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Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Compiled by:
Functional Responsibility:
Accountable
Authorised by:
Document Number:
Document Location
Revision History
Revision date Summary of Changes
Document Reviewers
Name Title
Alexandra TotoeDeputy Chief Executive,Finance
Samuel Gyawu Director Finance
Manager, Treas
George Abrampah Project Team Lead (Finance)
Compliance with this Process Control Manual is mandatory throughout Volta River Authority
FINANCE
PROCESS CONTROL MANU
PricewaterhouseCoopers
Deputy Chief Executive, Finance
Director, Finance
Deputy Chief Executive, Finance
FIN/01/2012
Server location...
Summary of Changes
Date of Issue
Deputy Chief Executive,
Director Finance
Manager, Treasury
Project Team Lead (Finance)
APPLICABILITY
Compliance with this Process Control Manual is mandatory throughout Volta River Authority
1
FINANCE
PROCESS CONTROL MANUAL
Changes marked
Version
Compliance with this Process Control Manual is mandatory throughout Volta River Authority
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
TABLE OF ABBREVIATIONSAbbreviation Definition
AP
APO
BoD
CE
CWIP
DCE, E&O
DCE, F
DCE, S
DE
DF
DF
DL
DP
FAM
FAS
GL
IF
IN
MOE
MOFEP
OIC
PAA
PF
PFM
PM
PR
RV
TM
TABLE OF ABBREVIATIONSDefinition
Accounts Payable
Accounts Payables Officer
Board of Directors
Chief Executive
Capital Work-In-Progress
Deputy Chief Executive, Engineering and Operations
Deputy Chief Executive, Finance
Deputy Chief Executive, Services
Director Engineering
Director Finance
Director Finance
Director Legal
Director Procurement
Financial Accounting Manager
Fixed Assets Supervisor
General Ledger
Informed
Input
Ministry of Energy
Ministry of Finance and Economic Planning
Officer-In-Charge
Payroll Accounting Stuff
Project Finance
Project Finance Manager
Project Management
Processing
Review
Treasury Manager
2
, Engineering and Operations
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
TABLE OF CONTENTS
TABLE OF ABBREVIATIONS................................
Introduction................................................................
Foreword ................................................................
Purpose ................................................................
Scope ................................................................
Information processing objectives ................................
System training requirements ................................
Applicable policies................................
Finance operating model ................................
Single Frame ................................................................
Symbol legend ................................................................
1.0 STRATEGIC MANAGEMENT
Process description................................
Strategic management process flow chart
Strategic management process activity detail
Strategic management key performance measures
Strategic management standard reports
2.0 MANAGEMENT INFORMATION REPORTING
Process description................................
Segregation of duties matrix................................
Management information reporting process activity detail
Management information reporting key performance measures
Management information reporting standard reports
3.0 BILLING PROCESS ................................
Process description................................
Segregation of duties matrix................................
Billing process flow chart ................................
Billing process activity detail ................................
Billing key performance measures
Billing standard reports ................................
4.0 RECEIVABLES PROCESS................................
TABLE OF CONTENTS
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STRATEGIC MANAGEMENT ................................................................................................
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Strategic management process flow chart ................................................................
Strategic management process activity detail ................................................................
Strategic management key performance measures ................................................................
Strategic management standard reports ................................................................
MANAGEMENT INFORMATION REPORTING ................................................................
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Management information reporting process activity detail ................................
Management information reporting key performance measures ................................
Management information reporting standard reports ................................................................
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Billing key performance measures ................................................................................................
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Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Process description................................
Segregation of duties matrix................................
Receivables process flow chart ................................
Receivables process activity detail
Receivables key performance measures
Receivables standard reports................................
5.0 RECEIPT PROCESS ................................
Process description................................
Segregation of duties matrix................................
Receipt process flow chart ................................
Receipt process activity detail ................................
Receipt key performance measures
Receipt standard reports................................
6.0 PROVISIONS PROCESS ................................
Process description................................
Segregation of duties matrix................................
Provisions process flow chart ................................
Provisions activity detail ................................
Provisions key performance measures
Standard reports................................
Provisions process risk and control matrix (RCM)
FIXED ASSETS PROCESSES................................
7.0 FIXED ASSETS - CAPITAL WORK
Process description................................
Segregation of duties matrix................................
Fixed assets - capital work-in-progress pro
Fixed assets - capital work-in-progress activity detail
Fixed assets (capital work-in-progress) key perfor
Fixed assets (capital work-in-progress) standard reports
8.0 FIXED ASSETS PROPERTY PLANT AND EQUIPMENT
Process description................................
Segregation of duties matrix................................
Fixed assets property, plant and equipment process flow chart
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Receivables process activity detail ................................................................................................
eceivables key performance measures ................................................................
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Receipt key performance measures................................................................................................
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Provisions key performance measures................................................................................................
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trol matrix (RCM) ................................................................
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CAPITAL WORK-IN-PROGRESS................................................................
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progress process flow chart ................................................................
progress activity detail................................................................
progress) key performance measures................................
progress) standard reports ................................................................
FIXED ASSETS PROPERTY PLANT AND EQUIPMENT ................................
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ts property, plant and equipment process flow chart ................................
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Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets property, plant and equipment activity detail
Fixed assets property, plant and equipment key performance measures
9.0 FIXED ASSETS (DONATED)
Process description................................
Segregation of duties matrix................................
Fixed assets (donated) process flow chart
Fixed assets (donated) activity detail
Fixed assets donated process risk and control matrix (RCM)
10.0 FIXED ASSETS (TAGGING
Process description................................
Segregation of duties matrix................................
Fixed assets (tagging and verification) process flow chart
Fixed assets (tagging and verification) activity detail
Fixed assets (tagging and verification) key performance measures
Fixed assets (tagging and verification) standard reports
Fixed assets (tagging and verification) process risk and control matrix (RCM)
11.0 FIXED ASSETS - RETIREMENT AND DISPOSAL
Process description................................
Segregation of duties matrix................................
Fixed assets disposal process flow chart
Fixed assets retirement and disposal activity detail
Fixed assets retirement and disposal key performance measures
Fixed assets retirement and disposal standard reports
Fixed assets disposal process risk and control matrix (RCM)
LOAN PROCESSES................................
12.0 LONG-TERM LOAN ADMINISTRATION
Process description................................
Segregation of duties matrix................................
Long term loan administration process flow chart
Long term loan administration activity detail
13.0 LONG - TERM LOAN DISBURSEMENT
Process description................................
Segregation of duties matrix................................
Fixed assets property, plant and equipment activity detail................................................................
s property, plant and equipment key performance measures ................................
FIXED ASSETS (DONATED) ................................................................................................
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Fixed assets (donated) process flow chart ................................................................
xed assets (donated) activity detail ................................................................................................
Fixed assets donated process risk and control matrix (RCM)................................
AND VERIFICATION) ................................................................
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Fixed assets (tagging and verification) process flow chart ................................................................
Fixed assets (tagging and verification) activity detail................................................................
Fixed assets (tagging and verification) key performance measures ................................
Fixed assets (tagging and verification) standard reports ................................................................
Fixed assets (tagging and verification) process risk and control matrix (RCM)
RETIREMENT AND DISPOSAL ................................................................
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Fixed assets disposal process flow chart ................................................................
Fixed assets retirement and disposal activity detail ................................................................
Fixed assets retirement and disposal key performance measures ................................
Fixed assets retirement and disposal standard reports ................................................................
Fixed assets disposal process risk and control matrix (RCM) ................................
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TERM LOAN ADMINISTRATION................................................................
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Long term loan administration process flow chart ................................................................
g term loan administration activity detail ................................................................
TERM LOAN DISBURSEMENT................................................................
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Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Long term loan disbursement process flow chart
Long term loan disbursement activity detail
14.0 LONG TERM LOAN REPAYMENT
Process description................................
Segregation of duties matrix................................
Long - term loan repayment process flow chart
Long term loan repayment activity detail
Long term loan loans key performance measures
Long term loans standard reports
15.0 SHORT-TERM LOAN ADMINISTRATION
Process description................................
Segregation of duties matrix................................
Short term loan administration process flow chart
Short term loan administration activity
16.0 SHORT-TERM LOAN DISBURSEMENT
Process description................................
Segregation of duties matrix................................
Short term loan disbursement process flow chart
Short term loan disbursement acti
17.0 SHORT-TERM LOAN REPAYMENT
Process description................................
Segregation of duties matrix................................
Short term loan repayment process flow chart
Short term loan repayment activity
Short term loans key performance measures
Short term loans standard reports
18.0 STAFF LOANS ................................
Process description................................
Segregation of duties matrix................................
Staff loans flow chart................................
Staff loan administration activity detail
Staff loan disbursement activity detail
Staff loan repayment activity detail
Long term loan disbursement process flow chart ................................................................
Long term loan disbursement activity detail ................................................................
LONG TERM LOAN REPAYMENT................................................................
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term loan repayment process flow chart................................................................
ng term loan repayment activity detail ................................................................
Long term loan loans key performance measures................................................................
Long term loans standard reports ................................................................................................
TERM LOAN ADMINISTRATION ................................................................
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Short term loan administration process flow chart ................................................................
Short term loan administration activity detail ................................................................
TERM LOAN DISBURSEMENT ................................................................
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Short term loan disbursement process flow chart ................................................................
Short term loan disbursement activity detail ................................................................
TERM LOAN REPAYMENT ................................................................
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Short term loan repayment process flow chart ................................................................
Short term loan repayment activity detail ................................................................
Short term loans key performance measures ................................................................
Short term loans standard reports ................................................................................................
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Staff loan administration activity detail ................................................................
disbursement activity detail................................................................................................
Staff loan repayment activity detail................................................................................................
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Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Staff loans key performance measures
Staff loans standard reports................................
Staff loans process risk and control matrix (RCM)
INVOICE PROCESSES ................................
17. PAYABLES ................................
Process description................................
Segregation of duties matrix................................
Payables process flow chart ................................
Payables activity detail ................................
Payables key performance measures
Payables standard reports................................
18. PREPAYMENTS................................
Process description................................
Segregation of duties matrix................................
Prepayments (supplier and contractor) process flow chart
Prepayments (supplier and contractor) activity detail
Staff advances (for business activities) process flow chart
Staff advances (for business activities) activity detail
Prepayments standard reports ................................
Prepayments process risk and control matrix (RCM)
19. PAYMENT PROCESS ................................
Process description................................
Segregation of duties matrix................................
Payment process flow chart ................................
Payment activity detail ................................
Payment by cheque sub-process................................
Payment by wire transfer ................................
Payment key performance measures
Payment standard reports ................................
BANK ACCOUNT ADMINISTRATION
20. BANK ACCOUNT CREATION
Process description................................
Segregation of duties matrix................................
Staff loans key performance measures ................................................................................................
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Staff loans process risk and control matrix (RCM) ................................................................
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Payables key performance measures ................................................................................................
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ents (supplier and contractor) process flow chart ................................
Prepayments (supplier and contractor) activity detail ................................................................
for business activities) process flow chart................................................................
Staff advances (for business activities) activity detail................................................................
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Prepayments process risk and control matrix (RCM) ................................................................
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Payment key performance measures ................................................................................................
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BANK ACCOUNT ADMINISTRATION ................................................................................................
BANK ACCOUNT CREATION ................................................................................................
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Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Bank account creation process flow chart
Bank account creation activity detail
21. MODIFYING EXISTING BANK ACCOUNT
Process description................................
Segregation of duties matrix................................
Modifying existing bank account process flow chart
Modifying existing bank account activity detail
22. BANK ACCOUNT CLOSING
Process description................................
Segregation of duties matrix................................
Bank account closing process flow chart
Bank account closing activity detail
CASH MANAGEMENT................................
23. DAILY CASH MANAGEMENT
Process description................................
Segregation of duties matrix................................
Daily cash management activity detail
Daily cash management key performance measures
Daily cash management standard reports
24. BANK STATEMENT RECONCILIATION
Process description................................
Segregation of duties matrix................................
Bank statement reconciliation process flow chart
Bank statement reconciliation activity detail
Bank statement reconciliation key performance measures
Bank statement reconciliation standard reports
25. CASH FORECASTING................................
Process description................................
Segregation of duties matrix................................
Cash forecasting process flow chart
Cash forecasting activity detail ................................
Cash forecasting key performance mea
Cash forecasting standard reports
Bank account creation process flow chart ................................................................
t creation activity detail ................................................................................................
MODIFYING EXISTING BANK ACCOUNT ................................................................
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Modifying existing bank account process flow chart ................................................................
existing bank account activity detail ................................................................
BANK ACCOUNT CLOSING................................................................................................
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Bank account closing process flow chart ................................................................
g activity detail ................................................................................................
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DAILY CASH MANAGEMENT ................................................................................................
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Daily cash management activity detail ................................................................................................
Daily cash management key performance measures ................................................................
Daily cash management standard reports ................................................................
BANK STATEMENT RECONCILIATION................................................................
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Bank statement reconciliation process flow chart ................................................................
Bank statement reconciliation activity detail ................................................................
Bank statement reconciliation key performance measures................................................................
Bank statement reconciliation standard reports................................................................
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Cash forecasting process flow chart ................................................................................................
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Cash forecasting key performance measures ................................................................
Cash forecasting standard reports................................................................................................
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Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
26. PETTY CASH................................
Process description................................
Segregation of duties matrix................................
Petty cash process flow chart ................................
Petty cash advance activity detail
Petty cash disbursement activity detail
Petty cash replenishment activity detail
Petty cash key performance measures
Petty cash standard reports ................................
27. MASTER DATA MANAGEMENT
Process description................................
Segregation of duties matrix................................
Master data management process flow chart
Master data management activity detail
Master data management key performance measures
Master data management standard reports
Master data management process risk and control matrix (RCM)
PERIOD CLOSING ................................
28. MONTH END PERIOD CLOSING
Process description................................
Segregation of duties matrix................................
Month end period closing process flow chart
Month end period closing activity detail
Month-end period closing key performance measures
Month-end period closing standard reports
29. YEAR END PERIOD CLOSING
Process description................................
Segregation of duties matrix................................
Year end period closing process flow chart
Year-end period closing activity detail
Year-end period closing key performance measures
25. SERVICE DELIVERY ................................
Process description................................
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Petty cash advance activity detail ................................................................................................
Petty cash disbursement activity detail................................................................................................
enishment activity detail ................................................................
Petty cash key performance measures ................................................................................................
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MASTER DATA MANAGEMENT................................................................................................
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Master data management process flow chart ................................................................
Master data management activity detail................................................................
Master data management key performance measures ................................................................
Master data management standard reports ................................................................
ta management process risk and control matrix (RCM) ................................
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MONTH END PERIOD CLOSING ................................................................
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ocess flow chart................................................................
Month end period closing activity detail ................................................................
end period closing key performance measures ................................................................
end period closing standard reports................................................................
YEAR END PERIOD CLOSING ................................................................................................
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Year end period closing process flow chart ................................................................
end period closing activity detail................................................................................................
end period closing key performance measures ................................................................
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Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Segregation of duties matrix................................
Service delivery process flow chart
Service delivery process activity detail
Service delivery key performance measures
Service delivery standard reports
Service delivery process risk and control matrix (RCM)
APPENDIX I APPROVAL HIERARCHY
APPENDIX II OVERVIEW OF JOB ROLES
Standard Documents ................................
................................................................................................
Service delivery process flow chart ................................................................................................
Service delivery process activity detail................................................................................................
livery key performance measures................................................................
Service delivery standard reports ................................................................................................
Service delivery process risk and control matrix (RCM) ................................................................
APPROVAL HIERARCHY ................................................................................................
OVERVIEW OF JOB ROLES ................................................................
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Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Introduction
The purpose of the Finance Process Control Manual (PCM) is to serve as a detailed communication guideline in
delivering consistent and structured Finance
to the Oracle R12 software and are also designed to align processes by functionality.
content from the process models developed during the Business Process Re
Foreword
The PCM was developed based on the scope and nature of business activities in the functional area for which it
is deemed responsible at the date on which the PCM was approved.
Finance Function, there may be certai
recommended that users within the Finance F
interdependencies with other functional areas within the Authority and Externa
to ensure the correct interpretation of its content.
ensure changes in business and regulatory requirements are incorporated into future releases.
Purpose
This document serves multiple purposes including
Establishes detailed procedures for the Authority to follow in executing it’s key finance responsibilities
Provides a reference guide for the Finance Department
Provides as a training manual for new employees
Supports Internal Control Framework
controls
Scope
The PCM covers the scope and sequences of activities, control points and responsibilities required to perform
technical and administrative Finance F
of each Finance process including process measures and reporting requirements.
elements:
Process Flow(s); Activity detail (step-by-step narratives to the Segregation of duties matrix; Key Performance Indicators (KPIs) documented at an Activity Process Flow level and/or for Activities; Key reports documented at Activities or Tasks; Risks and Controls Matrix (RACM) documented at a Sub
level; and Referenced documents such as policies.
The processes covered in the PCM are:
Power Billing
Receivables
Cash Receipt
The purpose of the Finance Process Control Manual (PCM) is to serve as a detailed communication guideline in
Finance processes within the Authority. The processes covered are aligned
to the Oracle R12 software and are also designed to align processes by functionality.
content from the process models developed during the Business Process Re-engineering project.
The PCM was developed based on the scope and nature of business activities in the functional area for which it
is deemed responsible at the date on which the PCM was approved. Even though the PCM is limited to the
Finance Function, there may be certain interdependencies with processes in other functional areas. It
e Finance Function familiarise themselves with the responsibilities and
interdependencies with other functional areas within the Authority and External Regulators
to ensure the correct interpretation of its content. The PCM should be reviewed and updated perio
changes in business and regulatory requirements are incorporated into future releases.
serves multiple purposes including:
Establishes detailed procedures for the Authority to follow in executing it’s key finance responsibilities
Provides a reference guide for the Finance Department
as a training manual for new employees
Internal Control Framework initiatives for documenting key activities and identifying key
The PCM covers the scope and sequences of activities, control points and responsibilities required to perform
Finance Functions. It is intended to provide a holistic view of all the key elements
process including process measures and reporting requirements.
narratives to the process flows);
Key Performance Indicators (KPIs) documented at an Activity Process Flow level and/or for Activities;Key reports documented at Activities or Tasks;Risks and Controls Matrix (RACM) documented at a Sub-Process Flow and/or Activity Process Flow
Referenced documents such as policies.
The processes covered in the PCM are:
11
The purpose of the Finance Process Control Manual (PCM) is to serve as a detailed communication guideline in
he Authority. The processes covered are aligned
to the Oracle R12 software and are also designed to align processes by functionality. The PCM is driven by
engineering project.
The PCM was developed based on the scope and nature of business activities in the functional area for which it
Even though the PCM is limited to the
n interdependencies with processes in other functional areas. It is thus
unction familiarise themselves with the responsibilities and
l Regulators (where applicable)
The PCM should be reviewed and updated periodically to
changes in business and regulatory requirements are incorporated into future releases.
Establishes detailed procedures for the Authority to follow in executing it’s key finance responsibilities
initiatives for documenting key activities and identifying key
The PCM covers the scope and sequences of activities, control points and responsibilities required to perform
It is intended to provide a holistic view of all the key elements
process including process measures and reporting requirements. It comprises the following
Key Performance Indicators (KPIs) documented at an Activity Process Flow level and/or for Activities;
s Flow and/or Activity Process Flow
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Provisions
Fixed Assets
o Fixed Assets-Projects (Capital Work in Progress)
o Fixed assets-non-projects
o Fixed assets ( tagging and verification)
o Fixed assets (disposal)
Loans
o Project loan administration
o Long-term loan disbursement
o Short-term loan disbursement
o Project loan repayment
Staff loans
o Staff loan administration
o Staff loan disbursement
o Staff loan repayment
Invoice processes
o Payables
o Payments
o Prepayments
Bank account administration
o Bank account creation
o Modifying existing bank account
o Bank account closing
Cash management
Bank statement reconciliation
Cash forecasting
Petty cash
Period closing
o Month-end financial reporting
o Year-end financial reporting
Information processing objectives
Processing of finance transactions are appropriately approved
Purchases are approved by appropriate individuals and recorded
Receipts are based on legitimate purchases;
Purchase orders, invoices, goods received notes and inspection notes (where applicable) are properly
matched before payments are made;
Disbursement of organisation funds are properly authori
Access to update, change and delete standing data information is limited to appropriate individuals;
and
There is adequate segregation of authorisation, custodia
System training requirements
The following systems are applicable to this process.
Projects (Capital Work in Progress)
projects ( property plant and equipment)
Fixed assets ( tagging and verification)
)
Project loan administration
term loan disbursement
term loan disbursement
Project loan repayment
tion
Staff loan disbursement
Bank account creation
Modifying existing bank account
Bank statement reconciliation
end financial reporting
end financial reporting
Information processing objectives
Processing of finance transactions are appropriately approved
Purchases are approved by appropriate individuals and recorded on a timely basis;
Receipts are based on legitimate purchases;
Purchase orders, invoices, goods received notes and inspection notes (where applicable) are properly
matched before payments are made;
Disbursement of organisation funds are properly authorised, recorded and monitored;
Access to update, change and delete standing data information is limited to appropriate individuals;
There is adequate segregation of authorisation, custodial and accounting functions.
System training requirements
are applicable to this process.
12
on a timely basis;
Purchase orders, invoices, goods received notes and inspection notes (where applicable) are properly
sed, recorded and monitored;
Access to update, change and delete standing data information is limited to appropriate individuals;
l and accounting functions.
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
MS Excel MS Project Online research tools
Oracle
Applicable policies
The following policies and regulations
Financial Accounting manual
and regulations are referenced to this manual.
manual
13
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Finance operating modelINSERT FINANCE OPERATING MODELOPERATING MODEL
14
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Symbol legend
Symbol Legend
Start
Control Reference Point
Approval Process
Decision Point
Manual Input
Manual Process
Automated Process
Referenced Process
Output Document
Pre-defined Workfl
Process Flow Connector
Process End
A
End
Start
CRP Control Reference Point
Approval Process
Automated Process
Referenced Process
Output Document
defined Workflow Routing
Process Flow Connector
16
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
1.0 STRATEGIC MANAGEMENT
Process description
Overview
This process provides guidance for delivering strategic value to the Authority by the Finance Function
Process Owner
Deputy Chief Executive, Finance
Process Objectives
To ensure control and delivery of value streams to the business.
To provide a framework by which corporate and functional strategies are aligned
Process Scope
This process applies to finance value delivery to the business
Timeframe
N/A
STRATEGIC MANAGEMENT
This process provides guidance for delivering strategic value to the Authority by the Finance Function
To ensure control and delivery of value streams to the business.
To provide a framework by which corporate and functional strategies are aligned
This process applies to finance value delivery to the business
17
This process provides guidance for delivering strategic value to the Authority by the Finance Function.
To provide a framework by which corporate and functional strategies are aligned
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Strategic management process flow chartStrategic management process flow chart
1. DCE,F andrelevant
stakeholdersdefine strategy
for Finance
Function
2. DCE, F setsstrategy actionpoints for each
finance unit
3. DCE, Fcoordinates
implementation of finance
strategy
4. DCE, Freviews
performance againststrategy
5. DCE, F
implementscorrective
actions wheresignificant
variances exist
End
18
Process Control Manual for Finance
19Volta River AuthorityCONTROLLED DISCLOSURE
Strategic management process activity detail
ActID
ProcessFlow
Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Define Financestrategy
Deputy ChiefExecutive, Finance
Deputy Chief Executive, Finance and relevantstakeholders define strategy for FinanceFunction.
Finance strategy should be aligned to overallstrategy of the Authority and aimed at offeringsupport in achieving corporate strategy
Manual FinanceStrategy
2. Set strategyaction pointsfor financeunits
Deputy ChiefExecutive, Finance
Deputy Chief Executive, Finance sets strategyaction points for each finance unit aligned tothe overall Finance Strategy
Manual
3. Implementstrategy
Deputy ChiefExecutive, Finance
Deputy Chief Executive, Finance coordinatesimplementation of finance strategy
Manual
4. Reviewperformanceagainststrategy
Deputy ChiefExecutive, Finance
Deputy Chief Executive, Finance reviewsperformance against strategy
Manual
5. Implementcorrectiveactions
Deputy ChiefExecutive, Finance
Deputy Chief Executive, Finance implementscorrective actions where significant variancesexist
Manual
START
END
Process Control Manual for Finance
20Volta River AuthorityCONTROLLED DISCLOSURE
Strategic management key performance measures
Performance Measure Target Frequency Reviewer Reviewee/ process owner
1 % of strategic goals achieved Per agreed
performance
objectives
Quarterly Chief Executive Deputy Chief Executive, Finance
Strategic management standard reports
SN Report Name Brief Description Purpose SourceReport
FrequencyReviewer
Strategic
performance
report
This report shows actual
strategic performance
against strategic by
finance units
To identify areas and reasons
for significant variances to re-
align performance to strategy
Manual Quarterly Chief Executive
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
2.0 MANAGEMENT INFORMATION REPORTING
Process description
Overview
The purpose is to describe the activities to be followed to ensure relevant and timely management information
is distributed to identified stakeholders
Process Owner
Director Finance
Process Objectives
To ensure relevant and timely information for management and executive decision making
To ensure the quality of reporting is validated by the relevant stakeholders
Process Scope
This process applies to finance related information that impacts on VRA business performance
Timeframe
N/A
Segregation of duties matrix
Activity / Resources
Generate reports
Review report
Follow up on corrective actions
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
MANAGEMENT INFORMATION REPORTING
The purpose is to describe the activities to be followed to ensure relevant and timely management information
to identified stakeholders
To ensure relevant and timely information for management and executive decision making
To ensure the quality of reporting is validated by the relevant stakeholders
related information that impacts on VRA business performance
Segregation of duties matrix
FinancialAccountingManager
DirectorFinance
Deputy ChiefExecutive,Finance
IN
RV
RV
21
The purpose is to describe the activities to be followed to ensure relevant and timely management information
To ensure relevant and timely information for management and executive decision making
To ensure the quality of reporting is validated by the relevant stakeholders
related information that impacts on VRA business performance
Deputy ChiefExecutive,Finance
RV
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Management information reporting process flow chartManagement information reporting process flow chart
1. DCE, F andDF engage
stakeholdersto definereporting
requirementsand timetable
2. FAM generatesand reviews relevant
reports
3. FAMforwards reports
generated
outside thesystem to DF
4. DF generates
consolidated reportsand forwards to DCE,
F
5. DCE, F reviews
consolidatedreport and
distributes torelevant
stakeholders for
discussion andfurther action
6. FAM liaiseswith heads ofbusiness unitsto implement
correctiveactions
7. DF reportson follow-up
actions to
DCE,F andother
stakeholders
End
22
Process Control Manual for Finance
23Volta River AuthorityCONTROLLED DISCLOSURE
Management information reporting process activity detailActID
ProcessFlow
ResponsibilityTasks Involved
TransactionType(Manual/Auto)
Output ControlRef. Point(CRP)
1. Define/ reviewreportingrequirements
Deputy ChiefExecutive Finance
Deputy Chief Executive Finance and DirectorFinance engage relevant internal stakeholdersto define reporting requirements and timetable
(Reporting requirements should be reviewedperiodically, preferably every year)
Manual Reportingrequirements
2. Generate andreview reports
FinancialAccountingManager
Financial Accounting Manager generate andreview relevant reports
Auto ManagementInformationReport
3. Generatereports
Category Officer For information generated outside the system,e.g. compliance issues, Category Managerforwards report to Director Finance
Manual ManagementInformationReport
4. Generateconsolidatedreports
Director Finance Director Finance generates consolidated reportsand forwards to Deputy Chief Executive,Finance
Auto
5. Reviewconsolidatedreports
Deputy ChiefExecutive, Finance
Deputy Chief Executive, Finance reviewsconsolidated report and distributes to relevantstakeholders for discussion and further actionwhere applicable.
