FINANCIAL MANAGEMENT AND ACCOUNTING PROCEDURES
HIGH LEVEL CONTROLS
VF Services (Mauritius) Pte Ltd
Lagankhel
Lalitpur, Nepal
Name of Reviewer (s)
Surendra Pathak
Review Approved by
Shashi Satyal
Date (s) of Review
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TABLE OF CONTENTS
I. General Accounting System
II. Testing/Observation of records and controls
II.1 Cash Balances and Cash Receipts
II.2 Cash Disbursements
II.3 Payroll
T.R Upadhya & Co VF Services (Mauritius) Pte Ltd
Chartered Accountants High Level Controls
1 January 2017 to 31 December 2017
FINANCIAL MANAGEMENT AND ACCOUNTING PROCEDURES
HIGH LEVEL CONTROLS
Name and Location of Project: VF Services (Mauritius) Pte Ltd
Lagankhel, Lalitpur, Nepal
Number of Employees: 57
Names and Titles of Key Staff: Amit Chuke- Senior Manager-Operations
Madhukar Karki - Senior Manager-Operations
Santosh Tandukar- Deputy Manager- Finance
Sudhir Shrestha- Deputy Manager- Administration
Does each staff person have a job description? Yes
Does the project have written policies, procedures, for?
1) Procurement: Yes
2) Accounting: No
3) Travel: No
4) Personnel: Yes
Are procedures up to date: Yes
What is the Accountant's name?
Santosh Tandukar
What is the Cashier's name?
Sudhir Shrestha and Santosh Tandukar
List all other staff and their duties who participate in the accounting and material control functions.
(Attach list)
I. General Accounting System Yes/No/NA Comments
I.1 Is the Accountant qualified in terms of Yes
education, professional and training
experience?
I.2 Does the Accountant have a clear understand of:
A. Procedures for recording transactions? Yes
2
T.R Upadhya & Co VF Services (Mauritius) Pte Ltd
Chartered Accountants High Level Controls
1 January 2017 to 31 December 2017
B. Approval (s) necessary for expenditures? No Trnsactions are not approved.
C. Reporting requirements to corporate Yes Reported to VFS Global Mumbai on a
office? monthly basis.
I.3 Are accounting procedures in writing?
No
I.4 Are accounting/financial staffing No
changes/turnover high?
I.5 Is a written chart of accounts maintained No
to describe accounts.
I.6 Is the chart of accounts effective in Yes
meeting VFS reporting and record
keeping requirements?
3
T.R Upadhya & Co VF Services (Mauritius) Pte Ltd
Chartered Accountants High Level Controls
1 January 2017 to 31 December 2017
II. Testing/Observing of Project Records
and Controls
A. Cash Balances and Cash Receipts
1. The management authorizes all new Yes
bank accounts.
2. Is a separate interest-bearing bank No
account maintained to receipts?
3. Is a cashbook maintained and up to date? Yes
4. Are cash receipts deposited in the bank No
accounts on a timely manner (within the
next following day of receipt) when
received on a daily basis and recorded in
the cash book?
5. If deposits and a record of deposit are Yes
not made daily, does the frequency of
deposits appear reasonable? If so please
explain the reasons for your conclusion
in the comments section.
6. Do different individuals receive record Yes
and deposit cash receipts?
Bank reconciliation statement Yes
7. Are monthly bank statements reconciled
on a monthly basis?
What is the date of the last Reconciliation 31
December
2017
7.1 Is the reconciliation prepared on a timely Yes Prepared on a monthly basis.
basis? (i.e. within the end of end of each
month)
7.2 Is the person who reconciles the bank No Bank reconciliation is prepared by
accounts different from the person who Santosh Tandukar. Custody of cash-
receives or records cash? main is with Santosh Tandukar.
8 Is the reconciliation statement reviewed Yes Madhukar Karki reviews the bank
and approved by a responsible person reconciliation prepared on a monthly
other than the one preparing it. basis.
9. Are pre-numbered checks used and Yes
controlled?
10. The spoiled checks are canceled and kept Yes Attached in the same check pad.
on file?
11. Are there two signatories on the checks Yes Signatories are Amit Chuke and
Madhukar Karki.
