Security Organizing System Pakistan (Pvt.

) Ltd
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Name Signature

Mr. Amir Raza

Initiated By

Mr. Faisal Zia

Miss Nishat Fatima

Miss Fizza Imran

Team
Members
Miss Quratul Ain

Mr. Mujahid Hussain

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Finance Department Process Flow

HR Identification ................................................................................................... 3
Inflows & Out Flows ............................................................................................... 4
Types of Inflows ............................................................................................... 4
Types of Outflows ............................................................................................ 4
Inflow Processes ................................................................................................. 5
Out Flow Process ................................................................................................ 7
1. Identification of Financial Needs................................................................... 8
2. Financial arrangements / Maintenance of reserves for unforeseen needs ... 8
3. Disbursements .............................................................................................. 8
4. Reconciliation ............................................................................................. 11
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HR Identification

Reconciliation Officers (1 HR)

Head of Finance Disbursement Officers (2 HR)

Runners (2 HR)
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Finance Department Process Flow

Inflows & Out Flows

Types of Inflows
1. Trade receivables
2. Assets Disposals
3. Other receivables including (Security deposits, earnest money, insurance, investment income)
4. Short term borrowings

Types of Outflows
1. Capital expenditure (Purchase of fixed assets, investments)
2. Revenue Expenditures including Salary expenses, insurance expense etc.

Sources of Inflows for Finance Department and their Process:

➢ Trade receivables are already discussed in detail under the Head of Accounts (Receivables)
➢ Specifically, for Fixed Assets disposal inflow, amount will be deposited either via cheque/ cash or
bank transfer;
➢ For scrap, either we will make the adjustments against the cost of purchased item or we will
deposit the amount after selling the scarps; either through centralized or decentralized scarp sale
mechanism (as per defined SOP’s)
➢ Finance Department will take up other in-flows collection initiative with the coordination of
Commercial, Administration Department and Insurance Department. (earnest money,
insurances, security deposit, bank guaranties)
➢ Investment Income (Short term, long term)
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Inflow Processes
Inflow- Trade Receivables (Process Flow)

Time line Activity Department Responsibility

Daily Reconciliation of all trade C&C department under Head of Accounts
receivables and forward the the umbrella of
confirmation to the Finance Accounts Department
Department
Daily Verification and reconciliation of all Finance Department Reconciliation Officer
trade receivables
Daily Consolidated Funds Status report Finance Department Head of Finance
will be submitted to the CFO

In flow – Fixed Assets Disposal (Process Flow)

Time line Activity Department Responsibility

On Asset disposal Disposal Committee Committee Head
Occurrence
Same day of Revenue registration and Accounts department Head of Accounts
disposal reporting to Finance
Department
Same day of Reconciliation and reporting to Finance Department Reconciliation officer
reporting CFO

In flow - Scrap Disposal (Process Flow)

Time line Activity Department Responsibility

10th and 20th of Scrap disposal Supply Chain Head of supply Chain
every month
Same day of Revenue registration and Accounts department Head of Accounts
disposal reporting to Finance
Department
Same day of Reconciliation and reporting to Finance Department Reconciliation officer
reporting CFO

In flow- Investment Income (Process Flow)

Time line Activity Department Responsibility

As per Return on Investment Finance Department Head of Finance
contractual
terms
Within 2 days Reconciliation and reporting to Finance Department Head of Finance
of receipt CFO
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In flow- Other Receivables (Earnest Money/ Insurance/ Security Deposit)

Time line Activity Department Responsibility

On Respective Departments will Commercial Respective Heads
Occurrence intimate for collection Department/ Risk
Department/ Accounts
Department
As per the Collection Respective Respective Heads
terms Departments
Same day of Funds Deposit Respective Respective Heads
Collection Department
Same day Verification of the funds Accounts Department Head of Accounts
received
Within 24 Funds reconciliation and report Finance Department Head of Finance
hours to CFO
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Out Flow Process

1. Identification of Financial Needs
2. Financial arrangements / Maintenance of reserves for unforeseen needs
3. Disbursements
4. Funds Reconciliation & Reporting

Identification
of Financial
Needs

Financial
Arrangements
Reporting /
Maintaianance
of reserves

Funds
Disbursements
Reconciliation
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1. Identification of Financial Needs

Task Task Responsible Role or Dedicated HR

Variability Position
27th of every Regions and Departmental Heads will make Respective RM’s/ GM’s and
month sure submission of their required fixed and Segment Heads /
other budgets to the Accounts Department. Departmental Heads
28th of every Submission of budget requirements to Head of Accounts Respective Departmental
month Finance Department for upcoming month Heads / Segment Heads
29th & 30th Finance Department will submit the Final Finance Department Head of Finance
of every budget to the Financial Planning Committee.
month

2. Financial arrangements / Maintenance of reserves for unforeseen needs

If financial needs are not met from available funds then planning to recover deficit fund needs to be the
utmost priority of Finance Department via company reserves retained/fund management.

