Finance Policy Manual | ABR42MPM

Finance Policy Manual

The Finance Policy Manual covers the common finance requirements and best practices. It is intended only to provide an example of wording that might be used in a Manual of this type. This sample wording can be helpful in generating ideas for developing a manual for your own company.  However, finance policies should be drafted as appropriate and necessary to accurately reflect your company’s internal financial policies and standards. (40 pages, 8217 words)

The purpose of the Finance Policy Manual is to document the principles and policies governing the company’s financial practices. The principles and policies provide:

  • A foundation for an effective system of internal controls;
  • Guidance in current financial activities;
  • Criteria for decisions on appropriate financial treatment; and
  • Financial management with direction and guidance with regard to policies, procedures, and reports that should be uniform throughout the company.

 
When consistently applied throughout the company, these principles and policies assure shareholders that financial statements issued by the company accurately reflect the status of the company’s operations. By developing and implementing this manual, the company is declaring its intent to comply with standards and regulations governing internal controls and risk management.  These issues have always been important, but they have recently received significant attention in the business environment, in the media, and in the courts.  The company’s systems of internal controls and risk management are based, in part, on the recommendations of the Committee of Sponsoring Organizations (COSO) contained in two documents, “Internal Control – an Integrated Framework” and “Enterprise Risk Management Framework.” Properly designed, implemented, and maintained internal controls are a system of checks and balances, intended to:

  • Ensure the effectiveness of the financial management system (FMS);
  • Ensure that financial objectives are met;
  • Identify irregularities;
  • Prevent or minimize waste, fraud, and abuse; and
  • Assist in resolving discrepancies that may be accidentally introduced into the operations of the business.

 
All additional departmental or functional policies and procedures written should conform to or parallel the policies in this manual.  All changes to policies and procedures must be reviewed to ensure that there are no conflicts with policies stated in the Finance Policy Manual. This policy manual covers:

PURPOSE

SCOPE

RESPONSIBILITY

EXCLUSIONS

  • Accounting
  • Payroll
  • Information Systems.
  • Security Planning
  • Disaster Recovery

 
MANAGEMENT RESPONSIBILITY

FINANCE ORGANIZATION

  • Finance Department Organization Chart
  • Chief Financial Officer Responsibilities
  • Treasury Responsibilities
  • Controller Responsibilities

 
MANAGEMENT COMMITMENT

FINANCE POLICY

PLANNING

  • Finance Objectives
  • Financial System Planning
  • Referenced Procedures

 
RESPONSIBILITY, AUTHORITY, AND COMMUNICATION

  • Responsibility and Authority
  • Management Representative
  • Internal communication
  • Referenced Procedures

 
MANAGEMENT REPORTING

  • General
  • Review input
  • Review output
  • Referenced Procedures

 
BUSINESS CONDUCT

  • Related Party Disclosure
  • Referenced Procedures

 
FINANCIAL MANAGEMENT SYSTEM

OBJECTIVES

REQUIREMENTS

  • Overview
  • Internal Controls
  • Audit Opinions
  • Referenced Procedures

 
TRANSACTIONS

  • Authorization
  • Timing
  • Amounts
  • Accuracy

 
DOCUMENTATION

  • Finance Policy Manual
  • Control of Documents
  • Control of Records
  • Referenced Procedures

 
SECURITY

  • Continuity
  • Physical Security
  • Disaster Recovery
  • Information Security
  • Referenced Procedures

 
PROCESSES AND CONTROL

ADMINISTRATIVE PROCEDURES

RAISING CAPITAL PROCEDURES

TREASURY MANAGEMENT PROCEDURES

FINANCIAL STATEMENTS PROCEDURES

INTERNAL CONTROL PROCEDURES

RESOURCE MANAGEMENT

PROVISION OF RESOURCES

HUMAN RESOURCES

  • Finance Staff
  • Competence, Awareness, and Training
  • Separation and Supervision of Duties
  • References

 
INFRASTRUCTURE

WORK ENVIRONMENT

Finance Records List Template | FA1040-2

Finance Records List Template

The Finance Records List Template is a complete list of Finance records that should be maintained by Financial Management. FA1040-2 FINANCE RECORDS LIST, whether in hard copy or electronic form, should contain the following information on each record, at a minimum:

  • A unique identifier (e.g., sequentially numbered alpha/numeric ID);
  • A description of the record;
  • The location of the record;
  • Minimum retention time; and
  • Directions for record disposition.

