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Policy & Procedure
Policy Title :
Prepaid Expenses Policy
Policy Number :
IV.A-3
Responsible Party :
Financial Affairs
Effective Date :
28/11/2013
Revised Date :
_______________________

Purpose

To ensure that all prepaid expenses are recognized and recorded for the month and correctly charged to each cost center.

Statement :
  • Check and analyze all the prepaid expenses every month.
  • Check the period covered to assess whether the prepaid expenses should be amortized or recognized.
  • Prepare a working paper which is reconciled to the general ledger to identify monthly expenses, total amortization or expenses recognized to date and the remaining balance of the prepaid expenses.
  • Prepare and record the corresponding journal entries into the financial system to the correct cost center.
  • Journal Voucher is subject to approval by the Director of Financial Affairs.