Internal Control Policies

Corporation

 Administrative Function – The Administrative Manager is responsible for managing the

overall business operations. He/she is in charge of the department’s day-to-day functions
as well as supervising and supporting staff. Moreover, such manager works full-time in
the business.

 Human Resource - The HR Manager is responsible for managing job recruitment,

selection, and promotion. He/she is also in charge of developing and overseeing
employee benefits and wellness programs; and developing, promoting, and enforcing
personnel policies and conducting job training. Moreover he/she monitors the functions
of the employees in the operations.

 Marketing - The Marketing Head is responsible for creating promotional information to

drive business. Specifically, he/she is in charge of managing budgets for marketing
campaigns, testing new marketing opportunities, building relationships with media
outlets and directing social media strategies.
He/she also addresses customer service problems. Moreover, he/she is in control of
coming up with new ways to promote new products.

 Production - The Production Manager ensures that health and safety guidelines are followed
specifically the “safe service” in the kitchen which includes the wearing of proper attire
(apron, hairnet and gloves) of the cooks. He/she will also monitor the production
processes in the kitchen, maintaining product standards and implementing quality control.

Physical Store
a. Cash

The cashier will be responsible for the safety of the cash. At the start of the daily
operation, a safety box will be provided to the employees in the physical store as well as a
beginning cash balance for the change fund; such balance will be retained/replenished from
 the ending balance every start of the day. The cashier will remit the money daily to the
appropriate manager. Moreover, the daily sales should be recorded in the logbook based on
the corporation’s existing bookkeeping arrangement and the sales is also to be accounted on
the cash register where cash remittances and sales reports are based.

b. Inventory and Purchases

Physical count of inventories should be done on a daily basis. Every stock out should be
recorded in the log book, preferably by the cook. And any purchases should be authorized by
the designated manager. The ordering of goods should be made by such manager or by
his/her assistant or any employee assigned by him/her. Moreover, every purchase must be
accounted for as stock in on the log book.

c. Kitchen Utensils, Furniture and Equipment

Proper monitoring should be done in kitchen utensils, furniture and equipment. There
should be a monthly physical count which will be supervised by the manager.

d. Time-keeping of Employees
Time sheet form will be provided every 15 days. Time in and out will conform to the
existing standards of the corporation and which are formed to suit the nature of the business.

e. Safety Precautions

The safety of the customers and employees will be ensured through the implementation of
cleanliness and safety policies in preparing and serving the orders which includes the “safe
service” in the kitchen which is the wearing of proper attire (apron, hairnet and gloves) of the
cooks and other policies such as employees hand-washing before and after handling any food
and kitchen equipment.
Legal Requirements
The table below shows legal requirements necessary for the establishment and legitimacy
of the business.

1. Registration with SEC

 If available, register/reserve business name at SEC Name Verification Unit – SEC
Office.
 Prepare and sign the following:
i. Articles of Incorporation;
ii. By Laws
iii. Treasurer’s Affidavit; and
iv. Joint affidavit of two incorporators undertaking to change corporatename
immediately upon receipt of notice or directive from theSecurities and
Exchange Commission that another corporation,partnership, or person has
acquired a prior right to the use of thatname or that name has been
declared misleading, deceptive, confusingly like a registered name, or
contrary to public moralsgood customs or public policy.
(Not required if the Articles of Incorporation have a provision on this
commitment).
v. Submit notarized documents to SEC Office
vi. Claim SEC Certificate of Registration

2. Business Permit
All businesses are required to secure a mayor’s permit or business permit from the
local government of the city or municipality where the business is located. Different
cities and municipalities have different registration procedures and requirements. The
following are the general requirements:
a. Mayor’s Permit
b. Sanitary Permit
c. Sanitary Inspection Fee
d. Health Certificate Fee
 e. Garbage Fee
f. Certificate Fee
g. Business Sticker
h. Business Permit Registration Plate
i. Initial Business Permit Fee
j. Other Tax on Business
k. Barangay Clearance

3. Acquiring Barangay Clearance

a. Go to the barangay where the business is located to secure and fill-up application
form.
b. Submit completed application form together with the following:
i. Certificate of Business Registration from SEC
ii. Two (2) valid IDs
iii. Proof of Address such as Contract of Lease (if rented) or Certificate of
Land Title (if owned)

4. Registration with Bureau of Internal Revenue

All businesses have to register with the BIR before the commencement of
operation for taxation purposes. The following are the requirements:
 BIR Form 1903 – Application for Registration (For Partnership/Corporation)
 Certificate of Registration form SEC
 Barangay Clearance
 Business Permit From the Mayor’s Office
 Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title
(if owned)
 Valid IDs
Pay the Registration Form (BIR Form 0605) and Documentary Stamp Tax (BIR
Form 2000) and register book of accounts and receipts/invoices. Claim the Certificate of
Registration (BIR Form 2303)
5. Register with SSS, PhilHealth, and Home Development Mutual Fund (Pag-IBIG Fund).