Finance records should be retained for no less than the period of time required by applicable statutes, regulations, and/or contractual requirements. Unless otherwise indicated, those records should be disposed after their minimum retention time is attained.

Finance Records List Template Details

Pages: 01
Words: 80
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Finance Administration
Procedure: Financial Record Control Procedure FA1040
Type: List

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Financial Analysis Plan Template | FS1020-1

Financial Analysis Plan Template

The Financial Analysis Plan Template should include key financial ratios, key financial plots, interpretation of analysis results, and more. The CFO should conduct an analysis of the company’s financial statements at the end of every financial period, or as required by Top Management and the Board of Directors and/or in accordance with law. The financial analysis should include:

  • Selected ratio calculations and evaluations for information on current or most recent financial statement.
  • Trends of statement components (earning, expense, profit) over the recent financial periods and fiscal years, for example, the previous 2-10 fiscal years.
  • Selected ratio analysis and ratio trends over the recent financial periods, fiscal year, and most recent 2-10 fiscal years, focusing on ratios important to the industry, business model, and financial objectives.
  • Trends and ratios for the recent financial periods, fiscal year, and most recent 2-10 fiscal years in relation to typical industry benchmarks and standards.

The CFO should list key ratios for analysis in Section I on the FS1020-1 FINANCIAL ANALYSIS PLAN. The particular ratios used for analysis should be consistent over time; the CFO should present valid reason(s) for adding or dropping ratios used for analysis. The CFO should also complete the information on the Financial Analysis Plan about ratios used that can provide valuable information about how the business is performing and areas of strengths and weakness.

The CFO should review and evaluate the information compiled and calculated, then note any meanings, interpretations, and explanations for the results in Section V of the FS1020-1 FINANCIAL ANALYSIS PLAN.

Financial Analysis Plan Template Details

Pages: 04
Words: 194
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Financial Statements
Procedure: Financial Statement Analysis Procedure FS1020
Type: Form

Financial Audit Checklist Template | AC1050-3

Financial Audit Checklist Template

Audit Team members should prepare checklists for the processes, etc., they will be auditing and the Financial Audit Checklist Template can be used as a guide. While the AC1050-3 AUDIT CHECKLIST (SAMPLE) is general, audit checklists should be designed specifically to the activities and controls of each process to be audited;

  • The Audit Team Leader may contribute to checklists based on their knowledge and experience. In fact, the Audit Team Leader should review individual Audit Checklists and add questions he/she believes are necessary to adequately evaluate controls/processes being audited; and
  • Audit questions need not be limited to those on an individual’s Audit Checklist. The Financial Audit Checklist Template is unlikely to be all-inclusive but it serves as a useful guide and Auditors should have some flexibility to address issues as they come up in the course of the audit.

When conducting interviews, Audit Team members should use the Audit Checklist to maintain focus and ensure completeness. There should be enough questions on the Checklist to enable a thorough evaluation of activities in the audited area; however, the Audit Team Leader must recognize that Auditors may not have time to ask all questions.

Financial Audit Checklist Template Details

Pages: 03
Words: 510
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Internal Controls
Procedure: Financial Internal Auditing Procedure AC1050
Type: Checklist

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Financial Audit Plan Template | AC1050-2

Financial Audit Plan Template

The Audit Team Leader should review relevant audit requirements (e.g., regulatory, internal, standard/guideline related) and complete the Financial Audit Plan Template. While developing the Audit Plan, the Audit Team Leader should conduct at least one Audit Team meeting for the purpose of discussing the upcoming Internal Audit and reviewing previous audit reports, Corrective Action Requests (CAR), and other relevant documents.

