of the beneficiary (ie by ACB). (d) A claim that must be paid out in cash must be referred to the keeper of the standing advance for payment. All claims that are scheduled must be paid within two weeks on the Polfin System function: payment schedule. (10) Archiving (a) The commander of a polfin service point must in writing assign the archiving function of all claim documents to an employee. Such employee must (i) take receipt of all claim documents and keep them in safe custody; and implement and enforce a proper record-keeping system. (d) Access to claim documents may only be obtained with the written permission of the commander of the polfin service point. Documents pertaining to claims must be kept in safe custody for the prescribed period according the retention of basic accounting records before being destroyed. 6. Payment of claims at a standing advance office (1) If a claimant personally submits his or her claim to the keeper of the standing advance, he or she must, upon receipt of the payment, complete and sign the computer-generated receipt as confirmation that he or she received the cash. (2) If the claimant is for whatever reason not available to take receipt of the money personally he or she must designate a person to submit the claim and receive the money on his or her behalf. In such an instance a short receipt (SAPS 152) must be completed and submitted. The person receiving the money on behalf of the claimant must complete and sign the computer-generated receipt. (3) Before the pay clerk accepts a short receipt he or she must ensure that Claim Section : Financial Services V01.00 Page 11 of 13

12 (a) (d) the short receipt was signed by the employee concerned and the person nominated by him or her; with the payment of the claim/advance the amount of the claim/advance is entered on the short receipt; the person nominated signs the short receipt in his or her presence to acknowledge receipt of the money, and compare the signature with the specimen signature on the form to verify the identity of the nominated person; and a reference to the short receipt (SAPS 152) is recorded on the computer-generated receipt. (4) A separate computer-generated receipt must be obtained with regard to each claim and be attached to the claim. Where a short receipt has been completed, it must be attached to the claim together with the signed computer-generated receipt. 7. Submission of duplicate claims (1) A claim that has already been registered on the Polfin System may not be re-submitted or re-registered without the approval of the relevant Provincial Head: Financial Services or a Financial Manager of a division of Head Office. (2) If documents regarding a claim have gone missing or if a claimant alleges that the claim was not paid to him or her, then (a) the claimant must make an affidavit to substantiate the expenses as well as to the effect that the claim has not yet been paid to him or her; (d) the claimant must complete a claim form indicating all allowances and compensation for expenses owing to him or her. The claim form must be marked clearly Duplicate claim at the top. The affidavit must be attached to the claim form; the keeper of the standing advance must investigate the processing of the alleged claim on the Polfin System and ensure that no claim has not already been registered or processed on the Polfin System by the claimant concerned; the keeper of the standing advance, must after he or she has satisfied himself or herself that the claim has not been paid yet, submit the duplicate claim together with his or her finding to the relevant Provincial Head: Financial Services or Financial Manager of a division of Head Office for a decision; and Claim Section : Financial Services V01.00 Page 12 of 13

13 (e) if the Provincial Head: Financial Services or Financial Manager of a division of Head Office approves the claim, the financial office must process the claim on the Polfin System for payment. 8. Claims that may not be paid A claim may not be paid if (a) the claim is out of the ordinary or of questionable nature or if provision is not made for it in any official publications or announcements and which must be referred to a higher level of authority for approval; an authorized employee did not provide a certificate regarding the correctness of the claim; or the claim is not supported by an approved itinerary or written authorization. Claim Section : Financial Services V01.00 Page 13 of 13