Metrics Standard Internal Control Payment Process - General 1.Segregation of Duties The function of disbursitish or its equivalent must be segregated from the following: receiving, purchasing, invoice processing, AP, GL reconciliation and payee master data setups and changes. 2. Payment Reconciliation All payments and other payment activities must be traceable, uniquely identifiable, and reconciled with GL and bank statements on a monthly basis. 3. Supporting Requests for check, electronic fund transfers, and bank transfers must be supported by Documentation approved Pos, receiving transactions or original invoices. This documentation will be provided to the signers for their review as part of the approved process. 4. Payment Approval Approved payment must be aged and made in accordance with policy or within the agreed upon company and supplier terms. 5.Supplier Discounts All eligible supplier discounts should be taken whenever favorable to the company. 6. Recording in Accounting All payments must be recorded in the period payment was made. Expense must be Records properly and accurately recorded in the accounting period in which the liability was incurred 7. Bearer Checks Checks must not be made payable to cash or bearer. 8. Blank Check Storage Blank checks must be safeguarded from destruction or unauthorized use. The supply of blank checks must be numerically controlled and regularly accounted for as issued voided or unused. Employees that have access to unissued checks must be independent of the check signing and voucher preparation functions. 9. Voided and Cancelled Spoiled, voided and cancelled checks must be altered or voided immediately. These Checks checks must be accounted for and protected. They may be destroyed, provided the destruction is witnessed and documented by an additional individual. 10. Bank Account Limits Specific limits for signing authorities for checks, promissory notes and bank transfers must be established and approved according to an appropriate BOD banking resolution and communicated to the disbursitisy and the appropriate bank(s). 11. Postive Pay Control Checking accounts must be provided with "match pay" controls that permit a preview of checks presented to the bank for payment to ensure that both the payment amount and payee have not been altered. If such controls are not practical, bank accounts must be subject to activity limits and dual signatory control. 12. Signatures The signature of authorized signers must be on file within the company and at the bank 13. Records Management Documents or electronic data supporting expenditures must be safeguarded from loss or destruction and must be in a retrievable format. Such records must be retained and maintained in accordance with the company's policy on records management 14.Check Delivery All checks should be mailed. In those cases where this is not possible, prior arrangements should be made for check delivery or pick up. When the check is picked up in person, proper identification must be provided and delivery of the check must be documented via their signature. 15. Petty Cash Payments made from petty cash must be supported by a receipt and approved y authorized personnel in accordance with their approval limits. In general, the use of petty cash should be avoided and a procurement card or other corporate credit card or credit line should be used. 16. Custody and Security of When check signing equipment and facsimile signature plates or digitized signature Check-Signing Equipment images are utilized, the equipment and the signature plate must be secured and custody of the check-signing equipment and the signature plates or digitized signature image files must be segregated. In addition, a reconciliation should be made of checks written and checks authorized to the check signing machine totals. Risks if Standards are not Implemented