Manual
6. Implementimprovementactions
FinancialAccountingManager
Financial Accounting Manager liaises withheads of business units to implement correctiveactions
Manual Documentedimprovementopportunity
7. Report onfollow up
Director Finance Director Finance provides report on follow-upactions to Deputy Chief Executive, Finance and
Manual
START
Process Control Manual for Finance
24Volta River AuthorityCONTROLLED DISCLOSURE
ActID
ProcessFlow
ResponsibilityTasks Involved
TransactionType(Manual/Auto)
Output ControlRef. Point(CRP)
actions other stakeholders
Management information reporting key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process
owner1. Timely submission of management information
reports
5 working days after
month end
Monthly Deputy Chief
Executive, Finance
Director Finance
2. % of timely implementation Per agreed
implementation plan
Monthly Deputy Chief
Executive, Finance
Director Finance
Management information reporting standard reports
SNReport
NameBrief Description Purpose Source
Report
Frequency
Reviewer
1. Finance
reporting
pack
The reporting pack comprises:
Overview of spend variance against
budget by category and business unit
Overview of spend analysis by
category and business unit
Compliance report highlighting
significant compliance issues
Target cost savings and variance
analysis
Status on follow up actions
To provide executive and
management with relevant
spend information for
information purposes,
decision making and
business performance
review
ERP/ other
relevant data
Monthly/
Quarterly
Deputy Chief
Executive
Finance
Management information reporting process risk and control matrix (RCM)
Key risks
END
Process Control Manual for Finance
25Volta River AuthorityCONTROLLED DISCLOSURE
1 Management reporting targets may not be achieved
No
.
Su
bP
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
eC
ate
go
ry
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e(C
,A,V
,R)
Fin
an
cia
lS
tate
me
nt
Ac
co
un
t/D
isc
los
ur
e
Fin
an
cia
lS
tate
me
nt
As
ser
tio
n
Co
ntr
ols
/P
oin
tso
fF
oc
us
Ap
pli
ca
ble
Or
ac
leB
us
ine
ss
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y(E
,D,W
,M,Q
,A)
Po
lic
y/
Pr
oc
ed
ur
eR
efe
re
nc
e
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
1
Management
Information
Reporting
To ensure
reports are
timely and
relevant for
management
use
N/A N/A N/A N/A
Deputy Chief Executive
Finance and Director
Finance engage
relevant internal
stakeholders to define
reporting requirements
and timetable.
Adherence to
management reproting
targets are monitored
quarterly
R P M N/A
Deputy Chief
Executive,
Finance
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
3.0 BILLING PROCESS
Process description
Overview
The purpose of the process is to describemeters are read at sub-stations to distribution of bills
Process Owner
Billing Officer
Process Objectives
To ensure meters are accurately read To ensure bills are accurately To ensure bills are appropriately approved To ensure bills are dispatched
Process Scope
The process applies to sale of power by the Authority
Timeframe
Aligned to the billing cycle
Segregation of duties matrixActivity / Resources
Convert and input units/adjustmentsGenerate electronic bills
Review draft bill/ adjustments
Approve and sign final bill/adjustments
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
f the process is to describe billing activities. It provides details of activities fromdistribution of bills to customers.
are accurately readand completely computed and recorded in the system
bills are appropriately approveddispatched to customers in a timely manner
sale of power by the Authority
matrixBillingOfficer
FinancialAccountingManager
BillingApplication
IN
PR
RV
26
. It provides details of activities from the point when
recorded in the system
ApplicationDirectorFinance
PR
AP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Billing process flow chart
Predefinedworkflowrouting
1. Billing Officerpicks meter
reading atGRIDCO’s
marketoperations
2. Billing Officerconverts unitsand rates into
valuestogenerate draft
bill in excel
3. Billing Officerforwards draftbill to FAM for
review and
approval
4a. FAMreviews
draft bills
Ok?
4b. FAMapproves
draft bills
A
5. Billing Officer inputs
approved values intooracle AR to generateelectronic invoice and
a transmittal letter
7. FAM reviewselectronic bills and
recommends forapproval
6. Billing Officer routeselectronic invoice and
transmittal letter toFAM
8. Director Finance
approves and signselectronic bill and
transmittal
A
11. FAM approves andposts transactions to
GL
End
4c. FAMreverts to
Billing
Officer
9a. BillingOfficer
forwards signedbills to registry
for dispatch
10. Registryregisters anddispatches
bills to
customers
9emails final bills to
27
9b. Billing Officeremails final bills to
customers
Process Control Manual for Finance
28Volta River AuthorityCONTROLLED DISCLOSURE
Billing process activity detail
ActID
ProcessFlow
Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Read meter Customerrepresentative, Sub-station Manager
Sub-station Manager and CustomerRepresentative read meter and confirm theaccuracy of meter readings.
Manual Meterreadings
2. Convert unitsto values
Billing Officer Billing Officer picks meter readings fromGRIDCo’s Market Operations Unit andconverts units and associated rates into valuesin Excel to generate draft bill
Manual Unitsconversionexcelspreadsheet/draft bill
3. Seek approval Billing Officer Billing Officer seeks approval from FinancialAccounting Manager for draft bill
Manual Draft bill
4. Review andapprove draftbill
FinancialAccounting Manager
Financial Accounting Manager reviews andapproves draft bill in excel
Manual Approvedmanual bill
5. Input values Billing Officer Billing Officer inputs approved manual billfrom excel into Oracle account receivablemodule and generates electronic bill/ invoice.A transmittal letter is automatically generated.
Manual ElectronicBill andTransmittalLetter
6. Forward billsfor review
Billing Officer Billing Officer electronically routes bills withthe automatically generated transmittal letterto the Financial Accounting Manager forreview
Auto
7. Review bill FinancialAccounting Manager
Financial Accounting Manager reviews bill andrecommends to Director Finance for approvaland signature
Auto Reviewed bill
START
CRP
Process Control Manual for Finance
29Volta River AuthorityCONTROLLED DISCLOSURE
ActID
ProcessFlow
Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
8. Approve andsign bills
Director Finance Director Finance approves, signs electronic billand transmittal letter and forwards to registryfor dispatch.
Manual Final bill andtransmittalletter
9. Dispatch bills Billing Officer Billing Officer receives electronic notificationfrom Director Finance and emails final bills tocustomers and requests confirmation of receipt
Manual Email of billsdispatched
10. Register anddispatch bills
Registry VRA registry registers bills and dispatches tocustomers
11. Post toGeneralLedger
Billing Supervisor The Financial Accounting Manager approvestransactions in sub-ledger and posts intoGeneral ledger
Auto
Billing key performance measures
Performance Measure Target Frequency ReviewerReviewee/ processowner
1. Receipt of meter reading to customer billing 5 days Monthly Financial
Accounting Manager
Billing Officer
2. Customer billing to dispatch of bills 2 days Monthly Financial
Accounting Manager
Billing Officer
3. % of error rates in bills generated Zero Monthly Financial
Accounting Manager
Billing Officer
END
CRP
Process Control Manual for Finance
30Volta River AuthorityCONTROLLED DISCLOSURE
Billing standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Revenue
segmentation by
generation type
The report comprises of revenue
from the generation types (i.e.
thermal and hydro) for the
month
To recognise revenues
from each generation
type
Giga Watt hours
generated by each
generation type for
the month
Monthly Director
Finance
2. Revenue per
customer
The report provides revenue per
customer and by type of
customer e.g. Government,
private, sector, etc
To analyse percentage of
total revenue contributed
by each customer
Billing Application Monthly Director
Finance
3. Adjustment Report The report provides the details of
adjustments recorded during the
month
To analyse the
adjustments recorded in
subscriber account
during the period and
book in the financials
Billing System Monthly
Process Control Manual for Finance
31Volta River AuthorityCONTROLLED DISCLOSURE
Billing process risk and control matrix (RCM)
Key risks
1 Invoices may not be recorded properly in Sales & AR
2 Selling price, quantity and terms may be inaccurate leading to erroneous sales and receivables balances
3 Invoices may not be recorded in the appropriate period (cut-off)
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/
Po
ints
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
1 Billing
All meter readings
are completely and
accurately
billed/invoiced and
recorded
F A, C Sales & AR O, C, E
Converted units and associated
rates are forwarded to Financial
accounting manager to review
and approve. Financial
Accounting Manager checks
conversions to avoid the risk of
overstating or understating
receivables.
Final customer bills are approved
by Director Finance prior to
issuance to customers
Subsidiary ledger accounts
receivable balances are reconciled
to the general ledger or other
control totals on a regularly
scheduled basis.
M D M N/A
Financial
Accounting
Manager
2 Billing
Invoices are
recorded accurately
and completely in
Sales & AR
F C, A Sales & AR AC
Entries in individual customer
accounts are posted only from
approved converted units source
documentsM D E N/A
Financial
Accounting
Manager
Process Control Manual for Finance
32Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/P
oin
ts
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
3 Billing
The price, quantity
and amount on
each invoice is
accurate.
F C, A Sales & AR A,C
Invoices are automatically
generated by the system based
on approved converted units S D E N/A
Financial
Accounting
Manager
4 Billing
Only appropriate
users can generate
sales invoices.
F R Sales, AR R
Billing activity is performed or
validated independent of
accounts receivable functions
Billing system access is
appropriately restricted to those
with functional responsibility.
Only appropriate users can
generate sales invoices and
duties are adequately segregated
(e.g. between generating sales
invoices and cash receipting)
M, S D E N/A
Financial
Accounting
Manager
5 Billing
Invoices are
recorded in the
appropriate period.
F CV Sales, AR CO, E
Cut-off procedures have been
established to ensure that sales
are recognised in the proper
period
M, S D M N/A
Financial
Accounting
Manager
Process Control Manual for Finance
33Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/P
oin
ts
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
6 Billing
Taxes are
appropriately billed
and recorded where
necessary.
F C,A)Sales, A/R,
AccruedsA, CL, E, C
Appropriate sales or value-
added taxes billed in accordance
with local laws
Documented procedures for
developing, summarising, and
reporting required tax
information exist.
Customers tax status is
appropriately assigned,
maintained and reviewed.
M D E N/A
Financial
Accounting
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
4.0 RECEIVABLES PROCESS
Process description
Overview
The receivables process is initiated when the
Process Owner
Receivables Officer
Process Objectives
To ensure accounts receivables are complete and accurate
To ensure defaulting customers are identified
To issue dunning letters to defaulting customers
Process Scope
This scope applies to all receivables from power sales
Timeframe
Aligned to power sales cycle
Segregation of duties matrixActivity / Resources
Process unprocessed transactions
Run reconciliation and ageing analysis report
Review ageing analysis report
Discuss ageing analysis reportRun dunning letters
Approve and sign dunning letters
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
PROCESS
process is initiated when the Billing Supervisor posts final bills to the general ledger.
ccounts receivables are complete and accurate
To ensure defaulting customers are identified
to defaulting customers
from power sales
ation of duties matrixReceivables
Officer
Treasury
Manager
Departmental
Heads
PR
Run reconciliation and ageing analysis report IN
RV
IN
34
final bills to the general ledger.
Departmental
Heads
Director
Finance
IN
AP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Receivables process flow chartrocess flow chart
2. ReceivablesOfficerunposted items
report to identifyunposted transaction
End
10. ReceivablesOfficer emails softcopy of dunning
letters to customers
5. Receivables Officerruns, prints ageinganalysis report and
forwards for review
1. Receivables Officer
runs account statusand accounts
analysis report
3. Receivables Officer
processesunprocessedtransactions
6. TreasuryManager reviews
ageing analysisreport and
forwards for mgtdiscussions
7. Departmentalheads discuss
ageing analysisreports at
weekly mtgs
8. ReceivablesOfficer runs dunning
letters, prints andforwards for
approval and signing
9. Director
Financeapproves andsigns dunning
letters
11. ReceivablesOfficer forwards
hard copy ofdunning letters to
registry for
dispatch
12. Registry
registers anddispatchesdunning
letters
A
4. Receivables Officerreconciles sub-ledger
and general ledger
using account statusand accounts
analysis report
35
Process Control Manual for Finance
36Volta River AuthorityCONTROLLED DISCLOSURE
Receivables process activity detail
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Run reports Receivables Officer Receivables Officer runs account statusreport in accounts receivables moduleand accounts analysis report in generalledger
Auto Account statusreport
Account AnalysisReport
2. Run un-posteditems report
Receivables Officer Receivables Officer runs un-posteditems report to identify unprocessedtransactions
Auto Un-posted itemsreport
3. Processunprocessedtransactions
Receivables Officer Receivables Officer processesunprocessed transactions to completereconciliation
Auto
4. Performreconciliation
Receivables Officer Receivables Officer reconciles sub-ledger to general ledger using theaccount status and account analysisreports
Auto Reconciliationreport
5. Run ageinganalysis report
Receivables Officer Receivables Officer runs ageing analysisreport in receivables module andforwards to Treasury Manager forreview
Auto Ageing analysis
6. Review ageinganalysis reports
Treasury Manager Treasury Manager reviews ageinganalysis report and attaches to weeklyreport for management meeting
Manual
7. Discuss reports Departmental Heads Departmental Heads discuss ageinganalysis at weekly managementmeetings to reach a consensus onwhether dunning letters are to be
Manual
START
Process Control Manual for Finance
37Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
issued.
8. Run dunningletters inreceivablesmodule
Receivables Officer Receivables Officer runs dunning letterin receivables module, prints andforwards to Director Finance forapproval and signing
Auto / Manual Dunning letters
9. Approve and signdunning letters
Director Finance Director Finance approves and signsdunning letters, notifying theReceivables Officer
Manual
10. Email dunningletters tocustomers
Receivables Officer Receivables Officer emails soft copies ofdunning letters to defaulting customers.
Auto
11. Send dunningletters to registry
Receivables Officer Receivables Officer sends hard copies ofdunning letters to registry for dispatch.
Manual
12. Dispatch dunningletters
Registry Registry dispatches dunning letters tocustomers
Manual
Receivables key performance measures
Performance Measure Target Frequency Reviewer Reviewee/ process owner
1. % of receivables exceeding agreed
payment term ( i.e. 15, 30, 45, and 60
days after receipt of bills) days as a % of
total value of debt
Monthly Director Finance/
Director Planning
and Business
Development
Treasury Manager
2. Number of notifications sent to Monthly Director Finance/ Treasury Manager
END
CRP
Process Control Manual for Finance
38Volta River AuthorityCONTROLLED DISCLOSURE
Performance Measure Target Frequency Reviewer Reviewee/ process owner
customers 5 days prior to expiration of
agreed payment terms
Director Planning
and Business
Development
3. % of defaulting customers contacted
after expiration of payment period (15,
30, 45, and 60 days)
Monthly Director Finance/
Director Planning
and Business
Development
Treasury Manager
Receivables standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Account status
report
The report shows account
opening balances and
payments by customer
To keep management
updated with customer
account status
ERP Monthly Treasury Manager
2. Age analysis
report
The report analysis account
receivable by length of time
outstanding
To identify defaulting
customers and to
determine provisions
against overdue debts
Receivables
application
Monthly Financial Accounting
Manager
Process Control Manual for Finance
39Volta River AuthorityCONTROLLED DISCLOSURE
Receivables process risk and control matrix (RCM)
Key risks
1 Account receivable (AR) may be misstated
2 Unauthorised adjustments to accounts receivable may be made
No
.
Su
bp
ro
ce
ss
CO
SO
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/
Po
ints
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
1
ReceivablesControl ActivityTo ensure all
receivables are
identified and
stated
accurately
F C, A IS A, C, Co
Receivables Officer
generates and
reconciles account
status report and
account analysis report
to ensure the accuracy
and completeness of
receivables for a stated
period.
S D M N/AReceivables
Officer
2
ReceivablesControl ActivityTo ensure
doubtful or
bad debts are
identififed and
provided for
F A BS N/A
Management team
reviews ageing analysis
report to reach a
consensus regarding
when dunning letters
are to be issued.
Dunning letters are run
based on the outcome
of management
meetings and
forwarded for approval
and signing
M D M
Debt
provision
policy
Director
Finance
Process Control Manual for Finance
40Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/
Po
ints
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
leB
usin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
3
Receivables
All adjustments
to accounts
receivable are
processed for
the correct
amount,
authorized and
recorded in the
right period
F V AR V
All adjustments to AR
are reviewed and
approved by
management
Procedures governing
the adjustment of AR
are documented
M N/A EAdjustment
policy
Director,
Fiannce
4
Receivables
Access to
Accounts
Receivable is
appropriately
secured
F R AR C,E
Accounts and notes
receivable system
access is restricted to
only appropriate
users and duties are
adequately segregated
(e.g. between cash
receipts processing
and posting to the
accounts receivable
subsidiary records,
and making entries to
the general ledger).
S N/A N/A N/A
Deputy Chief
Executive,
Finance
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
5.0 RECEIPT PROCESS
Process description
Overview
The purpose of the process is to describe the
Process Owner
Cashier
Process Objectives
To ensure accuracy of receipts
To ensure all receipts are captured in
To ensure receipts are lodged into the appropriate bank accounts
Process Scope
The process applies to all cash receipt
Timeframe
The process is aligned to the power and other
Segregation of duties matrixActivity / Resources
Receive paymentDetermine bank account to pay intoGenerate, issue and apply receiptPost transaction to the general ledger
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
The purpose of the process is to describe the activities involved in receiving payments
l receipts are captured in the accounts receivables module and appropriate receipt issued
To ensure receipts are lodged into the appropriate bank accounts
all cash receipts.
and other sales cycles
Segregation of duties matrixCashier Cash Management
SupervisorIN
INPR
Post transaction to the general ledger IN
41
payments.
and appropriate receipt issued
ManagementSupervisor
IN
IN
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Receipt process flow chart
1a. Cashierreceivespayment
1b. Cashierconsults with
Cash MgtSupervisor on
bank account topay into
2a. Cashier generateselectronic receipts
2b. Cashierissues
receipt tocustomer
3. Cashier appliesreceipt to customerinvoices in system
4. Cash MgtSupervisor posts
daily transaction toGL
End
42
Process Control Manual for Finance
43Volta River AuthorityCONTROLLED DISCLOSURE
Receipt process activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Receive payment Cashier Cashier receives payment (either cash orcheque) and consults with Cash ManagementSupervisor on the bank account to pay into.
Miscellaneous receipts are received into a cashclearing account, batched and transferred intoa bank account daily
Manual Pay-in slip/bank advice
2. Generate andissue receipts
Cashier Cashier generates receipts and issues receipt tocustomer. This automatically updates theaccounts receivables module
Wire transfers are recognised in the receivablesmodule during reconciliation by ReconciliationOfficer
Auto/ Manual Receipts
3. Apply receipts Cash ManagementSupervisor
Cash Management Supervisor applies receiptsto customer invoices
Auto
4. Post to generalledger
Cash ManagementSupervisor
Cash Management Supervisor posts dailytransactions to the general ledger
Auto
END
START
Process Control Manual for Finance
44Volta River AuthorityCONTROLLED DISCLOSURE
Receipt key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner
1. % of unapplied receipts Zero Monthly Treasury Manager Cash Management Supervisor
2. Time taken to apply receipts 1 day Daily Treasury Manager Cash Management Supervisor
Receipt standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Receipt by type This report provides analysis
of receipts by cheque, cash
and wire transfer
To provide information on
mode of payment by customers
for risk analysis purposes
ERP Quarterly Receivables
Supervisor
2. Receipt adjustment
report
This report provides
information on all
adjustments made to receipts
To provide information on
nature and type of adjustment
to receipts
ERP Monthly Receivables
Supervisor
3. Rx-receipts report This report provides
information on specific bank
receipts
To provide information for
purposes of cash management,
planning and forecasting
ERP Monthly Treasury Manager
4. Applied receipts report This report provides
information on receipts that
have been applied to
customer invoices
To provide total balances of
customers
ERP Monthly Receivables
Supervisor
5. Receipts awaiting bank
clearance
This report shows cheque
payments from customers
that are yet to be cleared from
the bank
To provide information for
purposes of cash management,
planning and forecasting
ERP Monthly Receivables
Supervisor
Process Control Manual for Finance
45Volta River AuthorityCONTROLLED DISCLOSURE
Receipt process risk and control matrix (RCM)
Key Risks:
1. Cash receipts are inaccurately or not completely recorded resulting in misstated receivables
2. These is inadequate segregation of duties increasing the risk of fraud or misappropriation of funds
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
tA
cc
ou
nt/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/P
oin
tso
f
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
1 Receipts
Cash receipts
are accurately
recorded.
F CAR N/A E, C
Cash receipts are promptly depositied
and recorded in the proper period.
Unapplied cash receipts are aged and
followed up on in a timely manner.
Dunning procedures are followed to
detect account discrepancies
There is segregation of duties in the
cash collection and application
functions.
M D E N/A Cashier
Process Control Manual for Finance
46Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
As
se
rti
on
Co
ntr
ols
/
Po
ints
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
es
s
Pr
oc
es
sT
oo
ls
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
2 Receipts
Duties are
appropriately
segregated
O R N/A N/A
Personnel responsible for
handling/processing incoming cash
receipts and related bank deposits do
not have systems access to post
remittances to individual customer
accounts or access to the general ledger.
Individuals responsible for applying
customer collections to accounts
receivable have responsibility for
handling cash receipts or processing
customer orders.
Personnel responsible for cash receipts
processing do not have any bank
S P E N/A
Financial
Accouting
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
6.0 PROVISIONS PROCESS
Process description
Overview
The purpose of the process is to describe steps
Process Owner
Financial Accounting Manager
Process Objectives
To establish well defined, effective and efficient provisioning process
To ensure provisions are accurate and optimal
on provisions
Process Scope
The process applies to all activities directly and indirectly related to provision
receivables.
Timeframe
The process is aligned to the annual financial
Segregation of duties matrixActivity / Resources
Determine the need for adjustments to provisionsImplement proposed adjustments
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
PROVISIONS PROCESS
describe steps involved in setting provisions.
To establish well defined, effective and efficient provisioning process
To ensure provisions are accurate and optimal based on the International Financial Reporting Standard
all activities directly and indirectly related to provisions on
annual financial review period of the Authority.
of duties matrixFinancial AccountingManager
Determine the need for adjustments to provisionsIN
47
based on the International Financial Reporting Standard
on expenses and power sales
Director Finance
IN
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Provisions process flow chartrocess flow chart
1. ReceivablesSupervisor runs
ageing report and
forwards for review
2a. FAMreviews report
to identifydoubtful debts
2b. FAM assessesthe adequacy of
provisions andadviced Director
Finance
3. DirectorFinance directsFAM on next
steps
4. FAMimplements
feedback fromDirector Finance
Feedback could be to adjustprovisions for the year or not to
End
48
Feedback could be to adjustprovisions for the year or not to
take action
Process Control Manual for Finance
49Volta River AuthorityCONTROLLED DISCLOSURE
Provisions activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Run ageing report ReceivablesSupervisor
Receivables Supervisor runs ageing report
and forwards to Financial Accounting
Manager for review
Auto Ageing report
2. Analyse and review
ageing report
FinancialAccountingManager
Financial Accounting Manager reviews
ageing report to identify doubtful debts,
assesses the adequacy of provisions and
advises Director Finance appropriately.
Manual
3. Provide feedback Director Finance Director Finance provides feedback,
directing Financial Accounting Manager
on next steps.
Manual
4. Implement feedback FinancialAccountingManager
Financial Accounting Manager
implements feedback from Director
Finance and acts as directed
The Authority’s policy is to provide for 5%
of total debtors amount.
Manual
END
START
Process Control Manual for Finance
50Volta River AuthorityCONTROLLED DISCLOSURE
Provisions key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner
1. Adequacy of provisions Per provisioning
policy
Quarterly Deputy Chief
Executive, Finance
Director Finance
Standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Age analysis report The report analysis account
receivable by length of time
outstanding
To identify defaulting
customers and to
determine provisions
against overdue debts
Receivables
application
Monthly Financial Accounting
Manager
Process Control Manual for Finance
51Volta River AuthorityCONTROLLED DISCLOSURE
Provisions process risk and control matrix (RCM)Key Risks:
1 Reserve for doubtful accounts is misstated
2 Accounts may be inappropriately written off
3 Inadequate provisions
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/P
oin
ts
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
1 Provisions
Accounts
receivable is
properly aged
F A N/A V, A
Accounts receivable are
aged in accordance with
Corporate Accounting
procedures.
Aging reports are
periodically verified to
ensure proper accurate
aging
M D Q
Debt
provisioning
policy
Financial
Accounting
Manager
2 Provisions
Reserve for
doubtful
accounts is
properly
calculated &
recorded
F AA/R and G&A
ExpenseV, A
Management assesses the
adequacy of provisions in
consultation with Director
Finance
M P A N/A
Financial
Accounting
Manager
Process Control Manual for Finance
52Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/P
oin
ts
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
leB
usin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
3 Provisions
Account write offs
are approved by
appropriate
management
F V,RA/R and
G&A ExpenseOC
Accounts receivable disputed
items and bad debts written
off and recoveries of bad
debts are reviewed by
Director, Finance
Reports of all provisions and
write-offs are reviewed by
Director Finance, Deputy
Chief Executive, Fiannce
Access to effect write offs of
customer accounts is
appropriately restricted to
authorized personnel
M, S D, P E
Debt
provisioning
policy
Director,
Finane
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
FIXED ASSETS PROCESSES
7.0 FIXED ASSETS - CAPITAL WORK
Process descriptionOverview
The purpose of the process is to describe
Process Owner
Fixed Assets Supervisor
Process Objectives
To ensure capital work-in-progress is
To ensure completed projects
To ensure completed projects
Process Scope
This process applies to construction of capital projects
Timeframe
Aligned to projects
Segregation of duties matrixActivity / Resources Fixed
AssetsSupervisor
Enter invoice details andclassify assetsReview invoice distribution
Update CWIP and run massadditionsIssue certificate of completion
Review and approve updatedCWIP/ transfer to fixed assetsregister
Legend
Input
Processing
IN
PR
FIXED ASSETS PROCESSES
CAPITAL WORK-IN-PROGRESS
The purpose of the process is to describe activities involved in accounting for capital work
progress is accurately and completely accounted for
projects are covered by a certificate of completion
projects are transferred to property, plant and equipment
n of capital projects
Segregation of duties matrixFixedAssetsSupervisor
AccountPayablesOfficer
AccountPayablesSupervisor
IN
RV
IN
53
involved in accounting for capital work-in-progress.
accounted for
plant and equipment
ProjectManager
FinancialAccountingManager
IN
RV
AP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Review
Approval
Informed
RV
AP
IF
54
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets - capital work-
1. FinanceAdmin. Assistant
receives and
registers invoicefrom supplier
2 . FinanceAdmin.
Assistantforwards
invoice to APOfor processing
3. APO enters invoicedetails into systemclassifying asset as
capital work inprogress
4a. AP Supervisorreviews invoice
distribution
Ok?
5. AP Supervisor runsmass addition create
programme to transfer
invoices to FA modulethen (6) posts
transaction to GL
7. FAS runs ‘prepare
mass additions’programme to
identify and reviewCWIP invoices in the
system
8. FAS updates CWIPregister and(9) runs
mass additionsreport, notifyingFAM to review
10. FAM reviews andapproves updated
CWIP register
11. FAS poststransaction to GL
Yes
-in-progress process flow chart
Assistantreceives and
registers invoicefrom supplier
invoice to APOfor processing
APO enters invoicedetails into systemclassifying asset as
capital work in
AP Supervisorreviews invoice
4b. Notify APO
AP Supervisor runsmass addition create
programme to transfer
invoices to FA module,posts
transaction to GL
FAS runs ‘prepare
mass additions’programme to
identify and reviewCWIP invoices in the
FAS updates CWIPruns
mass additionsnotifying
FAM to review
FAM reviews andapproves updated
CWIP register
transaction to GL
12. Project Managerissues certificate of
completion to FAS ifproject is complete at
reporting, notifyingFAM and DF
13. FAS transfersasset from CWIP tofixed asset registerbased on certificate
of completion
14. FAM reviews andapproves transfer
No
End
55
Project Managerissues certificate of
completion to FAS ifproject is complete at
notifyingFAM and DF
FAS transfersasset from CWIP tofixed asset registerbased on certificate
of completion
FAM reviews andapproves transfer
Process Control Manual for Finance
56Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets - capital work-in-progress activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Receive invoice FinanceAdministrativeAssistant
Finance Administrative Assistant receivesinvoice from supplier, registers in exceldocument log book and forwards toAccount Payables Officer (DisbursementManager and Supervisor are notified).
