Group - NBCRFI Framework · Management Services Quadrant House 115 Margaret Mncadi Avenue Durban...

Management Services

Quadrant House 115 Margaret Mncadi Avenue Durban 4001

PO Box 1 Durban 4000 South Africa

Tel: +27 (0)31 304 1451 Fax: +27 (0)31 305 2848 Web: www.grindrod.co.za

Group - NBCRFI Framework

http://www.grindrod.co.za/

NBCRFI – CONTROL FRAMEWORKS

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Confidential Grindrod Internal Audit

1. Flowcharts ................................................... 2

2. Process Narratives..................................... 14

3. Control Objectives ..................................... 23

4. Control framework .................................... 24


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1. Flowcharts

1.1. Additions of new employees on the Payroll system

1.2. Terminations of employees on the Payroll system

Prevent control Detect control

P D

Authority to Appoint forms together with Contracts and supporting documents are

forwarded to Payroll for processing. Authority to Appointment forms and

contracts are approved in accordance with the

Authority Matrix.

Payroll administrators process the new

appointments on the payroll system.

Contracts captured on the payroll system are reviewed for accuracy

of information captured by an independent

person.

A report of new appointments is

extracted from the payroll system and

reviewed by the relevant line manager.

End of employment contract/termination forms

are completed and signed by employee and relevant Line Manager and forwarded to

Payroll for processing together with supporting

documents.

Payroll administrators process the terminations on

the payroll system. No further provisions made to

NBCRFI

Terminations captured on the payroll system are

reviewed by for accuracy by an independent person.

A report of new appointments is

extracted from the payroll system and

reviewed by the relevant line manager.

D

D

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1.3. Payments to NBCRFI:

1.3.1. GMS – Tank Terminals

Request for payments to NBCRFI and SANLAM are prepared by Payroll Administrator. RFPs are reviewed against NBC Online Return and SANLAM D-Form Report and authorised by Payroll Specialist.

Payroll Administrator extracts a pre-numbered D Form report from SAP

reflecting amounts to be paid to NBC in respect of provisions per employee. (Leave pay, sick pay, bonus pay, admin levy, agency shop, SATAWU, TAWUAS and

wellness fees)

Payroll Administrator prepares GL Costing detailing the provisions. The GL Costing is reviewed by the Payroll Specialist.

On line NBCRFI Return is completed by the Payroll Administrator based on information on the D-Form Report per employee. A Three way review is performed between the GL Costing, D Form Report and Online Return by the Payroll Specialist for accuracy. Anomalies are identified and investigated.

Monthly reconciliation of amounts paid to NBC and SANLAM is prepared by Payroll Administrator and reviewed by the Payroll Specialist.

Payments are then loaded on the banking system by the Payroll Administrator / Finance Clerk on Standard Bank Business Online (CATS).

Payments are then released by two authorised signatories as per the banking profiles.

GMS makes monthly provisional payments to NBCRFI on behalf of

Tank Terminals employees belonging to NBCRFI. The

provisions include: Leave pay, sick pay, bonus pay, admin levy, agency

shop, SATAWU, TAWUSA and wellness fees. In respect of provident fund payments,

payments are made to Sanlam. Payroll Administrator extracts a pre-

numbered D Form report from SAP reflecting provident fund amounts payable per employee to SANLAM.

Prior payment release, an independent review of payments loaded on the banking system is agreed to the payment amounts on the Sanlam D-Form Report and Online NBC Return/D-Form Report to ensure that the correct amounts have been loaded.

NBCRFI payments (bonus pay, admin levy, agency shop

and wellness fees,etc)

SANLAM payments (provident fund)

Monthly bank recon is prepared by Payroll Specialist and reviewed by the Payroll Manager.

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1.3.2. Intermodal (Dry Bulk)

Request for payments to NBCRFI and SANLAM are prepared by Payroll Administrator. RFPs are reviewed against NBC Online Return and SANLAM D-Form Report and authorised by Payroll Manager.

Payroll Administrator extracts a pre-numbered D Form report from

Accpac reflecting amounts to be paid to NBC in respect of provisions per employee. (bonus pay, annual

leave, sick leave, admin levy, agency shop and wellness fees,

SATAWU, TAWUSA)

Payroll Administrator prepares GL Costing detailing the provisions. The GL Costing is reviewed by the Payroll Manager.

On line NBCRFI Return is completed by the Payroll Administrator based on information on the D-Form Report per employee. A Three way review is performed between the GL Costing, D Form Report and Online Return by the Payroll Manager for accuracy. Anomalies are identified and investigated.

Monthly reconciliation of amounts paid to NBC and SANLAM is prepared by Payroll Administrator and reviewed by the Payroll Manager.



