FINANCIAL POLICY

Introduction

The aim of this policy is

a. To establish clear, transparent and concise accounting policies for the union
b. To ensure accountability and efficiency in the financial system

Any item that is not provided for within this policy require the approval of NOB's/ NEC.
All emergency and non-budgeted financial expenditure must be approved by the national office bearers, and must be listed in full detail and presented at the following NEC meeting for endorsement.

The monetary value of any specified amounts will be reviewed at the beginning of each financial year by the CEC on proposals made by the FINCOM.

1. BREAK DOWN OF SUBSCRIPTIONS

· Cosatu affiliation fees R1.00
· Communication International affiliation fees R0.16
· Funeral policy premium R7.00
· Industrial action fund R0.50
· Membership R17.34

2. LOST WAGES (with the exception of industrial action)

· Lost wages shall only be paid out to office bearers who have lost their remuneration package or part thereof, whilst attending meetings on behalf of CWU.

· All claims for lost wages must be submitted with proof of time lost e.g. salary advice and correspondence in the form of an official letter/ fax from the company

· All lost wages must be approved by the General Secretary and/ or either the Provincial Secretary or Provincial Treasurer by means of a written memo or fax.

· All claims that does not fall within the above policy shall be held for consideration by the following NOB meeting.

3. OFFICE STATIONARY

· All stationery shall be controlled by Head Office

· Stationery requisitions will be complete and filed by the Head Office administrator for use in budget control/ monitoring and allocation of department expenditure

· All stocks of stationery must be checked immediately and any shortfall in the expenditure

· All stationery orders will be placed by the Head Office administrator telephonically or by fax and recorded in the stationery order book

· Provinces must submit stationery orders to Head Office by the 15th of each month for the next month

4. ACCOMMODATION

Accommodation expenses for the account of CWU must be pre-authorised by either the POB's or NOB's whichever is applicable.

The only hotels that may be used for CWU accommodation are those hotels where CWU has negotiated a special rate by the accounts department through written agreements with the hotel and for which an account has been officially opened and restrictions placed on the facilities usable and chargeable to the union's account.
Such arrangements will be made by the NOB's. The opening of accounts must be approved by the NOB's and only at hotels charging 3 star rates. Accommodation expenses will be restricted to:

· Bed and breakfast at the negotiated rate

· Evening meals at the negotiated rate where applicable

· Where delegates do not have their meals at the hotel or conference centre, an allowance equal to the negotiated rate will be paid to these delegates. In the event that a delegate claim this allowance and have meals at the hotel or conference centre, the delegate will repay CWU such amounts over claimed.

· Laundry payments will only be covered by CWU when delegates stay longer than 4 days

· Where no meals have been arranged, the union shall pay delegates an allowance of R100.00 per day including telephone calls and other expenses.

· Any person booking into a hotel without following the above procedure will be held fully responsible and accountable for the immediate repayment of all charges.
Any exception to these arrangements must be approved by the NOB's.

5. TRAVEL ALLOWANCE

Note: Advance notice of at least 3 working days must be given to the accounts
department in order for travel allowance cheques to be prepared, approved and signed.

5.1. FOREIGN TRIPS

For trips in Africa where a per diem is not provided for by the hosts, a CWU allowance shall be issued to each delegate. This allowance shall be calculated on the basis of 150 US Dollars per week.

In the case where delegates on a foreign trip, other than in Africa do not get a per diem from hosts, the union shall pay a sum of 250 US Dollars a week per delegate

In both the above cases a week constitute seven days. If the period constitute a full week, the allowance will be pro-rated.

5.2. MOTOR VEHICLE ALLOWANCE (MVA)

· National and provincial office bearers shall approve the usage of private vehicles for union matters after having considered all possible and economic means of travelling. Where members opt to use their private vehicles the union will only be liable for payment equal to that of the arranged means of travelling.

· MVA claims shall be paid on the basis of kilometres travelled.

· All claims to be submitted within one month after the period of travelling

· For provincial travelling the POB's shall approve the claims

· For national travelling the NOB's shall approve the claims

· Where comrades travel from the same area to a meeting, one vehicle should be used for transportation.

5.3. BUS/ TRAIN/ TAXI TRIPS

· When claiming a refund for the use of a taxi/ bus/ train trip it will only be paid by the accounts department on the presentation of receipts and the completion of a proper claim form detailing reasons for travelling.

· Where no receipt is produced, POB's/ NOB's may at their discretion approve the claim on sufficiently acceptable motivation being provided by the comrade in writing.