3. Disbursements

Sr. No Types of Payables Deadlines Remarks

1.1 Insurance
i. CIT/ATMR/CPC cash By 20th of every month It will be paid in 12 monthly
Installments. The first
installment will be paid on 1st
of January.
ii. CIT Vehicles or Staff Vehicles For New Vehicles
• At the time of endorsement of the policy
(Tax amount) Vehicles insurance payment
• Next Installment will be in 40 days will be done in two phases.
For Existing vehicles,
• It will be settled in 6 months.
iii. Assets Insurance By 20th of that month Assets insurance settlement
will be made within 3
months.
iv. Management Health By 20th of that month Settlement will be made
Insurance within 6 months.
v. Workforce Accidental By 20th of that month Settlement will be made
Insurance within 6 months.
vi. Business Interruption By 20th of that month Settlement will be made
within 6 months.

Note: Risk Department will ensure that all types of insurance policies will be renewed by 20th Dec
every year.
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Sr. No Types of Payables Deadlines for Payments Remarks

Vehicle Payment Plans
1.2 Equity (Down Payments ) On occurrence Payment will be made on the
• Fabrication Bank demand
• Vehicle
1.3 Token 15 days before due date Settlement will be made
annually in a one go.
1.4 Tracker On the 22nd of every month Settlement will be made in 3
equal installments.
1.5 Vehicle Registration On Occurrence
1.6 Leases Rentals As per schedule

Sr. No Types of Payables Deadlines Remarks

2. Payment Plans
2.1 Fueling for Vans Finance Department will
1. Advance cash / cash Within an hour after the request approve the request on
2. Fueling Card top up By every Wednesday urgent basis for the advance
cash fueling.
2.2 Maintenance Department
payments
1. Routine 25th of the month
2. Incidental On occurrence
3. Periodic Within 30 days of purchase

Sr. No Types of Payables Deadlines Remarks

3. Payment Plans
3.1 Air Cargo & 16th and last working day of the month. Central control Twice in a month
Air Shipments room will be paid in advance.

Guest House & 50% amount will be paid within 10 days of submission
3.2 Rent-a-Car of bill and remaining 50% within 30 days of first
payment.
3.3 Staff Travelling 50 % Advance payment of estimated cost will be done It will be discussed again as
before the departure. its policy matter.
Within 3 working days
3.4 Welfare
Utilities 2 working days before due date All utilities will be paid
(electricity) through internet banking
(gas) centrally at Head Office Level.
(telephone) Regions will not be paid
(WASA) utility funds.
(Internet)
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Sr. No Types of Payables Deadlines Remarks

4. Payment Plans
4.1 Food Expense/Entertainment On 1st of the every month
/Misc./petty expenses
4.2 Fee and Subscription 2 days before due date
4.3 Services Workshop Weapon 2nd of every month
repair & spare
4.4 Office Repair & Maintenance Within 7 working days

Sr. No Types of Payables Deadlines Remarks

5. Payment Plans
5.1 Regional budgets (Admin+ First disbursement will be on 26th of every month 50% budget of the following month
domestic) Second will be on 5th of the next month will be paid on 26th of every month
and the remaining amount will be
disbursed after verification of the
utilization.
Regional offices and Guard 10th of every month It will be paid centrally.
Residence Rents
5.2 Uniforms/ Liveries Weapons As per agreed terms with vendor
& Ammunition
New Deployment On occurrence
5.3 Earnest Money/
Intercompany loan / Fixed On occurrence
Assets

Sr. No Types of Payables Deadlines Remarks

6. Payment Plans
6.1 Guard’s Salaries Between 3rd till 7th of the following month It will be paid project wise

6.2 Crew Staff Salaries 29th & 30th of the month It will be paid region-wise
6.3 CPC 29th & 30th of the month
6.4 Management’s salaries Between 6th to 12th of the month Salaries of management will
ATMR Salaries be paid in 4 phases.
1. Support Staff
2. Lower
Management
3. Higher
Management
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4. Reconciliation

1. On the weekly basis, reconciliation officer will perform the activity;

2. Head of Finance will present Reporting to CFO;
3. Audit Department will conduct audit on fortnightly basis;
4. Incase of any difference or discrepancy noted during reconciliation, matter needs to be reported
to the higher management with CC to Audit Department.

Reconciliation

Reporting to
Rectification
CFO

Audit Activity
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