Intermodal makes monthly provisional payments to NBCRFI on behalf of employees belonging to NBCRFI. The provisions include:

bonus pay, annual leave, sick leave, admin levy, agency shop and

wellness fees, SATAWU, TAWUSA. In respect of provident fund

payments, payments are made to Sanlam.

Payroll Administrator extracts a pre-numbered D Form report from Accpac

reflecting provident fund amounts payable per employee to SANLAM.


NBCRFI payments (bonus pay, annual

leave, sick leave, admin levy, agency shop and wellness

fees, etc)


Monthly bank recon is prepared by Finance Clerk and reviewed by the Finance Manager.

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P

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1.3.3. Fuel Logic

Request for payments to NBCRFI and SANLAM are prepared by Payroll Administrator. RFPs are reviewed against NBC Online Return and SANLAM D-Form Report and authorised by Payroll Manager.

Payroll Administrator extracts a pre-numbered D Form report from

Pastel reflecting amounts to be paid to NBC in respect of provisions per

employee. (bonus pay, annual leave, sick leave, admin levy,

agency shop and wellness fees)

Payroll Administrator prepares GL Costing detailing the provisions. The GL Costing is reviewed by the Payroll Manager.

On line NBCRFI Return is completed by the Payroll Administrator based on information on the D-Form Report per employee. A Three way review is performed between the GL Costing, D Form Report and Online Return by the Payroll Manager for accuracy. Anomalies are identified and investigated.

Monthly reconciliation of amounts paid to NBC and SANLAM is prepared by Payroll Administrator and reviewed by the Payroll Manager.



Intermodal makes monthly provisional payments to NBCRFI on behalf of employees belonging to NBCRFI. The provisions include:

bonus pay, annual leave, sick leave, admin levy, agency shop and wellness fees. In respect of provident fund payments,

payments are made to Sanlam. Payroll Administrator extracts a pre-

numbered D Form report from Pastel reflecting provident fund amounts payable per employee to SANLAM.


NBCRFI payments (bonus pay, annual

leave, sick leave, admin levy, agency shop and wellness

fees)



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1.4. Leave processing:


Annual and sick leave taken during the year is

paid directly to employees by Tank Terminals.

At year end, The Payroll Administrator extracts a leave

report (annual/sick leave) from the system of NBC employees.

(report indicates all leave taken and paid to date).

The normal leave application process applies

when leave is taken (application filled out and approved by relevant line management as per the

authority matrix)

The NBC online return is completed by the Payroll

Administrator based on the information in the system leave

report.

Prior to submitting the NBC return, the return is agreed to the

leave report by the Payroll Specialist to ensure that the claim

amount is correct.

The return is then

submitted to NBC for

leave payment

recovery. (Refer to

1.6.2. – leave payment

recovery)

A reconciliation of the leave

paid/taken during the year and

the leave recovery payment

received from NBC is prepared

by the Payroll Administrator

and reviewed by the Payroll

Specialist. D

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1.4.2. Intermodal (Dry Bulk) & Fuel Logic:

Annual and sick leave taken during the year is

paid directly to employees by NBC.

The normal leave application process applies

when leave is taken (application filled out and approved by relevant line management as per the

authority matrix)

When employee’s takes leave (annual/sick), the approved leave application forms are

submitted to NBC by the Payroll Administrator. (sick notes must

be submitted to NBC for sick leave taken)

NBC then pays employees directly for leave taken.

The leave taken is then processed as “unpaid” against the relevant employees profile by the Payroll Administrator on

SAP.

A leave report is extracted from the system by the Payroll

Administrator and reviewed by the Payroll Supervisor to ensure

that all unpaid leave is accounted for.

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1.5. Interim Movements

1.5.1. Terminations during the year

TANK TERMINALS

Signed End of contract/termination form together with supporting

documents (resignation letters, dicsiplinary outcomes,

retrenchments) forwarded to Payroll to process.

Payroll processes terminations on SAP. Terminations are reviewed by the Payroll

Supervisor for accuracy of capturing on SAP.

Payroll Administrator then prepares a claim to NBCRFI for all leave days taken and paid to

employee up to point of termination. No further leave

payments are made to employees.

Payroll Administrator extracts a leave report from the system of all leave taken and paid out to the respective employee up to

the point of termination.

A review of the system leave report and the NBC Claim is

performed by the Payroll Specialist to ensure that the correct number of leave paid out to the employee is being

recorded on the NBC Claim for recovery.

The NBC Claim application is then forwarded to NBC for

recovery of leave paid out to employees.