12. Is there adequate security over the cash Yes VFS has an agreement with Group 4
balances held in the office and for transit Securities for safe vehicle to facilitate
to the bank? safe cash-in transit.
4
T.R Upadhya & Co VF Services (Mauritius) Pte Ltd
Chartered Accountants High Level Controls
1 January 2017 to 31 December 2017
II.B Cash Disbursements
1. Is a cash book maintained and up to Yes
date?
2. Is the cash book balanced on a daily Yes <<Refer Cash working>>
basis by the accountant and signed?
3. Does the officer authorize cash payments Yes
a daily basis?
4. Is the cash book summarized by month? Yes
5. Are check books kept in safe place under Yes
lock and key?
6. Do the totals per the cash book agree to Yes
the general ledger book?
7. Are invoices, receipts, and vouchers Yes
maintained for each payment?
8. Are vouchers and supporting receipts Yes
marked paid after the related checks
have been signed and/or cash payment
made?
9. Are payments exceeding a reasonable Yes
amount made by check?
10. After signing, checks are handled and Yes
dispatched only by a person independent
of the payment function?
5
T.R Upadhya & Co VF Services (Mauritius) Pte Ltd
Chartered Accountants High Level Controls
1 January 2017 to 31 December 2017
II.C Petty Cash
1. Is a petty cash imprest system used? No
Give the following information
regarding petty cash
1.1 Amount of imprest fund
1.2 Name and title of petty cashier
1.3 Maximum amount per transaction
that petty cash can be used.
2 Are any other accounting records Yes
accessible to the petty cash clerk?
3 Does the petty cash clerk obtain petty Yes
cash request for each payment made
from the fund?
4 If yes, are the requests and supporting N/A
receipts in ink or some other manner that
would make alterations difficult?
5 Are all requests approved by the project Yes Finance head
Director or designated staff person?
6 Are reimbursement vouchers and Yes
supporting documents stamped or
marked “PAID” at or following
reimbursement?
7 Are petty cash funds and transitions Yes
within the stated maximum?
8 Conduct a physical count of the petty No
cash fund. Note any differences?
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T.R Upadhya & Co VF Services (Mauritius) Pte Ltd
Chartered Accountants High Level Controls
1 January 2017 to 31 December 2017
II.D Payroll
1. Is a payroll register kept? No
2. Does the organization use pay slips to Yes
record salaries?
3. Does each staff person sign the register No Deposited in individual account of staffs
and/or pay slip/receipt for the payment in bank.
of his/her salary?
4. Are salaries paid to individuals by No Deposited in individual account of staffs
check? in bank.
5. If not, is the individual who makes the N/A
payments a cashier or an individual who
does not prepare the payroll?
6. Does the organization use time sheets to N/A
record employee presence?
7. Do employees have signed employee Yes But they were not made available for our
contracts? review. All the personal files were
maintained in HRSS. (India)
8. Are employee details maintained on a Yes
payroll master file which record details
as start date, current salary, and salary
review date?
9. All amendments to payroll master file Yes
must be approved prior to entry.
10. Payroll are approved before payment by Yes
check is made
14. There is segregation of duties as to: N/A HR is outsourced.
Preparation of payroll and approval
of hours worked
Maintenance of records and
preparation of payroll
approval of payroll summary and
paying payroll
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T.R Upadhya & Co VF Services (Mauritius) Pte Ltd
Chartered Accountants High Level Controls
1 January 2017 to 31 December 2017
II.E Property and Equipment
Is a detailed perpetual property record maintained? Does it contain:
A description of the item? Yes
Identification number for each item? Yes
The source of funds used to Yes
purchase the item?
The acquisition date? Yes
Location uses and condition? Yes
Disposition, if applicable? Yes
2. Is inventory of fixed assets taken once a No
year and compared and reconciled to the
general ledger?
3. Is the process of physical count N/A
adequate?
4. Does the entity have procedures to Yes
dispose of fixed assets when they are no
longer serviceable?
5. A person maintains the assets register N/A Fixed Asset Register is extracted
independent of those having physical through SAP.
control of the assets.
6. Depreciation policies, equipment to be Yes
sold or scrapped, and related matters are
tied into long and short-term business
plans.
7. Physical control over fixed assets against Yes
fire, theft, and environment is adequately
maintained.
8. Does the company mark items with No
identification tags?
