FINANCE QUALITY CONTROL TEAM

As part of an improvement program, Finance department will form Financial Quality Control Teams
(FQCT) to assess internal controls in sister companies and report on exceptions and
recommendations. This is intended to assess risk and help the department in managing these
risks.

The teams are to evaluate the following

1. Occurrence (transaction did occur)

2. Completeness (all existing transactions recorded)
3. Accuracy (transaction is for correct amount)
4. Posting and summarizing (transactions accumulated and transferred)
5. Classification (proper categorization – right account)
6. Timing (dates)

All staffs will be involved in the FQCT.

How will it work?

Staffs will assess the processes in sister companies e.g. FPCL payables clerks will assess the PTL
payable system

Team

The FPCL QC leader is Accountant PTL

The FSHIL QC Team leader is A/Accountant FPCL
The PTL QC team leader is accountant FSHIL
Accountant FPCL will serve as the overall organiser of the QC team.

Timetable

Sample

A sample of between 15 - 30 source documents will be selected for testing.

Timetable

Deliverables

At the end of the review, staffs are expected to forward the following
• Report of exceptions found
• Report of recommended improvements

Review

The report will be reviewed by the Accountant and finally by the GMF.

The time for QC will not take much time due to the low samples required. Staff will benefit with the
experience with the increased knowledge on internal controls. Staff will also form part of the
strategic team within Finance and Company helping the supervisors in making decisions for
improvement – not just reacting and waiting for decisions to be made by others.

FIJI PORTS REVENUE TESTING

GENERAL CARGO

Select 30 invoices from GL and ensure the following:

A Ensure invoice exists (C )

Ensure that the following are correctly charged. (A)
B Port dues (Based on rate per 100 GRT)
C Dockage (Based on Hrs berthed x rate per 100 GRT)
D Tug boat charges agree to cart note hire from the contractors
E Water (Based on $2 per litre (as per meter reading) )
F Pilot fees (Based on $0.10 per GRT plus $370)
G Port charges (wharfage). Based on charges per container as per manifest. 65% is charged
to the vessel owner.
H Lines boat. (agreed to Cart note hire and charges based on $95 per vessel end)
I Environment levy
J Invoice mathematically tested (A)
K Other charges are valid and correctly charged (C, A)
L 35% of wharfage has been charged to the consignees correctly (A)
M Invoice reviewed by senior staff (C, A)
N Agreed to general ledger

CONTAINER CONTROL (REFRIDEGRATED CONTAINERS)

Select 25 invoices and ensured the following:

A Agrees to the Reefer container register to ensure all containers plugged have been charged
B Invoice has been signed off by supervisor evidencing review.
C Correct charges are being charges and do not exceed the maximum allowed in the tariff
rate
D Invoice is mathematically correct and VAT is correctly charged
E Information on order agrees to reefer container register and invoice
F No of days charged agrees to reefer container register
G Invoice agreed to General Ledger.

INLAND FREIGHT SYSTEMS (IFS)

Selected 25 invoices and ensure the following:

A agreed to storage and handling charge form
B Additions tested
C Tariff agreed to Rates agreed by the Board. Note that the rates as per LN60 are no longer
used.
D No. of days in storage agrees sight list (i.e Date cleared - Date brought to IFS))
E Handling charge agreed to new tariff rates provided by Management. Ensure tariff does not
exceed maximum tariffs allowed

HMC CARGO

Selected 20 invoices and ensured the following:

A Invoice details agrees to the Cargo Manifest

B Correct tariff rate used ($60 - 20 ft $120 - 40 ft)
C Agrees to GL

LOCAL WHARF

Select 25 invoices and ensure the following:

A Invoice mathematically correct

B Officer in charge has certified as correct the invoice by signing on the invoice.
C Time agrees to daily operations file.
D Correct tariffs has been charged
PORTS TERMINAL LIMITED REVENUE TESTING
EQUIPMENT HIRE

Select 30 invoices and ensure the following:

A Invoice matched to customer order

B Correct tariff rate used
C Invoice mathematically correct
D Invoice agreed to GL

TORS INCOME

Select 30 TORS income invoices and ensure the following:

A Invoice mathematically tested

B Units of cargo agreed to agent list and PTL timekeepers list/cargo manifest
C Rates used agrees to agreement with agent.
D Supervisor signature as evidence of check
E Agreed to GL
F Labour charges agree to labour summary from the Stevedoring dept.
G Equipment charged agree to equipment usage advice from the Transport department
H Gear charges agree to invoice from the Gear department
I Statement mathematically correct and profit/loss has been correctly calculated.
J Deposit matched to receipt. Determine whether deposit is sufficient according to company
requirements.
EXPENSES TESTING (FOR ALL COMPANIES)
Operational Expenditure

Selecte 30 payments from GL and:

1. ensure that for payments except for utilities and contractors, purchase order and purchase
requisition were duly filled by authorised personnel
2. ensured that three quotations were sought for all purchases over $500.
3. ensure that purchases orders are raised before invoices are received
4. for payments made ensured reconciliation was performed;
5. ensured for all payments made, personnel receiving the goods had signed off
6. check payment was matched against the correct vendor;
7. ensured VAT was correctly calculated and accounted for invoices which were not
supported by purchase orders as for purchase order the VAT portion was preset;
8. ensure the invoice is matched against the correct purchase order;
9. ensure that the payment was approved by the authorised signatories
10. ensure all necessary supporting are attached.

Capital Expenditure

Select 20 additions and:

1. Ensure that for all capital expenditure a requisition and a capital expenditure form is filled.
2. Ensure all requisitions are approved by the respective department heads.
3. Ensure all capital expenditure forms are approved by the relebvant GM and the General
manager - Finance.
4. Ensure 3 quotations are obtained before purchasing any item worth $500 or more.
5. Ensure all additions are supported by the relevant documents.
6. Ensure the additions are capital in nature.
7. Ensure additions are recorded in the correct period.
8. Ensure that additions which are not budgeted for and per-approved by the Board, are
approved by the Board.
9. Ensure purchase order is matched against the correct invoice.
10. Ensure that VAT was correctly accounted for.