NBC deposits payment in to GMS bank account. The bank

statement is then printed from the banking system and

reconciled to the NBC online return by the Payroll

Administrator (GMS) to ensure that the correct amount has

been received.

Tank Terminals bank account is then credited

with the payment by Payroll (GMS)


paid during the year to the

leave recovery payment




Specialist.



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INTERMODAL (DRY BULK) & FUEL LOGIC




Payroll processes terminations on the system. Terminations are reviewed by the Payroll Supervisor for accuracy of capturing on the system.

Should any leave payments be due to the terminated employee,

completed and approved leave application are forwarded to

NBC by the Payroll Administrator to pay employee

directly.

Payroll Administrator extracts a leave report from the system of

all leave taken and processed as “unpaid” in respect of the specific employee up to the

point of termination. The report is then reviewed by the

Payroll Supervisor to ensure accuracy and completeness.

Employee is paid directly by NBC

No further leave provisions are paid to

NBC.


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1.5.2. Death of employee

TANK TERMINALS




Payroll processes terminations on SAP. Terminations are reviewed by the Payroll

Supervisor for accuracy of capturing on SAP.

Payroll Administrator then prepares a claim to NBCRFI for all leave days taken and paid to employee up to point of death. No further leave payments are

made to employees by Terminals.

Payroll Administrator extracts a leave report from the system of all leave taken and paid out to the respective employee up to

the point of death.

A review of the system leave report and the NBC Claim is

performed by the Payroll Specialist to ensure that the correct number of leave paid out to the employee is being

recorded on the NBC Claim for recovery.

The NBC Claim application is then forwarded to NBC for

recovery of leave paid out to employees.


NBC deposits payment in to GMS bank account. The bank

statement is then printed from the banking system and

reconciled to the NBC online return by the Payroll

Administrator (GMS) to ensure that the correct amount has

been received.










Specialist.


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INTERMODAL (DRY BULK) & FUEL LOGIC




Payroll processes terminations on the system. Terminations are reviewed by the Payroll Supervisor for accuracy of capturing on the system.

Should any leave payments be due to the deceased employee, completed and approved leave applications are forwarded to

NBC by the Payroll Administrator to pay employee directly.

Payroll Administrator extracts a leave report from the system of

all leave taken and processed as “unpaid” in respect of the specific employee up to the point of death. The report is then reviewed by the Payroll

Supervisor to ensure accuracy and completeness.

No further leave provisions are paid to

NBC.

Beneficiaries of the deceased employee are

paid directly by NBC.


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1.5.3. EMPLOYEE TRANSFERS BENEFITS

TANK TERMINALS, INTERMODAL (DRY BULK), FUEL LOGIC

1

Every employee belonging to NBCRFI has a unique levy number identifying them to

the specific Business Unit where they are employed

at.

Two scenarios arise here

Employee transfered to another division within the Group

Employee joins new company

Payroll informs NBCRFI of the transfer and the provisional payments carry on as normal.

Payroll terminates employee and informs NBCRFI of the termination. The employee can be

linked to NBCRFI if the new company is also linked to NBCRFI or can be paid out by NBCRFI directly. No further provisions paid by GMS to

NBCRFI.

1

2


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1.5. Application for funds from NBCRFI

1.5.1. Bonuses: Tank Terminals, Intermodal (Dry Bulk), Fuel Logic

Recon 2: Year-end reconciliation prepared by the

Payroll Administrator between total provisions paid

during the year and the online NBCRFI return at year

end. Recon reviewed by Payroll Specialist.

Yes

No

Recon 1: Year-end reconciliation prepared by the Payroll Administrator between Wage Type Report

extracted from SAP + Year End Payments and NBCFRI Schedule and reviewed by Payroll Specialist.

At year end, Payroll Administrator completes NBCFRI online return at end of

October applying for funds to pay employee bonuses. Online Return is

reviewed by Payroll Specialist prior to return being submitted to NBCRFI.

If any queries on NBC Online Return, NBC will

follow up with Payroll and resolved.

If no queries on NBC Online Return

NBCRFI forwards online return together with a payout

schedule and remittance advice per employee to Payroll.

NBC deposits payment in to respective Business Units bank account. A review is performed between the NBC Online return

submitted by Payroll and the NBC Payout schedule to ensure that correct amount has been

received.

Payments made to employees by Payroll as per NBC Payout Schedule

for bonuses. Bonus pay outs are reflected on

employee salary slips in the month paid out.

NBCRFI reviews Online Return. Any queries identified.


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1.6.2. Leave payment recovery: Tank Terminals only

Yes

No

At year end, Payroll Administrator completes NBCFRI online return at end of

October for recovery of leave pay outs made to employees during the year. Online Return is reviewed by Payroll

Specialist prior to return being submitted to NBCRFI.

