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Prepaid Expenses Policy
Name of Policy
Prepaid Expenses Policy
Policy Number
IV.A-3
Owners
Financial Affairs
Original Policy Date
28/11/2013
Cosigners
_______________________
Last Revised Date
_______________________
Other Related Regulatory Rules Laws & Policies Next Scheduled review Date
_______________________
Associated Procedures & Forms (Attachments)
_______________________
Versioning
_______________________
Cycle of Reviews
_______________________

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.