6. CAR HIRE

· No cars must be hired for members of staff who owns CWU cars except under extraordinary circumstances

· Cars will only be hired if approved by the NOB's

· Generally A class cars shall be hired but on merit the NOB's may authorise a different class of car. All cars hired will be returned at the agreed date and time. Only in exceptional cases extension may be considered

The following insurance are applicable to hired cars and must be taken when a vehicle is hired. Collision Damage Waiver (CDW), Theft Loss Waiver (TLW) and Personal Accident Insurance (PAI). Under no circumstances should the insurance be waived. Where possible super insurance (no excess payable) should be taken out. Failure to take out the necessary insurance will result in the driver being responsible for all costs arising out of any event that may have been covered by these insurance's. In the event of an accident where an excess payment is applicable NOB's/ NEC may, based on the circumstances decide to pay this partly or fully.

7. TOLL FEES/ PARKING FEES

· Toll fees/ parking fees will be paid on the submission of receipts and written detail of reason for travelling

8. AIR TRAVEL

· All tickets for the costs of CWU are to be booked through the national accounts division or NOB's

· A travel agent may be used if approved by the accounts department

· Air tickets must be arranged in time to be delivered by the agents to the Head Office or provincial office concerned, or collected from the travel agency where possible.

· Passengers booked on flights must ensure that they arrive at least one hour prior to departure of domestic flights and two hours before the departure of international flights

· Should a traveller miss their flights and require a rebooking for a new flight, the individual shall be held responsible for the costs incurred and will have to refund the union. If a verifiable reason for such an occurrence is submitted, the billing of the individual shall be reconsidered. Each case shall be treated on merit.

· Provinces are to take responsibility for co-ordinating travel arrangements for travellers connecting between provinces/ cities and airports.

9. CLAIMS

· Claims will only be paid out when a claim has been submitted with the necessary supporting documents within one month after the event.

10. REFUNDS

· Refunds will only be paid if receipts are attached to claim forms.

11. RELIEF/ GRANTS

· No relief/ grants may be paid out of provincial accounts as all such requests shall be paid from the national account. All referrals must be submitted to the NOB's in writing and must be signed by at least two provincial/ national office bearers.

12. CONSULTANCY FEES (Including legal consultants)

· External consultation for the cost of CWU may only take place after written submission has been obtained from the NOB's.

13. TELECONFERENCES

· Any teleconference that are arranged may not exceed one hour for POB/ ROB meetings and two hours for NOB meetings.

· These units must be strictly adhered to. All teleconferences must be cleared with the NOB's.

14. CELLPHONES

The following office bearers qualify for cell phones in terms of this policy:
All NOB's, National sector co-ordinators, national department heads, national financial administrator, provincial chairpersons, provincial secretaries or as determined by the NEC.

14.1. Union Cell Phones

· The maximum subsidy on the cell phone should not exceed R600.00 per month for calls. The maximum limits exclude rental, subscriptions and service calls.

· All cell phone users should be given monthly statements

· Where a comrade owes the union money due to exceeding the above amounts, this must be repaid to the union within 30 days of this being made known to the comrade.

· Failure by an individual to repay the excess amount to the union within the specified 30 days will result in the cell phone being removed from and disciplinary action being taken against the comrade.

14.2. Private Cell Phones

· Individuals who use private cell phones but qualifies for organisational cell phones will be subsidised at a maximum of R750.00 per month. All statements must be produced. Where the total cost in a specific month was lower than the maximum, the actual amount will be refunded. Cell phones being provided by Telkom, Sapo, etc. Which are fully covered by the company will not be subsidised at all.

15. OFFICE FURNITURE AND EQUIPMENT PURCHASE

· All requisitions for purchase of office furniture and equipment are to be channelled through the accounts department to NOB's.

· Full motivation (i.e. reasons for such purchase) is to be included as part of the requisition to be considered by the NOB's.

· No office furniture and equipment is to be purchased without NOB's approval. All office furniture and equipment purchase will be subjected to the budget and availability of funds.

16. PURCHASE AND SALES OF PROMOTIONAL ITEMS (including T-shirts, caps, etc.)

· Promotional items should be dealt with in terms of the Procurement Policy (Annexure A) of the union.

17. PETTY CASH

· The amount shall be allocated on the basis of an initial amount of R500-00 for provinces and R1500-00 for Head Office where after it will be paid on a top up basis on the production of the necessary supporting documentation and proof of expenditure.

· The relevant person appointed at National or provincial level will take full responsibility and accountability and for the monitoring and accounting of petty cash.

· Petty cash must be used for: postage, housekeeping items for the office maintenance costs and small but urgent claims (approved in the normal way) not exceeding R25

· Any other item not listed above must be approved by Provincial Treasurer and National Treasurer for provinces and Head Office respectively.

18. CREDITORS

· All creditors are to be paid per agreement with suppliers

· All accounts are to be opened formally in writing by the accounts department (not by any other department) after approval by NOB's

· Any restrictions required on the account will be detailed in writing to the creditor by the accounts departments.

19. LEASE AGREEMENTS

· All lease agreements must be authorised by the national office bearers before signature

· POB's to sign after verification and authorisation by NOB's

· The same applies to negotiations over renewals and extensions.

