Introduction

The Melbourne School of Theology Financial Policy and Procedure Manual provides the policies and procedures for finance transactions within the business which must be followed by all staff. It also provides guidelines Melbourne School of Theology will use to administer these policies, with the correct procedure to follow.
Melbourne School of Theology will keep all financial policies current and relevant. From time to time it will be necessary to modify and amend some sections of the policies and procedures, or to add new procedures.
Any suggestions, recommendations or feedback on the policies and procedures in this manual are welcome.

These policies and procedures apply to all employees.

1. Finance Authorisation Policy

Purpose of the Policy

All finance transactions as noted in this policy are to be authorised by the noted authorised person prior to the transaction being undertaken.
This policy is to be read in conjunction with other specific finance policies where relevant.

Procedures

The following finance transactions are subject to prior authorisation being given by the corresponding person.

2. Bank Account Policy

Purpose of the Policy

This policy sets out the requirements for use of bank accounts, including opening, closing authorising users, authorisation, variations to terms and conditions, reconciliation of bank accounts and bank account transactions.

Procedures

Opening Bank Accounts

Any new bank accounts to be opened for general college business must have the written approval of Audit & Risk Committee of the governing Board.
Any new bank accounts to be opened for staff ministry Fringe Benefit payments must have the approval of the Chief Operations Officer.
For each new general college bank account opened, the financial system must be updated and the bank account registered by the Chief Finance Officer.

Changing Bank Account Authorising Users

When new authorising users of general college bank accounts are to be added, written approval of the Audit & Risk Committee of the Governing Board is required.

 If an existing authorising user leaves the organisation, or they are no longer required to be an authorising user, approval of the General Manager is required to remove them from the banking system.

Bank Account Authorisations

For monies withdrawn from any general college bank account, whether by cheque, EFT or other online payment method, there must be two persons authorising for each payment.
The authorised persons for bank account payments are any two of the following persons:
Chief Operations Officer
General Manager (s)
Chief Finance Officer
Executive Principal
Each payment made must be supported by an invoice, receipt or other appropriate documentation. Evidence must be provided with any payment, (a Reckon Accounts Payable report or Reckon Wages Summary report) and the documentation signed by the two authorising parties.

Variations to Bank Account Terms and Conditions

Any variations to banking arrangements can be made or varied by the Chief Operations Officer and the Chief Finance Officer is responsible for updating the financial system and/or bank account register with the new information.

Closing Bank Accounts

Where it is decided that a bank account is no longer necessary, the Chief Operations Officer will authorise the closure of the bank account.
The Chief Finance Officer will then be required to complete the following:

• ensure all transactions with respect to the account (including cheques drawn) have been completed;
• for general college accounts lodge with the bank a letter, signed by the General Manager, advising of the closure of the account;
• meet the bank’s requirements with respect to account closure; and
• update the financial system and bank account register.

Bank Account Transactions

All cash and cheque deposits received must be stored in the locked safe until banked. Where possible all deposits must be banked within seven days of receipt.
Unallocated direct deposits of more than one month will be investigated fully to determine source of deposit.  Where the source cannot be identified, the deposit will be allocated to the Suspense Account.
Cheques outstanding for more than twelve months will be reallocated back to the business through the financial system.
Where a payment stop on a cheque is required, this may only be authorised by the Chief Finance Officer
The Chief Finance Officer will be responsible for carrying out the following duties regarding a payment stop on a cheque:

• ensuring the cheque has not already been presented at the bank;
• getting authorisation to action the stop payment using appropriate forms from the bank;
• ensuring the bank receives notification of the stop payment notice;
• receiving confirmation of action from the bank of the stop payment.

3. Income in Advance

MST is required to retain funds known as the ‘protected amount’ that are sufficient to repay tuition fees to every overseas student who has pre-paid tuition fees but not yet begun the course. Providers are obliged to maintain a designated account with an Australian authorised deposit taking institution. These obligations are set out in sections 28 and 29 of the Education Services for Overseas Students Act 2000 (ESOS Act). As a result of the ESOS ACT, any international overseas student tuition fees received in advance shall be held in a separate account until after the commencement of their enrolled course. These fees will be protected at as the ‘protected amount’ until the census date of their first semester has passed, whereby the ‘protected amount’ can be transferred to the general account for use.
This ‘protected amount’ account shall be reconciled monthly, and the balance of the account shall always be equal to or more than the total ‘income in advance’ liabilities of all overseas students, both domestic and international
During the annual external financial audit, it shall be confirmed that the Income in Advance bank balance for overseas students meets the total tuition fees income in advance from overseas students, recorded by the college.

4. Cash Float Policy

Purpose of the Policy
A cash float exists to assist in the operating of events where cash income may occur. It is not to used as petty cash.

Procedures

Issuing Cash Float

The cash float is $200.00 in notes and coins.
A responsible person must sign for the cash float when they receive it.
When the cash float is returned to the Chief Finance Officer, it will be counted and confirmed the funds are all returned.