Manual SupplierInvoice
2. Forward invoice topayables unit
FinanceAdministrativeAssistant
Finance Administrative Assistant forwardsinvoice to Account Payables Officer forprocessing
Manual
3. Enter invoicedetails and classifyasset
Account PayablesOfficer
Account Payables Officer enters invoicedetails and classifies asset as capital work inprogress at the invoice distribution stage
Auto Paymentvoucher
4. Review invoicedistribution
Account PayablesSupervisor
Account Payables Supervisor reviewsinvoice distribution to ensure anappropriate asset clearing account has beenselected
Auto
5. Run ‘massadditions create’programme
Account PayablesSupervisor
Account Payables Supervisor runs ‘massadditions create’ programme to transferinvoices to the Fixed Assets module
Auto
6. Post to generalledger
Account PayablesSupervisor
Account Payables Supervisor poststransaction to general ledger
Auto
7. Run ‘prepare massadditions’programme
Fixed AssetsSupervisor
Fixed Assets Supervisor runs ‘prepare massadditions’ programme to identify andreview capital work-in-progress invoices
Auto
START
Process Control Manual for Finance
57Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
8. Update capitalwork-in-progressregister
Fixed AssetsSupervisor
Fixed Assets Supervisor updates capitalwork-in-progress register
Auto
9. Run massadditions report
Fixed AssetsSupervisor
Fixed Assets Supervisor runs mass additionreport and notifies Financial AccountingManager to review and approve
Auto Mass additionreport
10. Review andapprove
FinancialAccountingManager
Financial Accounting Manager reviews andapproves the updated capital work-in-progress register
Auto Approvedmassadditions
11. Post to generalledger
Fixed AssetsSupervisor
Fixed Assets Supervisor posts transaction togeneral ledger
Issues from stores are capitalized onrequisition. Expenses are allocated toproject codes
Auto
12. Issue certificate ofcompletion
Project Manager Project Manager issues certificate ofcompletion to Fixed Assets Supervisor ifproject is complete at reporting ( notifyingDirector Finance and Financial AccountingManager)
Manual Certificate ofcompletion
13. Transfer assets tofixed assetsregister
Fixed AssetsSupervisor
Fixed Assets Supervisor transfers fromcapital work-in-progress to assets based oncertificate of completion
Auto
14. Review andapprove
FinancialAccountingManager
Financial Accounting Manager reviews andapproves transfer of completed project tofixed assets
Auto
CRP
CRP
Process Control Manual for Finance
58Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
Fixed assets (capital work-in-progress) key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner
1. Frequency of errors in capitalising
assets
Zero tolerance Aligned with transfers
to fixed assets
Financial
Accounting
Manager
Fixed Assets Supervisor
2. Number of days to capitalise completed
projects
2 days (on receipts
of certificate of
completion)
Monthly Financial
Accounting
Manager
Fixed Assets Supervisor
3. Number of days to submit reconciled
schedules between capital-work-in
progress register and general ledger
2 days Financial
Accounting
Manager
Fixed Assets Supervisor
Fixed assets (capital work-in-progress) standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Mass additions
report
This report provides details of
additions to capital work in
progress over a period
To provide
management
information on capital
work-in progress.
ERP Monthly Director Finance
END
Process Control Manual for Finance
59Volta River AuthorityCONTROLLED DISCLOSURE
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
2. Capitalised project
report
This report provides details of
capital work-in-progress
capitalised over a period
To provide
management
information on
capitalised assets
ERP Monthly Director Finance
3. Capital work-in-
progress schedule
This report shows opening
balances, additions for the
period, transfers, and closing
balances
To analyse the
movement in project
costs
ERP Monthly Director Finance
Process Control Manual for Finance
60Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets capital work-in-progress process risk and control matrix (RCM)
Key Risks:
1 Transfers from capital work-in-progress may not be complete and accurate
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
tA
cc
ou
nt/
Dis
clo
su
re
Fin
an
cia
lS
tate
me
nt
As
se
rti
on
Co
ntr
ols
/
Po
ints
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
leB
us
ine
ss
Pr
oc
es
sT
oo
lsT
co
de
(s)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y(E
,D,W
,M,Q
,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
1
Fixed Assets -
Capital Work
in Progress
To ensure a
complete and
accurate
record of
capital work-
in-progress
F C, A BS O, C,A
Capital work-in-progress
register is updated with
invoices received. The update
is reviewed and approved by
appropriate management.
Updated capital work-in-
progress register is reviewed
and approved by Financial
Accounting Manager.
I p E N/A
Financial
Accounting
Manager
2
Fixed Assets -
Capital Work
in Progress
To ensure
transfers
from capital
work-in-
progress are
authorisedF V BS O, C,A
Transfer of assets from
capital work-in-progress to
property plant and
equipment is based on the
issuance of a certificate of
completion. Review and
approval of transfer is done
by appropriate management
M P E N/A
Financial
Accounting
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
8.0 FIXED ASSETS PROPERTY PLANT A
Process descriptionOverview
The purpose of the process is to describe activities involved in accounting for
Process Owner
Fixed Assets Supervisor
Process Objectives
To ensure fixed assets are accurately and completely accounted
To ensure complete record keeping to monitor
Process Scope
This process applies to all fixed assets
Timeframe
Aligned to additions to fixed assets
Segregation of duties matrixActivity / Resources
Enter invoice details and classifyassetsReview invoice distribution
Update fixed assets register and runmass additionsRun revaluation
Review and approve revaluationindices, depreciation report andgeneral ledger reconciliation
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
PROPERTY PLANT AND EQUIPMENT
The purpose of the process is to describe activities involved in accounting for fixed assets
accurately and completely accounted for
complete record keeping to monitor existence of fixed assets
assets.
Segregation of duties matrixFixed AssetsSupervisor
AccountPayablesOfficer
AccountPayablesSupervisor
IN
IN
IN
61
ND EQUIPMENT
fixed assets.
AccountPayablesSupervisor
FinancialAccountingManager
RV
RV
AP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets property, plant and equipment
1. Finance
Admin. Assistantreceives and
registers invoicefrom supplier
2. FinanceAdmin. Assistantforwards invoice
to APO forprocessing
3 . APO enters invoicedetails into systemclassifying asset as
capital work inprogress
4a. AP Supervisorreviews invoice
distribution
Ok?
5. AP Supervisorruns mass addition
create programme totransfer invoices to
FA module, then (6)posts transaction to
GL
7. FAS runs ‘preparemass additions’programme to
identify and review
PPE invoices in thesystem
8. FAS updates fixedassets register
9. Fixed AssetsOfficer computes
revaluation indicesand forwards for
review
10. FAM reviewscomputed
revaluation indices
Yes
No
11. FA Officer
updates fixed assetsmodule with
approved revaluationindices
assets property, plant and equipment process flow chart
4b. Notify APO
12. FAS runsrevaluation in fixed
assets module
14. FA Officer selectsdepreciation period
and runsdepreciation
15. FA Officer runs
draft depreciationreport and forwardsto FAM for review
16. FAM reviews andapproves draft
depreciation report
17. FA Officer runs
final depreciationreport
18. FAS posts
transaction to GL
19. FAS reconcilesgeneral ledger to
fixed assets register
20. FAM reviews andapproves
reconciliation
End
13. FAS identifiesassets for retirement
and and initiatesretirement process
62
process flow chart
FAS runsrevaluation in fixed
assets module
FA Officer selectsdepreciation period
depreciation
FA Officer runs
draft depreciationreport and forwardsto FAM for review
FAM reviews andapproves draft
depreciation report
FA Officer runs
final depreciation
FAS posts
transaction to GL
FAS reconcilesgeneral ledger to
fixed assets register
FAM reviews and
reconciliation
A
A
FAS identifiesassets for retirement
and and initiatesretirement process
Process Control Manual for Finance
63Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets property, plant and equipment activity detail
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
For direct acquisitions
1. Receive invoice FinanceAdministrativeAssistant
Finance Administrative Assistantreceives invoice from supplier,registers in excel document log bookand forwards to Account PayablesOfficer. Disbursement Manager andSupervisor are notified.
Manual SupplierInvoice
2. Forward invoice topayables unit
FinanceAdministrativeAssistant
Finance Administrative Assistantforwards invoice to Account PayablesOfficer for processing
Manual
3. Enter invoice detailsand classify asset
Account PayablesOfficer
Account Payables Officer entersinvoice details and classifies asset asproperty, plant and equipment at theinvoice distribution stage
Auto Paymentvoucher
4. Review invoicedistribution
Account PayablesSupervisor
Account Payables Supervisor reviewsinvoice distribution to ensure either anappropriate asset clearing account hasbeen selected (for depreciable assets)or expense account for non-depreciable assets falling below thediminis value
Auto
5. Run ‘mass additionscreate’ programme
Account PayablesSupervisor
Account Payables Supervisor runs‘mass additions create’ programme totransfer invoices to the Fixed Assetsmodule
Auto
6. Post to general ledger Account Payables Account Payables Supervisor posts Auto
START
Process Control Manual for Finance
64Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
Supervisor transaction to general ledger
7. Run ‘prepare massadditions’programme
Fixed AssetsSupervisor
Fixed Assets Supervisor runs ‘preparemass additions’ programme to identifyand review property, plant andequipment invoices
Auto
8. Update fixed assetsregister
Fixed AssetsSupervisor
Fixed Assets Supervisor updates fixedassets register
Auto
Revaluation
9. Compute revaluationindices
Fixed Assets Officer Fixed Assets Officer computesrevaluation indices using compositeindex resulting from the US consumerprice index and exchange rate andforwards for review
10. Review revaluationindices
FinancialAccountingManager
Financial Accounting Manager reviewsrevaluation indices and grantsapproval for update of fixed assetsmodule with computation
Auto
11. Update fixed assetsmodule
Fixed Assets Officer Fixed Assets Officer updates fixedassets module with approvedrevaluation indices
Auto
12. Run revaluation Fixed AssetsSupervisor
Fixed Assets Supervisor runsrevaluation in the fixed assets module
Auto
13. Identify and retireassets
Fixed AssetsSupervisor
Fixed Assets Supervisor identifiesassets for retirement and initiates fixedasset retirement process (refer to fixedassets retirement process)
Auto
Depreciation
CRP
Process Control Manual for Finance
65Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
14. Run depreciation Fixed Assets Officer Fixed Assets Officer selectsdepreciation period and runsdepreciation
Auto
15. Run draftdepreciation report
Fixed Assets Officer Fixed Assets Officer runs draftdepreciation report and forwards toFinancial Accounting Manager forreview
Auto
Draftdepreciationreport
16. Review draftdepreciation report
FinancialAccountingManager
Financial Accounting Manager reviewsdraft depreciation report and givesapproval
Auto
17. Run finaldepreciation report
Fixed Assets Officer Fixed Assets Officer finalisesdepreciation report
Auto Finaldepreciationreport
18. Post to general ledger Fixed AssetsSupervisor
Fixed Assets Supervisor poststransaction
Auto
19. Perform generalledger reconciliation
Fixed AssetsSupervisor
Fixed Assets Supervisor reconcilesgeneral ledger to fixed assets register.
Reconciliation is forwarded toFinancial Accounting Manager forreview and approval
Auto
20. Review and approvereconciliation
FinancialAccountingManager
Financial Accounting Manager reviewsand approves reconciliation.
Auto
END
CRP
Process Control Manual for Finance
66Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets property, plant and equipment key performance measures
Performance Measure Target Frequency Reviewer Reviewee/ process owner
1. Degree of accuracy of computed indices 100% Monthly Financial
Accounting Manager
Fixed Assets Supervisor
2. Timeliness of submission of
reconciliation report
XX days prior to
period close
activities
Monthly Financial
Accounting Manager
Fixed Assets Supervisor
Fixed assets property, plant and equipment standard reports
SN Report Name Brief Description Purpose SourceReport
FrequencyReviewer
1. Mass asset
maintenance
report
This report shows the
number of assets
maintained in mass
update during a period
in a fiscal year
To understand usage of
asset mass updates
ERP Quarterly Financial
Accounting
Manager
2. Reconciliation
report
This report reconciles
general ledger fixed
assets information to the
fixed asset register
To provide general
ledger and fixed asset
register reconciliation
information
ERP Monthly Fixed Assets
Supervisor
3. Depreciation
report
This report tells the year
to-date and accumulated
To provide depreciation
trends
ERP Monthly Fixed Assets
Supervisor
Process Control Manual for Finance
67Volta River AuthorityCONTROLLED DISCLOSURE
SN Report Name Brief Description Purpose SourceReport
FrequencyReviewer
depreciation for a period
4. Summarised asset
register report by
category
This report provides a
summary of financial
and non-financial
information of assets by
category
To update management
with level of investment
in the various categories
of fixed assets
ERP Monthly Fixed Assets
Supervisor
Process Control Manual for Finance
68Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets property, plant and equipment process risk and control matrix (RCM)
Key risks
1 Depreciation calculation may be incorrect resulting in misstatements
2 Revaluation indices may be incorrect resulting in misstatements
3 Completed capital work in progress may not be captured as PPE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
eC
ate
go
ry
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e(C
,A,V
,R)
Fin
an
cia
lS
tate
me
nt
Ac
co
un
t/D
isc
los
ur
e
Fin
an
cia
lS
tate
me
nt
As
se
rti
on
Co
ntr
ols
/P
oin
tso
fF
oc
us
Ap
pli
ca
ble
Or
ac
leB
us
ine
ss
Pr
oc
es
sT
oo
lsT
co
de
(s)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y(E
,D,W
,M,Q
,A
)
Po
lic
y/
Pr
oc
ed
ur
eR
efe
re
nc
e
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
1
Fixed Assets -
Property Plant
and
Equipment
To ensure invoice
entry and asset
classifications are
correct
F, O C, A, V IS/BS C, A, E, O
Invoice details and asset
classification as property plant
and equipment are manually
entered into the system and
reviewed to ensure complete
capital work-in-progress register
is updated with invoices received.
The update is reviewed and
approved by appropriate
management.
Updated capital work-in-progress
register is reviewed and approved
by Financial Accounting Manager.
I p E N/A
Financial
Accounting
Manager
2
Fixed Assets -
Property Plant
and
Equipment
To ensure
completed capital
work in progress
are captured into
PPE
F V BSC, A, R&O,
E, CO
Transfer of assets from capital
work-in-progress to property
plant and equipment is triggered
by the issuance of a certificate of
completion. Review and approval
of transfer is done by appropriate
management
M P E N/A
Financial
Accounting
Manager
Process Control Manual for Finance
69Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
eC
ate
go
ry
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
lS
tate
me
nt
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
lS
tate
me
nt
As
se
rti
on
Co
ntr
ols
/P
oin
tso
f
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
es
sP
ro
ce
ss
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y(E
,D,W
,M,Q
,A
)
Po
lic
y/
Pr
oc
ed
ur
eR
efe
re
nc
e
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
3
Fixed Assets -
Property Plant
and
Equipment
To ensure the
depreciation
calculation is
correct.
F A, C BS/IS C, A, E
A draft depreciation report is
generated in the system after running
depreciation and forwarded to
Financial Accounting Manager for
review. Financial Accounting Manager
checks for the accuracy of depreciation
computation and approves the report.
Fixed and approval. Fixed Assets
Supervisor posts transaction to general
ledger and reconciles general ledger to
fixed assets register.
R, Mn D M N/A
Financial
Accounting
Manager
4
Fixed Assets -
Property Plant
and
Equipment
To ensure the
revaluation
indices are
correct
F A, C BS/IS C, A, E
Revaluation indices are computed
using composite index resulting from
the US consumer price index and
exchange rate and forwarded for
review and approval. Financial
Accounting Manager reviews
revaluation indices and grants
approval for the update of fixed assets
module with computation.
M, Mn D M N/A
Financial
Accounting
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
9.0 FIXED ASSETS (DONATED)
Process description
Overview
The purpose of the process is to describe activities involved in accounting for donated assets
Process Owner
Fixed Assets Supervisor
Process Objectives
To ensure that donated assets are accurately and completely ac
To ensure complete record keeping to monitor existence of donated assets
Process Scope
This process applies to the receipt of donated assets
Timeframe
N/A
Segregation of duties matrixActivity / Resources
Set up donated asset
Review set up and post to general ledger
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
(DONATED)
The purpose of the process is to describe activities involved in accounting for donated assets
To ensure that donated assets are accurately and completely accounted for
To ensure complete record keeping to monitor existence of donated assets
This process applies to the receipt of donated assets
Segregation of duties matrixFixed AssetsSupervisor
Financial AManager
IN
Review set up and post to general ledger
70
The purpose of the process is to describe activities involved in accounting for donated assets
counted for
To ensure complete record keeping to monitor existence of donated assets
Financial AccountingManager
RV
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets (donated) process flow chartFixed assets (donated) process flow chart
1. DCE,F notifiesfinance team of
donated asset
2. FAS sets updonated asset in
fixed asset register
3. FAM reviews setup and (4) posts to
GL
End
71
Process Control Manual for Finance
72Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets (donated) activity detail
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Notify financedepartment
Deputy ChiefExecutive, Finance
Deputy Chief Executive, Financenotifies Director Finance of donatedasset copying Financial AccountingManager and Fixed Assets Supervisor
Auto
2. Set up donated assetin fixed assetsregister
Fixed AssetsSupervisor
Fixed Assets Supervisor sets updonated asset in fixed assets registernotifying Financial AccountingManager
Manual
3. Review set-up Financial AccountingManager
Financial Accounting Managerreviews set-up to ensure asset hasbeen properly classified
Auto
4. Post to generalledger
Financial AccountingManager
Financial Accounting Manager poststransaction to general ledger
Auto
START
END
CRP
Process Control Manual for Finance
73Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets donated process risk and control matrix (RCM)Key Risks:
1 Improper classification of donated assetsN
o.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e
(C,A
,V,R
)
Fin
an
cia
lS
tate
me
nt
Ac
co
un
t/D
isc
losu
re
Fin
an
cia
lS
tate
me
nt
Asse
rti
on
Co
ntr
ols
/P
oin
tso
f
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
1Fixed Assets -
Donated
To ensure fixed
assets register is
updated with
donated fixed
assets
F C, A IS O, E, C, A
Donated fixed assets are
setup in fixed assets
register. Financial
accounting manager
reviews set up to ensure
donated fixed assets has
been appropriately
classified.
I P E N/A
Financial
Accounting
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
10.0 FIXED ASSETS (TAGGING AND VERIFICATION)
Process descriptionOverview
The purpose process is to describe activities involved in
Process Owner
Fixed Assets Supervisor
Process Objectives
To ensure a standard process for a physical verification of fixed assets
To ensure all assets appearing in the fixed asset register are physically present and are under the
custody of the company
To ensure appropriate accounting for any discrepancies arising from physical verification audit.
Process Scope
The process covers all the activities around phy
Timeframe
Aligned to fixed asset verification cycle
Segregation of duties matrix
Activity / Resources
Generate physical verification list and tags
Issue letter of authorisation
Verify assets
Reconcile physical quantity with fixed assets register
Review physical verification reportApprove physical verification reportApprove adjustmentPass adjustment
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
FIXED ASSETS (TAGGING AND VERIFICATION)
The purpose process is to describe activities involved in verifying fixed assets.
To ensure a standard process for a physical verification of fixed assets
ring in the fixed asset register are physically present and are under the
To ensure appropriate accounting for any discrepancies arising from physical verification audit.
The process covers all the activities around physical verification of fixed assets
fixed asset verification cycle
Segregation of duties matrix
VerifierFixedAssetsSupervisor
Generate physical verification list and tags IN
IN
Reconcile physical quantity with fixed assets register
IN
PR
74
FIXED ASSETS (TAGGING AND VERIFICATION)
ring in the fixed asset register are physically present and are under the
To ensure appropriate accounting for any discrepancies arising from physical verification audit.
Supervisor
FixedAssetsOfficer
DirectorFinance
AP
IN
APAP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets (tagging and verification) process flow chart
4. Fixed Assets
Officer generatesphysical verificationlist and verification
tags in system
5. Director Financeissues letter of
authorisation to
Verifiers
6. Verifiersverify and
(7) tag fixedassets
1. Director Finance
draws fixed assetsverification plan
2. Finance Managerdevelops fixed assets
verificationinstructions and(
organises orientation
9. Fixed AssetsOfficer reconciles
physical assets with
fixed assets register
10. Fixed AssetsOfficer investigates
variances
11. Fixed Assets
Supervisor reviewsphysical verificationreport and forwards
for approval
8. Verifiers
obtaincertificates forassets gone for
repairs
12. Director Financeapproves physicalverification report
Fixed assets (tagging and verification) process flow chart
15. DF approves
adjustment in thesystem
Fixed Assets
Officer generatesphysical verificationlist and verification
Director Financeissues letter of
authorisation to
13 b. Adjustmentc’ttee recommends
items for adjustment
End
14. Fixed AssetsSupervisor passes
physical verificationadjustments
Director Finance
draws fixed assetsverification plan
Finance Managerdevelops fixed assets
(3)organises orientation
Fixed AssetsOfficer reconciles
physical assets with
fixed assets register
Fixed AssetsOfficer investigates
Fixed Assets
Supervisor reviewsphysical verificationreport and forwards
13a. DirectorFinance
constitutescommittee for
approval of
adjustments
A
assets gone for
Director Financeapproves physicalverification report
A
75
items for adjustment
physical verification
A
A
Process Control Manual for Finance
76Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets (tagging and verification) activity detail
ActID
Process Flow Responsibility Tasks InvolvedTransaction
Type(Manual/Auto)
Output
ControlRef.
Point(CRP)
1. Draw fixed assetsverification plan
Director Finance Director Finance develops an annualfixed assets verification planconsisting of asset locations,resources, budget, etc.
Manual Fixed assetsverification plan
2. Develop fixedassets verificationinstructions
FinancialAccountingManager
Financial Accounting Managerdevelops fixed assets verificationinstructions, guidelines andrecording templates
Manual Fixed assetsverificationinstructions
3. Organiseorientation
FinancialAccountingManager
Financial Accounting Managerorganises orientation course forVerifiers to set standards andexpectations for the fixed assetsverification
Manual
4. Generate physicalverification listand verificationtags
Fixed AssetsOfficer
Fixed Assets Officer generates anupdated fixed assets register fromsystem and prints verification tags
Manual Physicalverification list
5. Issue letter of
authorisation
Director Finance Director Finance issues letter of
authorisation to Verifiers,
authorising them to visit locations
and inspect assets.
Manual Signed letter ofauthorisation
6. Verify assets Verifiers Verifiers obtain list of all assets withtheir details and verify assets againstlist
Manual Completedverificationtemplates
START
Process Control Manual for Finance
77Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransaction
Type(Manual/Auto)
Output
ControlRef.
Point(CRP)
7. Tag assets Verifiers Verifiers tag each asset verified foridentification purposes. Locationsare also tagged to mark theverification of assets at a location.
Manual Tags
8. Obtain certificates
for assets gone for
repairs
Verifiers Verifiers obtain certificates fromthird party companies to confirmassets have been sent for repairswhere differences arise due to assetsor asset parts sent for repairs
Manual Certificate forassets gone forrepairs
9. Reconcile physical
assets with fixed
assets register
Fixed AssetsOfficer
Fixed Assets Officer consolidatesreports of all locations andreconciles physical quantities tofixed asset register
Manual Physicalverificationreport
10. Investigatevariances
Fixed AssetsOfficer
Fixed Assets Officer investigatesvariances and submits physicalverification report (includingdamaged, obsolete items, etc.) toFixed Assets Supervisor by email forreview
Manual
11. Review physicalverification report
Fixed AssetsSupervisor
Fixed Assets Supervisor reviewsphysical verification report andforwards to Director Finance forapproval
Manual
12. Approve physicalverification report
Director Finance Director Finance approves physicalverification report
Manual Approvedphysicalverificationreport
CRP
Process Control Manual for Finance
78Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransaction
Type(Manual/Auto)
Output
ControlRef.
Point(CRP)
13. Engagestakeholders toagree adjustments
Director Finance Director Finance engages relevantinternal stakeholders to agreeadjustments and notifies FixedAssets Supervisor
Manual Adjustmentreport/approval
14. Pass Fixed Assetsadjustments
Fixed AssetsSupervisor
Fixed Assets Supervisor passesphysical verification adjustments
15. Approveadjustment
Director Finance Director Finance approvesadjustment in the system
Manual
Fixed assets (tagging and verification) key performance measures
Performance Measure Target Frequency ReviewerReviewee/ process
owner
1. Frequency of physical verification
exercise
Per Policy Per Policy Financial
Accounting Manager
Fixed Assets Supervisor
Fixed assets (tagging and verification) standard reports
SN Report Name Brief Description Purpose SourceReport
FrequencyReviewer
1. Reconciliation report This report shows the
differences between
actual and system asset
To assure the accuracy
of asset quantities as
Physical verification
and ERP
Yearly Fixed Assets
Supervisor
END
CRP
Process Control Manual for Finance
79Volta River AuthorityCONTROLLED DISCLOSURE
SN Report Name Brief Description Purpose SourceReport
FrequencyReviewer
quantities captured by the system
2. Physical verification
report
This report highlights
the results of the
physical verification
including:
Total book-to-
physical adjustment
% by asset type
Book-to-physical
adjustment % by
asset type
% of obsolete assets
against total assets
% of retired assets
that have been
accounted for
To provide details of
asset differences and
condition such as
obsolescence, damage,
etc
Physical verification
and ERP
Yearly Fixed Assets
Supervisor
Process Control Manual for Finance
80Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets (tagging and verification) process risk and control matrix (RCM)Key Risks:
1 Fixed assets may be counted more than once
2 Fixes assets are completely countedN
o.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
eC
ate
go
ry
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e(C
,A,V
,R)
Fin
an
cia
lS
tate
me
nt
Ac
co
un
t/D
isc
los
ur
e
Fin
an
cia
lS
tate
me
nt
As
se
rti
on
Co
ntr
ols
/P
oin
tso
fF
oc
us
Ap
pli
ca
ble
Or
ac
leB
us
ine
ss
Pr
oc
es
sT
oo
lsT
co
de
(s)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y(E
,D,W
,M,Q
,A
)
Po
lic
y/
Pr
oc
ed
ur
eR
efe
re
nc
e
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
1
Fixed Assets -
Verification
and Tagging
To ensure a
complete and
accurate record of
fixed assets at all
locations
F C, A BS C, E
A physical verification check list is
generated from the system and
fixed assets are verified based on
the systems list. Verifiers obtain
certificates from third party
companies to confirm the
existence of assets that have gone
for repairs. Physical assets are
reconciled with fixed assets
register to ensure completeness
S, M p E N/A
Financial
Accounting
Manager
2
Fixed Assets -
Verification
and Tagging
To ensure
adjustments are
appropriately
approved
F C, A BS C, E
Adjustments to fixed assets
register are recommended by an
independent committee and
approved by Director FinanceM, S P E N/A Director Finance
3
Fixed Assets -
Verification
and Tagging
To ensure
adequate
segregation of
duties through the
verification
process
F C, A N/A N/A
There is adequate segregation of
duties between verifiers and
approvers.M P E N/A
Financial
Accounting
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
11.0FIXED ASSETS - RETIREMENT AND
Process descriptionOverview
The purpose of the process is to describe the activities involved in retiring and disposing fixed assets.
Process Owner
Disposal Schedule Officer
Process Objectives
To ensure retirement and disposal of assets are appropr
policy
To ensure disposed assets are accurately and completely accounted for
To ensure fixed assets register is updated with retired and disposed assets
Process Scope
This process covers the retirement, disposal
Timeframe
N/A
Segregation of duties matrixActivity /Resources
UserDepartment
Identify assets fordisposal
IN
Inspect assets andprepare disposalreportApprove disposalreportAllocate asset to VRAstaffChange ownership ofassetUpdate fixed assetsregister
Legend
Input
Processing
IN
PR
CONTROLLED DISCLOSURE
RETIREMENT AND DISPOSAL
The purpose of the process is to describe the activities involved in retiring and disposing fixed assets.
To ensure retirement and disposal of assets are appropriately authorised in line with Authority’s
To ensure disposed assets are accurately and completely accounted for
To ensure fixed assets register is updated with retired and disposed assets
This process covers the retirement, disposal and write-off of assets
Segregation of duties matrix
DepartmentDirectorGeneralServices
ChiefExecutive
BoardofSurvey
IN
AP
PR
81
OSAL
The purpose of the process is to describe the activities involved in retiring and disposing fixed assets.
iately authorised in line with Authority’s
To ensure disposed assets are accurately and completely accounted for
To ensure fixed assets register is updated with retired and disposed assets
FixedAssetsSupervisor
VehicleAllocationsCommittee
IN
PR
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Review
Approval
Informed
RV
AP
IF
CONTROLLED DISCLOSURE
82
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets disposal process
1. User
Departmentcompile andsubmit list of
Declared assetsfor disposal to
DP
2. DP notifiesDisposals
ScheduleOfficer (DSO)
3. DSO with Managerand Director of user
department
nominate staff toform Board of Survey
4. DSO draftsnomination
letters with terms
of reference andforwards for
review
5. DisposalsManager
reviews lettersand forwards toDP for signing
6. DP signs and
forwardsnomination
letters with list ofdeclared assets to
CE, requesting
for approval
7. CE approvesboard
composition
authorisingissuance ofnomination
letters to staff
8. Board of Surveyexecute terms of
reference andmake
recommendationsfor disposal
A
10. CE approvesdisposal report,
authorising
implementation ofdisposal
recommendations
9. Board of
Survey preparedisposal reportand forward to
CE forapproval
11a. DPnotifiesVehicle
AllocationsCommittee
11b. VehicleAllocationsCommittee
allocates vehicle
to staff perVRA’s policy
and guidelines
CONTROLLED DISCLOSURE
assets disposal process flow chart
Disposal vehicle>3 tonnes/
specialised?
allocates vehicle
and guidelines
12. DSOcontacts
professionalvaluers to
value vehicles
13. CO populatesonlinetender
document and sends
electronically toDisposal Manager for
review
17. PR Managersells tender
documents tointerested biddersand proposes anEvaluation C’ttee
to DP
16. PR Managerplaces advert inmedia and VRA
website
14. DisposalManager
reviews tenderdocuments andseek approval
from DP to
place advert
15. DP approvestender
document, signsand notifies PR
Manager to
place advert
A
18. DPapproves
evaluation
teamcomposition
A
19. DSO withEvaluation
Team evaluatequotations
from tenderers
20. DSO
prepares offerletter and
forward to DPfor signing
21 . DP signs offerletter and DSO
issues offer letter
to highest bidderadvising thatpayment be
Sale to scrapdealers?
