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Agenda . Policies & Procedures for NUSSU & Clubs Budget preparation & monitoring Sharing of past audit observations Expense claim procedures Points to note from prior budget review. Summary of Policies & Procedures for NUSSU & Clubs. Purpose:
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Agenda • Policies & Procedures for NUSSU & Clubs • Budget preparation & monitoring • Sharing of past audit observations • Expense claim procedures • Points to note from prior budget review
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
Finance Forms (for NUSSU & Clubs) Updated finance forms can be downloaded from the following link: http://www.nus.edu.sg/finance/student/nussu/forms.html Out-dated/old/modified versions of the forms should not be used
Budget Preparation and Submission • Subscription fees / Income • OFS will allocate the applicable annual subscription fees and entrance fees (for NUSSU) to each club • Club will determine how to reallocate the fees between the 2 budget periods (BP) as it deems fit (e.g. 50-50) • Projected income (eg. Sale of tickets, Participation fees and Sponsorships) will be estimated reasonably • Budget preparation • Budget template will be provided by OFS • Dean of Students’ approval is required for the proposed budget of the 2 BPs • Any deficit projected for each BP 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 budget period, 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 BP, to be approved by OSA
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 each BP 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)
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:
Points to note (budget) • Insufficient budget
Points to note (budget) • Unutilised Budget • At the end of each FY/BP, any unutilised budget in the WBS will not be carried forward • 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
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
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)
Common Errors made in students’ claims • 1. Wrong amount input on Reimbursement form • 2. Contract Amount Exceeded • Bank account details not updated in ISIS • Rounding up/down of amount on Reimbursement forms • Split Purchases • Invalid WBS
Other points to note • Accruals
Other points to note • Prepayments • Advanceor 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
Other points to note • Making payment for Inter-dept billing vs external party (3rd 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 • 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
Other points to note • Sponsorships vs Donations
Other points to note • Collections of cash and subsequent banking to OFS • No collections are to be deposited to personal bank accounts • All cheque/cash collections are to be deposited at the cashier office preferably on the same day, or within 1 day of the date of collection.
Other points to note • Use of accumulated surplus for Investment • (to be submitted to OFS one month before subscription date)
Other points to note • Dates to note