5. Use of Business Credit Card Policy

Purpose of the Policy

This policy provides procedures for the issue and use of business credit cards.

Procedures

An employee will only be issued a credit card once authorized by the Audit & Risk subcommittee of the governing Board.
The business credit card can only be used for budgeted expenses.
No cash advances are to be taken using the business credit card.
Where a business credit card is lost or stolen, then the owner of this card is to notify the Chief Finance Officer who is responsible for notifying the issuing agency and ensuring the card is cancelled.
The use of the business credit card is not to be used for personal expenses.
All holders of business credit cards are required to provide the relevant receipts so that the Chief Finance Officer can reconcile the monthly credit card statement to the expense form. Any missing receipts require a Statutory Declaration to be completed.
All business credit cards are to be returned to the college when the person is requested to by the Chief Operations Officer or the Chief Finance Officer or where they are no longer an employee of the college.
The Chief Finance Officer is responsible for closing any returned credit cards with the appropriate banking institution.

6. New Supplier Policy

Purpose of the Policy

All new suppliers to the college with which we will have an ongoing account must be reviewed and accepted in accordance with this policy to ensure that the supplier service is aligned with the business objectives.

Procedures

Choosing a New Supplier

A new supplier must provide our business with the ability to meet the current needs of our organization.
For each new supplier the following information must be added to the Supplier List

Supplier Selection Background Information

Business Name of Supplier: _____________________________________________________________________
Products/Services provided by supplier: _____________________________________________________________________
Supplier Bank Account Details: ­­­­­­­­­­­­­­­­­­­­­­­­­­­_________________________________________________

Supplier Selection Review Checklist

For each new supplier being considered the following questions must be considered:
Is the supplier pricing competitive? ________________________________________
What are the payment terms for this supplier? _______________________________
What is the return policy for this supplier: ___________________________________
Does the supplier provide warranties, guarantees etc.? : _______________________
Are the suppliers representatives knowledgeable of the products/ services and industry?: ____________________________________________________________
Is there an alternative to this supplier, has the alternative supplier been considered?:
What are the delivery services of the supplier?: ______________________________

Appointment of Supplier

The appointment of a new supplier will be authorised by the Chief Finance Officer.
All relevant details of the supplier will be entered into the financial system by the Chief Finance Officer once approval is obtained from the General Manager.
The General Manager will review information entered into the financial system and independently verify the bank account or other payment details of the supplier to ensure payments made are to the correct supplier.

Supplier Payment Terms

Payment terms for all suppliers must be reviewed by the Chief Finance Officer annually.
All supplier payment terms must be a minimum of 14 days.

7. Purchasing Policy

Purpose of the Policy

This policy provides procedures for the purchase of goods, services, equipment and assets for the business.
This policy is applicable for all purchases.

Procedures

Request for Purchase

All items over the value of $5000 must be supplied by approved suppliers.
A request for purchase must address the following criteria:

• Purchasing that promotes environmental sustainability;
• Value for money; and
• Preference to Australian/locally produced.

All purchases made within the budget are subject to authorisation by the appropriate department head.
Any purchase within a department which is over and above the budgeted amount is subject to authorisation by the Chief Operations Officer.

Equipment Asset Purchases

All equipment and asset purchases must be entered in the financial system by the Chief Finance Officer with the following details included:

• Date of purchase;
• Supplier; and
• Make, model, warranty/guarantee information.

8. Student Debt Collection Policy

Purpose of the Policy

This policy provides guidelines for the collection of late student fee payments.

Procedures

An aging debtor report is to be run every month by Reception. All overdue student payments are to be noted and the following procedures undertaken until recovery of outstanding amounts.

• First Contact: Once the payment is overdue, phone or email the student. Remind them that payment is due and has not been received. Ask them when they will be paying you and keep a record of the conversation or email. Remember to be nice, they may have forgotten or paid into the wrong bank account.
• Overdue reminder: If they do not respond to the phone call or email within 2 weeks an SMS is to be sent to their mobile phone number asking them to contact the office.  Make a note of all conversation details on the overdue student payment record.
• Direct contact: Where there has been no response to the SMS communication after 2 weeks then an email is sent with an overdue invoice.  The purpose of this step is to secure a date of payment.  A record of this notice must be entered onto the overdue customer payment record.
• Formal letter of demand: Where payment remains outstanding and there has been an unsatisfactory response from the student, authorisation from the Chief Operations Officer for the formal letter of demand to be issued must be obtained.  Once authorised this letter is to be sent via registered mail and a record of this notice must be entered onto the overdue student payment record.

• Fee exemption options are available to students under various circumstances and these options are offered when appropriate.
• Write off debt: Student debts that remain outstanding for more than 12 months are referred to the Chief Finance Officer. A block is put on their ability to access results if that applies. Bad debts are written off on a case-by-case basis depending on the person involved, their engagement with the college and our assessment as to whether they may eventually pay when they are able and no further sales are to be undertaken with that customer without approval from Chief Operations Officer.