22. DSO
contacts VRAregistered scrapdealers, invitingthem to inspect
scrap assets
23 . DSOcoordinates
inspects byscrap
dealers
25. CashiernotifiesDirectorGeneral
Servicesof payment
24. Cahierreceives
payment andreceipt process
is initiated
26. DGS effectschange of asset
ownership in systemnotifying FAM and
FAS
27. FAS updates fixedassets register with
disposals
28. FAM reviewsupdates and posts to
general ledgernotifying DSO
29. DSOreleases asset
to winning
bidder
Yes Yes
No
End
83
CashiernotifiesDirectorGeneral
Services (DGS)of payment
DGS effectschange of asset
ownership in systemnotifying FAM and
FAS
FAS updates fixedassets register with
disposals
FAM reviewsupdates and posts to
general ledgernotifying DSO
DSOreleases asset
to winning
/ staff
End
Process Control Manual for Finance
84Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets retirement and disposal activity detail
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Submit approvedlist
User Department User Department compiles and submits
approved list of obsolete/unserviceable/
surplus assets to Director Procurement,
declaring listed assets for disposal
Manual Approved list
of obsolete
/unserviceable
/surplus assets
2. Notify DisposalsSchedule Officer
Director
Procurement
Director Procurement notifies Disposals
Schedule Officer
Manual
3. Nominate Board of
Survey members
Disposals
Schedule Officer
Disposals Schedule Officer in consultation
with Manager and Director of user
department, nominate staff to form Board of
Survey
Manual
4. Draft nomination
letters and terms of
reference
Disposals
Schedule Officer
Disposals Schedule Officer drafts letters to
nominated staff together with terms of
reference and forward for review
Manual Nomination
Letters
Terms of
Reference
5. Review nomination
letters
Disposals
Manager
Disposals Manager reviews nomination
letters and terms of reference then forward to
Director Procurement for signing
Manual
6. Sign nomination
letters
Director
Procurement
Director Procurement signs nomination
letters and forwards together with list of
declared assets request to Chief Executive for
approval
Manual Signed
nomination
letters
START
Process Control Manual for Finance
85Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
7. Approve boardconstitution
Chief Executive Chief Executive approves proposed board
composition, authorising issuance of
nomination letters to nominated staff
Manual Approved
board
composition
8. Inspect assets Board of Survey Board of Survey inspects and verifies
existence of assets, reviews circumstances
requiring disposal, assesses disposal value of
assets and makes recommendations for
disposal
Manual
9. Prepare disposalreport
Board of Survey Board of Survey prepares a disposal report in
accordance with the terms of reference and
forwards to Chief Executive for approval
Manual Disposal
report
10. Approve disposalreport
Chief Executive Chief Executive approves disposal report and
forwards a copy to Director Procurement to
implement Board of Survey
recommendations.
Copies of disposal reports are forwarded to
Director Finance and Fixed Assets
Supervisor
Manual Approved
disposal report
Recommendations for vehicles below three tones
11. Notify VehicleAllocationsCommittee
Director
Procurement
Director Procurement notifies Vehicle
Allocations Committee with the list of
vehicles below three tones to be allocated to
eligible staff in accordance with the
Authority’s approved policy and guidelines
Manual
CRP
CRP
Process Control Manual for Finance
86Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
for disposal to staff
Recommendations for vehicles above three tones/ specialised vehicles/ motor cycles and other fixed assets
12. Contactprofessionalvaluers
Disposal
Schedule Officer
Disposal Schedule Officer contacts
professional valuers to determine reserve
price of vehicles (i.e. vehicles above three
tones and specialised vehicles) notifying
Disposal Manager and Director Procurement
Other fixed assets are not valued.
Manual Valuation
letter
13. Populate on-lineTender Document
Disposal
Schedule Officer
Disposal Schedule Officer populates online
Tender Document, sets evaluation criteria,
and sends electronically to the Disposal
Manager for review
Auto Draft request
for quotations
14. Review TenderDocument
Disposal Manager Disposal Manager reviews tender documents
and seeks approval from Director
Procurement to place advert
Manual
15. Approve TenderDocument
Director
Procurement
Director Procurement approve Tender
Document, signs electronically and notifies
Public Relations Manager to place advert in
the media
Manual Approved
Request for
Quotations
16. Place advert/ invitetenders
Public Relations
Manager
Public Relations Manager places advert in
media and VRA website
Manual Invitation to
tender
Process Control Manual for Finance
87Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
17. Sell TenderDocuments
Disposals
Schedule Officer
Disposals Schedule Officer sells tender
documents and proposes an Evaluation Team
to Director Procurement notifying Disposal
Manager
Manual
18. ApproveEvaluation Teamcomposition
Director
Procurement
Director Procurement approves evaluation
team composition
Manual
19. Receive andevaluate quotations
Disposal
Schedule Officer
Disposal Schedule Officer receives and with
Evaluation Team, evaluates quotations from
tenderers
Manual Quotations
20. Prepare OfferLetter
Disposal
Schedule Officer
Disposal Schedule Officer prepares Offer
Letter using standard template, forwards to
Director Procurement for signing
Manual Offer Letter
21. Issue Offer letter Disposal
Schedule Officer
Disposal Schedule Officer issues Offer Letter
to highest bidder (after Director Procurement
has signed) advising that payment be made
Manual
Sale of items to scrap dealers
22. Contact VRAregistered scrapdealers
Disposal
Schedule Officer
Disposal Schedule Officer contacts all VRA
registered scrap dealers, inviting them to
inspect scrap assets
Manual
23. Coordinateinspection
Disposal
Schedule Officer
Disposal Schedule Officer with location
representative coordinate inspection by scrap
dealers
Where hazardous items are involved an
Manual
Process Control Manual for Finance
88Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
Environmental Protection Agency (EPA)
permit is obtained
17. Sell TenderDocuments
Disposals
Schedule Officer
Disposals Schedule Officer sells tender
documents to interested VRA registered scrap
dealers after inspection and proposes an
Evaluation Team to Director Procurement
Manual
18. ApproveEvaluation Teamcomposition
Director
Procurement
Director Procurement approves Evaluation
Team composition
Manual
19. Receive andevaluate quotations
Disposal
Schedule Officer
Disposal Schedule Officer receives and
evaluates quotations from tenderers
Manual
20. Prepare OfferLetter
Disposal
Schedule Officer
Disposal Schedule Officer prepares Offer
Letter using standard template, forwards to
Director Procurement for signing
Manual
21. Issue Offer letter Disposal
Schedule Officer
Disposal Schedule Officer issues Offer Letter
to highest bidder (after Director Procurement
has signed), advising that payment be made
Manual
Payment and update of fixed assets register
24. Receive payment Cashier Cashier receives payment from highest bidder
(refer to receipt process)
Manual
25. Notify Director
General Services
Cashier Cashier notifies Director General Services
Department by email of payment to effect
Manual
Process Control Manual for Finance
89Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
Department change of ownership
26. Change ownershipof asset
Director General
Services
Department
Director General Services Department effects
change of asset ownership in system notifying
Financial Accounting Manager and Fixed
Assets Supervisor by email
Auto
27. Update fixed assetsregister
Fixed Assets
Supervisor
Fixed Assets Supervisor on receipt of
approved disposal report and notification of
change of asset ownership from Director
General Services Department updates fixed
assets register with disposals.
Disposal Schedule officer is notified to release
asset to winning bidder
Auto
28. Review and posttransaction togeneral ledger
Financial
Accounting
Manager
Financial Accounting Manager reviews
update of fixed assets register and posts
transaction to general ledger
Auto
29. Release asset towinning bidders
Disposal
Schedule Officer
Disposal Schedule Officer releases asset to
winning bidder after receiving notification
from Fixed Assets Supervisor
Manual
Disposal by destruction
30. Organisedestruction
Disposal
Schedule Officer
Disposal Schedule Officer invites Finance
Representative (for standard items), User,
Planning and Systems Monitoring
Department (Fire Unit), Internal Audit, EPA
and other agencies (where appropriate) for
Manual
Process Control Manual for Finance
90Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
destruction of items
Disposal by donation
31. Organise donationceremony
Disposal
Schedule Officer
Disposal Schedule Officer notifies Public
Relations unit, Director Procurement, and
receiving institution of pending donation
Public Procurement Act, 2003, (Act 663)
requires that donations be made to public
institutions only
Manual
Fixed assets retirement and disposal key performance measures
Performance Measure Target Frequency Reviewer Reviewee/ process owner
1.Asset declaration to nomination cycle Per
Occurrence
Schedule Manager Disposals Schedule Officer
2. Board of Survey performance against
Terms of Reference
Per Terms of
Reference
Per
Occurrence
Deputy Chief
Executive, Finance
Board of Survey, Chairman
END
Process Control Manual for Finance
91Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets retirement and disposal standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Disposal report This provides a list of
assets disposed,
beneficiary and nature
of disposal.
To provide
management
information on assets
disposed
ERP/ Board of
Survey/ Allocations
Committee
Aligned to
asset disposal
Deputy Chief
Executive, Finance /
Director Finance
2. Inspection report This provides a
description of the
condition of assets
identified for disposal
To serve as a basis for
determining sale value
of assets identified for
disposal
Board of Survey Aligned to
asset disposal
Deputy Chief
Executive, Finance /
Director Finance
3. Gains/ Losses on
disposal report
This provides
information on gains
and losses made on
disposal over a period.
To provide
management
information and gains/
losses from disposal of
assets.
ERP Aligned to
asset disposal
Deputy Chief
Executive, Finance /
Director Finance
Process Control Manual for Finance
92Volta River AuthorityCONTROLLED DISCLOSURE
Fixed assets disposal process risk and control matrix (RCM)Key Risks:
1 Unauthorised disposal of assets
2 Noncompliance to the Authority's policy on disposal
3 Ownership of disposed assets may continue to be in the Authority's name
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jecti
ve
Co
ntr
ol
Ob
jecti
ve
Ca
teg
ory
(C,F
,O)
Co
ntr
ol
Ob
jecti
ve
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Acco
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/
Po
ints
of
Fo
cu
s
Ap
pli
ca
ble
Ora
cle
Bu
sin
ess
Pro
ce
ss
To
ols
Tco
de
(s)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pro
ach
(P,D
)
Fre
qu
en
cy
(E,D
,W,M
,Q,A
)
Po
licy
/
Pro
ce
du
re
Re
fere
nce
Co
ntr
ol
Ob
jecti
ve
Ow
ne
r
1
Fixed
Assets
Disposal
To ensure
asset disposals
are approved
at the correct
level
F V, R BS O, E
Director of user
department approves a list
of assets disposals.
Declared list of disposal
assets are forwarded to
Director Procurement who
checks for approval.
M, MN P E
Fixes assets
disposal
policy
Director
Procurement
2
Fixed
Assets
Disposal
To ensure
adherence to
the Authority's
policy on
disposal
O V, R N/A N/A
A Board of survey is
constituted to inspect
disposal assets and make
recommendations for
disposal.
A vehicle allocations
committee is responsible
for allocating vehicles to
staff per the Authority's
policy on vehicle allocation
to staff. Staff may be
considered after 15 years of
service with the Authority
Mn P E
Fixes assets
disposal
policy
Director
Procurement
Process Control Manual for Finance
93Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
lS
tate
me
nt
Ac
co
un
t/D
isc
losu
re
Fin
an
cia
lS
tate
me
nt
Asse
rti
on
Co
ntr
ols
/P
oin
tso
f
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
3
Fixed
Assets
Disposal
To ensure buyers of
disposed assets
meet requirements
per the Authority's
policy on disposals
O V N/A N/AA due diligence is
performed on all registered
scrap dealers per the
Authority's policy
Mn P E
VRA policy on
vendor
registration
Financial
Accounting
Manager
4
Fixed
Assets
Disposal
To ensure system is
updated with
disposals and
ownership of asset
is transferred from
the Authority to
buyer
F A, V BS O, A,Co, E
Director General Services
effects change of asset
ownership after disposal.
Fixed Asset Supervisor
updates fixed assets
register with disposals.
Update of fixed assets
register is reviewed by the
Financial Accounting
Manager who posts
transaction to the general
ledger
R, Mn P EFixes assets
disposal policy
Financial
Accounting
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
LOAN PROCESSES
12.0 LONG-TERM L
Process descriptionOverview
The purpose of the process is to descri
Process Owner
Project Finance Manager
Process Objectives
To ensure adequate funds are
To ensure commitment to borrowing
To ensure optimum terms of borrowing
To ensure compliance with loan agreement
Process Scope
This process applies to all borrowing related to projec
Timeframe
N/A
Segregation of duties matrixActivity / Resources
Evaluate term sheetsReview and approve evaluation report
Constitute negotiations teamReview and finalise loan agreementApprove and sign loan agreement
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
TERM LOAN ADMINISTRATION
describe the activities involved in administering long
To ensure adequate funds are timely secured for budgeted projects
borrowing by the authority is appropriately reviewed and approved
To ensure optimum terms of borrowing
To ensure compliance with loan agreement
This process applies to all borrowing related to projects
Segregation of duties matrixDirectorFinance
Deputy ChiefExecutive, Finance
RVReview and approve evaluation report
RV
RV
94
long-term loans.
by the authority is appropriately reviewed and approved
Board ofDirectors
ChiefExecutive
RVAP
IN
AP AP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Long term loan administration1. Director Eng.
receives approvedbudget and (2)notifies projectfinance unit to
initiate sourcing forfunds
GoG on-lent loans
3. CE receivesdraft loan
agreement fromMOFEP/MOE
and forwards toDCEs
4. DCE,Fnotifies DF, DL,
DE and PFMforwarding loan
agreement fortheir review
5. DF organisesreview meetingwith DCE,F, DE,
DL, PFM
6. DCE ,F leads teamto finalise loan
agreement,forwarding
recommendations toCE
7. CE forwards
reviewed loanagreement with
comments toMOFEP/ MOE
8. MOEFP/ MOEreps finalise, signand forward loanagreement to CE
9. CE signs
loanagreementin presence
of DL
10. CE forwards anoriginal copy of
signed loanagreement to
MOFEP
Set up loan account
21DCE
forwards a copyof signed loan
agreement toDF
22aLoan Officer
through PFM toset up account
22b. Loan officer sets
up account intreasury module
23
compliance letterand forwards toCE for signing
24compliance letterand forwards to
register for
A
loan administration process flow chartBilateral loan agreements 11. DF identifies
funding gap in
approvedcapital budget
12. DF directs PFMto prepare and
submit proposalsto prospective
lending agencies
13. DF receivesterm sheets from
prospectivelending agencies
and constitutesand evaluation
team
14. DF withevaluation team
evaluate term
sheets, makerecommendations, and forward to
DCE,F
15. DCE,F reviewsevaluation report
and forward toCE for furthersubmission to
BoD
16a. BoD reviewsevaluation report
and passes aresolution
Approve?
16b. Appropriateauthorities signand Board Sec.
affixes corporateseal
16d. Board
Sec. formallynotifies CE of
resolutioncopying DF
and PFM
17. CEconstitutes
negotiationsteam
18. Negotiations
team invites repfrom lending
agency fornegotiations
19. Negotiations team
organises signingceremony and CE and
rep from lending agencysign loan agreement
Set up loan account
. CE notifiesDCE, F and
forwards a copyof signed loan
agreement toDF, DL, PFM
a. DF notifiesLoan Officer
through PFM toset up account
Loan officer sets
up account intreasury module
23. PF unitprepare
compliance letterand forwards toCE for signing
24 . CE signscompliance letterand forwards to
register for
dispatch
Yes
End
16
communicatesissues to CE
copying DCENo
A
20. DirectorProcurement
initiates
procurement processfor goods, works or
services
Refer to PCMProcurementSection XXX
95
16c. BoD
communicatesissues to CE
copying DCE,Fand DF
Refer to PCMProcurement,Section XXX
Process Control Manual for Finance
96Volta River AuthorityCONTROLLED DISCLOSURE
Long term loan administration activity detail
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Receive approvedbudget
Director
Engineering
Director Engineering receives approved
budgetary requirement from Director
Planning Business Development and
Sales and notifies Director Finance to
initiate sourcing for funds
Manual Approved
budgetary
requirement
2. Notify Project Finance Director Finance Director Finance instructs Project
Finance to initiate sourcing for funds
Manual
Government of Ghana on-lent loans
3. Receive draft loanagreement fromMinistry of Finance andEconomic Planning /Ministry of Energy
Chief Executive Chief Executive receives draft loan
agreement from Ministry of Finance
and Economic Planning / Ministry of
Energy and forwards to relevant Deputy
Chief Executives and Deputy Chief
Executive, Finance and Director
Finance
Manual
4. Notify Director Finance Deputy Chief
Executive Finance
Deputy Chief Executive, Finance
forwards draft loan agreement to
Director Finance, Director Engineering,
Director Legal and Project Finance
Manager for their review
Manual
5. Organise a reviewmeeting
Director Finance Director Finance sends out review
meeting invitations to Deputy Chief
Auto
START
Process Control Manual for Finance
97Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
Executive, Finance, Director
Engineering, Director Legal and Project
Finance Manager
6. Review and finaliseloan agreement
Deputy Chief
Executive,
Finance
Deputy Chief Executive, Finance leads
review team to finalise loan agreement
and forwards recommendations to
Chief Executive
Manual Evaluation
report
(minutes of
meeting)
7. Forward reviewed loanagreement to Ministryof Finance andEconomic Planning /Ministry of Energy
Chief Executive Chief Executive forward reviewed loan
agreement (with comments) to Ministry
of Finance and Economic Planning /
Ministry of Energy
Manual
8. Finalise and sign loanagreement
Ministry of
Finance and
Economic
Planning /
Ministry of
Energy
Ministry of Finance/ Ministry of Energy
then finalises, signs and forwards loan
agreement to Chief Executive
Manual Final loan
agreement
9. Sign loan agreement Chief Executive Chief Executive signs loan agreement in
the presence of Director Legal if loan
agreement is acceptable
Manual Signed loan
agreement
10. Forward copy toMinistry
Chief Executive Chief Executive forwards an original of
loan agreement to Ministry of Finance
and Economic Planning
Manual
Bilateral loan agreements
CRP
Process Control Manual for Finance
98Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
11. Identify funding gap inapproved corporatecapital budget
Director Finance Director Finance receives approved
corporate capital budget from Director
Planning and Business Development
and identifies funding gap
Manual Approved
corporate
capital
budget
12. Submit proposals Director Finance Director Finance directs Project
Finance Manager to prepare and
submit proposals to prospective lending
agencies
Manual Proposal for
funding
13. Receive term sheets Director Finance Director Finance receives term sheets
from prospective lending agencies and
constitutes an evaluation team
Manual Term sheets
14. Evaluate term sheets Director Finance Director Finance chairs Evaluation
Team (including representatives from
Engineering, Legal, Planning, etc.) to
evaluate term sheets, make
recommendations and forwards term
sheet recommendations to Deputy
Chief Executive, Finance
Manual Minutes of
meeting
Evaluation
report
15. Review evaluationreport
Deputy Chief
Executive,
Finance
Deputy Chief Executive, Finance
reviews evaluation report and forwards
to Chief Executive for approval and
submission to the Board
Manual
16. Review evaluationreport
Board of Directors Board of Directors review evaluation
report and passes a resolution.
If Board approves, appropriate
Manual Board
minutes CRP
Process Control Manual for Finance
99Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
authorities sign and Board Secretary
affixes corporate seal authorising Chief
Executive to enter into negotiations
with prospective lender
Approved
term sheet
17. Constitute anegotiation team
Chief Executive Chief Executive constitutes a
negotiation team
Manual
18. Organise negotiationswith lending agency
Negotiation Team
Leader
Negotiation Team Leader sends an
invitation to lending agency and goes
into negotiations
Manual Loan
agreement
19. Organise signingceremony
Negotiation Team
Leader
Negotiation Team Leader invites a
representative of lending agency and
Chief Executive to sign final loan
agreement.
Manual Signed loan
agreement
20. Procure for goods,works or services
Director
Procurement
Director Procurement initiates
procurement process for goods, works
or services related to the loan
(refer to Procurement PCM)
Manual
Set-up loan account
21. Notify Deputy ChiefExecutive
Chief Executive Chief Executive forwards original
signed loan agreement to Director Legal
and sends a soft copy to Deputy Chief
Executive, Finance copying Director
Finance and Project Finance Manager
Auto
Process Control Manual for Finance
100Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
of signed loan agreements
22. Set up loan account Loan Officer Loan Officer sets up loan account in
treasury module after receiving
authorisation from Project Finance
Manager (refer to procedure manual for
set up procedures)
Auto Amortisation
schedule
23. Coordinate precedentconditions
Project Finance
Officer
Project Finance Officer obtains
information on compliance with terms
and conditions of the loan, prepares
letter of compliance and forwards to
Chief Executive for signature
Manual Compliance
letter
24. Sign compliance letter Chief Executive Chief Executive signs compliance letter
and forwards to registry for dispatch to
lending agency
Manual
END
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
13.0 LONG - TERM LOAN DISBURSEMENT
Process descriptionOverview
The purpose of the process is to describe the activities involved in long term loan disbursement.
Process Owner
Project Finance Manager
Process Objectives
To ensure draw downs are made in accordance with terms and conditions of the loan
To ensure draw downs are app
To ensure loan disbursement
Process Scope
This process applies to all long term loan disbursement
Timeframe
Aligned to project cycle
Segregation of duties matrixActivity / Resources
Certify work done
Approve withdrawal application
Update loans account
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
TERM LOAN DISBURSEMENT
describe the activities involved in long term loan disbursement.
draw downs are made in accordance with terms and conditions of the loan
To ensure draw downs are appropriately authorised
disbursement transactions are completely and accurately recorded
loan disbursements
Segregation of duties matrixProject Director Loans Officer
RV
IN
101
describe the activities involved in long term loan disbursement.
draw downs are made in accordance with terms and conditions of the loan
are completely and accurately recorded
Loans Officer ChiefExecutive
AP
IN
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Long term loan disbursement process flow chart
1. Procurementdepartment awardscontract and project
is initiated
2. Contractorsubmits
payment cert.to PM on
completion of
a milestone
3. ProjectDirector certifies
work done byContractor and
forwardspayment cert. to
DF
4. DF forwards
payment cert. toPFM notifying PF
Officer
5. PF Officerprepares
withdrawalapplication andforwards to CE
through DF forapproval
6a. CEreviews and
approveswithdrawalapplication
GoG loan?
6b. CEforwards
signedwithdrawal
application tolending agency
8. DF receivesdisbursementadvice from
lending agency
9b. Loans Officerupdates loan account
with drawn downamountafter rec
End
A
No
term loan disbursement process flow chart
department awardscontract and project
PFM notifying PF
6c. CE forwards
withdrawalapplication to
MOFEP for counterapproval
7. MOFEP repsigns and forwardssigned withdrawal
application tolending agency
updates loan account
Yes
102
Process Control Manual for Finance
103Volta River AuthorityCONTROLLED DISCLOSURE
Long term loan disbursement activity detail
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Award contract andinitiate project
Procurement
Department
Procurement Department awards
contract to winning bidder and
Contractor initiates project
Manual
2. Submit progresspayment certificate
Contractor Contractor submits payment
certificate to Project Management
upon achievement of agreed
milestone ( per contract)
Manual Progress payment
certificate
3. Certify work Project Director Project Director certifies work done
by Contractor and forward progress
payment certificate to Director
Finance
Manual Certificate of
completion
4. Notify Project FinanceManager
Director Finance Director Finance forwards payment
certificate to Project Finance
Manager copying Project Finance
Officer
Manual
5. Prepare withdrawalapplication
Project Finance
Officer
Project Finance Officer prepares
withdrawal application and
forwards to Chief Executive for
approval through Director Finance
Auto Withdrawal
application
START
Process Control Manual for Finance
104Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
6. Review and approvewithdrawal application
Chief Executive Chief Executive reviews and
approves withdrawal application.
For on-lent loans, Chief Executive
forwards withdrawal application to
Ministry of Finance for counter
approval.
Manual Approved
withdrawal
application
7. Forward approvedwithdrawal application
Ministry of
Finance
Representative
Ministry of Finance Representative
forwards approved withdrawal
application to Lending Agency for
direct payment to Contractor
Manual
8. Receive disbursementadvice
Director
Finance
Director Finance receives
disbursement advice from Lending
Agency after payment has been
made
Manual Disbursement
advice
9. Update loans account Loans Officer Loans Officer updates loan account
with drawn down amount after
receiving authorisation from
Director Finance
Auto
END
CRP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
14.0 LONG TERM LOAN
Process descriptionOverview
The purpose of the process is to describ
Process Owner
Project Finance Manager
Process Objectives
To ensure project loans are repaid
To ensure timely repayment of loans
To ensure repayments are appro
To ensure loan repayment transactions are completely and accurately recorded
Process Scope
This applies to all project loan repayments
Timeframe
Aligned to project cycle
Segregation of duties matrix
Activity / Resources Loans Officer
Check demand notice
Authorize payment
Process payment
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
LONG TERM LOAN REPAYMENT
The purpose of the process is to describe activities involved in repaying project loans.
To ensure project loans are repaid in accordance with agreed terms and conditions
To ensure timely repayment of loans
To ensure repayments are appropriately authorised
To ensure loan repayment transactions are completely and accurately recorded
repayments
Segregation of duties matrix
Loans Officer TreasuryManager
Chief Executive
RV
PR
105
e activities involved in repaying project loans.
in accordance with agreed terms and conditions
To ensure loan repayment transactions are completely and accurately recorded
Chief Executive
AP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Long - term loan repayment process flow chart
1. CE receivesdemand notice
from lendingagency and
notifies DCE, F
2. DCE, F forwardsdemand notice to
Loans Officercopying DF, and
PFM
3. Loans Officervalidates
demand notice
againstamortisation
schedule
4. Loans Officerforwards
demand notice toPFM to seek
authorisation forpayment
5. Appropriateauthority perapproval limit
authorises paymentand forwards to CE
for approval
6. CE approvespayment, signsdemand notice
and notifies
DCEs
7. DCEs
notify LoansOfficer ofapproval
8a. Loans Officer setsup demand notice in
AP module andnotifies TM of
pending payment
End
loan repayment process flow chart
F forwardsdemand notice to
and
Loans Officer
Loans Officer
demand notice to
authorisation for
authorises paymentand forwards to CE
Loans Officer setsup demand notice in
pending payment
A
106
Process Control Manual for Finance
107Volta River AuthorityCONTROLLED DISCLOSURE
Long term loan repayment activity detail
Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Receive demandnotice
Chief Executive Chief Executive receives electronic
demand notice from Lending Agency
and forwards to Deputy Chief
Executive, Finance
Manual Demand notice
2. Notify LoansOfficer
Deputy Chief
Executive,
Finance
Deputy Chief Executive, Finance
forwards electronic demand notice to
Loans Officer , copying Director
Finance Project Finance Manager
Manual
3. Validatedemand notice
Loans Officer Loans Officer validates demand notice
against amortisation schedule to
ascertain repayment amount and
forwards to Project Finance Manager
for review
Auto
4. Forwarddemand noticefor approval
Project Finance
Manager
Project Finance Manager forwards
demand notice to appropriate authority
to obtain approval to process payment
Manual
5. Authorisepayment
Appropriate
authority
Appropriate Authority grants
authorisation for payment
Manual
6. Approvepayment
Chief Executive Chief Executive approves payment ( by
signing demand notice) and notifies
Deputy Chief Executive
Manual Signed demand
notice
START
CRP
Process Control Manual for Finance
108Volta River AuthorityCONTROLLED DISCLOSURE
Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
7. Notify LoansOfficer
Deputy Chief
Executive
Deputy Chief Executive notifies Project
Finance Manager and Loans Officer of
approval
Manual
8. Set up demandnotice inaccountpayables module
Loans Officer Loans Officer sets up demand notice in
account payables module (initiating the
payables process) and notifies Treasury
Manager of pending payment
Auto
Long term loan loans key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner
1. Loan performance against
conditions precedent
Per loan
agreement
Per
Occurrence
Project Finance
Manager
Deputy Chief Executive, Finance
Long term loans standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Long term loan
report
This report provides a
summary of long term loan
by lending agency and by
type of loan (i.e. Government
of Ghana on lent loans and
To provide
management
information on
performance of long
ERP Monthly Deputy Chief Executive,
Finance
END
Process Control Manual for Finance
109Volta River AuthorityCONTROLLED DISCLOSURE
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
bilateral loans). The report
highlights the following:
Loan disbursements
Principal and interest
repayments
Outstanding
commitments
Late payment charges
term loans
Process Control Manual for Finance
110Volta River AuthorityCONTROLLED DISCLOSURE
Long term loan repayment loan repayment process risk and control matrix (RCM)
Key Risks:
1 Loan transactions may be entered into without the appropriate approvals
2 Draw downs are not backed by works and recorded appropriaely
3 Non-compliance to the terms and conditions of the loan could result in penalties
No
.