If any queries on NBC Online Return, NBC will

follow up with Payroll and resolved.

If no queries on NBC Online Return



NBC deposits payment in to GMS bank account. The bank statement is

then printed from the banking system and reconciled to the NBC

online return by the Payroll Administrator (GMS) to ensure that

the correct amount has been received.

Bank recon is prepared by Finance Clerk and reviewed by the Finance Manager

A leave report is extracted from the system

highlighting all leave taken and paid out to employees

during the year.

The NBC online return is completed by the

Administrator based on the information in the leave report extracted

from the system.

Prior to submitting the NBC return, the return is agreed

to the leave report by Payroll Specialist to ensure

that the claim is correct.

NBCRFI reviews Online Return. Any queries identified.

Bank recon is prepared by Payroll Specialist and reviewed by the Payroll Manager.







Specialist.


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2. Process Narratives

2.1. Background National Bargaining Council for the Road Freight Industry (NBCRFI) is a service centred organisation whose core function is to manage

conditions of employment between road freight and logistics industry in order to ensure labour stability within the industry. NBCRFI also

provides benefits to its members through managing their annual leave, sick leave and holiday bonus. Employees of Grindrod Logistics belong to

the NBCRFI and their annual leave, sick leave and holiday bonus are managed by NBCRFI.

Grindrod Management Services makes monthly provisional payments to NBCRFI on behalf of Tank Terminal employees in respect of sick leave,

annual leave and holiday bonus. Intermodal (Dry Bulk) and Fuel Logic makes their own provisional payments directly to NBCRFI.

2.2. Additions of new employees on the payroll system - (Handover from Payroll) Contracts are signed by Line Managers of Logistics in accordance with the Authority Matrix. The approved contracts, together with signed “Authority to Appointment Forms” and supporting documents are forwarded to Payroll for capturing on the system by the Payroll Administrator. Information captured on the system is then reviewed by an Independent Payroll Administrator (other than the Administrator who captured the specific contract) against the original contract information to ensure accuracy of information captured on SAP. A SAP printout of employees belonging to NBCFRI can be extracted for audit query purposes.

2.3. Terminations of employees on the payroll system – (Hand over from Payroll)

End of Contract/Termination forms is completed and signed by the employee and relevant Line Manager and forwarded to Payroll with supporting documents (resignation letters, death certificates, disciplinary outcomes) for processing and capturing on the system by the Payroll Administrators. Terminations captured on the system is then reviewed by an Independent Payroll Administrator (other than the Administrator who captured the specific termination) to ensure accuracy of information captured on the system. A system printout of employees belonging to NBCRFI who has been terminated can be extracted for audit query purposes.


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2.4. Payments to NBCRFI & SANLAM:


GMS makes monthly provisional payments on behalf of Tank Terminals employees belonging to NBCFRI to NBCRFI and Sanlam. All NBCRFI

employees are entitled to 15 days annual leave and 12 days sick leave per annum.

The provisional payments include:

NBCRFI

Bonuses

Leave pay

Sick pay

OTHER PAYMENTS

Admin fees

Agency shop fess

Wellness fees

Union fees (SATAWU & TAWUSA)

SANLAM

Provident fund

On a monthly basis, the Payroll Administrator responsible for the administration of the NBCFRI Account, extracts a SAP pre-numbered “D-Form

Report” reflecting amounts to be paid over to NBCRFI in respect of the provisions and prepares a “GL Costing” based on the D Form Report.

The GL Costing and the D-Form Report is then reviewed and signed by the Payroll Specialist. With regards to the provident fund payments to

Sanlam, the D-Form report is extracted from SANLAM’s system and the payroll system and reconciled by the Payroll Administrator to ensure

that the payment amounts are correct.

An “Online NBCFRI Return” detailing the provisions per employee is then completed by the Payroll Administrator based on the information of

the D Form Report. A three way match between the GL Costing, SAP D-Form Report and Online NBCRFI Return is then performed by the Payroll


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Specialist to ensure accuracy. Any anomalies identified are investigated. A request for payment (RFP) is then prepared by the Payroll

Administrator for NBCRFI and SANLAM payments and signed off by the Payroll Specialist as evidence of review prior to processing.

The payment is then loaded onto the online banking system by the Payroll Administrator/Finance Clerk and released by any two of the four

authorised signatories as per the banking profiles. Prior to releasing the payment, a review is performed of the payments loaded on the banking

system to the RFP and D-Form reports to ensure that the correct payment amounts have been loaded on the banking system. A monthly

reconciliation of amounts paid to NBCRFI and SANLAM is prepared by the Payroll Administrator and reviewed by the Payroll Specialist.

