4.

Bank Cash
Standard Control Activities

Financial Statement Assertion

C

A sequentially numbered receipt is

provided to the customer.

Preventive vs.
Detective

s404 (FCT) Programme Office

Test plan

Fraud

Preventive

Preventive

Daily cash receipts are counted

and reconciled to the receipts/log
and banking records.
Access to the safe is restricted to
appropriate individuals.
Cheques received are logged prior
to being passed for processing.

Preventive

Reconciliation is performed to
identify any cash and cheques that
are not processed.

Segregation of duties exists

between the opening of mail and
the processing of receipts. All
payments received in the post are
recorded in a register.

Receipt details are matched to the

remittance advice (i.e. account
being paid).

The debtors control account is

reconciled to the sub-ledger on a

monthly basis and reconciling items
are investigated and resolved.

Approval is obtained for all

payments (with attached payment
requisition supporting
documentation), including manual
cheque payments, in accordance
with documented authority levels
and bank mandates.

Segregation of duties exists

between ordering, payment review,
sign-off and payment processing.

Appropriate independent senior

personnel reviews and signs off
prior to paymnets of detailed listing
of suppliers, invoices and amounts.

New bank accounts are opened

and inactive bank accounts are
closed in accordance with the
appropriate authority levels. The
use of non approved banks
requires approval from the Group
Treasurer/CFO .

Financial Controls Toolkit 2.0

April 2005

Preventive

Preventive

Detective

Preventive

Preventive

Preventive

Preventive

1/5

Company Confidential

4. Bank Cash
Standard Control Activities

Financial Statement Assertion

C

The CFO reviews existing

arrangements for all bank
accounts, update and sign-off the
register on a regular (at least
quarterly) basis.

Ensure that material amendments

to the terms and conditions or
terms and conditions of new nonstandard facilities (i.e. non-standard
bank accounts) are reviewed and
signed-off by the legal department
and Group Treasury prior to
acceptance.

Bank account balances (including

all treasury bank accounts) are
reconciled to the bank statements
and cash book on a monthly basis
at a minimum, with reconciling
items investigated and resolved on
a timely basis.

Preventive vs.
Detective

s404 (FCT) Programme Office

Test plan

Fraud

Preventive

Preventive

Detective

All transactions are reviewed and

signed-off in accordance with the
Designated Authorities tables for
each type of transaction as
contained within the Treasury
policy.

Preventive

All treasury transactions are to be

only conducted with approved
counter parties.

Reconciliations are prepared and

reviewed independently and
signed-off by management and
records including supporting
documentation are obtained.

Business Units only trade in

permitted instruments and within
approved limits.

All traders/dealers are authorised

by the local Board of Directors or
CEO/CFO by resolution or other
formal documentation, and
dealing/trading mandates are kept
up-to-date.

Financial Controls Toolkit 2.0

April 2005

Preventive

Preventive

Preventive

2/5

Company Confidential

4. Bank Cash
Standard Control Activities

Financial Statement Assertion

C

Front office activities (trading:

buying and selling) and back office
(accounting, deal settlement and
cash transactions) treasury
functions are performed by different
teams.

All deals are recorded timely and

accurately into the BU treasury
system/spreadsheets by the front
office.

Settlement is made in accordance

with the deal confirmation
instructions and payment release is
approved by an authorised person.

Financial Controls Toolkit 2.0

April 2005

Deal confirmations from bank are

checked and agreed to deal
information by back office (who are
independent from front office
function).

Deals are reviewed and approved

by an authorised person
independent from deal initiation.

s404 (FCT) Programme Office

Test plan

Fraud

Preventive

Preventive

Preventive vs.
Detective

Detective

Preventive

Preventive

3/5

Company Confidential

4. Bank Cash
Standard Control Activities

Financial Statement Assertion

C

The BU treasury
system/spreadsheets are
reconciled to the general ledger
monthly. Reconciliations are
independently reviewed and
signed-off.

Detective

Detective

Investments items are reconciled to

the third party records periodically.
Any discrepancies are investigated
on a timely basis by back-office
personnel and necessary
adjustments are made in the
general ledger.
A register of all loans is maintained
and reviewed regularly (monthly)
and signed-off to ensure it is up-todate.
Management monitors compliance
with Treasury policies, including
covenants, and take appropriate
actions to deal with exceptions.
Local CFOs should review and
sign-off covenant compliance on a
monthly basis and report to Group
Treasury quarterly.

Financial Controls Toolkit 2.0

April 2005

Preventive vs.
Detective

Fraud

Preventive

Preventive

BU's account for treasury

transactions in accordance with the

Group accounting policy under
direction from Group Finance.

Preventive

The BU treasury
system/spreadsheets are set up to
account for the treasury
transactions correctly and the
related accounts and reviewed
monthly by local BU management.

Detective

s404 (FCT) Programme Office

Test plan

4/5

Company Confidential

4. Bank Cash
Standard Control Activities

Financial Statement Assertion

C

Business Units, submit a Quarterly

Financial Reporting package
including Supplementary
Schedules to Group Finance. It
contains Treasury information
detailing current transactions
(hedges/derivatives/investments/loa
n balances) to enable Group
Treasury to review and complete
the require financial statement
disclosures.

Investments are classified between

a) held to maturity, trading or
available for sale and
b) short-term versus long-term at
each reporting period. These are
reviewed by management
personnel with an understanding of
the nature and purpose of the
investments. Interest rate
disclosures are also included.

Detailed 13 week cashflow

forecasts for each BU are

prepared, and updated on a regular
basis and monitored by
management against actual
cashflows and signed-off by Local
CFO. Forecasts are submitted to
the Cash Reporting Team monthly.

Financial Controls Toolkit 2.0

April 2005

Preventive vs.
Detective

s404 (FCT) Programme Office

Test plan

Fraud

Preventive

Detective

Preventive

5/5

Company Confidential