Financial Handling Policy

Authority to sign cheques
Purpose
To spell out procedures that must be followed in the signing of cheques on behalf of Charity-Care.
Procedure
● All cheques must contain two eligible signatures.
● Eligible signatories are board members or staff members who have been previously nominated and endorsed by the board.
● Any two of the above have the authority to sign cheques.
● Signatories cannot sign a cheque made payable to themselves.
● A list of all cheques issued each month will be provided to the treasurer.
Expense reimbursement
Purpose
To spell out procedures that must be followed in the reimbursement of expenses incurred on behalf of Charity-Care.
Policy
Charity-Care will reimburse its staff (including volunteers) any reasonable and authorised expenses incurred by them on behalf of Charity-Care or in the course of Charity-Care business.
Procedure

1. Charity-Care will not reimburse staff for:
   a. Expenses claimed by an employee as a tax deduction.
   b. Expenses normally recoverable from a third party.
   c. Claims for purchases that are required to be made under a Charity-Care purchase order.
   d. Expenses that are not incurred for business purposes.
   e. Late payment interest on credit cards.
   f. Parking, traffic, or other fines and penalties.
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   Assessment Resource – Charity Care Case Study – BSBCOM603 Plan and establish compliance management systems |
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   V 3.1: May 2020, Approved: QAC, Next Review: December 2020
   International College of Tasmania Pty Ltd trading as: TasCollege
   RTO Code: 45352 | CRICOS Code: 03683K
2. In travel expenses:
   a. Employees will be reimbursed for the most direct and economical mode of travel available, considering all of the circumstances.
   b. Employees will not be reimbursed for additional costs incurred by taking indirect routes or making stopovers for personal reasons.
   c. Use of an employee’s own vehicle for work-related travel will be reimbursed by way of an all-inclusive mileage allowance.
   d. Trip cancellation insurance will be reimbursed.
3. For accommodation:
   a. Employees will be reimbursed for moderate accommodation expenses, considering all of the circumstances.
   b. Employees will not be reimbursed for items of a personal nature charged to a hotel account.
   c. When accommodation is provided by an employee’s friend or relative to whom the employee gives money or a gift as compensation or as a sign of appreciation, the employee may claim an overnight accommodation expense in accordance with per diem rates.
4. For the employee’s own meals:
   a. Employees will be reimbursed for reasonable and appropriate meal expenses actually incurred while on Charity-Care business.
5. When the staff member is offering hospitality on behalf of Charity-Care:
   a. Employees will be reimbursed for hospitality expenses incurred in the course of Charity-Care business, as appropriate.
   b. Appropriate hospitality charges include events hosted or sponsored for the purpose of promoting Charity-Care’s work or enhancing its image, and include meals that are related to the transaction of Charity-Care business.
   c. When Charity-Care employees dine together while on Charity-Care business, it is appropriate for the senior person (if any) to arrange payment and submit the claim for reimbursement.
6. Reimbursement of reasonable but unauthorised expenses may be made at the discretion of the Business Manager.
7. Advance payments may be authorised where appropriate. Such payments will be subtracted from the amount of any later reimbursements. If, for
   BSB61015 Advanced Diploma of Leadership and Management
   Assessment Resource – Charity Care Case Study – BSBCOM603 Plan and establish compliance management systems |
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   V 3.1: May 2020, Approved: QAC, Next Review: December 2020
   International College of Tasmania Pty Ltd trading as: TasCollege
   RTO Code: 45352 | CRICOS Code: 03683K
   whatever reason, expenditure is not incurred, then any advance payments made, or any unspent portion of such payments, must be returned.
8. Staff are authorised to approve expenses to the amount specified in their individual job description, and for expenditure above this level must seek specific authorisation from their supervisors.
9. Receipts, invoices, vouchers, tickets, or other evidence of such expenditure must be retained for all purchases and expenses.
10. Staff incurring authorised expenditure must submit requests for reimbursement to the designated person, using the expense reimbursement form. The completed form must be signed by the applicant.
11. Expense reimbursement forms must be presented with all relevant original receipts, invoices, vouchers, tickets, or other evidence of such expenditure when seeking reimbursement. Where such evidence is for any reason lacking, statutory declarations may be sought.
12. The designated person is responsible for determining if the expenses being claimed are reasonable given the circumstances, and for ensuring that they are charged against the appropriate account, and that any requirements under the fringe benefits tax legislation have been met.
13. Claims that have not been properly prepared, authorised, or supported by adequate documentation will be returned to the claimant and reasons will be given in writing for not processing the claim.
    Credit card policy
    Purpose
    The purpose of this policy is to:
14. Ensure that organisational transactions are carried out as efficiently as possible through the use of credit cards and transaction cards as appropriate.