Su
bp
ro
cess
Co
ntr
olO
bje
cti
ve
Co
ntr
olO
bje
cti
ve
Cate
go
ry
(C,F
,O)
Co
ntr
olO
bje
cti
ve
Typ
e(C
,A,V
,R)
Fin
an
cia
l
Sta
tem
en
t
Acco
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asserti
on
Co
ntr
ols
/P
oin
ts
of
Fo
cu
s
Ap
pli
cab
leO
racle
Bu
sin
ess
Pro
cess
To
ols
Tco
de(s
)
Co
ntr
olT
yp
e
(I,S
,M,R
,Mn
)
Co
ntr
olA
pp
ro
ach
(P,D
)
Freq
uen
cy
(E,D
,W,M
,Q,A
)
Po
licy
/P
ro
ced
ure
Refe
ren
ce
Co
ntr
olO
bje
cti
ve
Ow
ner
1Long term loan -
Administration
To ensure
commitment to
borrowing by the
authority has
received
appropriate
approvals
O V, R N/A R&O
An acceptable loan
agreement is signed by Chief
Executive in the presence of
Director Legal. Prior to this
the loan agreement would
have gone through a
thorough review process.
Term sheets from lending
agencies are evaluated by an
evaluation team comprising
Director Finance and
representatives of the Legal,
Engineering and Planning
Departments.
M P E N/A
Director
Finance
2Long term loan -
Disbursement
To ensure draw
downs are backed
by works,
appropriately
authorised and
recorded
F V BS N/A
Work done is inspected and
certified by a Project
Director. Withdrawal
application is approved by
Chief Executive and
supervising ministry.
M P E N/A
Director
Finance
Process Control Manual for Finance
111Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
eC
ate
go
ry
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e
(C,A
,V,R
)
Fin
an
cia
lS
tate
me
nt
Ac
co
un
t/D
isc
losu
re
Fin
an
cia
lS
tate
me
nt
Asse
rti
on
Co
ntr
ols
/P
oin
tso
fF
oc
us
Ap
pli
ca
ble
Or
ac
leB
usin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y(E
,D,W
,M,Q
,A)
Po
lic
y/
Pr
oc
ed
ur
eR
efe
re
nc
e
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
3Long term loan -
Repayment
To ensure the
accuracy of
demand notice
figuresF A BS A
Demand notice is validated
against amortisation
schedule to confirm
repayment amount M P E N/A
Loans Officer
Chief Executive
4Long term loan -
Repayment
To ensure
appropriate
approvals are
obtained for
payments to be
made
F, O V N/A N/A
Repayments are
appropriately approved. M P E N/A
Director
Finance
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
15.0 SHORT-TERM LOAN ADMINISTRATION
Process descriptionOverview
The purpose of the process is to describe the activities involved in short term loan administration.
Process Owner
Treasury Manager
Process Objectives
To ensure draw downs are made in accordance with terms and conditions of the loan
To ensure draw downs are appropriately authorised
To ensure loan disbursement transactions are completely and accurately recorded
Process Scope
This process applies to all project loan disbursements
Timeframe
Aligned to project cycle
Segregation of duties matrix
Activity / Resources
Evaluate proposals/ term sheets
Review and recommend evaluation reports forapprovalApprove and sign evaluation reports
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
TERM LOAN ADMINISTRATION
The purpose of the process is to describe the activities involved in short term loan administration.
To ensure draw downs are made in accordance with terms and conditions of the loan
are appropriately authorised
To ensure loan disbursement transactions are completely and accurately recorded
This process applies to all project loan disbursements
Segregation of duties matrix
TreasuryManager
DirectorLegal
RV RVReview and recommend evaluation reports for
112
The purpose of the process is to describe the activities involved in short term loan administration.
To ensure draw downs are made in accordance with terms and conditions of the loan
To ensure loan disbursement transactions are completely and accurately recorded
DeputyChiefExecutive,Finance
Board ofDirectors
RV
AP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Short term loan administration process flow chart
1. DF receivesapprovedbudgetary
requirement and
(2) instructs TMto arrange for
financing
3. TM instructsTreasury Officer
to request forproposals /term sheetsfrom banks
4. TreasuryOfficer receivesproposals/ term
sheets from
banks
5.Treasury team
evaluatesproposal, make
recommendationand forwards
evaluation report
to DF
6. DF reviewsevaluation report
and forwardproposal/ termsheet to DL for
review
7. Legal Teamreviews term
sheet/ proposals
to prepare anevaluation report
9. DCE, F reviewsboth treasury and
legal evaluationreports and
recommends forBoard approval
through CE
10a. BoD reviewevaluation
reports and
reach aconsensus
OK?
10b. BoD
approvesproposal/ termsheet notifying
DCE, F
10c. BoDcommunicates
issues raised toDCE, F for
further action
A
Yes
No
8. TreasuryOfficer prepares
combined reportand forwards to
DCE, F forreview
Short term loan administration process flow chart
11. DCE , Fnotifies DFand TM of
Board
approval
12. TM forwardsapproved term
sheet to Bank forsignatures
BoDcommunicates
issues raised toF for
further action
End
113
Process Control Manual for Finance
114Volta River AuthorityCONTROLLED DISCLOSURE
Short term loan administration activity detail
Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Receiveapproved budget
Director Finance Director Finance receives approved
budgetary requirement from Director
Planning and Business Development
Manual Approved
budgetary
requirement
2. Notify TreasuryManager
Director Finance Director Finance instructs Treasury
Manager to arrange for financing by email
Manual
3. Request forproposals orterm sheets
Treasury Officer Treasury Officer is directed by Treasury
Manager to send a written request to
various banks asking for the submission of
proposals/term sheets
Manual
4. Receiveproposals orterm sheets
Treasury Officer Treasury Officer receives proposals or
term sheets from Banks
Manual Proposals/
Term sheets
5. Evaluateproposals/ termsheets
Treasury
Manager
Treasury Team evaluate term sheets and
proposals, make recommendations,
prepare and forward evaluation report to
Director Finance
Manual Evaluation
report
6. Reviewevaluationreport
Director Finance Director Finance reviews evaluation report
and forwards term sheet/proposal with
evaluation report to Director Legal for
review
Manual
7. Review termsheet
Director Legal Legal Team reviews term sheet or
proposal, prepares and forwards legal
review report to Treasury Officer for
Manual Legal review
report
START
Process Control Manual for Finance
115Volta River AuthorityCONTROLLED DISCLOSURE
Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
compilation
8. Preparecombined report
Treasury Officer Treasury Officer combines finance and
legal review reports into a compiled report
and forwards to Deputy Chief Executive,
Finance
Manual Combined
report
9. Review andrecommendreport forapproval
Deputy Chief
Executive,
Finance
Deputy Chief Executive, Finance reviews
combined report and recommends to
Board for approval through Chief
Executive
Manual
10. Reviewevaluationreport
Board of
Directors
Board of Directors reviews combined
report to reach a consensus.
If Board approves, appropriate authorities
sign and Board Secretary affixes corporate
seal.
Manual Board
minutes
Approved
term sheet/
proposal
11. Notify treasury Deputy Chief
Executive,
Finance
Deputy Chief Executive, Finance is
notified of Board’s resolution and emails
Director Finance copying Treasury
Manager
Manual
12. Forwardapproved termsheet to bank
Treasury
Manager
Treasury Manager forwards approved
term sheet to Bank for signatures
Manual
13. File approvedterm sheet/proposal
Treasury Officer Treasury Officer receives and files the
Authority’s copy of approved term sheet/
proposal
Manual
CRP
Process Control Manual for Finance
116Volta River AuthorityCONTROLLED DISCLOSURE
Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
END
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
16.0 SHORT-TERM LOAN DISBURSEMENT
Process descriptionOverview
The purpose of the process is to describe the short term loa
Process Owner
Treasury Manager
Process Objectives
To ensure short term loans are appropriately disbursed per terms and conditions outlined for the credit
facility
To ensure appropriate charges and interests are applied to the approv
To ensure short term loan disbursements are properly set up and accurately accounted for
Process Scope
This process applies to all short term loans.
Timeframe
N/A
Segregation of duties matrix
Activity / Resources
Recommend invoice for approvalApprove invoice for paymentGenerate payment authorisation requestApprove and sign payment authorisationSet up loan
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
TERM LOAN DISBURSEMENT
The purpose of the process is to describe the short term loan disbursement process.
To ensure short term loans are appropriately disbursed per terms and conditions outlined for the credit
To ensure appropriate charges and interests are applied to the approved loan
To ensure short term loan disbursements are properly set up and accurately accounted for
This process applies to all short term loans.
Segregation of duties matrix
DirectorFinance
ChiefExecutive
RVAP
Generate payment authorisation request INApprove and sign payment authorisation
117
n disbursement process.
To ensure short term loans are appropriately disbursed per terms and conditions outlined for the credit
ed loan
To ensure short term loan disbursements are properly set up and accurately accounted for
VRASignatories
LoanOfficer
APIN
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Short term loan disbursement process flow chart
1. DF receives
supplierinvoice andforwards to
TM
2. TM reviewsinvoice, forwards
to DF thencontacts lending
bank to verifyavailability of
funds
3. DFrecommends
invoice for
approval fromDCE,F
4. DCE, F
approves andrecommends
invoice forpayment from CE
5. CE approvesinvoice forpayment
notifying DCE,F and DF
6. DF generatespayment
authorisation requestand forwards to
appropriatesignatories
7. Appropriatesignatories
approve and signpayment
authorisationrequest notifying
DF
8. DF notifies bankto effect payment
by forwardingapproved invoice
and signed payment
authorisation
9. TM receivesbank advice
detailing loanbooked, payment
terms andamortisation
schedule
10. Loan
Officer setsup loan in
system
End
A
Short term loan disbursement process flow chart
authorisation request
DF notifies bank
and signed payment
A
A
A
118
Process Control Manual for Finance
119Volta River AuthorityCONTROLLED DISCLOSURE
Short term loan disbursement activity detail
Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Receive invoice Director Finance Director Finance receives invoice from
Supplier through User Department and
forwards to Treasury Manager
Manual Invoice
2. Review invoice Treasury Manager Treasury Manager reviews invoice,
forwards to Director Finance and contacts
lending bank to verify availability of funds
Manual
3. Recommend forapproval
Director Finance Director Finance recommends invoice for
approval from Deputy Chief Executive,
Finance
Manual
4. Recommend forpayment
Deputy Chief
Executive, Finance
Deputy Chief Executive, Finance
recommends invoice for payment and
forwards to Chief Executive
Manual
5. Approve forpayment.
Chief Executive Chief Executive approves invoice for
payment notifying Deputy Chief Executive,
Finance and Director Finance
Manual
6. Generatepaymentauthorisationrequest
Director Finance Director Finance generates payment
authorisation request and forwards to
appropriate signatories for signature
Manual
7. Approvepaymentauthorisation
Appropriate
signatories
Appropriate signatories sign payment
authorisation, notifying Director Finance
Manual
8. Notify bank Director Finance Director Finance notifies bank to effect Manual
START
CRP
CRP
CRP
Process Control Manual for Finance
120Volta River AuthorityCONTROLLED DISCLOSURE
Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
payment by forwarding original copy of
approved invoice and signed payment
authorisation to bank
9. Receive transferadvice
Treasury Manager Treasury Manager receives bank advice
detailing loan booked, payment terms and
amortisation schedule and notifies
Director Finance
Manual
10. Set up loan Loan Officer Loan Officer sets up loan in system and
monitors due dates for repayments,
charges and interests.
11. File documents Treasury Officer Treasury Officer files copies of approved
invoice, payment authorisation and bank
advice
END
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
17.0 SHORT-TERM LOAN REPAYMENT
Process descriptionOverview
The purpose of the process is to describe the activities involved in short term loan
Process Owner
Treasury Manager
Process Objectives
To ensure adequate funds are available to meet repayment obligations
To ensure repayments are made a
To ensure repayments are appropriately authorised
To ensure repayments are completely and accurately recorded
Process Scope
This process applies to all short term
Timeframe
Aligned to terms and conditions of credit facility
Segregation of duties matrixActivity / Resources Treasury Manager
Authorise BankEffect payment
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
TERM LOAN REPAYMENT
The purpose of the process is to describe the activities involved in short term loan
adequate funds are available to meet repayment obligations
To ensure repayments are made according to terms and conditions
are appropriately authorised
completely and accurately recorded
loan repayments
of credit facility
Segregation of duties matrixTreasury Manager Bank
ININ
121
The purpose of the process is to describe the activities involved in short term loan repayment.
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Short term loan repayment process flow chart
1. TM receivesnotification from
bank about pendingmaturity of credit
facility
2. TM writes tobank to debit VRA
account onmaturity of credit
facility
3. TM receives
bank advice ofdebit transactionto service short
term loan
End
Short term loan repayment process flow chart
TM receivesnotification from
bank about pendingmaturity of credit
TM writes tobank to debit VRA
maturity of credit
TM receives
bank advice ofdebit transactionto service short
122
Process Control Manual for Finance
123Volta River AuthorityCONTROLLED DISCLOSURE
Short term loan repayment activity detail
Act IDProcess Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Receive notificationfrom bank
Treasury Manager Treasury Manager receive
notification from bank about
pending maturity of credit facility
Manual Bank notification
2. Write to bank Treasury Manager Treasury Manager writes to bank
to debit bank account upon
maturity of credit facility
Manual
3. Receive bankadvice
Treasury Manager Treasury Manager receives bank
advice of debit transaction to
service short term loan (as stated
in terms and conditions of credit
facility)
Manual Bank advice
Short term loans key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner
1. Loan performance against conditions
precedent
Per loan
agreement
Per
Occurrence
Project Finance
Manager
Deputy Chief Executive, Finance
START
END
Process Control Manual for Finance
124Volta River AuthorityCONTROLLED DISCLOSURE
Short term loans standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Short term loan
report
This report provides a
summary of short term loan
by lending agency and by type
of loan The report highlights
the following:
Loan disbursements
Principal and interest
repayments
Outstanding
commitments
Late payment charges
To provide
management
information on
performance of long
term loans
ERP Monthly Deputy Chief
Executive, Finance
Process Control Manual for Finance
125Volta River AuthorityCONTROLLED DISCLOSURE
Short term loan repayment process risk and control matrix (RCM)
Key risks
1 Loan transactions may be entered into without the appropriate approvals
2 Non-compliance to the terms and conditions of the loan could result in penalties
3 Inadequate segregation of duties
No
.
Su
bp
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ss
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ol
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Co
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ol
Ob
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teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
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eT
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e
(C,A
,V,R
)
Fin
an
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cc
ou
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an
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tA
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,Mn
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(E,D
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oc
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ur
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efe
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Ob
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eO
wn
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1Short term loan -
Administration
To ensure loans
are appropriately
approved
O V N/A A
Term sheets/ proposals
submitted by banks are be
given fair evaluation to
ensure commitments are
made with banks that
propose the best deal.
Evaluation reports should be
reviewed by both Treasury
and Legal departments.
Board approval should be
sought and given.
M P E N/ATreasury
Officer
Process Control Manual for Finance
126Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
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Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
lS
tate
me
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Ac
co
un
t/D
isc
los
ur
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Fin
an
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se
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on
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,M,R
,Mn
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ntr
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pr
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ch
(P,D
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Fr
eq
ue
nc
y(E
,D,W
,M,Q
,A)
Po
lic
y/
Pr
oc
ed
ur
eR
efe
re
nc
e
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
2Short term loan -
Disbursement
To ensure
adequate
segregation of
duties
F R N/A N/A
Director Finance recommends
invoices for approval, Deputy
Chief Executive, Finance then
recommends invoices for
payment. Approval for
payment is given by Chief
Executive.
Payment authorisation
requests are generated by
Director Finance and
approved by an appropriate
signatory based on the
Authority's approval
threshold.
M P E N/ADirector
Finance
3Short term loan -
Repayment
To ensure
compliance to
terms and
conditions of the
loan
O O N/A N/A
Treasury Manager contacts
bank to debit authority's
account prior to maturity of
credit facility to avoid
penalties.
Mn P E N/ATreasury
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
18.0 STAFF LOANS
Process descriptionOverview
The purpose of the process is to describe staff loan application
Process Owner
Payroll Officer
Process Objectives
To ensure staff loan applications
To ensure staff are eligible for loans they have applied for
To ensure staff loans are appropriately authorised
To ensure staff loan transactions are completely and accurately recorded
To ensure staff loan repayment
Process Scope
This process applies to all staff loans
Timeframe
N/A
Segregation of duties matrixActivity / Resources
Verify eligibility of staff for loanApprove loan applicationSet up loan in systemSet up deductions in system
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
describe staff loan application, disbursement and repayment
staff loan applications are appropriately approved per the Authority’s policies
To ensure staff are eligible for loans they have applied for
To ensure staff loans are appropriately authorised
To ensure staff loan transactions are completely and accurately recorded
To ensure staff loan repayment deductions are set up promptly in the system
Segregation of duties matrixPayrollAccountingAssistant
FinancialAccountingManager
HumanResourceManager
INAP AP
127
, disbursement and repayment processes.
Authority’s policies
in the system
AccountPayablesOfficer
ReceivablesSupervisor
IN
IN
Process Control Manual for Finance
128Volta River AuthorityCONTROLLED DISCLOSURE
Staff loans flow chart
Process Control Manual for Finance
129Volta River AuthorityCONTROLLED DISCLOSURE
Staff loan administration activity detail
Act ID Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Complete loanapplicationform
VRA Staff VRA Staff picks and completes
appropriate Loan Application Form
depending on loan type from the finance
department
Manual Completed loan
application form
2. Verifyeligibility ofstaff for loan
Payroll Accounting
Assistant
VRA Staff submits Loan Application
Form to Payroll Accounting Assistant at
payroll unit for verification. Payroll
Accounting Assistant checks for staff
eligibility in accordance with Authority’s
policy
Manual Eligibility report
3. Seek approval Payroll Accounting
Assistant
Payroll Accounting Assistant forwards
application to Financial Accounting
Manager for approval if staff is eligible.
Where staff is not eligible, staff is notified
of refusal.
Manual
4. Approve loanapplication
Financial
Accounting
Manager
Financial Accounting Manager reviews
eligibility report and approves loan
application and forwards to Human
Resource Manager for second approval.
Manual
5. Approve loanapplication
Human Resource
Manager
Human Resource Manager approves loan
application and notifies Disbursement
Manual
CRP
CRP
START
Process Control Manual for Finance
130Volta River AuthorityCONTROLLED DISCLOSURE
Act ID Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
Manager
END
Process Control Manual for Finance
131Volta River AuthorityCONTROLLED DISCLOSURE
Staff loan disbursement activity detail
Act ID Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Receiveapproved loanapplication
Accounts Officer Accounts Officer receives approved loan
application from human resources
department and recommends for
processing
Manual Approved loan
application
2. Set up staffloan in system
Account Payables
Officer
Accounts Officer sets up staff loan in
system, generating a payment voucher.
(Initiate payable and payment (cheque)
processes)
Payment voucher
Staff loan repayment activity detail
Act ID Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Monitor loan Receivables
Supervisor
Receivables Supervisor monitors loan to
begin deductions.
Grace period depends on type of loan
Manual
END
START
START
Process Control Manual for Finance
132Volta River AuthorityCONTROLLED DISCLOSURE
Act ID Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
2. Set updeduction
Receivables
Supervisor
Receivables Supervisor sets up deduction
in oracle payroll after grace period
Manual
Staff loans key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner
1. Application to approval cycle 3 days Per
Occurrence
HR Manager Payroll Accounting Assistant
Staff loans standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Staff loan report This report provides a
summary of staff loans by
department and by type of
loan. The report
highlights the following:
Loan disbursements
Repayments
Outstanding balances
To provide
management
information on
performance of long
term loans
ERP Monthly Deputy Chief Executive, Finance
END
Process Control Manual for Finance
133Volta River AuthorityCONTROLLED DISCLOSURE
Staff loans process risk and control matrix (RCM)Key risks
1 Loan transactions may be entered into without the appropriate approvals
2 Loans may not be accurately accounted for
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
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e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
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yp
e
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
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Ac
co
un
t/
Dis
clo
su
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Fin
an
cia
l
Sta
tem
en
t
As
ser
tio
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/P
oin
ts
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Or
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To
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(P,D
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(E,D
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Po
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Pr
oc
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e
Re
fer
en
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Co
ntr
ol
Ob
jec
tiv
eO
wn
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1Staff Loans -
Administration
To ensure only
eligible staff are
awarded loan
privileges
C v N/A N/A
Payroll Accountant
verifies staff eligibility
for loan according to the
Authority's policy on
staff loans
Loan applications are
approved by both
Financial Accounting
Manager and Human
Resource Manager
M D E N/APayroll
Accountant
2Staff Loans -
Disbursement
To ensure loans
are accurately
accounted for
c V, A BS C
Staff Loan applications
are recommended for
processing by
Disbursement Manager.
Account Payables
Officer sets up staff loan
M D E N/APayroll
Accountant
3Staff Loans -
Repayment
To ensure
deductions to
loans are made
in accordance
to loan policies
c V,A BS C
Receivables Supervisor
sets up deductions in
payroll application
M D E N/AReceivables
Supervisor
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
INVOICE PROCESSES
17. PAYABLES
Process descriptionOverview
This process applies to the receipt and
Process Owner
Accounts Payables Officer
Process Objectives
To ensure receipt of invoices are logged for future reference
To ensure invoices are processed in a timely manner
To ensure invoices are appropriately matched
To ensure invoices are approved for payment in accordance with approval hierar
Process Scope
This applies to all invoices for goods, services and works procured by the Authority
Timeframe
Aligned to procurement cycle
Segregation of duties matrixActivity / Resources
Input and match invoicesReview and validate invoices
Authorise payment
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
ES
and processing of approved invoices.
To ensure receipt of invoices are logged for future reference
invoices are processed in a timely manner
To ensure invoices are appropriately matched
To ensure invoices are approved for payment in accordance with approval hierar
all invoices for goods, services and works procured by the Authority
Segregation of duties matrixAccountsPayablesOfficer
AccountPayablesSupervisor
PRRV
134
To ensure invoices are approved for payment in accordance with approval hierarchy
all invoices for goods, services and works procured by the Authority.
AccountPayablesSupervisor
DisbursementManager
RV RV
AP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Payables process flow chart
3.
details in payables
matched invoices to
generates payment
Manager authorises
flow chart
Paymentprocess is
initiated
End
1. Finance
Admin Assistantreceives and
registers invoicefrom Supplier
2. FinanceAdmin Assistantforwards invoice
to APO for
processing
. APO enters invoice
details in payablesmodule
4a. APO performsmatch in system
PO transaction?
5. APO routesmatched invoices to
AP Supervisor forreview
4b. APO routesinvoices to
DisbursementManager
6. DisbursementManager validates
and approvesinvoices
7. AP Supervisor
generates paymentauthorisation and
forwards forapproval
8. DisbursementManager authorises
payment
Yes
No
A
A
135
Process Control Manual for Finance
136Volta River AuthorityCONTROLLED DISCLOSURE
Payables activity detail
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Receive invoice Finance
Administrative
Assistant
Finance Administrative Assistant receives
invoice from supplier, registers in excel
document log book and forwards to Account
Payables Officer (notifying Disbursement
Manager and Payables Supervisor).
Manual Supplier
Invoice
2. Forward invoice topayables unit
Finance
Administrative
Assistant
Finance Administrative Assistant forwards
invoice to Account Payables Officer for
processing
Manual
3. Enter invoice details Account Payables
Officer
Account Payables Officer enters invoice
details in accounts payable module
Auto Payment
voucher
4. Perform match Account Payables
Officer
Account Payables Officer performs four-way
match for goods, matching invoice, goods
received note, inspection report and purchase
order or performs three-way match for
services matching invoice, certificate of
completion (inspection note) and purchase
order (works order)
A match is not performed for non- purchase
order transactions
Auto
5. Route invoices Account Payables
Officer
Account Payables Officer routes matched
invoices to Accounts Payables Supervisor for
review, rejects unmatched invoice in system
Auto
START
Process Control Manual for Finance
137Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
and notifies Category Manager of rejects
Invoices for non-purchase order transactions
are also routed to the Disbursement Manager
for validation and approval.
6. Validate andapprove invoices
Disbursement
Manager
Disbursement Manager validates and
approves invoices for non-purchase order
transactions, and routes to Accounts Payables
Supervisor
Auto
7. Generate paymentauthorisation
Accounts
Payables
Supervisor
Accounts Payables Supervisor generates
payment authorisation and forwards for
approval
Auto
8. Authorise payment Disbursement
Manager
Disbursement Manager authorises payment. Auto
END
CRP
CRP
Process Control Manual for Finance
138Volta River AuthorityCONTROLLED DISCLOSURE
Payables key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner
1. Average days between receipt of invoice
and receipt by payables officer
2 days Monthly Finance Administrative
Assistant
2. Invoice receipt by Payables Officer to
approval cycle
2 days Monthly Disbursement
Manager
Payables Officer
3. Number of invoices set-up as a % of
invoices available for processing over the
reporting period
XXX Monthly Disbursement
Manager
Account Payables Officer
4. Number of overdue invoices XXX Monthly Director Finance Disbursement Manager
5. Timeliness of blocked invoice
notifications to Supplier
2 days Monthly Disbursement
Manager
Account Payables Officer
6. Time taken to resolve blocked invoices XXX days Monthly Director Finance Disbursement Manager
7. % of blocked invoices communicated to
purchase order raiser within 2 days of
posting invoices
100% Monthly Disbursement
Manager
Account Payables Officer
8. Number of duplicate set-ups Zero Tolerance Quarterly Disbursement
Manager
Account Payables Officer
9. % first time match At least 90% Monthly Director Finance Disbursement Manager
Process Control Manual for Finance
139Volta River AuthorityCONTROLLED DISCLOSURE
Payables standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Non-purchase
order transactions
report
This report provides a list of
transactions that are not
backed by purchase orders n
To measure enforcement of
the purchasing process
(high occurrence indicate
poor enforcement)
ERP Monthly Financial
Accounting Manager
2. Outstanding
invoice report
This report lists invoices not
processed within standard
processing time
To measure performance in
the invoice receipt to
processing cycle
ERP Monthly Disbursement
Manager
Process Control Manual for Finance
140Volta River AuthorityCONTROLLED DISCLOSURE
Payables process risk and control matrix (RCM)
Key Risks:
1 Invalid supplier claims are processed for payment:
2 Purchases representing goods which have not been received or for which title has not passed
3 Purchases representing services which have not been rendered
4 Unauthorised purchase of goods and services
No
.
Su
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y(C
,F,O
)
Co
ntr
ol
Ob
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eT
yp
e
(C,A
,V,R
)
Fin
an
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t/
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an
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Co
ntr
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Ap
pr
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ch
(P,D
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Fr
eq
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nc
y(E
,D,W
,M,Q
,A
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ur
e
Re
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en
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ntr
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eO
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1 Payables
To ensureinvoices are
appropriately
backed byworks/
supporting
documents
F A,V IS/BS C,A,CL, CO
Account Payables
Officer performsfour-way match,
matching invoice,
goods receivednote, inspection
report and purchase
order (for goods).For services the
invoice is matched
to a certificate ofcompletion and
purchase/ works
order.
