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