A monthly bank recon is prepared by the Payroll Specialist and reviewed by the Payroll Manager.


Intermodal and Fuel Logic makes monthly provisions to NBCRFI on behalf of employees belonging to NBCRFI (50% employee contribution and

50% employer contribution).

The provisional payments include:

NBCRFI

Bonuses

Annual and sick leave

Admin levies

Agency shop fees

Wellness fees

Union fees (SATAWU & TAWUSA)

SANLAM

Provident fund

On a monthly basis, the Payroll Administrator responsible for the administration of the NBCFRI Account, extracts a SAP pre-numbered “D-Form

Report” reflecting amounts to be paid over to NBCRFI in respect of the provisions and prepares a “GL Costing” based on the D Form Report.

The GL Costing and the D-Form Report is then reviewed and signed by the Payroll Specialist. With regards to the provident fund payments to


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Sanlam, the D-Form report is extracted from SANLAM’s system and the payroll system and reconciled by the Payroll Administrator to ensure

that the payment amounts are correct.

An “Online NBCFRI Return” detailing the provisions per employee is then completed by the Payroll Administrator based on the information of

the D Form Report. A three way match between the GL Costing, SAP D-Form Report and Online NBCRFI Return is then performed by the Payroll

Specialist to ensure accuracy. Any anomalies identified are investigated. A request for payment (RFP) is then prepared by the Payroll

Administrator for NBCRFI and SANLAM payments and signed off by the Payroll Specialist as evidence of review prior to processing.

The payment is then loaded onto the online banking system by the Payroll Administrator/Finance Clerk and released by any two of the four

authorised signatories as per the banking profiles. Prior to releasing the payment, a review is performed of the payments loaded on the banking

system to the RFP and D-Form reports to ensure that the correct payment amounts have been loaded on the banking system. A monthly

reconciliation of amounts paid to NBCRFI and SANLAM is prepared by the Payroll Administrator and reviewed by the Payroll Specialist.

A monthly bank recon is prepared by the Finance Clerk and reviewed by the Finance Manager.

2.5. Leave processing:

2.5.1. GMS – Tank Terminals:

Annual and sick leave taken during the year is paid directly to employees by GMS on behalf of Tank Terminals and recovered from NBCRFI at

year end. The normal leave application process applies when leave is taken (leave applications are filled out and approved by the relevant line

manager as per the authority matrix).

At year end, the Payroll Administrator extracts a leave report (annual/sick leave) from the system of NBCRFI employees (report indicates all

leave taken and paid to date). The NBCRFI online return is completed by the Payroll Administrator based on the information in the system leave

report. Prior to submitting the NBCRFI, the return is agreed to the leave report by the Payroll Specialist to ensure that the claim amount is

correct. The return is then submitted to NBC for the leave payment recovery (refer to the leave payment recovery process narratives).

A reconciliation of the leave paid/taken during the year and the leave recovery payment received from NBC is prepared by the Payroll

Administrator and reviewed by the Payroll Specialist.


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Annual and sick leave taken during the year is paid directly to employees by NBC. The normal leave application process applies when leave is

taken (leave applications are filled out and approved by the relevant line manager as per the authority matrix). When employees takes leave

(annual/sick leave), the approved leave application forms are submitted to NBC by the Payroll Administrator (all sick leave must be supported

by sick notes). A leave report is extracted from the system by the Payroll Administrator and reviewed by the Payroll Specialist to ensure that all

unpaid leave is accounted for.

2.6. Interim movements During the year, employees may be terminated by Payroll as a result of resignations, disciplinary outcomes or death. These movements are

dealt with as follows:

1. Terminations during the year

GMS – Tank Terminals:

An end of employment/termination form is completed and signed by the relevant line manager as per the authority matrix and forwarded to

payroll together with supporting documents (resignation letter, disciplinary outcome) for processing. Payroll processes terminations on the

payroll system. Terminations are reviewed by the Payroll Supervisor for accuracy of capturing on the system.

The Payroll Administrator extracts a leave report from the system of al leave taken and paid out to the respective employee up to the point of

termination. The Payroll Administrator then prepares a claim to NBCRFI for all leave days taken and paid to the employee up to the point of

termination. No further leave payments are made to the employee. A review of the system leave report and the NBC Claim is performed by the

Payroll Specialist to ensure that the correct number of leave paid out to the employee is being recorded on the NBC Claim for recovery.

The NBC Claim application is then forwarded to NBC for recovery of leave paid out to employees.