Where there is no
S D E
Account
PayablesOfficer
Process Control Manual for Finance
141Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
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ss
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Ob
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Fin
an
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jec
tiv
eO
wn
er
2 Payables
TO ensure
supplier invoices
for which
purchase orders
do not exist are
verified as to
accuracy and
completeness
prior to payment
F C, A, V IS/BS C,A,CL, CO
Invoices for which
a purchase order or
receiving report
does not exist must
be approved by
authorised
personnel before
payment.
M, Mn P E N/ADisbursement
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
18. PREPAYMENTS
Process description
Overview
This process applies to granting advanc
Process Owner
Accounts Payables Officer
Project Finance Officer
Process Objectives
To ensure prepayments are appropriately authorised and approved
To ensure advance payment requests
To ensure complete and accurate record keeping
Process Scope
This applies to all advance payment request
Timeframe
Aligned to procurement cycle
Segregation of duties matrix
Activity / Resources
Review progress payment certificate
Approve advance request/progress paymentcertificate/ advance retirementEnter and apply advance retirement details insystem
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
granting advance payments to suppliers and staff.
prepayments are appropriately authorised and approved
advance payment requests are processed in a timely manner
ensure complete and accurate record keeping of all prepayments
advance payment request for goods, services and works procured by the Authority.
Segregation of duties matrix
Appropriate Authority(per approvalthreshold)
ProjectManager
Approve advance request/progress paymentAP
nt details in
142
, services and works procured by the Authority.
ProjectManager
AccountPayablesOfficer
RV
PR
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Prepayments (supplier and contractor)
1. ProjectDirector
receives requestfor mobilisation
funds fromContractor
2a. ProjectDirector
seeks
approval foramount
Amount within
threshold
3. Appropriateauthorityapproves
request andforwards for
processing
4. Payables andpayments
processes areinitiated
5. Contractorsubmits progress
payment certificatefor review and
processing
6. Project Managerreviews andrecommends
progress paymentcertificate for
approval
7. AppropriateVRA authority
approves progresspayment certificate
and forwards to
payables unit forprocessing
8. ProjectManagermonitorsproject
Payables andpayments
processes areinitiated
End
No
(supplier and contractor) process flow chart
ProjectDirector
receives requestfor mobilisation
funds fromContractor
ProjectDirector
seeks
approval foramount
Amount within
threshold?
2b. ProjectDirector
approvesrequest
Appropriateauthorityapproves
request andforwards for
processing
Payables andpayments
processes areinitiated
Contractorsubmits progress
payment certificatefor review and
processing
Project Managerreviews andrecommends
progress paymentcertificate for
approval
AppropriateVRA authority
approves progresspayment certificate
and forwards to
payables unit forprocessing
ProjectManagermonitorsproject
Payables andpayments
processes areinitiated
End
A
A
A
Yes
No
143
Process Control Manual for Finance
144Volta River AuthorityCONTROLLED DISCLOSURE
Prepayments (supplier and contractor) activity detail
Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Receive requestfor mobilisationfunds
Project Director Project Director receives Request for
Mobilisation Funds from Contractor
based on payment schedule agreed
at contract negotiations
Manual Request for
mobilisation
funds
2. Seek approval Project Director Project Director seeks approval from
appropriate authority for amounts
beyond approval threshold
Manual
3. Approve request Appropriate
authority
Appropriate Authority per VRA’s
approval hierarchy approves request
and forwards for processing
Manual Approved
request
4. Forward requestfor processing
Project Director Project Director forwards request to
accounts payables and initiates
payables and payments processes
Manual Processed
request
5. Submit progresspaymentcertificate
Contractor Contractor submits progress
payment certificate to Project
Manager for review and processing
Manual Progress
payment
certificate
6. Review progresspaymentcertificate
Project Manager Project Manager reviews progress
payment certificate and recommends
for approval based on approval
hierarchy
Manual
7. Approveprogresspayment
Appropriate
Authority
Appropriate Authority approves
progress payment certificate and
Manual Approved
progress
START
CRP
CRP
Process Control Manual for Finance
145Volta River AuthorityCONTROLLED DISCLOSURE
Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
certificate forwards to Payables Officer.
Refer to payables and payment
processes
payment
certificate
8. Monitor project Project Manager Project Manager monitors project
execution
Manual
END
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Staff advances (for business activ
1. Line Manageridentifies need
for advance and
communicatesto AdvanceFacilitator
2. Advance
Facilitatorcompletesrequest for
advance formand forwards to
Supervisor
3.Supervisorrecommend
s request forapproval
4a. Manager orappropriate
authority
approve requestfor advance
4b. Advance
Facilitatorforwards
approved requestto AP for
processing
Payables andpayments
processes areinitiated
5. Advance
facilitatorreceives and
cashescheque
End
Request
A
(for business activities) process flow chart
1. Advancefacilitator
completes a
workingadvance
retirement form
2. Advance
facilitator attachesreceipts to
retirement formand forwards to
Supervisor
3. Supervisorrecommends request
to Manger/Appropriate
Authority forapproval depending
on approval limit
4. Manager orAppropriate
Authority approveretirement formand forwards to
finance forprocessing
5. Finance AdminAssistant receives
and registersretirement form
with attached
receipts
6. Finance AdminAssistant forwardsretirement forms
to APO forprocessing
7. APO entersretirement detailsinto AP module to
generate paymentvoucher
8. APO appliespayment voucher to
initial advance to
clear off advance
9. AP Supervisorposts transaction to
general ledger
End
Retirement
A
146
Process Control Manual for Finance
147Volta River AuthorityCONTROLLED DISCLOSURE
Staff advances (for business activities) activity detail
Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
Request
1. Identify need foradvance
Line Manager Line Manager identifies need for advance
and communicates to Advance Facilitator
Manual
2. Completerequest foradvance form
Advance
Facilitator
Advance Facilitator completes a request
for advance form and forwards for
recommendation by Supervisor
Manual Request for
advance
3. Recommend forapproval
Supervisor Supervisor recommends request to
Manager for approval depending on
approval limits (for advances)
Manual
4. Approve request Manager or
Appropriate
Authority
Manager or Appropriate Authority
approves request and forwards to finance
for processing and payment
(Refer to payables and payment
processes).
Manual
5. Receive cheque Advance
Facilitator
Advance Facilitator receives and cash
cheque
Manual
Retirement
1. Completeworking advanceretirement form
Advance
Facilitator
Advance Facilitator completes a working
advance retirement form and attaches
receipts
Manual Working
advance
retirement
form
START
CRP
Process Control Manual for Finance
148Volta River AuthorityCONTROLLED DISCLOSURE
Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
2. Forward forrecommendation
Advance
Facilitator
Advance Facilitator forwards form to
Supervisor for recommendation for
approval
Manual
3. Recommend forapproval
Supervisor Supervisor recommends request to
Manager for approval depending on
approval limits (for advances)
Manual
4. Approveretirement form
Manager or
Appropriate
Authority
Manager or Appropriate Authority
approves retirement form forwards to
finance for processing
Manual
5. Receiveapprovedretirement formswithattachments
Finance
Administrative
Assistant
Finance Administrative Assistant
receives approved retirement forms with
attachments and registers in excel
document log book. The Disbursement
Manager and Supervisor are notified.
Manual Approved
retirement
form
6. Forwardretirementrequest topayables unit
Finance
Administrative
Assistant
Finance Administrative Assistant
forwards retirement request to Account
Payables Officer for processing
Manual
7. Enter retirementattachmentdetails
Account
Payables Officer
Account Payables Officer enters
retirement attachment details in
accounts payable module
Auto Payment
voucher
8. Apply paymentvoucher toadvance
Account
Payables Officer
Account Payables Officer applies
payment voucher to initial advance to
clear off advance
Auto
CRP
Process Control Manual for Finance
149Volta River AuthorityCONTROLLED DISCLOSURE
Act ID Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
9. Post transaction Account
Payables
Supervisor
Account Payables Supervisor posts
transaction to general ledger
Auto
Prepayments standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
Prepayment
(Supplier and
Contractor
report
This report provides a
summary of prepayments as at
a specified period and the
prepayment balances as a
percentage of related project
costs
To provide
management
information on
prepayments as at a
specified date
ERP Monthly Project Finance Manager
Staff advance
status report
This report shows balances on
staff advances for business
activities that have been
accounted for and those that
have not been accounted for
To keep records of
staff advances that
have not been
accounted for
ERP Monthly Advance Facilitator
END
Process Control Manual for Finance
150Volta River AuthorityCONTROLLED DISCLOSURE
Prepayments process risk and control matrix (RCM)Key risks
1 Unauthorised approvals
2 Supplier or contractor could abandon project after receiving prepayment
3 Staff advances are not accounted for
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
tA
cc
ou
nt/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
tA
ss
er
tio
n
Co
ntr
ols
/
Po
ints
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
es
s
Pr
oc
es
sT
oo
ls
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,
A)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
1
Prepayments -
Supplier and
Contractor
To ensure supplier
prepayments are
approved per the
Authority's
approval threshold
O V N/A N/A
Requests for
mobilisation funds is
approved by
appropriate authorities
per VRA's approval
threshold
Mn P E
VRA
approval
threshold
2
Prepayments -
Supplier and
Contractor
To ensure
adequate
monitoring and
supervision of
work after
prepayment
O V N/A N/A
Progress of work is
monitored and a
progress payment
certificate submitted to
Project Manager to be
recommended for
approval
Progress payment
certificate is approved
for payment by
appropriate authority
depending on VRA
approval threshold
Mn P E
VRA
approval
threshold
Project
Manager
Process Control Manual for Finance
151Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/
Po
ints
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
leB
usin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
3Prepayments -
Staff Advances
To ensure staff
requests for
advance are
appropriately
approved
F V, R N/A N/A
An Advance Facilitator is
appointed for each
operating unit to place
requests for advance.
Requests are
recommended for
approval by a Supervisor
and approved by a
Manger or an appropriate
authority depending on
the amount involved
M,Mn P E N/AAdvance
Facilitator
4Prepayments -
Staff Advances
To ensure staff
advances are
accounted for
with supporting
documents
F C, A, V IS C, A
Retirement forms with
supporting documents
should be forwarded to
should be approved by a
Manager or an
appropriate authority
depending on VRA
approval threshold and
forwarded to account
payables for processing
M, Mn P E N/A
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
19. PAYMENT PROCESS
Process description
This process applies to the payment of approved
module.
Process Owner
Disbursement Manager
Process Objectives
To ensure payments are made in accordance with authoris
To manage cash flow
Process Scope
This applies to all payments for goods, services and works procured by the Authority.
Timeframe
Aligned to procurement cycle
Segregation of duties matrix
Activity / Resources
Determine payment method
Approve authorisation for payment
Generate cheques
Sign cheques
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
PROCESS
payment of approved invoices that have been set-up in the accounts payables
payments are made in accordance with authorised invoices
for goods, services and works procured by the Authority.
Segregation of duties matrix
DisbursementManager
VRA Signatories
IN
AP
AP
152
up in the accounts payables
for goods, services and works procured by the Authority.
XXX
IN
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Payment process flow chart
TBDCheque
process flow chart
1. Payment Officergenerates due
supplier invoice listfrom system and
forwards toDisbursement
Manager
3. DisbursementManager selects
payment method in
system
2. Disbursement
Manager withTreasury
Manager selectbank account for
payment
4. Payment Officer
prepares andforwards payment
authorisationletter for approval
5. Authorisedsignatories at
categoriesA&B signpayment
authorisationletter
7. Registryregisters and
dispatches letterto bank
8. Director
Finance receivesbank advice aftertransfer has been
made
End
Wire transfer
6. Payment Officermakes and files acopy of payment
authorisation andforwards to registry
for registration
153
Payment Officer
prepares andforwards payment
authorisationletter for approval
Authorisedsignatories at
categoriesB sign
payment
authorisation
Registryregisters and
dispatches letter
Director
Finance receivesbank advice aftertransfer has been
A
Payment Officermakes and files acopy of payment
authorisation andforwards to registry
for registration
Process Control Manual for Finance
154Volta River AuthorityCONTROLLED DISCLOSURE
Payment activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Generate duesupplier invoice list
Payment Officer Payment Officer generates due supplier
invoice list from system and forwards to
Disbursement Manager
Auto Due supplier
invoice list
2. Select bank accountfor payment
Disbursement
Manager
Disbursement Manager selects bank
account for payment in accordance with
approval from Treasury Manager
Manual
3. Select paymentmethod
Disbursement
Manager
Disbursement Manager selects payment
method i.e. payment cheque or by
electronic transfer (refer to process) based
on payment method agreed with Supplier
Manual
START
END
Process Control Manual for Finance
155Volta River AuthorityCONTROLLED DISCLOSURE
Payment by cheque sub-process
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
Payment by wire transfer
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
4. Prepare paymentauthorisation letter
Payment Officer Payment Officer prepares and
forwards payment authorisation
letter to VRA authorised
signatories for approval
Manual Payment
authorisation letter
5. Approve paymentauthorisation letter
Signatories Approved signatory signs
payment authorisation letter
Manual Approved payment
authorisation letter
6. Register paymentauthorisation letter
Payment Officer Payment Officer makes and files
a copy of payment authorisation
and forwards to registry for
Manual Copy of approved
payment
START
END
START
CRP
Process Control Manual for Finance
156Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
registration authorisation
7. Dispatch letter Registry Registry registers and dispatches
payment authorisation letter to
bank and Bank Manager acts on
request
Manual
8. Receive bank advice Director Finance Director Finance receives bank
advice after transfer has been
made.
Auto/ Manual Bank advice
Payment key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process
owner
1. Number of duplicate payments Zero Monthly Disbursement Manager Payment Officer
2. Approved invoice to payment cycle time Monthly Disbursement Manager Payment Officer
END
Process Control Manual for Finance
157Volta River AuthorityCONTROLLED DISCLOSURE
Payment standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Overdue invoice
report
This report shows invoices
that are overdue for
payment
To provide information to
manage risk/ cost
associated with late
payment of invoices
ERP Monthly Disbursement Manager
2. % of invoices
paid
electronically
This report shows the
number of payments paid
electronically compared to
the total number of
payments over a specified
period
ERP Monthly Director Finance
Process Control Manual for Finance
158Volta River AuthorityCONTROLLED DISCLOSURE
Payment process risk and control matrix (RCM)
Key risks
1 Unauthorised payments are made and established authorisation and approval limits are not adhered to
2 Inaccurate and incomplete recording of payments/cash disbursement in the proper accounting period
No
.
Su
bp
ro
cess
Co
ntr
ol
Ob
jecti
ve
Co
ntr
ol
Ob
jecti
ve
Cate
go
ry
(C,F
,O)
Co
ntr
ol
Ob
jecti
ve
Typ
e
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Acco
un
t/
Dis
clo
sure
Fin
an
cia
l
Sta
tem
en
t
Asserti
on
Co
ntr
ols
/P
oin
ts
of
Fo
cu
s
Ap
pli
cab
le
Oracle
Bu
sin
ess
Pro
cess
To
ols
Tco
de(s
)
Co
ntr
olT
yp
e
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pro
ach
(P,D
)
Freq
uen
cy
(E,D
,W,M
,Q,A
)
Po
licy
/
Pro
ced
ure
Refe
ren
ce
Co
ntr
ol
Ob
jecti
ve
Ow
ner
1 PaymentTo manage
cash flowF C, A, V N/A N/A
Disbursement
Manager consults
Treasury Manager
about the bank
account for payment
for cash
management
purposes
M P E N/ADisbursement
Manager
2Payment by
cheque
To ensure
payables are
properly
validated and
authorised
F C, A, V BS A
A payment
authorisation
request is generated,
validated and signed
by appropriate
authorities
N, Mn P E N/ADisbursement
Manager
3
Payment by
wire
transfer
To ensure
approval is
granted by
appropriate
signatories
F C, A, V BS A
Signatories from
VRA categories A &
B sign payment
authorisation letter
that would be
forwarded to the
bank to effect
transfer
M P E N/ADisbursement
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
BANK ACCOUNT ADMINISTRATION
20. BANK ACCOUNT CREATION
Process description
Overview
This process describes the activities involved in opening a new bank account
Process Owner
Treasury Manager
Process Objectives
To ensure creation of bank accounts
To ensure bank account database is complete
Process Scope
This applies to creation of new bank accounts
Timeframe
N/A
Segregation of duties matrixActivity / Resources
Review and approve request/ account openingforms
Sign specimen signature cardsAuthorise bank account opening
Create bank account code in GL and cashmanagement module
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
ADMINISTRATION
BANK ACCOUNT CREATION
involved in opening a new bank account.
of bank accounts is appropriately authorised and approved
base is completely and accurately updated with details of new bank account
new bank accounts in the Authority.
Segregation of duties matrixDirectorFinance
Appropriateauthorities
Review and approve request/ account opening RVAP
AP
Create bank account code in GL and cash
159
ed and approved
with details of new bank account
Appropriate Board ofDirectors
FinancialAccountingManager
AP
IN
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Bank account creation process flow chart
1. TM identifiesneed for newbank account,
completes
request form andforwards for
review
2a. DFreviewsrequest
Requestwarranted?
2 b. DFapproves
request andnotifies TM
3. TM contactsbank for account
opening form andspecimen
signature cards
4a. TreasuryOfficer
completesform and
forwards to TM
5. DF approves completedaccount opening formsand forwards specimen
signature cards with
approved account openingforms to authorised
signatories for signing
6. Authorisedsignatories sign
specimen
signature cardsand notify DF
7. DF forwardsapproved form
and signed
specimen card toDCE, F to seekBoard approval
Yes
2c . DFreturns
request toTMNo
A
A
A
Bank account creation process flow chart
9. BoD reach a
resolution toopen bank
account
8. DCE, Fforwards approved
form and signed
specimen card toBoard for approval
10. CE and BoardSecretary authorise
bank accountopening by signing
account openingforms
11a. TM preparesand attaches
transmittal to bankaccount opening
forms and
signature cards
11b. TM forwardstransmittal withattachments to
DF for signature
12. DF signstransmittal
and forwardswith
attachmentfor dispatch
13. Registryregisters and
forwardsdocuments to
bank
14. DirectorFinance receives
new bankaccount details
from bank andnotifies TM
15. TM sends
request to FAMto create new
bank account insystem
request to
End
16. FAM creates GLcode and (17) createsbank account in cash
management module
A
160
Process Control Manual for Finance
161Volta River AuthorityCONTROLLED DISCLOSURE
Bank account creation activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Complete
account opening
request form
Treasury
Manager
Treasury Manager identifies need for a new
bank account, completes account opening
request form and forwards to Director Finance
for review
There should be a standard request form and
Bank Administration policy for opening,
closing and modifying bank accounts
Manual Completed
account
opening
request
form
2. Review andapprove request
Director
Finance
Director Finance reviews request, determines
whether request is warranted and approves
request notifying Treasury Manager
Manual Approved
request
3. Contact bank Treasury
Manager
Treasury Manager contacts bank and obtains
bank account opening forms and specimen
signature cards
Manual Bank
account
opening
forms
4. Complete bankopening forms
Treasury Officer Treasury Officer completes bank account
opening forms and forwards (with request) to
Treasury Manager for review
Manual
5. Approve forms Director
Finance
Director Finance approves forms, and
forwards specimen signature cards to
authorised signatories for signing
Manual Approved
bank
account
opening
forms
START
CRP
CRP
Process Control Manual for Finance
162Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
6. Sign specimensignature cards
Authorised
signatories
Authorised signatories signed specimen
signature cards notifying Director Finance
Manual
7. Forwardapproved formsto ChiefExecutive,Finance
Director
Finance
Director Finance forwards approved forms
and signed specimen cards to Deputy Chief
Executive, Finance to seek approval of the
Board
Manual Transmittal
letter
8. Seek Boardapproval
Deputy Chief
Executive,
Finance
Deputy Chief Executive, Finance forwards
completed bank account opening form and
signature specimen cards to seek Board
approval to open new bank account
Manual
9. Reach aresolution
Board of
Directors
Board of Directors reach a resolution to open
new bank account
Manual
10. Authorise bankaccount opening
Chief Executive Chief Executive and Board Secretary authorise
bank account opening by signing bank account
opening forms
Manual
11. Preparetransmittalletter
Treasury
Manager
Treasury Manager prepares and attaches
transmittal letter to bank account opening
forms and forwards together with request form
to Director Finance for signature
Manual Transmittal
letter
12. Sign transmittal Director
Finance
Director Finance signs transmittal letter and
forwards to registry for dispatch
Manual Signed
transmittal
letter
13. Dispatchtransmittal with
Registry Registry dispatches transmittal with account
opening documents to bank for account
Manual
Process Control Manual for Finance
163Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
account openingdocuments
opening
14. Receive newbank accountdetails
Director
Finance
Director Finance receives new bank account
details from Bank after opening of new account
Manual Bank
account
details
15. Request forcreation of bankaccount insystem
Treasury
Manager
Treasury Manager forwards a request Financial
Accounting Manager to create bank account in
system
Manual
16. Create bankaccount code ingeneral ledger
Financial
Accounting
Manager
Financial Accounting Manager creates the
appropriate general ledger code for new bank
account
Manual
17. Create bankaccount
Financial
Accounting
Manager
Financial Accounting Manager creates bank
account in cash management module
Manual
18. File all bankdocumentation
Treasury Officer Treasury Officer files copies of all bank
documents for future reference
Manual
END
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
21. MODIFYING EXISTING BANK ACCOUNT
Process description
Overview
This process describes the activities involved in modifying an existing bank account including
or revising an authorised signatory to the bank account
Process Owner
Cash Manager
Process Objectives
To ensure modification of bank accounts is appropriately authorised and approved
To ensure bank account database is completely and accurately updated
Process Scope
This applies to all bank accounts.
Timeframe
N/A
Segregation of duties matrix
Activity / Resources
Review and approve modification request
Approve and sign modification letter
Update bank account database with modification
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
MODIFYING EXISTING BANK ACCOUNT
involved in modifying an existing bank account including
to the bank account.
on of bank accounts is appropriately authorised and approved
To ensure bank account database is completely and accurately updated
Segregation of duties matrix
DirectorFinance
Appropriatesignatories
Review and approve modification request RV
APApprove and sign modification letter
Update bank account database with modifications
164
involved in modifying an existing bank account including adding, deleting,
on of bank accounts is appropriately authorised and approved
Appropriatesignatories
TreasuryManager
AP
IN
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Modifying existing bank account
1. TM completesan account
modificationrequest form
and forwards to
DF
2b. DF
approvesrequest
notifyingTM
2 a. DFreviews
request
Requestwarranted?
Yes
No
3. TM preparesmodification
letter providingdetails of
modification
4. DF reviewsletter and
forwards toappropriatesignatories
5. First and
second levelsignatories
approve and signmodification
letter
6. TM sendsapproved
modification
letter to registryfor dispatch
7. Registryregisters and
dispatchesmodification
letter to bank
8. DF receivesnotification from
bank ofmodifications
made
9. TM updatesbank database
withmodificatins
End
A
A
Modifying existing bank account process flow chart
2c. DFreturns
request toTM
No
165
Process Control Manual for Finance
166Volta River AuthorityCONTROLLED DISCLOSURE
Modifying existing bank account activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Complete achange of detailsrequest form
Treasury
Manager
Treasury Manager identifies the need to
modify an existing bank account,
completes a change of details request
form and forwards to Director Finance for
review
There should be a standard request form
and Bank Administration policy for
opening, closing and modifying bank
accounts
Manual Completed
change of details
request form
2. Review andapprove request
Director
Finance
Director Finance reviews request,
determines whether request is warranted
and approves request notifying Treasury
Manager
Manual Approved
request
3. Preparemodificationletter
Treasury
Manager
Treasury Manager prepares modification
letter instructing Bank of which account to
modify and what modifications are
required and forwards modification letter
to Director Finance for review
Manual Modification
letter
4. Reviewmodificationletter
Director
Finance
Director Finance reviews modification
letter and forwards to appropriate
authorities for first and second level
signatures
Manual
START
CRP
Process Control Manual for Finance
167Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
5. Approvemodification
First and second
level signatories
First and second level signatories approve
modification letter by signing
Manual Approved
modification
letter
6. Forward toregistry
Treasury
Manager
Treasury Manager forwards approved
modification letter to registry for dispatch
Manual
7. Dispatch letter Registry Registry registers and dispatches
modification letter to bank
Manual
8. Receivenotification frombank
Director
Finance
Director Finance receives notification from
bank about modifications made and
notifies Treasury Manager
Manual Bank
notification
9. Update BankAccountDatabase
Treasury
Manager
Treasury Manager updates Bank Account
Database with changes and files copies of
bank documents for future reference
Manual
END
CRP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
22. BANK ACCOUNT CLOSING
Process description
Overview
This process describes the activities performed
Process Owner
Treasury Manager
Process Objectives
To ensure bank account closing requests are appropriately approved
To ensure the bank account data base is updated completely and accurately
Process Scope
This applies to all bank accounts
Timeframe
N/A
Segregation of duties matrix
Activity / Resources
Review and approve request
Authorise bank account closingUpdate bank account database
Close GL codes
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
BANK ACCOUNT CLOSING
This process describes the activities performed when closing an existing bank account
To ensure bank account closing requests are appropriately approved
To ensure the bank account data base is updated completely and accurately
Segregation of duties matrix
DirectorFinance
Board ofDirectors
RVAP
AP
168
when closing an existing bank account.
TreasuryManager
FinancialAccountingManager
ININ
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Bank account closing process flow chart
1 . TM identifiesneed to closeexisting bank
account,
completesrequest form and
forwards forreview
2a. DFreviewsrequest
Requestwarranted?
2b. DFapproves
request and
notifies TM
Yes
2c. DFreturns
request toTM
No
3. TM preparesaccount closureletter providingaccount closure
details
4. DF reviewsaccount
closure letter
and forwardsfor approval
5. DCE, F seeksBoard approval
to close bank
account
6. BoD reach a
resolution toclose bank
account
7. CE and Board
Secretaryauthorise bankaccount closing
by signingaccount closure
letter
8. Registryregisters and
dispatches letter
to bank
9. Bank transfersremaining funds per
instructions is
closure letter andcloses bank account
A
A
losing process flow chart
returnsrequest to
10. Banknotifies DF
and TM ofclosure
11. TM updatesbank account
database withclosed account
12.TM notifiesinternal and
externalstakeholders of
closed bankaccount
14. FAM closes GL
codes associated withclosed account
End
169
Process Control Manual for Finance
170Volta River AuthorityCONTROLLED DISCLOSURE
Bank account closing activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Complete an accountclosure request form
Treasury
Manager
Treasury Manager identifies the need to
close an existing bank account,
completes an account closure request
form and forwards to Director Finance
for review
There should be a standard request
form and Bank Administration policy
for opening, closing and modifying
bank accounts
Manual Completeaccountclosurerequest form
2. Review and approverequest
Director Finance Director Finance reviews request,
determines whether request is
warranted and approves request
notifying Treasury Manager
Manual Approvedrequest
3. Prepare accountclosure letter
Treasury
Manager
Treasury Manager prepares account
closure letter instructing Bank of which
account to close and where to transfer
remaining fund in account, then
forwards account closure letter to
Director Finance for review
Manual Accountclosure letter
4. Review accountclosure letter
Director Finance Director Finance reviews account
closure letter and forwards Deputy
Chief Executive, Finance to seek Board
Manual
START
CRP
Process Control Manual for Finance
171Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
approval
5. Seek Board approval Deputy Chief
Executive,
Finance
Deputy Chief Executive, Finance
forwards bank account closure letter to
Board of Directors
Manual
6. Reach a resolution Board of
Directors
Board of Directors reach a resolution to
close existing bank account
Manual
7. Authorise bankaccount closing
Chief Executive Chief Executive and Board Secretary
authorise bank account closing by
signing bank account closure letter then
forward to registry
Manual
8. Dispatch letter tobank
Registry Registry registers and dispatches letter
to Bank
Manual
9. Transfer funds andclose account
Bank Bank transfers any remaining funds
according to instructions in account
closure letter and closes account.
Manual Bank advice
10. Receive banknotification
Director Finance Director Finance receives notification
of bank account closure and notifies
Treasury Manager
Manual
11. Update Bank AccountDatabase
Treasury
Manager
Treasury Manager updates Bank
Account Database to reflect the closing
of the account.
Manual
12. Notify stakeholdersof account closing
Treasury
Manager
Treasury Manager informs internal and
external stakeholders of the closing of
Manual
CRP
Process Control Manual for Finance
172Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
the bank account.
