WORK SINTRUCTION 3: FINANCIAL MANAGEMENT

AUSTRALIAN ULTIMATE TRAINING COLLEGE PTY LTD

Suite 201, 11 Spring Street, Chatswood NSW 2067

Policy and Procedures Manual

Work Instruction 3

Financial Management

1 Version Date: 12/04/2016

WORK SINTRUCTION 3: FINANCIAL MANAGEMENT

TABLE OF CONTENTS

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WORK SINTRUCTION 3: FINANCIAL MANAGEMENT

FINANCIAL MANAGEMENT POLICY

Australian Ultimate Training College Pty Ltd

implements financial management policies that ensure
finances are handled in a manner consistent with
current industry accounting standards. All transactions
will have a trail of accountability.

Australian Ultimate Training College Pty Ltd will

ensure that staff receive appropriate professional
development and updates on financial management
policy, procedures and reporting including income
recognition procedures, debt management, methods of
costing services and cost recovery and payroll.

1. SCOPE
1.1 Australian Ultimate Training College Pty Ltd.’s financial management policy
addresses:
 Accounts receivable including fees management
 Receipting
 Banking
 Accounts payable including fees refund
 Management reporting

2. PURPOSE
2.1 This procedure describes how Australian Ultimate Training College Pty Ltd meets the
requirements of the Standards for Registered Training Organisations (RTOs) 2015
(the Standards). The procedure promotes excellence in training and seeks to provide
industry with cost-effective training and assessment solutions. Australian Ultimate
Training College Pty Ltd will:
(a) adopt sound business processes to meet the operating expenses and ensure
proper monitoring
(b) have a positive cash flow
(c) monitor compliance against the agreed business plan targets
(d) measure profitability of training operations
(e) identify and develop sustainable revenue streams
(f) oversee long range planning for growing revenue
(g) represent a sound financial position to the community, government and industry.

2.2 At all times risk is balanced with return. We protect the assets of the organisation and
do not compromise on safety issues.

3. RESPONSIBILITIES
3.1 The Director is informed on all aspects of the financial status of Australian Ultimate
Training College Pty Ltd. The Director will ensure thorough and appropriate systems
are in place.

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3.2 The responsibility for fraud control is part of the Director portfolio of Risk
management: Finance and Audit.

3.3 The Director implements an internal and external audit by independent accountants
for all financial systems and controls each fiscal year.

3.4 An accountant’s undertaking (Form 04) is completed and may be submitted to ASQA
to confirm the accounting requirements.

3.5 To reduce risk associated with fraud, a purchase order is completed and approved by
the Director prior to all expenditure or investments.

3.6 The Director has the responsibility for day-to-day financial activities as:
(a) responsibility and authority for financial management
(b) reporting on financial activity on a monthly basis
(c) providing financial reports to external bodies
(d) organising an annual audit of accounts, and when requested by the state
regulatory authority, obtaining and making available a full audit report from an
independent certified or chartered accountant
(e) organising the certification of the annual financial accounts by an independent
certified or chartered accountant
(f) review of financial control mechanisms and other procedures to ensure
efficient control of the business’ financial affairs on an annual basis
(g) establishing and reviewing policies annually that comply with the financial
requirements for RTOs under the Standards, funding bodies and other
relevant legislation.

4. PLANNING
4.1 A business plan is created each financial year in June to define the scope of works to
be undertaken for the next 12 months.

5. BUDGETING

5.1 The management team, in accordance with the business plan’s provisions and
targets, prepares an annual budget. The budget is formally created to ensure that the
assumptions made are reflected in quarterly reports.

5.2 The budget lists the following:

(a) Income streams
(b) Fixed costs
(c) Variable costs
(i) Wages
(ii) Operating expenses
(iii) Standards and premium discount scheme compliance.

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6. INSURANCES
6.1 The following insurance policies are maintained as current:
a) Public liability to at least AU$5,000,000
b) Workers compensation as prescribed by the Workers Compensation Act.

6.2 The Director retains original insurance policy documents.

7. MANAGEMENT OF FINANCIAL ACCOUNTS

7.1 Australian Ultimate Training College Pty Ltd uses MYOB to manage and record the
company’s financial activities.

7.2 Australian Ultimate Training College Pty Ltd operates a number of accounts, of which
one is a general account and another is a deposit account for fees and other revenue
paid in advance.

7.3 Under no circumstances are members of staff permitted to purchase personal goods
and services using company accounts. Company accounts include but are not limited
to company operating accounts, accounts with suppliers and company credit cards.

7.4 Cheques require 1 signature – that of the Director or any other authorised signatory.
The following is an additional authorised signatory:
 Administration Manager.

7.5 Electronic transfer required 1 password to effect – that of the Director.

7.6 The Director ensures that the accounts are certified at least annually by a qualified
accountant who has completed the Accountant’s Undertaking Form (Form 4).

7.7 If requested by ASQA, Australian Ultimate Training College Pty Ltd will obtain and
make available a full audit report by a qualified financial auditor.

8. PURCHASING

8.1 All purchases require a written purchase order approved by the Director.

8.2 All goods are inspected on delivery prior to acceptance.

8.3 Signed delivery dockets and /or supplier invoice statements are forwarded to the
Director for payment.

8.4 The Director reconciles supplier delivery dockets with invoice statements and
purchase order numbers prior to payment.

8.5 The Director reconciles supplier delivery dockets with invoice statements and
purchase order numbers prior to payment.

8.6 Payment is approved by the Director and made before the due date.

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8.7 All capital purchases of over $300 will be listed on the Assets Register (Form 22)
held by the accountant.