The Audit Team Leader should formalize the Financial Audit Plan Template in accordance with AC1050-2 AUDIT PLAN and publish and distribute copies of the Audit Plan to the Audit Team, key employees, and Audit Team members at least two weeks in advance of the audit opening date. The Audit Plan should include, at a minimum:

  • The purpose, scope, objectives, and criteria for the audit;
  • Identification of specific processes and/or controls being audited;
  • Audit dates and times;
  • Audit Team members;
  • Key employees; and
  • A schedule and agenda for Opening and Closing Meetings and individual audit subjects.

Financial Audit Plan Template Details

Pages: 03
Words: 431
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Internal Controls
Procedure: Financial Internal Auditing Procedure AC1050
Type: Form

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Financial Audit Report Template | AC1050-5

Financial Audit Report Template

After the Closing Meeting, the Audit Team Leader should complete the Financial Audit Report Template, documenting in detail the audit conclusion, findings, and observations presented during the Closing Meeting, as well as the agreed upon reply deadline. Within two weeks of the Closing Meeting, the Audit Team Leader should submit AC1050-5 AUDIT REPORT to the Audit Team.

The Audit Team Leader may conduct a follow-up visit (or assign a member of the Audit Team), to take place at a time agreed to by the Audit Team Leader and the Manager of the affected process/control. The purpose of the follow-up visit is to verify that corrective actions in response to audit opinions have been implemented or that suitable progress toward their implementation has been made. Managers of audited processes/controls shall demonstrate that implemented corrective actions are achieving the desired effect.

Financial Audit Report Template Details

Pages: 02
Words: 194
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Internal Controls
Procedure: Financial Internal Auditing Procedure AC1050
Type: Report

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Financial Audit Schedule Template | AC1050-1

Financial Audit Schedule Template Template

The Audit Team Leader should complete the Financial Audit Schedule Template two to three months prior to the start of the next fiscal year and submit the Schedule to the Audit Team Leader for approval. AC1050-1 AUDIT SCHEDULE will vary according to the size and complexity of processes and controls being audited. Similarly, audit frequency depends on the associated level of risk and other factors, where the risk of material misstatement is greater, processes/controls should be audited more frequently and thoroughly. The Audit Schedule should specify the processes/controls to be audited and the estimated time frame for each audit.

The Audit Team Leader should select an Audit Team for each audit. The size of the Audit Team will vary according to the scope of the audit. Individual auditors must be competent and experienced. To be considered competent, Internal Auditors must be trained in auditing practices and the requirements of applicable standards and regulations. The Audit Team Leader should assign auditors according to their area and amount of expertise.

Financial Audit Schedule Template Details

Pages: 01
Words: 68
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Internal Controls
Procedure: Financial Internal Auditing Procedure AC1050
Type: Form

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Financial Corrective Action Log Template | AC1060-3

Financial Corrective Action Log Template

The Financial Corrective Action Log Template keeps track of the CAR number, date, location, department, problem description, and more. The Department Manager should notify the Controller of the CAR’s assignment, target date, person responsible, and change in status and the Controller should update their copy of the AC1060-3 CORRECTIVE ACTION LOG accordingly.

To effectively gauge the effectiveness of some corrective actions, it may be necessary to allow a period of time (e.g., 1-2 weeks, months) for them to work, so their associated Corrective Action Requests may remain open for an indefinite period of time. The Controller should, therefore, review the Corrective Action Log and/or the Open Corrective Action file periodically (e.g., weekly) to verify the status of Corrective Actions.

When the Controller determines that the Corrective Action has been effective, he/she should update the Corrective Action’s status in AC1060-3 CORRECTIVE ACTION LOG.

Financial Corrective Action Log Template Details

Pages: 01
Words: 28
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Internal Controls
Procedure: Financial Corrective Action Procedure AC1060
Type: Log

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Financial Corrective Action Request Template | AC1060-2

Financial Corrective Action Request Template

When the Controller determines that a corrective action is required, he/she should fill out a Financial Corrective Action Request Template. Every AC1060-2 CORRECTIVE ACTION REQUEST must include a description of the problem, observation, or nonconformance, as well as when and where it was observed.

The Department Manager should assign responsibility for investigating and/or taking the necessary actions to correct and prevent the recurrence of the problem, providing the copy of the Corrective Action Request form to the assigned individual. The Department Manager should notify the Controller of the assignment, and the Controller should note this on the original form.