13. Close general ledgercodes as necessary
Financial
Accounting
Manager
Financial Accounting Manager closes
general ledger codes associated with
closed bank account
Auto
14. File all bankdocumentation
Treasury
Manager
Treasury Manager files copies of all
bank documents for future reference
Manual
END
Process Control Manual for Finance
173Volta River AuthorityCONTROLLED DISCLOSURE
Bank account administration process risk and control matrix (RCM)
Key Risks:
1 Unauthorised bank accounts, risk of fraud, increased bank fees
2 Unwarranted requests to open bank accounts
3 Inadequate segregation of duties
4 Unauthorised/ fraudulent transactions could be made using through closed bank account details
No.
Su
bp
rocess
Con
trolO
bje
cti
ve
Con
trolO
bje
cti
ve
Cate
go
ry
(C,F
,O)
Con
trolO
bje
cti
ve
Typ
e(C
,A,V
,R)
Fin
an
cia
l
Sta
tem
en
t
Accou
nt/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asserti
on
Con
trols
/P
oin
ts
ofF
ocu
s
Ap
pli
cable
Oracle
Bu
sin
ess
Process
Tools
Tcod
e(s
)
Con
trolT
yp
e
(I,S
,M,R
,Mn
)
Con
trolA
pp
roach
(P,D
)
Frequ
en
cy
(E,D
,W,M
,Q,A
)
Poli
cy
/P
ro
ced
ure
Refe
ren
ce
Con
trolO
bje
cti
ve
Ow
ner
1
Bank
account
creation
To ensure request
to open bank
accounts are
justified
O V NA N/A
Director Finance reviews bank
account opening request, then in
consultation with Treasury
Manager, determines whether the
request is warranted and approves
the request
There should be a standard
request form and Bank
Administration policy for
opening, closing and modifying
bank accounts
M P E N/ADirector
Finance
2
Bank
account
creation
To ensure
appropriate
authorisation to
open new bank
account is
obtained
O V NA N/A
Bank account opening forms are
approved by Director Finance.
Specimen signature cards are
signed by first and second level
authorised signatories.
Board approval is sought to open
new bank accounts. The Board
Secretary and Chief Executive
sign bank account opening forms
when the Board resolves to open a
new bank account
M E N/ADirector
Finance
Process Control Manual for Finance
174Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/P
oin
ts
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
3
Bank
account
modificatio
n
To ensure
modifications are
warranted and
appropriately
authorised
O V NA N/A
Director Finance reviews bank
account modification request,
determines whether request is
warranted and approves.
Modification letter is signed by
first and second level authorised
signatories
M P E N/ADirector
Finance
4
Bank
account
closing
To ensure bank
account closures
are appropriately
authorised
O V NA N/A
Director Finance reviews bank
account closure request,
determines whether request is
warranted and approves
Board approval is sought. Chief
Executive and Board Secretary
authorise bank account closure by
signing bank account closure letter
M P E N/ADirector
Finance
5
Bank
account
closing
To ensure bank
account database
is updated with
closure
O V NA N/A
Treasury Manger updates bank
account database with bank
account closure and informs
internal and external stakeholder
of bank account closure
Financial Accounting Manager
closes general ledger codes
associated with closed bank
account
M P E N/ATreasury
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
CASH MANAGEMENT
23. DAILY CASH MANAGEMENT
Process description
Overview
This process describes the tasks performed
Process Owner
Treasury Manager
Process Objectives
To manage liquidity, control cash flow
To maximise short term investment of funds
Process Scope
This applies to all bank accounts
Timeframe
N/A
Segregation of duties matrix
Activity / Resources
Generate daily cash report
Review and distribute daily cash report
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
CASH MANAGEMENT
CASH MANAGEMENT
performed to manage the company’s liquidity and optimise the use of cash
control cash flow and reduce the cost of borrowing
To maximise short term investment of funds
Segregation of duties matrix
Treasury Officer Treasury Manager
IN
Review and distribute daily cash report RV
175
to manage the company’s liquidity and optimise the use of cash.
Treasury Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Daily cash management process flow chart
1.Treasury Officerdownloads prior day
bank statement
2. Treasury Officer
reconciles bankaccounts usingprior day bankstatements andcash position.
Reconcile?
4. Treasury Officerreviews electronic
transactions in
account payables andreceivables modules
5. Treasury
Officerassesses
daily cashrequirement
6. Treasury
Officerreviews short
term cashforecasts
7a. TreasuryOfficer
determineswhether expectedcash inflows and
outflowsoccurred
7b.TreasuryOfficer updates
cash forecastwith expected
inflows andoutflows
8. Treasury
Officer runsdaily cashreport andforwards to
Treasury
Managerforreview
9. TreasuryManager reviews
Daily Cash Reportforwards to
Director Finance
End
Yes
No
process flow chart
3. TreasuryOfficer
investigates
and resolvesdiscrepancy
176
Process Control Manual for Finance
177Volta River AuthorityCONTROLLED DISCLOSURE
Daily cash management activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Download priorday bankstatements
Treasury Officer Cash Manager downloads prior day bank
statements for each bank account
Auto
2. Reconcile bankaccounts
Treasury Officer Cash Manager reconciles all bank accounts
using the prior day's bank statements and
cash position.
Manual
3. Investigate andresolvediscrepancies
Treasury Officer Cash Manager investigates and resolves
discrepancies where prior day's cash
position does not reconcile to the daily bank
statements.
Manual
4. Reviewelectronictransactions
Treasury Officer Cash Manager reviews electronic
transactions such as wire transfer payments
and receipts in account payables and
receivables modules
Auto
5. Review cashposition
Treasury Officer Cash Manager does initial assessment of
cash position to assess daily cash
requirements
Manual
6. Review cashforecasts
Treasury Officer Cash Manager reviews short term cash
forecasts to see if expected cash inflows and
outflows occurred.
Manual
7. Update cashforecast
Treasury Officer Cash Manager determines whether expected
cash inflows and outflows that have not
Auto
START
CRP
Process Control Manual for Finance
178Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
occurred will occur and when, then updates
cash forecast with new information
8. Run Daily CashReport
Treasury Officer Cash Manager runs daily cash report and
forwards for review
Auto
9. Review DailyCash Report
Treasury
Manager
Treasury Manager reviews Daily Cash
Report forwards to Director Finance.
Weekly cash reports are forwarded to the
Executive for planning purposes
Manual
END
Process Control Manual for Finance
179Volta River AuthorityCONTROLLED DISCLOSURE
Daily cash management key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner
1 Average daily idle cash Monthly Director Finance Treasury Manager
2 Average number of days billed are paid
before due date
Monthly Director Finance Treasury Manager
Daily cash management standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1 Daily Cash flow
report
This reports provides a
summary of expected cash
receipts and disbursements,
compared to cash forecasts
for a period
To provide
management
information for
planning and decision
making
ERP Daily Treasury
Manager
2 Daily Cash position
report
This report provides daily
cash balances by bank
account as at a specific time
Provides a snap shot of
daily cash balances
ERP Daily
Process Control Manual for Finance
180Volta River AuthorityCONTROLLED DISCLOSURE
Daily cash management cash management process risk and control matrix (RCM)
Key risks
1 Cash flow problems due to irregular monitoring of back accounts
2 Inability to meet cash obligations when they fall due
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
As
se
rti
on
Co
ntr
ols
/
Po
ints
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
es
s
Pr
oc
es
sT
oo
ls
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,
A)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
1Daily Cash
Management
To ensure cash
flow/ liquidity
probelms do
not arise
F C, A , V IS/BSO. E, C, A,
R&O
Daily cash position of the
Authority is assessed y
analysing expected cash flow,
actual cash flow and csh
forecasts.
Reconciliations of daily cash
balances to expected and actual
cash flow is done and reported
to the Executive for planning
purposes
M,S, Mn P D N/ACash
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
24. BANK STATEMENT RECONCILIATION
Process description
Overview
This process describes activities involved in
Process Owner
Reconciliation Officer
Process Objectives
To identify differences between
To ensure accurate and complete adjusting entries
To ensure adjusting entries are appropriately approved
Process Scope
This policy applies to all bank accounts maintained by the Authority
Timeframe
Monthly
Segregation of duties matrix
Activity / Resources ReconciliationOfficer
Perform bankreconciliation
PR
Review and approvereconciliation statement
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
BANK STATEMENT RECONCILIATION
involved in uploading/entering and reconciling bank statements
To identify differences between bank and book balances
To ensure accurate and complete adjusting entries
To ensure adjusting entries are appropriately approved
This policy applies to all bank accounts maintained by the Authority
atrix
Reconciliation Financial AccountingManager
PR
RV
AP
181
reconciling bank statements.
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Bank statement reconciliation process flow chart
1. Reconciliation
Officer receives bankstatement and loads
onto oracle
2. ReconciliationOfficer runs auto
reconciliationprogramme to
generate a auto
reconciliationexecution report
4. ReconciliationOfficer runs reports
to identify unreconciled
transactions
3.
ReconciliationOfficer printsand reviews
reconciliationexecution report
5. ReconciltaionOfficer performs
manualreconciliation for
un-reconciledtransactions
6. Reconciliation
Officer createstransactions for un
reconciled items
7. ReconciliationOfficer runs account
analysis reports to
follow up on unreconciled items
8. ReconciliationOfficer agrees
account analysisreport in cash
management togeneral ledger
9. ReconciliationOfficer runs finalaccount analysis
report in cashmanagement andgeneral ledger for
review
10. FAM reviews andsigns-off bank
reconciliation reportin cash management
module
End
iliation process flow chart
Reconciliation
Officer receives bankstatement and loads
onto oracle
ReconciliationOfficer runs auto
reconciliationprogramme togenerate a auto
reconciliationexecution report
Reconciliationreports
to identify un-reconciled
transactions
econciliationOfficer printsand reviews
reconciliationexecution report
ReconciltaionOfficer performs
reconciliation for
reconciledtransactions
Reconciliation
Officer createstransactions for un-
reconciled items
ReconciliationOfficer runs account
analysis reports to
follow up on un-reconciled items
ReconciliationOfficer agrees
account analysisreport in cash
management togeneral ledger
ReconciliationOfficer runs finalaccount analysis
report in cashmanagement andgeneral ledger for
FAM reviews andoff bank
reconciliation reportin cash management
A
182
Process Control Manual for Finance
183Volta River AuthorityCONTROLLED DISCLOSURE
Bank statement reconciliation activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Load bankstatement ontooracle
Reconciliation
Officer
Reconciliation Officer receives electronic
bank statement and automatically loads or
manually enters bank statement into oracle
Auto
2. Run autoreconciliationprogramme
Reconciliation
Officer
Reconciliation Officer runs auto
reconciliation programme in oracle cash
management module to generate an auto
reconciliation execution report
Auto Auto
reconciliation
execution
report
3. Review autoreconciliationexecution report
Reconciliation
Officer
Reconciliation Officer prints and reviews auto
reconciliation execution report
Manual
4. Run additionalreports
Reconciliation
Officer
Reconciliation Officer runs bank statement
details report and transactions available for
reconciliation reports to identify un-
reconciled transactions
Auto Bank
statement
details report
Transactions
available for
reconciliation
reports
5. Perform manualreconciliation
Reconciliation
Officer
Reconciliation Officer performs manual
reconciliation for un-reconciled transactions
or for transactions with errors
Manual
6. Createtransactions for
Reconciliation Reconciliation Officer creates transactions for
un-reconciled items. Some transaction are
Auto
START
Process Control Manual for Finance
184Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
un-reconcileditems
Officer for:
Account receivables receipts for directtransfers
Wire transfer payments by the Authority Miscellaneous transactions such as bank
charges, interest income, investmentincome, etc.
7. Run accountanalysis reports
Reconciliation
Officer
Reconciliation Officer runs account analysisreports in the following as a follow up of un-reconciled items :
account receivables module account payables module cash management module general ledger
Auto Account
analysis
report
8. Agree accountanalysis reports
Reconciliation
Officer
Reconciliation Officer agrees account analysis
report in cash management to general ledger
Auto
9. Run final accountanalysis reports
Reconciliation
Officer
Reconciliation Officer runs final account
analysis reports in cash management and
general ledger for Financial Accounting and
Treasury Manager reviews
Auto Bank
reconciliation
report
10. Review and sign-off reconciliationreport
Financial
Accounting
Manager
Financial Accounting Manager reviews and
signs-off bank reconciliation report in cash
management module
Auto
END
CRP
Process Control Manual for Finance
185Volta River AuthorityCONTROLLED DISCLOSURE
Bank statement reconciliation key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process
owner
1. Number and value of long outstanding
items
XXX Monthly Financial Accounting
Manager
Reconciliation Officer
2. % of accounts reconciled at month end 100% Monthly Financial Accounting
Manager
Reconciliation Officer
3. % of reconciliations approved by
Financial Accounting Manager at
month end
100% Monthly Financial Accounting
Manager
Reconciliation Officer
Bank statement reconciliation standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Bank account
reconciliation
status report
This report provides
information on the status of
bank account reconciliations
for each bank account as at a
specified period
To provide information
on the status of bank
reconciliations for
purposes of follow up and
remediation
ERP Monthly Financial Accounting
Manager
Process Control Manual for Finance
186Volta River AuthorityCONTROLLED DISCLOSURE
Bank statement reconciliation process risk and control matrix (RCM)
Key risks
1 Errors in bank accounts/statements may not be noted, corrected and resolved resulting in financial loss to the company.
2 The risk of fraud is not mitigated if bank statements are not properly reviewed.
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
ory
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/
Po
ints
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pro
ac
h
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
1Bank statement
reconciliation
To ensure errors in
bank statements
are identified and
correctedF C, A, V BS/ IS C, A, E
Reconciliation Officer
automatically loads or
manually enters bank
statement into oracle to
run auto reconciliation
programme in oracle
cash management
module.
Reports are run to
identify un-reconciled
transactions. Un-
reconciled transactions
are manually reconciled
R, M D D N/AReconciliation
Officer
2Bank statement
reconciliation
To ensure bank
statement
reconciliations are
reviewed
F V N/A C, A, E
Reconciliations are
reviewed and signed off
by Financial Accounting
Manager in cash
management module M P D, M N/AFinancial Accounting
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
25. CASH FORECASTING
Process description
Overview
This process describes activities involved in forecasting cash
purchase requisitions, purchase orders and sales
Process Owner
Treasury Manager
Process Objectives
To identify potential short falls i
To put in place measures to ensure availability of adequate cash resources to meet business needs
Process Scope
This applies to daily cash inflows and outflows
orders and sales
Timeframe
Daily
Segregation of duties matrix
Activity / Resources Treasury Officer
Initiate and run cashforecast reportReview cash forecastreport
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
CASH FORECASTING
ocess describes activities involved in forecasting cash inflows and outflows
purchase requisitions, purchase orders and sales in the Authority.
identify potential short falls in cash balances
To put in place measures to ensure availability of adequate cash resources to meet business needs
daily cash inflows and outflows from suppliers, customers, purchase requisitions, purchase
Segregation of duties matrix
Treasury Officer Treasury Manager
IN
RV
187
s and outflows from suppliers, customers,
To put in place measures to ensure availability of adequate cash resources to meet business needs
from suppliers, customers, purchase requisitions, purchase
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Cash forecasting process flow c
1. Treasury Officerdefines forecast in
cash managementmodule
2. Treasury Officeridentifies sources of
cash inflows andoutflows
3. Treasury Officer
determines forecastperiod in cash
forecastingapplication
4. Treasury Officerruns cash forecast in
cash forecastapplication
5. Treasury Officer
runs and prints cashforecast report for
review
6. TM reviews cashforecast report andforwards to DF for
information andplanning purposed
End
process flow chart
188
Process Control Manual for Finance
189Volta River AuthorityCONTROLLED DISCLOSURE
Cash forecasting activity detail
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Define forecast Treasury Officer Treasury Officer defines cash flow
forecast for an agreed period in
cash management module
Auto
2. Identify sourcesof cash flow
Treasury Officer Treasury Officer identifies sources
of cash inflows and outflows
Source could be suppliers,
customers, purchase requisitions,
purchase orders and sales
Auto
3. Determine periodof forecast
Treasury Officer Treasury Officer determines period
of forecast by defining columns in
cash forecasting application.
(Period could be daily, or aligned
to general ledger period; which is
monthly)
Auto
4. Run cash forecast Treasury Officer Treasury Officer runs cash forecast
in cash forecast application
Auto
5. Run cash forecastreport
Treasury Officer Treasury Officer runs and prints
cash forecast report for review
Auto Cash forecast
report
6. Review cashforecast report
Treasury Manager Treasury Manager reviews cash
forecast report and forwards to
Director Finance for information
Manual
START
CRP
Process Control Manual for Finance
190Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
and planning purposes
Cash forecasting key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner
1. Ratio of actual to planned cash
flow
Monthly Director Finance Treasury Manager
2. % of late submission of cash
forecast report
Zero Monthly Director Finance Treasury Manager
Cash forecasting standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Cash forecast
report
This report shows cash inflow or
outflow projections over a
specified period
To inform
management planning
and decision making
ERP Daily or Monthly by
general ledger
period
Treasury Manager
END
Process Control Manual for Finance
191Volta River AuthorityCONTROLLED DISCLOSURE
Cash forecasting process risk and control matrix (RCM)
Key risks
1 In accurate cash forecasting leading to excess or shortage of cash holdings
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/
Po
ints
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
es
s
Pr
oc
es
sT
oo
ls
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
1 Cash Forecast
To assure
available
resources to
meet
obligations as
they fall dueF N/A N/A N/A
Cash forecast report
should be run by a
Treasury Officer and
reviewed by
Treasury manager M P D N/ATreasury
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
26. PETTY CASH
Process descriptionOverview
This process describes the activities performed during the
petty cash for purposes specified in the Authority’s
Process Owner
Petty Cash Officer
Process Objectives
To ensure effective and efficient use of petty cash funds
To ensure petty cash advancement and replenishment requests are appropriately approved and
authorised
To ensure timely replenishment of the petty cash float
Process Scope
This applies to petty cash advances, disbursements and replenishments
Timeframe
Monthly
Segregation of duties matrix
Activity / Resources
Review and approve request
Disburse, reconcile and replenish pettycashReview replenishment request
Approve replenishment request
Legend
Input
Processing
Review
IN
PR
RV
This process describes the activities performed during the advancement, disbursement and replenishment of
purposes specified in the Authority’s Policy on petty cash management.
effective and efficient use of petty cash funds
To ensure petty cash advancement and replenishment requests are appropriately approved and
To ensure timely replenishment of the petty cash float
petty cash advances, disbursements and replenishments
Segregation of duties matrix
Line Manager Petty CashOfficer
DisbursementManager
RVAP
ncile and replenish pettyPR
192
advancement, disbursement and replenishment of
Policy on petty cash management.
To ensure petty cash advancement and replenishment requests are appropriately approved and
DisbursementManager
DirectorFinance
RV
AP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Approval
Informed
AP
IF
193
Process Control Manual for Finance
194Volta River AuthorityCONTROLLED DISCLOSURE
Petty cash process flow chart
Process Control Manual for Finance
195Volta River AuthorityCONTROLLED DISCLOSURE
Petty cash advance activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Identify need for pettycash
Staff Staff identifies need for pettycash
Manual
2. Complete and submitPetty CashRequisition Form
Staff Staff completes and submitsPetty Cash Requisition Form toLine Manager
Manual Completed Petty Cash
Requisition Form
3. Review and approvepetty cash requisition
Line Manager Line Manager reviews andapproves petty cash requisitionby signing Petty CashRequisition Form in accordancewith Chart of Authority
Manual Approved Petty Cash
Requisition Form
4. Forward petty cashrequest for processing
Line Manager Line Manager forwards pettycash request to Petty CashOfficer in for disbursement
Manual
START
END
CRP
Process Control Manual for Finance
196Volta River AuthorityCONTROLLED DISCLOSURE
Petty cash disbursement activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Receive approvedpetty cash request
Petty Cash Officer Petty Cash Officer receives approved
petty cash request and ensures the
appropriate approvals have been
obtained
Manual Approved petty
cash request form
2. Disburse cash Petty Cash Officer Petty Cash Officer disburses cash to
Staff for approved amount and
obtains Staff’s signature on receipt
voucher
Manual Signed petty cash
voucher
3. Return unspentcash
Staff Staff returns unspent cash andexpense receipts to Petty CashOfficer
Manual Expense receipts
4. File receipts Petty Cash Officer Petty Cash Officer files supporting
receipts and petty cash voucher
Manual
5. Perform daily pettycash count andreconciliation
Petty Cash Officer Petty Cash Officer performs daily
petty cash count and reconciliation
Manual Daily reconciliation
report
6. Update petty cashdatabase
Petty Cash Officer Petty Cash Officer updates petty cash
database with cash disbursed and
supporting documentation details
Manual Updated petty cash
database
START
END
Process Control Manual for Finance
197Volta River AuthorityCONTROLLED DISCLOSURE
Petty cash replenishment activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Perform petty cashreconciliation andprepare petty cashreplenishmentrequest
Petty Cash
Officer
Petty Cash Officer performs petty cash
reconciliation and prepares petty cash
replenishment request when petty cash
float is at a limit
Float is GHC 10,000.
Manual Petty cash
reconciliation
report
Petty cash
replenishment
request
2. Recommend forapproval
Disbursement
Manager
Disbursement Manager reviews
reconciliation report and recommends
replenishment request for approval
Manual
3. Approve for payment Director Finance Director Finance approves replenishment
request for payment and notifies Payment
Officer
Manual Approved
replenishment
request
4. Initiate paymentprocess
Payment Officer Payment Officer initiates payment
(cheque) process
Refer to payment process
Manual / Auto
5. Cash cheque andreplenish petty cashaccount
Petty Cash
Officer
Petty Cash Officer cashes cheque amount
from the bank and replenishes petty cash
database with replenishment amount
Manual Bank receipt
voucher
START
END
CRP
Process Control Manual for Finance
198Volta River AuthorityCONTROLLED DISCLOSURE
Petty cash key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner
1. Petty cash reconciled 100% Monthly Disbursement
Manager
Petty Cash Officer
Petty cash standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Reconciliation
report
This report provides details
of petty reconciliations
To highlight potential
transactions for
investigation and
further action
ERP Monthly Disbursement Manager
Process Control Manual for Finance
199Volta River AuthorityCONTROLLED DISCLOSURE
Petty cash process risk and control matrix (RCM)
Key risks
1 Unauthorised petty cash payments
2 Petty cash may not be accounted for
3 Uncontrolled petty cash activities
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
eC
ate
go
ry
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
tA
cc
ou
nt/
Dis
clo
sur
e
Fin
an
cia
lS
tate
me
nt
Ass
er
tio
n
Co
ntr
ols
/P
oin
tso
fF
oc
us
Ap
pli
ca
ble
Or
ac
le
Bu
sin
es
sP
ro
ce
ss
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
eR
efe
re
nc
e
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
1Petty Cash
Advance
To ensure petty
cash requests are
appropriately
authorised
F V N/A N/A
A standard petty cash advance
requisition form is completed
by staff. Petty cash requisitions
are reviewed by a Line
Manager.
Line Managers approve and
sign petty cash request up to
GHC 100. Directors sign
requests above GHC 100
M P E N/A Line Manager
2Petty Cash
Disbursement
To ensure
disbursed petty
cash to staff the
approved amount
F C, A, V IS/ BS C, O, A,
Petty Cash Officer ensures
appropriate approvals have
been obtained and disburses
approved amount to staff.
Staff signs a petty cash receipt
voucher for cash received. Mn D E N/APetty Cash
Officer
Process Control Manual for Finance
200Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
e
Ty
pe
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
As
se
rti
on
Co
ntr
ols
/P
oin
ts
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
le
Bu
sin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
3Petty Cash
Disbursement
To ensure petty cash
properly accounted forF C, A, V IS/ BS C, O, A,
Petty Cash Officer performs
daily petty cash count and
reconciliation, and updates
petty cash database with cash
disbursed and supporting
documentation details (for
cash spent)
R P E N/APetty Cash
Officer
4Petty Cash
Replenishment
To ensure petty cash
replenishment is
appropriately approved
O V N/A N/A
Petty Cash Officer submit a
reconciliation report with
replenishment request to
Disbursement Manager for
review. Disbursement Manager
reviews reconciliation reports
against replenishment request
and recommends request for
approval. Approval for
replenishment is given by
Director Finance
M, R P E N/A
Petty Cash
Officer
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
27. MASTER DATA MANAGEMENT
Process description
Overview
The purpose of the process is to describe steps involved in changing standing data.
Process Owner
Systems Administrator
Process Objectives
To ensure changes to standing data are appropriately authorised and approved
To ensure changes to standing data are adequately communicated to Users
Process Scope
This process applies to all standing data in the Authority.
Timeframe
N/A
Segregation of duties matrix
Activity / Resources
Review and approve requestExecute change, update change log, generateaudit trail
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
MASTER DATA MANAGEMENT
The purpose of the process is to describe steps involved in changing standing data.
to standing data are appropriately authorised and approved
To ensure changes to standing data are adequately communicated to Users
This process applies to all standing data in the Authority.
Segregation of duties matrix
DirectorFinance
SystemsAdministrator
AP RV, update change log, generate
IN
201
The purpose of the process is to describe steps involved in changing standing data.
to standing data are appropriately authorised and approved
To ensure changes to standing data are adequately communicated to Users
AdministratorUser
IF
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Master data management proce
1. Requestor
raises masterdata changerequest andforwards to
Systems Admin
2a. Systems Adminlogs request andassesses whether
change iswarranted and its
warranted
2b
recommendsrequest to DF
for approval
3. DF approvesrequest andforwards to
Systems Admin
4.
communicatesplanned change
and impact to
5.Adm
changes andgenerates an
audit trail withdetails ofchanges
Master data management process flow chart
Requestor
raises masterdata changerequest andforwards to
Systems Admin.
Systems Adminlogs request andassesses whether
change iswarranted and its
impact
Change
warranted?
2c. Request
is rejected
b. SystemsAdmin
recommendsrequest to DF
for approval
DF approvesrequest andforwards to
Systems Admin
. SystemsAdmin
communicatesplanned change
and impact tousers
. SystemsAdm in executes
changes andgenerates an
audit trail withdetails ofchanges
End
Yes
No
A
202
Process Control Manual for Finance
203Volta River AuthorityCONTROLLED DISCLOSURE
Master data management activity detail
ActID
ProcessFlow
Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Raise masterdata changerequest
Requestor Requestor identifies need and raises a master
data change request by completing a Master
Data Change Request Form and forwards to
Systems Administrator
Manual Master Data
Change
Request Form
2. Assess impactof change
Systems
Administrator
Systems Administrator logs request, assesses
whether change is warranted and the impact
on other Users, and provides
recommendation to Director Finance
(Recommendation could be for approval or
denial to change standing data)
Manual Impact
Assessment
Report
3. Approverequest
Director Finance Director Finance approves request and
forwards to System Administrator notifying
Requestor of approval by email
Manual
4. Communicatechanges toimpactedUsers
Systems
Administrator
Systems Administrator communicates
planned changes and impact to impacted
Users by email
Manual
5. Executechanges
Systems
Administrator
Systems Administrator creates back up of
standing data (if required), executes changes,
updates a Change Log and generates an audit
Manual Updated
Change Log
START
CRP
Process Control Manual for Finance
204Volta River AuthorityCONTROLLED DISCLOSURE
ActID
ProcessFlow
Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
trail with details of changes made
Master data management key performance measuresPerformance Measure Standard Frequency Reviewer Reviewee/
process owner1. Number of complete change requests
that are not supported with sufficient
information
Zero Per occurrence Financial AccountingManager
SystemsAdministrator
Master data management standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Change request
report
This report provides
information on the
number of change
requests to standing data
over a specific period
To provide a summary
of change requests over
a specific period
Change request log
book
Quarterly Director Finance
2. Exception report This report provides an
audit trail of changes to
standing data over a
specific period
To provide information
on changes made to
standing data over a
specific period
ERP Per occurrence Director Finance
END
Process Control Manual for Finance
205Volta River AuthorityCONTROLLED DISCLOSURE
Master data management process risk and control matrix (RCM)Key Risks:
1 Incomplete and/or inaccurate changes to standing data increases risk of inaccurate accounting
2 Invalid or unauthorised changes may be made to standing data
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
eC
ate
go
ry
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e(C
,A,V
,R)
Fin
an
cia
lS
tate
me
nt
Ac
co
un
t/D
isc
los
ur
e
Fin
an
cia
lS
tate
me
nt
As
se
rti
on
Co
ntr
ols
/P
oin
tso
fF
oc
us
Ap
pli
ca
ble
Or
ac
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us
ine
ss
Pr
oc
es
sT
oo
lsT
co
de
(s)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y(E
,D,W
,M,Q
,A)
Po
lic
y/
Pr
oc
ed
ur
eR
efe
re
nc
e
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
1Master Data
Management
To ensure changes
to standing data
are completely
and accurately
inputted.