9. INVOICING

9.1 Australian Ultimate Training College Pty Ltd will only claim course fees to which the
organisation is entitled.

9.2 Invoices are produced for all sales of goods and services and clearly marked ‘Tax
Invoice’, noting course number and name.
9.3 Companies with invoices not remitted by the due date will receive a reminder to pay
notice with revised terms of payment forwarded to the Director.

9.4 Companies with reminder to pay notices not remitted by the due date will receive a
phone call from the Director within 24 hours to secure payment.

9.5 All invoices are securely stored in a locked filing cabinet and in the archive room.

10. PAYROLL
10.1 Wages and salaries are paid each fortnight and staff are required to complete
timesheets. Weekly payroll cannot be processed where timesheets are not supplied
to the Administration Manager.

10.2 Staff requiring the use of leave entitlements must submit a Request for Leave Form
(Form 29) with timesheets.

10.3 The Administration Manager is responsible for printing and distributing pay advice
slips.

11. SUBCONTRACTING FOR TRAINING SERVICES

11.1 Australian Ultimate Training College Pty Ltd has a formal employment agreement
(Form 15) for subcontractors providing services for Australian Ultimate Training
College Pty Ltd. This agreement specifies how all parties to the agreement will
discharge their responsibilities for ensuring the quality of the training and/or
assessment conducted under the agreement.

11.2 A file of all agreements is maintained and listed on the Register of Contracts (Form
24). Its location is described in the Control of Records section of this Policies and
Procedures Manual.

11.3 The status of subcontractors is reviewed at least annually. Any contractor may be
terminated in the best interests of Australian Ultimate Training College Pty Ltd. Every
effort will be made to reach consensus to avoid termination of the contract. Before
any contract is terminated, a written legal opinion confirming the appropriateness of
the action will be obtained.

11.4 All subcontractors must provide their own worker’s compensation, professional
indemnity and public liability insurance to values stated in clause 6.1 and provide a
validated copy of certificate of currency for each.

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12. MANAGEMENT REPORTING

12.1 Each quarter, the Administration Manager will review:

 Company goals and objectives
 Annual budget profit and loss
 Actual year to date profit and loss
 Variance from budget year to date profit and loss
 Reasons for budget variance
 Reviewed expected annual result
 Target ratios and quantifiable goals
 Actual ratios and measurement against goals
 Reasons for not achieving desired outcomes

12.2 Any anomalies identified by the Administration Manager will be reported to the
Director within 5 days.

13. PREPAYMENT OF FEES

13.1 Fees may be paid as a single fee payment or using a payment schedule
independently negotiated with the Administration Manager, subject to the constraints
of the Standards.

13.2 Where fees are paid in advance, the company will pay the monies received into a
separate account.

13.3 Fees may be moved to the operating account only once the student has commenced
studies.

14. FEES PAYMENT SCHEDULE

14.1 A non-refundable enrolment application fee (course deposit) may be charged for all
students.

14.2 An invoice is issued detailing:

(a) The full course fee
(b) Payment schedule.

14.3 Course fees do not cover the cost of accommodation, living expenses, equipment
and external examinations.

14.4 Students are required to pay the remaining course fees prior to the conclusion of
their course. Late payments may attract a fee. No student will be issued a certificate
or statement of attainment where there are outstanding fees.

15. FEES CHARGED AND PROTECTED

15.1 Australian Ultimate Training College Pty Ltd will receive fees in advance of providing
services in accordance with the supplied course fees payment schedule. Such fees
will be maintained in a separate bank account until the student starts the course.

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15.2 Students may utilise the fee payment scheme as assessed on an individual basis.

15.3 All training service fees charges by Australian Ultimate Training College Pty Ltd as
an RTO are GST free. However, subcontractors will charge Australian Ultimate
Training College Pty Ltd GST for training services.
Note that other parts of the company’s services attract a full GST charge.

16. FEE REFUNDS

16.1 The request for refund is made in writing to the Administration Manager using the fee
refund application form, which is available from the website or on request from the
Administration Manager.

16.2 The Director is the person responsible for approval of fee refund applications.
16.3 All refunds are returned to source of payment with accompanying letter explaining
how the refund was calculated.

16.4 The course deposit fee is non-refundable under any circumstances.

16.5 Course cancellation after acceptance by Australian Ultimate Training College Pty Ltd
may occur up to 7 days prior to commencement of the course without penalty. To
receive the full refund, notice of 7 days or more must be made in writing, by email or
by fax.

16.6 Course cancellation requests less than 7 days prior to course commencement will
attract a fee of 20% of the total course fees. Student’s resource materials may be
returned in the same condition as received and 90% of the student resource fee
will be refunded. The student is responsible for the cost of shipment.

16.7 A student who withdraws after the course commencement owing to unforeseen or
exceptional circumstances can apply for a fee refund. If granted, fees will be
refunded on a pro-rata basis (based on the number of days remaining in the course)
less 20% of the total course cost.

16.8 Fee refund applications are considered on a case-by-case basis.

16.9 Students may transfer on 1 occasion to a course commencing within 3 months of

their original course without penalty.

16.10 Refunds following cancellation of a transferred course will attract a further penalty of
20% of the total course fees in addition to the refund guidelines outlined above.

16.11 Australian Ultimate Training College Pty Ltd defaults if a course does not commence
on the designated day or is actually cancelled. No student will be disadvantaged and
a full refund of all course fees will be made if alternative arrangements are made so
that the commencement date is more than 14 days from the original commencement
date.

16.12 Fee refunds will be made 7 days after demand when Australian Ultimate Training
College Pty Ltd defaults and within 7 days after demand when the student defaults.

16.13 Australian Ultimate Training College Pty Ltd dispute resolution processes do not limit
the student’s right to pursue other legal remedies.

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16.14 This agreement does not remove the right of either party to take further action under
Australia’s consumer protection laws for unpaid and overdue fees.

16.15 The refund policy is subject to review from time to time.

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