NBC deposits payment into GMS bank account. The bank statement is then printed from the banking system and reconciled to the NBC Online

Claim return by the Payroll Administrator (GMS) to ensure that the correct amount has been received. Tank Terminals bank account is then

credited with the payment by Payroll (GMS).


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Intermodal (Dry Bulk) & Fuel Logic:




The Payroll Administrator extracts a leave report from the system of al leave taken and processed as “unpaid” up to the point of termination in

respect of the specific employee. The report is reviewed by the Payroll Supervisor to ensure accuracy and completeness. Should any leave

payments be due to the terminated employee, completed and approved leave forms are forwarded to NBC by the Payroll Administrator to pay

employee directly. No further leave provisions are paid to NBC.

2. Death of employee during the year

GMS – Tank Terminals:




The Payroll Administrator extracts a leave report from the system of al leave taken and paid out to the respective employee up to the point of

termination. The Payroll Administrator then prepares a claim to NBCRFI for all leave days taken and paid to the employee up to the point of

termination. No further leave payments are made to the employee. A review of the system leave report and the NBC Claim is performed by the

Payroll Specialist to ensure that the correct number of leave paid out to the employee is being recorded on the NBC Claim for recovery.

The NBC Claim application is then forwarded to NBC for recovery of leave paid out to employees.

NBC deposits payment into GMS bank account. The bank statement is then printed from the banking system and reconciled to the NBC Online

Claim return by the Payroll Administrator (GMS) to ensure that the correct amount has been received. Tank Terminals bank account is then

credited with the payment by Payroll (GMS).


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Intermodal (Dry Bulk) & Fuel Logic:




The Payroll Administrator extracts a leave report from the system of al leave taken and processed as “unpaid” up to the point of termination in

respect of the specific employee. The report is reviewed by the Payroll Supervisor to ensure accuracy and completeness. Should any leave

payments be due to the terminated employee, completed and approved leave forms are forwarded to NBC by the Payroll Administrator to pay

employee directly. No further leave provisions are paid to NBC.

3. Employee transfers benefits

GMS – Tank Terminals, Intermodal (Dry Bulk) & Fuel Logic:

Every employee belonging to NBCRFI has a Levy number used to uniquely identify a specific employee. Two scenarios arise here :

● If the employee is transferred to another division within the Group, Payroll informs NBCFRI of the transfer and the transfer has no impact on

the flow of the NBCRFI process involved. Provisional payments carries on as normal.

● If employee exits the business (resigns, terminates), and joins another company that belongs to the NBCRFI, the employee is then transferred

to the new company. The employee will be terminated as normal as in one above and no further provisions are made to NBCRFI in respect of

the terminated employee.

2.7. Application for funds from NBCRFI

2.7.1. Bonus application:

GMS – Tank Terminals, Intermodal (Dry Bulk) & Fuel Logic:

At year end, 31 October, being the Financial Year End for NBCRFI, Payroll applies for funds to pay employees in respect of the provisions paid

during the course of the year.


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Payroll Administrator prepares an NBCRFI Online Return Application applying for funds to pay employee bonuses. The Online Return is then

reviewed by the Payroll Specialist prior to the application being submitted to NBCRFI.

NBCRFI reviews the Online Return and forwards the Online Return together with a detailed Payout Schedule and attached remittance advices

per employee on the Online Return to Payroll. Amounts as per the Online Return is deposited into the respective BUs bank account.

A review is performed between the NBC online return submitted by Payroll and the NBC Pay out schedule to ensure that the correct amounts

has been received.

Payroll makes payments to employees in December based on the Payout Schedule received from NBCRFI. Payout amounts are reflected on

December employee salary slips.

The following reconciliations are prepared by the Payroll Administrator at year end :

Recon 1: reconciliation is performed as follows by the Payroll Administrator and reviewed by the Payroll Specialist : Wage Type Report

extracted from SAP plus manual payments made to employees is reconciled to the NBCRFI Online Return Application.

Note : Should the year end reconciliation between the SAP Wage Type Report plus the manual payments made to employees and the NBCRFI

Online Return not agree, the difference will equal to the interim movements which may have occurred during the year. These items will be

reconciled on the reconciliation.

Recon 2: reconciliation between total provisions made during the year and the year-end online NBCRFI return.

2.7.2. Leave payment recovery application:

GMS – Tank Terminals only:

At year end, the Payroll Administrator completes the NBCRFI online return at the end of October for recovery of leave pay outs made to

employees during the year. Online return is reviewed by the Payroll Specialist prior to the return being submitted to NBCRFI.