F C, A, V, R N/A N/A
Requested changes to
standing data are reviewed
and approved by
management for validity,
accuracy and completeness
and proper authorisation
M, R P E N/ADirector,
Fiannce
2Master Data
Management
To ensure access
to effect changes
to standing data is
appropriately
limited.
F R N/A N/A
Access standing data is
restricted to authorised
personnel.
Access levels are pre-defined
based on clear job
responsibility
User access is independently
review by management on a
periodic basis
M, R P E N/ADirector,
Fiannce
3Master Data
Management
Standing data is
accurate and up-
to-date.
F C, R N/A N/A
Standing data is periodically
analysed for old or duplicate
records.M, R D E N/A
Director,
Fiannce
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
PERIOD CLOSING
28. MONTH END PERIOD CLOSING
Process descriptionOverview
This process describes month-end closing activities.
Process Owner
Financial Accounting Manager
Process Objectives
To ensure all transactions for the period have been processed
To ensure sub-ledger to general ledger reconciliations are perfor
To ensure timely preparation and completion of monthly financial statements
Process Scope
This process applies to all modules.
Timeframe
Monthly
Segregation of duties matrixActivity / Resources
Identify and post outstanding transactions
Reconcile sub-ledger to general ledger
Review and approve reconciliation report
Assess month-end closing performanceLegend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
MONTH END PERIOD CLOSING
end closing activities.
for the period have been processed and posted to the general ledger
ledger to general ledger reconciliations are performed
To ensure timely preparation and completion of monthly financial statements
Segregation of duties matrixManagers/Officers inCharge
ScheduleSupervisor
Identify and post outstanding transactions IN
ledger to general ledger INReview and approve reconciliation report
end closing performance
206
to the general ledger
To ensure timely preparation and completion of monthly financial statements
SectionalManager
DirectorFinance
RVAP
RV
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Month end period closing process flow chart
1. FAM distributesmonth end closing
schedule with
responsibilities to allERP users
2. FAM promptsManagers and OICs
of month-end
activities 5 days tomonth end
3. Managers andOICs notify Schedule
supervisors and
Officers to initiateperiod end activities
4. Managers andOICs ensure all
outstandingtrasactions are
validated, accountedand posted
5. ScheduleSupervisors reconcilesub-ledger postings
to general ledgerpostings to generate
a reconciliationreport
6. Schedule
Supervisors forwardreconciliation reportsto Sectional Manager
for review andapproval
7. Sectional Managerreviews and approves
reconciliation reportthen forwards to
FAM for validation
8. FAM validates
reconciliation reportagainst GL balances
then closes sub-ledgers
9. FAM runs finalaccounts
10. FAM withheads of
operating unitsanalyse financial
information
11. DF assessesachievement of
month-endclosing targets
End
A
process flow chart
207
Process Control Manual for Finance
208Volta River AuthorityCONTROLLED DISCLOSURE
Month end period closing activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Prepare and distributemonth-end closingschedule
Financial
Accounting
Manager
Financial Accounting Manager prepares
and distributes month end closing
schedule with identified roles and
responsibilities to all ERP users across
the Authority at the beginning of the
year
Auto Month-end
closing
schedule
2. Prompt all Managersand Officers in Charge
Financial
Accounting
Manager
Financial Accounting Manager prompts
all Managers and Officers in Charge 5
days to month end of month-end closing
activities
Auto
3. Notify schedule Officersto initiate closingactivities
Managers and
Officers in Charge
Managers and Officers in Charge notify
Schedule Supervisors and Officers to
initiate period-end activities
Auto
4. Identify and postoutstandingtransactions
Managers and
Officers in Charge
Managers and Officers in Charge ensure
all outstanding transactions are
validated, accounted and posted
Auto
5. Reconcile sub-ledgerpostings to generalledger
Schedule
Supervisors and
Officers
Schedule Supervisors and Officers
reconcile sub-ledger postings to general
ledger and forward to Sectional Manager
for review and approval
Auto Reconciliation
report
6. Review and approvereconciliation report
Sectional
Manager
Sectional Manager reviews and approves
reconciliation report and recommends to
Auto
START
CRP
Process Control Manual for Finance
209Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
Financial Accounting Manager for
validation
7. Validate reconciliationreport
Financial
Accounting
Manager
Financial Accounting Manager validates
reconciliation report against general
ledger balances
Auto Trial balances
8. Close sub-ledgers Financial
Accounting
Manager
Financial Accounting Manager closes
sub-ledgers
Auto
9. Run final accounts Financial
Accounting
Manager
Financial Accounting Manager runs final
accounts
Auto
10. Analyse financialinformation
Financial
Accounting
Manager
Financial Accounting Manager together
with heads of operating units analyse
financial information to resolve any
unusual variances
Manual
11. Assess month-endclosing procedure
Director Finance Director Finance leads a meeting to
assess the achievement of month-end
closing targets.
Lessons learnt from this meeting is
shared with the Finance Team to
enhance month-end closing procedures
Manual
CRP
END
Process Control Manual for Finance
210Volta River AuthorityCONTROLLED DISCLOSURE
Month-end period closing key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner
1. Number of days to report month-end
financial report
5 days Monthly Deputy Chief
Executive, Finance
Director Finance
2. % of reports delivered within x days
after period end
Monthly Director Finance Financial Accounting Manager
3. % of reconciled schedules submitted at
month end
100% Monthly Financial
Accounting Manager
Schedule Supervisors and Officers
4. % of reconciliations validated by
Financial Accounting Manager at
month end
100% Monthly Director Finance Financial Accounting Manager
5. % of closing activities completed per
schedule
100% Monthly Financial
Accounting Manager
Managers and Officers in Charge
6.
Month-end period closing standard reports
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
1. Open-close
reports
This is an exception
based trend report
To identify potential material
misstatements in transactions
To identify needed
adjustments
ERP Monthly Financial Accounting
Manager
2. Financial
statements
This comprises income
statement, statement of
financial position, cash
To provide management
financial information to aid
ERP Monthly Director Finance
Process Control Manual for Finance
211Volta River AuthorityCONTROLLED DISCLOSURE
SN Report Name Brief Description Purpose SourceReport
Frequency
Reviewer
flow statements decision making
Process Control Manual for Finance
212Volta River AuthorityCONTROLLED DISCLOSURE
Month-end period closing process risk and control matrix (RCM)
Key risks:
1 Reporting units may not submit reports on a timely basis
2 Month-end closing targets may not be achieved
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
ory
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Asse
rti
on
Co
ntr
ols
/
Po
ints
of
Fo
cu
s
Ap
pli
ca
ble
Ora
cle
Bu
sin
ess
Pro
ce
ss
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pro
ac
h
(P,D
)
Fre
qu
en
cy
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pro
ce
du
re
Re
fere
nc
e
Co
ntr
ol
Ob
jec
tiv
e
Ow
ne
r
1Month-end
period close
To ensure that
all individual
reporting units
close and
submit their
financial
reporting at the
period end on a
timely basis
F C IS/BS C
Financial Accounting Manager
prepares and distributes a
month end closing schedule.
This includes tasks such as:
activities to be performed,
responsible contact person for
each activity and key submission
dates
At each reporting unit, a
standardised procedure is in
place to ensure appropriate
tasks are performed to analyse,
reconcile and review all key
financial accounts on a timely
basis. This procedure is formally
documented and should include
key tasks, timetables and
contacts/ responsible persons.
R, M P M N/A
Financial
Accounting
Manager
Process Control Manual for Finance
213Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
cess
Co
ntr
ol
Ob
jecti
ve
Co
ntr
ol
Ob
jecti
ve
Ca
teg
ory
(C,F
,O)
Co
ntr
ol
Ob
jecti
ve
Typ
e(C
,A,V
,R)
Fin
an
cia
l
Sta
tem
en
t
Acco
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Ass
erti
on
Co
ntr
ols
/P
oin
ts
of
Fo
cu
s
Ap
pli
ca
ble
Ora
cle
Bu
sin
ess
Pro
cess
To
ols
Tco
de(s
)
Co
ntr
ol
Typ
e
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pro
ach
(P,D
)
Freq
uen
cy
(E,D
,W,M
,Q,A
)
Po
licy
/
Pro
ced
ure
Re
feren
ce
Co
ntr
ol
Ob
jecti
ve
Ow
ner
2Month-end
period close
To ensure sub-
ledgers are
closed after all
necessary
transaction
processing for
the period has
been posted
F C IS/BS C,CO
Managers and Officers in Charge
ensure all outstanding
transactions are validated,
accounted and posted.
Supervisors reconcile sub ledger
postings to general ledger.
Reconciliation of sub ledger and
general ledger are reviewed and
approved by Sectional
Managers, then validated by
Financial Accounting Manager
R, M P M
Financial
Accounting
Manager
3Month-end
period close
To ensure final
accounts are run
using same
financial
information
F, C C,A, V IS/BS C, A, P&D
Final accounts are run and
analysed by heads of operating
units to resolve identified
variances
R, M P M N/A
Financial
Accounting
Manager
4Month-end
period close
To ensure the
achievement of
month-end
closing targets
and
communication
of issues
O N/A N/A N/A
Director Finance critically assess
the achievement of month-end
closing targets; and review the
results and financial position on
a timely basis.
Any significant matters should
be communicated to and
analysed by heads of operating
R, M P M N/A Director Finance
5Month-end
period close
To ensure
controls in place
to trace users
responsible for
posting of
transactions.
F C N/A N/A
All accounting systems provide a
detailed audit trail report of
transactions entered into the
system, including time and date
of change and user id.
R, M P M N/A
Financial
Accounting
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
29. YEAR END PERIOD CLOSING
Process descriptionOverview
This process describes year-end closing activities.
Process Owner
Financial Accounting Manager
Process Objectives
To ensure timely preparation and completion
To ensure sub-ledger to general ledger reconciliations are performed
Process Scope
This process applies to all modules.
Timeframe
Monthly
Segregation of duties matrixActivity / Resources
Prepare schedules for audit
Validate schedules
Review draft audit financialstatements
Perform audit adjustments and runfinal accountsReview audit adjustmentsApprove final audited accounts
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
YEAR END PERIOD CLOSING
end closing activities.
and completion of financial statements for audit
ledger to general ledger reconciliations are performed
Segregation of duties matrixManagers/ Officersin Charge
FinancialAccountingManager
DirectorFinance
IN
RV
RV
RV
214
for audit
Director DeputyChiefExecutive,Finance
Board ofDirectors
RVAP
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Year end period closing process flow chart
1. FAM with external
auditors prepare anddistribute year-endaudit schedule withidentified timelinesand responsibilities
3. DF distributes yearend audit schedule to
Management
2.Managementdiscusses andfinalises year-
end audit
schedule
4. FAM promptsManagement15 days
to year end to
prepare schedules foraudit
5. Managers andOICs prepares
schedules for audit
6. FAM validatesschedules, runs draft
audit financialstatements and
forwards for review
7. DF reviews draftaudit financialstatements and
forwards to externalauditors
8. External
Auditors performexternal audit of
financialstatements
9. DF chairs ameeting with DCE, Fand external auditors
to discuss neededaudit issues and
adjustments
10. FAM performsaudit adjustmentsbased on outcome
of meeting andforwards for
review
12. FAM reruns andissues final draft
audited accounts toexternal auditors,notifying DCE,F
11. DCE, F
reviewsadjustmentsand gives go-ahead to runfinal accounts
Year end period closing process flow chart
13. DCE, Fdiscusses finaldraft auditedaccounts with
Executive Team
14. DCE,F chairs ameeting with Board
sub-financecommittee and
external auditors todiscuss final draftaudited accounts
15. Board sub-finance committee
recommends finaldraft audited
account to BoDfor approval
17. BoD
approves andsigns final
auditedaccounts
End
A
16. Chairman, Sub-Finance Committeepresents final draft
audited account toBoard of Directors
216
Process Control Manual for Finance
217Volta River AuthorityCONTROLLED DISCLOSURE
Year-end period closing activity detail
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
1. Prepare anddistribute draft year-end audit schedule
Financial
Accounting
Manager
Financial Accounting Manager prepares
and distributes year-end audit schedule
with identified roles, responsibilities and
timelines to all Managers in the
Authority
Auto Year-end audit
schedule
2. Discuss and finaliseaudit schedule
Finance
Management
Management discuss and finalise year-
end audit schedule
Manual
3. Distribute final year-end audit schedule
Director
Finance
Director Finance distributes final year-
end audit schedule to Management
Auto
4. Prompt all Managersand Officers inCharge
Financial
Accounting
Manager
Financial Accounting Manager prompts
all Managers and Officers in Charge to
prepare their schedules for audit ( 15
days to December month-end)
Auto
5. Prepare schedulesfor audit
Managers and
Officers in
Charge
Managers and Officers in Charge prepare
schedules for audit
Auto
6. Validate schedules Financial
Accounting
Manager
Financial Accounting Manager validates
schedules, prepares draft audit financial
statements and forwards for review to
Director Finance
Auto Draft audit
financial
statements
START
Process Control Manual for Finance
218Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
7. Review draft auditfinancial statements
Director
Finance
Director Finance reviews draft audit
financial statements and forwards to
external auditors for audit
Auto
8. Perform externalaudit
External
Auditors
External Auditors perform external audit
of financial statements
Manual
9. Discuss auditadjustments
Director
Finance
Director Finance chairs a meeting with
Deputy Chief Executive, Finance and
external auditors to discuss material
audit issues arising and needed
adjustments
Manual
10. Pass auditadjustments
Financial
Accounting
Manager
Financial Accounting Manager passes
audit adjustments where necessary
(based on outcome of meeting) and
forwards to Deputy Chief Executive,
Finance for review
Manual
11. Review auditadjustments
Deputy Chief
Executive,
Finance
Deputy Chief Executive, Finance reviews
adjustments and directs Financial
Accounting Manager to run final draft
audited accounts
Manual
12. Run and issue finaldraft auditedaccounts
Financial
Accounting
Manager
Financial Accounting Manager runs final
draft audited account after adjustments
have been made and issues to External
Auditors
Auto
13. Discuss withExecutives
Deputy Chief
Executive,
Deputy Chief Executive, Finance
discusses final draft audited account with
Manual
Process Control Manual for Finance
219Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks Involved
TransactionType(Manual/Auto)
Output
ControlRef.Point(CRP)
Finance Executive team
14. Discuss with Boardsub-financecommittee
Deputy Chief
Executive,
Finance
Deputy Chief Executive, Finance chairs a
discussion of final draft audited account
with Board sub-finance committee and
external auditors
Manual
15. Recommend draftfinal audited accountto Board of Directors
Board sub-
finance
committee
Board sub-finance committee
recommends final draft audited account
to Board of Directors for approval
Manual
16. Present draft finalaudited account toBoard
Chairman, Sub-
Finance
Committee
Chairman, Sub-Finance Committee
presents final draft audited account to
Board of Directors in the presence of
external auditors
Manual
17. Approve draft finalaudited account
Board of
Directors
Board of Directors approve and sign final
draft audited account
Manual
END
CRP
Process Control Manual for Finance
220Volta River AuthorityCONTROLLED DISCLOSURE
Year-end period closing key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner
1. Timely submission of trial balance for
audit
31 January Yearly Director Finance Financial Accounting Manager
2. Timely preparation of audited financial
statement
31 March Yearly Deputy Chief
Executive, Finance
Director Finance
3. Timely submission of final audited
accounts to stakeholders
30 June Yearly Director Finance Deputy Chief Executive, Finance
4. % of audit queries resolved 100% Yearly Director Finance Financial Accounting Manager
Process Control Manual for Finance
221Volta River AuthorityCONTROLLED DISCLOSURE
Year end period closing process risk and control matrix (RCM)
Key risks:
1 The periodic submissions from reporting units are not complete and accurate
2 The underlying systems from which the financial records are derived may not include all transactions made in the period
3 Year-end closing targets may not be achieved
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
eC
ate
go
ry
(C,F
,O)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e(C
,A,V
,R)
Fin
an
cia
lS
tate
me
nt
Ac
co
un
t/D
isc
los
ur
e
Fin
an
cia
lS
tate
me
nt
As
se
rti
on
Co
ntr
ols
/P
oin
tso
fF
oc
us
Ap
pli
ca
ble
Or
ac
leB
us
ine
ss
Pr
oc
es
sT
oo
lsT
co
de
(s)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y(E
,D,W
,M,Q
,A)
Po
lic
y/
Pr
oc
ed
ur
eR
efe
re
nc
e
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
1
Year- end
period
close
To ensure that all
individual
reporting units
close and submit
their financial
reporting at the
period end on a
timely basis
F C IS/BS C
Financial Accounting Manager with
external auditors prepare year-end audit
schedule. This includes tasks such as:
activities to be performed, responsible
contact person for each activity and key
submission dates.
A finalised audit schedule is
communicated to Management and
Officers in Charge. At each reporting
unit, a standardised procedure is in
place to ensure appropriate tasks are
performed to analyse, reconcile and
review all key financial accounts on a
timely basis. This procedure is formally
documented and includes key tasks,
timetables and contacts/ responsible
persons.
R, M P M N/A
Financial
Accounting
Manager
Process Control Manual for Finance
222Volta River AuthorityCONTROLLED DISCLOSURE
No
.
Su
bp
ro
ce
ss
Co
ntr
ol
Ob
jec
tiv
e
Co
ntr
ol
Ob
jec
tiv
e
Ca
teg
or
y(C
,F,O
)
Co
ntr
ol
Ob
jec
tiv
eT
yp
e
(C,A
,V,R
)
Fin
an
cia
l
Sta
tem
en
t
Ac
co
un
t/
Dis
clo
su
re
Fin
an
cia
l
Sta
tem
en
t
Ass
er
tio
n
Co
ntr
ols
/P
oin
ts
of
Fo
cu
s
Ap
pli
ca
ble
Or
ac
leB
usin
ess
Pr
oc
ess
To
ols
Tc
od
e(s
)
Co
ntr
ol
Ty
pe
(I,S
,M,R
,Mn
)
Co
ntr
ol
Ap
pr
oa
ch
(P,D
)
Fr
eq
ue
nc
y
(E,D
,W,M
,Q,A
)
Po
lic
y/
Pr
oc
ed
ur
e
Re
fer
en
ce
Co
ntr
ol
Ob
jec
tiv
eO
wn
er
2
Year-
end
period
close
To ensure
financial
statements are
run using same
financial
information
F, C C,A, V IS/BS C, A, P&D
Financial Accounting Manager
validates schedules and
prepares draft audit financial
statements which are reviewed
by Director Finance
R, M P M N/A
Financial
Accounting
Manager
3
Year-
end
period
close
Controls to
ensure adequate
approvals are
obtained for
audit
adjustments and
segregation of
duties
F C,A,V IS/BS C, A, P&D
Director Finance chairs a
meeting with Deputy Chief
Executive, Finance and external
auditors to discuss material
audit issues arising and needed
adjustments. Financial
Accounting Manager performs
adjustments based on outcome
of meeting.
Adjustments are reviewed by
Deputy chief Executive,
Finance, to ensure accuracy.
Final audited accounts are run
after adjustments for
discussions with Executive
team. Board of Directors
approve and sign final audited
accounts
R, M P M N/A
Financial
Accounting
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
25. SERVICE DELIVERY
Process descriptionOverview
This process defines activities involved in setting expectations between the Finance Function and its
customers, measuring and tracking the levels of service quality and performance.
Process Owner
Financial Accounting Manager
Process Objectives
To ensure proper elements and commitments are in place to provide consistent service support anddelivery to customers by the Finance Funct
To provide clear reference to service ownership, accountability, roles and/or responsibilities To present a clear, concise and measurable description of service provision to the customer To match perceptions of expected service provision with actual se
Process Scope
This process applies to all Sections and Departments of the Authority that depend on the Finance Function for
service.
Timeframe
Aligned to periodic review agreed between service provider and customer (at least bi
Segregation of duties matrixActivity / Resources
Define and negotiate service level agreement
Approve service level agreement
Review service level agreement for continuousimprovement
Legend
Input
Processing
Review
Approval
Informed
IN
PR
RV
AP
IF
SERVICE DELIVERY
This process defines activities involved in setting expectations between the Finance Function and its
racking the levels of service quality and performance.
To ensure proper elements and commitments are in place to provide consistent service support anddelivery to customers by the Finance FunctionTo provide clear reference to service ownership, accountability, roles and/or responsibilitiesTo present a clear, concise and measurable description of service provision to the customerTo match perceptions of expected service provision with actual service support and delivery.
This process applies to all Sections and Departments of the Authority that depend on the Finance Function for
Aligned to periodic review agreed between service provider and customer (at least bi
Segregation of duties matrixFinancialAccountingManager
CustomerDepartment
Define and negotiate service level agreement INRV
nt for continuous
223
This process defines activities involved in setting expectations between the Finance Function and its
To ensure proper elements and commitments are in place to provide consistent service support and
To provide clear reference to service ownership, accountability, roles and/or responsibilitiesTo present a clear, concise and measurable description of service provision to the customer
rvice support and delivery.
This process applies to all Sections and Departments of the Authority that depend on the Finance Function for
Aligned to periodic review agreed between service provider and customer (at least bi-yearly)
CustomerDepartment
DirectorFinance
RV
AP AP
RV RV
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Service delivery process flow chart
1. FAMclassifies
services intoservice levelcategories
2. FAM &customer rep
establishcustomer
expectations andparameters, forquality service.
3. FAMdocuments adraft service
levelagreement
4. FAM negotiates
draft SLA withCustomer Rep
and forwards forreview
5. DF and Headof Customer’s
Departmentreview and
approve SLA
6. FAM and Head ofCustomer’s
Department monitorperformance against
key performancemeasures
7. Head of CustomerDepartment together
with D F measureactual performance
against standardsagreed
8. FAM
implementscorrective
action plan tomanage
expectations
End
Service delivery process flow chart
expectations and
negotiates
and forwards for
and Head
and Head of
Department monitorperformance against
key performance
Head of CustomerDepartment together
measureactual performance
against standards
A
224
Process Control Manual for Finance
225Volta River AuthorityCONTROLLED DISCLOSURE
Service delivery process activity detail
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
1. Identify service
type
Financial AccountingManager
Financial Accounting Manager classifiesservices into categories that can be coveredwith specific service level agreements
Manual Itemisedservices subcategories
2. Establish servicelevelexpectations
Financial AccountingManager /CustomerRepresentative
Financial Accounting Manager togetherwith customer representative establishescustomer expectations and establishes allrelevant parameters, key performancemeasures and specifications for qualityservice.
Manual Documentedkeyparameters
3. Documentservice levelagreement
Financial AccountingManager
Financial Accounting Manager documents adraft service level agreement
Manual Draft servicelevelagreement
4. Negotiateservice levelagreement
Financial AccountingManager
Financial Accounting Manager negotiatesdraft service level agreement with CustomerRepresentative and forwards to DirectorFinance and Head of Customer’sdepartment for review
Manual Negotiateddraft servicelevelagreements
5. Review andapprove servicelevel agreement
Director Finance andHead of Customer’sDepartment
Director Finance and Head of Customer’sDepartment review and approve servicelevel agreement
Manual Approvedservice levelagreement
6. Monitorperformance
Financial AccountingManager /Head ofCustomer’sDepartment
Financial Accounting Manager and Head ofCustomer’s Department monitorperformance against parameters, keyperformance measures over agreed period.
Manual EvaluationReport
7. Review Head of CustomerDepartment/Director
Head of Customer Department togetherwith Director Finance measure actual
Manual Servicedelivery
START
CRP
Process Control Manual for Finance
226Volta River AuthorityCONTROLLED DISCLOSURE
ActID
Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)
OutputControlRef. Point(CRP)
performance Finance performance delivered against expectationstandards agreed.
evaluationreport
8. Implementcorrective actionplan
Financial AccountingManager
Financial Accounting Manager implementscorrective action plan that may includereview of key performance measures tomanage expectations
Manual
Service delivery key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process
owner
1. % time frame response achievement on service issues
classified as high , medium, low priority
High : 8 Hours
Medium: 48 Hours
Low: 5 days
2. Customer requirements- in -support satisfaction level:
% payment for all support costs at the agreedinterval.
% availability of customer representative(s) whenresolving a service related incident or requests
99%
3. % Frequency of notification to customer for allscheduled service delivery (say maintenance)
% changes to services communicated and
100%
END
Process Control Manual for Finance
227Volta River AuthorityCONTROLLED DISCLOSURE
documented to all stakeholders
4. Overall customer satisfaction % 95%
Service delivery standard reports
SN Report Name Brief Description Purpose Source Report FrequencyReviewer
1. Service delivery
evaluation report
This report compares
actual service delivery
with standards and
expectations set forth in
the service level
agreement
To have an objective assessment
of service delivery and provide
grounds for improvement and
customer satisfaction
Manual At least Bi -Yearly Director Finance
Process Control Manual for Finance
228Volta River AuthorityCONTROLLED DISCLOSURE
Service delivery process risk and control matrix (RCM)
Key Risks:
1 Inadequate provision of service to internal stakeholders leading to risk of non-accomplishment of finctioal and corporate goals
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1 Service level
agreements
To ensure
optimum
provision of
service to internal
stakeholders
O N/A N/A N/A Director Procurement and Head of Customer’s
Department review and approve service level
agreement. Head of Customer
Department together with Director Procurement
measure actual performance delivered against
expectation standards agreed
M P E N/A Category
Manager
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
APPENDIX I APPROVAL HIERARCHYAPPROVAL HIERARCHY
229
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
APPENDIX II OVERVIEW OF JOB ROLESOVERVIEW OF JOB ROLES
230
Process Control Manual for Finance
Volta River AuthorityCONTROLLED DISCLOSURE
Standard DocumentsNo. Term
1. Loan Application Form
2. Request for Mobilisation Funds
3. Request for Advance Form
4. Account Opening Request Form
5. Working Advance Retirement Form6. Bank Account Opening Form
7. Change of Circumstances Request Form
8. Account Closure Request Form9. Manual Wire Request Form
10. Petty Cash Requisition Form11. Account Closure Letter
12. Letter of Compliance
13. Payment Authorisation Letter
14. Transmittal Letter
15. Modification Letter
16. Dunning Letter
17. Letter of Authorisation
18. Master Data Change Request Form
Definition
Completed when making a request for a loan.
equest for Mobilisation Funds Completed by contractor based on payment scheduleagreed.Completed when the line manager identifies a needfor advance.
Account Opening Request Form Completed when requesting to open a new bankaccount.
Working Advance Retirement Form Completed when accounting for advancesCompleted to open a new bank account after theinitial request had been made.
Change of Circumstances Request Form Completed when there is a chandetails originally supplied to the bank.
Account Closure Request Form Completed when an account needs to be closed.Completed when a manual wire transfer is to beinitiated.Completed when petty cash is neededLetter to instruct Bank of which account to closeprovides details of where to transfer remainingfunds.Letter to show that the unit agrees with the Termsand conditions of the loan.Letter to authorise payment to be made.
Transmittal letter provides the recipient with aspecific context in which to place the attacheddocument and also gives the sender a permanentrecord of having sent the material.Letter to instruct the Bank of which account tomodify and what modifications are requiredNotification sent to a customer, stating that thecustomer is overdue in paying an account receivablto the sender.Document authorising Verifiers to visit locations andinspect assets
Master Data Change Request Form Completed when there is the need for changes to bemade to standing data. Information to be completedinclude change description, reason, impactedstaff/departments, and estimated time
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ompleted when making a request for a loan.
ompleted by contractor based on payment schedule
ompleted when the line manager identifies a need
ompleted when requesting to open a new bank
ompleted when accounting for advancesompleted to open a new bank account after the
ompleted when there is a change in any of thedetails originally supplied to the bank.
ompleted when an account needs to be closed.ompleted when a manual wire transfer is to be
ted when petty cash is neededetter to instruct Bank of which account to close and
provides details of where to transfer remaining
Letter to show that the unit agrees with the Terms
e payment to be made.
ransmittal letter provides the recipient with aspecific context in which to place the attacheddocument and also gives the sender a permanent
having sent the material.Bank of which account to
modify and what modifications are requiredotification sent to a customer, stating that the
customer is overdue in paying an account receivable
ocument authorising Verifiers to visit locations and
ompleted when there is the need for changes to bemade to standing data. Information to be completed
change description, reason, impactedstaff/departments, and estimated time