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So,
you have a set of policies. They are published in your staff handbook,
operations manuals and are on your company’s intranet site.
Job
done. Well, not necessarily.
Have you published instructions on how to instigate each
policy? Is staff aware of
precisely how the policy will help them?
Are the objectives of the policies open to interpretation?
A meaningful and useable policy must be clearly understood
and consistently applied.
Recommended
approach
1.
You must
state the purpose of the policy, to whom it applies and what using the
policy is intended to achieve. These
must be agree with relevant stakeholders and comply with relevant
legislation.
2.
You must
have processes and guidelines to support the policy.
These
will explain, for example, how the policy works in practise, who must be
notified and how they should be notified, which forms or paperwork should
be submitted and by whom, what authorisation is needed and whether there
any deadlines.
3.
Relevant
employees must be trained in the use of all policies.
Above
all else, remember that a policy is not a process or a procedure.
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Are there
guidelines governing how your company’s funds are spent? If there are, are
these guidelines widely known and enforced throughout?
If you
answer “no” to any of the above questions then your company is vulnerable to
financial errors and fraud.
Safeguarding
company funds
In order
to minimise the risk of financial errors or fraud, the following actions are
recommended:
1.
Develop clear
policies and guidelines for committing the company’s finances and ensure these
are communicated to staff.
2.
Ensure that
expenditure is not committed and approved by the same person.
If a team is too small to separate these activities, ensure that the
details of all financial transactions are regularly reviewed and signed off by
the approver’s manager.
Disclaimer
These are brief guidelines on making policies workable and
safeguarding company funds. They
are not comprehensive and should, therefore, only be used as a guide to what
might be required.
If you would like more detailed guidance or wish to talk
with one of our advisers, e-mail info@amosbutler.com
or telephone 0845 125 9612.
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