A leave report is extracted from the system highlighting all leave taken and paid out to employees during the year. The NBC online return is

completed by the Payroll Administrator based on the information in the leave report extracted from the system. Prior to submitting the NBC

return, the return is agreed to the leave report by the Payroll Specialist to ensure that the claim is correct. The return is then submitted to NBC.


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NBC deposits payment in to GMS bank account. The bank statement is then printed from the banking system and reconciled to the NBC online

return by the Payroll Administrator (GMS) to ensure that the correct amount has been received. GMS then credits Tank Terminals with the

payment received.

A reconciliation of the leave paid during the year to the leave recovery payment received from NBC is prepared by the Payroll Administrator

and reviewed by the Payroll Specialist.


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3. Control Objectives

1. Only valid contracts are processed and captured on the system.

2. Only valid terminations are processed and captured on the system.

3. Valid and correct amounts are paid to NBCRFI/SANLAM and accounted for accurately.

4. Valid and correct amounts are paid to employees belonging to NBCRFI at year end and accounted for.

5. All unpaid leave of employees belonging to NBCRFI is correctly processed and accounted for.

6. All paid leave of employees belonging to NBCRFI is correctly processed and accounted for.

7. All leave paid out to employees belonging to NBCRFI during the year is recovered from NBCRFI.


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4. Control framework

1. Only valid contracts are processed and captured on the system.

Key Controls Process Owner Control Owner Frequency Evidence GMS-Tank Terminals

Intermodal Fuel Logic

1.1 An Authority to appoint Form is prepared by Talent and forwarded to the respective relevant Line Managers for approval as per the Approved Authority Matrix. Contracts of employment is produced and signed in accordance with the Approved Authority Matrix and forwarded to Payroll with supporting documents for processing on the payroll system.

Payroll Manager Payroll Supervisor

Per Contract Signed Authority to Appoint Forms Contracts with supporting documents Approved Authority Matrix.

1.2 An independent review is performed of contracts captured on the system to ensure accuracy of information processed.


Per contract

Signed new appointments report

2. Only valid terminations are processed and captured on the system.



2.1 An End of Employment Contract / Termination form is completed and signed by the employee and relevant Line Manager. End of Employment Contract forms together with supporting documents are forwarded to Payroll for processing on payroll system.


Per Contract Signed End of Employment Contract/Termination Forms Supporting documents( resignation letters, etc)

2.2 An independent review is performed by the Payroll Supervisor of terminations captured on the system to ensure accuracy of information processed. No further payments are processed in respect of terminated employees.


Per

termination

Signed SAP terminations report

2.3 The termination date is captured by the Payroll Administrator based on the details per the authorised end of contract employee form.

Payroll Manager Payroll Administrator

Ongoing Signed End of Employment Contract/Termination Forms


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3. Valid and correct amounts are paid to NBCRFI/SANLAM and accounted for accurately.



NBC Provisions: 3.1 A pre-numbered D-Form report is extracted

from the payroll system detailing the provisions (bonus pay, admin levy, agency shop and wellness fees). A detailed GL Costing is prepared by the Payroll Administrator based on the D-Form report and an online NBCRFI return is completed. A reconciliation of the D-Form report, GL Costing and the online NBC return is prepared by Payroll administrator and reviewed by Payroll specialist.


Monthly Signed reconciliation with supporting documents

NBC Provisions: 3.2 A pre-numbered D-Form report is extracted

from the payroll system detailing provisions (sick leave, annual leave, bonus pay, admin levy, agency shop and wellness fees). A detailed GL Costing is prepared by the Payroll Administrator based on the D-Form report and an online NBCRFI return is completed. A reconciliation of the D-Form report, GL Costing and the online NBC return is prepared by Payroll administrator and reviewed by Payroll specialist.


Monthly Signed reconciliation with supporting documents

SANLAM Provident fund provision: 3.3 A reconciliation of the Sanlam D-Form report

and the online NBC return is prepared by Payroll administrator and reviewed by Payroll specialist

Payroll Manager Finance Clerk Monthly

Signed reconciliation with supporting documents.

NBC/SANLAM Payments: 3.4 A request for payment (RFP) is prepared by the

Payroll Administrator, signed off by the Payroll Specialist and forwarded to Finance to process payment.


Monthly

Signed RFP with supporting documents


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Payment release: NBC/SANLAM 3.5 RFP is uploaded onto the banking system by the

Payroll Administrator/Finance Clerk and is released by two authorised signatories as per the LOA’s.

Payroll Manager Finance Clerk Monthly

Signed RFP Signed business online audit report LOA’s

Bank recon: 3.6. The bank reconciliation is prepared by the Payroll Administrator and reviewed by the Payroll Manager.