15. Guard against any possible abuse of organisational credit cards.
    Procedure
16. Card issue:
    The organisational credit card may only be issued to a board member, staff member, or volunteer where their functions and duties would be enhanced by the use of an organisational credit card. Cards will thus be issued only to people on the approved organisational credit card list. The approved organisational credit card list shall be held by the CEO.
    BSB61015 Advanced Diploma of Leadership and Management
    Assessment Resource – Charity Care Case Study – BSBCOM603 Plan and establish compliance management systems |
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    V 3.1: May 2020, Approved: QAC, Next Review: December 2020
    International College of Tasmania Pty Ltd trading as: TasCollege
    RTO Code: 45352 | CRICOS Code: 03683K
    Other persons may be added to the list by the board. The board may delegate this power to any or all of:
    a. the finance committee
    b. the CEO
    c. the auditor.
    Cards may be issued on a temporary basis and recovered afterwards.
    Each organisational credit card will be issued to a specific person, who will remain personally accountable for the use of the card. Cardholders will sign the credit card issue form.
    Only the authorised signatory may use the card. No more than one card shall be issued per cardholder. Credit limits as appropriate shall be set for each card by the issuing authority.
17. Cardholder responsibilities:
    The cardholder shall:
    a. in all cases obtain and retain sufficient supporting documentation (e.g. a tax invoice) to validate the expense, or shall in lieu provide a statutory declaration
    b. attach these supporting documents to the monthly statement from the bank
    c. review the monthly statement for inaccuracies (and report these to the CEO)
    d. verify that the goods and services listed were received
    e. sign the monthly statement to verify that transactions have been made for official purposes
    f. forward the papers to the authorised signatory for approval (the board chair shall authorise payments to the CEO; the CEO shall authorise the expenditure of all other cardholders)
    g. notify the bank and the CEO (or in the case of the CEO, the board chair) immediately if:
    i. the card is lost or stolen
    ii. any unauthorised transaction is detected or suspected
    h. notify the CEO of any change in name or contact details
    i. take adequate measures to ensure the security of the card
    BSB61015 Advanced Diploma of Leadership and Management
    Assessment Resource – Charity Care Case Study – BSBCOM603 Plan and establish compliance management systems |
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    V 3.1: May 2020, Approved: QAC, Next Review: December 2020
    International College of Tasmania Pty Ltd trading as: TasCollege
    RTO Code: 45352 | CRICOS Code: 03683K
    j. return the card to the CEO if:
    i. the cardholder resigns
    ii. the CEO determines that there is no longer a need for the cardholder to retain his or her card
    iii. the organisational credit card has been cancelled by the bank
    k. be personally liable for any unauthorised transaction unless the card is lost, stolen or subject to fraud on some part of a third party.
    The cardholder shall not:
    a. exceed any maximum limits set, from time to time, for the organisational credit card
    b. obtain cash advances through the organisational credit card
    c. use the card for any proscribed purchases
    d. authorise their own expenditure
    e. claim double allowances (i.e. request reimbursement for an expense already paid by the card).
18. Credit card expenditure:
    The card will only be used for those activities that are a direct consequence of the cardholder’s function within the organisation.
    Where coincident and/or private expenditure occurs on the same transaction (where, for example, a person incurs a debt for personal telephone calls during a hotel stay) the cardholder must settle the private expense prior to charging the balance on the organisational credit card.
    Where doubt exists as to whether or not an item is function-related, prior authorisation should be obtained from the CEO (or, in the case of the CEO’s own card, the chairperson of the board or the chairperson of the finance committee).
    The use of the corporate card for ‘services of a dubious nature’ is expressly prohibited. ‘Services of a dubious nature’ are defined as any goods or services that might bring the name of the organisation into disrepute.
19. Credit card misconduct:
    Wherever a breach in this policy occurs, the CEO must assess the nature of the breach and, if significant, report the breach to the police for criminal investigation or, if lesser in nature, institute an appropriate disciplinary process:
    BSB61015 Advanced Diploma of Leadership and Management
    Assessment Resource – Charity Care Case Study – BSBCOM603 Plan and establish compliance management systems |
    Page 18 of 28
    V 3.1: May 2020, Approved: QAC, Next Review: December 2020
    International College of Tasmania Pty Ltd trading as: TasCollege
    RTO Code: 45352 | CRICOS Code: 03683K
    a. in the first instance, counselling and/or verbal warning (and diary or file note created)
    b. in the second instance, a written warning
    c. in the third instance, or if the dollar amount is greater than $1000, the card is to be immediately withdrawn.
    At the next finance committee meeting the CEO shall report:
    a. the investigation of the circumstances of the breach
    b. police reports and action (if any)
    c. disciplinary action taken (if any).