Workflow Design

1. Workflow Design Payments

2. Settlement Requests 3. Bursar Print Fraxion Pay request and attach to Invoice 1. Complete Fraxion Settlement Request 5. First payment approval in ABSA 2. Fraxion Line Manager Approval 4. Input data into ABSA system Output 1 ABSA printout External Supporting Document Output 2 Proof of payment 1. Original Invoice moves to Bursar 7. Documentation returned for cashbook processing 6. Second payment Approval in ABSA Output 5 Financial Reports 8. Capture payment in cashbook Output 4 Bank Reconciliation 10. Cashbook Data posted to General Ledger 9. Monthly Bank Reconciliation with cashbook Documentation filed chronologically

3. General Payment Policies Standard Operating Procedure (SOP) • General Payment Policies • Payments are divided in two main workflow processes namely Settlement Requests and Capital Requests • All payments excluding Capital acquisitions is processed via the Settlement Request workflow. • In Curro Policy Terms, a capital expense is an expense related to the purchase of physical goods with a unit value greater than R1000.00 per unit and which will be used for at least 3 years or more. • Capital Expenditure requires at least 2 quotations to be submitted with the Capital Payment Request. • Capital Expenditure Requests differ from Settlement Requests in that they involve a quoting process and two approvals in comparison with the single approval required for Settlement Requests. • Capital Expenditure Requests require approval by both the Executive Head and Head Office Management.

4. Settlement Requests Standard Operating Procedure (SOP) • Processing Cash Payments • Payments may only be processed by the Bursar where a Fraxion payment request document is available. A printed copy of the payment request is attached to the supporting documents by the Bursar. • Payments related to contractual commitments are exempt from this policy. • After receiving the invoice from the supplier, the applicant logs on to http://fraxion.curro.co.za with their password. The details of the invoice are captured on the screen as well as the budget from which the expense is allocated (refer to the manual for detailed instructions). The original physical invoice is signed by the applicant to acknowledge that services or goods have been received in good order. The signed invoices are then handed to the Bursar, who will match them with their Fraxion payment requests, which were received after the requests were approved. • Once the submit button is clicked, the Executive Head (approver) or nominated Manager, as set up in Fraxion, will receive an email notification to approve the transaction. The Executive Head clicks on the link in the email, which opens the request. • The Approver will view the details of the request and verifies the following: • The budget is not exceeded • The allocation of the expense is done according to the appropriate budget ITEM (Ensure that Capital requests are not processed as Settlement requests. • The cost is reasonable. • The approver has the ability to deny, cancel, revert or approve the request. Upon cancellation or denying of the expense, the applicant will be notified of the progress on the request via email. • In die event where the request is approved, the Bursar will receive an email, requesting for payment to be processed. The Bursar prints the payment request document and verifies the following controls: • Verify that the invoice received is signed by the applicant • Verify that the invoice amount agrees with the Fraxion document amount

5. Payments Standard Operating Procedure (SOP) • Processing Cash Payments (Continued) • The Bursar attaches the original invoice to the printed Fraxion payment request. • Once the payment meets all the internal control criteria, the Bursar uploads the payment on the ABSA online banking facility. • Printouts of the ABSA batches are made and placed with the above mentioned documentation to be presented for approval to the Executive Head. • The admin clerk approves the payments on the ABSA system and signs the batch to indicate that the first approvals have been made. • The documents with the batch printouts are forwarded to the Principal / Executive Head for final authorization. • The Executive Head logs into the ABSA system and views the batch printout to agree the total of the printout to the batch total on the screen. Once the total is confirmed the batch is screened in final authorization of the payments. • The second authorization is done by Executive Head on the ABSA business integrator program. • The batch is signed to indicate that the final approval was made and the documentation is returned to the Admin Clerk for further processing on the ERP system (PASTEL) cashbook. • Once the documentation is received after the second approval, the Administration Clerk obtains proof of payment from the ABSA Business Integrator program and forward proof of payment as requested on the documentation. • Batch printouts are filed according to date and payment documentation is filed alphabetically according to the beneficiary name. • Payments are now processed in the PASTEL cashbook. • Upon processing payments, ensure that the General Ledger code is relevant to the detail of the expense and or fund indicated on the Fraxion documentation. • Ensure that the expenses are loaded in the corresponding cashbook. • The description field must contain the beneficiary name and requisition number as well as a short description of the expenses, space permitting. • The batch is not posted until it is reviewed by the Head Office Accountant.

6. Capital Requests Standard Operating Procedure (SOP) • Capital Expenditure Process • During a request for Capital expenditure (CAPEX), the applicant obtains at least 2 quotes before completing the capital payment process on the Fraxion webpage. • Once the quotes have been obtained in soft copy, the applicant logs on to Fraxion and captures the required fields on the capital payment request page. The quotes are attached to the request and submitted. • Upon submission the first approval notification is sent to the first approver (Executive Head) . Once approved by the Executive Head, the request is forwarded to the relevant Manager at Head Office for a second approval. • Once Head Office confirmed compliance to budgetary and internal control procedures, the request is approved and notification is sent to the applicant to proceed with the order. • The status of the Capital Request is changed to “Approved for Ordering”. The applicant submits the order by sending a Fraxion-generated Purchase Order document to the supplier. • Once the goods have been received, the applicant logs on to Fraxion and receipts the goods on the Fraxion system (refer to manual for detailed instructions). • The status now changes to “Closed for Ordering” and the Bursar is notified of a payment request requiring attention. • The applicant signs the invoice and hands the original invoice to the Bursar who will match the invoice with the printed payment request . • The same payment process as per the Settlement Request workflow applies from this point forward.