Upon completing the corrective action, the responsible individual will sign the AC1060-2 CORRECTIVE ACTION REQUEST and return it to the Controller for review and filing. If the Controller determines that the Corrective Action was ineffective, he/she should generate a new AC1060-2 CORRECTIVE ACTION REQUEST and cross-reference the new form in the Verification of Implementation section of the previous Corrective Action Request.

Financial Corrective Action Request Template Details

Pages: 02
Words: 49
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Internal Controls
Procedure: Financial Corrective Action Procedure AC1060
Type: Form

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Financial Document Change Request Template | FA1030-1

Financial Document Change Request Template

The Financial Document Change Request Template should be filled out in order to request a new/changed financial document, complete with an explanation and detailed layout for the new document. All Finance Management System (FMS) documents are subject to revision.

To submit a change, the requester should obtain a current copy of the financial document and “red-line” requested changes on the copy. All changes should be clearly identified, initialed, and dated. If changes are extensive or complex, the requester may type a new document and submit this with a copy of the original.

The requester should fill out an FA1030-1 FINANCIAL DOCUMENT CHANGE REQUEST, attach the new/changed document, and submit this to his/her Department Manager for review. After reviewing the request, the Department Manager should submit the FA1030-1 and any attachments to the Document Controller, who should review the request to ensure the document conforms to the FMS.

Upon receiving the necessary approvals, Document Control should update the document and generate a new Master document. Financial Document Control should circulate the new Master document among designated Management personnel to obtain approval/signatures.

Financial Document Change Request Template Details

Pages: 01
Words: 149
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Finance Administration
Procedure: Financial Document Control Procedure FA1030
Type: Form

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Financial Document Control Log Template | FA1030-2

Financial Document Control Log Template

Financial Document Control should log external documents in the Financial Document Control Log Template, which is used as a Financial Document Control Database, to distribute and control document changes that are being worked on by the approved/interested parties. The FA1030-2 FINANCIAL DOCUMENT CONTROL DATABASE is a Financial Document Control Log Template that contains, at a minimum, the following information on each document:

  • Financial Document number;
  • Financial Document title;
  • Current revision number/ID;
  • Revision date;
  • Effective date; and
  • Financial Distribution list.

Financial Document Control should distribute (or limit distribution of electronic) documents only to locations shown on the database. Document Control should periodically review the Document Control Database for document currency and relevance (at least annually is recommended).

If Document Control believes a financial document is out of date and/or no longer relevant, Document Control should alert the CFO and the process owner(s) who use the document – in writing (email), preferably – at a minimum. The CFO or delegate should attest to the obsolescence in writing. Document Control should record the date of obsolescence in FA1030-2.

Financial Document Control Log Template Details

Pages: 01
Words: 25
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Finance Administration
Procedure: Financial Document Control Procedure FA1030
Type: Form

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Financial Forecasting Checklist Template | FS1000-1

Financial Forecasting Checklist Template

The Financial Forecasting Checklist Template should list all of the required items and information needed to complete the financial forecast process, and note the date and other relative information when these items are received. As forecast items are completed, the CFO should note information on each document, forecast, and forecasted statement listed on FS1000-1 FINANCIAL FORECAST CHECKLIST, including:

  • The date on which the item was completed;
  • The required submission date for that item;
  • The organization/person/agency requiring (requesting) the item;
  • The actual submission date; and
  • Any relevant notes regarding the item.

The CFO should complete and release the final versions of the forecasted financial statements listed on the Financial Forecast Checklist. After receiving requested revisions/updates, the CFO should revise pro forma statements and related forecast documents listed on FS1000-1 FINANCIAL FORECAST CHECKLIST. The checklist should be reviewed near the end of each fiscal year, verifying that all required forecast documents are listed and that all listed documents are created and submitted, as required.