20. DEPARTMENTAL AND PROVINCIAL BUDGETARY CONTROL AND ACCOUNTABILITY

Note: The following policy applies where appropriate to departments as well as
provinces

All provincial office bearers are directly accountable to the NOB/ NEC in so far as;

1. POB's must ensure that provincial expenditure does not exceed the approved budget

2. Any extra ordinary/ non-budgeted expenditure must be submitted in writing to the NOB through the Head Office accounts department

3. All expenditure incurred should be fully accounted for as per the finance procedures including providing all the necessary supporting documentation

4. The financial records of each month to be submitted to the national accounts department must include the following:

(a) Detailed statement of income and expenses
(b) Photocopy of relevant cash book pages
(c) Bank reconciliation statements
(d) Cheque requisition forms and related vouchers in cheque number sequence
(e) Bank statement and processed cheques for appropriate month
(f) Petty cash analysis statement
(g) Photocopy of the petty cash book page
(h) Petty cash vouchers in numerical sequences
(i) Cash flow statement for the ensuing month

All financial statements must reach Head Office no later than the 15th of the month following the statement period. Financial statements will not be accepted unless approved and signed by the provincial chairperson, treasurer or department head.

All provincial statements must be submitted to the PEC for approval.

Should a financial statement be rejected at PEC level and not rectified, the matter shall immediately be referred to the NOB for consideration.

The monthly allocation paid to each province, will not under any circumstances exceed the amount budgeted for.

Where moneys expanded by a province/ department is not properly accounted for in terms of this policy, no further allocations will be made until this has been rectified.

21. CAR SCHEME

21.1. Aims

1. To provide access to transport which enables union em0ployees and full time shopstewards of the union to cost effectively and efficiently perform their duties.

2. To provide a comprehensive car scheme

21.2 Application

1. The CWU car scheme applies only to union employees and full time shopstewards of the union.

2. Vehicles will be purchased by the union employee/ FTSS and only vehicles bought at a recognised car dealer will qualify under this policy

3. Full time shopstewards using union vehicles whilst performing company work must claim from the company on the standard rate of the company and the amounts must be paid directly into the National Account.

4. CWU will negotiate and pay the deposit on the vehicle limited to a maximum of R10 000. Deposit are paid directly to the car dealer.

5. Thirty percent (30%) of the monthly payments (including maintenance contracts) of the car will be paid by the union employee/ FTSS and the other 70% (limited to R1800) by the union.

6. For full time shopstewards who already own cars and are currently paying instalments the 30% - 70% principle will apply as in clause 5 above.

7. The cost of comprehensive car insurance shall be borne 50% by the union and 50% by the owner

8. In the event of an accident whilst on union business, the extent of the negligence of the union employee/ FTSS concerned will be assessed. If it appears that the employee/ FTSS was negligent, he/ she will be required to pay up to 100% of all related costs not borne by the insurance company. In other cases the union will bear 50% of the excess costs. The NEC/ NOB will have to make this assessment.

9. If the car has to be written off or stolen, the deposit on the purchasing of a replacement car by the union employee/ FTSS will be subject to approval by the NOB/ NEC

It is highly recommended that union employees and full time shopstewards have an insurance such as TOP-UP before the use of the car scheme, and the copy of such an insurance be handed to Head Office so that the costs of an accident (clause 6) and that of a written off or stolen car (clause7)be paid off by the insurance company with no extra costs for the comrade or the union.

10. All union employees and full time shopstewards must have a valid drivers licence before entitlement to use this scheme. A copy of the licence must be filed at CWU Head Office.

11. Union employees or full time shopstewards who partake in this scheme will be paid a travelling allowance of R500 per month to cover official trips. After exceeding 2000km of travelling per month, petrol money shall be paid by the union on the basis of R25 per 100km or pro rata. FTSS and union employees must fill in the necessary claim forms for refunding of petrol money.

12. To qualify for the scheme, the incumbent must:

· Be three months or more with the union

· Have completed the probation period where applicable

· Be in full time employ of the union

· Be a full time shopstewards

13. CWU may put conditions on the type of car, union employee/ FTSS may buy to qualify for this car scheme

14. Union employees who bought or who were bought cars under the pervious scheme will continue to qualify for this benefit in terms of that scheme on the existing cars. Should however for whatever reason this car need to be replaced, the new car must be purchased under the conditions applicable to the scheme as captured in this document.

22. TRAFFIC FINES

Under no circumstances will any traffic fines be paid by the union. Any summons received by CWU shall immediately be referred back to the relevant traffic authority with the name and address of the driver responsible for the vehicle.

23. DRIVERS LICENCES

CWU officials/ office bearers and members who may for any reason drive:

· CWU vehicles or

· Vehicles rented by the union must supply the national accounts department with their drivers licences where it will be filed for referral or verification at any time.

An official owning a CWU vehicle who allows someone without a licence to drive, shall be held responsible for any damages incurred.