6.9 Banking

The NGB's banking policies and procedures should ensure that:

• Only reputable financial institutions are dealt with and relationships are formalised
• Short, medium and long term funds are managed efficiently and effectively
• All bank and cash transactions are authorised and accurately accounted for
  
  (a) A signatory who authorises and approves procurement and other cheque requisitions CANNOT also be the same cheque signature certifying payment for these requisitions.
  (b) Maintain an up to date list of all direct debits for each bank account detailing the:
• Beneficiary
• Amount, frequency and period
• General ledger account to be debited
  
  (a) All direct debit mandates and amendments are authorised by two bank signatories.
  (b) All direct debit mandates must be copied and retained on file.
  (c) Safeguard all unused cheque books, cancelled cheques, cheque book stubs, lodgement books and lodgement stubs.
  (d) Maintain a register of used and cancelled cheques for audit trail purposes.
  (e) It is the Treasurer's responsibility to reconcile all bank statements to the cash book and general ledger every month and resolve all unreconciled items. The Treasurer and another signatory should sign off the monthly bank reconciliations and authorise all adjusting entries.
• Cheque signatories are complete, approved and authorised
  
  (a) Cheque signatories should ensure all details on the purchase requisition form, supporting documentation and authorisation signatures are proper and correct prior to signing the cheque.
  (b) Cheque signatories should never pre-sign blank cheques under any circumstances.
• Foreign currency transactions are accurately recorded
  
  (a) All foreign purchase invoices are converted at the appropriate market foreign exchange rate on the day the invoice is processed in the accounts system.
  (b) Foreign income and expenditure are converted at the appropriate market foreign exchange rate on the day of the receipt or payment
  (c) The foreign exchange difference is posted to the relevant expense or income account attached to the original purchase invoice/remittance to which it relates.

See Appendix 4 for a Template for a Cheque Requisition form, Appendix 9 for Monthly Bank Reconciliation notes and Appendix 5 for Petty Cash notes.