Financial Forecasting Checklist Template Details

Pages: 01
Words: 46
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Financial Statements
Procedure: Financial Forecasting Procedure FS1000
Type: Checklist

 

 

Financial Information Release Log Template | FS1050-2

Financial Information Release Log Template

The CFO should log each request for financial information during a given fiscal year, as well as note whether the request was fulfilled or denied, in the Financial Information Release Log Template. The CFO should determine the appropriate response for each financial information request, and enter each request in the FS1050-2 FINANCIAL INFORMATION RELEASE LOG, along with appropriate information, such as:

  • Name of requester and date of request;
  • The reason for the request (and possible referral to reporting agency);
  • Whether the request is approved or denied with appropriate notes or reasons (particularly for denial);
  • Contact information for providing financial information;
  • The appropriate financial information to provide (i.e. most recent financial statements, most recent pro-forma statements, most recent annual financial statements); and
  • The types of financial statements to provide (i.e. Balance Sheet only, full set of Financial Statements, Summarized Statements).

The CFO should determine if the release of financial information to certain parties requires signing a nondisclosure agreement prior to release, and note this requirement on the Financial Information Release Log by listing the date the nondisclosure request or form is sent in the appropriate column.

Financial Information Release Log Template Details

Pages: 01
Words: 21
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Financial Statements
Procedure: Financial Information Release Procedure FS1050
Type: Log

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Financial Information Request Template | FS1050-1

Financial Information Request Template

Upon receiving a phone or in-person request for financial information, the Accounting or Finance Department manager/employee should complete a Financial Information Request Template, and forward the request to the CFO. FS1050-1 FINANCIAL INFORMATION REQUEST includes company/person making request, reason for requesting financial information, contact information, and more.

All requests for financial information shaould be forwarded to the CFO. The CFO should have sole authority to decide what information may be released according to the context and situation of the request, and should direct the release of financial information or direct a denial response. Those who request financial information should typically receive a reply as soon as possible, and always within thirty days.

Financial Information Request Template Details

Pages: 01
Words: 58
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Financial Statements
Procedure: Financial Information Release Procedure FS1050
Type: Form

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Financial Management Meeting Agenda Template | FS1030-2

Financial Management Meeting Agenda Template

The CFO should create an agenda for each financial management meeting and list it in Section I of the Financial Management Meeting Agenda Template. Typical agenda items may include, but need not be limited to:

  • Setting or adjusting overall financial goals, objectives, and strategies;
  • Reviewing financial performance, financial statement analysis, and performance;
  • Internal control, auditing, compliance, corrective action, and tax issues; and
  • Plans and action items for maintaining or improving financial performance.

The CFO should record results of meetings, such as decisions, general notes, required action items and assignments in the Minutes/Notes section of the FS1030-2 FINANCIAL MANAGEMENT MEETING AGENDA.

Financial Management Meeting Agenda Template Details

Pages: 02
Words: 69
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Financial Statements
Procedure: Financial Management Review Procedure FS1030
Type: Form

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Financial Management Plan Template | FS1030-1

Financial Management Plan Template

The CFO should complete the Financial Management Plan Template for regularly meeting with Top Management and the Board of Directors to discuss and review aspects of financial management. The CFO should list the meetings required to conduct financial management for the fiscal year in Section I of the FS1030-1 FINANCIAL MANAGEMENT PLAN. He/she should list all members of the Board and Top Management to be invited to financial management meetings in Section II of the plan.

The CFO should conduct meetings as planned or scheduled, and record the date of meetings held on FS1030-1. Results of meetings, such as decisions, general notes, required action items and assignments should also be recorded. The execution of the Financial Management Plan Template should be reviewed annually to ensure:

  • Meetings are occurring as planned and are properly attended;
  • Meeting agendas allow for covering the required number of topics in sufficient amount of detail, and stay within the scope of financial management;
  • Required materials (statements, reports, presentations) are prepared in a way that provides for informed financial management; and
  • Results of financial review meetings are properly documented and acted upon.

The CFO should revise the Financial Management procedure and/or its associated forms  in order to improve financial performance (e.g., setting/achieving objectives, compliance, meeting schedule/agenda).

Financial Management Plan Template Details

Pages: 02
Words: 88
Format: Microsoft Word 2013 (.docx)
Language: English
Manual: Finance
Category: Financial Statements
Procedure: Financial Management Review Procedure FS1030
Type: Form

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