Fnsacm evaluate and authorise payment requests

Tanya Iliyanova Stewart, Unit code 63030 18/04/2021

FNSACM401 EVALUATE AND AUTHORISE PAYMENT REQUESTS

ASSESSMENT COVER SHEET

Tanya Iliyanova Stewart, Unit code 63030 18/04/2021

You will need to research information to assist with your responses for this task.

What you will need to complete these tasks

You are required to provide information about the following points. You must prepare a

written response to each point, which can be supported by example documentation as

You are to research the following topics then outline your findings in a report. Use the

1. Identify the legislation and industry codes of practice relevant to the payment

systems in the organisation.

 ASIC

 E-Payments Code

ASIC Codes of practice

All payments must be allocated to an account, which describes the purpose of the payment. Standard accounting practices divide these accounts into five categories and each account is given a unique code and description. A common asset account is 1001, Cash at bank. - The code indicates the account type. In many accounting systems the first digit of the code indicates the account type. - Standard types are: assets, liabilities, equity or capital, income, expenses. These accounts are all listed in a Chart of Accounts, which simply lists the account codes and their descriptions in the order they would appear on the balance sheet and profit and loss statement. Allocating payments to their correct accounts is necessary for management, audit and taxation purposes. Most electronic systems allow the user to choose to find an account by either numeric code or account name. A number of codes of practice have been developed in the financial services sector. An industry association is not required to seek ASIC approval of its code, but may choose to do so. ASIC has the power to approve codes in the financial services sector. We have released Regulatory Guide 183 Approval of financial services sector codes of conduct (RG 183), which sets out how we will approve a code of practice.

 enforceability against subscribers to the code

 adequate provisions for dispute resolution, remedies and sanctions

 Customer Owned Banking Code of Practice: Developed by the Customer Owned Banking Association

 FPA Code of Professional Practice: Developed by the Financial Planning Association of Australia

Organizational procedures for evaluating

Tanya Iliyanova Stewart, FNSACM401 Evaluate and authorise payment requests 18/04/2021

 whether or not the objectives and goals originally established are being achieved, as well as their expected effects and impact

 furnishes financial data to justify the need for additional resources and also helps keep the key activities on the right track and offers information that allows the setting of minimum standards to promote compliance with the organizational research process objectives.

Tanya Iliyanova Stewart, FNSACM401 Evaluate and authorise payment requests 18/04/2021

Tanya Iliyanova Stewart, Unit code 63030 18/04/2021

 Traditional evaluation: It involves use of reports, technical meetings, committees, ad hoc groups, courses and seminars.

 Personnel cover: evaluation of the performance of professional, administrative and technical human resources in the organization.

Basics: Organizations often allocate budgets to departments for purchase of supplies, goods and services. Requests for payment are used to gain approval for payment toward a nonstandard purchase, or in some instances to provide reimbursement for a payment.

Tanya Iliyanova Stewart, FNSACM401 Evaluate and authorise payment requests 18/04/2021

 Insurance payments against standing orders

 Wages against timesheets

 Travel advances, travel repayments (registration fees and airline tickets) and travel reimbursement.

 Utility includes electricity, natural gas, water, fuel oil, telephone, cell phone and cable TV.

Tanya Iliyanova Stewart, Unit code 63030 18/04/2021

Task 2
Introduction
Regardless of the company's size, the mission of accounts payable is to pay only the company's bills and invoices that are legitimate and accurate. This means that before a vendor's invoice is entered into the accounting records and scheduled for payment, the invoice must reflect:

 prevent paying a fraudulent invoice

 prevent paying an inaccurate invoice

 the repair expense will be omitted from the income statement.

If the vendor invoice for a repair is recorded twice, there will be two problems as well:

Tanya Iliyanova Stewart, FNSACM401 Evaluate and authorise payment requests 18/04/2021

Tanya Iliyanova Stewart, Unit code 63030 18/04/2021

3. When developing the procedure and process flow diagram for this task there are several activities that you will need to complete, these include:

a. Verifying and validating the accuracy of payment requests and accurately preparing payment documentation

 The description, quantity, cost, terms, and math on the vendor invoice.

PROCEDURE

 Other officers and employees

1. Common office equipment, technology, software and consumables

Tanya Iliyanova Stewart, FNSACM401 Evaluate and authorise payment requests 18/04/2021

Tanya Iliyanova Stewart, Unit code 63030 18/04/2021

Activities governed by this Procedures:

a. Verifying and validating the accuracy of payment request: Before entering invoices into the accounting records, you must ensure its accuracy by:

 Ensuring that source documents are signed for after checking when receiving delivery. To validate request for payments, you are required to check:

 If the company did order the good and services.

 Calculation’s accuracy

 Invoice and delivery dates

- Prioritise it to ensure payment will be pay on time

Tanya Iliyanova Stewart, FNSACM401 Evaluate and authorise payment requests 18/04/2021

authorising payment request, you must comply with:
- Company’s procedures and policy
- The Privacy act 1998
- The Anti-Money Laundering and Counter Terrorism Financing Acts - Australian Accounting Standards
- Taxation Act
- And other legislations
f. Flow diagram:

Tanya Iliyanova Stewart, FNSACM401 Evaluate and authorise payment requests 18/04/2021

Receive payment requests related to the payment requests.

request

Authorised person: Chief Executive Officer, the Chief Financial Officer, the General Manager or Managers.

Prepare payment Complete authorisation forms.

Contact authorised person to confirm.

The Privacy act 1998.

The Anti-Money Laundering and Counter Terrorism Financing Acts.

All payment requests must be verified against the supporting documentation ie, cheque requisitions, invoices, receipts, tax invoices. If a cheque is required, a requisition form is to be completed in full and correctly. Only the business owner can then sign and authorise the cheque payment.

Receipts showing payment has already been made require a date, item descriptions, payment details and purchase amount. The purchase requisition for the works will need to be identified/sourced and job allocation.

Tanya Iliyanova Stewart, Unit code 63030 18/04/2021

WRITTEN ACTIVITY CHECKLIST

Tanya Iliyanova Stewart, FNSACM401 Evaluate and authorise payment requests

answers to each question.

What you will need

Tanya Iliyanova Stewart, FNSACM401 Evaluate and authorise payment requests

18/04/2021

1. What types of documentation would you need to match payment requests to?

 Purchase orders issued, receiving report issued, invoice from vendors, contracts and other agreements

4. What is the purpose of a check requisition form?

 Making payments for purchase of goods and services, requesting a cheque prepared and issued outside normal procedures for urgent payments, obtaining a signature and authority for an account that doesn’t normally have the authority for paying invoices

Tanya Iliyanova Stewart, FNSACM401 Evaluate and authorise payment requests 18/04/2021