Monthly

Signed and dated bank recon

Bank recon: 3.6. The bank reconciliation is prepared by the Finance Clerk and reviewed by the Finance Manager.

Finance Manager Finance Clerk Monthly

Signed and dated bank recon


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4. Valid and correct amounts are paid to employees belonging to NBCRFI at year end and accounted for.



Bonus application: 4.1 An Online NBCFRI Return Application is

completed by the Payroll Administrator for the bonus application and reviewed by the Payroll Specialist prior to being submitted to NBCRFI.


Annually Signed Online NBCRFI Return Application

Pre Bonus pay-outs: 4.2 Payments loaded on the banking system by the

Payroll Administrator/Finance Clerk are reviewed by Payroll Manager for evidence of accuracy prior to release f the payments. (Hand over to Payroll)


Annually

Authorised NBCRFI Payout Schedule Signed provisional online payment release report Dummy employee payslips

Post bonus pay-outs: 4.3 Pay-outs are released on the banking system by

authorised signatories as per the authority matrix. (Hand over to Payroll)

Payroll Manager Payroll Manager Annually Banking profiles Signed business online audit report.

4.4 Year-end reconciliation is prepared by the Payroll Administrator of amounts received from NBCRFI and paid to employees. The recon is reviewed by the Payroll Specialist.


Annually

Signed reconciliation with supporting documents ( Wage type report, manual payments, NBCRFI Payout Schedule)

4.5 Year-end reconciliation between total provisions made during the year to NBC and the online NBCRFI return is prepared by the Payroll administrator and reviewed by the Payroll specialist.


Annually

Signed reconciliation with supporting documents


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5. All unpaid leave of employees belonging to NBCRFI is correctly processed and accounted for.

Key Controls Process Owner Control Owner

Frequency Evidence GMS-Tank Terminals


Leave form approval: 5.1 All leave forms of employees belonging to

NBCRFI are approved by the respective line managers as per the approved authority matrix and submitted to Payroll for processing 7 days prior to employees going on leave.


Per leave

application

Authorised leave application Approved authority matrix

Sick leave: 5.2 All sick leave forms submitted to NBC are

supported by a medical certificate.


Per leave

application

Authorised sick leave application Supporting medical certificate

Unpaid leave processing: 5.3 Leave applications of NBCRFI employees are

processed as unpaid on the system by Payroll. Payroll deducts amounts as per number of days on the leave forms from the employee’s salary .Deductions captured on SAP are reviewed by independent administrators.

Payroll Manager Payroll Administrators

Ongoing Authorised leave application Signed dummy employee payslips

System leave report: 5.4 A leave report is extracted from the system and

reviewed by the Payroll Supervisor to ensure that all unpaid leave is accounted for.

Payroll Supervisor Payroll Supervisor

Monthly Signed leave report

Manual leave form file: 5.5 A manual file of leave forms of all NBCRFI

employees is maintained by the Payroll administrator. All leave forms are future dated.


Ongoing Manual file of leave application forms future dated.


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6. All paid leave of employees belonging to NBCRFI is correctly processed and accounted for.




Leave form approval: 6.1 All leave forms of employees belonging to

NBCRFI are approved by the respective line managers as per the approved authority matrix and submitted to Payroll for processing 7 days prior to employees going on leave.


Per leave

application

Authorised leave application Approved authority matrix

System leave report: 6.2 A leave report is extracted from the system and

reviewed by the Payroll Supervisor to ensure that all paid leave is accounted for.




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7. All leave paid out to employees belonging to NBCRFI during the year is recovered from NBCRFI.




System Leave report: 7.1 A leave report is extracted from the system and

reviewed by the Payroll Supervisor to ensure that all paid leave is accounted for.



NBCRFI Online claim return: 7.2 The NBC Online leave claim return is reconciled

to the system leave report by the Payroll Specialist to ensure that the leave claim days are correct.


Annual Signed leave report Signed NBC leave claim return

Receipts: 7.3 The bank statement is printed off the banking

system and reconciled to the NBC Online leave claim return by the Payroll Administrator to ensure that the correct leave payment amount has been recovered.


Annual Signed bank statements Signed NBCRFI online leave claim return

Recon: 7.4 A recon of the leave paid to employees during

the year and the NBCRFI leave claim return is prepared by the Payroll Administrator and reviewed by the Payroll Specialist.

Payroll Specialist Payroll Administrator

Annual Signed recon with supporting documents

Tank Terminals credit: 7.5 Leave payments received from NBCRFI is paid over to Tank Terminals by GMS.


Annual Signed bank statements with supporting NBCRFI leave payment proof

Group - NBCRFI Framework · Management Services Quadrant House 115 Margaret Mncadi Avenue Durban...

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